July 2007

METAL EXPORTS OVER US$20 MILLION

The Director of the Investment and Export Centre of Dominican Republic confirmed that metal waste exports represent an annual income of US$20 million. This increase responds to the international demand that scrap waste and other metal based products have generated, as a result of a constant recycling process.

Moreover, he expressed that the institution is working on a project proposal that will regulate the international metal exports and shall avoid the theft of such materials for resale. In the meantime, he recommended to the enforcement and order institutions to prevent the theft of such material either for export or any other purpose.

AGRO EXPORTS INCREASE 41%

According to the statistics provided by the Export and Investment Centre and Customs Directorate, agricultural exports increased in US$12.7 million in the first four months of this year, when they increased from US$31 million to US$43.7 million in comparison to 2006. Amongst the products on peak demand are fresh bananas, organic avocado, fresh aubergine and peppers.

Main export destinations are United States, Canada, Holland and Puerto Rico.

This increase is remarkable after the implementation of DR-CAFTA.

NEW ETHANOL PLANT IN BOCA CHICA

Brazilian entrepreneurs announced the investment of US$80 million in 60 days for the installation of an ethanol production plant in Dominican Republic. The project will operate in Boca Chica Sugar Mill and will have a second phase with a US$120 million investment.

CDD shall install a plant to the bio-fuel production in order to produce sugar cane based energy. This project foresees to produce two and a half million tons of sugar cane in its first phase. Labour to be employed shall include the current workers in the sugar cane production, as well as specialized technicians.

This initiative has been strongly supported by the President, who has expressed his interest in Brazil's active participation in ethanol's promotion in the Dominican Republic with the objective of supplying the United States, one of the parties of the Free Trade Agreement

300 CRUISE SHIPS TO THE COUNTRY

The deputy Minister for Tourism announced the arrival of 300 Cruise Ships transporting over 500,000 passengers during 2007-2008. The visitors represent an income of US$60 million for the country.

Cruise Ships industry contributes in over US$21 million to the region and because of its privileged geographical situation, the Dominican Republic is a transition port to other international ports.
The most used ports are currently Don Diego, in Santo Domingo, where an investment of US$50 million is being made, and La Romana. There are also arrival facilities at Isla Catalina and Samana, which are working under concessions contract with the private sector.

SENATE APPROVES THREE PROJECTS OF THE EXECUTIVE

The Senate of the Dominican Republic has approved in second lecture the Fiscal Amnesty project which reduces the income tax as well as the taxes on alcoholic drinks and tobacco, both submitted by the Executive Power.

With the Fiscal Amnesty law, they are trying to reduce the tax evasion levels; with the reduction of the Income Tax the main objective is to ensure that the productive sector has a competitive rate with the rest of the Central American countries which are part of DR-CAFTA; with the tax reduction project for spirits and tobacco aims to increase the sale of such products and its derivates.

*These projects were approved by both Chambers and announced by the Presidente last week.

CANADA OFFICIALLY CONFIRMS THE NEGOCIATION OF A DR-CAFTA WITH THE DOMINICAN REPUBLIC

Canada has officially published its intention of negotiating a free trade agreement with the Dominican Republic, Peru and Colombia, after signing a similar agreement with European Free Trade Association (EFTA).

The Negotiation mandate has been approved three months ago and was publicized in the context of the trade strategy towards Latin America. "The Government of Canada has indicated the intention of reconnecting with Latin America and the Caribbean".

Canadá has investments in the Dominican Republic of around US$1,800 million and bilateral commerce in 2006 was US$277 million.