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Crucial week for Free Trade set to start on the 1st

Dominican Today, Dominican Republic

Crucial week for Free Trade set to start on the 1st

26 June 2006

Santo Domingo.- As of this upcoming weekend, the government faces two important challenges: Friday, June 30th is the last day for the legal standing of the 13% tax on imports, and on the next day, the 1st of July, the Free Trade Agreement (FTA) is scheduled to start.

Yet only five days away from the set date to implement the accord, the Dominican government has yet to meet pre-established legal requirements.

The FTA with Central America and the United States should begin next Saturday, but its postponement is evident, because exigencies made by the U.S. government will not be made on time.

While the 13% tax on imports will be eliminated, postponement of the treaty would in turn alleviate the government’s revenue capabilities given that other taxes on processed goods and services remain till the agreement’s implementation.