Spain’s Secretary of Trade, Xiana Margarida Méndez Bértolo spent two days in the Dominican Republic meeting with government ministers to address ways to increase cooperation, investment and trade between the two countries. She highlighted that the trade deficit is compensated by remittances of Dominicans living in Spain and the thousands of Spaniards that vacation in the DR.
Overall, Méndez said that “there are qualitative factors that lead to a positive interpretation of the Dominican Republic numbers in this commercial relationship.” She estimated the Dominican Republic’s current account surplus at US$800 million, which is very favorable for the country.
In an interview with El Caribe, Méndez said that while Dominican imports from Spain far exceed exports, remittances and tourism receipts compensate the deficit. She mentioned Spanish remittances in 2020 were US$722 million and around 200,000 Spaniards vacationed in the country, spending a similar amount. For the 2016-2019 period, trade exchange between the DR and Spain was US$2.98 million, with an average growth rate of 4.3%. Of the total, US$393.6 million were Dominican exports to Spain.
Méndez acknowledges the difficulties in exporting to such a competitive market as is Spain, despite the advantages in the European Economic Partnership Agreement (EPA). The agreement allows for 98% of Dominican exports to enter tax free to Spain.
Méndez mentioned that investment is needed on behalf of the local industry to make products more competitive and reforms in administrative matters to manage the flow of products and services, from the bureaucratic, administrative and sanitary controls points of view.
“This is complex. It is so for a large company, even more so for a small company that has never exported. In other words, it requires an active presence of the public sector and therefore, I think that is something we all have to work on,” she said.
The real unfinished business, which is a view shared by Spain, is that “we have to be more active in allowing small and medium-sized companies to take greater advantage of the agreement,” she stressed. During the meeting with President Luis Abinader more support for small and medium-sized business was addressed. The Spanish Secretary of State for Trade says Spain will work with the Dominican government so that MSMEs can take advantage of the EPA.
She understands that the new support programs will allow these to increase compliance with the requirements and documentation required to export to Spain.
As reported by EFE, Méndez also met with Energy & Mines Minister Antonio Almonte and said a “very ambitious calendar” was discussed that contemplates the holding of tenders and public-private agreements in the area of electricity generation, transmission and distribution, as well as in renewable energies. “The schedule is very ambitious, there is a lot of room for private investment, and the minister is aware of the capacity of Spanish companies, which have a lot to contribute,” she commented.
In the meeting with President Abinader, major projects in the tourism sector were discussed and cooperation in industrial matters and in the health sector, among other areas, said Méndez.
Spain is the third largest foreign investor in the Dominican Republic, with close to 2 billion euros of accumulated investment.
Read more in Spanish:
El Caribe
El Nuevo Diario
Noticias SIN
DR1 News
25 March 2021