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II. TRADE AND INVESTMENT REGIME 
(1) OVERVIEW  
1. The specific objectives of Dominican trade polic y are to make the economy more efficient 
and competitive, reduce protection and any aspect of the tariff structure that is unfavourable to 
exports, and at the same time foster regional ec onomic cooperation.  Forei gn trade policy-making and 
trade negotiations are the responsibility of the Commission for National Trade Negotiations, chaired 
by the Ministry of Foreign Affairs, while the Mini stry of Industry and Trade has prime responsibility 
for administering trade agreements. 
2. The Dominican Republic is a founding Member of the WTO, and is participating actively in 
the Doha Development Round negotiations, from wh ich it expects to obtain practical benefits, 
particularly in the agriculture and industrial sectors,  and on trade facilitation and trade rules.  It has 
submitted numerous notifications to the WTO, a lthough others were delayed as of mid-2008.  The 
Dominican Republic has participated in only a fe w trade disputes in the WTO – as a defendant in 
three cases and as a third party in three others. 
3. As part of its international integration stra tegy, the Dominican Republic has continued to 
negotiate new bilateral and regiona l trade agreements.  During the period under review, it concluded 
negotiation of the Partial Scope Agreement with  Panama, the Free Trade Agreement between the 
Dominican Republic, Central America and the United States (DR-CAFTA), and the Economic 
Partnership Agreement between the European  Union and CARIFORO (CARICOM and the 
Dominican Republic). 
4. The Dominican foreign investment regime allows  foreign nationals to invest in the vast 
majority of economic sectors.  Exceptions in clude activities affecting public health and the 
environment, and those in which there are laws a nd regulations governing particular sectors.  There 
are limits on the foreign private investment share in air transport and broadcasting;  and foreign 
governments are not allowed to invest in mini ng, or in oil drilling and prospecting.  The 
Dominican Republic has signed various mutual inve stment promotion and protection agreements, as 
well as a double taxation agreement and anothe r on the exchange of tax information. 
(2) TRADE POLICY AND INVESTMENT FRAMEWORK  
(i) General legal and institutional framework 
5. The Dominican Republic is a representative demo cracy, governed by three powers of State:  
executive, legislature and judiciary.1  The country is divided into of 31 states and a national district.  
The head of the executive branch is the President of the Republic who, along with the Vice-President, 
is elected by direct suffrage every four years, with the possibility of re-electi on for a consecutive term.  
The most recent presidential election took place in May 2008.  The President is Head of State and 
Government, and is assisted by ministers designated by him.  Each of the 31 provinces has a governor appointed by the President. 
6. Legislative power is vested in the National Congress, consisting of the Senate of the 
Republic, which has 32 members, one for each prov ince and one for the national district, and the 
Chamber of Deputies with 178 members.  Senators and deputies are elected by direct majority vote to 
                                                     
 
1 Article 4 of the Constitution of the Dominican Republic, voted on and proclaimed by the National 
Assembly on 25 July 2002. The Dominican Republic WT/TPR/S/207 
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four-year terms.  Legislative elections are held separately from the presidential election;  the most 
recent were held in May 2006. 
7. The judiciary consists of the Supreme Court,  the Lands Tribunal, the Labour Courts, nine 
Appeal Courts and numerous Court of First Instance.  There are also separate administrative and 
military tribunals.  The Supreme Court, which acts as  a final court of appeal for all judgements issued 
by lower courts, consists of 16 judges appoint ed by the National Council of Magistrates. 
8. The Constitution states that the Dominican Re public recognizes and enforces the provisions 
of international law that have been  adopted by its powers of State.2  The President is authorized to 
lead diplomatic negotiations for and conclude treaties with foreign countries or international 
organizations, but these must be submitted for congressional approval.3  While Congress has the 
power to approve or reject international tr eaties and conventions signed by the government4, it cannot 
amend them. 
9. The Constitution is the substantive law, prevaili ng over all other legislation.  International 
treaties approved by the National Congress and prom ulgated by the President are ranked below the 
Constitution but prevail over domestic laws and can  be invoked in the national courts.  The 
commitments undertaken by the Dominican Re public in the WTO Agreements have been 
incorporated in national legislation through special laws and have been invoked in a number of cases 
relating to customs valuation. 
(ii) Trade policy formulation and objectives 
10. The Dominican Government attaches a high priori ty to the international trade agenda, which 
it sees as a means of promoting the country's economic and social development.  Thus, the authorities 
believe trade policy should be linked to the nationa l development strategy by  strengthening domestic 
productive capacity and the ability to  compete on external markets.5  In relation to this Review, the 
authorities have stated that, in addition to ra ising living standards among the Dominican people 
through economic and social development, trad e policy has the specific aims of boosting the 
efficiency and competitiveness of domestic producers,  reducing the effective level of protection and 
any aspect of the tariff structure that is unfavourab le to exports, while at the same time fostering 
regional economic cooperation. 
11. Trade policy formulation is vested in the Comisión Nacional de Negociaciones Comerciales – 
CNNC (National Trade Negotiations Commission ),  established under Decree No. 74-97 and chaired 
by the Secretaría de Estado de Relaciones Exteriores  – SEREX (Ministry of Foreign Affairs).  Other 
bodies that participate in the CNCC are the Ministries of Industry and Trade;  Agriculture;  the 
Economy, Planning and Development;  Finance;  E nvironment;  Tourism;  and Labour;  as well as the 
Central Bank of the Dominican Republic, the Di rectorate-General of Customs, the Dominican 
Telecommunications Institute, the Dominican Re public Export and Investment Center, the 
Government Legal Advisory Service, the Nationa l Industrial Property Office and the National Office 
of the European Development Fund. 
12. The Commission for Tariff Analysis, create d by Law No. 146-00, is responsible for 
recommending tariff adjustments to the Government to ensure that the country's tariff structure meets 
the needs of international trade.  The Commission is chaired by the Ministry of Finance, and consists 
                                                      
2 Constitution of the Dominican Republic, Article 3(2). 
3 Ibid., Article 55. 
4 Ibid., Article 37. 
5 Dominican Republic (2007), p. 4. WT/TPR/S/207 Trade Policy Review 
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of the Ministries of Foreign Affairs, Industr y and Trade, and Agriculture, along with the 
Directorate-General of Customs. 
13. Bilateral, subregional or multilateral trade nego tiations are handled by the CNNC, while trade 
agreements are administered by the Secretaría de Estado de Industria y Comercio  – SEIC (Ministry 
of Industry and Trade) acting through the Dirección de Comercio Exterior y Administración de 
Tratados Comerciales Internacionales  – DICOEX (Directorate of Foreign Trade and Administration 
of International Trade Agreements).  The latter is responsible for ensuring that agreed commitments 
are fulfilled, and for resolving any difficulties en countered by Dominican producers in accessing the 
markets of signatory countries and those faced by  foreign producers in accessing the Dominican 
market.  Its functions include coordination with other State agencies on the administration of trade 
agreements through the Consejo Nacional de Implementación y Administración de Tratados  – 
CONIAT (National Council for Treaty Implem entation and Administration), created by 
Decree No. 610-05 of November 2005, and chaired by the SEIC.6 
14. With regard to the implementation of trade agreements, the Centro de Exportaciones e 
Inversión  – CEI-RD (Dominican Republic Export and Investment Center) is responsible for the 
promotion and diversification of Dominican e xports, and for providing technical assistance to 
exporters and investors in dealing with the vari ous preferential agreements and programmes (see 
Chapter III(3)(v)).  The Consejo  Nacional de Zonas Francas de Exportación  – CNZFE (National 
Council for Free Export Zones) is responsible for evaluating free zone policy and participating in 
negotiations to reach agreements on the c onditions under which such zones operate (see 
Chapter III(3)(iv)(a)). 
15. Civil society participates in interna tional trade negotiations through the Consejo Consultativo 
de la Sociedad Civil  – CCSC (Civil Society Advisory Council), which was created by the Regulations 
of Decree No. 74-97.  The Council advises the Gove rnment on the negotiation of trade agreements, 
assists in the monitoring and implementation of ag reements, and issues opinions on the development 
of trade policy.  The CCSC consists of 13 civil society organizations, including the Dominican 
Industry Association, the Santo Domingo Chambe r of Commerce and Production, the Dominican 
Exporters Association, the Association of Domi nican Agro-Enterprises and the Association of 
Commercial Banks. 
(3) FOREIGN INVESTMENT REGIME  
16. The Dominican Government sees policy to attract foreign direct investment (FDI) as a key 
element of its strategy for competitive integration in the international economy7, for which purpose, 
since the 1990s, it has been reforming the lega l and institutional framework governing foreign 
investment. 
17. The 1995 Foreign Investment Law (Law No. 16-95) allows foreign nationals to invest in all 
sectors of the economy other than in the following cases:   exceptions imposed by laws and regulations 
governing particular sectors;  the disposal and elimin ation of toxic, hazardous or radioactive waste not 
                                                      
6 The CONIAT encompasses the following bodies:  the Ministry of Industry and Trade (SEIC);  the 
Government Legal Advisory Department;  the Ministries of Foreign Affairs (SEREX);  the Economy, Planning 
and Development (SEEPD);  Finance (SEH);  Agriculture (SEA);  Public Health and Social Welfare (SESPAS);  
Environment and Natural Resources (SEMARENA);  Labour (SET);  Tourism (SECTUR);  the Central Bank of the Dominican Republic (BC);  the Dominican Republic Export and Investment Center (CEI-RD);  the National 
Council for Free Export Zones (CNZFE);  The Director ate-General of Customs (DGA);  and the Dominican 
Telecommunications Institute (INDOTEL). 
7 Dominican Republic (2007), p. 24. The Dominican Republic WT/TPR/S/207 
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produced in the Dominican Republic;  the production of materials and equipment directly related to 
national defence and security;  and activities affec ting public health and the country's environmental 
equilibrium.8  In relation to the latter, the authorities have  stated that there is no predetermined list of 
activities that are not permitted, and that foreign investment in this domain is governed by the 
provisions of the General Law on the Envi ronment and Natural Resources (No. 64-00). 
18. Foreign investors do not need a local partner to invest in the Dominican Republic, and their 
investments are not restricted in terms of particip ation in an enterprise's capital, except for a few 
sectors such as air transport and broadcasting (see Table II.1). 
Table II.1 
Restrictions on foreign investment contained in sectoral laws 
Sector Restriction  Legal basis 
Mining Mining concessions may not  be granted to any foreign 
government, either directly or through the intermediation of a 
natural person or enterprise.  In duly justified cases, and subject to prior approval by the National Congress, the 
Government can enter into speci al agreements with foreign 
mining firms that are partly  or wholly State-owned. 
 Mining Law of the 
Dominican Republic, No. 146 of 
4 June 1971 (Article 9) 
Oil extraction and 
prospecting In no circumstances may foreign governments obtain 
exploration, exploitation and co mmercial rights in respect of 
petroleum and other hydrocarbons , nor may they be admitted 
as partners, co-partners, or shareholders by any person or company that holds such rights. Law on the Exploration, Exploitation 
and Commercialization by Private 
Individuals of Deposits of Petroleum and Petroleum Derivatives, 
Hydrocarbons and other Similar Fuels, 
No. 4532 of 30 August 1956 
(Article 4) 
 
Air transport The operation of commercial air transport services in domestic 
or cabotage operations is reserved for airlines set up under the 
laws of the Dominican Republic, in which at least 51% of the 
capital or fixed assets belong to Dominican nationals, two thirds 
of the management staff are nationals, and which maintain 
effective control over their aircraft fleet. 
 Civil Aviation Law of the 
Dominican Republic, No. 491-06 
(Article 239) 
 Any firm acting as the operator, agent, or trustee of charter 
flights must be set up in accordance with Dominican laws;  at least 51% must belong to Dominican nationals, and Dominican 
nationals must be employed  in senior management. 
 Decree Governing and Regulating the 
Operators, Agents and Trustees of 
Charter Flights, No. 751-02 of 19 September 2002 (Articles 1 and 2) 
Communications and 
broadcasting In the case of public broadcasting services, a controlling share 
(51% or more) of the management of the concession holding firm must be in the hands of Dominican nationals or 
naturalized foreign nationals. 
 General Law on Telecommunications, 
No. 153-98 of 27 May 1998 (Chapter XI, Article 73.2) 
News agency services The director of any printed newspaper or periodical produced 
in the Dominican Republic must be a Dominican national. Law on Expression and Dissemination 
of Thought, No. 6132 of 
15 December 1972 (Article 5) 
Source: Information provided by the Dominican  Republic Export and Investment Center . 
19. Since its last Review, the Dominican Republic has significantly altered the institutional 
framework governing foreign investment.  In 2003, Law No. 98-03 was passed establishing the 
Centro de Exportación e Inversión de la República Dominicana  – CEI-RD (Dominican Republic 
Export and Investment Center) as the official agency responsible for promoting national and 
international investments in the country.  Under this Law, the Oficina para la Promoción de 
Inversiones de la República Dominicana  – OPI-RD (Dominican Republic Investment Promotion 
                                                      
8 Law No. 16-95, Article 5. WT/TPR/S/207 Trade Policy Review 
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Office), which had been created in 1997, was subs umed by, and its powers were transferred to the 
CEI-RD9, as were all functions relating to the registrati on of foreign investment, which until then had 
been the responsibility of the Central Bank.10 
20. The changes introduced by Law No. 98-03 have b een incorporated in the Foreign Investment 
Law and in the new Implementing Re gulations (No. 214-04) pertaining to the registration of foreign 
investment, promulgated in March 2004.  Within  180 days of making an investment, the foreign 
enterprise or investor must apply for registration with the CEI-RD and submit the information needed 
to issue the registration certificate.11  Once the necessary information has been received, the CEI-RD 
has 15 working days to process it and issue the certificate.  Although registration is mandatory and 
necessary for the purposes of statistical data , there are no sanctions for non-compliance.12  Foreign 
investments in free zones are registered w ith the CNZFE, which must notify the CEI-RD. 
21. Foreign investors may remit abroad the total am ount of the capital invested, together with net 
annual profits and benefits, without  prior Central Bank authorization provided that the corresponding 
taxes are paid.  They may also repatriate payments  relating to technical service contracts that establish 
fees in respect of technology transfer, and/or cont racts for the local manufacture of foreign brands 
which include royalty payment clauses, provided that  such contracts and the amounts or procedures of 
the payments involved have been previously approved by the CEI-RD.13 
22. With the aim of providing legal protection for fo reign investment and encouraging FDI flows, 
the Dominican Republic has signed mutual investme nt promotion and protection agreements with 
several of its economic partners, most of which came  into force during the period under review.  As of 
2008, the Dominican Republic had agreements in force with Argentina, Chile, Chinese Taipei, 
Ecuador14, Finland, France, Italy, Morocco, the Nether lands, Panama, the Republic of Korea, Spain, 
and Switzerland.15  It was also negotiating agreements with 16 other countries.16  I n  a d d i t i o n ,  t h e  
Dominican Republic has adopted provisions on invest ment in the framework of free trade agreements 
with the Caribbean Community, the Central Am erican Common Market, and the Free Trade 
Agreement between the United States, the Central American Countries and the Dominican Republic 
(DR-CAFTA). 
23. The Dominican Republic is a member of the Multilateral Investment Guarantee 
Agency (MIGA) and of the Overseas Private I nvestment Corporation (OPIC).  In March 2000, it 
signed the Convention on the Settlement of Invest ment Disputes between States and Nationals of 
                                                      
9 Law No. 98-03 of 17 June 2003, Articles 1 and 2. 
10 Ibid., Article 9. 
11 The documents required include an application for registration, containing information on the 
invested capital and the area of the investment;  proof of entry into the country of the foreign capital or physical 
or tangible goods;  and documents of commercial incorporation or the authorization of operation of a branch 
office through the setting up of legal domicile in the country.  Law No. 16-95, Article 4, and Implementing Regulations for the Foreign Investment Law (No. 214-04 of 11 March 2004), Article 3. 
12 According to the CEI-RD, only about 30 per cent of new investments actually apply for registration, 
and reinvestments are hardly ever registered. 
13 Foreign Investment Law, Article 7. 
14 The agreement with Ecuador was renounced by that country on 1 February 2008, although a number 
of its provisions (Articles 1-14 ) will remain in force until 2013. 
15 The list of bilateral mutual investment promotion and protection agreements signed by the 
Dominican Republic, and their legal status can be viewed at:  http://www.cei -rd.gov.do/acuerdosproy 
protinver.asp. 
16 With Austria, Belgium, the Bolivarian Republic of Venezuela, Canada, Colombia, the 
Czech Republic, Denmark, Germany, Israel, Kuwait, Me xico, Norway, Peru, the Ru ssian Federation, Sweden 
and Ukraine. The Dominican Republic WT/TPR/S/207 
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Other States.  It has also ratified the Conventio n on the Recognition and Enforcement of Foreign 
Arbitral Awards, which entered into  force in July 2002;  and it has signed, but not yet ratified, the 
Inter-American Convention on Intern ational Commercial Arbitration. 
24. In order to prevent double taxation, the Domini can Republic has an agreement in force with 
Canada;  and, in mid-2008, it was in the pr ocess of negotiating tax agreements with Chile, 
Chinese Taipei, the Czech Republic , Kuwait, the Russian Federation, Spain, and Trinidad and 
Tobago.  It also maintains an agreement on the ex change of tax information with the United States. 
(4) INTERNATIONAL TRADE RELATIONS  
(i) World Trade Organization 
25. The Dominican Republic acceded to the GA TT in 1950 and became a WTO Member in 
March 1995, following the approval by Congress of the Marrakesh Agreement.17  The Ministry of 
Foreign Affairs represents the country at the WTO. 
26. The Dominican Republic participated in the negotiations on telecommunications after the 
Uruguay Round, and adopted the Fourth Protocol annexed to the General Agreement on Trade in 
Services (GATS) and the Reference Paper annexed to  the Protocol on Telecommunications.  It also 
took part in the negotiations on financial services, and signed the Fifth Protocol annexed to the GATS,  
ad referendum , ratifying this in June 2003.18  In July 2006 the Dominican Republic acceded to the 
Information Technology Agreement (ITA).  It gran ts at least most-favoured-nation (MFN) treatment 
to all its trading partners. 
27. In relation to this Review, the Dominican author ities have indicated that they expect to obtain 
practical benefits from the successful conclusion of  the Doha Development Round.  In Agriculture, 
they are seeking the elimination of export subs idies, reduction of domestic support measures and 
improved market access.  They are also hoping for more predictable tariffs on non-agricultural 
products, as well as the adoption of trade facilitation measures and better defined trading rules.  The 
authorities have also stated that they attach priority  to the multilateral trade agenda.  They believe that 
preferential agreements should be consistent with  the multilateral agenda and help the Dominican 
economy to open up further and integrate mo re thoroughly in the global economic arena. 
28. The Dominican Republic is an active particip ant in the work of the WTO and in the 
Doha Development Round negotia tions, where it has submitted numerous proposals, either 
individually or in conjunction with other Members, particularly in Agriculture and Services (tourism, 
financial services and basic telecommunications) a nd on export subsidies.  The Dominican Republic 
has also given special attention to the issue of  "small economies" and, in conjunction with other 
countries, has submitted a variety of proposals on th e definition and measures that could be taken to 
implement special and differential treatment for those economies in the various negotiating areas of the Doha Development Round.
19 
29. The Dominican Republic has submitted numerous notifications to the various WTO bodies, 
although several others were delayed as of mid-2008 (see Table AII.1). 
                                                      
17 Decree No. 2-95 of 20 January 1995. 
18 WTO document WT/LET/447 of 26 June 2003. 
19 See, for example, WTO documents WT/COMTD/SE/W/12 of 21 February 2005;  
WT/COMTD/SE/W/20 and 21 of 9 February 2006, and 25 April 2006, respectively. WT/TPR/S/207 Trade Policy Review 
Page 22 
 
 
30. The Dominican Republic has participated in onl y a few trade disputes in the WTO:  it has 
been involved in three cases as a respondent and no ne as a complainant, and it has been a third party 
on three occasions.  Of the three cases in which th e Dominican Republic was the responding party, 
two related to certain measures affecting the importa tion and/or internal sale of cigarettes, in which 
Honduras was the complaining party.20  The other case concerned a foreign exchange fee being 
charged by the Dominican Republic on imports, which Costa Rica submitted to the Dispute 
Settlement Body.21  Only the second case relating to the domestic sale of cigarettes gave rise to a 
Panel Report22;  an appeal was subsequently lodged23 and arbitration took place24, pursuant to the 
WTO Dispute Settlement Understanding. 
(ii) Free trade agreements 
31. As part of its international integration stra tegy, the Dominican Republic has been negotiating 
bilateral and regional trade agreements during the period under review.  In addition to the free trade 
agreements already in effect with Central Amer ica and with the Caribbean  Community (CARICOM), 
the Dominican Republic has signed the Partial Scope  Agreement with Panama, which entered into 
force in November 2003;  the Free Trade Agreement between the Dominican Republic, 
Central America and the United States (DR-CAFT A), which took effect in March 2007 for the 
Dominican Republic;  and the Economic Partnershi p Agreement (EPA) between the European Union 
and the CARIFORO States (CARICOM and the Domi nican Republic), which wa s concluded in late 
2007. 
Free trade agreement with Central America 
32. In April 1998, the Dominican Republic concluded a free trade agreement with the countries of 
the Central American Common Market (CACM), consisting of Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.  The agreement was a pproved by the Dominican Congress in March 2000 
and entered into force in October 2001.  It has not been notified to the WTO.  It includes disciplines 
governing trade in goods and services, investment s, intellectual property, competition policy, 
government procurement, exceptions, and dispute settlement. 
33. The agreement establishes cross-border free trad e for most products.  Exceptions to duty-free 
treatment include vegetable oils, which face a tari ff of 15 per cent;  a number of petroleum products 
for which a tariff reduction schedule has been establis hed;  and a group of products excluded from the 
liberalization, including alcoholic beverages, tobacco , beans, garlic, onions, rice, wheat flour, coffee, 
sugar, chicken and powdered milk.  The market  access conditions established in the agreement 
between the Dominican Republic and Central America were incorporated as a special regime in an 
annex to the DR-CAFTA. 
                                                     
 
20 Dominican Republic – Measures Affecting the Importation of Cigarettes  ( D S 3 0 0 ) ;   a n d  
Dominican Republic – Measures Affecting the Importation and Internal Sale of Cigarettes  (DS302). 
21 Dominican Republic – Foreign Exchange Fee Affecting Imports from Costa Rica  (DS333). 
22 WTO document WT/DS302/R of 26 November 2004. 
23 WTO document WT/DS302/AB/R of 25 April 2005. 
24 WTO document WT/DS302/17 of 29 August 2005. The Dominican Republic WT/TPR/S/207 
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Free Trade Agreement with CARICOM 
34. The Dominican Republic signed a free trad e agreement with the countries of the 
Caribbean Community (CARICOM)25 in August 1998.  This was ratified by the Dominican Congress 
in January 2000 and entered into force on December 2001.  Trade with Haiti is not covered, since that 
country was not a member of CARICOM when the agreement was signed.  The instrument has not 
been notified to the WTO. 
35. The agreement establishes commitments for the elimination of tariffs and non-tariff barriers 
on merchandise trade;  rules of origin;  sanitary and phytosanitary measures;  technical barriers to trade;  a commitment to negotiate the progressive liber alization of trade in services;  liberalization of 
capital movements;  and the protection and prom otion of investments, among other disciplines. 
36. The Dominican Republic agreed to eliminate ta riffs on all imports from CARICOM countries, 
apart from a list of some 20 products, as from 2001.  In return, CARICOM members agreed to reciprocate with respect to imports from the Do minican Republic as from 2004.  The Dominican 
authorities have indicated that by mid-2008 this ha d not occurred, and the tariff reduction process was 
under review.  The agreement excluded from the liberalization process products such as beans, 
coconut, sugar, dairy products, fats and oils, wheat  flour, fish, fruit juices, garlic and onions, meat, 
rice, cement, various steel pr oducts and tobacco products.
 26 
Partial Scope Agreement with Panama 
37. In July 1985, the Dominican Republic signed a Partial Scope Agreement with Panama, which 
was ratified by Congress in February 1987.27  The agreement did not enter into force until 
November 2003, once the Joint Permanent Commi ssion responsible for negotiating the lists of 
products had finalized the implementi ng regulations and annexes thereto.  
38. The Dominican Republic agreed to allow duty -free importation of 101 Panamanian products, 
while Panama granted the same treatment to 103 Dominican products.  Prod ucts benefiting from 
duty-free status include 29 goods manufactured in fr ee zones.  The Implementing Regulations also 
contain provisions for the determination, certification and verification of the origin of merchandise, as 
well as disciplines on trade facilitation, cooperation a nd exchange of trade information, freedom of 
transit, and dispute settlement.  
Free Trade Agreement between the Dominican Re public, Central America and the United States 
39. The DR-CAFTA was signed on 5 August 2004 by the Dominican Republic, five 
Central American countries28 and the United States.  The agreement was passed into Law in the 
                                                      
25 CARICOM comprises the following countries:  Antigua and Barbuda, Bahamas, Barbados, Belize, 
Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the 
Grenadines, Suriname, and Trinidad and Tobago. 
26 For further information on CARICOM, see WTO (2005), Chapter II(4)(ii). 
27 Resolution No. 15-87 of 17 July 1987. 
28 Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. WT/TPR/S/207 Trade Policy Review 
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Dominican Republic on 9 September 2005 an d entered into force on 1 March 2007.29  T h e  
Dominican Republic has notified the treaty to the WTO.30 
40. The DR-CAFTA lays the foundations for creating a free trade zone and contains 22 chapters 
with their respective annexes.  These deal with national treatment and market access for goods (with 
special provisions on agricultural products, textiles and clothing);  rules of origin and corresponding 
procedures;  customs administration;  sanitary and phyt osanitary measures;  technical barriers to trade;  
trade protection;  government procurement;  invest ment;  cross-border trade in services;  financial 
services;  telecommunications;  electronic commerce;  intellectual property;  transparency;  administration of the agreement;  dispute settlement;  exceptions;  and final provisions.  The treaty 
also contains chapters on labour and environmental issues. 
41. The DR-CAFTA is applicable multilaterally, i.e. the vast majority of the mutual obligations 
are identical for all parties.  N onetheless, there are certain obliga tions, such as tariff quotas, that are 
applied bilaterally between the United States and each of the Central American countries or the 
Dominican Republic.
31 
42. In general, most industrial products and c onsumer goods became tariff free when the 
DR-CAFTA entered into force.  Tariffs on other pro ducts will be eliminated over periods of five to 
ten years, while agricultural products have longer ta riff reduction periods (15 to 20 years).  In the case 
of trade with United States, the Dominican Republic agreed to grant duty-free status for 76 per cent of 
its tariff lines (roughly 74 per cent of the value of its imports from the United States in 2002) when the agreement entered into force.  In addition,  it accepted linear tariff reductions over a five-year 
period for 5.5 per cent of its tariff lines, ten years for 10 per cent, and 15 years for 1.7 per cent.
32  It 
also established tariff quotas for several products fro m the United States (beef, pork, turkey meat, 
chicken thighs, rice, beans, and dairy products). 
43. In the case of trade between the Dominican Re public and each Central American country, the 
multilateral tariff reduction programme is applied,  except for a number of excluded goods (beer, 
alcohol, tobacco, sugar, coffee and other agricultura l products) or goods subject to tariff reduction 
commitments previously agreed upon in the FTA between the Dominican Republic and the 
Central American countries, which have been in corporated in the DR-CAFTA.  In practice, a 
Dominican or Central American importer can choose between two preferential regimes, provided that 
the corresponding rule of origin is fulfilled:  eith er the multilateral tariff reduction programme, or else 
the programme contained in the FTA between the Dominican Republic and Central America.  In 
addition, certain provisions on financial services a nd government procurement apply only between the 
Dominican Republic and its Central American counterparts. 
Economic Partnership Agreement with the Eur opean Union and the Caribbean ACP countries  
44. As a member of CARIFORO, the Dominican Republic has participated since 2004 in the 
negotiation of the Economic Partnership Agreement (EPA) between the European Union and several 
Caribbean States.  Like other regional agreemen ts of this type, the EPA exists to replace the 
Cotonou Agreement between the European Union a nd the countries of Africa, the Caribbean and the 
Pacific (ACP).  This restructuring, among other things, reflects the fact that the WTO exemption 
                                                      
29 The DR-CAFTA entered into force for the United States and El Salvador on 1 March 2006, for 
Honduras and Nicaragua on 1 April 2006, for Guatemala on 1 July 2006, and for the Dominican Republic on 1 March 2007.  As of August 2008, it had not yet entered into force in Costa Rica. 
30 WTO documents WT/REG211/N/4 and S/C/N/391, both of 6 March 2007. 
31 For further details on the forms of applica tion of the DR-CAFTA, se e González, A. (2005). 
32 IDB, OAS, ECLAC (2005). The Dominican Republic WT/TPR/S/207 
 Page 25 
 
 
covering tariff preferences granted by the European Communities to ACP countries under the 
Cotonou Agreement expired in late December 2007.33 
45. Negotiations between the EU and CARIFORO we re concluded in December 2007 and, as of 
mid-2008, the EPA was expected to be signed in Sept ember that year and enter into force when the 
corresponding constitutional requirements were fulf illed.  Unlike its predecessor, the EPA aims to 
gradually establish a free trade zone based on reciprocity among the parties.  In addition to eliminating tariffs, the EPA establishes disciplines in  several areas, including safeguards and trade 
remedies;  technical barriers to trade;  services;  investment;  intellectual property;  and government procurement;  as well as provisions on technical and financial assistance. 
46. The CARIFORO countries agreed to eliminate tariffs on roughly 83 per cent of their imports 
from the European Union during the first 15 years of  the EPA.  Although they may keep tariffs for a 
ten-year period on the products due to be liberalized , they must start lowering tariffs no later than the 
seventh year after the agreement en ters into force.  The same flexibility applies to other import taxes 
and charges.  The Dominican Re public agreed to grant CARICOM countries the same treatment as it 
grants to the European Union;  in return, the CARICOM countries will grant the same treatment to the 
Dominican Republic.  The more advanced CARIFO RO countries, such as the Dominican Republic, 
on average will allow free acce ss to service providers from the European Union with respect to 75 per 
cent of its services sector. 
47. In return, exports from CARIFORO countries will receive permanent tariff- and-quota-free 
access to the European Union ma rket, except for sugar and rice, for which there will be special 
transition periods.  Sugar exporte rs will benefit from an expande d annual quota of 60,000 tonnes in 
2008 and 2009.  In the case of rice, an 187,000 tonn e export quota was established for 2008, and one 
of 250,000 tonnes for 2009.  Rice exports  will be quota-free as from 1 January 2010. 
Other agreements and arrangements 
48. During the period under review, the Dominica n Republic benefited from tariff preferences 
granted unilaterally by the United States  under the Caribbean Basin Initiative (CBI).
34  Dominican 
exports covered by this scheme include textile prod ucts, footwear, and cigars and cigarettes.  The 
tariff concessions contained these instruments ha ve been bound and expande d under the DR-CAFTA. 
49. In addition, the Dominican Republic enjoyed unilateral tariff preferences granted by the 
European Union to ACP countries under the Cotonou Agreement throughout the period under review.
35 
50. Within the framework of the Generaliz ed System of Preferences (GSP), the 
Dominican Republic receives tariff preferences from Australia, Canada, Japan, New Zealand, 
Norway, the Russian Federation and Switzerland.  According to CEI-RD data, exports covered by 
these schemes amounted to US$55.2 million in 2006.  The Dominican Republic does not participate 
in the Global System of Trade Preferences among Developing Countries. 
                                                      
33 WTO document WT/MIN(01)/15 of 14 November 2001. 
34 For further information see WTO (2008), Chapter II(4)(iii). 
35 For further information, see WTO (2007), Chapter II(5)(iii)(c). WT/TPR/S/207 Trade Policy Review 
Page 26 
 
 
51. The Dominican Republic is a member of the Asso ciation of Caribbean States;  and it has also 
participated in negotiations for the creation of  the Free Trade Area of the Americas (FTAA). 
52. The Dominican Republic has embarked upon negot iations to establish free trade agreements 
with Canada (2007) and with Chinese Taipei (2006) ;  and it intends to explore the possibility of 
starting negotiations to sign preferential ag reements with Mexico , MERCOSUR, and Cuba.