Carlos Manuel Alvarez, president of the Santiago Association of Free Zones told El Caribe that it may be a good time to turn the entire Dominican Republic into a duty free export zone. By doing so, the country would get a head start versus Central America that has green light for talks towards a free trade agreement with the United States. The DR has put in a request for a bilateral, but talks are not yet scheduled.
By 2009 free zones will not be able to retain all their advantageous trade conditions. ?Perhaps the alternative is that the entire nation become one single free zone and that way we may confront the globalization process that is affecting our production,? said Alvarez.
The Santiago free zone contributes 20 percent of the revenues entering into the Central Bank and 20 percent of the total free zone employment. It employs more than 50,000 persons with wages from RD$750 to RD$4,000 a week, for a total payrole of approximately RD$200 million a year.
Alvarez said that one of the main obstacles to competitiveness locally is the high cost of power. He said that despite the free zones having been approved to connect directly to purchase power from the generators, the power distributors have not allowed this to happen with the acquiescence of the government.
Alvarez said that the National Competitiveness Council could play a key role in the development of the country if adequate governmental support is provided for it to achieve its objectives.
