Presidential Technical Secretary Temistocles Montas sent a letter on Friday to Senate leader Andres Bautista, requesting that the legislature eliminate the clause added to the fiscal reform bill that levies a 25% tax on corn syrup sweetener imports. The Fernandez government had asked the Senate not to make any changes to the bill sent by the Chamber of Deputies, so as to hasten its passage. If the Senate makes any modification, the bill would return to the lower house for its approval anew. The surcharge is being challenged by the US Trade Representative Office that say it would be contrary to the bilateral free trade agreement (DR-CAFTA) signed in August. Lobbyists from the DR’s two dominant sugar companies say the cheaper priced sweetener would reduce their ability to compete locally. The USTR Office says the inclusion of the 25% charge would suspend the DR-CAFTA indefinitely. On the other hand, the American Chamber of Commerce in Santo Domingo and the Free Zone Association are against any action that would imperil the DR-CAFTA.
The Executive Branch, in the same letter to Bautista, urged that Congress swiftly pass the fiscal reform package in order to close the existing fiscal gap.