DR-CAFTA opportunities for expansion projects

http://www.dominicantoday.com 23/12/06

SANTO DOMINGO.- According to business publication Expansion Management.com, Caribbean nations such as the Dominican Republic offer business opportunities ranging from light manufacturing to service center activities to international finance. It also mentions the abundance of natural beauty, warm weather, and easy access to North American markets.

According to Expansion Management, many Caribbean nations qualify to take advantage of the Caribbean Basin Initiative (CBI) with the United States, a program to promote economic development through private sector initiative in Central America and the Caribbean islands.

It mentions the example of the Dominican Republic, where the Central America-Dominican Republic-United States Free Trade Agreement (DR-CAFTA) is expected to provide economic opportunities as the nation ramps up its investment opportunities.

“FDI is recognized as one of the major forces for growth in telecommunications, commercial, infrastructure and manufacturing,” said Eddy Martinez, minister for exports and investments for the Dominican Republic. “We have high expectations of reaching up to US$5 billion within the next three to five years.”

Officials believe DR-CAFTA makes the Dominican Republic more attractive for companies around the world to sell more cheaply to the United States. The Dominican Republic already enjoys near-shore advantages with low labor costs, tax incentives, excellent telecommunications and a world-class seaport/airport logistics infrastructure.

Many Caribbean nations qualify to take advantage of the Caribbean Basin Initiative (CBI) with the United States, a program to promote economic development through private sector initiative in Central America and the Caribbean islands.

But by moving operations to the Dominican Republic, companies would be in a better position to compete with Chinese products in terms of costs and delivery to North America. Key sectors that offer wide potential include medical device manufacturing, plastics and injection molding, precision metals, tooling, automotive parts, plastics, and electronics components.