NewsWhore
07-03-2006, 03:10 PM
The first of July came and went and the DR-CAFTA free trade agreement did not get started. No new date has been announced for a possible start of the accord. According to the several newspaper reports, the Dominican government is still waiting for the United States Trade Representative and President George W. Bush to say whether the documents that have been submitted are satisfactory or not. Reportedly, in the DR, there are problems with Law 173 on dealer protection laws, and with the laws governing trade secrets in the drug industry (intellectual property issues). The Dominican Association of Industrial Free Zones (ADOZONA) is urging the Dominican government to do what is necessary to guarantee the Dominican entrance into DR-CAFTA as soon as possible.
In an article written for Hoy newspaper, economist and former minister of Finance, Arturo Martinez says that it is not in the government's interest for DR-CAFTA to go into effect because it also requires the passing of a procurement law that would limit the government's ability to award contracts at discretion. Meanwhile, he points out that the government is benefiting from the compensation it was able to include in the 2006 Budget for the dismantling of import taxes under the agreement, even though this has not gone into effect. Thus the government is benefiting from the exchange surcharge, an increased ITBIS, income tax and transitory tax on imports. The government had argued DR-CAFTA would go into effect on 1 January 2006.
Link To Original Article (http://www.dr1.com/index.html#3)
In an article written for Hoy newspaper, economist and former minister of Finance, Arturo Martinez says that it is not in the government's interest for DR-CAFTA to go into effect because it also requires the passing of a procurement law that would limit the government's ability to award contracts at discretion. Meanwhile, he points out that the government is benefiting from the compensation it was able to include in the 2006 Budget for the dismantling of import taxes under the agreement, even though this has not gone into effect. Thus the government is benefiting from the exchange surcharge, an increased ITBIS, income tax and transitory tax on imports. The government had argued DR-CAFTA would go into effect on 1 January 2006.
Link To Original Article (http://www.dr1.com/index.html#3)