Wednesday, August 6, 2025

US Trade with Dominican Republic 8-6-25

The Dominican Republic's primary trade agreement with the U.S. is the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). This agreement, which entered into force for the Dominican Republic on March 1, 2007, aims to: 

·       Eliminate tariffs and trade barriers.

·       Reduce barriers to services.

·       Promote transparency.  

It's important to note that CAFTA-DR has been instrumental in eliminating most tariffs on goods between the two countries, with the remaining tariffs scheduled for elimination by January 1, 2025. This means that nearly all qualifying U.S. and Dominican Republic goods will enter each other's markets duty-free under the agreement. 

However, some recent developments have sparked concern. In late 2024, the Dominican Republic signed into law two policy directives regarding food security that appear to contradict the spirit and purpose of CAFTA-DR, particularly in relation to the rice market. These policies are concerning to U.S. rice exporters, especially as the market was set to become fully open for U.S. rice exports on January 1, 2025, following a 17-year phase-out of quotas and duties. 

Despite these issues, the U.S. and the Dominican Republic remain important trade partners, with strong bilateral economic ties reinforced by geographic proximity, cultural connections, and a large Dominican diaspora in the U.S.. The U.S. continues to engage with Dominican authorities to address trade concerns and promote a stable and mutually beneficial trade relationship within the framework of CAFTA-DR. 

The Dominican Republic's primary trade agreement with the U.S. is the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). This agreement, which entered into force for the Dominican Republic on March 1, 2007, aims to: 

·       Eliminate tariffs and trade barriers.

·       Reduce barriers to services.

·       Promote transparency.

It's important to note that CAFTA-DR has been instrumental in eliminating most tariffs on goods between the two countries, with the remaining tariffs scheduled for elimination by January 1, 2025. This means that nearly all qualifying U.S. and Dominican Republic goods will enter each other's markets duty-free under the agreement. 

However, some recent developments have sparked concern. In late 2024, the Dominican Republic signed into law two policy directives regarding food security that appear to contradict the spirit and purpose of CAFTA-DR, particularly in relation to the rice market. These policies are concerning to U.S. rice exporters, especially as the market was set to become fully open for U.S. rice exports on January 1, 2025, following a 17-year phase-out of quotas and duties. 

Despite these issues, the U.S. and the Dominican Republic remain important trade partners, with strong bilateral economic ties reinforced by geographic proximity, cultural connections, and a large Dominican diaspora in the U.S.. The U.S. continues to engage with Dominican authorities to address trade concerns and promote a stable and mutually beneficial trade relationship within the framework of CAFTA-DR. 

https://www.google.com/search?q=us+trade+deal+with+sano+dominican+republic+2025

The Dominican Republic's nominal GDP for 2025 is projected to be around $134.1 Billion US dollars. In 2025, the Dominican Republic's nominal GDP per capita is estimated to be $11,740. The estimated population of the Dominican Republic for 2025 is 11,532,151. The unemployment rate in the Dominican Republic for 2025 is projected to be around 5.3%

Trade with the US (May 2025): The Dominican Republic had a negative trade balance (deficit) of $397 million with the United States in May 2025. Exports to the US were $662 million, and imports from the US were $1.06 billion. This represents a decrease in both exports (-6.65%) and imports (-6.68%) compared to May 2024.

https://www.google.com/search?q=dominican+republic+trade+balance+2025&

General 10% reciprocal tariff: A 10% reciprocal tariff was applied to most Dominican products imported into the United States starting April 5, 2025 as part of a broader US government measure.

https://www.google.com/search?q=us

Comments

The Dominican Republic sits on an island and shares a border with Haiti.  

Norb Leahy, Dunwoody GA Tea Party Leader

No comments: