The Dominican Republic is suffering under the effects of the Asian devaluation. The most benefited nations are Mexico (that recently also devalued its currency) and Israel that have free trade agreements with the US. Asian countries that have devaluated their currency are also benefiting with an increase in production orders. Dominican Republic ambassador in the US, Bernardo Vega says that the Caribbean region, and the DR as the largest exporter of apparel, are the big losers. In a contribution to the Listín Diario newspaper, Vega points out that U.S. imports of apparel and materials increased 4% in 1996, 18% in 1997 and 13% during the first two months of 1998, compared to the first two months of the year. During this time, Mexico has grown to become the principal supplier of apparel to the US, with exports increasing 42% in 1996, 38% in 1997 and 25% in the first two months of 1998. Israel has also experimented considerable growth, with exports increasing 41% in 1997 and 23% during the first two months of 1998. Asian nations that have devaluated their currency have seen considerable increases in exports. For instance, Indonesian apparel exports grew 26% during the first two months, Thailand grew 25%. Indonesia is now the fifth largest supplier of the United States and Thailand, the ninth. Neither Continental China, the second largest supplier after Mexico, nor Hong Kong have devaluated their currencies, and their exports have maintained at the same levels. In 1996 Dominican exports grew 1%, in 1997 these grew 21%, but during the first two months of 1998, exports declined 4%, reflecting the effect of Mexican and Asian devaluations. The DR in 1997 was the ninth largest exporter of textiles to US, but there is concern given its slow growth that it could lose market share as Mexico, Israel and Asia are attracting orders that in the past were granted to Dominican free zones. Vega explains that Jamaica has been the big loser. Exports dropped 5% in 1997 and 7% during the first two months. Jamaica is ranked 24th in apparel exports to the United States. Caribbean and Central American countries have lobbied before U.S. Congress for the passing of the textile parity bill that would give regional producers equal treatment with Mexico. But this has not happened. Vega says that the situation affects Honduras, El Salvador, Guatemala and Costa Rica. Furthermore, he points out that the passing of the textile parity bill would have a very positive effect on the economy of Haiti and the well being of its inhabitants. Haiti, has bounced back from an almost non-existent manufacturing industry following the political crisis. In 1996, Haitian textile exports grew 19%, in 1997 these again increased 56% and they are up 63% for the first two months of 1998. Export levels are still well below the levels of 1989, prior to the political crisis. In 1983, Dominican textile exports were only US$56 million more than those of Haiti, while today the difference is US$2,045.7 million dollars. Vega points out that there are only 42 days left for the U.S. Congress to pass the textile parity bill that would place the DR and other Caribbean and Central American countries at equal standing to Mexico and Israel. The 272 textile industries in the Dominican Republic employ 132,000, with a 3-2 ratio favoring women. Vega advocates that it is in the best interest of the United States for the U.S. Congress to approve the bill. He said that contrary to Israel and Asian manufacturers, Caribbean and Central American free zones import U.S. fabric for their apparel assembly operations. <\/p>\n","protected":false},"excerpt":{"rendered":"
The Dominican Republic is suffering under the effects of the Asian devaluation. The most benefited nations are Mexico (that recently also devalued its currency) and Israel that have free trade agreements with the US. Asian countries that have devaluated their currency are also benefiting with an increase in production orders. Dominican Republic ambassador in the … <\/p>\n