u.s. commercial service dominican republic

U.S. Commercial ServiceU.S. Commercial Service

Dominican RepublicDominican RepublicCaribbean RegionCaribbean Region

May 2006

Presented by: Michael L. McGee

Commercial Counselor- Caribbean Region

FOCUS

Caribbean at a Glance

DR-CAFTA Agreement and Process

Benefits & Opportunities In Dominican Republic

Trials, Challenges, And Concerns

Programs / Services in CS Caribbean

Caribbean Regionat a Glance

• 26 Markets, 34 million people

• 2nd Largest U.S. export Market in Latin America

• Total Imports: $38 billion

• Imports from U.S.: $15 billion

• U.S. Import Market Share: 40%

Statistical Data For 2005

• President Bush signed DR-CAFTA legislation on August

2, 2005

• Dominican Congress Ratified DR-CAFTA on September

6, 2005

• Comprehensive reciprocal Trade Agreement; not

unilateral like CBI/CBTPA

• Immediate Duty Free entry for more than 80% of U.S.

manufactured exports; 10 year phase-in for remainder

DR-CAFTA: FactsDR-CAFTA: Facts

Dominican RepublicDominican Republic

• Better business and investment climate—

transparency, procurement, investment protection

• DR-CAFTA agreement will enter into force in the D.R.

when the country fulfills the conditions and

obligations needed to implement it

• Projected DR entry date is July 2006

DR-CAFTA: FactsDR-CAFTA: Facts

Dominican Republic- cont’dDominican Republic- cont’d

DR- CAFTA Country Percentage GDP Growth

Rates 2005

0

1

2

3

4

5

6

7

8

9

DominicanRepublic

Honduras UnitedStates

Nicaragua Guatemala Costa Rica El Salvador

Dominican RepublicDominican Republic

HighlightsHighlights

• Population: 9 million• GDP: $17 billion• GDP growth: 9%• Bilateral Trade US/DR: $9.3 billion • Total Imports: $7.9 billion• Imports from US: $4.7 billion• US Imports Market Share: 60%• Consumer Goods imports from US: 70%• Ranking for U.S. Exports to WH: 7th Largest

Note: Statistical data for 2005

Why Export to the Why Export to the Dominican Republic?Dominican Republic?

• Growing Use Of English In Business

• U.S. Standards Widely Recognized and Accepted

• Affinity to U.S. Culture

• Progressive Market Liberalization

• Few Import Restrictions

• Labeling and Testing Not Typically a Problem

Dominican RepublicDominican Republic

DR AdvantagesDR Advantages

• Geographic Proximity

• State-of-the-art ICT Infrastructure

• Modern FTZ infrastructure

• Five International Airports and More than 45 Direct

Flights to U.S. Territory Daily

• Eight Major Seaports including Punta Caucedo Port, a

state-of-the-art deepwater container terminal designed to

become a regional hub for the Caribbean, Central, and

South America

U.S. Presence in the Dominican Republic

ICT: Microsoft, Centennial, Lucent Technologies, Xerox

Finance: Citigroup, Western Union

Real Estate: Stewart Title, Century 21, Coldwell Banker

Automotive: Ford General Motors, MFI Products

Pharmaceuticals: Pfizer Labs, Merck Sharp & Dohme

Shipping: CSX, Tropical Shipping, Seaboard Marine, Bernuth Lines, FedEx, UPS

Oil: Chevron, Exxon/Mobil

Apparel: Hanes Caribe (Sara Lee), Timberland

Consumer Products: 3M, Colgate, Palmolive, Johnson & Johnson, Proctor & Gamble

Accounting: Price Cooper, KPMG

Energy: AES, Cogentrix

Airlines: American, United, Continental, Delta, US Airways, Jet Blue, Spirit

Hotel/Tourism: Westin, Clarion, Coral/Embassy Suites/Hilton, Renaissance/Courtyard/Marriott, Quality Inn

Building Products, and Construction Equipment

Medical Equipment and Healthcare Services Printing and Graphics Arts Equipment and Supplies

Automotive Parts and Service Equipment

Computers and Peripherals Hotel and Restaurant Equipment Air Conditioning and Refrigeration Equipment

$262 million$86 million 33%

$216.5 million

$105 million

48%

$170 million$132 million

77%

$85 million$59 million

69%

$81.5 million$50 million

61%

$19.5 million$13 million

67%

$46.5 million$15 million

32%

DominicanDominican RepublicRepublicBest Prospect Sectors for U.S. Best Prospect Sectors for U.S.

ExportersExportersMarket SizeMarket Size U.S. ImportsU.S. Imports Market ShareMarket Share

• Slow Progress Toward Preparations To Implement DR-CAFTA

• Increase in the illegal narcotics transit, delivered by air

or by boat from South America

• Inadequate Protection Of Intellectual Property Rights

• Lack of Transparency in Customs Operations

• The Failure of the Electrical Power System

• The Culture Of Impunity

• Lack of Transparency In Government Procurement

Trials, Challenges And Concerns

Products and Products and Services for U.S. Services for U.S.

ExportersExporters

• COUNSELINGCOUNSELING

• ADVOCACYADVOCACY

• MARKET RESEARCHMARKET RESEARCH

• FINDING INTERNATIONAL PARTNERSFINDING INTERNATIONAL PARTNERS

• TRADE MISSIONSTRADE MISSIONS

• INTERNATIONAL BUYER PROGRAMINTERNATIONAL BUYER PROGRAM

• OUTREACH AND COMMERCIAL DIPLOMACYOUTREACH AND COMMERCIAL DIPLOMACY

Upcoming EventsUpcoming Events

TRADE MISSIONS / INTERNATIONAL BUYER PROGRAMSTRADE MISSIONS / INTERNATIONAL BUYER PROGRAMS

Reverse Trade Mission to Miami, FL May 1-3, 2006National Hardware Show and Lawn & Garden World IBP May 9-11, 2006National Restaurant Hotel-Motel Show IBP May 20-23, 2006 Las Americas Trade Show June 4-6, 2006International Plastics Showcase – NPE 2006 IBP June 19-23, 2006Director General-Led SME Mission to the DR June 26-28, 2006 Enterprise Florida Trade Mission July 9-12, 2006FIME 2006 IBP August 16-18, 2006Magic Show 2006 IBP August 28-30, 2006Reverse Trade Mission to North Carolina September 5-8, 2006

UsefulContact Information

• U.S. Commercial Service in the Caribbean:www.buyusa.gov/caribbean/en

• U.S. International Trade Administration:www.export.gov

• Office of the United States Trade Representative:www.ustr.gov

• Business Coalition for U.S.-Central America Trade:www.uscafta.org

• USDOC CAFTA Websitewww.ita.doc.gov/cafta

• Trade Compliance Center, U.S. Dept. of Commerce:www.tcc.mac.doc.gov

U.S. COMMERCIAL SERVICEU.S. COMMERCIAL SERVICECARIBBEANCARIBBEAN

Dominican RepublicMaria Elena Portorreal

Tel: (809) 227-2121Fax: (809) 920-0267

maria.elenaportorreal@mail.doc.gov

JamaicaEmile Finlay

Tel: (876) 920-2826Fax: (876) 920-2580

emile.finlay@mail.doc.gov

BarbadosDoreen Weekes

Tel: (246)436-4950Fax: (246) 228-6084

doreen.weekes@mail.doc.gov

Trinidad & TobagoHannah Bereaux

Tel: (868) 622-6371Fax: (868)622-2444

hannah.bereaux@mail.doc.gov

www.BuyUSA.gov/caribbean/en

Michael L. McGee Counselor for Commercial Affairs for the Caribbean

michael.mcgee@mail.doc.gov