New obstacle for Dominicans to enter DR-CAFTA

http://www.dominicantoday.com 10/01/07

Santo Domingo.- The United States Trade Representative’s (USTR) office at the beginning of the week, has presented a new claim to the country referent to implementation of the Free Trade Treaty with Central America and the United States (DR-CAFTA).

The USTR, in charged of negotiating the agreement, questioned the intent to apply Norm 148 issued by the Industry and Commerce Ministry on fuel transportation, alleging that stipulations therein contradict the country’s obligations in light of the DR-CAFTA.

This new objection comes after the recent revision that was made regarding the selective tax on vehicle imports, rejected by the USTR as contradictory with terms of the trade accord.

Prior to this, other measures questioned by the United States involved a 2% over imports and a 13% exchange commission. The U.S. had also objected a 25% levy on imports of corn syrup, proposed in the 2005 tax reform. These charges were eliminated.

The Dominican business sector has vocally considered that, in light of the DR-CAFTA trade accord, society should assume participation in the matter and that the government should be more coherent and “filter” measures and actions so as to avoid errors that denote ignorance on the trade accord.