US-manufactured cars will have a major competitive advantage in 2010 in the Dominican market. The time has come for these to pay zero tariffs, as stimulated in the DR-CAFTA free trade agreement.
Enrique Fernandez, director of the Association of Car Dealers (Acofave) is concerned this could affect sales of Asian or European cars.
At present, US-made cars have a 10-15% market share.
DR-CAFTA stimulated zero tariffs in the fifth year of the treaty. The treaty was signed in August 2004. Vehicles at present pay a 20% tariff.