u.s. commercial service dominican republic
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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
JamaicaEmile Finlay
Tel: (876) 920-2826Fax: (876) 920-2580
BarbadosDoreen Weekes
Tel: (246)436-4950Fax: (246) 228-6084
Trinidad & TobagoHannah Bereaux
Tel: (868) 622-6371Fax: (868)622-2444
www.BuyUSA.gov/caribbean/en
Michael L. McGee Counselor for Commercial Affairs for the Caribbean