Dominican Republic trade with Canada explodes
Miami.- Thanks to a dramatic jump in gold exports by Barrick Gold, the Dominican Republic has become the sixth-largest Latin American exporter to Canada and Canada’s seventh-largest trade partner in Latin America, according to a Latinvex analysis of data from Statistics Canada.
Canada’s imports from the Dominican Republic jumped 334.1 percent to 1.2 billion Canadian dollars. That was the highest growth of any Latin American exporter last year and follows a 90.8 percent increase in 2012, which was also the highest growth at the time.
As a result, total trade grew 237 percent to 1.4 billion Canadian dollars. That was the highest growth of any Latin American country last year, repeating the results in 2012.
Thanks to the Dominican export growth last year, it now ranks as the sixth-largest Latin American exporter to Canada, up from 11 in 2012 and 15th place in 2011.
Canada’s own exports to the Dominican Republic also grew strongly, albeit by double-digits: 21.2 percent to 154.3 million Canadian dollars. That was the second-highest increase in Latin America.
The dramatic increase in Dominican exports is due to gold exports from the Pueblo Viejo mine, which is operated by Barrick Gold and owned 60 percent by Barrick Gold and 40 percent Goldcorp, another Canadian miner.
Gold output at Pueblo Viejo jumped from 67,000 ounces in 2012 to 488,000 ounces last year. This year, Barrick expects to see between 600,000 and 700,000 ounces. The mine is expected to reach full capacity in the first half of 2014 following completion of modifications to the lime circuit, Barrick said in its latest earnings release.
The $4 billion Pueblo Viejo mine is the largest foreign direct investment in the Dominican Republic, but the Dominican government – facing a record fiscal deficit — last year forced Barrick Gold to amend its existing contract and pay an additional $1.5 billion in fees after it threatened to impose a special tax.
“Canadian investors prize predictability and stability,” Ken Frankel, chair of the Canadian Council for the Americas (CCA), told the Inter-American Dialogue’s daily Latin America Advisor recently. ”This has become a challenge for the Canadian mining sector which has experienced modifications of investment and royalty rules and contracts well after massive amounts of money have already been sunk into the ground.”
Category: DR News |