Dominican exports down 10 years under DR-CAFTA
After 10 years of DR-CAFTA, Dominican exports still have yet to get a boost, despite the promises made by government officials in both the US and DR when the agreement was announced.
A study carried out by DASA for the Ministry of Planning (MEPyD) reveals that while Dominican exports during the period (2005 to 2014) have diversified, the overall value of exports has declined 11.11% since the signing of the agreement. In 2005, at the signing of the agreement, Dominican exports to the United States were US$4.48 billion. The exports have steadily declined and by 2014 they were valued at US$4.46 billion, or a decrease of 0.4%. The study reveals the decline is mainly due to the reduction in apparel exports originating at duty free manufacturing zones.
On the contrary, imports were boosted by DR-CAFTA over this ten-year period. In 2014, the DR imported US$6.24 billion from the United States, up from US$4.16 billion in 2005. In 2005, the DR had a trade surplus with the United States of US$317 million.
Nevertheless, Roberto Despradel for DASA said that the study “Evaluation of the Trade Performance and Future Challenges of DR-CAFTA 10 Years after its Signing” shows that the farm and agro-industrial sector has been the sector to best take advantage of the treaty. He said farm and agro-industrial exports went from US$479 million in 2005 to US$917 million in 2014. This compares to apparel exports that went from US$1.92 billion in 2005 to US$851 million in 2014.
Despradel said the country will be affected by the dismantling of tariffs on protected farm products.
Source: DR1, DiarioLibre
July 15, 2016
Category: DR News |