2022News

Approval of duty-free staples arouses opposition from farm producers

The Chamber of Deputies approved a bill that will remove customs duties on Dominican basic food basket items. Due to the handling of the voting on the proposal, many, if not all, of the opposition deputies withdrew from the session. The ruling Modern Revolutionary Party (PRM) is majority in both houses of Congress. The issue was apparently the very limited discussion that was allowed before the voting.

This incident, combined with the questioning from the nation’s food producers, seems to have dimmed the prospects of a happy legislative process. President of the Chamber of Deputies, Alfredo Pacheco has spoken up in favor of the zero tariffs on the imports.

Meanwhile, Minister of Economy Miguel Ceara-Hatton also defended the zero tariffs. In a press conference with the participation of Agriculture Minister Limber Cruz, Ceara-Hatton said the bill was necessary to mitigate inflation and place food in Dominican homes at more affordable prices. He defended it was a provisional measure. “The Dominican government with the proposed law to suspend the tariffs paid by 67 food products to enter the country, aims to protect the budget of the Dominican family,” he added.

The Dominican Agro-Business Board (JAD) has opposed the carte-blanche treatment of foodstuffs from overseas. The JAD said that the Dominican Republic is self-sufficient in items such as rice, poultry, eggs, plantains, yucca, batatas, and many other items that are on the list of tax-free access to Dominican markets.

According to the JAD, this is not an issue of just price in the marketplace since many of the listed products would be more expensive than the locally-produced equivalent.

The producers are also concerned the imports could bring pathogens from other places. Instead, the producers propose that the government provide incentives for local production of crops such as beans, corn, dairy products, garlic, and other such products.

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Listin Diario
Listin Diario
Listin Diario

4 April 2022