Dominican Today | 2 May 2006
U.S. gains more than Dominicans with DR-CAFTA
Santo Domingo.- The Dominican Republic would increase its industrial exports toward the United States by approximately 246 million dollars per year, that is 6%, once the Free Trade Agreement with Central America and the U.S. is implemented, according to a study by Pareto consulting group.
The Pareto analysis reveals that the impact, viewed from the U.S. standpoint, is more favorable to that country since it will increase its industrial exports to the Dominican Republic at a rate of US$349 million (12%) during the first year of the agreement, and are expected to increase in the different phases of the accord, to reach a 418 million increment.
For this reason, according to the study, the final trade balance favorable to the U.S. by 101 million dollars.
Also, the study surmises that the “positive impact of it [DR-CAFTA] on [local] exports will not be at the magnitude envisioned by unfounded speculations,” given that a great portion of the benefits from such a trade agreement with the United States were evidence two decades ago.
The study referred to the especial and preferential systems applied by the U.S. during the 90’s that resulted in 87 percent of local production to be exported to that country, which is 57% more than Central American countries together, according to statistics from 2003.