Download 5 REPLIES BY THE REPRESENTATIVE OF the dominican republic

WT/TPR/M/319
29 October 2015
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Trade Policy Review Body
22 and 24 July 2015
TRADE POLICY REVIEW
DOMINICAN REPUBLIC
MINUTES OF THE MEETING
Chairperson: H.E. Mr. Atanas Atanassov Paparizov (Bulgaria)
CONTENTS
1 INTRODUCTORY REMARKS BY THE CHAIRPERSON ....................................................... 2
2 OPENING STATEMENT BY THE REPRESENTATIVE OF THE DOMINICAN
REPUBLIC......................................................................................................................... 5
3 STATEMENT BY THE DISCUSSANT .............................................................................. 13
4 STATEMENTS BY MEMBERS ........................................................................................ 16
5 REPLIES BY THE REPRESENTATIVE OF THE DOMINICAN REPUBLIC AND
ADDITIONAL COMMENTS ............................................................................................... 39
6 CONCLUDING REMARKS BY THE CHAIRPERSON ......................................................... 43
Note: Advance written questions and additional questions by WTO Members, and the replies
provided by the Dominican Republic are reproduced in document WT/TPR/M/319/Add.1 and will be
available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.
WT/TPR/M/319 • Dominican Republic
-21 INTRODUCTORY REMARKS BY THE CHAIRPERSON
1.1. The fourth Trade Policy Review of the Dominican Republic was held on 22 and 24 July 2015.
The Chairperson H.E. Mr Atanas Atanassov Paparizov (Bulgaria) welcomed the delegation of the
Dominican Republic headed by H.E. Mr César Dargam Espaillat, Vice Minister of External Relations;
H.E. Ambassador Luis Piantini, Permanent Representative of the Dominican Republic to the WTO;
the rest of the delegation from Santo Domingo; colleagues from the Mission in Geneva; and the
discussant, H.E. Ambassador Esteban Conejos (Philippines).
1.2. The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of
the procedures for the meeting. The report by the Dominican Republic was contained in document
WT/TPR/G/319 and that of the WTO Secretariat in WT/TPR/S/319.
1.3. The Dominican Republic opted for the alternative time-frame for its TPR. Questions by the
following delegations had been submitted in writing before the deadline of 5.30 p.m. of 24 June
and had been transmitted to the delegation of the Dominican Republic: Australia; Peru; the
European Union; Canada; the United States; Colombia; Brazil; Mexico; Costa Rica; and
Guatemala. The following delegations submitted written questions after the deadline: the Republic
of Korea; Trinidad and Tobago; Ecuador; El Salvador; Thailand; and Chile. These questions had
also been transmitted to the delegation of the Dominican Republic.
1.4. At the time of the previous review in 2008, Members had commended the Dominican
Republic for its commitment to trade liberalization, as demonstrated by its unilateral MFN tariff
reductions, as well as for the strengthening of its legal and institutional framework, including in the
areas of competition policy, government procurement, and intellectual property rights. Members
had also acknowledged the Dominican Republic's efforts to facilitate trade and modernize customs.
Amidst a very positive review, Members had queried the transparency in the adoption of technical
regulations and SPS measures, as well as the administration of tariff-rate quotas. They had urged
the Dominican Republic to continue taking steps to eliminate the distortions arising from fiscal
incentives, and to comply with its international commitments in this area.
1.5. Now turning to the current fourth review, the Chairperson was pleased to note that the
Dominican Republic weathered successfully the global crisis, with GDP growing at an annual
average rate of 4.4% in the period 2008-14. This was due to the use of countercyclical policies,
Central Bank action to support banks and strengthen regulation, and a process of tax reform. As a
result, domestic banks were currently well capitalized, the fiscal deficit remained contained, and
public debt remained low, at some 38% of GDP in 2014.
1.6. Trade was important for the Dominican Republic, accounting for some two-thirds of GDP if
Members considered flows of good and services. The main sources of foreign exchange were
tourism receipts, exports from free trade zones and remittances from Dominican citizens working
abroad. Manufactured products, especially textiles and clothing and metal products, accounted for
over 50% of exports. Agricultural exports consisted mainly of sugar, coffee, and tobacco products.
1.7. The Dominican Republic valued considerably its participation in the multilateral trading
system as shown by its active involvement in the WTO, including in the negotiations of the Doha
round, where it participated in several negotiating groups.
1.8. While actively engaged in the WTO, the Dominican Republic had also pursued further
liberalization by engaging in free trade agreements with its main trading partners. To date, it had
subscribed five FTAs: the CAFTA-DR, the EPA between the EU and CARIFORUM, and FTAs with
CARICOM and Central America, and with Panama. Members showed interest in the coverage,
scope and implementation of these agreements.
1.9. Trade-enhancing initiatives had also included the simplification of customs procedures. In this
regard, the Dominican Republic had taken several steps towards the facilitation of trade since its
last review, mainly aimed at streamlining customs procedures, by making the process automated
and relying increasingly on risk management systems to avoid unnecessary inspection and hence
delays. The authorities were now working on the completion of a Single Window, which would
further facilitate trade. An important recent step undertaken by the Dominican Republic was the
WT/TPR/M/319 • Dominican Republic
-3notification, in July 2014, of the measures in category A under the WTO Trade Facilitation
Agreement.
1.10. The Dominican Republic's liberal trade and investment regime was characterized by low
tariffs, few non-tariff barriers or investment restrictions. Over half of tariff lines were zero-rated
and foreign investors were generally granted national treatment.
1.11. Members would want to know more about the amendments introduced to the Dominican
Republic's Free Zone legislation during the period under review to eliminate the 80% export
requirement. Sales from free zones to the domestic market were now freely allowed, subject to a
"compensatory tax" currently at 3.5%, which the authorities considered corresponds to the
presumptive tax payed outside the zones. It would be interesting to hear from the authorities how
the collection of this tax had operated since its implementation in 2013 and the impact on the
movement of goods from free zones into the domestic market.
1.12. The concern expressed by Members in the last review with respect to the lack of
transparency of the technical regulation formulation process seemed to have been addressed by
the Dominican Republic when it introduced in 2012 substantial changes to the procedures to
determine and manage its technical regulations, standards, and conformity assessment process.
The new legislation mandated that technical regulations, to the extent possible, be based on
international standards. However, at the time of completion of the Secretariat report, the new law
had not yet been fully implemented. Members would like to hear from the Dominican Republic
where the implementation of the new law stood, and if its Regulations had come into force.
1.13. Despite not participating in the GPA, the Dominican Republic's procurement process had
become increasingly transparent and most procurement now takes places competitively. There
were no margins of preference for nationals. There was a set-aside of 20% for small and medium
size enterprises which was introduced in 2013.
1.14. Having taken stock of all the important achievements made by the Dominican Republic
during the review period, Members came to areas where further efforts would be welcome. The
first was competition policy, where, although a competition authority had been established, at the
time of drafting the Secretariat report, it was not yet operational, with no anti trust activities being
currently carried out. Given the particular importance of ensuring a competitive market in a small
economy, the Chairperson invited the delegation of the Dominican Republic to update Members on
the state-of-play of the competition policy enforcement.
1.15. Members noted that the Dominican Republic had addressed the concern expressed in the
last review regarding the allocation of WTO tariff quotas by introducing changes to the way it
allocated licences, which were now done through public auctions. Although overall protection to
the agricultural sector remained moderate, tariffs were still higher than the national average.
Members wanted to know more about the programme to grant aid to rice producers by covering
storage and financial costs linked to credit obtained by the farmers.
1.16. An area were improvements were needed was the electricity sector, which was
characterized by insufficient production. The scarce supply of electricity could have an impact in
the further development of tourism and other industries. Members would like to hear more about
the authorities' plans to reform the energy sector to foster the production of renewable energy,
mainly wind and solar energy.
1.17. These were only a few of the topics that were touched upon in the reports and in the over
130 questions raised by Members. Other issues highlighted by Members included: restrictions to
foreign investment in some areas; import licensing procedures; actions taken for enforcement of
IPRs; incentives; notification of State-owned enterprises; measures taken to increase
competitiveness in agriculture; and criteria for approval of foreign investments in banking, among
others.
1.18. The Chairperson was sure that these topics and themes, and many more, would be touched
upon in greater detail at the deliberations on the first and second day of the meeting.
WT/TPR/M/319 • Dominican Republic
-41.19. The Chairperson closed his introductory remarks by wishing the Dominican Republic a very
successful fourth Trade Policy Review. He looked forward to its active engagement in this TPR.
1.20. He also noted that a podcast would be made of the meeting which could be accessed on the
Members' website.
WT/TPR/M/319 • Dominican Republic
-52 OPENING STATEMENT BY THE REPRESENTATIVE OF THE DOMINICAN REPUBLIC
(H.E. MR CÉSAR DARGAM ESPAILLAT)
2.1. On behalf of the Government of the Dominican Republic, I would like to say how pleased we
are to be here today to present our fourth Trade Policy Review and thus fulfil one of the core
commitments undertaken by all Members of the World Trade Organization.
2.2. The presence of the Dominican delegation today is a clear demonstration of our
Government's determination to help increase the transparency and understanding of its trade
policies and practices, within this leading forum for intergovernmental dialogue on international
trade issues.
2.3. Firstly, we should acknowledge that, since the presentation of our previous Trade Policy
Review, there have been constant changes in the international arena. Therefore, our analysis not
only shows the internal factors that have had an impact on our economy and trade, but also
reflects a period marked by severe external shocks that have affected, in one way or another, our
indicators, actions and the potential of the reforms implemented by our Government.
2.4. As you will have noted in our report, the Dominican Republic still has a small economy (in a
global context), and faces the same challenges as other small economies in a volatile international
market, with competition from economies bolstered by technological development and innovation.
Moreover, as we are an island State, we are vulnerable to the effects of global warming and to the
natural disasters that affect our region. All these factors have led to the development of
institutional policies and improvements, which are being implemented or are under negotiation, in
order to overcome such challenges. After all, we may be an island, but we are not isolated.
2.5. The Dominican Republic that is presenting its trade policy review today has made significant
progress in strengthening its institutional structures and democracy. This is clearly demonstrated
by the fact that our development was not adversely affected by the change in government during
the period under review. Due observance of the principle of State continuity in issues of national
interest has ensured progress and stability in the measures we have taken.
2.6. The Dominican Republic today is a different country from the one presented here just over six
years ago. It has seen major progress in a number of areas, although there are still challenges to
overcome. Nevertheless, it is a country that has placed people at the centre of its policies, as
reiterated by our President Danilo Medina. Our approach promotes not only the generation of
wealth, but also the comprehensive and sustainable development of our citizens.
2.7. Ladies and gentlemen, let me turn now to our economic environment.
2.8. During the period 2009-2014, the Dominican Republic saw average annual growth of 4.4%,
including positive growth during the most difficult years of the international financial crisis. This
high level of growth over this extensive period of crisis, in which the OECD economies posted
average growth of only 1%, confirms that the national authorities were correct in implementing
countercyclical policies, supported through financial programmes of the International Monetary
Fund (IMF).
2.9. Accordingly, it should be noted that as from 2013 (post crisis), our economic growth gathered
pace, rising to 7.3% in 2014, and 6% in the first quarter of 2015. It was four times higher than
the growth forecast for the Latin America and the Caribbean region, and was mainly driven by
increases in gross capital formation, goods exports, and income from tourism and remittances.
These latter two sources of income are picking up steadily as the North American economy
recovers.
2.10. Economic growth led to a 25% increase in GDP per capita, which reached US$6,480 in 2014
(in 1991, per capita GDP stood at US$1,315, meaning that it has expanded five-fold in the last
25 years).
2.11. The annual inflation rate has remained under 4% and has been decreasing, particularly
since 2012 when the Central Bank aligned its monetary policy with an inflation targeting scheme.
WT/TPR/M/319 • Dominican Republic
-6In December 2014, the annual inflation rate was 1.58% and in May 2015, it continued to fall to
0.23%.
2.12. The Dominican economy recorded further expansion in the external sector, boosted by the
implementation of prudent macroeconomic policies and by a virtually unchanged real effective
exchange rate which has supported our export sector, resulting in a change in growth trends for
the components of foreign trade in goods. Our export growth rate almost doubled in comparison
with imports.
2.13. The current account deficit of the balance of payments thus decreased gradually from 9.4%
of GDP in 2008 to 3.1% in 2014. Moreover, the Central Bank's international reserves have
increased and now stand at an amount equivalent to three months of total imports.
2.14. Another indicator that shows the resilience of the Dominican economy to external shocks is
the consolidated public sector's external debt, which, in March 2015, accounted for 23.6% of GDP.
This figure is relatively low compared with the debt of the other Caribbean economies. For
example, their average total public debt was 78.6% of GDP in 2014, while the total debt of the
Dominican public sector was 37.9%, which has been reduced by 3.3 percentage points. This was
due to the recent debt purchase by the Venezuelan oil company PDVSA, which included a 52%
release from the amount owed.
2.15. As regards taxes, the reforms implemented to increase income levels, combined with the
countercyclical expenditure policies introduced to address the negative effects of the external crisis
on domestic aggregate demand, have played a fundamental role in strengthening our external
sector. The domestic tax ratio to GDP increased by 2.7 percentage points in 2013 compared with
2011. However, it still remains low at 15%, in comparison with the rest of Latin America and the
Caribbean, where the average ratio is 21.3%. Since 2012, the deficit of the non-financial public
sector has decreased by 3.7 percentage points (53%), falling to 3.2% of GDP in 2014.
2.16. This robust growth, together with low inflation and effective government policies aimed at
combating poverty and improving income distribution, have considerably reduced extreme
poverty, through the use of social spending for programmes targeting the most vulnerable
segments of the population, technical and financial support for rural producers' associations in the
poorest areas, and the active participation of small and medium-sized enterprises (SMEs) in credit
access and government procurement. During the period under review, extreme poverty was
reduced by 40%, dropping to 7.9% of the total population in 2014. The Gini index decreased from
0.494 to 0.453, a coefficient similar to that of the United States. Moreover, overall poverty has
fallen from 42.2% to 35.5% compared with September 2012, that is to say 6.7 percentage points
of GDP, and 9 percentage points in rural areas.
2.17. As shown, we have made great progress, but we still have work to do. As we have an
upper-middle income economy according to the World Bank ranking, we do not have access to
multilateral and bilateral "soft" loans, despite the fact that we still have high poverty levels.
2.18. Nevertheless, in the last three years, 299,325 formal jobs have been created. This has
helped lift 583,823 Dominicans out of poverty. Our people-centred approach is demonstrated by
action rather than words.
2.19. Other tools used by the Dominican Government to reduce poverty have been aid
programmes for the most disadvantaged rural areas.
2.20. We should point out that most of the country's poor households are located in these areas.
Revitalizing the agricultural sector is necessary in order to drive growth and alleviate poverty.
Therefore, one of the key objectives of our National Development Strategy 2010-2030 is to raise
the productivity, competitiveness and environmental and financial sustainability of agricultural
production chains so as to enhance food security, take advantage of export potential and generate
employment and income for the rural population.
2.21. We should also mention that the Special Agricultural Development Fund (FEDA) was
reactivated at the end of 2012. Its institutional and legal framework is based on Law No. 367 of
1972. FEDA's mission is to promote and stimulate sustainable development in rural areas in order
WT/TPR/M/319 • Dominican Republic
-7to improve the sector's competitiveness by strengthening social and production infrastructure and
improving access to solidarity loans with low, positive real interest rates for producer organizations
which, for various reasons, cannot benefit from loans provided by formal entities or commercial
banks.
2.22. The President of the Republic, Danilo Medina, plays a direct role in managing these
programmes by conducting "surprise visits", during which the needs stated by the country's
poorest producers' associations (composed mainly of women) are identified, assessed and properly
addressed. The aims here are to generate rural employment, ensure access to credit, reforest
watersheds and modernize infrastructure in the countryside, thereby raising the standard of living
of rural dwellers. These programmes have been so effective that the producers' associations have
already started exporting their products with the technical support of our Government through the
Ministry of Agriculture. They have had such a great impact on poverty reduction that in
September 2014, the United Nations Food and Agriculture Organization (FAO) invited the
Dominican Republic to present them as a model to be replicated in other countries.
2.23. Other tools used to place the Dominican Republic on the development path have been
assistance programmes for small and medium-sized enterprises (SMEs). In the last two years,
38 billion pesos (around US$900 million) have been spent on implementing SME assistance
programmes, which have benefitted 150,000 SMEs, as part of a policy to stimulate and support
the production sector and boost employment.
2.24. Under the government procurement policy, all procurement is conducted through
competitive bidding, and the operations carried out by the institutions are monitored continuously
by a group of supervisors from civil society. In accordance with the law, contracts with SMEs must
represent a minimum of 20% of total government procurement.
2.25. It is clear that our trade policy review of the last six years coincides with a unique moment
in history. In the period under review today, not only have we been able to reap the rewards of
our work, but we have also been able to reflect on the economic environment of today and
tomorrow.
2.26. We are living in times of constant change, which foreshadows a change of era. In the
Dominican Republic, we are aware that in this situation, no country has a secure future ahead of
it. The most successful will be those which are able to interpret and best adapt to the
circumstances, create highly efficient mechanisms to cope with changes, and ensure that their
development is sustainable.
2.27. It was during the period under review that the Dominican Republic approved its
National Development Strategy, which contains a vision for the future of our country. This strategy
was adopted under Law No. 1-12 of 25 January of 2012 and its implementing regulations under
Decree No. 134-14 issued on 9 April 2014.
2.28. Through extensive consultations, we were able to determine the kind of country Dominicans
would like to have by 2030, and the best ways to achieve it. A national agreement was therefore
reached on what we want and how to obtain it. Now, this agreement requires combined efforts to
ensure that the policies outlined in the Strategy are pursued in order to achieve the necessary
reforms.
2.29. The National Development Strategy represents a fundamental change in the management of
the State. The conclusion of an agreement on objectives, policies and targets must ensure the
continuity of government action in order to build the country that Dominicans want to see.
2.30. This long-term plan is based on three major national pacts: the Education Pact, the
Electricity Pact, and the Fiscal Pact. I would like to provide a few details on these pacts, as we
believe that they add value to our trade policy review.
2.31. The Education Pact establishes that a country pursuing development should invest in
education. Therefore, a budget equivalent to 4% of GDP has been allocated as investment for this
purpose. The Pact comprises the following main elements.
WT/TPR/M/319 • Dominican Republic
-82.32. An initiative for extended-day schools: this is a new education model which extends the
school timetable to eight hours of educational work in order to ensure quality teaching, and
achieve better learning outcomes and greater equality and coverage. For the school year
2014-2015, 403,899 students were signed up for the Extended School Day Programme, which
brought the total number of beneficiaries to 602,584, representing around 40% of students. Under
this programme, the children remain in school from 8 a.m. until 5 p.m., and are offered breakfast,
lunch and snacks, in addition to extra-curricular activities. The programme not only has a positive
effect on children's development but it also allows their parents to devote more time to other
commitments.
2.33. A national plan for comprehensive early childhood care, called Quisqueya Empieza Contigo
("The Dominican Republic starts with you"): this plan is one of the initiatives launched by the
central government, and seeks to protect and provide comprehensive care for children under five
years and their families, in order to promote the development of skills and opportunities, and
thereby reduce poverty and social exclusion. Through the construction and furnishing of childcare
facilities and community centres, we are creating the conditions required to provide care for
446,776 children under five (46% of the total child population) by 2016.
2.34. A national literacy plan called Quisqueya Aprende Contigo ("The Dominican Republic learns
with you"): this programme, launched by our Government, has been very interesting and fruitful.
Overcoming illiteracy in individuals over 15 years by the end of 2016 is one of the objectives
prioritized by President Danilo Medina, with a view to fostering continued learning and entry into
the labour market. The achievement of this goal will enable us to build a society that can surmount
the current levels of exclusion, benefitting not only Dominicans in our country, but also those living
abroad. In 2014, a total of 184,730 beneficiaries completed the basic literacy programme, and in
the last two years, 454,730 became literate, which is evidence of the great efforts made to tackle
illiteracy. Thanks to this programme, the Dominican Republic has met the target set by UNESCO to
lower the illiteracy rate to less than 5% by the end of 2014.
2.35. An initiative to build, extend and refurbish classrooms: In 2014, 10,017 educational spaces
were built, as part of the National Construction Plan, in order to address the shortage of
classrooms.
2.36. An initiative for teaching career development and training for head teachers, with an
emphasis on training and further training: This involves investment not only in infrastructure but
also in the quality of our education. In 2014, total investment in teachers amounted to around
US$35 million.
2.37. The objective of the Electricity Pact is to resolve the structural crisis which has affected the
electricity sector in the Dominican Republic for a number of years and which has unquestionably
halted the country's progress towards development. The Pact seeks to ensure the necessary
predictability within the regulatory and institutional framework, to allow for the investment in
energy required for national development, while guaranteeing a reliable supply of electricity at
competitive prices and under financially and environmentally sustainable conditions. Alongside this
process, the Dominican Government has made major investments in and great improvements to
the electricity sector.
2.38. Concerning the Fiscal Pact, a tax reform was carried out in 2012, which enabled us to place
the country on the path to economic growth that we mentioned at the beginning of this statement.
Under this Fiscal Pact, a comprehensive tax reform is to be implemented, in order, among other
objectives, to: (i) reduce tax evasion; (ii) improve the quality, efficiency and transparency of
public spending; and (iii) increase the efficiency, transparency and fairness of the tax structure.
2.39. Moreover, as part of the National Development Strategy, the Dominican Republic joined the
Global Forum on Transparency and Exchange of Information for Tax Purposes in 2013. The
initiatives developed in this regard include the implementation of regulations on
undercapitalization and on transfer pricing, in line with OECD recommendations. In fact, we were
the first country in Central America and the Caribbean to introduce this type of regulations in our
legislation.
WT/TPR/M/319 • Dominican Republic
-92.40. Our current tax treaty partners are Canada, the United States and Spain. These countries
account for over half of our direct foreign investment and our exports. Nevertheless, we have
launched a strategy to extend our network of tax agreements to include all other relevant
jurisdictions. As part of this strategy, we have developed a tax agreement model, based on the
model recommended by the OECD for tax information exchange agreements in 2002, which we will
initially send to 20 countries. We will also be requesting accession to the Convention on Mutual
Administrative Assistance in Tax Matters in the very near future.
2.41. It should furthermore be noted that we have concluded a consent agreement to sign the
Model 1A Intergovernmental Agreement (IGA) of the Foreign Account Tax Compliance Act (FATCA)
for the reciprocal exchange of information with the United States.
2.42. These results and other efforts made by the Dominican Republic to date, confirm our
commitment to fully complying with international rules, including the standards of the
Global Forum.
2.43. Implementation of a trade policy aimed at deepening and making full use of the levels of
openness achieved is one of the basic pillars of our National Development Strategy. All of these
actions helped to improve national economic and social indicators during the period under review.
2.44. In this regard, we should mention that since the previous trade policy review in 2008, the
Dominican Republic has adopted various measures to facilitate trade and upgrade formalities and
procedures relating to border customs management. The Integrated Customs Management System
(SIGA) came on stream in 2009 as a technological tool that has helped automate goods import
and export processes and reduce goods clearance costs and times. SIGA has now been
implemented in all the country's customs administrations.
2.45. The Dominican Republic has developed the Authorized Economic Operator (AEO) regime as
a measure complementary to SIGA and in accordance with trade facilitation best practices and the
guidelines contained in the SAFE Framework of the World Customs Organization (WCO) to secure
and facilitate global trade. The legal framework for AEOs is contained in Decree No. 144-12 of
22 March 2012. At March 2015, 31 enterprises had already been certified as AEOs, including
exporters, importers, port agents, shipping agents, customs agents, warehouses and freight
consolidators.
2.46. Parallel to the operator certification process, other initiatives are under way to achieve
mutual recognition between customs administrations and thereby further facilitate trade for
operators involved in import or export transactions. A mutual recognition agreement has been
signed with the customs administration of South Korea, and bilateral arrangements and meetings
have already been initiated with the United States customs administration to the same end.
2.47. As already mentioned, another crucially important trade facilitation project is the Single
Window for Foreign Trade (VUCE) created by Decree No. 470-14 of 12 December 2014. This is a
tool that enables the parties involved in international trade to electronically submit the
documentation and information required for goods import and export transactions once only via a
single virtual site.
2.48. It should be noted that in February this year, a new, modern scientific laboratory, equipped
with state-of-the-art technology, was inaugurated by the Dominican customs, with a view to
fostering and supporting their technical procedures for control and facilitation. The capacity of the
laboratory to analyse and verify goods that are hard to identify ensures that the correct tariff
classifications for products, and consequently taxes or exemptions, where applicable, can be
determined objectively.
2.49. The Dominican Republic has initiated the formalities for the acceptance and ratification of
the WTO Trade Facilitation Agreement and is also taking the steps necessary to create and launch
the National Trade Facilitation Committee. Along the same lines and as evidence of the
Dominican Republic's resolve to implement this agreement, the country notified the WTO of the
Category A measures being contemplated. These are measures that will apply when the
agreement takes effect, many of which were already in force before the above-mentioned
notification and even before the signing of the agreement. They include the availability of
WT/TPR/M/319 • Dominican Republic
- 10 information via the Internet, advance rulings, the right of appeal or review, electronic payment of
customs duties, and post-clearance audits.
2.50. As regards sanitary and phytosanitary measures and technical regulations, the
Dominican Republic has made major efforts to ensure transparency by notifying them to the WTO.
During the period under review, it submitted 77 notifications to the Committee on Technical
Barriers to Trade and 82 to the Committee on Sanitary and Phytosanitary Measures.
2.51. Currently, the Dominican customs enjoy a leading position at regional and international
level, and have made substantial and sustained improvements over the last three years. The
World Bank Doing Business in Central America and the Dominican Republic 2015 and
Doing Business 2015 reports ranked the Dominican Republic 24th out of 189 countries that were
evaluated based on their ease of trading across borders. This was an improvement of nine points
compared with 2014, and 22 compared with 2013. These results show that the Dominican Republic
was the third best economy, among the countries analysed, in terms of improvement of the
trading across borders indicator.
2.52. Regarding the free zone sector, we are pleased to announce that performance requirements
were eliminated under Law No. 139-11 of 24 June 2011, thereby bringing the legal regime for free
zones into line with the WTO Agreement on Subsidies and Countervailing Measures.
2.53. Furthermore, during the period under review, the Dominican Republic was a complainant
before the Dispute Settlement Body for the first time.
2.54. Ladies and gentlemen, I would now like to share several additional comments on our foreign
trade.
2.55. The Dominican Republic remains dedicated to liberalizing trade and fulfilling the
commitments it has assumed multilaterally and through bilateral agreements. Accordingly, a 0%
MFN tariff is applied to 54% of tariff lines, with an effective tariff rate of 3.8%, including
agricultural goods.
2.56. In the period under review (2009-2014), Dominican exports grew significantly at an average
rate of 12.4%, reaching US$8,574 million in 2014. This increase was driven by the gradual
liberalization of trade through the signing of free trade agreements.
2.57. The effects of trade liberalization in the country is also evidenced by the rate of growth of
our imports, which rose at an annual nominal rate of 7.4% between 2009 and 2014, to the benefit
of production sectors and consumers alike.
2.58. Currently, the Dominican Republic is party to five trade agreements, involving a total of
49 countries: the Economic Partnership Agreement (EPA) between the European Union and the
CARIFORUM countries; the Free Trade Agreement between the United States, Central America and
the Dominican Republic (CAFTA-DR); the Free Trade Agreement between the Dominican Republic
and Central America; the Free Trade Agreement with the countries of the Caribbean Community
(CARICOM); and the Partial Scope Agreement between the Dominican Republic and Panama. It
should be noted that the most recent agreement, the EPA between the European Union and the
CARIFORUM countries, entered into force on 1 January 2009. At December 2014, the number of
liberalized tariff lines under these agreements was around 6,676.
2.59. In 2014, the Dominican Republic's trade agreement partners accounted for around 82% of
our total exports and 68% of our imports. The most significant trade agreement is the CAFTA-DR,
which accounts for over 50% of total exports and imports. Nonetheless, the country has diversified
its export markets, increasing exports to Europe, Asia, South America and Canada, and gradually
reducing dependency on traditional markets. It is also important to highlight the impact of these
agreements on the momentum of the Dominican economy. For the year 2014, exports represented
2% of the 7.3% increase in GDP.
2.60. Notwithstanding the above, we are convinced that trade agreements do not guarantee
development. Rather, they should be seen as part of a comprehensive strategy for integration in
WT/TPR/M/319 • Dominican Republic
- 11 international markets, which involves major challenges in terms of competitiveness and domestic
productivity.
2.61. As part of our commitment to implementing and, in particular, to making full use of trade
agreements (as catalysts for the creation and expansion of trade, employment generation and
poverty reduction), the Dominican Government has developed various programmes with the
participation of bilateral and multilateral cooperation bodies and agencies, in order to improve
competitiveness and the positioning of our products on the international market, and especially in
countries that are party to such agreements.
2.62. These programmes have had a significant impact on the structure and composition of
exports, with a particular trend towards high value-added goods from agro-industry sectors
(non-traditional and organic products such as coffee, cocoa, bananas, avocados, mangos and
tobacco) and manufactures (medical and pharmaceutical products and equipment, electrical
products, footwear and jewellery).
2.63. As part of the support provided to allow our country to benefit from these agreements,
geographical indications have been requested for 12 Dominican products, which will enable them
to be sold at "Premium" prices in the international market. In turn, this will help improve the
distribution of income along the entire production chain, prevent rural exodus, create business
opportunities in other sectors such as tourism, protect the environment, and provide greater
benefits for consumers, including guaranteed quality and a wider choice.
2.64. However, the review period also saw the erosion of our preferences due to a proliferation of
regional and bilateral agreements involving our competitors.
2.65. While it is true that since 2008, we have not formally initiated any trade negotiation
process, in this period we prioritized the participation of the Dominican Republic in integration
processes within our region. In 2012, our country asked to become a full member of the Central
American Integration System (SICA), a process that was formalized in 2013. Through
CARIFORUM, we have maintained a relationship based on political dialogue, trade and cooperation
with the European Union and the Caribbean. We have become observers in the Pacific Alliance,
and have initiated arrangements with the Secretariat for Central American Economic Integration
(SIECA) and the Latin American Integration Association (LAIA). Maintaining good relations with our
neighbours has been a priority. These relations foster development and progress, and are always
based on respect for each country's sovereignty.
2.66. Furthermore, we have strengthened our negotiating capacity by providing technical training
for our negotiating team, and conducting studies on the impact of potential trade agreements. We
understand that the negotiation of new agreements may enable us to offset erosion, and
simultaneously contribute to the diversification of our markets and effective participation in global
value chains.
2.67. We would like to reiterate the Dominican Republic's commitment to the World Trade
Organization and the multilateral trading system. We have actively participated in the Doha Round
and post-Bali negotiations since the launching of the process in 2001, and hope to contribute to
their conclusion and the achievement of an outcome that fully takes into account the development
dimension.
2.68. What is so significant and innovative about the progress achieved by the
Dominican Republic during the period under review is that we have been able to match our words,
ideas and good intentions with actions and tangible results.
2.69. Yet, it is important to point out that there are other factors which make this a truly key
moment for our country. I am talking, in particular, about that intangible element which is
extremely valuable in a globalized world: trust.
2.70. In the Dominican Republic, we have created a virtuous circle of trust, which is expanding in
all directions: within the country, in our connections with the private sector and civil society, and
in our relations with the rest of the world.
WT/TPR/M/319 • Dominican Republic
- 12 2.71. This circle of trust did not, of course, appear from nowhere. Citizens and domestic and
international industries are always careful to maintain this state of affairs.
2.72. These signs of trust have encouraged foreign investors to strengthen the macroeconomic
stability of our country in a risky and uncertain international market. Consequently, not only have
incoming flows been maintained, but foreign direct investment has also increased. The total
amount of FDI during the period under review almost tripled compared with the period 2002-2007
covered by our previous trade policy review. The Dominican economy receives the largest flow of
direct investment in the entire Caribbean region, and the second greatest in Central America, after
Panama.
2.73. Our Government has succeeded in combining one of the highest economic growth rates in
Latin America and the Caribbean with the widest extension of social rights that the
Dominican Republic has seen so far. Yet, we did not achieve this alone. We have promoted
ongoing dialogue with all sectors of our society. Above all, we have fostered public-private
alliances to make our development sustainable. And if this model is successful in our country and
region we should continue to implement it.
2.74. We are sure that business opportunities are already transcending borders. And regardless of
their size, enterprises are expanding and developing more and more in the direction of global
markets. We are convinced that as our industry and our production sectors grow stronger, more
jobs will be created and the lives of all Dominicans will improve.
2.75. We aware that many challenges lie ahead of us, and we will therefore work to overcome
them. The results achieved in our country and the progress observed at international level confirm
that we are on the right path. We will therefore continue to focus on building a more competitive
country.
WT/TPR/M/319 • Dominican Republic
- 13 3 STATEMENT BY THE DISCUSSANT
3.1. In preparing for this fourth Trade Policy Review of the Dominican Republic, I browsed through
several websites to know more about this beautiful country. I read that in 1492, when Christopher
Columbus sailed from Spain on his first voyage looking for a new trade route to Asia, he
discovered a new continent. In 1496, he founded the first European settlement in the Western
Hemisphere that is the Dominican Republic.
3.2. Five centuries to-date, the Dominican Republic prides itself as being the ninth largest
economy in Latin America and the second largest economy in the Caribbean and Central American
region. The country is primarily an exporter of sugar, coffee, and tobacco, but in recent years, the
service sector has overtaken agriculture as the economy's largest employer, due to growth in
tourism, telecommunications, and free-trade zones manufacturing. Remittances have also helped
build foreign exchange reserves.
3.3. The current account of the Dominican Republic's balance of payments reports a structural
deficit, which has been trending down since 2011 owing in part to the sharp growth in exports.
Nearly half of the Dominican Republic's exports go to the United States, while Haiti, Western
Europe and China are also significant markets. The Dominican Republic is among the top 50
economies on the ease of trading across borders according to the 2015 Doing Business Survey of
the World Bank.
3.4. The growth of the Dominican Republic's economy remained one of the fastest growing in the
region in spite of a slowdown in 2008-2009 because of the global recession. From 2008 to 2014,
the average annual rate reached 4.4%.
3.5. As discussant, I would like to discuss those covered during the review in 2008 and also cite
improvements that happened over time.
3.6. Tariffs remained relatively low with an average MFN rate of 7.8% in 2014. For 54% of the
tariff lines, the rate is zero. In 2014, the average MFN tariff for agricultural products (WTO
definition) was 14.2%, while for manufacturers it was 6%. This is a result of the Dominican
Republic's efforts in trade liberalization including its active participation in the WTO and in many
regional trade agreements. This commitment to an open and fair trade in the multilateral trading
system is best exemplified by the statement of the Vice Minister that "even if we are an island, we
are not isolated".
3.7. During the review period, agriculture continued to decline in relative importance. Its share of
current GDP was 5.6% in 2014, as compared with 6.4% in 2008. The authorities have pointed out
that this is consistent with the general pattern of the economy, where certain sectors, particularly
those involving services, have performed very strongly, outpacing agriculture. Despite its smaller
share of GDP, the importance of the agricultural sector as a generator of employment increased
during the review period. The sector continued to receive support through various measures,
including an average tariff higher than that for the economy as a whole.
3.8. On trade facilitation, I recall that Members back in 2008 had submitted questions regarding
customs procedures and valuation. Over the past six years, the Dominican Republic has adopted
measures to facilitate trade, which included improvement of its risk management systems, the
introduction of a computerized import clearance process and the elimination of certain
authorization requirements.
3.9. Since April 2012, import documents can be submitted by Internet through the Integrated
Customs Management System (SIGA). The SIGA will also include a Single Window for Foreign
Trade (VUCE), which it is planned to introduce gradually and will offer services for goods import,
export and transit procedures. We congratulate the Dominican Republic for this impressive
performance in trade facilitation. As Chair of the Trade Facilitation Preparatory Committee, I take
note of the statement delivered by the Vice Minister that the Dominican Republic is already in the
process of ratifying the Trade Facilitation Agreement and likewise it is also in the stages of setting
up the National Trade Facilitation Committee. We welcome these developments.
WT/TPR/M/319 • Dominican Republic
- 14 3.10. On technical regulations, the
way it drafted and administered
assessment procedures. Under the
must as far as possible be based on
Dominican Republic made substantial changes in 2012 to the
its technical regulations and standards and its conformity
responsibility of the different ministries, technical regulations
national or international standards.
3.11. It would be good to receive updates from the Dominican Republic on this issue since the
new law has not yet been fully implemented, and its implementing rules and regulations have not
yet entered into force.
3.12. On SPS, the Secretariat's report mentioned that principle laws on animal and plant health
are old and antiquated and there is also a duplication of responsibilities of the authorities
concerned in their implementation. Nonetheless, we note that the authorities have indicated that
there are a number of draft legislation or laws to update these SPS standards. Members would
certainly be interested to know progress in this area.
3.13. Free zones continue to play a leading role in the Dominican Republic's trade, accounting for
52% of total exports and contributing 3.2% to the GDP in 2013. During the last review, the
Dominican Republic clarified that the free zone incentive model had been an important instrument
for the promotion of the export sector, contributing to the steady growth of exports, employment
generation and technology transfer.
3.14. In 2013, an important development was the amendment of the free zone legislation to
eliminate export performance requirements, that is, where tariff concessions and tax benefits were
contingent upon the exportation of at least 80% of total production. Local content requirements
were also abolished. Sales on the domestic market of products from free zones are no longer
restricted, but are now subject to an additional "compensatory" tax which, from the initial rate of
2.5%, was increased to its current rate of 3.5% in November 2012.
3.15. The Dominican Republic experienced a boom in foreign direct investment (FDI) during the
period under review. The mining sector was the destination for 21.7% of FDI inflows, surpassed
only by the commerce and industry sectors, which absorbed 24.4% of inward FDI in the period
under review. This is a positive result of its opening up of almost all economic sectors to FDI and
granting of national treatment. Modern policies and laws have also been adopted since 1995 in
areas such as intellectual property, land and environment. And according to the UNCTAD
Investment Policy Review, closing major legal gaps in the investment framework, such as the
enactment of a competition policy, can make the Dominican Republic the best-in-region. However,
the current state of competition policy in the Dominican Republic is an area where greater efforts
are required.
3.16. Since the last review, the Dominican Republic has developed the National Plan for Systemic
Competitiveness. In fact, during this period, all efforts focused on implementing Law No. 42-08,
the preparation of its implementing rules and regulations and the creation of the National
Competition Commission (Pro Competencia).
3.17. In December 2014, the implementing rules and regulations had already been drafted and
put up for public consultations, but they had not yet been finalized and approved. With all the
necessary elements in place, the important thing to do is to get the competition authority up and
running as soon as possible. It would be interesting for the Members to know how the Dominican
Republic intends to move forward on the implementation of its new competition policy and law.
3.18. The power supply crisis in which the Dominican Republic remains immersed constitutes the
main challenge for national economic development. In 2010, six out of every ten Dominican
Republic businessmen believed that the electricity issue was hampering their activities. The
Government also continues to compensate the distribution companies (EDEs) for the operating
deficit resulting from their high levels of energy losses.
3.19. Over the years, a number of plans have been drawn up for the modernization of the energy
subsector. The current Electricity Sector Action Plan lays down various guidelines for the period
2010 to 2015, in particular, the simplification and more flexible application of the tariff system and
the rationalization and targeting of subsidies given to this subsector.
WT/TPR/M/319 • Dominican Republic
- 15 3.20. It would be interesting to monitor how the Plan will eventually play out to improve the
efficiency of distribution, eliminate non-targeted subsidies and underpin its financial viability,
thereby reducing its burden on Government finances. Here, I also take note of what the Vice
Minister said that the Electricity Pact is one of the tripods of the National Development Strategy, a
clear example to address this area.
3.21. Finally, during the last review, it was noted that the Dominican Republic's government
procurement procedures have been modified to comply with the requirements of the CAFTA-DR. As
a result, the process has become progressively more transparent, and most of the country's
government procurement is now conducted on a competitive basis. A few Members naturally
encouraged the Dominican Republic to join the GPA. It would be interesting to hear from the
delegation the views of the Dominican Republic's in response to this topic since the last review.
3.22. In closing, I found this review very interesting and acknowledge the resiliency of the
economy of the Dominican Republic in the face of challenges, both global and domestic.
3.23. I also cannot help but notice some similarities with the Philippines, particularly historical
milestones, such as being under colonial control for the same duration of time, and authoritarian
governments, among other things.
3.24. On a lighter note, the Philippines and the Dominican Republic also share the love for
"chicharón", cigars, and rums made from sugar cane. Earlier, I mentioned about the Dominican
Republic's tourism. Indeed, the Dominican Republic is the most visited destination in the
Caribbean, so I hope I will have a chance to visit their famous beaches one of these days. And
maybe even learn to dance the merengue or bachata.
3.25. Before I start daydreaming, please allow me to thank my good friend H.E. Ambassador Luis
Manuel Piantini for the opportunity to be part of the Dominican Republic's trade policy review. It is
a truly an honour and an excellent learning experience for us. I would also like to wish the head of
delegation, the Honourable César R. Dargam Espaillat, Vice Minister of External Relations, and the
rest of the delegation from the Dominican Republic a successful review.
WT/TPR/M/319 • Dominican Republic
- 16 4 STATEMENTS BY MEMBERS
EUROPEAN UNION
4.1. This is the Dominican Republic's fourth review and I would like to start by noting that the
Dominican Republic seems to be very much moving in the right direction.
4.2. The last review of the Dominican Republic was in 2008. During the years under review, the
country has achieved sustained economic growth, with relatively low inflation rates. The
implementation of consistent fiscal and monetary policies explains the period of sustained
expansion. The EU acknowledges the good macroeconomic management that enabled to
adequately address external shocks. After remarkable GDP growth of 7.3% in 2014, driven by
strong activity in construction, mining, tourism and other services, expansion has continued in the
first quarter of 2015.
4.3. The EU appreciates the objectives set out in the National Development Strategy 2030
providing the key guidelines to the country's medium-and long-term economic policy, including
trade policy. We are fully aware that these policies and measures are not easy to push through,
but we can only encourage the Government to pursue the good work and extend the liberalisation
effort beyond the sectors affected to date.
4.4. A word on our bilateral relationship. The EU is the second trading partner of the Dominican
Republic in terms of total trade exchanges, with position No. 2 in terms of EU imports into the
country, after the United States, and position No. 4 in terms of Dominican Republic exports, after
the United States, Haiti and Canada. The Dominican Republic is a signatory of the Economic
Partnership Agreement between the EU and the CARIFORUM region. The country swiftly ratified
the EPA and is the most advanced one in its implementation, benefitting, as consequence, from
the application of the agreement in the entire Caribbean region.
4.5. Despite these positive aspects, the EU has a number of questions and concerns relating to
Dominican Republic's trade and investment policy making.
4.6. As a general remark, while the legislation of the Dominican Republic is highly advanced as
regards the various aspects of its trade policy, the EU notes some difficulties with the practical
implementation of the existing legislation.
4.7. Turning to the EU questions, let me stress that the issues we raised are considered and
confirmed by EU operators as obstacles to trade. I will list only some of them:
4.8. First of all, Law 173, which regulates the contractual relationship between foreign companies
supplying goods or services to the Dominican Republic and their local distributing agents, is
perceived as a major impediment for the commercial activities of EU companies.
4.9. Secondly, we are concerned by the burdensome sanitary registration procedures in the
Dominican Republic. The procedures are very costly, time consuming and require the provision of
disproportionally high quantity of documents. In April 2015, a Presidential Decree has been issued,
announcing a welcome simplification of the registration processes for pharmaceuticals, the goods
category that until now has faced the highest access barriers into the market. While the details of
that "simplification" have not been publicized yet, the EU wonders why it concerns only
pharmaceutical and if there is an intention to extend the simplification to other areas.
4.10. Thirdly, in EU's view, more efforts are needed to increase the level of the legal security of
the investments in the Dominican Republic.
4.11. Lastly, the EU would like to express its concerns on the fact that the competition authority,
ProCompetencia, is not yet fully operational and, as confirmed by the Dominican authorities in
their replies, is not yet fully capable of assuming any legal action. In this regard, the EU
encourages the Dominican Republic to set up an adequately staffed and independent Competition
authority.
WT/TPR/M/319 • Dominican Republic
- 17 4.12. Let me conclude by thanking the Dominican Republic for the responses to the questions we
have previously submitted in writing.
4.13. On behalf of the EU, I look forward to a constructive exchange of views during this review. I
wish the Dominican Republic delegation the utmost success during its Trade Policy Review.
AUSTRALIA
4.14. Australia and the Dominican Republic enjoy a relatively modest trade relationship, with total
bilateral trade of approximately $A 39 million in 2014. The emerging investment relationship
between our two countries has the potential to grow. Recent growth has been driven by Australian
mining companies, which, as part of their business model, are keen to promote best practice in
sustainable mining.
4.15. Australia welcomes the sustained economic reform agenda adopted by successive
governments and encourages the Dominican Republic to continue to promote economic growth
through its current policy settings, while also retaining a focus on inclusive growth to eradicate
poverty.
4.16. Australia looks forward to continuing to work cooperatively with the Dominican Republic in
forums in which we have a shared interest. This includes the Central American Integration System
(SICA), of which Australia became an extra-territorial observer in 2011. Australia supports the
trade agenda of SICA and its work towards closer regional economic integration.
4.17. Australia is disappointed the Dominican Republic is challenging Australia's tobacco plain
packaging measure in WTO dispute settlement proceedings. Australia has implemented tobacco
plain packaging as a legitimate public health measure. WTO Members have the right to take
measures for the protection of public health.
4.18. The Dominican Republic stands to benefit considerably from reducing the costs of, and
barriers to, trade. A significant step toward this goal would be implementation of the Trade
Facilitation Agreement. We encourage the Dominican Republic to expedite its domestic ratification
and implementation processes.
4.19. Australia is committed to assisting developing and least developed Members implement
Trade Facilitation Agreement provisions. In addition to the $A 6 million Australia has committed to
the World Bank's Trade Facilitation Support Program, we have recently contributed $A 1 million to
the WTO's Trade Facilitation Agreement Facility. These contributions, along with our bilateral trade
facilitation programs and the contributions by other donor Members and Annex D organizations,
should ensure that Members, such as the Dominican Republic, have any assistance they require to
fully implement the Trade Facilitation Agreement.
4.20. Australia submitted written questions on a number of issues, including foreign investment,
technical regulations and agricultural policies. We thank the Dominican Republic for its responses,
which we will examine alongside information gathered from this meeting.
CANADA
4.21. In many respects, this is a good news story because, although the Dominican Republic was
subjected to the same economic storms that ravaged others in the Caribbean region in 2008, it
has proven to be very resilient, and is clearly on a growth trajectory. Through a package of reform
measures covering fiscal, monetary and investment policy, by most all measures the economy of
the Dominican Republic is in a better place than it was in 2008.
4.22. Consider the following: in the period 2008-2014, the Government of the Dominican Republic
reported that real GDP grew at an annual rate of 4.3%, the 7th highest on average for Latin
America, per capita GDP increased from US$5,180 in 2008 to US$6,480 in 2014. Possibly more
importantly, the number of people living below the poverty line declined from 44.2% in 2008 to
35.8% in 2014, according to the Ministry of Economy, Planning and Development.
WT/TPR/M/319 • Dominican Republic
- 18 4.23. As highlighted in the Secretariat report, in the period under review, the Dominican Republic
was the recipient of considerable Foreign Direct Investment (FDI) at an average of US$2.3 billion
per year, with a spike in investment to US$3.1 billion in 2012 (UNCTAD). And the Dominican
Republic has benefitted from this inflow of foreign investment in increasing its exports, in
particular gold exports. Canada is among the top investors according to the Dominican Central
Bank, with cumulative inflows of FDI from Canada amounting to US$5.5 billion over the period
1993-2013. Canadian business is active, primarily in the mining sector, but also in the financial,
manufacturing and tourism sectors. However, although the Government of the Dominican Republic
introduced a new "One-Stop Investment Facility" (VUI) in 2012 to streamline the formalities for
FDI, and also has several agreements on "reciprocal investment promotion and protection", given
the size of Canadian and other major country investment flows, we would encourage the
Government to continue to improve its legal and regulatory investment regime to include a robust
dispute settlement mechanism, consistent with international norms. Indeed, the Secretariat report
notes the presence of investment restrictions in several sectors, a theme that Canada and several
other Members have flagged in written questions.
4.24. Further, recent international reports such as the World Bank's Ease of Doing Business 2014
ranked the Dominican Republic 84 to 189 countries overall, with a ranking of 113 for starting a
business, 119 for obtaining electricity and 158 for resolving insolvency. Similarly, the World
Economic Forum's Competitiveness Index ranked the Dominican Republic 101th of 144 countries in
2014-15, compared to 98th of 134 countries in 2008. And Transparency International, in its Global
Corruption Perception Index of 2014, ranked the Dominican Republic 115 of 175 countries. This
would indicate that although many important reforms have been introduced, it will be important
for attracting future investment to keep up the pace of these reforms.
4.25. Rightly, alongside investment, the Dominican Government sees trade reform as part of the
larger picture of development. We are studying with close attention the National Development
Strategy to 2030. Indeed, both the Secretariat and Government reports underline the importance
of this strategy in providing key guidelines for the country's medium-and long term economic
policy, including trade policy. We share the interest of other Members in learning more about this
strategy, particularly as it relates to trade policy.
4.26. The National Development Strategy's three areas of focus, education, electricity and fiscal
reform, will no doubt contribute to greater competitiveness. Student enrolment is already
increasing significantly. There is widespread recognition that a cheap source of energy is essential
for improving competitiveness, thus energy security is an important component of any
competitiveness plan. We encourage the Dominican Republic to continue its search for renewable
energy solutions that will also contribute to preserving the environment on which its tourism sector
is so heavily dependent. The creation of a Ministry of Energy and Mining in 2013 should no doubt
contribute to streamlining this process. While the recent fall in international oil prices has created a
"breathing space" for economies such as the Dominican Republic, which rely heavily on carbon
based energy production, we were very pleased to note that the Dominican Republic has prudently
settled its Petro Caribe debt of just over US$4 billion with the Venezuelan state oil company,
ahead of schedule.
4.27. Although the Dominican Republic does not participate in the WTO Agreement on
Government Procurement, procedures have been modified to comply with the requirements of the
Dominican Republic-Central America FTA (DR-CAFTA), its most important trade agreement. That
said, there are a number of regulations such as "small business set asides" and public works
contracts that favour nationals over foreign bidders. It is no surprise, therefore that the subject of
government procurement has generated considerable interest and several questions from
Members, including Canada.
4.28. In conclusion, we congratulate the Dominican Republic for its capacity to move forward
through a period of difficult economic transitions, regionally and globally. We have submitted
several questions in the areas I have highlighted, including government procurement policies,
incentives for foreign direct investment and restrictions on foreign direct investment in certain
sectors. We look forward to further engaging on these issues and others throughout our meetings
this week.
WT/TPR/M/319 • Dominican Republic
- 19 UNITED STATES
4.29. The United States enjoys a close and growing trade and investment relationship with the
Dominican Republic. We are the Dominican Republic's largest trading partner, and the Dominican
Republic is the largest trading partner to the U.S. in the Caribbean Basin Region, with almost
US$12.5 billion in two-way trade in goods in 2014. In 2014, U.S. goods exports to the Dominican
Republic were US$8 billion, up 10.7% from the previous year. Similarly, the Dominican Republic
exported US$4.5 billion in goods to the U.S. last year, up 6.1% from 2013.
4.30. The Dominican Republic's global trade regime and our bilateral trade relationship have
undergone substantial and positive changes through the Dominican Republic's implementation of
the Dominican Republic–Central America–United States Free Trade Agreement (DR-CAFTA)
beginning in 2007. The Dominican Republic enacted substantial changes to its legislation as well as
regulatory
modifications,
particularly
in
the
areas
of
government
procurement,
telecommunications, intellectual property rights, and customs procedures. Both the Secretariat's
and the Government's reports highlight the Dominican Republic's medium and long-term economic
and trade policy. The United States particularly commends the Dominican Republic's focus on
developing a regulatory environment that ensures a pro-competitive business climate, as well as
the close coordination among relevant government ministries and agencies in the formulation and
implementation of trade policies.
4.31. Further, both the Secretariat and the Government report that since the last Trade Policy
Review in 2008, the Dominican Republic has achieved progress in matters of trade facilitation, and
this was highlighted in the Vice Minister's statement today. It has strengthened its risk
management systems, introduced a computerized import clearance process, and eliminated
particular authorization requirements. We are pleased that the Dominican Republic has
demonstrated a firm commitment to the WTO Trade Facilitation Agreement, submitting its
schedule A commitments, making progress in several TFA substantive areas and stating its
intention to secure the necessary domestic authorization to ratify the TFA before MC10 in Nairobi.
4.32. While the Unites States applauds these positive efforts, we have concerns with certain
aspects of the Dominican Republic's trade regime. For example, with respect to trade in agriculture
we are very concerned about lack of transparency and delays in issuance of import licenses. We
also have concerns that "no-objection permits" issued by the Agriculture Ministry and required for
animals and agriculture products, are not exclusively based on SPS grounds, but may be
influenced by economic considerations.
4.33. Regarding intellectual property rights and developments since the last review period, we
applaud the Dominican Republic's 2011 ratification of the WIPO Trademark Law Treaty, which
streamlined procedures for registering trademarks. We also congratulate the Dominican Republic
for approving the "National Strategy on Intellectual Property in the Dominican Republic" in 2013 in
efforts to integrate intellectual property into the country's public policies and development plans.
While we welcome these actions by the Dominican Republic and its recognition of the importance
of protecting intellectual property rights, we remain concerned about shortcomings in practice and
enforcement, such as the extremely long delays for the review of patent applications and
administrative delays in the marketing approval process for pharmaceutical products. We are also
concerned by the widespread availability of pirated and counterfeit goods, particularly by the
prevalence of broadcast signal piracy. We have submitted several specific questions and look
forward to learning more about enforcement procedures and actions taken by the relevant
government agencies.
4.34. Lastly, we note that, as in prior reviews and as highlighted by Ambassador Conejos,
inefficiencies in the energy sector continue to be a primary challenge to the Dominican economy.
Reliance on imported fossil fuels to generate electricity, subsidized consumption, and price controls
burden government finances and dis-incentivize investment. We encourage the Dominican
Republic to take steps to address this longstanding difficulty, while respecting international trade
and investment commitments.
4.35. In conclusion, the United States will continue to work closely with the Dominican Republic
bilaterally, and as a value partner here at the WTO.
WT/TPR/M/319 • Dominican Republic
- 20 COLOMBIA
4.36. During the period under review, the Dominican economy recorded more stable economic
growth than in the previous period, in spite of the global economic crisis. As noted in the
Secretariat report, this can be explained by the appropriate implementation of the structural
adjustment programme following the agreement with the IMF in 2009. The programme included
various reforms in the electricity, financial and monetary sectors, and the strengthening of public
financial management.
4.37. Foreign trade has been dynamic, with a steady increase in imports and exports of goods and
services. Despite the global crisis, tourism underwent only a slight decline in 2009, which was
reversed the following year, and the figures continue to be positive. Tourism is the leading
category of services exports and continues to be the main source of foreign exchange, accounting
for 9.2% of GDP and 6.3% of employment. Regarding exports, the United States remains the
principal destination of goods exports, although its share has decreased slightly. Exports to other
destinations such as Haiti and Canada have risen significantly.
4.38. Nevertheless, the Dominican Republic faces various challenges which affect trade to a
certain extent. As underscored in the Secretariat report and by Ambassador Conejos, one area in
which greater efforts are required is competition policy. A competition authority was established in
2009. However, in December 2014, it was still not operational. The competition authority has
limited powers under the current legislation, and with no implementing regulations to the Law,
there is no monitoring of unfair competition.
4.39. Another substantial challenge, highlighted by the Vice-Minister, Ambassador Conejos and
several speakers before me, is the development of a sustainable electricity sector. Electricity
supply is in a critical state. There are significant electricity losses and energy rationing is affecting
the country's productivity and competitiveness. The Dominican Republic is implementing various
programmes to offset the shortages in the electricity sector, yet, as mentioned in the Secretariat
report, the authorities believe that more extensive future investment is required. This could be
achieved by further easing access to the electricity market, which the country has not changed
since 2008, in order to encourage greater participation of and the channelling of more resources
from the private sector.
4.40. Lastly, we acknowledge the efforts made by the Dominican Republic to fulfil its obligations
and improve the multilateral trading system. This was demonstrated by the fact that one year ago,
as mentioned by the Vice-Minister, the country notified the Preparatory Committee of Category A
commitments under the Agreement on Trade Facilitation and is making headway with the
ratification procedures.
4.41. We also emphasize that the Dominican Republic has close ties with its preferential trade
agreement partners, which account for around 62% of total trade. Our delegation therefore asked
several questions on the steps and procedures for the negotiation, conclusion and implementation
of a trade agreement, which has been of interest to my country for several years.
4.42. We encourage the Dominican Republic to continue to play an active role in the WTO,
particularly in the Doha Round negotiations, and wish it every success with its fourth trade policy
review.
BRAZIL
4.43. It is a matter of great satisfaction for Brazil to take part in the fourth TPR of the Dominican
Republic, a country with which Brazil has maintained friendly relations for more than 100 years.
4.44. Brazil notes with satisfaction that the Dominican Republic quickly overcame the negative
effects of the global financial crisis. In the period under review, the country's real gross domestic
product (GDP) grew at an average annual rate of 4.4%, and IMF projections show that the
economic expansion will continue at 4.5% annually in the biennium 2015-2016.
4.45. Inflation was kept under control, in parallel with very important developments in the social
area including fundamental social inclusion: according to the Secretariat's report, unemployment is
WT/TPR/M/319 • Dominican Republic
- 21 expected to continue trending downwards, income distribution has improved and extreme poverty
is declining, from 12% in 2008 to 9% in 2014. That is certainly impressive.
4.46. Brazil congratulates the Dominican people for the economic and social results achieved in
spite of an unfavourable international environment that prevailed during the period and is
confident that the vitality shown by the country will soon bear additional positive effects also on
the fiscal front.
4.47. Brazil would like also to congratulate the Dominican Republic for the various measures
adopted during the period under review to facilitate trade. These include improvements in the
country's risk management system, the introduction of a computerized import clearance process
and the elimination of various authorization requirements. SIGA, the Integrated Customs
Management System, and the complementary Authorized Economic Operators regime will certainly
contribute to make customs processes less costly and more time saving.
4.48. Turning now to our bilateral ties, let me stress the importance that Brazil attaches to our
relations with the Dominican Republic, reflected, among others, by the visits of high level officials
from both countries. Former President Leonel Fernández visited Brazil more than once since 2008
and President Danilo Medina has also been in Brazil, first as candidate in 2011, and then as
President, in 2012. Ambassador Mauro Vieira, our Minister of Foreign Affairs, has just returned
from a very productive visit to the Dominican Republic in June 2015.
4.49. Brazil is a major partner of the Dominican Republic in investment and trade. Regarding
investment, Brazil was the third source of foreign direct investment in the Dominican Republic in
2012, with a total amount of US$1.3 billion, in services sectors such as banking and air transport,
and in the steel, beverage and shoes industries. These investments demonstrate our willingness to
take long-term commitments in the Dominican Republic.
4.50. Bilateral trade flows in the period 2008-2014 reached a record US$508 million in 2012 and,
after a 20% decrease for 2014, is growing again, with very positive estimates for 2015: trade
grew 12.7% from January to May this year.
4.51. Brazil recognizes that the trade balance with the Dominican Republic has been historically
favourable to Brazil. But it is worth noting that the Brazilian imports consist mostly of
industrialized goods such as pharmaceutical products, electric machinery, and precision
instruments. Also, if we consider the last 10 years, Brazilian imports from the Dominican Republic
showed strong growth of 526%, increasing from US$3.5 million in 2005 to US$21.6 million in
2014.
4.52. Even though we recognize that in general figures of bilateral trade are still modest, leaving
much room for expansion, we would like to reiterate our disposition and willingness to continue to
work in a collaborative manner so that further expansion may accelerate and take place soon.
MEXICO
4.53. We could not agree more with our distinguished discussant, Ambassador Conejos, and the
delegations that spoke before me, that the Dominican Republic has made great progress since the
last review of its trade policy, and that, on the whole, it is on the right track.
4.54. We are pleased to note that the country has coped well with the crisis since 2009, and that
its economy grew at the not insignificant rate of 4.4% between 2008 and 2014, which had a
positive impact on employment. There is no doubt that its fiscal and monetary policies were
properly implemented. However, despite the fact that per capita income has remained stable and
levels of extreme poverty have been reduced, 41% of the country's population continue to live
below the poverty line. As is the case for many other Latin American economies, poverty reduction
remains one of the Dominican Republic's greatest challenges. We therefore have high hopes for
the work, reforms and initiatives being carried out to this end by our Government, as outlined by
Vice-Minister César Dargam, whom we thank for his excellent presentation.
4.55. We also agree that the issues of the country's electricity supply and its heavy reliance on
imported fossil fuels need to be addressed promptly. We hope that all policies aimed at tackling
WT/TPR/M/319 • Dominican Republic
- 22 these problems, including the recent plans to convert the Dominican Republic's thermal power
stations, have the desired effect.
4.56. Another challenge that we believe is significant is the strengthening of competition policy.
Although a competition authority was created in 2009, it did not become full operational until
December 2014. To support implementation of the law and the presence of an authority with full
powers, corresponding regulations need to be issued. Mexico would like to know what action the
Dominican Government plans to take to address this delay.
4.57. With respect to sectoral policies, we also note that the sectors that contribute the most to
GDP are services, which accounted for 62.3% in 2014, with very good performance of the financial
system despite its high degree of concentration, communications, and tourism, which continues to
provide a large share of jobs and is the second largest source of hard currency in the country.
However, the Dominican Republic has lost some of its international competitiveness in the services
sector and we hope that this will be revived with the implementation of the National Systemic
Competitiveness Plan and the National Development Strategy.
4.58. In the trade sphere, we note the implementation of numerous trade facilitation measures.
The Dominican Republic is therefore taking appropriate action to apply the provisions of the
Trade Facilitation Agreement. In this connection, we also highlight the introduction of a pilot
programme to establish the Single Window for Foreign Trade. We hope that this programme will
be successful and that it will lead to the permanent establishment of the Single Window.
4.59. As regards tariff policy, the Dominican Republic has a commendable, relatively low average
MFN applied tariff, and 54% of its tariff lines are zero-rated, as mentioned earlier. Nonetheless, we
would like to point out that it also applies MFN tariffs higher than the bound rates on 63 tariff lines
that include certain agricultural products.
4.60. On technical regulations, we note the changes made in 2012 to the way in which the
Dominican Republic drafts and administers its technical regulations and standards and its
conformity assessment procedures. Mexico would like be informed as to when the new law and the
corresponding regulations will fully enter into force.
4.61. We would also like to receive further information on the legislative changes planned with
regard to sanitary and phytosanitary measures, and on the responsibilities of the authorities
involved.
4.62. I would like to conclude by thanking the Dominican Government for its responses to the
questions raised by my delegation, which we shall examine carefully, and by drawing attention to
the active role played by the delegation of the Dominican Republic, led by Ambassador Piantini, in
the work of this Organization. We wish the entire delegation here the best of success in this trade
policy review. Thank you.
COSTA RICA
4.63. On behalf of my delegation, I would like to acknowledge the efforts made by the
Dominican Republic during the period under review to successfully withstand the global financial
crisis and strengthen its economy, by means of an open trade policy and the implementation of
the efficient fiscal reforms set out in the National Development Strategy 2030.
4.64. The Dominican Republic is Costa Rica's main trading partner in the Caribbean. Over the last
decade, bilateral trade has grown at an average rate of 14.2% and this trend has positioned the
Dominican market as the main destination of Costa Rican exports in the Caribbean islands.
Furthermore, imports from the Dominican Republic have increased by 15% per year. In addition to
the free trade agreement between the Dominican Republic and Central America, we also share the
benefits and commitments under the CAFTA-DR.
4.65. The Dominican Republic has used its strategic position in the Caribbean Sea to strengthen
its economy, thus significantly boosting its services sector, in particular tourism, communications
and logistics. It has also wisely promoted foreign investment by facilitating the establishment of
enterprises and creating a favourable business climate, particularly though the implementation of
WT/TPR/M/319 • Dominican Republic
- 23 the Investment Single Window. In the same vein, the country has made considerable efforts to
simplify procedures and reduce time and trade costs in customs transactions for physical persons
and enterprises. However, there is still a long way to go, especially in terms of the pending entry
into operation of the Single Window for Foreign Trade (VUCE). We hope that the
Dominican Republic will strengthen these actions by promptly adopting the Agreement on
Trade Facilitation.
4.66. On the other hand, we understand the challenges facing the Dominican economy. The
free-zone regime, for example, which is the main programme for export promotion, has
experienced a minor slowdown in recent years, despite the increase in the number of enterprises,
jobs and investments. Micro, small and medium-sized enterprises require greater attention,
particularly regarding the implementation of the funds established by law to support and finance
them. The country's overriding challenge is, undoubtedly, generating electricity and meeting
energy demands. In this regard, we note with interest the role that the private sector could play in
strengthening this sector through public-private alliances, thereby contributing to the
competitiveness of private enterprises. We would like further information on the initiatives being
carried out to generate renewable energy and on how they can support the private sector and
foster foreign investment in this area.
4.67. Lastly, we would like to thank the Dominican Republic for its replies to our previous
questions, which will be examined in detail in our capital.
GUATEMALA
4.68. Historically, Guatemala and the Dominican Republic have maintained a very close
relationship, which is based on strong bonds of friendship and cooperation in a wide variety of
areas on our bilateral and regional agenda. This was evidenced by the full incorporation of the
Dominican Republic into the Central American Integration System (SICA). In the early 1990s, the
Dominican Republic joined SICA as an observer. In 2003, it acquired the status of Associate State,
and in June 2013, it was admitted as a SICA Member State. This process was paramount for
strengthening regional integration and collectively establishing social policies at regional level, in
addition to programmes and projects aimed at improving living conditions for the citizens of our
countries.
4.69. The Dominican Republic's full SICA membership has also been very important in enhancing
our close trade relations. These are governed by the Free Trade Agreement between the
Dominican Republic and Central America, which has been in force since the year 2000, and by the
Free Trade Agreement between the United States, Central America and the Dominican Republic
(CAFTA-DR), which entered into force for Guatemala in July 2006.
4.70. Both agreements have been significantly beneficial and have supported the strong and
sustained growth of our trade. They have also helped reduce transaction costs, create greater
legal certainty for investment, and consolidate efforts to achieve greater diversification and
continuous improvement of the quality of regional goods and services.
4.71. Between 2001 and 2013, the trade balance between Guatemala and the Dominican Republic
recorded an average annual increase of over 20%, climbing from a total of US$27.95 million in
2001 to US$253.76 million in 2013. According to the figures for 2014, Guatemala's main exports
to the Dominican Republic were detergent and soap, pharmaceutical products, sugars and sugar
confectionery, and perfumery, plastics and plastic products. Guatemala's main imports from the
Dominican Republic are petroleum derivatives, pharmaceutical products and plastics and plastic
products.
4.72. As regards the trade policy review under examination today, we note the strong growth of
Dominican exports. As indicated in the Secretariat report, exports increased at an average annual
rate of 12.4% during the period 2009-2014. We also greatly welcome the implementation of the
National Development Strategy 2030, as according to the report, it promotes continuous
interaction between the government agencies dealing with trade issues, and therefore fosters and
facilitates the development of harmonized trade policies.
WT/TPR/M/319 • Dominican Republic
- 24 4.73. Other significant positive aspects worthy of mention are the implementation of various trade
facilitation measures such as the integration of the Single Window for Foreign Trade (VUCE) and
the successful strategy developed to attract foreign direct investment. Yet, we note that the
Dominican Republic faces short-term challenges such as moving forward with the modernization of
the electricity sector and continuing efforts to diversify exports.
4.74. We take this opportunity to thank the Dominican Republic for its responses to the questions
raised by Guatemala. However, we note that one question has not been answered. We would very
much appreciate it if further information could be provided in this regard. Although the issue raised
is not mentioned explicitly in the Secretariat report, we believe that it concerns a trade
policy-related matter.
4.75. We recognize the efforts made by the Dominican Republic during the review period and
hope that the delegation representing the country today will successfully conclude this fourth trade
policy review.
REPUBLIC OF KOREA
4.76. I am pleased to note that Korea and the Dominican Republic have expanded their trade
relations over the years, with bilateral trade reaching US$348 million in 2014. With respect to FDI,
Korea's investment to the Dominican Republic amounted to US$4.2 million in 2014. Taking these
numbers into account, Korea indeed hopes that its economic partnership with the Dominican
Republic will continue to grow and develop in the future.
4.77. Turning to the Dominican economy's overall performance, I wish to note that, as the
Secretariat report mentioned, it has been successful in overcoming the global crisis. Following the
financial crisis, the Government was quick to respond with the necessary fiscal and monetary
policies to stabilize the economy. Accordingly, the Dominican economy grew rapidly during the
review period as the average annual growth rate reached 4.4%, per capita income grew steadily
and inward FDI increased nearly 250% compared to the previous review period.
4.78. In particular, Korea would like to commend the Dominican Republic for remaining open to
the multilateral trading system instead of falling back on protectionism, a "temptation" that history
tells us has dire consequences. Specifically, trade flows of goods and services accounted for
approximately two thirds of GDP and tariffs remained relatively low, with an average MFN rate of
7.8% in 2014.
4.79. We wish to note that the Dominican open economy has been supplemented by efforts to
facilitate trade including the improvement of its risk management systems, the introduction of a
computerized import clearance process and the elimination of some authorization requirements. It
is clear that the Dominican Republic has been paving the road for further future success and it will
be a pleasure for the entire WTO body to see such efforts bear fruits.
4.80. Korea also appreciates the procedural reforms undertaken by the Government of the
Dominican Republic to improve the management of procurement operations. However, we find
there is still progress to be made towards enhancing transparency and promoting competition.
According to the current regulations, foreign companies may take part in public works contracts
only if they are associated with a Dominican national or if their capital is jointly held. Although the
Dominican Republic is not a signatory to the GPA, we encourage it to adopt international standards
so as to ensure fair and transparent procurement practices.
4.81. It is also our hope that the Dominican Republic will continue to actively participate in helping
not only strengthen the WTO multilateral trading system as a whole, but also advance the DDA
negotiations. With this, I would like to conclude by expressing my sincere appreciation to the
Dominican delegation for its hard work and wish the Dominican Republic every success in its TPR.
TRINIDAD AND TOBAGO
4.82. My delegation is pleased to participate in this the fourth Trade Policy Review of the
Dominican Republic, and at the outset, wishes to recognize Ambassador Piantini's active
participation in the work of the WTO in his role as Permanent Representative. In this context, I
WT/TPR/M/319 • Dominican Republic
- 25 make special mention of his Chairmanship of the Informal Group of Developing Countries (IGDC).
During his Chairmanship of the Group, Ambassador Piantini has, inter alia, allowed the IGDC to be
a forum for discussion on a range of issues that are pertinent to developing countries.
4.83. My delegation also acknowledges the constructive role our colleagues from the Dominican
Republic play in seeking and securing the interests of small, vulnerable economies in the DDA
negotiations.
4.84. I turn now to the Dominican Republic's impressive macroeconomic performance during the
period under review. While the economies of several WTO Members were severely impacted by the
global economic crisis, the Dominican Republic's economy experienced rapid growth during the
period 2008-2014. As the Secretariat notes in its report, "the growth achieved in the period under
review was impressive given the problematic international backdrop, which included a global
financial crisis with adverse effects on exports".
4.85. However, my delegation has noted that notwithstanding its impressive growth and a per
capita GDP exceeding US$6,000, the Dominican Republic is still plagued by a relatively high rate of
poverty and inequality. The WTO Secretariat quotes World Bank statistics which indicate that
41.1% of the Dominican Republic's population is living below the poverty line. With this in mind, it
is our hope that the trade, investment and other development policies contained in the National
Development Strategy 2030 strengthen the basis for lifting those currently living in poverty out of
it and thus be conducive to the attainment of the Sustainable Development Goals, shortly to be
launched in the fall of this year.
4.86. Trinidad and Tobago took positive note of the fact that for the Government of the Dominican
Republic "revitalizing the agricultural sector is necessary in order to drive growth and alleviate
poverty". It is commendable that in spite of the sector's relatively small share of GDP, the
Dominican Republic, having recognized agriculture's importance as a generator of employment,
particularly in the rural communities, has prioritized improving the agriculture sector's productivity
and competitiveness, as a key component of its trade and development strategy.
4.87. Also noteworthy is the major contribution of the services sectors to the country's GDP. Over
the years, tourism has also grown to become one of the Dominican Republic's most important
sources of income.
4.88. My delegation hopes that the role that services, including e-commerce, can play in boosting
the contribution of the agriculture sector to national income, both in terms of value and volume,
would not be overlooked.
4.89. In relation to its trade policies and practices, one cannot help but be impressed by the fact
that according to the World Bank's "Doing Business" global indicator for the 2014-2015 period, the
Dominican Republic earned a high score under the "Trading Across Borders" heading. Here it ranks
24th out of 189 countries considered. It ranks second in Latin America to Panama. This enviable
performance is no doubt due in part to the range of measures implemented during the period
under review to upgrade formalities and procedures relating to border customs management and
trade facilitation.
4.90. Complementing these trade-facilitating measures is a regime of relatively low tariffs.
4.91. Trinidad and Tobago welcomes and congratulates the Dominican Republic in its efforts
during the period under review, to satisfy its WTO obligations, in particular, fulfilling its
notifications Requirements. The Secretariat notes that during the period 2008-2014, the
Dominican Republic made considerable improvements in terms of notification. However, the
Secretariat has also indicated that in spite of this improvement, in January 2015, a number of
notifications remained pending. With this in mind, my delegation wishes to encourage the
Dominican Republic to intensify its efforts at notification, since notifications are an important
means to ensure the transparency and predictability of its trade regime.
4.92. Another issue of concern for my delegation relates to sanitary and phytosanitary measures.
We've noted the Secretariat's observation that the principal laws on animal and plant health are
outdated and that there is a duplication of responsibilities of each of the authorities concerned. We
WT/TPR/M/319 • Dominican Republic
- 26 hope that the Dominican Republic would make every effort to implement new laws and in the
process, rationalize the performance of these important functions through the removal of
unnecessary and costly bureaucratic measures.
4.93. Turning briefly to our bilateral and economic relations, diplomatic relations between our two
countries were established in 1968. Our countries enjoy strong trade and economic relations; this
relationship is strengthened by the existence of the Trinidad and Tobago/Dominican Republic
Chamber of Commerce, which was established in 1998. Since then, Trinidad and Tobago has a
favourable balance of trade with the Dominican Republic with our top exports including liquefied
natural gas and gas oil. In the recent past, both our countries expressed interest in strengthening
economic and political ties.
4.94. My delegation also noted with interest the Dominican Republic's stated commitment to
deepening its economic integration with the countries of the Caribbean Region, and the
formulation in October 2014, of a Joint Investment Promotion Strategy with Haiti, to this end. The
aim of this initiative must be highlighted: to attract FDI to Haiti and the Dominican Republic and
increase the number, value and socio-economic impact of foreign direct investment projects in
both countries.
4.95. It is with this in mind that my delegation hopes that other branches of the Government of
the Dominican Republic would show flexibility in another important sphere, in order to safeguard
the socio-economic interests of individuals born in the Dominican Republic of Haitian descent.
4.96. In conclusion, I wish to once again to commend Ambassador Piantini and his team here in
Geneva for their excellent work and I wish the Dominican Republic a successful trade policy
review.
ECUADOR
4.97. Ecuador is greatly interested in this trade policy review and welcomes the fact that the
Dominican economy grew at an average annual rate of 4.4% in the period 2008-2014, during
which the lowering of inflation was especially significant as a result of policies based on an
inflation-targeting scheme implemented by the Government through the Central Bank.
4.98. Ecuador congratulates the Dominican Government for its appropriate use of monetary,
exchange-rate and financial policies to stabilize prices, which, together with sound management of
public finances and improved tax administration, made it possible to maintain a remarkably low
rate of inflation in 2014.
4.99. In addition, the Government has also implemented social policies that complement its trade
policy, as evidenced by its public investment projects and the strengthening of the social security
network.
4.100. It is also important to mention the role played by family remittances from Dominican
nationals abroad, which are a source of economic support for the country.
4.101. Ecuador welcomes the measures adopted by the Dominican Republic. Indeed, as
highlighted in the Secretariat report, the country has an open economy with trade flows of goods
and services accounting for around two thirds of GDP. Furthermore, it has a surplus on the balance
of trade in services, which has been growing since 2010, owing primarily to an increase in tourism
income, which has offset outgoings in respect of freight and insurance.
4.102. Ecuador also welcomes the medium- and long-term implementation of the
Dominican Republic's National Development Strategy 2030, which contains important economic
and trade policy guidelines aimed, among other things, at promoting export development;
attracting employment-generating investment; monitoring the country's trade agreements; and
developing a regulatory framework that ensures a pro-competitive business climate.
4.103. Turning to trade facilitation, my country acknowledges the progress achieved in recent
years, with the Government adopting rules to improve risk management, introducing a
computerized import clearance process and doing away with certain authorization requirements.
WT/TPR/M/319 • Dominican Republic
- 27 These measures will enable the Dominican Republic to simplify a whole number of procedures.
Both reports indicate that, since April 2012, documents have to be submitted electronically
through the Integrated Customs Management System (SIGA), which will also include a Single
Window for Foreign Trade. Another point worthy of mention is that the Dominican Republic notified
the Category A measures of the WTO Trade Facilitation Agreement a year ago.
4.104. As indicated in the Secretariat report, one of the programmes aimed at boosting the
country's export sector is Proindustria, which seeks to develop Dominican industry. My delegation
commends the Dominican Government for its trade promotion efforts.
4.105. I should like to emphasize that, in a move to establish stronger and closer trade relations
for their mutual benefit, the Governments of the Dominican Republic and Ecuador have agreed to
set up a Joint Feasibility Study Group with a view to deepening economic and trade relations. The
conclusions reached by the Group will enable the authorities of both governments to reach a
decision on signing a trade agreement covering issues such as investment promotion and greater
cooperation in all areas of interest to the two parties.
4.106. To conclude, we thank the delegation of the Dominican Republic for its replies to the
questions we submitted through the Secretariat on certain aspects of the country's trade policy,
which will provide important inputs for strengthening bilateral relations in the area of foreign
trade.
EL SALVADOR
4.107. We are pleased to note from the Secretariat report that the Dominican Republic has been
relatively successful in overcoming the global crisis, that the economy began to recover in 2010
thanks to expansionary monetary and fiscal policies and that, overall, the economy grew rapidly,
at an average annual rate of 4.4%, during the period 2008-2014. Fiscal policy was more restrictive
after 2012 and a tax reform was introduced, which helped to contain the fiscal deficit. Although
the current account of the balance of payments reports a structural deficit, this has been trending
downwards since 2011, partly as a result of sharp export growth.
4.108. We have also noted the Dominican Government's efforts over the past six years, during
which it adopted trade facilitation measures including the improvement of its risk management
systems, the introduction of a computerized import clearance process and the elimination of
certain authorization requirements. Since April 2012, import documents have to be submitted
electronically through the Integrated Customs Management System (SIGA), which will also
comprise a Single Window for Foreign Trade. The latter is due to be introduced gradually and will
offer services for goods import, export and transit procedures.
4.109. Although the country still faces specific challenges, such as putting its competition
regulatory authority into operation, we take a very favourable overall view of the performance and
openness of the Dominican economy, guided by its National Development Strategy 2030, which
clearly defines its policy guidelines. We also emphasize the close coordination among the various
government authorities, which will undoubtedly help the country achieve its objectives and
contribute to the effectiveness of its trade policy measures.
4.110. As regards the country's sectoral policies, we were interested to note the programme
aimed at revitalizing the agricultural sector, which is the primary source of employment in rural
areas, where most of the country's poor households are located. Although its share of GDP has
declined because of the emergence and growth of other sectors, the agricultural sector has also
expanded and is one of the Dominican Government's priorities under the National Development
Strategy 2030. As indicated in the Government report, the United Nations Food and Agriculture
Organization (FAO) has singled out this programme as a model to be replicated in other countries.
This is what prompted our interest and our wish to express well deserved congratulations to the
Dominican Government through its distinguished representatives.
4.111. On a bilateral level, El Salvador has maintained close trade and cooperation links with the
Dominican Republic for several decades. Those historical ties were strengthened by the entry into
force of the free trade agreement between the two countries in 2001. Both our countries are
WT/TPR/M/319 • Dominican Republic
- 28 members of the Central American Integration System (SICA) and share common foreign policy
objectives such as respect for democracy, consolidation of peace and regional security.
4.112. In trade terms, the Dominican Republic ranks third among El Salvador's export
destinations, after the United States and Central America. It also ranks high among El Salvador's
suppliers of goods, which shows the country's commercial importance.
4.113. Total bilateral trade amounted to US$91 million in 2014. El Salvador's exports to the
Dominican Republic mainly consist of plastic products, juices and nectars, knitted garments,
aluminium products, pharmaceuticals and confectionery, while Dominican exports to El Salvador
chiefly include oils, propane gas, alkyd resins, and paper and paperboard products.
4.114. Just like El Salvador, the Dominican Republic has been taking an active part, within the
Group of Small, Vulnerable Economies, in the multilateral negotiations under way at the WTO,
promoting and advocating rules which take into account our concerns and enable our countries to
achieve real and effective gains and integration in international trade. In this connection, we
highlight the role played by Ambassador Piantini and his team in Geneva.
THAILAND
4.115. Thailand has a cordial trade relation with the Dominican Republic. In 2014, the Dominican
Republic ranked and has a bilateral trade value of over US$117 million. With exports and imports
valued at US$95.76 million and US$21.41 million respectively in 2014.
4.116. The bilateral trade between Thailand and the Dominican Republic maybe considerably
small and somewhat volatile, there is great potential in trade to be explored. We believe that for
exports, such potential exist in rubber, processed food products, automotives, machineries,
plastics, and chemical products. While plastics, electric machineries, medical equipment, and steel
are considered high-potential imports.
4.117. We would like to congratulate the Dominican Republic on its wonderful economic
performance as its economy grew rapidly at an average annual rate of 4.4% between 2008 and
2014.
4.118. Thailand would also like to commend the Dominican Republic for the notification of the
Category A measures of the WTO Trade Facilitation Agreement in July 2014. Moreover, other
significant progress in trade facilitation were also made during the review period as the Dominican
Republic adopted measures such as the improvement of its risk management systems and the
introduction of a computerized import clearance process.
4.119. In this review, Thailand submitted several questions to the Dominican Republic, covering,
among others, the requirement that a foreign company must be associated with to Dominican
micro, small and medium enterprises in order to participate in government procurement and the
criteria for the determination of the price band and release prices for rice under the National Rice
Pledging Programme.
4.120. We look forward to receiving the Dominican Republic's response in due course and will
study them in detail with great interest.
4.121. In conclusion, Thailand would like to express our appreciation to the delegation of the
Dominican Republic for today's presentation. We are thankful for the cooperation with the
Dominican Republic in both Geneva-based and Capital-based levels. We wish the Dominican
Republic every success in this fourth trade policy review.
CHILE
4.122. Considering the characteristics of its economy and the adverse international climate
marked by the financial crisis, the Dominican Republic recorded relatively high growth rates during
the review period.
4.123. Few countries were in a position to make significant progress in such difficult times.
WT/TPR/M/319 • Dominican Republic
- 29 4.124. Since the previous review of its trade policy, the Dominican Republic has undertaken a
number of economic reforms, in line with a policy aimed at trade liberalization and increasing
competitiveness levels. A point worthy of mention is the implementation of a Single Window for
Foreign Trade.
4.125. As regards sanitary and phytosanitary measures, the Government report states that the
Dominican Republic has made significant headway with its notifications (82 to date).
4.126. We would also like to highlight two major initiatives adopted during the review period.
4.127. First, the National Development Strategy 2030 and its three pillars, that is, the Education
Pact, the Electricity Pact, and the Fiscal Pact. Each area is essential to achieve sustainable and
inclusive economic and social development.
4.128. Chile agrees that all three pillars need to be strengthened. The first two, education and
energy, are part of the agenda of reforms driven by the Chilean Government over the past year.
4.129. Second, we emphasize the constitutional recognition of intellectual property rights as
regards works, inventions, innovation, appellations, trademarks, distinctive signs and other
products of the human intellect.
4.130. This consolidates understanding and recognition of the importance of intellectual property
from an economic and cultural standpoint. The promotion and protection of intellectual property
rights is a permanent and growing global phenomenon that requires active participation on the
part of governments in reconciling the interests of all parties, for the common good.
4.131. As regards the Dominican Republic's policy for the negotiation of bilateral investment
agreements, we would be interested to know more about the specific underlying guidelines and the
Government's assessment of the current system, as well as the reasons that prompted it to
conduct the related review process.
4.132. Our diplomatic relations date back to 1867 and have remained uninterrupted ever since.
Our trade is still fairly modest in volume terms but it is diversified, ranging from precious metals to
agricultural goods and medical, surgical or dental instruments and appliances.
4.133. Added to the fact that we share the same language, culture and geopolitical space, all of
the above shows that Chile and the Dominican Republic still have a lot of ground to gain in terms
of their future ties.
4.134. We are therefore interested in further developing our economic, trade and cooperation
relations. We also reaffirm our interest in signing a free trade agreement. This would enable us to
channel common efforts and provide a formal framework in which to boost the synergies that drive
a successful project.
THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU
4.135. From the report of the Dominican Republic, we can see clearly that its economy grew
rapidly during the period from 2008-2014 with the average annual rate of 4.4%.According to the
World Bank Group's Doing business report 2015, the Dominican Republic along with Jamaica and
Trinidad and Tobago featured among the countries that implemented the most reforms in Latin
America, which makes it easier for local entrepreneurs to do business.
4.136. The Dominican Republic has an open economy. The trade flows of goods and services
account for almost two thirds of the GDP. Attracting Foreign Direct Investment (FDI) is
continuously to be an important and crucial policy to achieve its development goal and secure a
competitive role for the country in the world economy. To boost its economy, in recent decades,
the country has made the attempts to transform its economic base and diversify its exports. We
commend the Dominican Republic, in particular, on its "National Development Strategy 2030"
issued in April 2014, which has shown the guidelines to promote country's export development and
higher levels of investment in high-valued-added and job-creating activities.
WT/TPR/M/319 • Dominican Republic
- 30 4.137. However, from the reports we can see the Dominican Republic has met crucial challenges,
in particular the electricity supply crisis. The country depends highly on imported fossil fuels to
generate electricity. The frozen electricity tariffs, high levels of power losses and the lack of
investment have resulted in the crisis of the energy sector. We encourage the country to keep on
reforms on the basis of the "Electricity Sector Action Plan" and look forward to possible
cooperation in efforts to boost renewable energy production.
4.138. The Dominican Republic has been a founding Member of the WTO since March 1995 and an
important participant in the regular work of the WTO. The country has taken an active part in the
Doha Development Round negotiations and in the recent agreements reached at the Bali
Ministerial Conference. We are pleased to see the country continuing to commit to strengthening
the multilateral trading system.
4.139. Bilaterally, my Government attaches great importance to our bilateral relationship with the
Dominican Republic. Our president Ma just visited Santo Domingo last week and received a warm
welcome from the government officials. He addressed the relations between two countries were
going from strength to strength and confirmed the cooperative ties continuously.
4.140. Since 1963, our Government has set up a technical mission of agriculture to help the local
people to diversity the crops and food production. And since 2000, we set up another technical
mission of industry to help develop the textile industry, woods and furniture industry, as well as
metal and electronic and plastic production industry. Other technical cooperation, such as
aquaculture project, bamboo craft project, fruit seedling Propagation and Farmer's organization
project, as well as the Industrial Technology (IT) Project have been completed and won the
significant results. We look forward to strengthen the above mentioned cooperation in the future.
INDIA
4.141. During the period under review, the real GDP of the Dominican Republic has grown by an
annual average rate of 4.4%, which is commendable. The prudent fiscal and monetary policy
measures to counter the lingering effects of the international financial crisis have been helpful in
stabilizing the economic cycle and maintaining a positive growth momentum. The outlook for the
economy remains positive, with real GDP expected to grow by about 4.5% in 2015. The "National
Development Strategy 2030" document of the Dominican Republic lays down key guidelines to
country's medium and long term economic growth. Its main objectives include promoting export
development, encouraging investments in high value added and job creating activities, and
maintaining a competitive business climate. The National Development Strategy also aims to focus
in the areas of education, energy and fiscal management. We wish the Dominican Republic every
success in confronting challenges facing its economy and achieving sustained economic growth and
improving the well-being of its peoples.
4.142. As noted in the Secretariat report, the Dominican Republic continues to maintain an open
economy, progressively liberalizing its trade policy regime autonomously and making it easier for
doing business. We appreciate efforts made by the Dominican Republic to further upgrade
procedures relating to border customs management and trade facilitation, including introduction of
Integrated Customs Management System in 2009. We note that in 2012, the Government has
made substantive changes in the legal framework relating to technical regulations, standards, and
conformity assessment procedures. It would be useful to understand when the Government
expects to complete its work on implementing regulations in this area.
4.143. India and the Dominican Republic enjoy cordial bilateral relations. Our bilateral trade has
been steadily growing from a level of about US$100 million in 2011-12 to US$140 million in
2013-14. We look forward to working with the Government of the Dominican Republic to further
strengthen bilateral trade and economic linkages.
URUGUAY
4.144. In this brief statement, Uruguay wishes to congratulate the Dominican Republic for its
growth over the review period, which was higher than the average for Latin American in an
unfavourable international environment. Such performance was due in large part to the package of
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- 31 fiscal and monetary policy measures adopted to cushion the impact of the global crisis and enable
the economy to recover its growth potential.
4.145. Our country has excellent relations with the Dominican Republic in the political, economic,
trade, cultural and cooperation spheres.
4.146. As regards trade relations, statistics for recent years indicate that our trade is trending
upwards. Our main imports have traditionally been dosed medicines and pharmaceutical
preparations and goods. In the first six months of this year, imports of recovered paper and
paperboard amounted to some US$380,000, outpacing medicines and pharmaceuticals. Uruguay's
leading exports to the Dominican Republic are dosed medicines, organic surface-active agents and
other rubber (unvulcanized), in primary forms or in plates.
4.147. We believe that we can and would therefore like to further expand our bilateral trade. We
are also interested in cooperating in complementary sectors (such as the medicines sector) and in
exporting other products with higher-than-usual industrial value added.
4.148. Lastly, my delegation wishes to emphasize our countries' mutual interest in reaching a
prompt and successful conclusion to the Doha Development Round, so that we have tangible and
practical results to take with us to the next Ministerial Conference.
ARGENTINA
4.149. The Dominican Republic has been making major progress since the previous review of its
trade policy.
4.150. At the macroeconomic level, we note from the Secretariat report that the
Dominican Republic's GDP grew at an average annual rate of 4.4% over the period 2008-2014, in
spite of the international crisis.
4.151. Thanks to the measures adopted since end-2012, the Government has succeeded in
containing inflation and the fiscal deficit.
4.152. The Dominican Republic has an open economy with goods and services trade flows
accounting for around two thirds of GDP. Goods exports grew significantly between 2009 and
2014. Trade in services posted positive figures in the period 2008-2014 and a surplus of over
US$4 billion in 2014. Robust growth in goods exports and tourism income reduced the current
account deficit from 6.6% of GDP in 2012 to 3.1% by end-2014.
4.153. As regards the structure of the Dominican tariff, we note that it did not change significantly
over the review period and remains relatively low, standing at 0% for more than 50% of tariff
lines. Although the average MFN tariff was 7.8% in 2014, for agricultural products it was as high
as 14.2%.
4.154. The Dominican Republic is an original Member of the WTO and takes an active part in the
work of the Organization and in the Doha Round negotiations.
4.155. As regards our bilateral relations, Argentina and the Dominican Republic enjoy friendly ties
and hold the same views in many areas. Both countries belong to the following regional forums:
the Community of Latin American and Caribbean States (CELAC), the Economic Commission for
Latin America (ECLAC), the Latin American Economic System (SELA), and the Inter-American
Development Bank (IDB).
4.156. Our bilateral trade is modest. In 2014, Argentina's exports totalled US$125.4 million, while
imports amounted to US$3.3 million. Between January and March 2015, Argentine exports were
worth US$25.7 million (a 101% increase over the same period the previous year), chiefly as a
result of higher sales of grain corn, soya bean oil and milk.
4.157. There is unquestionably room for expanding our bilateral trade. In this connection, we
would like to point out that, at the Summit of Heads of State and Government of the Central
American Integration System (SICA) in Belize on 17 December 2014, the SICA's General
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- 32 Secretariat received a MERCOSUR proposal for a framework partnership agreement between the
two blocs.
PARAGUAY
4.158. We welcome the Dominican Republic's participation in this exercise, at a time when its
economy is performing well and is overcoming the obstacles created by the recent international
financial crisis.
4.159. As all of us here know, the Dominican Republic may be a small economy, but it is one of
the most dynamic in the region, with a resolutely export-oriented production platform. Thanks to
this and to its sound economic policy, real GDP grew at an average annual rate of 4%.
4.160. I would like to highlight the fact that the Dominican Republic continued to implement trade
facilitation measures during the period under review, as shown by the streamlining of customs
procedures for some customs purposes, and the introduction of various measures contained in the
Trade Facilitation Agreement. It is worth reiterating that the delegation of the Dominican Republic
takes an active part in the TFA negotiations.
4.161. I also wish to underscore my country's excellent bilateral relations with the
Dominican Republic at the political, social and cultural levels as well as the economic level, as
evidenced by the recent opening of the Embassy of Paraguay in Santo Domingo.
4.162. Nonetheless, we have to acknowledge that our bilateral trade relationship is well below
potential. The Dominican Republic's leading goods exports to Paraguay include chemicals,
medicines and white cement, while its main imports from Paraguay are milk, medicines, active
ingredients, footwear, and oils and fats of animal origin.
4.163. To conclude, it should be pointed out that Paraguay and the Dominican Republic share the
same vision of the future of the multilateral trading system. Both countries are in favour of early
implementation of the Trade Facilitation Agreement and the design of a development-centred
post-Bali work programme.
4.164. I would like to offer renewed congratulations to those leading this review and to the
delegates from the Permanent Mission of the Dominican Republic in Geneva for their invariably
active involvement in the different areas of the Organization's work.
PAKISTAN
4.165. We are glad to note the robust growth trend demonstrated by the Dominican Republic
economy and thus despite the economic global crisis. All economic indicators are healthy and
positive: GDP growing was at 0.9% in 2009 and, at end 2014, GDP growth rate was estimated at
7.3%, exports are pursuing a positive trend, trade in services show a growing trend in surplus at
an average rate of 7.7% during the period under review.
4.166. Such impressive figures were the results of an open economy and the implementation of
well targeted policy reforms. We commend amongst other measures the implementation of trade
facilitation measures since six years.
4.167. On the bilateral trade in goods between Dominican Republic and Pakistan, despite the
increasing trend of +12.4% in 2014 as compared to the previous year, the existing trade potential
is not fully exploited.
4.168. I would like to conclude my statement by encouraging the Dominican Republic to pursue
the reforms already implemented tackling the energy crisis, in reducing the percentage of people
living below the poverty line and in creating more employments.
PANAMA
4.169. Trade relations between the Dominican Republic and Panama began to flourish after the
signing of the partial-scope agreement that entered into force on 2 November 2003.
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- 33 4.170. This agreement, initially scheduled to last ten years, was extended in 2013 for another five
years. It has strengthened and boosted mutual trade through the expansion and diversification of
trade in goods and services. This has prompted the two countries to work on extending coverage
under the agreement.
4.171. The Secretariat report underscores the buoyancy of the Dominican economy, marked by
export growth at an annual average nominal rate of 22.1%, which is driven mainly by the mining
sector.
4.172. We take special note of the Dominican Republic's positive economic trends in the
post-global crisis period, during which it implemented economic policies that led to real GDP
growth averaging 4.4% per year and narrowed the fiscal deficit.
4.173. The successful outcomes of these initiatives were recently acknowledged in the
World Bank's November 2014 report, which ranks the Dominican Republic among the world's top
50 economies for ease of trading across borders.
4.174. The Dominican Republic has also developed policies aimed at increasing competitiveness,
providing a trading environment conducive to foreign direct investment and implementing trade
facilitation measures, in particular customs reforms. The modified free-zone regime is the
Dominican Republic's key export promotion programme.
4.175. In 2014, Panama and the Dominican Republic signed a strategic alliance agreement aimed
at promoting investments in free zones by boosting the production of goods and services, as well
as raising the competitiveness of both countries.
4.176. Initiatives demonstrating the Dominican Republic's strong commitment to intellectual
property are also worthy of mention. We note its participation as an observer in the next
Central American Ministerial Meeting on intellectual property, in which we hope it will be able to
play an important role. We also highlight its accession to full membership in the Central American
Integration System (SICA) in 2013 and its renewed dialogue with SIECA.
4.177. We wish to congratulate the Dominican Republic for its active participation in the
multilateral trading system and for its important role in the trade negotiations under way at the
WTO. Its engagement is recognized and has been demonstrated by Ambassador Piantini's
outstanding work in recent years as Chairman of the Informal Group of Developing Countries.
4.178. We urge the Dominican Republic to press ahead in its endeavours to improve on areas
identified in the Secretariat report as needing greater attention, so as to sustain the trend towards
economic growth and its tangible social and developmental benefits.
HONDURAS
4.179. The Dominican Republic is a partner with whom Honduras shares many views in this
Organization. The same can be said of our bilateral trade relations. Under the free trade
agreements in force, the Dominican Republic exported some US$63 million worth of goods such as
tobacco leaf, graphite, coffee, pig fat, vegetables, fruit, cane sugar and milk to our country in
2014.
4.180. In the same year, Honduras imported around US$15 million worth of unmanufactured
tobacco, blankets, glands and other organs for organo-therapeutic uses (dried, whether or not
powdered), polymers of ethylene in primary form, coats, and wheat flour.
4.181. Honduras and the Dominican Republic are currently developing an innovative recycling
project using lilac stems to manufacture products that include furniture, thongs, shoes, flip-flops,
sandals, handbags, and mats. Honduran experts will provide technical advice, together with the
government bodies involved in the project, such as the Botanical Gardens, the Ministry of the
Environment and Natural Resources, the Ministry of Agriculture, the Dominican Institute for
Agricultural and Forestry Research (IDIAF), and the Autonomous University of Santo Domingo
(UASD).
WT/TPR/M/319 • Dominican Republic
- 34 4.182. The Honduran Government has also begun implementing the Mesoamerica without Hunger
agreement, a joint initiative launched by the Central American countries, the Dominican Republic
and Colombia to eradicate malnutrition through international cooperation, with support from the
FAO and funding from the Mexican Government. The goal is to strengthen institutional frameworks
for food security and family farming in Honduras.
4.183. According to information from the Central American Economic Council, the risk-rating
agencies expect the Dominican economy to expand by around 5% in 2015-2016; growth in the
United States will boost the Dominican Republic's economic performance, given the strong trade
links, tourism and remittances between the two countries.
4.184. Both the Secretariat and the Government report highlight the Dominican economy's rapid
growth, at an annual average rate of 4.4%, over the period 2008-2014. The traditional surplus on
the services balance has been expanding since 2010, thanks mainly to an increase in tourism
income.
4.185. Growth in total goods exports averaged 12.4% between 2009 and 2014, driven mainly by
mineral exports, particularly gold. Domestic exports (i.e. excluding exports from the free zones)
rose vigorously at an annual average nominal rate of 22.1% and accounted for 47.1% of total
exports in 2014, compared to 31.2% in 2009.
4.186. Both reports indicate that the increase in real value added of the agricultural sector,
including forestry and fishing, averaged around 6.3% per year between 2008 and 2013, and that
agricultural production rose from RD$23,435.5 million in 2008 to RD$31,825.9 million in 2013, the
main products being rice, bananas, tomatoes and so-called traditional export crops, such as sugar
cane, coffee, cocoa and tobacco, as well as chicken meat, eggs and beef.
4.187. Manufactured goods, in particular textiles, clothing and metal products, account for more
than 50% of Dominican exports. Manufactures also represented the vast majority of total exports
from the free zones in 2014.
4.188. We note that the Dominican Republic also maintains a surplus on its trade in
telecommunications services and experienced a boom in foreign direct investment (FDI), which
amounted to some US$17 billion in 2008-2014, reflecting investment in the mining, commerce and
industry, telecommunications, tourism, real estate, electricity and financial sectors in particular.
4.189. We highlight the National Development Strategy 2030, which contains the key guidelines
for the country's medium- and long-term economic, including trade, policy, with a view to boosting
export development; promoting higher levels of investment in high-value-added and job-creating
activities; and consolidating and monitoring the network of trade treaties and agreements signed
by the country, including our trade relations in the free trade area.
4.190. We note the introduction of substantial changes to the way in which the
Dominican Republic drafts and administers its technical regulations and standards, and its
conformity assessment procedures, the changes made to the institutional framework in creating
the Dominican Quality System (SIDOCAL), and the adoption of trade facilitation measures which
include the improvement of the country's risk management systems, the introduction of a
computerized import clearance process and the elimination of certain authorization requirements.
BARBADOS
4.191. My delegation commends the Dominican Republic on its sound economic performance in
the face of the global economic downturn. The review period spanned for the review includes the
onset of the global financial crisis in 2008 to 2014. Despite this, the Dominican Republic has
managed to do well. During this time, the Secretariat has reported that the Dominican Republic's
GDP grew rapidly at an average annual rate of 4.4%. The first three quarters of 2014 alone
recoded GDP growth of 7.3%. The accomplishments of this economy (though small in measure to
some), are due to the implementation of sound macroeconomic policies and timely and effective
decision making by its leaders.
WT/TPR/M/319 • Dominican Republic
- 35 4.192. The Dominican Republic is a small, vulnerable economy. They, like other SVEs, are
vulnerable to external shocks. This can have a negative impact on their economic growth and
sustainable development prospects. It is therefore no surprise that the country was negatively
impacted by the financial crisis, soaring oil prices and the lacklustre economic performance of their
main trading partners.
4.193. However, through persistent expansionary monetary and fiscal policies the economy began
to see a turn-around in 2010 when some other economies remained constrained by the brunt of
the crisis. Managed tax reforms and fiscal consolidation has contributed to the Government's
recovery efforts. Over the period, growth in exports in the domestic market have been influenced
by an increase in domestic demand and the decrease in oil prices and an escalation in mineral
exports, in particular, gold.
4.194. The outlook for further growth for the economy of the Dominican Republic remains
positive, with both the Central Bank and the IMF projecting a 4.5% expansion in GDP in 2015 due
primarily to the decrease in oil prices and an improvement in the economic outlook of the
country's main trading partners.
4.195. We note that the challenges faced by the Dominican Republic are not only economic but
are also social in nature. The WTO Secretariat has indicated that the World Bank has reported that
41.1% of the population is living below the poverty line.
4.196. In this regard, we recognize the role that trade can play in increasing employment,
incomes and livelihoods; and that the Government of the Dominican Republic has developed a
National Development Strategy, which aims among other things to, stimulate export development,
increased investment in higher value added products and employment generating areas;
rationalize the network of trade agreements; develop the regulatory environment to strengthen
the enabling business environment; and achieve an environmentally sound economy. We
commend the Government for their foresight and wish them well in the achievement of their trade
and development objectives.
4.197. Having established diplomatic relations with our sister Caribbean neighbour and trading
partner forty-three years ago, our two countries have benefited from a cordial and friendly
relationship.
4.198. Barbados is a party to two of the five free trade agreements that the Dominican Republic
currently has in force, these are the CARICOM-Dominican Republic Free Trade Agreement and the
Caribbean Forum-European Union Economic Partnership Agreement which were signed in 1998
and 2008, respectively.
4.199. We continue to work with our other CARICOM and CARIFORUM countries to increase trade
between our countries. With regard to bilateral trade between Barbados and the Dominican
Republic, we would wish to highlight that chief amongst Barbados' main exports to the Dominican
Republic are labels, sails and fertilizer.
4.200. As a contracting party to the General Agreement on Tariffs and Trade (GATT) and a
founding Member of the WTO, the Dominican Republic has been steadfast in reiterating its
commitment to the multilateral trading system. We have been consistently reminded of this
commitment through the active and valued participation of H.E. Mr Luis Manuel Piantini Munnigh
and his Geneva based team. Firstly, by Ambassador Piantini who has with steady stewardship
guided the Informal Group of Developing Countries (IGDC) and, secondly, his delegation's active
advocacy for flexibilities for developing countries in the Small Vulnerable Economies Group, the
African Caribbean and Pacific Group of States and the G33. Barbados looks forward to its
continued work with the Dominican Republic in this House in the pursuit of our shared and
common objectives.
BENIN
4.201. The delegation of Benin commends the Dominican Republic for its endeavours and
achievements, and the major economic and trade reforms implemented as a result.
WT/TPR/M/319 • Dominican Republic
- 36 4.202. In particular, we would like to underscore fiscal consolidation, debt restructuring and tax
system reform, cautious management of the monetary system, the adoption and implementation
of a National Development Strategy 2030, a more attractive investment regime, diversification of
agricultural production, and bold trade facilitation reforms such as the introduction of the Single
Window for Foreign Trade.
4.203. I would also like to emphasize the Dominican Republic's important role in and most
appreciated contribution to the multilateral trade negotiations, as well as the very active
engagement of the team at the Permanent Mission of the Dominican Republic to the WTO, headed
by H.E. Mr Luis Manuel Piantini Munnigh, in the work currently under way.
4.204. Another point worthy of mention is that the Dominican Republic has historically been a
major player in pro-regional integration actions and initiatives, not only at the Latin American and
Caribbean level, but also in the ACP context; these are important in supporting multilateral
endeavours and initiatives.
4.205. The delegation of Benin would like to take this opportunity to urge the technical and
financial partners to continue providing assistance to the Dominican Republic so that it can
complete its multisectoral reforms and foster economic, trade and social development.
NICARAGUA
4.206. Relations between the Dominican Republic and Nicaragua are conducted at two different
levels, each governed by a free trade agreement. Although the other Central American countries
are also signatories to these agreements, there is a major difference depending on whether the
latter apply bilaterally or multilaterally among the parties. Our bilateral relations have focused
essentially on political, trade and cultural matters.
4.207. Nicaragua wishes to congratulate the Dominican Republic for its sustained economic
growth and the adoption of trade facilitation measures, including the improvement of its risk
management systems and the introduction of a computerized import clearance process, and
expects it to submit its instruments of ratification and acceptance the TFA Protocol in the coming
days. Nicaragua also welcomes the Dominican Republic's adoption of trade and administrative
measures to increase its competitiveness and trade with its main trading partners.
4.208. Nicaragua notes that the Dominican Republic has experienced growth in agricultural
exports such as sugar, coffee and tobacco. In recent years, however, services have outpaced
agriculture as the largest provider of jobs, as a result of the expansion of telecommunications,
tourism and the free zones.
4.209. The Dominican economy relies heavily on the United States, which absorbs more than half
of the country's exports. Remittances from the United States account for around one tenth of GDP,
almost 50% of exports and three quarters of tourism earnings.
4.210. Unemployment and underemployment remain a long-term challenge. The Dominican
economy has recovered from the global recession, and substantial improvements have been made
in the fiscal domain. A tax reform package approved in November 2012 and a successful sale of
government bonds in 2013 helped narrow the public deficit from 8% of GDP in 2012 to 3% in
2013.
4.211. Over the past two years, Nicaragua has recorded a surplus of US$21.97 million in its trade
with the Dominican Republic, chiefly exporting cotton fabrics; tobacco leaf, tobacco and tobacco
substitutes, cigars and cheroots; bakery products; ethyl alcohol; sawn timber; rum; medicines for
human use; whole fish; ground coffee; peanuts; prepared or preserved vegetables, fruit or nuts,
and raw groundnuts, which altogether accounted for 99.3% of its total exports.
4.212. Goods imported from the Dominican Republic amounted to US$9.8 million over the same
period, and chiefly consisted of pharmaceutical preparations and goods for human use, clothing
and clothing accessories, and iron or steel wire.
WT/TPR/M/319 • Dominican Republic
- 37 4.213. Nicaragua welcomes the Dominican Republic's acceptance as a full member of the Central
American Integration System (SICA), pursuant to a resolution adopted at the 41 st Regular Meeting
of the SICA Heads of State and Government from 25 to 27 June 2013 and incorporated in the
Declaration of San José. This complements the Dominican Republic's trade relations with Central
America under the existing trade agreements and will increase its intra-regional trade, as well as
providing opportunities to address common issues and goals such as security, culture,
development, the economy, the environment and the eradication of poverty in the region.
4.214. Last but not least, my delegation wishes to pay tribute to the contribution made by
Ambassador Piantini and his team to the many tasks facing this Organization and to the DDA
negotiations in particular.
JAPAN
4.215. According to the Secretariat report, the Dominican Republic has overcome the global
financial crisis of 2008-2009 and experienced strong economic growth, with a 4.4% average
increase in GDP between 2008 and 2014, which expanded by 7.3% in 2014, driven by stronger
domestic demand and exports.
4.216. Japan greatly welcomes the Dominican Republic's consistent efforts, which have resulted in
robust economic growth with relatively low inflationary pressure. Despite this remarkable
economic performance, the country has been facing problems such as unemployment and poverty,
leading to an enormous income gap that affects its population. The gap needs to be narrowed if
the Dominican Republic is to enjoy sustainable economic growth. To achieve that objective, it is
extremely important for the country to keep a constant focus on human resource development.
Japan has been providing ongoing assistance in a number of areas, in the form of both technical
and financial cooperation. Japan hopes that the Dominican Republic will pursue its endeavours in
that direction.
4.217. To sustain its vigorous economic performance, the Dominican Republic must also continue
to make every effort to integrate its economy in global value chains. And that is precisely the
objective of the National Development Strategy 2030. The implementation of both bilateral and
multilateral trade agreements and the promotion of direct investment are essential in promoting
integration. Japan looks forward to witnessing the Dominican Republic's efforts to achieve that
objective in the future.
4.218. I will now turn to the Dominican Republic's trade policies.
4.219. According to the Secretariat report, the Dominican Republic's foreign trade can be divided
into two categories: trade within and trade outside the free zones. Although the free-zone regime
is the country's key trade promotion programme, exports from outside the free zones grew
vigorously, driven mainly by exports of precious minerals, particularly gold. Japan welcomes the
Dominican Republic's endeavours to diversify its exports.
4.220. As regards the Trade Facilitation Agreement, Japan also welcomes the Category A
notification submitted by the Dominican Republic. Japan hopes that the country will ratify the
Agreement as soon as possible.
4.221. The Dominican Republic has five FTAs in effect, including the CAFTA-DR, which is the most
important one for the country. According to the Secretariat report, it is currently exploring the
possibility of signing a trade agreement with Chile. Japan hopes that the FTAs signed and
negotiated by the Dominican Republic, which are consistent with the WTO Agreements, will
complement and strengthen the WTO multilateral trading system.
JAMAICA
4.222. Jamaica and the Dominican Republic are historically close. The Dominican Republic
occupies with Haiti the island of Hispaniola which is Jamaica's second nearest neighbour.
4.223. We therefore recognize and have tremendous respect for the important and influential
position of the Dominican Republic in the trade of our region.
WT/TPR/M/319 • Dominican Republic
- 38 4.224. Jamaica and the Dominican Republic have strong trading links, particularly within the
ambit of the CARICOM-DR free trade agreement and the CARIFORUM-EU economic partnership
agreement.
4.225. We therefore join others in congratulating the Dominican Republic for the progress made
during the review period, particularly in the area of trade facilitation, a remarkable response to the
global financial crisis and growth in services, including tourism.
4.226. Jamaica has long admired the policy and practice of the Dominican Republic to green its
urban areas which has no doubt contributed positively to the country's participation in the
sustainable tourism market.
4.227. We also note the challenges that continued to be faced by the Dominican Republic,
including the energy supply constraints situation which we, in Jamaica, are also familiar with, and
other outstanding issues in its trade policy.
4.228. We therefore join others in urging the Dominican Republic to address these issues and to
include, where appropriate, timelines for the implementation in the interest of transparency.
4.229. I wish to close by expressing our deep appreciation to Ambassador Piantini for his wise and
energetic guidance in defending the interests of developing countries in the WTO.
DOMINICA ON BEHALF OF THE OECS
4.230. According to the Secretariat report, the Dominican Republic has been relatively successful
in overcoming the global crisis that confronted it and the world thanks to various domestic
measures including monetary and fiscal policies. In that regard, the report indicates that overall,
the Dominican economy grew rapidly during the period from 2008 to 2014, the average annual
rate reaching 4.4%. This is a commendable level of performance which demonstrates a high level
of resilience for a small economy in the face of global economic challenges.
4.231. We note and commend the Government of the Dominican Republic for the developments
and reforms that have taken place since its last trade policy review. This includes the enactment of
a National Development Strategy 2030 and its Implementing Regulations along with the three
major national pacts: the Education Pact, the Electricity Pact, and the Fiscal Pact. We also note
that the main objectives of the Dominican Republic's trade policy are set out in the National
Development Strategy which reflects a commendable high level of trade mainstreaming in national
plans. We note and commend the Dominican Republic for the reforms in the area of customs and
trade facilitation to update and streamline its customs procedures. We also note the developments
regarding its standards, technical regulations and conformity assessment procedures. We would
like to encourage the Dominican Republic to continue the process reform and compliance with its
WTO obligations.
4.232. The OECS and the Dominican Republic share close relations and friendship as members of
the Caribbean region and members of several institutions and arrangements including
CARIFORUM, the ACP and GRULAC, the CARIFOFUM-EU EPA and the CARICOM-Dominican Republic
FTA. In the WTO, we are both Members of the group of small, vulnerable economies, the G33 and
the IGDC. In that regard, the Dominican Republic and the OECS, both as developing countries but
more specifically as small vulnerable economies and small island developing States, share the
similar perspectives, positions and aspirations, in many issues in the WTO including a successful
conclusion of the Doha Development Agenda negotiations that addresses our needs and concerns.
4.233. In that regard, as the Secretariat report notes and as we have observed from ourselves,
the Dominican Republic is an active participant in the work of the WTO and in the Doha
Development Round negotiations. It plays a leading role in the SVEs and the ACP groups and is
Chair of the IGDC. We thank the Dominican Republic and encourage Ambassador Piantini and the
delegation here to continue playing this role in strengthening the WTO and the MTS and advancing
the interests of small developing countries.
WT/TPR/M/319 • Dominican Republic
- 39 5 REPLIES BY THE REPRESENTATIVE OF THE DOMINICAN REPUBLIC AND ADDITIONAL
COMMENTS
5.1. I would like to start by thanking His Excellency Mr Atanas Paparizov, Ambassador of Bulgaria
and Chair of this meeting, for his leadership in ensuring the smooth running of our proceedings. I
believe, Your Excellency, that your compliance with the time-frame concerning the statements
delivered and your most insightful and clear introductory remarks have contributed to the success
of this meeting. I would also like to take this opportunity to thank His Excellency Mr Esteban
Conejos, Ambassador of the Philippines and discussant for this review, for his very clear and
apposite remarks on the trade policies of the Dominican Republic, which have helped our
discussions.
5.2. The preparatory work for our fourth trade policy review started in April 2014. In September
of that year, a team composed of representatives of our key government institutions concluded
the first preparatory meeting for the submission of this review before the World Trade
Organization (WTO). Since then, we have worked tirelessly in order to fulfil our undertaking in the
most effective possible manner. All these efforts and dedication have led to the final stage that
brings us here today.
5.3. A few hours ago, in this very room, I spoke on behalf of the Government of the
Dominican Republic to express our considerable satisfaction in presenting this new review of our
trade policy and thus complying with one of the core commitments undertaken by all
WTO Members.
5.4. Today I would like to reiterate how pleased we are - now doubly so because of the warm
welcome we have received from all of you – and the sense of satisfaction of a duty fulfilled.
5.5. We appreciate your statements and have paid special attention to all of your oral as well as
written comments and questions. Every single one of them has been and will continue to be
evaluated in the right perspective, because we are convinced that, in so doing, we are helping to
strengthen our relations within the multilateral system.
5.6. We have taken due note of your positive feedback on the economic policies implemented by
the Dominican Republic in the course of the period under review, which, as we all know, was
marked by the worst global economic crisis in recent times. We will continue to promote the
establishment of policies under which we can press on with building an even stronger economy
and thus contribute to development for all Dominicans.
5.7. We welcome your favourable assessment of the introduction of our National Development
Strategy. We are sure that its implementation will help us build the Dominican Republic of the
future. I have already commented on the rewards that we have begun to derive from investing in
education, which we shall continue to do. We are confident that the Electricity Pact will pave the
way towards a more efficient system, by reducing costs and improving the conditions which,
today, hinder our development. We also trust that the Fiscal Pact will help increase the efficiency,
transparency and fairness of our tariff structure.
5.8. We are pleased to have shown you our significant progress with trade facilitation since our
previous trade policy review and acknowledge your comments. We are confident about an early
conclusion of the process of ratification of the Trade Facilitation Agreement and will continue to
comply with all the commitments undertaken in the WTO.
5.9. As regards technical barriers to trade, our National Committee is currently working on the
proposed modification of the existing legal framework and on the related implementing
regulations.
5.10. The need to amend our legal framework arose from enactment of the law establishing the
Dominican Quality System (SIDOCAL) and specific TBT functions that required bringing the
relevant legal instruments into line with the new law. It will also be necessary to incorporate a
number of government institutions that were not included initially but that must be incorporated in
order to ensure more effective functioning of the TBT system.
WT/TPR/M/319 • Dominican Republic
- 40 5.11. All of our country's TBT-related actions will continue to comply with the principle of
transparency established in the WTO Agreement on Technical Barriers to Trade.
5.12. The Dominican Republic's government procurement regime was among the issues that gave
rise to the largest number of questions in this review. However, since we have no multilateral
commitments in this respect, we have to refer to the regime currently in place.
5.13. Our country's government procurement regime is based on the principles of transparency,
openness and economy, and it promotes participation by the largest number of suppliers. The
institutions concerned submit their procurement plans in accordance with their budgets, along with
the contracts that they intend to execute during the fiscal year. These are compiled by the
Directorate-General of Government Procurement and published on its website, which enables
economic operators to decide ahead of time in which contracts they wish to participate. There are
various publication media and time-frames depending on the procurement method corresponding
to the threshold for each individual process.
5.14. I would also like to mention that the changes that the Dominican Republic has been making
to its government procurement regime since 2006 were not only prompted by the commitments
made under our existing trade agreements but are also part of the State's financial management
reform, which has led to the adoption of a large number of laws that promote, among other things,
transparency and efficiency in public spending, and accountability, and also facilitate social
auditing.
5.15. To conclude on this subject, we welcome the fact that several Members have invited us to
accede to the plurilateral Agreement on Government Procurement. The Dominican Republic does
not rule out the possibility, to the extent that there are instruments that would enable it to identify
substantial trade interests that could be addressed under this agreement.
5.16. We would like to reiterate that foreign investment and investors unquestionably enjoy legal
certainty in the Dominican Republic.
5.17. The State and its entities and authorities honour and comply with the undertakings made
under contracts and agreements with their various trading partners and counterparts. Through the
different bodies and agencies such as the investment agency, they promote and ensure full
protection for foreign investment.
5.18. Guarantees such as property rights are even protected under the Constitution, meaning, for
example, that in the event of expropriation by the State, adequate and fair compensation is
provided through a non-discriminatory procedure, under due process of law and in accordance with
legitimate public policy objectives.
5.19. All the prerogatives conferred by the various powers and representatives of the State are
clear examples of the legal certainty afforded to foreign investment. Nonetheless, we are prepared
to review individual cases and the guarantees afforded to their investments in our country.
5.20. The Dominican Republic reaffirms its commitment to regional integration. As we have
already said, we are well aware that we may be an island but we are not isolated. Therefore, as
some of you have suggested, you may count on us to promote a greater rapprochement with the
Central American Integration System and closer ties in the other regional processes in which we
are involved.
5.21. We have been responding to your questions in a formal and timely manner and will be
answering any outstanding queries in due time.
5.22. I take this opportunity to inform you that, in cooperation with officials from the
WTO Secretariat, we have already begun preparing a seminar to evaluate our participation in this
trade policy review, which will bring together all our government authorities involved in that area.
We informed WTO Director-General Roberto Azevêdo of this at a meeting yesterday.
5.23. Furthermore, we told the Director-General just the same as we told you, namely that our
country is committed to the multilateral trading system and to a stronger World Trade
WT/TPR/M/319 • Dominican Republic
- 41 Organization, as the primary forum for multilateral trade-related matters. We are confident that
the Doha Round will be concluded to the satisfaction of all concerned.
5.24. Our intention in coming here was not to perform a mere rhetorical exercise. We wanted to
give you a snapshot of the reality of the Dominican Republic - a country with a past, as outlined by
Ambassador Conejos, but above all with a vision of the future.
5.25. We hope that the presence of our delegation here in Geneva is interpreted as a clear signal
of our Government's determination to contribute to greater transparency and understanding of our
country's trade policies and practices. We repeat that we stand ready, to quote our
President Danilo Medina, "to pursue what is going right, to correct what is going wrong, and to do
what has never been done before".
DISCUSSANT
5.26. First, I would like to thank Vice Minister for the comprehensive remarks delivered the other
day. I would also like to acknowledge the statements made by the Members from the floor, so I
will touch on some of the key themes I heard from you last Wednesday.
5.27. Many Members welcomed the fact that, despite the economic and financial challenges over
the past years, the Dominican Republic has remained resilient and was able to recover rapidly. To
cite an example, the Dominican Republic actively explored ways and other areas of opportunity
such as tourism and telecommunication services while it was experiencing a decline in agriculture.
The Vice Minister also outlined measures the Government is taking as a response to external
shocks.
5.28. The Dominican Republic is obviously committed to the multilateral trading system. Members
nonetheless noted the Dominican Republic's trade policy agenda outside the WTO, particularly its
participation in regional trade agreements as part of its efforts to further integrate into the
regional and global economy.
5.29. SPS and TBT were mentioned many times in the statements. There was a positive
acknowledgement of the reforms being undertaken but there was also a consistent message that
there is room for improvement, including increased transparency, the adoption of new legislation
or laws to update them and the full implementation of the changes made.
5.30. Quite a number of Members are looking forward to the full operationalization of the
Dominican Republic's competition policy law through the activation of ProCompetencia as it will
also complement the positive developments in other areas such as the amendment of the free
zone legislation and opening up of most economic sectors to FDI as well as the granting of national
treatment.
5.31. I heard genuine concerns from the Members including specific suggestions in order for the
Dominican Republic to overcome the energy crisis it is currently facing. The Vice Minister described
the steps the Government is taking to address inefficiencies in the electricity sector, including
revisiting its renewable energy regime.
5.32. We just heard the Vice Minister inform the Body that he will take account and will act on the
points made by Members in the course of this policy review and we are delighted to hear that Vice
Minister.
5.33. Lastly, I would like to thank the Secretariat for all its hard work in preparing for this review,
again the sincere appreciation to the Dominican Republic for answering so many questions which
indicate the keen interest on the economy of Dominican Republic and responding in such a timely
manner and the Members who were also an important part of the discussions over the past two
days. I also would like to congratulate my good friend Ambassador Luis for his positive work in
Geneva particularly in the next few months in the lead-up to the Nairobi ministerial meeting.
5.34. Please allow me to wish the Vice Minister and his delegation a safe trip back to Santo
Domingo. Having gained new friends from this review, I know that when I visit the Dominican
Republic, I can always count on my good friend H.E. Luis to tell me the best places to go.
WT/TPR/M/319 • Dominican Republic
- 42 EUROPEAN UNION
5.35. The EU would like to thank the delegation of the Dominican Republic for the replies already
provided in preparation for this meeting. We appreciate them.
5.36. However, the EU would like to receive some further clarifications on two specific replies
provided. For this reason, we have provided a couple of follow-up questions. Firstly, the EU would
like to know the average real time for obtaining the sanitary registration of imported foods,
beverages, medicines, cosmetics and household hygiene products, per product category and per
registration type. Secondly, the EU would like to know when the Dominican authorities envisage
completing the structure of the competition authority. We realize that these are quite specific
questions and we have submitted them to the Secretariat and we would appreciate replies in due
course.
5.37. Concluding, the EU very much welcomes this review as an useful exercise for all parties and
hopes that the Dominican Republic will take advantage of the comments raised by several
Members.
UNITED STATES
5.38. The United States expresses its thanks and appreciation to the Vice Minister and his
delegation of the Dominican Republic for the hard work and efforts in preparing for actively
engaging in this fourth Trade Policy Review.
5.39. We found your delegation's presentations as well as the informal comments by
Ambassador Conejos extremely comprehensive and they added greatly to our understanding of
your country regime and your ambitious plans for the future.
5.40. We welcome your encouraging remarks regarding the progress on the Trade Facilitation
Agreement and the focus that you place on observing and improving the transparency obligations
under the SPS and TBT Agreements.
5.41. We appreciate your additional explanation on your government procurement regime and we
welcome any further consideration that you may wish to give to joining the GPA.
5.42. Once again, my delegation wishes to thank the Dominican Republic for the responses
provided to our questions and we congratulate you on a successful TPR.
GUATEMALA
5.43. Guatemala thanks the Dominican Republic for the additional information it was kind enough
to share with us yesterday in response to the questions for this review. The information has
already been forwarded to our capital and will be very useful to us.
5.44. We also take this opportunity to congratulate and thank both the delegation of the
Dominican Republic and Ambassador Conejos for their very comprehensive and eloquent
statements over the past two days.
WT/TPR/M/319 • Dominican Republic
- 43 6 CONCLUDING REMARKS BY THE CHAIRPERSON
6.1. The fourth Trade Policy Review of the Dominican Republic has provided us with a clearer
understanding of its trade and investment policies since the last Review in 2008, of its
achievements since then, and of the challenges it still faces. The review has benefitted from the
constructive participation of the Dominican Republic's large delegation, headed by H.E. César
Dargam Espaillat, Vice Minister of External Relations, and by the valuable comments from the
discussant, the Permanent Representative of the Philippines to the WTO, H.E. Esteban Conejos.
Members appreciated the Dominican Republic's response to the more than 130 advance written
questions, and we look forward to answers to any outstanding questions no later than one month
after this meeting.
6.2. Members highlighted the Dominican Republic's generally open and transparent trade regime,
with few obstacles for its trading partners. On the economic front, Members commended the
Dominican Republic for having weathered the global economic crisis successfully through the use
of anti-cyclical fiscal and monetary policies. They noted that during 2008-2014, GDP had grown at
an average annual rate of 4.4% in real terms, and that trade in goods and services, as well as
investment flows and remittances, had been an important factor supporting growth. In 2014,
growth had been particularly high at 7.3%, driven by strong activity in mining, construction,
tourism and other services. Members welcomed the Dominican Republic's sustained economic
reform agenda, including its 2012 tax reform process and other initiatives in areas such as trade
facilitation and TBTs, and encouraged it to step up the pace of reform in areas where
competitiveness needs to be boosted.
6.3. Members welcomed the Dominican Republic's important achievements in reducing poverty
but noted that overall levels of poverty remain relatively high and encouraged it to continue to
focus on policies to promote growth and social inclusion. Members showed interest in the National
Development Strategy 2030 and its focus on three key areas: education, electricity and fiscal
reform. Several Members pointed out the persistent problems in the electricity sector and the
effect that insufficient supply could have on the country's competiveness and growth prospects.
They urged the Dominican Republic to address this issue. In his presentation, the representative of
the Dominican Republic stated that a comprehensive reform of the electricity sector, under an
Electricity Pact, is currently being pursued and that the Government has stepped up investments in
the sector.
6.4. It was noted that the Dominican Republic was the recipient of a considerable amount of
foreign direct investment (FDI) during the period under review, and that this had had a positive
impact on its exports. The Dominican Republic had also introduced measures to facilitate
investment procedures and attract more FDI, such as the establishment of a one-stop investment
facility in 2012. However, Members considered that further reforms could be pursued and the FDI
regime could be strengthened, particularly by increasing the legal security for FDI, and by
addressing the existing FDI restrictions as well as the impediments for foreign companies on
distribution services through the imposition of local authorized operators.
6.5. The Dominican Republic's commitment to and active participation in the WTO were mentioned
by several Members. The representative of the Dominican Republic reaffirmed this commitment
and expressed its wish to contribute to the positive conclusion of the Doha Development Round.
6.6. Members noted the Dominican Republic's participation in five Free Trade Agreements, which
covered more than two-thirds of its trade. Some Members also highlighted the participation of the
Dominican Republic to the Central American Integration System (SICA) since 2013.
6.7. The Dominican Republic was commended for its implementation of trade facilitation measures
during the review period, which had included the introduction of a computerized customs clearance
system, the improvement of its risk management process and the elimination of certain
authorization requirements. The eventual completion of a Foreign Trade Single Window would be
an additional step in this direction. It was also noted that the Dominican Republic had notified its
Category A commitments under the Trade Facilitation Agreement (TFA); Members invited the
Dominican Republic to promptly ratify the TFA.
WT/TPR/M/319 • Dominican Republic
- 44 6.8. Members welcomed the Dominican Republic's relatively low average tariff and the fact that
some 54% of tariff lines were zero-rated. They observed, however, that tariffs in agriculture were
more than twice as high as those on manufactured goods. Members noted the changes made to
the regime for the allocation of tariff quotas for agricultural products since the last review, but
some expressed concern about the lack of transparency and delays in the issuance of import
permits, as well as with respect to the administration and purpose of the no-objection permits
required for the importation of animals and agricultural products. Some Members also referred to
the outdated nature of some SPS legislation. In this respect, the Dominican Republic authorities
noted that they are working on the preparation of new legislation, regulations and procedures.
6.9. Members commended the Dominican Republic for adopting new procedures for the drafting
and administration of its technical regulations to follow closely international standards, an issue
that was also raised in the context of the previous review. With respect to intellectual property,
some questions were raised with respect to the reasons to limit simplified registration procedures
to pharmaceutical products. Some concerns were also expressed with respect to the shortcomings
in practice and enforcement of IPRs, such as the delays in patent application reviews and
marketing approval for pharmaceuticals, and the availability of pirated and counterfeit goods.
6.10. The Dominican Republic's government procurement regime was considered as generally
transparent, and conducted on a competitive basis, without recourse to preference margins for
domestic suppliers. The 20% set aside in government procurement for small and medium-sized
enterprises (SMEs) was noted by several Members, some of whom considered this as a preference.
On competition policy, Members expressed concern about the fact that the competition authority is
not yet operational and that the regulations to implement competition legislation have not been
issued. Members urged the Dominican Republic to address these shortcomings.
6.11. The fourth Review of the Dominican Republic's trade policies and practices was successfully
concluded to the benefit of all the Membership. I have no doubt that the Dominican Republic will
find useful the fruitful discussion and dialogue as well as the insights provided by Members during
the review and will take them into account to develop further its trade and economic policies to
enhance the welfare of its citizens. The large number of advance written questions submitted
before the meeting and the 29 delegations that took the floor during the two days of discussions
highlight the importance Members attach to the Dominican Republic's trade and related policies
and its role in the multilateral trading system.
6.12. In closing, I would like to thank Vice Minister César Dargam and the rest of the large
delegation from Santo Domingo and Geneva, the discussant, the Members and the Secretariat for
their contribution to the fourth Trade Policy Review of the Dominican Republic.
__________