The Minister for Foreign Relations, Eduardo de la Torre, says that the Dominican Republic and 13 other states in the Caribbean have agreed to negotiate a free trade agreement. Discussions will begin in January 1997. The agreement will be in line with the stated intention to increase the D.R.’s presence in the region. The agreement will allow the country to markets its products without duty and abolish other non-fiscal obstacles. Caricom countries will also be able to export duty free to the D.R.
The agreement includes Antigua, Barbuda, Bahamas, Belize, Dominica, Grenada, Guyana, Jamaica, Trinidad & Tobago, San Cristobal and Nevis, St. Vincent and the Grenadines, St. Lucia and Surinam, members of the Caricom.
Eduardo Latorre said that the government seeks to increase its trade relations with the Caribbean states, which currently only manifests US28 million a year in exports. He expects this sum to increase considerably under the new agreement.
In an analysis published in the Listin Diario, Bernardo Vega writes that the DR exports US$6 million to Caricom, and imports US$16 million. Jamaica is the most important market with exports valued at US$4 million. Ninety percent of all Dominican imports are petrochemical products from Trinidad. He estimates that the Caricom market for Dominican products is 190% of the size of the domestic market, and therefore the potential for exports is high. He comments that the most important aspects to negotiate are two brief “negative lists” of items that would not enter free of duty. These would include petrochemical products from Trinidad. Caricom countries could include Dominican sugar. He feels that this agreement would increase exports in the short range by, at best, some US$15 million, and its true importance is in the lesson on negotiating and participating in a free trade agreement. It would also would be a firm sign that the country is ready to leave its isolationism.
Bernardo Vega, a former Central Bank governor, thinks that the second step would be an agreement with the Central American Common Market, which should take place after the tax reform is completed. This agreement would then be followed by agreements with Colombia, Venezuela and Mexico.
The agreement is part of the new policy for the country to have a more active presence in the Caribbean.