2005News

Free Zones face China

The Dominican Association of Industrial Free Zones (ADOZONA) issued a press release that said that the entry of Chinese textiles into the world market and especially into the United States without any quotas will have a negative impact on the companies in the free zones of the Dominican Republic over the next 18 to 24 months. Arturo Peguero, the president of ADOZONA, told Hoy reporters that three steps should be taken in order to lessen the impact of the new competition. Foremost among the recommendations is the absolute need to “better the competitiveness of the exporters.” While the impact of the Chinese textiles is a certainty, the demand for clothing in the United States remains, for many suppliers, a mystery.

One of the most basic steps needed to guarantee a competitive position in the marketplace will be to strengthen security measures at the ports and airports. Peguero pointed out that while the Caucedo Multimode Port was very up-to-date and security conscious, the port at Puerto Plata was outmoded and obsolete.

Another step will be to continue the processes of modernization already underway. A final step, and certainly the most important, will be more flexibility in use of textiles used in clothing manufactured here that will be exported under the proposed Free Trade Agreement.