NewsWhore
01-30-2007, 04:00 PM
In an opinion piece in the Listin Diario on Monday, the government's chief trade negotiator Julio Ortega Tous wrote to differ with the criteria of the president of the Santo Domingo Chamber of Commerce who last week called for a halt to free trade agreement negotiations in order to give time for DR-CAFTA to set in. Ortega explains that to do so would be to create a monopoly in favor of US imports, and that this would be detrimental to Dominican consumers. He mentions the case where DR-CAFTA establishes that vehicle imports will see 20% reduction of taxes each year, which means that in five years, US vehicles will not pay taxes. He points out that nevertheless, it is known that US vehicles are high fuel consumers, not the most technologically advanced, and lower quality, as the industry is less efficient compared to its counterparts in Europe, Japan and Korea. "To deliver our country to the US automobile industry with such a tax advantage, without extending the same advantages to European and Asian countries, would be like shooting ourselves in the foot," he points out. He says that the dilemma is whether the DR should declare a moratorium on other trade negotiations, and seek to fully integrate with the US or bet on the diversification of markets, both of suppliers and providers. He responds that our country's very historical location and its historic ties are why we should strive for greater diversification, without diminishing the importance of the US as our main market.
He stresses that because the DR is a signatory of World Trade Organization agreements, this means we have growing commercial commitments that call for elimination of subsidies. He highlights the fact that it is better to prepare for this instead of clinging to protections when the trend is for these to disappear.
He believes that the DR will be better off diversifying its markets with competitors such as the Europeans, the Asians and the South Americans, as well as with Canada, Chile and Mexico, the other NAFTA country signatories, instead of delivering a monopoly on access to our market to the US.
He concludes that trade policy should be at the center of economic policy, and that economic policy is not only about fiscal balance, monetary stability and low inflation. He says that decisions about opening trade policy are crucial. He says this unity of opinion with the private and public sector is the reason for Chile's success, its increased poverty reduction and development.
He calls for in-depth discussions with the private sectors and leading cabinet members under the umbrella of the National Commission for Trade Negotiations (CNNC).
More... (http://www.dr1.com/index.html#3)
He stresses that because the DR is a signatory of World Trade Organization agreements, this means we have growing commercial commitments that call for elimination of subsidies. He highlights the fact that it is better to prepare for this instead of clinging to protections when the trend is for these to disappear.
He believes that the DR will be better off diversifying its markets with competitors such as the Europeans, the Asians and the South Americans, as well as with Canada, Chile and Mexico, the other NAFTA country signatories, instead of delivering a monopoly on access to our market to the US.
He concludes that trade policy should be at the center of economic policy, and that economic policy is not only about fiscal balance, monetary stability and low inflation. He says that decisions about opening trade policy are crucial. He says this unity of opinion with the private and public sector is the reason for Chile's success, its increased poverty reduction and development.
He calls for in-depth discussions with the private sectors and leading cabinet members under the umbrella of the National Commission for Trade Negotiations (CNNC).
More... (http://www.dr1.com/index.html#3)