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Dominican auto importers say no way prices will drop

Dominican Today, Dominican Republic

Dominican auto importers say no way prices will drop

23 March 2007

SANTO DOMINGO. - The National Vehicle Distributors Association (ANADIVE) recommended to the Dominican population not to create the false expectations that automobile prices would drop because of the DR-CAFTA free trade deal.

They described as “illusory” the governmental information which say that the tariff for new and used cars will drop 25.

“The joy in the poor man’s home is short-lived,” it said in reference to some sectors which began frothing at the mouth to take advantage of supposed huge price drops for cars from the trade deal with the United States and Central America, as the used vehicle importers’ assertion is a cold bucket of water on those pretensions.

ANADIVE president Cesar Santos calculates that vehicle tariffs will gradually drop 5% in four years, and not the 25% that president Leonel Fernandez affirmed in his speech to the Nation.

The vehicle importers added that the trade treaty does not contemplate tax reductions for used automobiles, nor for those with engines exceed 2,500 cc.

The Dominican automobile market is dominated by vehicles from Japan and their U.S. versions, and very few are totally from the United States as the DR-CAFTA stipulates to benefit from tariff breaks.