RESTRICTED  
  
WT/TPR/G/435  
 
29 November  2022 
(22-8694) Page: 1/18 
Trade Policy Review Body  Original: Spanish  
 
  
TRADE POLICY REVIEW  
REPORT BY  
THE DOMINICAN REPUBLIC  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by 
the Dominican Republic is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on the Dominican Republic.  WT/TPR/G/435 • Dominican Republic  
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  Contents  
1  OVERVIEW (RECENT DEVELOPMENTS)  ................................ ................................ .........  3 
2  OVERVIEW  2015 -21 ................................ ................................ ................................ ..... 3 
3  ECONOMIC IMPACT OF THE COVID -19 PANDEMIC AND MEASURES ADOPTED  ..............  5 
4  ECONOMIC AND FINANCIAL RECOVERY (2020 –22)................................ ......................  7 
5  GLOBAL GEOPOLITICAL OVERVIEW AND OUTLOOK (2022)  ................................ ..........  8 
6  STABILIZATION AND NORMALIZATION OF THE ECONOMIC CYCLE (2019 -22) ...........  10 
6.1  National Development Strategy  ................................ ................................ ....................  10 
6.2  Competitiveness  ................................ ................................ ................................ .........  12 
6.3  Purchase of share s held by Petróleos de Venezuela, S.A. (PDVSA) in Refinería 
Dominicana de Petróleo S.A. (REFIDOMSA)  ................................ ................................ ..........  13 
6.4  Tariffs  ................................ ................................ ................................ .......................  13 
6.5  Agricultural sector  ................................ ................................ ................................ ...... 13 
6.6  Measures adopted to consolidate customs procedures  ................................ .....................  14 
6.7  Key elements for attracting foreign direct investment (FDI)  ................................ .............  15 
7  FUTURE POLICY DIRECTIONS  ................................ ................................ ....................  16 
 
 
  WT/TPR/G/435 • Dominican Republic  
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  1  OVERVIEW (RECENT DEVELOPMENTS)  
1.1.  The Dominican economy recorded average year -on-year growth of 5.6 % during the 
first six months of 2022 . The positive trend in economic activity during this period was driven by the 
recovery in tourism and the buoyancy of some sectors , such as construction, trade, transportation, 
farming , health, and manufacturing in free zones . Economic growth is expected to be around 5.0 % 
for the current year, close to its potential . Regarding employment, total employment in 
January -March  2022 was similar  to its level in the same quarter of 2019, prior to the pandemic, with 
record figures for the free zone sector in June 2022 and a 100 % recovery in jobs in the tourism 
sector.  
1.2.  Rising commodity prices as a result of the international geopolitical situation and value chain 
disruption – external factors that were more persistent than expected – caused a 5.48 % variation  
in the price level between  January  and July, while year -on-year inflation, as measured from 
July 2021 to July 2022, was 9.43 %. However, th e year-on-year consumer price index (CPI) figure 
for July 2022 fell 0.21% from the peak of 9.64 % recorded in April of  this year, which shows that 
year-on-year inflation is gradually easing, primarily due  to measures implemented  by the 
Government, in particular subsidizing  fuel on the local market and revers ing scheduled increases in 
the electricity tariff . In addition, a tighter monetary policy stance has been adopted, as a result of 
the ongoing normalization of that policy  together  with actions to remove excess liquidity from the 
economy, in order to anchor the expectations of economic agents and help to bring inflation into the 
target range within the policy horizon . 
1.3.  In view of the international financial situation, the Dominican financial system is stable, with 
sound balance sheets . Financial intermedia ries have adequate levels of assets, liabilities and equity . 
The ent ities' total assets amounted to DOP 2,865 million  in June 2022, putting year -on-year growth 
at 11.9 %. The increase in assets is due primarily to higher loans and investments . The performance 
of the main indicators of the consolidated financial system is stable and shows adequate levels of 
solvency, liquidity and profitability, as well as  a low level of risk in the credit portfolio.  
1.4.  The Dominican economy's external sector has con tinued to perform well , in spite of the 
international environment . On the one hand, total exports of goods during the first half of 2022 were 
16.5% higher than during the same period  the previous  year. At the same time, remittances totalled 
USD 4,861.1  million for the January -June period, down 7.6 % year on year, but up from  2019, pr ior 
to the pandemic . Tourism receipts were up  USD 1,980.7  million , thanks to year -on-year growth of 
92.5%, a clear indication that the sector is recovering . A sign of investor co nfidence in the country 
is that, according to preliminary figures, foreign direct investment  (FDI)  reached USD  1,870.9  million  
between January and June 2022, an increase of 8.0 % over the same period in 2021.  
1.5.  The positive trend in foreign exchange -generatin g activities contributed to the relative stability 
of the exchange rate, as reflected in an appreciation of the local currency of around 4.8 % at the end 
of June . Furthermore, international reserves grew to some USD 14,456 million , equivalent to roughly 
13.3% of gross domestic product (GDP) and about six months of imports, exceeding the metric s 
recommended by the International Monetary Fund (IMF).  
2  OVERV IEW 2015 -21 
2.1.  The Dominican economy experienced growth roughly in line with its potential, in a context of 
controlled inflation pressures, low twin deficits and a stable financial system.  
2.2.  Between 2015 and 2021, the Dominican Republic saw GDP grow  at an average annual  rate of 
5.1%, in line with its potential . This steady growth reflects the positive impact of the efficient 
coordination of monetary and fiscal polic ies, which has made it possible to strengthen 
macroeconomic fundamentals, thanks also to the positive commodity  supply shock of 2015-17. In 
addition, the diversification of the production structure and implementation of reforms helped to 
sustain the growth that was observed between 2015 and 2019, and contributed to a rapid economic 
recovery in 2021 following the cr isis caused by the spread of COVID -19. GDP per capita rose from 
USD 7,138.4 in 2015 to USD 8,971.9 at the end of 2021.  
2.3.  In recent years, this economic growth has been reflected in a stabilization of the open 
unemployment rate, which averaged 7.3 % in 2015 an d 7.4 % in 2021, according to the results of WT/TPR/G/435 • Dominican Republic  
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  the Continuous  National Labour Force Survey  (ENCFT) . Similarly, there was a significant reduction 
in poverty indicators and a concomitant expansion of the middle class , reflecting the improved 
quality of life of Dominicans . 
2.4.  Moreover, the positive supply shock and favourable structural conditions enabled  economic 
growth without generating inflationary pressures . Inflation was within the target range of 4.0 % (with 
a tolerance band of ±1.0%) throughout the 2015 -19 period . This stability, aided by the correct 
monetary policy management of the Central Bank of the Dominican Republic  (BCRD) , has kept the 
expectations of economic agents anchored, facilitated the private sector's investment and 
consumption decisions and helped to eliminate volatility that could affect the business climate and 
macroeconomic stability, laying the foundations for sustainable growth.  
2.5.  It is important to note that, according to the World Bank, at the end of 2019, the coun try was 
on track to meet the target of achieving high -income status by 2030 . However, in 2020, economic 
performance was significantly affected by the economic shutdown resulting from the COVID -19 
pandemic . Although the onset of the pandemic did not, by and  large, completely wipe out the 
economic achievements of the period, it brought the progress made under the  main indicators to a n 
abrupt  halt and posed a major challenge for the future.  
2.6.  During the period under review, the banking system performed well desp ite the economic 
effects of the COVID -19 pandemic, thanks to the monetary and financial policies implemented during 
the period and to the channelling of resources to domestic production sectors and households . In 
December  2021, total financial assets amoun ted to DOP 2,761.4  billion  (USD 48.6 billion ), of which 
88.0% (USD 42.8 billion ) was concentrated in full -service banks, 9.7 % in savings and loan 
associations, 1.9 % in savings and credit banks, 0.3 % in the National Development and Export Bank  
(Bandex) , and 0.1% in credit corporations.  
2.7.  The financial intermediation process was further established  throughout the review period . The 
total assets of the financial system amounted to 51.2 % of GDP in  2021, compared to 42.4% in 2015 . 
In that regard, financial system deposits increased from 39.4 % of GDP in 2015 to 39.8 % in 
December  2021, while in the same month the loan portfolio stood at 24.9 %, very close to historical 
values.  
2.8.  Microprudential indicators point to appropriate liquidity conditions and ad equate capitalization . 
In December  2021, the solvency ratio of the financial system was 19.1 %, and for full -service banks 
it was 16.4 %, exceeding the minimum levels required by local and international regulations by 10 % 
and 8 %, respectively . Furthermore, t he indicators for return on assets and return on equity were 
2.3% and 20.7 %, respectively.  
2.9.  The delinquency rate continued its downward trend, falling from 1.7 % in December  2015 to 
1.3% in December  2021. Non-performing loan coverage, calculated as the ratio  of provisions to 
non-performing loans, was 335.7 % in December  2021. In that regard, financial entities increased 
their provision ing levels  during the pandemic, despite the granting of regulatory waivers allowing 
them to voluntarily freeze their debtors' c lassifications and the respective provisions for a period of 
one year, after which the institutions must regularize the classifications in accordance with the Asset 
Valuation Regulations.  
2.10.   With regard to external accounts, the current account deficit averaged 1.5 % of GDP during 
the period 2015 -21, significantly lower than the 6.1 % recorded between 2008 and 2014 . This 
decrease in the deficit was due primarily to favourable terms of trade : on the import side, the prices 
of crude oil and its derivatives w ere low, and on the export side, the prices of gold and silver rose 
significantly . It should be stressed that, between 2015 and early 2020, prior to the outbreak of the 
COVID -19 pandemic, the positive trend in the real exchange rate that had emerged contin ued in a 
low-volatility environment . In addition, gross international reserves climbed from 
USD 4,861.8  million  at the end of 2014 to the high levels observed in December  2021 of 
USD 13,034.0  million , equivalent to 5.6 months of imports . As at 3 0 June 2022, reserves amounted 
to USD 14,456 million . 
2.11.   With respect to fiscal outlook, during the period 2015 -19, consolidated public sector deficit 
averaged 2.6% of GDP, lower than the 3.8 % of GDP for the fiscal years from 2008 to 2014 . In 2020, 
increased spending to  cope with the effects of the COVID -19 pandemic, coupled with a shortfall in WT/TPR/G/435 • Dominican Republic  
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  revenue due to the shutdown of economic activity, resulted in a deficit of 7.9 % of GDP . However, 
this has been reversed thanks to the economic recovery, administrative efforts aim ed at maximizing 
revenue collection, and the rationalization of spending, bringing the deficit down to 2.9 % of GDP, 
with an average for 2015 -21 of 3.4 % of GDP . Since 2021, the Dominican Government has focused 
its public debt strategy on increasing its borr owing from multilateral and bilateral sources , 
minimizing financing risk, and reducing the proportion denominated in foreign currency . By 2021, 
as a result of public debt management, the average cost of non -financial public sector debt had been 
reduced by 9 basis points, and the average portfolio life had been extended from 12.0 to 12.2 years.  
2.12.   During the period under review, the Dominican Republic made significant progress in the areas 
of payment systems and cybersecurity1, which contributed to the growth of the domestic financial 
market and the development of an ecosystem of fintech companies . Particular attention is drawn to  
the involvement of the BCRD  as manager of a cross -border payment system called the Central 
American  Interconnected Payment System  (SIP), which is linked to the settlement systems of the 
central banks of the member States of the Central American Monetary Council (CMCA) : Guatemala, 
Costa Rica, Honduras, Nicaragua, El Salvador and the Dominican Republic . This system allows 
payments between these countries to be settled in real time and is used to process intra -regional 
payments.  
2.13.   In order to ensure information integrity, availability and confidentiality, along with the optimal 
functioning of the information systems and technological infrastructure of the System of Payments 
and Settlement of Securities of the Dominican Republic  (SIPARD) , the Monetary Board, by means of 
its Second Resolution of 1 November  2018, adopted the Cyber - and Information Security 
Regula tions, whose scope covers financial intermedia ries, payment system administrators and other 
SIPARD participants, in addition to support entities and related services interconnected with financial 
intermedia ries and SIPARD . 
2.14.   In the area of cyber - and informa tion security, the Sectoral Council for Financial Sector 
Cybersecurity Incident Response and the Financial Sector Cybersecurity Incident Response Centre 
(SPRICS) were set up and their capacities were strengthened, enabling them to adopt preventive 
measures  to protect against cybersecurity threats . Furthermore, in order to promote the correct 
implementation and management of the controls established in the Cyber - and Information Security 
Regulations, an automated self -assessment tool was made available to th e participants.  
3  ECONOMIC IMPACT OF THE COVID -19 PANDEMIC AND MEASURES ADOPTED  
3.1.  When the pandemic was declared, the Dominican Republic had strong macroeconomic 
fundamentals, reflected in dynamic growth, near-target inflation, and low public and external 
deficits, which allowed the economy to weather the negative effects of the measures adopted to 
tackle the health emergency.  
3.2.  It was to be expected that the global impact of the COVID -19 pandemic would significantly 
affect the Dominican economy . In this regard, the local spread of the coronavirus in the country led 
to the implementation of stringent lockdown measures, the temporary closure of non -essential 
productive activities, restrictions on freedom of transit, and the closure of the maritime, land and  
air borders, among other measures . This caused a contraction in external demand, consumption and 
investment, and a severe drop in the value added of the vast majority of economic activities, 
especially in key sectors such as construction and tourism . Specifically, real GDP shrank by 6.7 % in 
2020, and GDP per capita in United States dollars fell back to 2016 levels.  
3.3.  Regarding the labour market, the average open unemployment rate was 5.8 % in 2020, which 
was lower than in 2019, but it fluctuated during the ye ar owing to the COVID -19 pandemic . In 
particular, in the second quarter of 2020, active job searching was limited by lockdown measures 
 
1 Article 15 of Monetary and Financial Law No. 183 -02, which was enacted in 2002, establishes that "the 
Central Bank is responsible for payment system oversight and final settlement". Moreover, Article 27 of the 
Law provides that "the Monetary Board's fundamental objective in regulating the organization and function ing 
of the clearing and settlement system shall be to ensure the immediacy and smooth processing of payments". 
To this end, under the powers conferred by Article 4 of the Law, the Monetary Board, through its 
Sixth Resolution of 19 April 2007, approved the Payment Systems Regulations, which on that date became the 
first regulations on the matter to have a broader scope, establishing "the legal regime and procedures 
applicable to the System of Payments and Settlement of Securities of the Dominican Republic (S IPARD)".  WT/TPR/G/435 • Dominican Republic  
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  and restrictions on movement , causing the unemployment rate to reach 3.2 %, as this element is 
crucial in the definition o f the indicator . Furthermore, these limitations had a significant impact in 
that a large part of the labour force temporarily became absent workers, who are considered 
employed according to the guidelines of the International Labour Organization, an elemen t that also 
contributed to a lower unemployment rate during this period.  
3.4.  In the third and fourth quarters of 2020, the labour market began to return to normal, with 
fewer absent workers (7.1 %) and a higher open unemployment rate (7.4 %), reflecting the impa ct 
of the pandemic on active job seeking . However, there was also an increase in the number of people 
employed in these quarters, mainly as a result of the relaxation of lockdown measures and the 
partial reopening of economic activities . On a separate note , the pandemic brought the progress  
made  in poverty reduction  to a temporary halt . 
3.5.  Meanwhile, inflation reached 5.55 % in 2020, the first time it had exceeded  the upper limit of 
the monetary programme's target since the implementation of the inflation -targeting scheme . It 
should be noted that this indicator was subject to cost shocks owing to weather events that affected 
the supply of some foods, such as the drought at the beginning of the year and tropical storms that 
struck the country in the third quarter  of 2020 . In addition, the hike in prices that year reflected the 
increase in the international price of oil and its derivatives and in that of various imported inputs.  
3.6.  The regulation of the financial system has fostered national financial stability by cre ating the 
conditions needed to provide financing to the productive sectors, strengthening the operational 
framework of financial and foreign exchange intermediaries during the COVID -19 pandemic . In 
response to this situation, the Monetary Board and the BCRD  adopted a series of financial regulation 
measures to alleviate the financial burden on households and companies, and increase the provision 
of financing and liquidity through financial intermedi aries. The main objective of these measures has 
been to reduce systemic risk and promote the revival of economic activities in an environment of 
monetary, exchange rate and financial stability.  
3.7.  At the beginning of the pandemic, the Monetary Board put in pl ace a series of measures to 
provide liquidity, in both local and foreign currency, through the freeing up funds from the legal 
reserve . Subsequently, the Board approved a facility for the provision of liquidity through repurchase 
agreements denominated in local and foreign currency, and monetary resources were also granted 
through the Rapid Liquidity Facility to be channelled through financial intermediaries in the form of 
credit to the productive sectors, households and micro -, small and medium -sized enter prises  
(MSMEs) . These provisions were accompanied by special, transitory regulatory treatment aimed at 
creating favourable conditions for debtors and the financial system.  
3.8.  In fact, by the end of 2021, the monetary stimulus plan amounted to more than DOP  215 billion 
and USD 622 million , equivalent to 5.0 % of Dominican GDP, to provide liquidity to financial 
institutions to channel financing to the national productive sectors, making it one of the largest 
monetary and financial stimulus packages in the Central  American and Caribbean region . These 
programmes and facilities have benefited more than 92,000 users, promoting the expansion of loans 
in local currency.  
3.9.  The external sector was not exempt from the adverse effects of the COVID -19 pandemic . 
Overall, the cu rrent account deficit worsened from 1.3 % of GDP in 2019 to 1.7 % in 2020, mainly as 
a result of two factors : a deterioration in the balance of goods and services, partly offset by an 
increase in remittance inflows.  
3.10.   First, exports of goods and services shrank by 27.4 %, with a considerable drop  of 64.2 % in 
tourism revenues, caused by mobility restrictions imposed during the pandemic . At the same time, 
in view of the contraction in demand, imports of goods and services fell by 17.2 %, which offset the 
drop in exports . Overall, this resulted in a 34.7 % larger deficit in the balance of goods and services . 
It is worth noting that, with the reopening of tourism and the revival of exports from free zones, 
signs of recovery beg an to appear in the second half of 2020.  
3.11.   Second, the Dominican Republic received remittance flows of about USD 8,219.2  million  in 
2020, up 16.0% from 2019. This increase was due mainly to the economic assistance provided by 
remitting country governments to  members of the Dominican diaspora residing in their economies . 
It should be noted  that, at the beginning of the pandemic, the outlook was for a slump  in remittance WT/TPR/G/435 • Dominican Republic  
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  flows worldwide ; however, the opposite was observed in most remittance -receiving countries . This 
increase largely offset the adverse impact of the contraction in global demand, so that, in 2020, the 
current account deficit did not worsen significantly.  
4  ECONOMIC AND FINANCIAL RECOVERY (2020 –22) 
4.1.  A proactive public policy response coupled with a di verse and flexible economy enabled the 
Dominican Republic to return to pre -pandemic production levels in late 2021.  
4.2.  The economic results for 2020 shows that, according to the monthly indicator of economic 
activity, the most critical point in the crisis occ urred in April ( -29.8%) and then, from May onwards, 
the economy began to recover, a trend that would continue throughout 2021, driven by the effective 
coordination of monetary and fiscal policies, the easing of lockdown measures, and gradual rebound 
of dom estic productive activities and international trade . Likewise, progress in implementing the 
National Vaccination Plan and the Responsible Tourism Recovery Plan in response to COVID -19 had 
a significant impact on these results . Altogether, this has been cru cial for stimulating economic 
activities and domestic demand, namely, consumption and investment.  
4.3.  Specifically, in 2021, real GDP grew by 12.3 % year-on-year. When comparing economic activity 
levels in 2021 and 2019 in order to isolate the statistical effec t of the 2020 baseline, it should be 
noted that the 2021 levels in real terms are 4.7 % higher, reflecting an upturn and exceeding the 
levels seen prior to the outbreak of the COVID -19 pandemic . This resulted in a GDP of over 
USD 94 billion  and a GDP per ca pita of USD 8,971.9.  
4.4.  This positive performance also had a favourable impact on the labour market . The average 
open unemployment rate was 7.4 % in 2021 . This indicator increased compared with 2020 because 
a large proportion of the previously inactive population began looking for work again with the 
relaxation of restrictions on business operating hours and freedom of movement, thereby placing 
upward pressure on this indicator.  
4.5.  During the October -December quarter in 2021, employment reached a total of 4 ,682,079 
(including formal and informal employment), up 267,478 (6.1 %) from 4,414,601 workers in the 
same period of the previous year . The employment level reached in October -December  2021 is 
statistically equal to the level in the same quarter of 2019, in dicating a return to the employment 
levels of the period prior to the onset of the COVID -19 pandemic . A number of poverty indicators 
also began to gradually decrease again in 2021.  
4.6.  Lastly, with regard to inflation, for much of 2021, annual inflation was im pacted by a 
broad -based global supply shock, in particular higher prices for oil, food and other primary goods, 
higher freight rates due to container shortages, and other pandemic -related supply chain 
disruptions . This resulted in significant increases in the cost of the main imported raw materials and 
finished goods, mainly affecting domestic prices of fuels and foodstuffs in the basket of goods . This 
led inflation to deviate from its expected path, with it reaching 8.5 % by the end of 2021.  
4.7.  In order to off set the effects of external factors on prices, a monetary standardization plan has 
been implemented through increases in monetary policy interest rates and liquidity control 
measures, to help bring inflation into the target range . The aim of this monetary normalization 
process is to avoid the risk of overheating the economy, which could worsen external inflationary 
pressures.  
4.8.  The economic and financial policy measures implemented to mitigate the effects of the health 
crisis proved effective in reviving the economy . These measures promoted liquidity in the market, 
leading financial institutions to increase their share in the securities market, in order to maintain 
appropriate profitability levels throughout 2021 . In this regard, liquidity coverage levels rema in 
favourable, with surpluses of more than DOP 567,302.4  million  towards the end of 2021, supported 
by growing investment, which was up by almost 40.0 % compared with 2020.  
4.9.  Credit to the private sector also grew by 11.8 %, boosted by loans to the trade and c onsumer 
sectors . Household debt is on a par with pre -COVID -19 levels . These loans represent around 13.6 % 
of GDP and had grown by 11.0 % by the end of 2021 . Likewise, corporate sector lending continued 
to grow at a positive year -on-year rate of 12.6 %, buoyed  by loans to the construction and WT/TPR/G/435 • Dominican Republic  
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  manufacturing industries . The level of corporate and household credit risk exposure was limited . 
After reaching levels above 2.0 % in 2020, the delinquency rate declined, falling to approximately 
1.3% by the end of 2021.  
4.10.   At the aggregate level, the financial system has adequate provisions to cover all past -due 
loans . In March  2021, a number of entities began implementing the phased provisioning programme 
stipulated by the Monetary Board, relating to loans and receivables pro vided from funds released 
through liquidity facilities in 2020 . The phased provisioning process is ongoing, however, the 
estimated provisions are close to those made by financial intermediaries, so the gap is narrowing . 
For this reason, provisions have rea ched levels that exceed the historical average.  
4.11.   The Dominican Republic is exposed to external shocks and, as such, since 2021 it has felt the 
impact of supply and demand imbalances, supply chain disruption and, since the start of 2022, the 
effects of the c onflict in Eastern Europe, factors that have exacerbated inflationary pressures 
globally . In this context, the BCRD has implemented a phased monetary policy normalization plan, 
which provides for the gradual and orderly repayment of the liquidity provided during the COVID -19 
pandemic, some DOP 85 billion  of which has been recovered to date . Likewise, since 
November  2021, the monetary policy interest rate has increased by 350 basis points, standing at 
6.50% in May 2022. 
4.12.   These measures have helped to accelerate the monetary policy transmission mechanism, 
contributing to an adjustment in domestic interest rates and a significant slowdown in the growth of 
monetary aggregates . In this active monetary policy context, the BCRD will continuously monitor 
international financial conditions and economic agents' expectations, to take the necessary steps to 
bring inflation gradually into the target range over the monetary policy horizon.  
4.13.   During the pandemic, and following the global reopening , the country's export s of goods and 
services grew significantly, in line with the domestic economic recovery . However, demand for 
foreign goods and services also rose which, combined with price increases in international markets, 
led to a deterioration in the current account d eficit from 1.7 % of GDP in 2020 to 2.8 % of GDP in 
2021.  
4.14.   Non-resident air passenger arrivals went up from 2,405,315 travellers in 2020 to 4,994,313 
in 2021, a jump of 107.6 %. This resulted in tourism growing by 112.6 %, demonstrating the sector's 
post-pandem ic recovery . The health policy package, notably the successful vaccination programme 
implemented by the Dominican Government between 2020 and 2021, was key to the upswing in 
tourism . Likewise, domestic and free zone exports saw substantial increases, by 19 .9% and 21.8 % 
respectively . Family remittances also reached a record USD 10,402.5  million , up 26.6 % on 2020, 
which was also driven by government aid schemes to mitigate the impact of the pandemic, mainly 
in the United States.  
4.15.   Meanwhile, imports of goods an d services surged by 40.6 % compared to 2020, partly due to 
prevailing global inflation levels . While this increase led to a deterioration in the current account 
deficit, this trend reflects an improvement in domestic demand for foreign goods and services a nd 
is in line with the economic growth seen in 2021.  
5  GLOBAL GEOPOLITICAL OVERVIEW AND OUTLOOK (2022)  
5.1.  The deterioration in global economic conditions has hit the local economy, causing a shift in 
the monetary policy stance and the introduction of government  subsidy programmes to lessen the 
impact of higher commodity prices on the Dominican people . The outlook for growth thus remains 
positive, albeit more modest, while inflation is expected to be brought into the target range over the 
monetary policy horizon.  
5.2.  The Dominican economy has continued to perform well in 2022, recording average 
year-on-year growth of 5.6 % in the first six months of the year . This positive trend in economic 
activity has been driven by the recovery in tourism and the buoyancy in constru ction, trade, 
transportation, farming and fishing, health, and manufacturing in free trade zones . Going forward, 
the growth prospects for the Dominican economy remain good, even if they have been tempered by 
prevailing global uncertainty . In this connectio n, economic growth is expected to be around 5.0 % 
for the current year, close to its potential.  WT/TPR/G/435 • Dominican Republic  
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  5.3.  Inflation rose 5.48 % between January and July, while year -on-year inflation, as measured from 
July 2021 to July 2022, was 9.43 %. Domestic inflation, like economies the world over, continues to 
be affected by external factors that have been more persistent than expected, notably rises in 
commodity prices for products traded on international markets . However, the year -on-year 
CPI figure for July 2022 fell 0.2 1% from the peak of 9.64 % recorded in April of this year, which 
shows that year -on-year inflation is gradually easing . This is partly due to measures implemented 
by the Government, in particular subsidizing fuel on the local market and reversing increases in the 
electricity tariff scheduled for the July -September quarter of 2022 . In addition, a tighter monetary 
policy stance has been adopted, as a result of an increase in the monetary policy rate and a reduction 
in excess liquidity, to help to bring inflati on into the target range within the policy horizon.  
5.4.  Soaring global inflation in the wake of the conflict between the Russian Federation and Ukraine 
has produced another global aggregate supply shock . In this connection , local food production 
commodities, s uch as maize, wheat, barley and soya beans, together with fertilizers, have seen 
steep price increases in recent months . In addition, the price per barrel of West Texas Intermediate 
(WTI) crude oil has topped the levels reached during the 2008 financial cr isis. International container 
transport costs also remain high, which has hit the prices of imported consumer goods . In this 
context, the monetary authorities remain attentive to international financial conditions and economic 
agents' expectations, and con tinue to take the necessary steps to bring inflation gradually into the 
target range of 4 % (with a tolerance band of ± 1 %) over the monetary policy horizon.  
5.5.  The key findings of the financial stability analysis suggest that financial intermediaries are 
expected to maintain limited exposure to internal and external risk factors in 2022, in line with the 
Dominican Republic's economic recovery, the normalization of monetary conditions and the gradual 
repayment of resources granted through the various liquidity facilities . Furthermore, financial risks 
are expected to remain low, given prevailing market conditions.  
5.6.  The recent performance of the global economy and the inflationary impact of ongoing 
geopolitical conflicts, external shocks and service cost adjustment s have tempered the growth 
prospects for the local economy.  
5.7.  In its role as regulator of the financial system and executor of macroprudential policies, the 
BCRD will continue to monitor the trends of the main financial indicators and assess the financial 
soundness of financial intermediaries, in order to take prompt action to help preserve financial 
stability and limit the build -up of systemic risk.  
5.8.  From the second half of 2021, there were signs of a moderate rate of economic growth and a 
recovery in employment in both advanced and developing economies, as inflationary pressures and 
persistent supply shocks, ranging from supply to labour shortages, began to loom increasingly large 
on the international balance of risks . Similarly, the emergence of the n ew Omicron variant of 
COVID -19 led multilateral agencies and governments worldwide to revise their macroeconomic 
forecasts, in the face of the risk of a reintroduction of restrictive measures . As the months go by, 
the increasingly obvious incongruity betwe en high foreign demand for goods and services following 
the economic reopening and the disruptions to global supply and distribution chains, has been 
exacerbated by the impact of the conflict between the Russian Federation and Ukraine since late 
February  2022, which has significantly increased business cost structures and final consumer prices.  
5.9.  Despite these adverse circumstances, the lifting of COVID -19 restrictions, thanks to the 
effectiveness of the Dominican Republic's health measures and monetary stimu lus policies, which 
reached 5.0 % of GDP, pushed year -on-year GDP growth of the domestic economy up to around 
12.3% over the 2021 -22 period and 4.7 % in 2019, the year before the pandemic hit.  
5.10.   Many North American and European economies continued to pursue expansionary fiscal and 
monetary policies, while the risk of de -anchoring inflation expectations put central banks in a 
quandary as to how and when the appropriate adjustments should be made to tighten these policies, 
without jeopardizing the post -pandemic recovery process still under way in many economies . The 
persistence of external shocks and the Dominican Republic's healthy economic performance led the 
BCRD to act promptly and implement a plan to normalize its monetary policy from the end of 2021 . 
Under this new scheme, the BCRD sought to reduce excess liquidity through open market operations 
and increases in the policy interest rate, which has risen by nearly 350 basis points since 
November  2021. WT/TPR/G/435 • Dominican Republic  
- 10 - 
  5.11.   The conflict between Ukraine and the Russian Feder ation and the sanctions imposed as a 
result on the latter have triggered high levels of volatility in international markets . In the case of 
commodities, in which the Russian Federation has a significant global share of exports in goods such 
as natural gas,  wheat, crude oil, nickel, fertilizers and coal, international prices have reached historic 
levels not seen since 2008 . As a net buyer of commodities, the Dominican Republic imported around 
USD 656.6 million  in goods, including soya beans, wheat, maize, su gar and fertilizers in 2021 . 
Despite this, its highly diversified basket  of imports and exports and limited trade exposure to the 
Russian and Ukrainian markets, meant that these goods accounted for only 6.2 % of the total primary 
goods brought into the coun try in 2021.  
5.12.   In addition, the external sector of the Dominican economy has proved resilient and sufficiently 
adaptable in the face of adverse external shocks . Accordingly, the positive performance of total 
exports, with a year -on-year increase of 15.4 %, pushed their overall value to close to 
USD 4,521.8  million  between January and April 2022. Should national exports (19.8 %) and free 
trade zones (12.1 %) both continue to perform well, the current account deficit is forecast to reach 
around 3.0 % of GDP by the end of 2022, a gap to be financed in full by the USD 3.5 billion  that the 
economy is expected to receive in FDI by year -end, according to BCRD projections.  
5.13.   Likewise, the rapid recovery in tourism and nearly USD 10 billion  in family remittances 
expected in 2022 will lead to stronger foreign exchange inflows into the Dominican economy . These 
foreign currency revenues will be essential to keeping the exchange rate relatively stable, which, by 
31 May 2022, had appreciated 3.2 % compared to the same date in 2021 . The timely accumulation 
of international reserves, a major factor in dealing with episodes of volatility and adverse shocks, 
has served as the basis for the BCRD's projected levels of close to USD  13,360.2  million by the end 
of 2022, equivalent to 12.3 % of GDP and 5.5 months of import cover, which is considerably higher 
than the parameters recommended by the IMF to maintain a strong external position.  
5.14.   The Dominican Republic, as an open economy, is no stranger to the collateral effects of the 
current intern ational climate, including the restrictive monetary stances adopted by various 
economies, which could mainly affect the oil bill and tourism . However, the underlying buoyancy of 
the Dominican economy and the right monetary policy stance improve the country 's external 
position, as shown by the increase in the main generators of foreign exchange . Therefore, the 
outlook for the country until the end of 2022 is positive . The year -end forecasts of various 
international organizations, investment banks and credit rating agencies are the same . The IMF and 
the World Bank, for example, estimate GDP growth for the Dominican Republic of around 5.5 % and 
5.0%, respectively, for 2022, which would place the country among the economies with the highest 
levels of expec ted economic expansion in Latin America and the Caribbean.  
6  STABILIZATION AND NORMALIZATION OF THE ECONOMIC CYCLE (2019 -22) 
6.1  National Development Strategy  
6.1.  Between 2015 and 2022, the Government of the Dominican Republic has reiterated its 
commitment to implem ent Law No. 1-12 establishing the National Development Strategy 2030 
(END 2030) and its implementing regulations, through Decree No. 134-14, as the main tool for 
coordinating its goals and lines of action to achieve development in the framework of a partic ipatory 
democracy that guarantees the social and democratic rule of law and promotes equity, equal 
opportunities and social justice, among other highly important issues.  
6.2.  Over the years, END  2030 has been implemented following the planning set out in variou s 
National Multi -Year Public Sector Plans that are aligned with the development strategy in an 
organized manner that is consistent with the Sustainable Development Goals and the Government 
Programme . Two further plans have been drawn up since then : in 2016 , the National Multi -Year 
Public Sector Plan (PNPSP) 2017 -20, and its updates, and, recently, the PN PSP 2021-24. 
6.3.  The PN PSP 2021-24 sets out the aspiration to develop an intuitive, functional and calculable 
concept of quality of life . A better quality of li fe is understood as "improving people's daily lives by 
improving public services (such as water, electricity, health, education, public safety and access to 
justice), by establishing the conditions to create good -quality jobs, and by creating more WT/TPR/G/435 • Dominican Republic  
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  opportun ities for all people, without distinction" .2 This also requires a more effective and efficient 
State, a productive apparatus that can generate more foreign exchange and a country that is socially 
and territorially more cohesive, inclusive and united . To achieve the goals specified and established 
for the intervention areas, seven cross -cutting topics or issues were outlined : gender, territory, 
participation, sustainability, transparency and accountability, affirmative actions for vulnerable 
groups, and dig ital transformation.  
6.4.  The rationale underpinning the PN PSP 2021-24 seeks to ensure that sectoral policies, final and 
intermediate products, and goals take into account the impact of policies on people's quality of life . 
For instance, policies might improve formal employment or gender or territorial equity, or they might 
reduce pollution . Ultimately, quality of life has become one of the Dominican Republic's core 
development objectives.  
6.5.  Once the commitments undertaken in the 2014 Education Pact had been imple mented, the 
Electricity Pact, signed on 25  February  2021, led to more than three years of discussions among 
stakeholders from a cross -section of society . Consensus was reached on 212  topics ; there were 
14 areas of disagreement, which will need to be addres sed at a later stage . It was also agreed that 
compliance with the areas of consensus and solutions to the areas of disagreement would be 
monitored by the Monitoring and Oversight Committee, a body established under the Pact.  
6.6.  Regarding the Fiscal Pact, prog ress has been made through policies to improve the quality of 
government expenditure and savings in State institutions . In this regard, public scrutiny of 
management of the civil service is important for these reforms that seek to improve the quality of 
income and expenditure.  
6.7.  The discussions that have been initiated and the commitments related to the presentation and 
signing of the National Commitment Proposal for a Water Pact are the result of open dialogue and 
of agreements forged collectively with socie ty as a whole . This process is intended to lead to the 
development and signing of a Pact in the near future to boost water sustainability and security over 
a 15-year period (2021 -36). 
6.8.  The recent pandemic has led to public policies being redesigned because lockdowns caused 
problems to the real economy, tax revenue fell and government expenditure increased to subsidize 
the poorest people and those who lost their jobs . The worst consequences of the pandemic are now 
believed to have been over come.  
6.9.  The Dominican Republic is a middle -income country with GDP per capita of USD  8,971.9 in 
2021.3 While poverty rates had been falling since 2004, in recent years the impact of COVID -19 
have been felt, with the crisis beginning in the country in April 2020. Therefore, as a result of the 
effects of the pandemic on the Dominican economy, exceptionally economic policies and relief 
measures had to be introduced in 2020 to slow the contraction of the economy and the resulting job 
losses and increased monetar y poverty.  
6.10.   The pandemic has reversed the improvements in overall poverty and extreme poverty rates 
of recent years . Overall poverty (28.6 % in 2016) and extreme poverty (4.5 % in 2016) had been 
declining up to and including 2019, but the trend changed in 202 0, with overall monetary poverty 
rising from 20.9 % in 2019 to 23.4 % in 2020 (274,557 additional people fell into this category) . The 
percentage of people living in extreme poverty increased by 0.9 percentage points from 2.6 % in 
2019 to 3.5 % in 2020.4 
6.11.   The economic downturn was partly reversed in 2021, as reflected in the poverty rates : while 
extreme poverty fell to 3.1 %, thanks to the Quédate en Casa  (Stay at Home), Employee Solidarity 
Assistance Fund (FASE) and Pa' Ti  (For You) social programmes and other measures, monetary 
poverty continued to rise, reaching 23.9 %. As measured by the Gini coefficient5, inequality 
decreased from 0.433 in 2016 to 0.396 in 2021.  
 
2 National Multi -Year Public Sector Plan (PNPSP) 2021 -24. 
3 BCRD preliminary figures.  
4 Viewed at: https://mepyd.gob.do/publicaciones/boletin -pobreza -monetaria -a7-no9. 
5 At the national level, inequality, as measured by the Gini coefficient, fell between 2020 and 2021 in 
both urban and rural areas. This trend is corroborated by a reduction in the Palma ratio, which is measured as WT/TPR/G/435 • Dominican Republic  
- 12 - 
  6.2  Competitiveness  
6.12.   The Dominican Republic's competitiveness, as measured by the Global Competitivene ss Index 
of the World Economic Forum, has improved markedly when compared to 2018 . It climbed from 
82nd out of 140 countries to 78th out of 141 countries and its score increased by 0.9 points to 58.3 . 
The country recorded substantial gains on certain pilla rs, including those on institutions, the 
innovation ecosystem and the financial system.  
6.13.   These competitiveness gains have been bolstered by the results of international assessments . 
For instance, in 2019, the Global Forum on Transparency and Exchange of Information for Tax 
Purposes of the Organisation for Economic Co -operation and Development (OECD) classified the 
Dominican Republic as "largely compliant" with the tax transparency standard . The Financial Action 
Task Force (FATF), for its part,  stated in its Mutual Evaluation Report that the country was in 
conformity with and generally in compliance with the recommendations for the prevention of money 
laundering, financing of terrorism and the proliferation of weapons of mass destruction . Similarly, 
under the Extractive Industries Transparency Initiative (EITI) – a global standard for good 
governance in the extractive industries, the implementation of which ensures transparency and 
accountability with regard to mineral resources and promotes comp liance with environmental 
standards – the country was deemed to have made "significant progress".  
6.14.   As a joint effort to enhance the Dominican Republic's export competitiveness, the National 
Export Development Plan 2020 -30 exemplifies the willingness of publ ic and private institutions that 
directly or indirectly shape the export process to work together to address the short -, medium - and 
long-term challenges so that the Dominican Republic can consolidate its integration in international 
trade.  
6.15.   Similarly, the National Export Strategy for Modern Services 2021 -25 was launched, through 
which the Dominican Government is taking action to promote an innovative, inclusive and 
sustainable ecosystem that fosters exports of non -traditional services by stren gthening the capacity 
of the information and communication technologies (ICT) sector and the Orange Economy.  
6.16.   The National Trade Policy Plan 2016 -21 provides strategic guidelines for a comprehensive 
national trade policy as a tool to strengthen and improve the country's access to international 
markets through international trade agreements . The continuity is being given to the Plan through 
the Trade Negotiations Strategy of the Dominican Republic 2021, which was negotiated between the 
Government and the priv ate sector and sets out the course of action and focus of the trade 
negotiations towards which the country is moving.  
6.17.   In 2022, pursuant to Decree No. 612-21, a presidential report was concluded that identified 
the economic sectors with the greatest potenti al to maximize the opportunities created by the 
reconfiguration of global value chains . The report includes a survey of economic sectors, a study of 
FDI attractiveness by sector, the evolution of United States imports from the Dominican Republic 
and China,  and various factors that affect trade flows, such as freight costs and tariffs . A nearshoring 
plan was then formulated with a series of short - and medium -term policy proposals to address the 
critical points identified and to consolidate the Dominican Repu blic's competitive strengths, which 
were identified by interviewing representatives of various economic sectors and by reviewing the 
literature.  
6.18.   In 2022, the Export Development Bureau was established pursuant to Decree No.  172-22. 
Chaired by the President of the Dominican Republic and coordinated by the Ministry of Industry, 
Trade and MSMEs (MICM), the Bureau allows all government action taken to promote and boost 
exports by Dominican companies to be formulated and evaluated in one place and in a cohesive 
manner.  
 
the ratio between the total income o f the richest 10 % of the population and that of the poorest 40 %. 
Viewed  at: https://mepyd.gob.do/publicaciones/boletin -pobreza -monetaria -a7-no9. WT/TPR/G/435 • Dominican Republic  
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  6.3  Purchase of shares held by Petróleos de Venezuela, S.A. (PDVSA) in Refinería 
Dominicana de Petróleo S.A. (REFIDOMSA)  
6.19.   In September  2021, the Dominican State purchased 49 % of the shares from the subscribed 
and paid -up capital of Refinería Dominicana d e Petróleo PDV, S.A. (REFIDOMSA), which were owned 
by the company PDV Caribe, S.A., a subsidiary of Petróleos de Venezuela, S.A. (PDVSA), a 
state-owned enterprise of the Bolivarian Republic of Venezuela . As a result of this transaction the 
State became the  owner of 100 % of the company's shares.  
6.20.   The purchase price of EUR  74 million (equivalent to USD  88.134  million) agreed by the State 
was lower than the selling price that PDV Caribe, S.A. had paid the Dominican State when it bought 
the shares more than 10 y ears ago . In the first stage of the purchase, PDV Caribe, S.A., swapped 
its shares in REFIDOMSA for bonds issued by PDVSA and the Bolivarian Republic of Venezuela and 
held by the commercial firm PATSA Ltd. (part of Grupo Rizek in the Dominican Republic tha t 
facilitated the transaction) . In the second stage of the transaction, the Dominican State immediately 
bought the shares that PATSA, Ltd. had bought from PDVSA at the same agreed price.  
6.4  Tariffs  
6.21.   To counter and prevent the economic and public -health effects  of the COVID -19 pandemic, 
during the state of emergency, the Dominican authorities adopted a series of tariff measures to 
support or provide a fiscal stimulus to various sectors, in particular the health sector . 
Resolution  No. 163-2020 authorized the Tax Administration to implement a tax holiday for certain 
healthcare products specified in the Resolution.  
6.22.   To compensate for the price hikes on a series of products in the basic basket, driven by the 
geopolitical and trade situation resulting from the conflict  between the Russian Federation and 
Ukraine and from global supply chain interruptions, the Dominican authorities enacted Law  No. 6-22 
of 27 April 2022, which suspended tariffs on the 67 products in the basic basket.6 
6.5  Agricultural sector  
6.23.   The Dominican Rep ublic's agricultural trade policy has a degree of openness that is typical of 
a booming small economy and is shaped by the commitments entered into under the various trade 
agreements . In that respect, the opening of the market for some of the main agricult ural goods 
pursuant to the trade agreements signed by the country has created a new challenge in terms of 
price competition and more efficient production processes.  
6.24.   The agriculture sector is the primary source of employment in rural areas, where most of th e 
country's poor households are located . The State has focused on implementing policies and 
programmes that are aligned with the strategic pillars of the agricultural sector : to modernize and 
strengthen the agricultural sector ; boost the supply of food of crop or livestock origin ; improve the 
competitiveness of the agricultural sector and the profitability of producers ; promote agricultural 
exports and the development of infrastructure and services in rural areas based on a territorial 
approach ; foster social protection and productive inclusion with gender equity ; and advance 
practices for environmental sustainability and resilience to climate change.  
6.25.   Between 2015 and 2021, the food supply grew significantly and was sufficient for nationals 
and foreign v isitors . Part of that success was due to the increase in the Agricultural Bank's loan 
portfolio at exclusive preferential rates . Capital investment also increased in productive 
infrastructure, including rural roads, irrigation systems (rehabilitation of ir rigation channels at the 
national level), heavy equipment and agricultural machinery purchases, regional storage and 
processing centres for drying grain, land preparation and the provision of inputs, among other 
measures.  
6.26.   The outbreak of theCOVID -19 pandem ic posed a major challenge for the domestic agricultural 
sector . At the start of the pandemic and when borders closed, food consumption in the tourism 
 
6 Law provisionally applyin g zero -rated customs tariffs to certain goods that affect the cost of food items 
that are basic components of Dominican families' diets. Viewed at: 
https://micm.gob.do/images/pdf/transparencia/base -legal-de-la-institucion/resoluciones/Leyes/2022/Ley_6 -
22_Tasa_cero.pdf . WT/TPR/G/435 • Dominican Republic  
- 14 - 
  sector declined considerably, causing a production surplus that required measures to move, process 
and ex port a significant portion of the excess food . Another disruptive effect of the pandemic was 
the introduction of local and international restrictions on movement . The real value added of the 
agricultural sector saw year -on-year growth of 2.6 % at the end of  2021 thanks to the performances 
of crop farming (2.9 %) and the livestock, forestry and fisheries sector (1.1 %). This was similar to 
the level recorded the previous year, when the sector grew by 2.8 % despite the impact of the health 
crisis and weather -related events.  
6.27.   The measures taken by the State to deal with the effects of the pandemic included those 
implemented by the Dominican Government through institutions in the sector to help small and 
medium -scale producers, with a view to stimulating agricultural  production and ensuring national 
food security and price stability for agricultural products during the pandemic . The measures include 
the launch of a comprehensive programme coordinated by the Ministry of Agriculture to mitigate the 
effects of rising pri ces for commodities and crude oil that have affected the international market, 
pushing up in turn production and transport costs . The programme included financial measures, 
such as the Agricultural Bank's interest -free loans, with 60 % of funds allocated to  small producers, 
to ensure the availability of products from the basic basket and guarantee the renegotiation of some 
debts . It also covers the repair and improvement of roads connecting farms in 28 communities, the 
drilling of tube wells to supply water to the necessary areas, and the delivery of inputs such as seeds 
and seedlings to farmers.  
6.28.   More recently, to counter the effects of the crisis between the Russian Federation and Ukraine, 
a fund was created to ensure a stable supply of fertilizers and agroc hemicals used in the farming 
industry, with a grace period of six months for principal payments . Direct measures were taken to 
address the hike in domestic prices of basic food basket products and imported commodities and 
inputs used in food production, mo st notably Law No. 6-22, which zero -rated imports of 67 food 
products for a period of six months .7 Similarly, the National Price Stabilization Institute (INESPRE) 
has taken steps to set up more food markets, doubling the number of its warehouses and direc t-sale 
markets throughout the country.  
6.29.   Lastly, the Siembra RD  sowing programme has been implemented in order to continue to 
guarantee food security . The programme includes an initial payment with a 6 % per annum interest 
rate through the Agricultural Bank t o improve livestock farming and continue to provide support for 
inputs . The programme also seeks to increase the acreage of land suitable for planting food products.  
6.6  Measures adopted to consolidate customs procedures  
6.30.   In order to continue consolidating trade facilitation commitments and improving the 
competitiveness of Dominican foreign trade, the government authorities have been promoting a 
series of legislative and regulatory initiatives aimed in that direction . The initiatives that are h aving 
the greatest impact on the Dominican Republic's trade include the new General Customs Law 
No. 168-218, the initiative for the clearance of goods within 24 hours, the Exporta +  programme for 
the facilitation of exports and the fine -tuning of the sing le window for foreign trade (VUCE) initiative, 
and the simplified authorized economic operator (AEO) status for MSMEs.  
6.31.   The General Customs Law No. 168-21 was designed to be a modern and efficient legal 
instrument that conforms to international rules and st andards, in line with the reality of national 
legislation . This Law incorporates international commitments such as environmental agreements and 
the Trade Facilitation Agreement (TFA), the practice of non -intrusive or non -invasive inspections, 
and the use o f information technology and e -payment through banks . It lists the customs procedures 
and regimes in a clear and ordered manner, institutes advance declarations and advance rulings, 
and brings together all the customs regimes . It also allows for the transm ission of documentation 
prior to the arrival of the means of transport and establishes facilitation measures such as the AEO 
and the single window for foreign trade . It provides that logistics centres and logistics operators may 
operate for a period of 15 years, which may be renewed in accordance with the conditions set out 
 
7 Viewed at: https://micm.gob.do/images/pdf/transparencia/base -legal-de-la-
institucion/resoluciones/Leyes/2022/Ley_6 -22_Tasa_cero.pdf . 
8 Viewed at: https://www.aduanas.gob.do/ley -
16821/#:~:text=Esta%20Ley%20moderniza%20y%20simplif ica,los%20tr%C3  per 
centA1mites%20y%20procedimientos%20aduaneros . WT/TPR/G/435 • Dominican Republic  
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  in the regulations . In addition, it establishes the procedures for correcting, rectifying and 
withdrawing the declaration.  
6.32.   The pillars of the initiative for the clearance of goods within  24 hours (D24H) include the 
ongoing improvement of customs processes and procedures, the simplification of procedures and 
customer service . The application of these measures has helped the private sector to improve its 
internal processes and lead times, u sing the facilities provided by the Directorate -General of Customs 
(DGA), as goods may be presented or declared prior to the arrival of the means of transport . In 
summary, the results achieved through the D24H programme show that significant progress has 
been made in reducing clearance times, streamlining processes, lowering costs, alleviating 
congestion at ports, carrying out processes in advance and filing manifests prior to the vessel's 
arrival.  
6.33.   Furthermore, in order to increase the country's volume of exports, the DGA introduced Exporta 
+, with the involvement of 105 recognized enterprises that will work jointly with the DGA to 
transform the Dominican Republic into the logistics hub for the entire  region . Exporta +  seeks to 
reduce red tape in the export process, thereby increasing the regular volume of goods that leave 
the country, in order to increase the Dominican Republic's competitiveness in relation to other 
nations in the region . The programm e's primary aims are to facilitate exports, simplify export 
processes, increase the flow of exports, integrate "para -customs" entities, improve inter -institutional 
coordination, close all export files, ensure the traceability of exports, improve export sta tistics, 
develop the inspection and joint inspections schedule and improve the information on export 
processes.  
6.34.   The single window for foreign trade (VUCE) initiative has led to the integration of over 
40 institutions and bodies linked to customs operations , thereby improving the interaction between 
government institutions and the private sector . The aim is to facilitate the customs procedures and 
processes involved in the clearance of goods, by reducing the time and cost of foreign trade 
operations . Sixty-one new services have also been integrated as part of the implementation schedule 
for 2019, the VUCE Computerized Management Portal has been launched and 221 active services 
included . In addition to the aforementioned trade facilitation measures, on 1  Janua ry 2022, the DGA 
implemented the updated customs tariff, aligned with the seventh edition of the Harmonized 
Commodity Description and Coding System (HS), in order to reflect the latest advances in science, 
technology and international trade patterns.  
6.7  Key elements for attracting foreign direct investment (FDI)  
6.35.   The Dominican Republic has an excellent investment climate, underpinned by a legal 
framework that is very attractive and secure for foreign investment . The country has a number of 
political, economic, social and legal advantages that, combined with its natural potential, have 
enabled it to establish itself as the top destination for FDI in the Caribbean and the second in Central 
America.  
6.36.   The Dominican Republic has preferential access to over 1  billion  consumers, marketing 
products under more than 3,000 tariff lines, thanks to the effective implementation of the trade 
agreements9 concluded with the major countries of the world, as well as the facilities related to the 
unilateral preferences gra nted under the Generalized System of Preferences (GSP), which provides 
preferential access to 55 destination markets for the products marketed under more than 3,000  tariff 
lines.  
6.37.   In February  2020, the Dominican Republic established an innovative regulatory  framework for 
the creation and development of public -private partnerships, pursuant to Law No. 47-20, which 
created the Directorate -General for Public -Private Partnerships (DGAPP), charged with promoting 
and regulating such partnerships.  
6.38.   Moreover, in December 2021, the Dominican State issued Decree No. 806-21 providing for 
the relaunch of the Investment Single Window of the Dominican Republic as part of the Efficient 
 
9 The United States and Central America Trade Agreement (DR -CAFTA), the Trade Agreement with the 
Caribbean Community (CARICOM), the Agreement with Central America, the Partial Scope Agreemen t with 
Panama, the EU -CARIFORUM Economic Partnership Agreement and the CARIFORUM -United Kingdom Economic 
Partnership Agreement.  WT/TPR/G/435 • Dominican Republic  
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  Government Programme (Zero Red Tape), with a view to interconnecting and combining on a si ngle 
digital platform all procedures, permits, registrations, licences, no -objection permits, authorizations 
or any other type of approval required by various government or municipal institutions for 
investment projects to be carried out in the Dominican R epublic.  
6.39.   Similarly, and with a view to encouraging investors to choose the country, the Investment 
Promotion Bureau was established under Decree No. 849-21, with the aim of spearheading, within 
the government, policies, guidelines and mechanisms for the de velopment of facilities and processes 
that will encourage investment in strategic sectors that help to improve and boost the country's 
competitiveness.  
6.40.   Over the past two years, ProDominicana has started work to create, maintain and expand a 
digital ecosyst em with tools focused on trade intelligence, capacity -building and facilitating business 
links.  
7  FUTURE POLICY DIRECTIONS  
7.1.  The Dominican Republic's trade agenda for the coming years includes leveraging the trade 
agreements in force, continuing to deepen and modernize economic integration in Central America 
and the wider region, and enhancing the country's competitiveness through improvements in the 
various relevant areas : institutional environment ; infrastructure ; ICT adoption ; macroeconomic 
stability ; improv ements to the health and skills of the general population ; improvements to the 
goods, services and labour markets ; and improvements to the financial system and innovation 
ecosystem.  
7.2.  The country will continue to make a positive contribution to the multilate ral trading system by 
actively participating in the Organization's various bodies and the negotiating processes, such as the 
initiative aimed at reaching a plurilateral agreement on investment . Moreover, the country will 
continue to monitor its trading par tners' compliance with trade agreements and to make use of the 
dispute settlement mechanisms when necessary.  
7.3.  A major statistics initiative, the DATACOMEX -RD platform, has been implemented by the MICM 
and the National Statistics Office . Its purpose is to ac t as a transparency mechanism for the 
Dominican Republic's foreign trade statistics that enables economic operators to access relevant 
information, in addition to encouraging research, the development of business opportunities, the 
creation of jobs and pro ductive innovation for macroeconomic recovery and improvement.  
7.4.  At the same time, the Local Manufacturing Directory platform, set up by the MICM, seeks to 
provide the general public with updated contact information for local manufacturing companies in 
the D ominican Republic, as well as information on the type of economic activity in which these 
companies are engaged . It thus provides access to information that could allow companies to expand 
both locally and internationally and create business synergies.  
7.5.  In recent years, the Dominican Quality Council (CODOCA) has been stepping up its actions with 
regard to productive processes . It has prepared, among other important documents, the National 
Quality Policy 2021 -24 with the collaboration of all Dominican Qualit y System (SIDOCAL) 
stakeholders, through a process involving the participation of 23 public and private institutions that 
are CODOCA members . This Council is the highest authority of SIDOCAL and formulates, articulates, 
coordinates and disseminates policie s on quality, contributing to the development, strengthening 
and recognition of SIDOCAL.  
7.6.  One of CODOCA's key objectives is to define and articulate quality and productivity policies of 
national interest in the areas of metrology, standardization, testing, accreditation and certification, 
in line with national development needs and recognized international guidelines and practices . The 
measures taken in this regard ultimately seek to improve Dominican products and services, so that 
the quality of both the do mestic market and foreign trade are also enhanced, thereby contributing 
to the development of the Dominican Republic.  
7.7.  The Dominican Republic will continue to promote actions aimed at increasing flows of productive 
investment and opportunities for progress and improved well -being . In this connection, it will 
continue to promote initiatives such as the launch by ProDominicana of the online Register of Foreign WT/TPR/G/435 • Dominican Republic  
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  Direct Investment , the objective of which is to streamline and make the registration processes more 
transparent to investors, while at the same time making the processes free.  
7.8.  The confidence that international financial agents have in the Dominican economy means that 
future macroeconomic prospects are positive . Generally speaking, there ha s been a positive reaction 
to the implementation of macroeconomic policies that are consistent with the objectives of bringing 
about the recovery of productive activities, recovering jobs and protecting the most vulnerable 
segments of the population . This positive outlook is based on various factors, which include the 
proper management of public finances ; the appreciation of the Dominican peso in 2021 and the 
first months of 2022 ; the increase in net international reserves ; the tourist arrival figures ; and the 
contribution of remittances . One challenge for the Dominican economy in recent months has been 
inflation, which is linked to higher commodity prices and the bottlenecks in global trade supply chains 
caused by the conflict between the Russian Federation  and Ukraine . This has led to the recent 
adoption of tighter monetary policies and it is hoped that these policies will bring inflation back on 
track in the coming months.  
7.9.  The rapid recovery of domestic activity and the administrative efforts to streamline  tax 
management resulted in a substantial increase in tax income . This performance, together with the 
strategy setting public spending priorities, contained the growing demand for resources associated 
with supporting the reinvigoration and strengthening of  the productive fabric, the social programmes 
needed to support the most vulnerable people, the fight against the pandemic and the rise in 
mass-market consumer products . As a result of these factors, and despite budgetary pressures, the 
central government' s fiscal deficit stood at 2.9 % of GDP at the end of 2021, which is below what 
had been expected and in line with the fiscal consolidation process that has been the focus of 
government actions . Moreover, according to the latest estimates, the year -end fisca l balance is 
aligned with level forecast in the 2022 General State Budget.10 
7.10.   In the medium -term, the fiscal policy guidelines are focused on ensuring a sustainable public 
debt trajectory in order to guarantee the allocation of public resources to meet the social demands 
that informed the design of the government programme, and to position the Dominican sovereign 
credit rating at investment grade . These objectives are rooted in fiscal discipline, stronger tax 
revenues and the targeted use of public resources , with their cross -cutting focus being to create the 
conditions conducive to macroeconomic stability . With regard to debt management, the guidelines 
are focused on increasing the share of debt held by multilateral institutions, mitigating the main 
risks by  increasing the percentage of local currency -denominated debt, reducing the proportion of 
debt with variable interest rates, improving maturity profiles and improving the balance of the 
portfolio risks . On the basis of the revenue, expenditure and financin g policy planning and the 
economic outlook for the projection period, non -financial public sector debt is expected to close 2022 
at 47.5 % of GDP, following a trajectory of constrained growth until the debt -to-GDP ratio climbs to 
around 48.1 % in 2026, at th e end of the projection horizon.11 
7.11.   In this connection, the Dominican Government reiterates its commitment to the fiscal 
consolidation process and to macroeconomic stability, as reflected in the design of a fiscal and 
macroeconomic policy that enhances the well-being of Dominican society through the responsible 
management of public finances, promoting development in a context of equity, progressiveness and 
better -quality public spending.  
7.12.   Closely following the guidelines in the National Multi -Year Public Sect or Plan (PNPSP), 
international cooperation carried out through the Ministry of the Economy, Planning and 
Development has been deployed to support national development with major, forward -looking 
projects on, inter alia , reforming the electricity sector, mo dernizing the electrical grid and reducing 
losses, leveraging trade agreements, supporting business -friendly and inclusive national and 
regional policies, strengthening productive capacities and value chains, developing a low -carbon 
energy industry, improv ing formal trade with Haiti and combating informal trade, tightening border 
security, building climate resilience and the Quality Enhancement Programme for the Development 
of MSMEs.  
7.13.   The period under review saw the creation of the Intellectual Property Unit of the Office of the 
Attorney General of the Republic . A "liaison prosecutor" was also selected, who is responsible for 
 
10 Ministry of Finance (2022) Marco Fiscal de Mediano Plazo 2020 -2026, April 2022.  
11 Ibid. WT/TPR/G/435 • Dominican Republic  
- 18 - 
  investigating and prosecuting intellectual property crimes . During the period under review, the 
number of criminal intelle ctual property cases increased significantly, reaching a total of 663 cases 
in 2021 .12 Lastly, Decree No. 405-22 on the Regulations implementing Law No. 17-19 on the 
eradication of illicit trade in, and the smuggling and counterfeiting of, regulated products was issued 
on 25 July 2022. 
__________  
 
12 A total of 268 cases were recorded b etween 2018 and 2020.