Defending DR-CAFTA

[NewsWhore]

Business representatives say that external factors are to blame for the continued high prices of products that are now tariff-free as part of the DR-CAFTA free trade agreement. On Saturday the agreement, which was touted as a strengthening tool for the Dominican economy, will have been in place for one year but not much has been voiced in regards to the successes or failures of the agreement. Representatives from the Industrial Federation Association (FAI), the National Young Entrepreneurs Association (ANJE) and the National Wholesalers Association (ASODAI) agree that tariffs and reevaluation of imported goods, among other things, have been the reasons why prices haven't gone down. El Caribe cites a report by the Customs Department (DGA) indicating that DR-CAFTA has cost the DR RD$2.54 billion in its one-year existence. Ignacio Mendez of the FAI says that the reevaluation of products has led to a price increase in some cases. Pablo Piantini of ASODAI says that some products are directly affected by the increase in the ITBIS (VAT) tax and this has led to price increases.

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