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NewsWhore
07-06-2007, 05:00 PM
An antiquated mentality and resistance by Dominican businesses to work with Central American and Caribbean countries has impeded Dominicans from benefiting from the free trade agreements in effect with Central America and the Caribbean since 2001, panelists participating in a workshop on the "Progress and Obstacles in Benefiting from the FTA between Central America and the DR," sponsored by Hoy newspaper said yesterday. The conclusion was that Dominicans have dedicated themselves to serve the local market and protect their local market share, and have been timid to test export opportunities.
Panelist Diego Eleta, president of the Federation of Central American Chambers of Commerce, explained that the DR has acted with an island mentality and has focused more on serving the local market. "We have before us opportunities, and many times the barriers are more mental than real," he said.
Eleta says that the DR needs to stop focusing on the north-south relationship with the US. He said that despite the fact that 80% of the DR's trade is with the US, trade needs to be diversified. Markets in Central America, the Caribbean, Europe, and South America should be tapped by Dominican businessmen.
Central American exports to the DR in 1999 were US$100 million (excluding Panama). By 2006, they had increased to US$260 million. Meanwhile DR exports to Central American were US$20 million in 1999, but had only moved to US$48 million in 2006.
Other panelists were Manuel Madriz Forno, Trade Director of the Association of Caribbean States (ACS); Vinicio Mella, of the Federation of Central American Chambers of Commerce in the DR and Vilma Arbaje, manager of trade agreements for the Ministry of Industry and Commerce, and businessman Jose Corripio.
Vinicio Mella said Dominicans have resisted exploring business opportunities in Central America, despite this being an important market with millions of consumers. He mentioned that only nine Dominican companies signed up for an exploratory trade mission to Guatemala in June organized by the Center for Exports and Investment (CEI-RD).
He explained that the response from Central American businessmen to the FTA with the DR has been the opposite. He described as an "avalanche" the coming of Central American businessmen seeking to introduce their products to the Dominican market within the FTA. Mella is vice president of Molinos Modernos, the largest flour mill in the DR, now a Guatemalan company. Mella also highlighted that with the implementation of DR-CAFTA, there are new opportunities for exports and challenges to be competitive.
Madriz Forno, of the ACS, advocated that the DR can work with the Caribbean in regards to production and marketing of bananas, tobacco, sugar, rum and coffee. Madriz says that the DR as a member of Cariforum should serve as a connection point between CA and the Caribbean Community. He says that the follow up is what makes a trade agreement work. He explained the ACS has set the areas of transport, sustainable tourism, natural disasters and trade as the four focal points for regional collaboration. He highlighted that the difficulties of transport have been a major obstacle to increased trade and integration.
Vilma Arbaje, of the Ministry of Industry and Commerce, highlighted the inequality and trade and that Costa Rican exports to the DR represent 48.5% of the volume of Central American exports followed by those of Guatemala, El Salvador, Honduras and Nicaragua.
Businessman Jose Corripio said that the DR has become too dependent on expatriate remittances and tourism and says that it's not something that a country's economy should depend so heavily on. He urged Dominican businessmen to test export markets, with small pilot projects.

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