Puerto Rico crisis affects DR
The economic crisis currently affecting our neighbor to the east, Puerto Rico, is also affecting the Dominican Republic. The Dominican Republic exports US$605 million to Puerto Rico every year.
According to a report in Listin Diario, Puerto Rico has a fiscal deficit of US$70 billion, based on figures from the United States Congress.
The Chamber of Commerce and Export for Puerto Rico says that the Dominican Republic sent US$605 million worth of exports to Puerto Rico in 2015, while the island sent products worth US$732 million to the Dominican Republic.
These figures reflect the good trade relationship between both countries, and the Puerto Rican Chamber of Commerce places the Dominican Republic in 10th place as a destination for exports, a positive point at a time when Puerto Rico’s stability is in play, with an unpayable US$70 billion debt owed to its own citizens, international funders and multilateral agencies.
Dominican Agribusiness Board executive president Osmar Benitez says that the Puerto Rican market is essential for maintaining the balance in the DR’s farm export sector for three reasons: the island’s proximity to the Dominican Republic, the cultural affinity between the two nations as well as the direct transportation links provided by the ferry service, at least until a few weeks ago when a fire on board suspended its operations.
He said: “You place your container on the ferry at eight in the evening and those products reach market at six in the morning. They don’t see the sun and even though these containers are refrigerated you have the advantage with shipping at night.” Benitez pointed out that Puerto Rico imports 85% of its foodstuffs.
An important factor for Benitez is the fact that they have already studied the issue and are confident that most homes in Puerto Rico will adjust their consumption of non-essentials like new televisions or brand-name clothing, but will not stop buying their traditional food, which, he says has been supplied by Dominican producers to that excellent market for decades.
Sep 9, 2016
Category: DR News |