Trade to the Caribbean is on a steady rise. Economist Roberto Despradel recalls that the country's first free trade agreement, signed with the Caribbean Common Market (Caricom) went into effect in 2001. This brought together 12 mostly island-states like Jamaica and Trinidad, and countries in continental South America such as Suriname and Guyana, as well as Belize in Central America. He said that in 2005 we exported US$35 million to Caricom countries. By 2008 that figure had increased to US$135 million. While we imported US$250 million in 2005, that figure exceeded US$600 million by 2008. "Even if this agreement is not in vogue compared to others signed by the country, its results have been win-win," says Despradel.
He says that while it is true we have a US$1.2 billion trade deficit with Caricom, 83% of this is because of hydrocarbon imports. When removing those, we show a trade surplus of US$38 million. He points out that another important aspect of trade with the Caribbean is that the islands complement each other. He makes the point that we import thick wiring from Trinidad for manufacturing mattresses in the DR. The mattresses then are exported to tourism projects in the small islands of the eastern Caribbean. We also export cement and steel rods, windows, sinks and PVC piping to the Caribbean. From the Caribbean we import inputs for fertilizers and export others. We also export cardboard boxes. And there is trade in a wide range of food and industrial products. "This is why we are natural trade partners," concludes Despradel.
In 2008, the DR exported US$137.01 million to the Caribbean and imported US$648.11 million.
During the 4th Meeting of the Trade Forum at the Center for Exports and Investments (CEI-RD) last Friday Jose Manuel Armenteros, co-president of the Caricom-Dominican Republic trade Forum said: "While it is true that more than 85% of imports are for petroleum and by-products, there is a wide margin for new business and new market share in our respective markets." We need to act fast to make the most of this advantage with the European Union before the Central American and Mercosur countries finalize their respective negotiations."
Henri Hebrard, speaking at the workshop, explained that the DR has been able to increase its exports at a rate of 30% a year because of the high purchasing power of Caribbean islanders compared to Central Americans. He sees much potential now with the entry into effect of the European Partnership Agreement. He estimated the economy of the Cariforum region at US$100 billion. He says that inter-regional trade should increase, spurred by integration efforts under the EPA. He said that the European Union is supporting the development of the region working as a block, not isolated countries.

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