NewsWhore
04-29-2008, 02:10 PM
Central American imports are flooding the Dominican market. The lower cost of electricity and government incentives have given Central American manufacturers an advantage over Dominican manufacturers now that there are no tariffs as a result of the DR-CAFTA free trade agreement. El Caribe newspaper focuses on Central American imports in a feature and editorial today, highlighting the way in which local manufacturers are losing market share to the regional imports. The newspaper reports: "The competitive differences that favor Central America are large, as is the case of Guatemala where the country exempts companies that export from paying income tax, which converts them into truly free zones. The newspaper warns that the DR has to take measures to ensure that "we are no longer a country where it is expensive to live and to produce," echoing a warning from the president of the National Council Private Business (CONEP), Lisandro Macarrulla.
Furthermore, the former president of the Association of Industries, Celso Marranzini, in an op ed feature in El Caribe, pointed to the competitive advantages that Guatemala has over Dominican manufacturers. He mentioned that they negotiated the better hand of the free trade agreements, have cheaper electricity costs, lower interest rates, and the support of their governments in the way of incentives for freight, fewer tariffs and a value-added tax that does not affect them at the start of the productive cycle. Furthermore, he said that when Dominicans were paying 36% on capital goods, the Central Americans had no taxes on capital goods. He mentions that in addition to a decree that exempts exporting companies from paying income taxes, the Guatemalan government reimburses companies 6% of what they have reported as exports. As a result, he points out that Guatemala exported US$57.4 million to the DR, while Dominican exports to Guatemala totaled a mere US$10.4 million last year.
More... (http://www.dr1.com/index.html#7)
Furthermore, the former president of the Association of Industries, Celso Marranzini, in an op ed feature in El Caribe, pointed to the competitive advantages that Guatemala has over Dominican manufacturers. He mentioned that they negotiated the better hand of the free trade agreements, have cheaper electricity costs, lower interest rates, and the support of their governments in the way of incentives for freight, fewer tariffs and a value-added tax that does not affect them at the start of the productive cycle. Furthermore, he said that when Dominicans were paying 36% on capital goods, the Central Americans had no taxes on capital goods. He mentions that in addition to a decree that exempts exporting companies from paying income taxes, the Guatemalan government reimburses companies 6% of what they have reported as exports. As a result, he points out that Guatemala exported US$57.4 million to the DR, while Dominican exports to Guatemala totaled a mere US$10.4 million last year.
More... (http://www.dr1.com/index.html#7)