WORLD TRADE
ORGANIZATIONWT/TPR/M/105
13 January 2003
(03-0146)
Trade Policy Review Body
7 and 9 October 2002
TRADE POLICY REVIEW
DOMINICAN REPUBLIC
Minutes of Meeting
Chairperson:  H.E. Ms Amina Chawahir Mohamed (Kenya)
Page
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3
II. OPENING STATEMENT BY THE REPRESENTATIVE OF THE
DOMINICAN REPUBLIC 4
III. STATEMENT BY THE DISCUSSANT 9
IV. STATEMENT BY MEMBERS OF THE TRADE POLICY REVIEW BODY 10V. REPLIES FROM THE REPRESENTATIVE OF THE DOMINICAN REPUBLIC
AND ADDITIONAL COMMENTS 13
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 20WT/TPR/M/105
Page 3
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON
1. The second Trade Policy Review of the Dominican Republic was held on 7 and
9 October 2002. The Chairperson (H.E. Ms Amina Chawahir Mohamed) welcomed the Honourable
Dr. Hugo Tolentino Dipp, Minister of Foreign Affairs, as head of the delegation of the Dominican
Republic, the delegation from Santo Domingo, and Ambassador Rubén Núñez and his colleaguesfrom the Mission in Geneva.  She also welcomed the discussant, H.E. Dacio Castillo (Honduras).  As
usual, the discussant would speak in his personal capacity and not as a representative of his
government.  In accordance with the established procedures, he had made available, in advance,
outlines of the main issues he intended to raise (document WT/TPR/D/84).
2. The Chairperson recalled the purpose of the TPR Mechanism and the main elements of the
procedures of the meeting.  The Report by the Government of the Dominican Republic was contained
in document WT/TPR/G/105 and that of the Secretariat in document WT/TPR/S/105.  Copies ofadvance written questions, submitted by Chinese Taipei, Japan, Costa Rica, the Republic of Korea,
the United States, and Canada, had been transmitted to the delegation of the Dominican Republic.
These questions and the replies provided by the delegation of the Dominican Republic are reproduced
in document WT/TPR/M/105/Add.1.
3. The Chairperson commended the Dominican Republic on its liberalization and modernization
efforts over the past years.  It had improved access to its already generally open market.  Structural
reforms, together with an ambitious privatiza tion programme, had contributed significantly to
economic growth.
4. Both the Secretariat and Government Reports emphasized the Dominican Republic's
commitment to trade liberalization through multilateral and regional initiatives. Against thebackground of the increasing role of regional initiatives in Dominican trade policy, she thought it
would be interesting to hear the views of the Dominican delegation on this form of trade liberalization
and how the Dominican authorities intended to balance it with its multilateral objectives.  Also,
considering that the Dominican Republic intended to undertake further reforms, she believed that
Members would like to hear whether there were plans to introduce changes to the free-trade zoneregime, or in sectors like electricity.WT/TPR/M/105
Page 4
II. OPENING STATEMENT BY THE REPRESENTATIVE OF THE DOMINICAN
REPUBLIC
Introduction
5. The representative of the Dominican Republic (Dr. Hugo Tolentino Dipp, Minister of Foreign
Affairs) said that in its second Trade Policy Review the Dominican Republic wished to reiterate its
commitment to the multilateral trading system and li beralization of markets, as means of achieving
economic growth and development in order to improve the living standards of its people.
6. As a developing country, the Dominican Republic was determined to continue to support the
fundamental principles and objectives of the multilateral trading system, which was why the
authorities had made every effort to participate in the discussions and negotiations within the WTO.
Macroeconomic aspects7. Between 1996, the time of its last Review, and 2001, Dominican economic growth was
among the strongest in Latin America, made possible largely by macroeconomic stability, greater
openness to the outside world, and considerable private-sector involvement in the economy.
8. The gross domestic product rose at an annual average of 6.8%, 4 percentage points higher
than the average for Latin America over the period.  Even in 2001, when the strong growth patternwas interrupted by the weakening of the global economy and the events of 11 September, the
Dominican Republic's gross domestic product was 5.4 times higher than the average for the region.
9. During the first half of 2002, real GDP grew by 6.0%, despite the persistence of adverse
external factors.  Communications, construction, el ectricity, tourism, trade and manufacturing were
among the sectors that contributed most to those rates of growth.
10. Services generated most jobs, with 58.6% for the period 1996-01, followed by manufacturing
with 24.0% and agriculture with 17.4%.
11. The economic boom was combined with a low rate of inflation, at an annual average of
6.44%.  This low inflation was largely due to the stab ility of the exchange rate.  In the first half of
2002, the cumulative inflation rate was 2.2%.
12. Between 1996 and 2001, the Dominican Republic reco rded a fiscal deficit only twice, in 1996
and 1999.  This was a reflection not only of disciplined spending, but also the considerable efforts to
increase public revenues, which rose at an annual rate of 14.4%.  During that period, the Central
Government generated a budget surplus equivalent to 0.5% of GDP.
13. The Dominican Republic's trading partners had benefited from a rapidly expanding market
and an open foreign trade regime.  The majority of those countries had increased their exports to the
Dominican Republic in recent years.
14. Prudent and firm management of macroeconomic policy had been a key factor in the growth
and stability of the Dominican economy as a whole.  Consequently, the present Government intended
to continue pursuing those policies in order to maintain sustained development.
Progress in trade policy reforms
15. Since its previous Review, the Dominican Republic had made important legal reforms, which
had served to institutionalize the bases of its international trade policy.  These included theWT/TPR/M/105
Page 5
promulgation of the Foreign Investment Law in 1995 and its implementing regulations issued in 1996
and amended in 1997, which abolished all exceptions and preferences in respect of national treatment.
16. In addition, measures were taken in relation to previously restricted sectors, and limits on
transfers of capital and profits were abolished.  Foreign investment had played a crucial role in
promoting development and foreign trade.  Total foreign capital investment for the period 1996-01was US$4.7 billion, which represented 4.6% of GDP for the same period.
17. International risk-rating agencies, such as Moody's and Standard and Poor's, had raised the
Dominican Republic's country-risk rating by 3 points.  These and other aspects, such as the favourable
climate for foreign direct investment, contributed to the growing inflow of investment and greater
economic dynamism.
18. The second area that had been the subject of important reforms since 1996 was tariffs and
customs procedures.  Under the reform in 2000, the Dominican Republic abolished tariffs peak andsubstantially reduced the MFN tariff, for which the average applied rate fell to less than half, from
17.8% to 8.6%, according to reports by the WTO Secretariat.  Likewise, 66% of tariff lines were
subject to tariffs between 0 and 8%, and 99% between  0 and 20%, this compared favourably with the
44% and 62% of lines for the same tariffs in 1996.
19. This reform had led to a considerable decline in the share of customs duties in State revenues
and a tax system with fewer distorting effects.  As a result of the reform package, customs duties as a
proportion of total State revenues fell from 26% in 2000 to 16% in 2001.  The resulting decline in
fiscal revenues was offset by the increase in revenues from domestic taxes.
20. In addition, since 1 July 2001, under Decree No. 667-01, the Dominican Republic had been
applying the provisions of the WTO Agreement on Customs Valuation.  All the legal instrumentsrelating to the application of the Agreement were duly notified to the Organization.
21. Decree No. 114-98 of 16 March 1998 repealed a number of decrees and administrative
decisions by State organs, which contained various provisions considered to be barriers to trade;
these included non-automatic import licences for food products, cement, and oil.
22. He noted that the third major area of reforms carried out by the Dominican Republic
concerned intellectual property rights.  One of the Dominican Republic's greatest achievements in this
respect in the international sphere was the successful presentation of its legislation for review by the
other WTO Members, at the meeting of the Council for Trade-Related Aspects of Intellectual
Property Rights (TRIPS) from 18-22 July 2001.
23. Current law and the Dominican Government's efforts and actions to ensure enforcement of
those rights have helped to create a climate of resp ect for intellectual property.  In this respect, the
Dominican Republic had some of the most up-to-date legislation in Latin America, and above all, it
was consistent with the substantive provisions of the TRIPS Agreement.
24. This modern legislation was due to the Dominican Government's efforts over the past five
years relating to protection and regulation of intellectual property rights as a means of encouraging
the country's industrial and cultural development.  The reforms consisted of:  the General
Telecommunications Law, No. 153 of 1998, which created the Dominican Institute ofTelecommunications  (INDOTEL) as the regulatory body for the sector under a system of free
competition;  the Industrial Property Law, No. 20-00 of April 2000 and its related
Regulations No. 408-00 of August 2000;  and the Copyright and Related Rights Law, No. 65-00 of
August 2000 and its related Regulations No. 362-01 of March 2001.WT/TPR/M/105
Page 6
25. In its constant efforts to monitor breaches of the laws on intellectual property, the Dominican
Government had created the National Commission fo r Intellectual Property Rights Protection under
Executive Decree No. 303-01 of March 2001.  Its purpose was to coordinate national policy law with
the various relevant institutions, to prevent breaches of intellectual property.  The Commission
worked closely with the Intellectual Property Department in the Office of the Attorney-General of theRepublic.
26. As a further indication of the Dominican Republic's commitment in this area, the Chairman of
the INDOTEL Board was appointed as Commission Coordinator and held the vice-presidency of the
Negotiating Group on Intellectual Property  of the Free Trade Area of the Americas.  The country had
proposed his candidacy following the seventh ministerial meeting of the FTAA.
27. Furthermore, the National Copyright Office, in addition to its inspections and anti-piracy
activities, had concluded an agreement with the Dominican Institute of Telecommunications(INDOTEL) on joint actions to enforce compliance with copyright by broadcasting organizations,
such as television and cable television operators.
28. The telecommunications sector had undergone major changes, which had almost doubled its
contribution to GDP between 1996 and 2001, from 3.5% to 6.5%.  The telecommunications market
was open to the commercial presence of foreign enterprises and there were no limits on nationaltreatment.
29. As to regional affairs, the Dominican Republic was increasingly moving towards greater
integration.  The country had concluded two free-trade agreements, the first with the countries of
Central America and the second with the CARICO M member countries.  The Dominican Republic
was also an active participant in the negotiations for the formation of the Free Trade Area of theAmericas (FTAA).  Recently, as a member of the African, Caribbean and Pacific Group of States
(ACP), it had entered into negotiations for the economic Association Agreement between the ACP
Group and the European Union, which would aim at  the progressive elimination of barriers to
international trade between the two groups of countries.
30. At bilateral level, the Dominican Republic was extremely interested in concluding a free-trade
agreement with the United States, since Dominican industry would be at a comparative disadvantage
in accessing the North American market if U.S. negotiations with Central America came to fruition.
31. A series of meetings had been agreed with Canada to negotiate a free-trade agreement;  and
there had been progress with Panama and Venezuela in sharing information and product offers with a
view to concluding negotiations in January 2003.
Electricity sector
32. The Dominican Government's efforts to reduce its involvement in economic activities through
the privatization of State enterprises also involved other sectors.  In 1997, the General State Enterprise
Reform Law, No. 141-97 was promulgated, with th e aim of increasing private ownership and
management of State enterprises.  So far, the pr ivatization programme had brought in investment of
some US$1.1 billion.
33. The electricity sector was worth mentioning in this connection.  The macroeconomic effects
of the Government's energy policy were unmistakable.  Despite operational and financial difficulties,
the electricity sector had recorded constant high rates of growth, much higher than overall GDP and
higher than the  majority of other sectors of the economy.  Continuing reforms in the sector had given
rise to only 11% growth in value added in 2000 a nd 18.8% in 2001.  This growth had been surpassed
by the telecommunications sector.  There had been three pillars of the sustained development in thisWT/TPR/M/105
Page 7
sector:  foreign direct investment;  the increase in energy production;  and improved efficiency in
power generation, transmission, and distribution.
34. Foreign direct investment (FDI) in the energy sector grew substantially over the period 1996
to 2002, making it the second largest recipient of foreign investment.  In 2001, for example, it rose by
25.8%.
35. A crucial result of the new private investment and capitalized enterprises was the change in
the proportions of fuel used to generate electricity, due to the introduction of 165 MW using coal as a
fuel.  During 2002, a further 125MW will be converted back to coal and 200 MW to natural gas.  A
new era in the use of fuel was beginning with the reduction, from 90% to less than 50%, of the
country's dependency on oil to generate electricity.
36. The improved efficiency of the electricity supply grid was another major achievement of the
reform process and the big investments in the sector.
37. Distribution losses had fallen from 43.6% in 2000 to 32% in April 2002.  This was due to the
introduction of measures to control fraud, and attract new users, and to cuts in services to sectors with
the greatest proven illegal connections.  In this regard, invoicing of kilowatt/hours increased by 43.8%
in the residential sector, by 2.4% in industry, and by 33.5% in the commercial sector.
38. The Dominican Republic had introduced a strategy of intensifying and extending reform of
the sector, progressively establishing the bases for a genuinely sustainable and competitive electricity
market.  The General Electricity Law provided the institutional and regulatory framework to underpin
the process, offering greater security to investment s, and, above all, it encouraged restructuring of the
high and inflexible electricity charges established at the beginning of the reforms.
39. In February and August 2001, general negotiations were initiated to overcome contractual
weakness.  They were conducted transparently, with  all the private and capitalized agents in the
market and the various public institutions in the electricity sector taking part.  These negotiations led
to new contracts, which allowed:  (i) commercial transactions between agents to be more transparent;
(ii) restructuring of indexes to apply fluctuations in international fuel prices correctly;  (iii) better
credit guarantees for participating enterprises;  (iv) reductions of 25% in the price of electricitygenerated in the wholesale electricity market; and (v) creation of a mechanism whereby fluctuations
in the cost of fuel would be reflected in generating costs.
40. The negotiations in 2001 did not rule out the possibility of reductions in electricity prices to
final users in the future, since the proportion of energy under contract did not increase, the added
value of distribution was not fixed, the price of hi gh tension transmission was updated and indexed,
and the impact and reference of the fuel index was reduced.
41. Contracts with power generating companies were being renegotiated during 2002, to
eliminate subsidies to the consumer and State intervention in prices.  In addition, through the
Superintendency of Electricity, consumer protection mechanisms and transparency in the
administration of power generating and distribution companies were strengthened.
Free trade zones
42. As indicated in the Secretariat Report, free zones were the cornerstone of production of
manufactured goods for export in the Dominican Republic.  In 2001, there were 500 enterprises,
providing 175,000 jobs, representing almost 6% of th e country's total employment.  As well as being
an important source of jobs and transfer of technology, free zones had been successful in developing
the country's export capacity.WT/TPR/M/105
Page 8
43. In this regard, the extension to 2007 requested under Article 27.4 of the WTO Agreement on
Subsidies and Countervailing Measures, which was approved at the Ministerial Conference in Doha,
would be used by the Dominican authorities to ca rry out local studies, in order to undertake the
reforms necessary for the progressive elimination of practices incompatible with the Agreement.  This
would take into account the impact that such measures might have on investment, employment, thebalance of payments, and other areas of development.  This source of employment was essential for
fairness and social harmony in the country and for reducing illegal migration to the developed
countries.
Conclusion
44. The Dominican Government believed that in the last six years it had shown its firm intention
to create a more open and liberal economy so as to take full advantage of the multilateral tradingsystem.  That was why the Dominican Republic was determined to continue the process of reform
necessary to achieve sustained levels of economic growth and development, in order to improve the
living standards of its people.WT/TPR/M/105
Page 9
III. STATEMENT BY THE DISCUSSANT
45. The discussant (H.E. Mr. Dacio Castillo) welcomed the Dominican delegation and thanked
the Secretariat for its excellent work.
46. He commended the Dominican Republic for its progress in liberalization and its continuing
efforts to open up its economy, as well as to reduce government involvement in economic activities.
47. The Dominican economy had experienced exceptional growth, with an average of around
7.6% during 1996-00, while keeping inflation under control at an average of some 4.4% over the same
period.  These positive results were due to prudent and efficient management of its macroeconomicpolicy.
48. The economy of the Dominican Republic, like many developing countries, was benefiting
from systems of preferences, especially those granted by the United States and the European
Communities, among others.  As a result, its economy was highly dependent on the U. S. economy.
He asked if the authorities could indicate any Go vernment strategy for targeting its exports towards
other markets, while maintaining a growing but less dependent economy.
49. Considerable reforms had been carried out under the trade policy regime; among them the
Foreign Investment Law provided a very favourable climate to attract investment.  In addition, tariff
reforms had reduced the average applied tariff to less than half, from 17% in 1996 to 8.6% currently.As a consequence of these reforms, the WTO Agreement on Customs Valuation had beenimplemented, though minimum prices were being maintained for some products.
50. Since the last Trade Policy Review of the Dominican Republic, new laws had been enacted
on telecommunications, intellectual property, and privatization of state enterprises.  In the light ofthis, he asked whether there were plans to continue the present tariff reductions.
51. Free-trade zones were the Dominican Republic's main export promotion tool.  In this respect,
he enquired about the Government's intentions once the extension granted under the WTO Agreement
on Subsidies had expired.  He pointed out that the enterprises most affected would be in the textiles
sector, and asked if there was any strategy for keeping this industry afloat.
52. The Public Enterprise Reform Law had considerably reduced State intervention in economic
activities.  However, under this reform, the State retained a 50% stake in the new enterprises.  One of
the main sectors affected by the privatization process was electricity, but the measures taken had not
solved the crisis in the sector.  He asked the Dominican delegation for an indication of the
Government's plans to deal with this situation, which directly affected Dominican economic
development.
53. The Secretariat Report mentioned that the Dominican authorities were contemplating
accession to the plurilateral Agreement on Government Procurement.  He asked for an indication of
the steps being taken to formalize accession and how this strategy fitted into the new Law on publicprocurement.
54. According to the Secretariat Report, the Dominican Republic had formally requested the
Government of the United States to include it in th e negotiations on a free-trade agreement with the
Central American region.  He asked whether the Dominican delegation could give some idea of thepresent situation.
55. He noted that there was little international participation in the Dominican financial sector.  He
asked if the Dominican authorities could comment on the principal reforms contained in a draft
monetary and financial law that had been presented to Congress for approval, and on its current
situation.WT/TPR/M/105
Page 10
IV. STATEMENTS BY MEMBERS OF THE TRADE POLICY REVIEW BODY
56. Members welcomed the delegation of the Dominican Republic.  They thanked the delegation
for the comprehensive introductory remarks, as we ll as the discussant for his valuable contribution,
and the Secretariat for its report.  A number of Members referred to the questions they had submitted
to the delegation in writing;  they looked forward to receiving the replies by the Dominican Republic.
57. The representative of the Chinese Taipei congratulated the Dominican Republic on its
dynamic economic performance.  This has been produced by sound macroeconomic policies, coupled
with a drive towards more openness and increased private-sector participation.  He referred to the two
Members', cooperation in a number of areas including agriculture, fisheries, technology transfer,
investment, and trade.  They had signed a bilateral investment agreement in 1998 in order to provide
small and medium-sized enterprises from Chinese Ta ipei with incentives to invest in the Dominican
Republic.  Chinese Taipei recognized the importa nce of free-trade zones to the growth of the
Dominican economy and fully supported the Dominican Republic's efforts to extend the transition
period for these zones.  Referring to the enforcement of intellectual property rights in the Dominican
Republic, he requested information on the concrete measures to be adopted to protect rightholders.
58. The representative of Japan commended the Dominican Republic on its growth performance,
but also mentioned its high poverty rate of 25%.  She underlined Japan’s role as one of the leaders in
technical assistance to the Dominican Republic in areas such as education, health, and agriculture.
She requested the Dominican Republic to reduce the gap between applied and bound tariff rates by
decreasing its bound rates during market access negotiations.  She hoped that the Dominican Republic
would soon ratify the Fifth Protocol to the GATS.
59. The representative of Costa Rica referred to the rapid growth of the Dominican economy.  He
stated that trade between the two Members was mode st, but should be able to grow in the future
especially with the Free Trade Agreement between the Dominican Republic and Central America.
Trade with the Dominican Republic was US$60.7 million in 2001 but had been stagnating since then.
He requested information on the future objectives of trade policy, on the foreign direct investment
regime, and on the administration of SPS measures.
60. The representative of the Republic of Korea commended the Dominican Republic on its
economic growth, along with its widespread and consis tent structural reforms.  He noted that trade
volume between the two Members was less than US$2 million a year and hoped for closer
cooperation in the future.  He requested clarification concerning the prospects of the Dominican
Republic abolishing its consular invoice requirement, and hoped that the minimum import price
system would be abolished as early as possible.
61. The representative of Canada commended the Dominican Republic on its active participation
in WTO negotiations, and looked forward to cooperating closely to achieve significant progress by the
next Ministerial Meeting.  He commended the Dominican Republic for its wide-ranging economic
reforms, welcomed the simplified tariff structure, and noted the limited use of non-tariff barriers.  He
encouraged the Dominican Republic to reduce the wide gap between applied and bound tariff rates in
order to allow for more predictable market access conditions, and to address the problems in theelectricity sector.  He was pleased to note that the Dominican Republic had passed modern intellectual
property legislation.
62. He noted the importance of the new legislation on foreign direct investment and mentioned
Canada’s role as an investor in the Dominican Republic, with major investments in mining, banking,
telecommunications, and tourism.  He also noted that the Dominican Republic was consideringaccession to the plurilateral Agreement on Government Procurement. The Dominican Republic was
entering into new bilateral and regional agreements with other countries, including Canada.  HeWT/TPR/M/105
Page 11
considered these integration efforts as complementary to, and supportive of, multilateral trade
liberalization.
63. The representative of the European Union  pointed out the strong relationship between the two
Members and noted the transformation of the Dominican economy from heavily protected and
inward-looking to partially liberalized and outward-l ooking.  Despite impressive growth rates, 25% of
the Dominican Republic's population still lived in poverty and the share of the GDP invested in the
social sector remained amongst the lowest in Latin America and the Caribbean.  The Dominican
Republic needed to tackle its distribution challenges and to broaden its base of growth through
economic diversification.
64. The EU was a major source of development assistance;  the principal cooperation instruments
included trade preferences.  The EU strategy vis-à-vis the Domincan Republic was based on poverty
reduction, managed integration into the global economy, and the promotion of democracy and humanrights.  The Dominican Republic participation in the Cotonou Agreement, under which it was stated
that economic and trade cooperation should be mutually reinforcing.  New negotiations on EU-ACP
Economic Partnership Agreements had been launched recently;  through trade and economic
cooperation both sides would work to integrate developing countries into the global economy and
combat poverty.  He commented that an internat ionally oriented economy, such as that of the
Dominican Republic, could only benefit from a strong multilateral trading system with predictable,
transparent and fair rules.  Therefore, the EU encouraged the Dominican Republic to show more
commitment in the ongoing Doha Development Agenda negotiations.
65. He requested information on the type of measures the Government intended to take in order to
improve the legal and contractual certainty of overse as investors, and sought clarification on when the
Government planned to modify the tax differential between rum and other spirits, bringing ISC parity
to all spirits at 35%.  Referring to the importance of the WTO Agreement on Technical Barriers to
Trade for transparency, he encouraged the Dominican Republic to make notifications under this
Agreement.  He requested information as to the Dominican Republic's intention to accede to the
plurilateral Agreement on Government Procurement.  He also requested the Dominican Republic'sviews regarding the interface between its regional integration efforts and the WTO.
66. The representative of the United States  noted the excellent cooperation between the two
Members on matters such as security and counter-narcotics efforts.  She commended the Dominican
Republic for its strong stance against abusive and exploitative child labour.  She congratulated the
Dominican Republic on its progress in instituting economic reforms since its 1996 Trade Policy
Review;  it had experienced remarkable economic growth, increased investment, and characteristics
of a maturing economy.  The growing and competitive services sector, which had been leading jobcreation, was also significant.  She commended the Dominican Republic on the recent liberalization in
its services trade regime and encouraged it to sche dule commitments that reflect these policy changes.
She raised concerns about the Dominican Republic's intellectual property rights regime and about its
excise tax on spirits.  Referring to the role of free-trade zones in the Dominican economy she was
concerned that sectoral divergences between free-trade zones and the domestic economy had not beenadequately addressed.
67. The representative of Brazil commended the Dominican Republic on its high rate of growth
since the last Trade Policy Review, especially in the services sector.  However, he raised concerns
regarding the services sector, export subsidies, and the import licensing regime.
68. The representative of India commended the Dominican Republic on its economic
performance and expressed confidence in its ability to tackle the many constraints that faced
developing economies.  He noted their strong bilateral relations and close cooperation in articulating
the concerns of developing countries.WT/TPR/M/105
Page 12
69. The representative of Hong Kong, China complimented the Dominican Republic on its
economic growth, accompanied by macroeconomic stability and increased openness of the economy.
He hoped that the Dominican Republic's bilateral and regional integration initiatives would reinforce
the liberalization efforts being taken in the WTO.  The Dominican Republic’s tariff structure was
simple but there was a wide gap between the bound and applied rates.  He encouraged the DominicanRepublic to participate actively in non-agriculture market access negotiations with a view to reducing
the bound rates and addressing tariff escalation.  He welcomed the streamlining of customs
procedures and the adoption of WTO-based customs valuation rules, but noted that the Dominican
Republic has not fulfilled various notification obligations such as on import licensing procedures and
on technical regulations and standards.  The Dominican Republic was considering accession to the
plurilateral Government Procurement Agreement and he encouraged it to actively consider the
accession.  He also noted that under certain domestic laws, the government was required to givepreference to domestic suppliers or prohibited from acquiring imported goods and services in public
procurement.  He encouraged the government to actively consider removing the discriminatory
treatment in favour of domestic products, servic es and suppliers in its review currently underway.   He
commended the Dominican Republic on the increased openness of its services sector and encouraged
it to make further commitments in the ongoing services negotiations.
70. The representative of Uruguay  pointed out the active participation of the Dominican Republic
in all fields of the WTO and its commitment to the multilateral trading system.  She congratulated the
Dominican Republic on its rapid economic growth due to its continued restructuring efforts, and
highlighted its participation in the ongoing negotiations.
71. The representative of Jamaica commended the Dominican Republic on its economic
performance since the 1990s and noted the positive impact of the prudent macroeconomic policies
pursued by the Government.  The services sector was the most dynamic in the economy and tourism
contributed significantly to economic growth.  The importance of the tourism sector was reflected in
the active participation of the Dominican Republic in the ongoing WTO services negotiations.  She
highlighted the importance of the Cotonou Agreement, the FTAA negotiations, the Association ofCaribbean States, and the FTA between CARICOM and the Dominican Republic.
72. The representative of Switzerland  complimented the Dominican Republic on its growth and
economic restructuring within the spirit of the WTO.   Growth had contributed to the creation of new
jobs and a greater participation of women in the labour market.  The services sector was very
important to the economy;  however its strong dependence on tourism created some vulnerability to
external factors.  The Dominican Republic should increase its attractiveness for foreign investors,
allow more competition in the financial services sector, and address the problems in the energy sector.He noted that the wide gap between bound and applied tariff rates impeded the predictability of
market access.  He commended the Dominican Republic on the adoption of new laws on intellectual
property rights.
73. The representative of Nicaragua commended the Dominican Republic on its reforms in the
services sector, specifically telecommunications and tourism.  The Dominican Republic had set an
example for liberalization for all WTO Members.
74. The representative of Cuba noted the substantial trade volume between Cuba and the
Dominican Republic, amounting to US$47 million in 2001.  She recalled the long-standing economic,
social and cultural relationship between the tw o Members and the close cooperation between their
delegations at the WTO.  An important aspect of bilateral cooperation was the sugar industryassistance programmes.  She emphasized the active participation of the Dominican Republic in the
WTO, particularly relating to issues of interest to developing countries, and congratulated the
Dominican Republic on its role as coordinator of the ACP group in Geneva.WT/TPR/M/105
Page 13
V. REPLIES FROM THE REPRESENTATIVE OF THE DOMINICAN REPUBLIC AND
ADDITIONAL COMMENTS
75. The Chairperson invited the representative of the Dominican Republic to foccus his responses
on three main themes:  (i) economic and institutional environment, (ii) trade policies by measure, and
(iii) sectoral policies.
76. The representative of the Dominican Republic thanked the Members for the interest shown in
the second Trade Policy Review of the Dominican Republic, the discussant for his excellent
presentation, and the Chairperson for the efficiency with which she had led this meeting.  Written
replies to all the advance written questions submitted by Members had been handed to the Secretariat.
(i) Economic and institutional environment
77. The considerable growth in the Dominican economy was not just the fruit of sound
macroeconomic policies, but above all the fruit of efforts and determination to liberalize the country'strade.  As indicated in the Report of the Secretariat, the trade and investment regimes of the
Dominican Republic were essentially liberal, and liberalization had been largely autonomous.
78. Since its last Trade Policy Review, the Dominican Republic had made major legal reforms in
foreign investment, customs procedures, export promotion, telecommunications, electricity, capital
markets, social security, intellectual property, hydrocarbons, tariffs, and capitalization of stateenterprises.  The last of these involved joint investment by the public sector and private investors in
various state electricity companies, wheat flour, and other goods and services.
79. Law No. 16-95 on foreign investment established equal treatment for national and foreign
investment except in relation to national security a nd the environment.  The Law required registration
of foreign investments with the Central Bank, for statistical purposes, to obtain balance-of-paymentsinformation.
80. The Foreign Investment Law also established equal treatment for foreign and national natural
and legal persons who engaged in the importation and distribution of goods, with respect to
compensation for termination of contracts.  Thus, there was no discrimination between a national and
a foreign supplier when a contract for local repr esentation was terminated in accordance with Law
No. 173 on protection of concessionaires.
81. Environmental impact studies were required in all sectors and activities with the potential to
affect the environment.  Those provisions of the General Law on the Environment and Natural
Resources, Law No. 64-00 of 18 August 2000, applied equally to nationals and foreigners.
82. With a view to continuing the process of liberalization and restructuring the Dominican
economy, a trade negotiations agenda had been established covering two major, complementary areas:
(a)  The multilateral and regional agenda83. This consisted of the negotiations in the World Trade Organization, in the Free Trade Area of
the Americas (FTAA) and in the framework of the European Union Association Agreement, or
Cotonou Agreement.
84. For the Dominican Republic, fulfilling its WTO obligations meant harmonizing institutions,
laws, and regulations established under the multilateral agreements of the Uruguay Round.  Thestrengthening of WTO disciplines and the need for international trade agreements to be consistent
with the WTO principles were making regional negotiations and global negotiations (in the WTO)
more interdependent.  The Dominican Republic rema ined committed to extending liberalization at theWT/TPR/M/105
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multilateral level, while at the same time making efforts at the regional and bilateral levels that
complement those conducted in the framework of the WTO.
85. The FTAA formation process should be concluded in 2005, and should contain WTO-
enhancing disciplines.  The country was an active participant in the nine FTAA negotiating groups
and had made market-opening proposals and offers in five of them, in accordance with the plannedtimetable.
86. In the framework of the FTAA, the Dominican Republic would present its initial offers for
tariff reductions in four phases, between 15 December 2002 and 15 February 2003, as timetabled.
87. The negotiations on trade aspects of the Cotonou Agreement, which had been launched
recently also had to be consistent with the WTO.  The Dominican Republic was participating in the
process together with CARICOM and formed part of the Ministerial Trade Committee that
coordinated the preparatory stage of the negotiations.
(b) The bilateral agenda
88. This comprised the negotiation of free-trade agreements with the United States and Canada,
and the negotiation with Panama and Venezuela of partial scope agreements with specific lists.
89. The FTAs with Central America and CARICOM had begun to take effect in 2001.
Administrative council meetings had been held for each of the treaties, to decide procedures and airunresolved issues and access problems.  Rules of origin had been defined to allow transfer of several
products from the restricted list to the free market.
90. A meeting timetable for negotiating a free-trade agreement had been agreed with Canada.
Canada was already holding the internal consultations required to begin the negotiating process.
Meetings were also planned with Panama and Venezuela to exchange information and product offersfor the negotiations that began in October 2002.  Discussions had begun with Cuba and Haiti with a
view to negotiating partial scope agreements with positive product lists.
91. All these initiatives demonstrated the Dominican Republic's manifest interest in diversifying
its trade flows and building an economic base that was less vulnerable to external shocks.
92. The increased share of the services sector in the Dominican economy and the major growth in
tourism, telecommunications, and construction showed that this diversification was already under
way.
93. To this end, the Dominican Government had created the National Council on Competitiveness
in 2001, made up of representatives of the public and private sectors.  The Council's primary function
was to prepare and implement the National Competitiveness Plan, which could be used to evaluate
comparative advantages by sector and product, and to establish legal and institutional regimes to
implement policy actions in the areas of technology, training, and promotion in specific sectors andprojects.
(ii) Trade Policies by Measure
94. The Dominican tariff system had been modified twice during the last few years.  As a result
of these reforms, the tariff structure had been simplified and average tariffs reduced. The last tariff
reform had reduced the average tariff from 17.8% in 1996 to 8.6% in 2002, one of the lowest in theregion.  Currently 13.5% of all tariffs lines were duty free, while other tariffs were concentrated at
rates of 3%, 8%, 14% and 20%, the most frequent being 3%.  The Dominican Republic was willing to
reduce the gap between bound and applied rates, according to the modalities to be agreed upon during
the agricultural negotiations and market access negotiations for non-agricultural products.WT/TPR/M/105
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95. Regarding customs procedures, the Dominican Republic was very keen to eliminate the
consular bill, and to this end, draft legislation was before the National Congress. Referring to the
system of minimum import prices, the representative stated that the Dominican Republic would apply
such prices to 24 products until July 2003. After this date, in accordance with decision G/C/W/310
adopted by the Council on Goods, it would no longer apply minimum import values. He underlined,however, that the main method of valuation used by the Dominican Republic was the transaction
value, which was applied to the remaining 6,698 tariff items, representing 98.6 % of the complete
tariff.
96. As concerns taxes on alcoholic beverages, particularly the difference between the selective
consumption tax on rum and imported alcoholic beverages, a draft law to equalize these levies had
been submitted to the National Congress. The Law on Unfair Business Practice established provisions
and procedures to prevent and correct any injury for national production, and adopted temporarymeasures in case of increased imports when these might cause or threaten to cause serious injury to
the national producers of like products, on the basis of the relevant WTO Agreement.  At the same
time Law 1-02 did not exclude the possibility of imposing countervailing duties lower than the
subsidy or dumping amounts.  In accordance with Article 46 of this Law, provisional measures should
to be applied during as brief a period as possible, which may not exceed four months, or through adecision to be adopted by the Commission upon the request of national exporters representing a
significant percentage of the trade in question, fo r a period that in no case may exceed six months.
97. Regarding standards and quality systems, the Dominican Republic had been disciplined in the
implementation of the relevant agreements and there were no regulations that constituted an obstacle
to trade flows. The Dominican Government was as sessing which provisions should be notified to
WTO.  In this context the authorities were c onsidering the possibility of requesting technical
assistance from WTO, to give officials from the General Directorate of Standards a better knowledge
of the TBT Agreement in order to ensure better compliance with notification obligations.
98. The Dominican Republic was studying the possibility of acceding to the plurilateral
Agreement on Government Procurement, and the new Law on Government Procurement was the firststep towards a system of transparent and efficient government procurement.
99. As concerns intellectual property, the Dominican Republic had made great efforts over the
last five years to protect and regulate intellectual property rights. Various legal instruments had been
implemented;  the most important were the Telecommunication Law, the Industrial Property Law and
its Regulations, and the Copyright Law and its Regulations. The National Commission for the
protection for intellectual property rights, created in 2002, coordinated action with other relevant
public entities, in particular with the department of Intellectual Property and the Attorney General ofthe Republic.
100. The discussant congratulated the Dominican Republic on its tariff reform and noted that the
Dominican Republic would not continue with minimum import prices once the waiver was terminated
in July 2003. The Dominican Republic had exercised discipline in the implementation of the TBT
Agreement and he welcomed the Dominican Republic’s intention to accede to the plurilateralAgreement on Government Procurement.  In the last five years, the Dominican Republic had
undertaken substantial efforts in the protection of intellectual property rights.
101. The representative of the United States reiterated concerns on the role of free-trade zones and
noted that sectoral divergences created by these zones had not been addressed by economic reforms so
far.  Given the success of the free-trade zones, he called on the Dominican Republic to change thelegislation in order reduce these divergences and to reproduce the success of the free-trade zones on a
national scale.  He highlighted concerns on the protection of intellectual property rights in the
Dominican Republic and requested further explanation of the steps the Government was
contemplating to further strengthen its patent law and enforcement of patents.WT/TPR/M/105
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102. The representative of the Dominican Republic stated that the reply to the question on free-
trade zones would be provided in the third section of the discussion. Regarding the question on
intellectual property, a delegation member gave an overview of Domini can IPR legislation. He
underlined the importance of the National Commission for the Protection of Intellectual Property,
which had the objective of coordinating policies at the national level against infringements and piracy.This Commission worked directly with the Attorney General of the Republic and had the capacity of
confiscating, destroying, or taking legal action in connection with any infringement of copyrights.
The Dominican Republic had made all possible efforts to have a legal framework in accordance with
international obligations and had ratified all major international conventions.
(iii) Sectoral Policies
103. As far as agricultural policy was concerned, the Dominican Republic had fulfilled its
commitments under the Uruguay Round Agreements.  The national authorities undertook to apply infull the agricultural trade policy reform programm e, as defined in the agenda incorporated in the
Agreement on Agriculture, Article 20, and the Doha Ministerial Declaration.
104. The Dominican Republic reaffirmed its readiness to continue the programme of dismantling
the tariff peaks established in the technical rectification for a limited number of sensitive agricultural
products.  This programme would be aligned with the negotiating modalities under discussion in theWTO Committee on Agriculture.
105. The Dominican Government, with the collaboration of the CODEX Alimentarius and the
International Office of Epizootics, was to continue to strengthen its sanitary and phytosanitary control
systems on a scientific basis consistent with the WTO Agreement on Sanitary and Phytosanitary
Measures.
106. Sanitary and phytosanitary permits were required only for products of agricultural origin and
were issued free of charge.  Since 1996, at the time  of the first Trade Policy Review of the Dominican
Republic, the authorities had been eliminating non-tariff barriers on imports of products of
agricultural origin.
107. The quantitative restrictions applied to imports of pork meat, pork products, and powdered
milk, mainly from the European Union, had been eliminated, and converted into tariff quotas in the
case of powdered milk.  For pork meat, only non-trade-restrictive sanitary measures were applied.
108. Finally, the Dominican Republic had adopted the agricultural policy measures necessary to
eliminate any practices that distorted international trade and was moving with its main trading
partners towards introducing a general trade liberalization programme.
109. Free-trade zones were the cornerstone of production for export of manufactured goods from
the Dominican Republic.  In 2001, they accounted for 500 enterprises, with some 175,000 jobs,representing almost 6% of the country's total employment.
110. As well as being an important source of jobs and technology transfer, free zones had
developed the country's export capacity.  In this respect, the extension requested under Article 27.4 of
the WTO Agreement on Subsidies and Countervailing Measures, which was approved by the Doha
Ministerial Conference up to 2007, was to be used by the Dominican authorities to carry out thereforms necessary to phase out practices incompatible  with that Agreement.  It was too early to give
details of the measures that would be taken by the Government in this connection.
111. With respect to textiles, the Dominican Republic had not used the right to apply transitional
safeguards to products in the Annex to the Agreement on Textiles and Clothing.  Exporters of textiles
subject to a quota regime had to obtain a visa from the National Council for Free-Trade Zones.  TheWT/TPR/M/105
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quota for textile exports was assigned by the Council's Textile Commission, in accordance with the
Regulations on the Allocation of the Textile Quota, based on previous export patterns.
The Commission was made up of representatives of the public and private sectors.
112. Progress had also been made in diversifying the activities of free-trade zones.  Along with
textiles, the Dominican Republic produced medical and surgical instruments;  parts and componentsfor electronic products such as computers and switches;  jewellery in precious metals;  and uppers for
shoes.  The country was one of the leading exporters in the region for all of these product lines.
113. Despite operational and financial difficulties, the electricity sector had shown continuous and
rapid growth;  the added value for the sector rose by 11% in 2000 and 18.8% in 2001.  This record
growth had been surpassed only by the telecommunications sector.
114. Growth in the sector had been influenced by three variables:  foreign direct investment, which
grew by 25.8%  in 2001;  the increase in energy pr oduction; and the greater efficiency in generation,
transmission, and distribution of energy.
115. The Electricity Law, which was passed in 2001, established a regulatory framework to ensure
the implementation of reforms and provide greater secu rity to investors.  The contracts with energy-
generating companies were currently being renegoti ated to eliminate subsidies to the consumer and
price-intervention by the State.  Likewise, thr ough the Superintendency of Electricity, consumer
protection mechanisms and transparency in the administration of power generating and distribution
companies had been strengthened.  The authoritie s hoped that as a result of these efforts the
difficulties of the electricity sector would be overcome.
116. The Dominican Republic was evaluating its existing commitments under the General
Agreement on Trade in Services, and was reviewing its legislation with a view to consideringfurther general commitments.  The Fifth Protocol, on financial services, was ratified by the Senate on
1 October 2002.  It was to be examined by the Chamber of Deputies the following week, it was hoped
that it would be ratified by the end of the month.
117. The Executive had recently sent the Monetary and Finance Bill to the National Congress.
This law would guarantee and extend foreign investment in the financial sector.  It was a frameworklaw that allowed the Monetary Board a sufficient degree of flexibility.  The Bill provided for the
autonomy of monetary administration, stipulating th at interest rates and the exchange rate would be
determined by the market, and made price stability a goal of monetary policy.  In addition, it unified
the foreign currency market by abolishing the requ irement for foreign currency to be issued through
the Central Bank.
118. The framework law strengthened the provisions adopted by the Monetary Board establishing
banking, prudential, and market rules;  the Dominican Republic was one of the few Latin-Americancountries with this kind of legislation.  The law allowed the formation of banks with 100% foreign
capital in addition to branches of foreign banks and mixed or joint-venture investments with national
capital, among other important provisions.
119. The Bill was agreed with the financial sector as a whole, including branches of foreign banks.
Foreign branches would be allowed a transitional period to adjust to the rules for national banks.Banks would have a capital ratio limit for lending to individuals, companies, and groups.  This was to
ensure equal treatment for the whole financial sector, since it would prevent branches of foreign banks
treating their parent companies' capital as their own paid-up capital.
120. The foreign exchange commission was reduced by the Monetary Board to 5% in 2000.  The
Monetary and Finance Bill required a timetable to be set for the abolition of this commission, to beWT/TPR/M/105
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approved not later than three months following the promulgation of the law.  It was important to note
that revenues from this commission were used to service external public debt.
121. The Dominican Republic had no commitments in maritime transport under the WTO, as it
withdrew its offer in the Urug uay Round due to the collapse of negotiations in 1996.  There were
therefore no inconsistencies in national legislation.  However, Dominican maritime law allowedforeign ships to register temporarily for a period of six months with the Harbourmaster's Office, a
department of the Dominican Naval Command (which acted as maritime police authority).  The sole
requirement was for the presentation of a fiscal guarantee, which was returnable immediately upon
termination of temporary registration.  It was also worth mentioning that maritime trade to and from
the Dominican Republic was harmed by the high level of tariffs applied to such services in the region.
122. Since 5 September 2002, the Dominican Republic had had a Law on Electronic Commerce
based on the Model Law of the United Nations Commission on International Trade Law;  amongother things, this recognized the validity of digital signatures and electronic documents as legally
binding.  These aspects were essential to the development of a national strategy that relied on
technology and envisaged programmes to stimulate electronic commerce among small and medium-
sized enterprises.
123. The discussant noted that, with respect to agriculture, the Dominican Republic had complied
with its Uruguay Round commitments.  Further, th e Dominican authorities had undertaken to apply
the agricultural reform programme, as established in Article 20 of the Agreement on Agriculture.  In
addition, some of the quantitative restrictions on ag ricultural products had been lifted.  He noted that
the free-trade zones had diversified and were now among the largest exporters of various products in
the region.  In the electricity sector, the Dominican Republic was making enormous efforts toovercome existing problems, through the Electricity Law and the Superintendency on Electricity.
With respect to services, he wished the Dominican Republic well for the envisaged ratification of the
Fifth Protocol to the GATS.  He noted that Dominican legislation authorized the establishment of
banks with 100% of foreign capital, and that the country was a vanguard as regards legislation on
electronic trade, for which it has used the model law of the United Nations Commission.
124. The representative of Japan was pleased to note that the Dominican Senate had ratified the
Fifth Protocol to the GATS, and asked which procedures remained for the completion of the
ratification.
125. The representative of India expressed his appreciation for the detailed clarification given by
the Dominican Republic in the three segments of the discussion. He agreed with the views expressed
by the Discussant on the third theme.
126. The representative of Canada expressed his appreciation for the update provided on the
ratification process of the Fifth Protocol and looked forward to the finalization of that process.  He
asked for the rationale for not allowing branches of foreign banks to use their head office capital in
the calculation of lending limits. In this context, he requested the Dominican delegation to comment
on the view that this provision constituted a restriction on national treatment.
127. The representative of the Chinese Taipei expressed his respect for the Dominican Republic’s
continuing firm determination to press ahead with liberalization policies. He reiterated the importance
of IPR enforcement, which would encourage foreign investment, and expressed his interest in
exchanging views with the Dominican Republic in this regard.
128. The representative of the Dominican Republic stated that the Dominican Republic had a bi-
cameral legislature:  the Fifth Protocol to the GATS had already been adopted by the Senate and still
had to be adopted by the Chamber of Deputies;  he expected this to take place in October.  WithWT/TPR/M/105
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regard to the draft monetary and financial law and capital requirements for branches of foreign banks,
national treatment was applied, and national and foreign banks were subject to equal conditions.
129. Legislation on property rights in the Dominican Republic was fully compatible with the
TRIPS Agreement and had been reviewed by the TRIPS Council in June 2001.  The Dominican
Republic set up a national commission for the protection of intellectual property, to oversee thefulfilment of the legislation.  This national commission had set up a department responsible for
enforcing laws and imposing penalties for violations.  Figures on the work of this department,
regarding intellectual and industrial property were provided during the TRIPS review.  The
Dominican Republic was now studying the possibility of ratifying the Patent Treaty of Cooperation
(PCT), and participating actively in the process of harmonizing the law on patents, which was taking
place in WIPO.  In particular, this legislation was compatible with the TRIPS Agreement on patents,
specifically as regards compulsory licences;  the provisions were applied effectively in the territory ofthe Dominican Republic.  The exceptions envisaged in the legislation concerning compulsory
licensing were the same as those found in the TRIPS Agreement.
130. The Dominican Republic hoped that it had fulfilled its commitments in the World Trade
Organization and that it could thus continue to contribute to the strengthening of the multilateral
trading system.
131. The discussant stated that the Dominican Republic, a developing country, had made great
efforts to move forward within the global system and, regardless of the problems, was fulfilling its
commitments.WT/TPR/M/105
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VI. CONCLUDING REMARKS BY THE CHAIRPERSON
132. This second Trade Policy Review of the Dominican Republic has been both thorough and
very informative. We owe this in some consider able measure to the presence of a large Dominican
delegation, led by Minister Dr. Hugo Tolentino Dipp and Vice-Minister Santiago Tejada, and, as well,
to the active involvement of many Members.  Through our dialogue with the Dominican delegation,we have obtained a better understanding of the trade-related policies and practices in place, of
changes affecting them over the last six years, and of their possible evolution.  At the outset allow me
to highlight also the support of Members for the Dominican Republic's modernization and
liberalization efforts, and their acknowledgement of the considerable progress made in this respect
since the Dominican Republic's last Review in 1996.
133. Members complimented the Dominican Republic, the largest economy in the Central
American-Caribbean region, on the remarkable economic growth it has achieved in recent years.This, and its deeper integration in the world economy, has made the Dominican Republic an
increasingly important economic partner.  However,  growth has slowed considerably since 2001, the
export base continues to be narrow, both in terms of markets and products, and poverty alleviation
remains a challenge.  It was thus important to learn of ongoing efforts to address these issues.
134. The various autonomous, regional and multilateral initiatives the Dominican Republic has
taken to liberalize its trade and investment regimes have been key elements in its good economic
performance.  Members welcomed the Dominican Republic's active participation in the multilateral
trading system, and obtained further information on the status and scope of ongoing initiatives to
conclude new bilateral trade agreements.  They expressed their hope that the Dominican Republic
would continue to strive for these initiatives to complement multilateral liberalization efforts.  Alsonoted was the great importance for Dominican exports of unilateral preferences offered by certain
trading partners.
135. Members agreed that the free-trade zone, or FTZ, regime has played an important role in
promoting exports, but also pointed to the structural distortions the regime had created, and which
may undermine future growth prospects.  Moreover , the subsidies implicit in the FTZ regime have
called into question its compatibility with multilateral principles, and a transition period is in place for
its eventual removal.  Given this and the regime's major economic importance, Members posed
numerous questions on this subject, including on the strategies being considered to permit the
economy to move to a more neutral system.  The Dominican Republic undertook to use the transition
period to bring the FTZ regime in line with the relevant WTO rules.
136. Members took note of the steps taken by the Dominican Republic to both lower and simplify
the structure of applied tariffs.  However, they also observed that applied and bound tariffs onagricultural products were particularly high, and asked questions about the use of tariff quotas.
Several Members considered it necessary to enhance predictability by closing the current wide gap
between applied and bound tariffs.
137. Numerous questions were posed on customs procedures and valuation, licensing and trade
facilitation, with Members welcoming the progress made in these areas, but urging the DominicanRepublic to effect further improvements.  A number of Members were concerned about the
consistency with multilateral principles of a specific tax on alcoholic beverages.  Several Members
requested information on the development of standards and technical regulations.  It was also
observed that the Dominican Republic has yet to fulfil various notification obligations under certain
WTO Agreements, notably the TBT Agreement, and it was invited to seek assistance from the WTOSecretariat if necessary to address this issue and, thus, enhance transparency.  I was happy to hear that
the Dominican Republic was ready to do so.WT/TPR/M/105
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138. A number of Members welcomed the consideration the Dominican Republic is giving to
acceding to the plurilateral Agreement on Government Procurement, and wished to learn how the
Dominican Republic would reconcile its participation with the requirement in its domestic legislation
that preference be given to Dominican suppliers.  Several Members also requested information on
public bidding procedures, including registration requirements.
139. On sectoral policies, developments in the services sector attracted particular attention.
Members took note of the liberalization measure taken over the last six years but noted that
Dominican commitments under the GATS were relatively limited and fell short of the actual openness
in the sector.  Thus, to enhance predictability, several of them invited the Dominican Republic to
expand and deepen its multilateral commitments during the current services negotiations.  They also
requested information on the status of ratification by the Dominican Republic of the Fifth Protocol to
the GATS, which the delegation noted was currently being considered by the National Congress.Some Members also expressed concern about the costs of financial services and inefficiencies in the
electricity sector.
140. Members also sought further clarification on a number of specific areas, including:
● the foreign investment regime and exceptions to national treatment;
● SPS measures;
● competition policy and related legislation;
● the draft Monetary and Financial Law;  and
● the protection of intellectual property rights.
141. The Dominican delegation gave written and oral replies to questions posed during the
Review.  The replies provided have made a major contribution to this meeting, and were clearly
appreciated by Members.
142. This brings us to the conclusion of our Review of the Dominican Republic.  Through it, we
have gained a first-hand appreciation of the Dominican Republic's achievements since its last Review
in 1996, and of the challenges that lie ahead.  The Dominican Republic has indeed achieved much in
recent years, in good part building on the opportunities created by an increasingly liberal trade and
investment regime.  But as the Dominican economy matures, new avenues may have to be found tosustain economic growth and social development.  I believe that, for a developing country highly
integrated in the world economy, this will require efforts in both the domestic and international
arenas.  In this respect, we all welcomed the Dominican Republic's stated conviction that
liberalization is a central pillar of economic growth and development.  This conviction bodes well for
the Dominican Republic's continued and constructive involvement in efforts to strengthen themultilateral trading system, from which I am convinced it has much to gain.
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