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In 1 year, Dominican Republic lost RD$2.54B from Dr-Cafta trade pact

Dominican Today, Santo Domingo

In 1 year, Dominican Republic lost RD$2.54B from Dr-Cafta trade pact

25 February 2008

SANTO DOMINGO.- Dominican Republic has lost from the Dr-Cafta trade pact, which took effect one year ago on Saturday, RD$2.54 billion from lost tax revenues, the Customs Agency (DGA) said in a statement.

It said that’s the reason prices of products imported within this Free Trade Agreement must fall, even with external factors which impact the economy, such as rise in oil prices. So far the price of products has only climbed.

The DGA said of 6,758 products with tariff fees or lines, 3,679 aren’t taxed, product.

It said since March 2007 to 28 February this year, revenue losses of RD$2.2 billion are expected on imports from the United States which entered tax-free via the Dr-Cafta.

On taxed imports from Guatemala, El Salvador, Honduras and Nicaragua in the Dr-Cafta’s first year reached US$301 million, for a loss from lowered duties of RD$2.2 billion, with a fiscal impact totaling RD$2.6 billion.

The DGA adds that projected to February 28 this year, total revenue losses from the agreement’s application is RD$2.5 billion, of which the U.S., Virgin Islands and Puerto Rico represented a total fiscal impact of RD$2.5 billion, whereas from the Central America countries it was RD$2.6 billion.