January start for DR-CAFTA

http://www.dominicantoday.com 30/12/06

Santo Domingo.- Customs Director Miguel Cocco guaranteed yesterday that the free trade agreement signed with the United States and Central America will come into effect in mid-January. He affirmed that the treaty would be applied in a matter of days. “Eighteen or nineteen days, maybe less” he said, following a working session at Technical Secretary Temístocles Montás’s office.

Although the official said that “all was settled”, he didn’t provide details on how the authorities would replace income from lost tariffs. Cocco did not mention whether the government would make any adjustments to the tax reform.

On the question of the U.S. complaint about the tax reform’s effect on vehicle imports, Cocco commented: “There were different positions on this issue before it was approved, and the necessary adjustments were made”. In any case, the official said that the government feels satisfied with the steps taken in order for the treaty to come into effect.

According to Senate leader Reinaldo Pared Pérez, the U.S. call for the abolition of taxes on imported vehicles should have been made before the tax reform was approved. DR-CAFTA’s entry into effect has now been postponed as a result of the taxes imposed on vehicles as part of the tax reform that was announced by the Executive branch and recently approved by Congress.

Pared explained that if the suggestion had been made before, it would have allowed Congress and the government to study it. The legislators added that they would see whether the U.S. authorities complaint goes ahead in the next few days.