An analysis carried out by the Dominican Observatory of International Commerce (ODCI) reveals that some 13 Dominican products would be among the most affected if and when the Trans Pacific Partnership (TTP) trade agreement goes into effect.
The study “An Estimate of the Potential Impact of the TTP on the Dominican Exports to the United States” was carried out by economists Pavel Isa Contreras and William Miguel Roman. The economists presented the results of the study during a press conference at the Santo Domingo Technological Institute (Intec) on 6 July 2016.
Economist Isa Conde said that the TTP would have a low effect on the Dominican economy, however some 13 products including apparel, plastics, footwear and jewelry would be the most affected by the competition from the signatory countries of the TTP. The products add up to US$1.5 billion, or 34% of total exports from 2012 to 2014 and 17% of total Dominican exports.
He noted that the countries involved in the TTP agreement represent 36% of the world GDP and 11% of global commerce. He said that of all the products from this country that are most sensitive to these changes, apparel heads the list because it is subject to higher tariffs. Isa Conde said in fact, 88% of the total increase projected in the imports from the countries that are signatories to the agreement is expected to be in apparel.
At the conclusion of his remarks on this research, Isa Contreras urged the government to refocus its investment policy regarding incentives for production and exports towards the training of the country’s human capital through basic education as well as university and vocational training. He noted that until now, the policy for stimulating production has been focused on tax exemptions and low salaries that, in his opinion, are misplaced.