Export sector performs poorly over past 15 years
INTEC professor Pavel Isa Contreras has presented research showing that the export sector has performed poorly over the past 15 years. Isa showed that mining and free zones dominate the sector. The economist said the poor performance of the export sector is due to the national business sector’s limited production and competitiveness capacity. He criticized the fact that the country has not updated its productive development policies or has taken competitiveness seriously despite having adopted a national plan.
His presentation, “15 Years of Export Performance and Challenges for Reform of the Trade Policies” was delivered as part of INTEC University’s Annual Business and Economy Congress.
He said the lack of support for productive development has led the country to a stagnated promotion model strictly through tax incentives and low wages.
Institutional weaknesses and governmental negligence in sanitary and pest controls have resulted in lower performance in fruit and vegetable exports.
Regarding free zones, Isa Contreras said after the decline in textile exports there has been some rebound and diversification, which has been positive. But he criticized the fact that these industries are disconnected from the rest of the productive apparatus. He suggested integrating the free zones into the production system saying they should not be enclaves, for which companies operating outside these zones have to be elevated to where they can become suppliers to the free zones.
He said that the free trade agreements have represented limited benefits for Dominican exports. “The problem with exports is not market access and, therefore, free trade agreements did not solve anything,” he stated.
Dec 15, 2015
Category: DR News |