Dominican Republic WT/TPR/S/105
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II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES
(1) INTRODUCTION
1. Since its last Review in 1996, the Dominican Republic has continued the reform and
liberalization of its policy regime initiated in the early 1990s.  The Dominican Republic's trade and
investment policy has sought to promote, facilitate, and consolidate its integration in the international
economy.  The main comprehensive reforms carried out during the last years include new legislationon foreign investment, tariffs and customs procedures, export promotion, telecommunications,
electricity, and intellectual property.
2. Trade policy is primarily conducted by the Ministry of Foreign Affairs.  The Dominican
Republic became a Member of the WTO in March 1995;  the WTO Agreements take precedence over
domestic legislation.  The Dominican Republic participates actively in the multilateral trading system;it took part in the extended negotiations on agriculture and financial services and in the Negotiating
Group on Basic Telecommunications.  It has ratified  the Fourth Protocol (on telecommunications) to
GATS but ratification of the Fifth Protocol (on financial services) was still pending in mid 2002.  The
Dominican Republic has not been directly involved in any WTO dispute settlement cases.  Along with
its participation in the multilateral system, it has increasingly sought to foster regional economicintegration;  in 1998 it concluded its first free-trade agreements, with the Caribbean Community
(CARICOM) and the Central American Common Market (CACM).
(2) T
RADE POLICY FORMULATION AND IMPLEMENTATION
(i) General legal and institutional framework
3. The Constitution, promulgated on 14 August 19 94, defines the Government of the Dominican
Republic as being democratic, republican, and repres entative.  The exercise of power is divided
among the executive, legislative, and judicial branches.
4. Executive power is exercised by the Presiden t of the Republic who, together with the Vice-
President, is elected through direct vote for periods of four years, but without possibility of re-election
for consecutive terms.  The President is the Head of the State and the Government as well as the
public administration, and is assisted by a cabinet of ministers designated by him.  The next
presidential elections are scheduled for May 2004.  The 31 provinces and the National District eachhas a Governor designated by the Executive, a Mayor, and at least five municipal advisors.
5. Legislative power is vested in the National Cong ress, composed of two chambers:  the Senate,
which has 32 members with one senator for each province;  and the Chamber of Deputies, composed
of 149 members.  The members of both chambers are elected through direct majority vote for periods
of four years.  Since 1994 legislative election takes place separately from presidential election.
6. Judicial power is exercised by numerous Courts of First Instance, nine Courts of Appeal, a
Lands Tribunal, Labour Courts, and the Supreme Court of Justice, which works as an appeals court
for all judgements rendered by judicial courts.  The Supreme Court is formed of nine judges
designated by the National Council of Magistrates, an institution created by the 1994 constitutional
reform to ensure the independence of the judicial branch.  There are also separate administrative and
military courts and political impeachment procedures.
7. Laws may be proposed by senators, deputies, the President, and, in judicial or electoral
matters, by the Supreme Court of Justice or the Central Electoral Commission.  All bills are subject toWT/TPR/S/105 Trade Policy Review
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two readings in each chamber before approval by the President, after which they are promulgated and
published.
(ii) Trade policy objectives and formulation
8. In the context of information provided for th is Review, the authorities indicated that the
Dominican Republic's foreign trade policy is part of the general development policy designed to
achieve higher standards of living for all Dominicans through economic and social development.Dominican foreign trade policy follows a number of objectives, the most important being:  stimulating
efficiency and competitiveness of national producers;  reducing the level of effective protection and
any existing anti-export bias in the tariff structure;  and fostering regional economic cooperation.
9. Trade policy formulation is under the responsibili ty of the Executive, with the Ministry of
Foreign Affairs being the lead agency.  Other entities involved in the formulation of trade policyinclude the Central Bank and the Ministries of Industry and Trade, Agriculture, and the Presidency.
The Dominican Centre for Export Promotion and the National Council for Free Trade Zones are
involved in the implementation of trade or trade-related policies.  The authorities indicated that the
creation of an institution that would encompass all trade-related responsibilities, under consideration
at the time of the Dominican Republic's previous Review, was still under study.  The Executive issupported in its decision-making process by the Commission for National Trade Negotiations,
described below.
10. Decree No. 74-97 of 10 February 1997 established the Commission for National Trade
Negotiations as the institution responsible for the Dominican Republic's bilateral and multilateral
trade negotiations.  The Commission, which is headed by the Ministry of Foreign Affairs, is
composed of representatives from public and private institutions.  Participants from the public sector
include:  the Ministries of Agriculture, Foreign Affa irs, Industry and Trade, Finance, Tourism, and the
Presidency;  the Central Bank;  the Dominican Centre for Export Promotion;  and the Directorate-
General of Customs.  Civil society organizations, which express their views on trade policy in this
Commission, include the Dominican Industry Associa tion, the Dominican Exporters Association, the
Chamber of Commerce, and the Association of Do minican Agro-enterprises.  According to the
authorities, the Commission's work is based on the principles of transparency and open participationof civil society organizations.  The authorities also emphasized that the work of this Commission had
brought with it a greater coherency of trade policy formulation.
11. The Customs Reform Law (Law No. 146-00) of 27 December 2000 established a
Commission of Tariff Analysis, which is in charge of elaborating recommendations on tariff issues to
the Executive.  The Commission is composed of representatives of the Minister of Finance, whopresides it;  the Ministries of Industry and Trade, Agriculture, and the Presidency;  and the
Directorate-General of Customs.  The Commission takes its decisions by simple majority.
12. Decree No. 123-01 of 23 January 2001 established the National Council of Foreign Trade,
and gave it responsibility for making recommendations to the Executive in the field of export
promotion, free-trade zones, foreign investment, contingency measures, and trade negotiations.  Theauthorities indicated that this Council was inoperative as at June 2002.
(iii) Main trade laws and regulations
13. The Constitution takes precedence over all other laws.  International agreements must be
signed by the President and ratified by Congress.  Once entered into force, international agreements
rank below the Constitution, but above domestic legislation.  The principal laws and regulations
governing foreign trade are listed in Table II.1.Dominican Republic WT/TPR/S/105
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Table II.1
Main laws and regulations relating to foreign trade, May 2002
Name or description Domestic statute Date of issue
General legislation
Constitution of the Dominican Republic n.a. 14.8.1994
Foreign Investment Law Law No. 16-95 24.10.1995
Commercial Code .. 4.7.1882
Regulations on the Foreign Investment Law Decree No. 380-96 28.8.1996
Modification to Regulations on the Foreign Investment Decree No. 163-97 31.03.1997
Creation of Commission for National Trade Negotiations Decree No. 74-97 10.2.1997
Law on Customs Duties Law No. 150-97 7.7.1997
Customs Reform Law Law No. 146-00 27.12.2000
Tax Reform Law Law No. 147-00 27.12.2000
Creation of National Council of Foreign Trade Decree No. 123-01 23.1.2001
Law on Unfair Trade Practices and Safeguard Measures .. 11.12.2001
Preferential trade agreements
Central America – Dominican Republic Free Trade Agreement .. ..
CARICOM – Dominican Republic Free Trade Agreement .. ..
Customs procedures
Customs Law Law No. 3489 12.2.1953
Creation of One-stop Export Office Decree No. 248-98 9.7.1998
Introduction of Single Export Form Decree No. 646-96 23.12.1996
Regulations on Merchandise Re-exports Decree No. 106-96 16.3.1998
Regulations on Customs Valuation Decree No. 667-01 ..
Tax and tariff concessions
Free Trade Zone Law Law No. 8-90 15.1.1990
Regulations for the Free Trade Zone Law Decree No. 366-97 29.8.1996
Export Promotion Law Law No. 84-99 6.8.1999
Regulations on the Export Promotion  Law Decree No. 213-01 22.5.2000
Promotion of Border Area through Tariff Exemptions Law No. 28-01 1.2.2001
Law establishing the San Pedro de Macorís Free Trade Zone Law No. 117-01 28.6.2001
Creation of Mining Industry Parks Decree No. 947-01 19.09.2001
Government procurement
Law on Government Procurement Law No. 295 30.6.1966
Regulations on Public Procurement and Contracts Decree No. 262-98 10.7.1998
Technical requirements, rules and standards
Elimination of Non-tariff Barriers Decree No. 114-98 16.3.1998
Law on Standardization and Quality Systems Law No. 602 20.5.1976
Law on the Environment and Natural Resources Law No. 64-00 18.8.2000
Sanitary and phytosanitary standards
Law on Plant Health Law No. 4990 28.8.1958
Law on Animal Health Law No. 4030 12.1.1955
Health Law Law No. 42-01 7.2. 2001
Intellectual property
Copyrights Law Law No. 65-00 26.7.2000
Industrial Property Law Law No. 20-00 10.5.2000
.. Not available.
n.a. Not applicable.
Source: Information provided by the Dominican authorities .WT/TPR/S/105 Trade Policy Review
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14. No basic trade law exists per se  in the Dominican Republic.  To align its legislation with
Uruguay Round commitments, the Dominican Republic introduced new legislation in areas such as
customs valuation and intellectual property (Chapter III).
(3) INTERNATIONAL RELATIONS
(i) World Trade Organization
15. The Dominican Republic acceded to the GATT in 1950 and became a Member of the WTO in
March 1995 after the approval by Congress of th e Marrakesh Agreement through Decree No. 2-95 of
20 January 1995.  As an international treaty, the WTO Agreements take precedence over domestic
legislation and may be invoked before domestic courts.  The Dominican Republic grants at least MFN
treatment to all its trading partners.
16. Table II.2 shows the notifications made by the Dominican Republic under the various WTO
Agreements.
Table II.2
Dominican Republic's notifications under the WTO Agreements, May 2002
Instrument imposing obligation WTO document – date
(latest document if recurrent)Description of requirement
Agreement on Agriculture
Article 9.1 G/AG/N/DOM/3 – 5.4.01 Table ES.1 – Export subsidies
Article 18.2 G/AG/N/DOM/4 – 12.4.01 Table DS.1 – Domestic Support
Article 18.2 G/AG/N/DOM/5 – 4.2.02 Table MA.2 – Tariffs and other quotas
Agreement on Implementation of GATT Article VI (Anti-dumping)
Article 16.4 G/ADP/N/4/Add.1/Rev.1 – 11.10.01 Semi-annual reports
Article 18.5 G/ADP/N/1/DOM/2 – 21.7.95 Incorporation of the Agreement into national legislation
Article 18.5 G/ADP/N/1/DOM/3 – 22.5.02 Laws and regulations
Agreement on Implementation of GATT Article VII (Customs Valuation)
Annex III(1) G/VAL/N/1/DOM/1 – 10.7.01 Strengthening of customs operations
Annex III(1) G/VAL/22 – 10.3.00 Request for moratorium
Annex III(2) G/VAL/N/4/DOM/1 – 10.10.00 Progress in application
Agreement on Import Licensing Procedures
Articles 1.4(a) and 8.2.(b) Yet to be notified Laws and regulations
Article 7.3 Yet to be notified Replies to questionnaire
Agreement on Preshipment Inspection
Article 5 Yet to be notified Laws and regulations
Quantitative Restrictions (Decision on Notification Procedures for Quantitative Restrictions)
WTO document G/L/59 G/MA/NTM/QR/1 – 1.3.96 Initial and biennial reports
Agreement on Rules of Origin
Article 5 and Annex II(4) G/RO/N/9 – 19.4.96 Non-preferential and preferential rules
Article 5 and Annex II(4) Rules of origin of FTAs with CARICOM and CACM yet to be notified
Agreement on Safeguards
Article 12.6 G/SG/N/1/DOM/1 – 2.11.95 Laws and regulations
Article 12.6 G/SG/N/1/DOM/2 – 22.5.02 Laws and regulation
Table II.2 (cont'd)Dominican Republic WT/TPR/S/105
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Instrument imposing obligation WTO document – date
(latest document if recurrent)Description of requirement
Agreement on the Application of Sanitary and Phytosanitary Measures
Article 7, Annex B G/SPS/DOM/1 – 14.4.97 One notification on changes and emergency measures
General Agreement on Trade in Services (GATS)
Article III:4 S/ENQ/78/Rev.1 – 5.10.01 National enquiry point
Understanding on the Interpretation of Article XVII (State Trading)
Article XVII(4)(a) Yet to be notified State-trading activities
Agreement on Subsidies and Countervailing Measures
Article 25.1 G/SCM/N/3/DOM – 21.3.96 Annual report on subsidies
Article 25.11 G/SCM/N/47/Add.1/Rev.5 – 26.4.01 Semi-annual report on countervailing duty actions
Article 25.12 Yet to be notified Competent authorities
Article 27 G/SCM/N/71/DOM – 6.03.2002 Replies to questionnaire
Article 27.4 G/SCM/N/74/DOM – 8.01. 2002 Request for programme extension
Article 32.6 G/SCM/N/1/DOM/1 – 19.7.95 Laws and regulations
Article 32.6 G/SCM/N/1/DOM/2 – 22.5.02 Laws and regulations
Agreement on Technical Barriers to Trade
Article 10 G/TBT/ENQ/19 - 26.9.2001 National enquiry point
Article 15.2 Yet to be notified Measures taken to implement the Agreement
Annex 3C G/TBT/CS/N/87 – 13.1.98 Notification of acceptance of code of good practice
Agreement on Textiles and Clothing
Article 2.17 G/TMB/N/268 – 22.7.1997 Administrative arrangement with the United States
Articles 2.6 and 2.7(b) G/TMB/N/43/Add.3 – 18.12.1997 List of products to be included in the first stage of the
integration process
Articles 2.8 (a) and 2.11 G/TMB/250/Add.3 – 18.12.1997 List of products to be included in the second stage of the
integration process
Articles 2.8(b) and 2.11 G/TMB/N/386/Rev.1 – 2.5.01 List of products to be included in the third stage of the
integration process
Article 6:1 G/TMB/N/17 – 6.3.95 Retention of right to use transitional safeguards
Agreement on Trade-Related Aspects of Intellectual Property Rights
Article 63.2 IP/N/1/DOM/1 – 9.5.96 Laws and regulations
Article 69 IP/N/3/Rev.5 – 6.7.01 Contact points
Article 63.2 IP/N/1/DOM/C/1 – 30.4.02 Laws and regulations
Article 63.2 IP/N/1/DOM/C/2 – 30.4.02 Laws and regulations
Article 63.2 IP/N/1/DOM/I/1 – 30.4.02 Laws and regulations
Article 63.2 IP/N/1/DOM/I/2 – 30.4.02 Laws and regulations
Source : WTO Secretariat.
17. The Dominican Republic has not been directly involved in any WTO dispute settlement
cases, either as complainant or defendant.  However, the Dominican Republic has reserved its third-
party rights on two occasions, concerning the importation of bananas to the European Union and of
textiles to the United States.1
18. In the ongoing WTO negotiations on agriculture, the Dominican Republic, together with other
developing countries, submitted three proposals on special and differential treatment, green box
                                                     
1 WTO documents WT/DS16/4, 24 October 1995, WT/DS27/2, 28 February 1996, WT/DS85/8,
25 June 1997, WT/DS151/2, 8 December 1998, WT/DS165 /2, 15 March 1999, and WT/DS200/5, 26 June 2000.WT/TPR/S/105 Trade Policy Review
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measures, and on market access.2  The first proposal underlines the importance of special and
differential treatment for developing countries in agricultural trade policies and calls for the
establishment of a development box with policy instruments that aim to protect and enhance
developing countries' food production capacity.  Th e proposal further suggests exempting food staples
from liberalization and encouraging domestic production capacity of developing countries to become
more competitive.  The second proposal identifies various perceived problems and shortcomings ofthe Green Box and recommends aggregating all domestic support categories into one 'general
subsidies' box with a set of criteria to spell out what should make up the programmes legal within this
one box.  Furthermore, it suggests that the Due Restraint Clause protecting Green Box subsidies from
challenge should be a special and differential treatment provision that protects developing countries in
their efforts to increase food security, ensure rural employment and increase domestic productioncapacity.  In the third proposal, on market access, the Dominican Republic calls for the elimination of
tariff peaks and tariff escalation, increased tariff quotas, the simplification of complex and non-
transparent tariffs, and the reduction of export subsidies and domestic support.
19. The Dominican Republic participated in the Negotiating Group on Basic
Telecommunications;  the Fourth Protocol to the General Agreement on Trade in Services wasadopted with the enactment of the Telecomm unications Law (Law No. 153-98) of 27 May 1998.
It has not acceded to the Information Technology Agreement (ITA).  The Dominican Republic
participated in the extended negotiations on financial services, and is in the process of ratifying the
Fifth Protocol to the General Agreement on Trade in Services.
20. At the WTO Ministerial Conferences in Singapore and Geneva, the Dominican Republic
expressed concerns about the lack of implementation of commitments in sectors important to its
interests.
3  It underlined the importance of assessing th e problems faced by deve loping countries and
their ability to benefit from their rights under th e Uruguay Round Agreements.  It argued for cautious
use of transitional safeguards in the area of tex tiles, which should not be used without justification
against countries that benefited from preferential tariff reductions.
21. In the context of the preparations for the 1999 Ministerial Conference in Seattle, the
Dominican Republic, together with El Salvador and Honduras, tabled a proposal for a GATS annexon tourism.
4  This was considered necessary in order to better deal with the specific and
heterogeneous nature of tourism as a cluster and to monitor progressive liberalization and compliance
with commitments undertaken under tourism and travel -related service.  At the Seattle Ministerial
Conference, in line with the statements made by other developing countries, the authorities
reaffirmed their position to resolve implementation issues in areas of major interest to developingcountries.
5  Agriculture should be made subject to the same rules that govern trade in other
goods, with the aim of eliminating the subsidies granted by developed countries.  Members should
ensure consistency between domestic policies and multilateral commitments, by eliminating
unilateralism and extraterritoriality as well as equally pernicious conditions imposed on preferential
market access.
22. At the Doha Ministerial Conference in 2001, the Dominican Republic called upon the
Organization to appropriately take into account the concerns of developing countries.6  In the case of
agriculture, issues such as tariff peaks, tariff escalation, subsidies or export credits should be
                                                     
2 WTO documents G/AG/NG/W/13 and G/AG/NG/W/14, 23 June 2000, and G/AG/NG/W/37,
28 September 2000.
3 WTO documents WT/MIN(96)/ST/24, 9 December 1996, and WT/MIN(98)/ST/117, 20 May 1998.
4 WTO document WT/GC/W/372, 14 October 1999.
5 WTO document WT/MIN(99)ST/42, 1 December 1999.
6 WTO document WT/MIN(01)/ST/61, 11 November 2001.Dominican Republic WT/TPR/S/105
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addressed.  Outlining the importance of free-trade zones in its economy, the Dominican Republic
underlined its view of the need to extend, under Article 27.4 of the Agreement on Subsidies and
Countervailing Measures (on Special and Differential Treatment), the transition period for free-trade
zones until 2018.7  The Ministerial Conference directed the Committee on Subsidies and
Countervailing Measures to extend the transition period under this Article for certain export subsidies
provided by Members.8
23. Following the Doha Ministerial Conference, the Dominican Republic, together with other
developing countries, tabled a proposal on the establishment of the Trade Negotiations Committee
(TNC), which includes suggestion in relation to the setting up and operation of the TNC and its
related bodies.9
24. Since January 1999, the Dominican Republic has participated in 25 WTO technical
cooperation activities.  The projects and seminars covered a wide range of WTO-related issues,
including customs valuation, multilateral negotiation training, competition policy, dispute settlement,
and general training courses for government officials.
(ii) Preferential agreements
25. Since the Dominican Republic's last Review in 1996, the authorities have sought to strengthen
regional ties by concluding the Dominican Republic's first free-trade agreements, with the Central
American Common Market (CACM) and with the Caribbean Community (CARICOM).10  T h e
Dominican Republic has not concluded any Partial Scope Agreements under the Latin American
Integration Association (LAIA).
Free Trade Agreement with the CACM
26. In April 1998, the Dominican Republic concluded its free-trade agreement with the
Central American Common Market, composed of Cost a Rica, El Salvador, Guatemala, Honduras, and
Nicaragua.  The agreement was ratified by Congress in March 2000 and entered into force in
October 2001, but its application in relation to Nicaragua was still pending as at June 2002.  The
agreement establishes rules and disciplines for trade in goods and services, investment, intellectual
property, government procurement, and dispute sett lement.  Rules of origin are based on the change
of tariff classification principle, but specific requirements apply in some cases.  This agreementabsorbed preferences granted under a former agreement with Costa Rica, covering 52 tariff items.
According to data from the Dominican Centre  for Export Promotion, in 1999 the Dominican
Republic's foreign trade volume with CACM coun tries amounted to US$62.9 million or 1% of total
foreign trade.
27. The agreement eliminated most tariffs, exceptions include:  (i) products for which a
programme of mutual phased reductions until 2004 was agreed, (ii) products subject to a 15% tariff
that is not subject to further reductions, and (iii) products completely excluded from liberalization.
The group of products subject to a gradual tariff reduction includes bovine and pork meat, crawfish,
unconcentrated milk, serums and vaccines, various synthetic and plastic products, and tomatoes.  The
list of products subject to a tariff of 15% includes mainly various oils and fats.  Products excluded
                                                     
7 WTO document G/SCM/N/74/DOM, 8 January 2002.
8 WTO document WT/MIN(01)/17, 20 November 2001.
9 WTO document WT/GC/58, 21 December 2001, and TN/C/W/2, 29 January 2002.
10 The text of both agreements may be found in CEDOPEX online information.  Available at:
http://www.cedopex.gov.do/.WT/TPR/S/105 Trade Policy Review
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from liberalization include alcoholic beverages, beans, coffee, garlic and onions, various petroleum
products, poultry meat, powdered milk, rice, sugar, tobacco products and wheat flour.
28. The Dominican Republic has formally asked to be part of the proposed U.S.-Central America
Free Trade Agreement.  This reflects concerns that the country's apparel industry could be placed at a
disadvantage if Central America concludes a separate FTA with the United States.11
Free Trade Agreement with CARICOM
29. The free-trade agreement between the Domi nican Republic and CARICOM was signed in
August 1998 and ratified by Dominican Congress in January 2000.12  After additional negotiations on
the products to be excluded from preferential treatment and on rules of origin, the Protocol for the
Implementation of the Agreement was signed in April 2000. A Joint Council comprising
representatives of both parties is responsible for the administration of the agreement.  The agreemententered into force in December 2001, but according to the Dominican authorities does not yet apply to
trade with Guyana and Surinam (July 2002).  The agreement does not cover trade with Haiti, which
joined CARICOM only after negotiations for the Agreement had already begun.
30. Under this FTA, the Dominican Republic and five Caribbean countries (Barbados, Guyana,
Jamaica, Suriname, and Trinidad and Tobago) have committed themselves to phasing out duties by2004.  The smaller Eastern Caribbean countries and Belize are granted free access to the Dominican
market, but reciprocity is postponed until 2005.  Since 1990 the Dominican Republic has also had
observer status with CARICOM.
31. The protocol implementing the agreement establishes a negative list of goods that continue to
be subject to MFN treatment.  These products include:  beans, cement, coconuts, sugar, dairy
products, fats and oils, fish, fruit juice, garlic and onions, meat, rice, various steel products, tobacco
products, and wheat flour.  In addition, imports of various agricultural products to theDominican Republic are subject to seasonal quotas.
32. According to Central Bank data, Dominican merchandise imports from CARICOM countries
(excluding Haiti) amounted to US$53 million or 0.6% of total imports in 2000, while the
Dominican Republic exported goods to these countries for US$28 million, or 0.5% of its total exports.
Among the countries covered by this FTA, Trinidad and Tobago and Jamaica are theDominican Republic's most important trading partners.
33. The authorities indicated that the FTA with CARICOM would allow the parties to work with
common positions in the next round of nego tiations of the Cotonou Agreement with the
European Union, scheduled for September 2002.
Other agreements34. The Dominican Republic also participates in the negotiating groups of the Free Trade Area of
the Americas (FTAA).
13  The FTAA process, which began in 1994, seeks to eliminate progressively
barriers to trade and investment, with negotiations to be completed no later than January 2005.  At the
                                                     
11 Caribbean and Central America Report , 19 February 2002, p. 3.
12 The following countries are CARICOM members:  Antigua and Barbuda, the Bahamas, Barbados,
Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montse rrat, St. Kitts and Nevis, St. Lucia, St. Vincent and
the Grenadines, Suriname, and Trinidad and Tobago.
13 Information on the integration process in the western hemisphere may be found in the FTAA online
information.  Available at:  http://www.alca-ftaa.org.Dominican Republic WT/TPR/S/105
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sixth ministerial meeting in 2001, ministers directed that these negotiations should begin no later than
May 2002 and that the agreement should enter into force no later than December 2005.  Ministers also
agreed to release to the public the existing draft consolidated text of the agreement.14  The Dominican
Republic currently holds the vice-chair of the Negotiating Group on Intellectual Property Rights.
35. The Dominican Republic is a member of th e Association of Caribbean States (ACS).15  The
primary objectives of the ACS are the adoption of programmes to increase and consolidate theeconomic relations between its members, as well as the development of strategies that increase their
comparative advantages.  The ACS Special Committee on Trade Development and External
Economic Relations fosters cooperation and integration by uniting the efforts of member countries to
build and consolidate an enhanced economic space for trade and investment in the Greater Caribbean.
Important areas of action are the promotion of u nderstanding and the convergence of positions in
areas of mutual interest within the major negotiation processes like the WTO and the FTAA,
particularly with respect to the treatment of small economies.  That work includes studies on the
possible measures that could be taken to implement special and differential treatment and to clearly
define the concept of a small economy.
(iii) Other arrangements
36. In addition to negotiated preferences, the Dominican Republic enjoys unilateral concessions
granted by various countries under the Generali zed System of Preferences (GSP), the European
Union's Cotonou Convention, and the United States' Caribbean Basin Initiative (CBI)
(Chapter III(3)(vii).  These schemes are outlined in detail in the Secretariat Reports for the Trade
Policy Reviews of the Members granting them.
16
37. The CBI, enhanced by the Caribbean Basin Trade Partnership Act (CBTPA), is by far the
most important preferential scheme granted to the Dominican Republic.  It covers 24 Caribbean andCentral American countries, regulating their trade with the United States under a preferential non-
reciprocal agreement established unilaterally by the United States.  Combined exports under the CBI
and the CBTPA amounted to nearly US$2.4 billion in 2001.  The Dominican Republic benefits from
these schemes mainly through the export of textiles, footwear, and cigars and cigarettes.
38. The Cotonou Convention grants preferential access to the European Union of certain
Dominican products, mainly agricultural goods, textiles, and electronic components.  According to
figures provided by the Dominican Centre for Export Promotion (CEDOPEX), Dominican exports
under this regime amounted to US$125.3 million in 1999, the most recent year for which figures were
available.
39. As a developing country, the Dominican Republic  is a beneficiary of the Generalized System
of Preferences.
17  It is granted GSP preferences by:  Australia, Bulgaria, Canada, the Czech Republic,
the European Union, Hungary, Japan, New Zealand, Norway, Poland, Russia, the Slovak Republic,
Switzerland, and the United States.18  According to data provided by CEDOPEX, Dominican exports
                                                     
14 The draft text may be accessed through the FTAA online information.
15 For additional information see also the ACS online information.  Available at:  http://www.acs-
aec.org/.
16 See in particular WTO (2001a), Chapter II(2)(i)(c ), for Canada;  WTO (2000), Chapter II(4)(iii)(a),
for the European Union;  and WTO (2001b), Chapter II(3)(iii), for the United States.
17 The functioning of the GSP, including the preferences provided by the Quad, is described in WTO
document WT/COMTD/W/93, 5 October 2001.
18 UNCTAD, document UNCTAD/ITCD/TSB/Misc.62 of 22 June 2001, "Generalized System of
Preferences – List of Beneficiary Countries".WT/TPR/S/105 Trade Policy Review
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under the GSP amounted to US$60.9 million in 1999;  European countries were the most important
market.
40. The Dominican Republic does not participate in the Global System of Trade Preferences
among Developing Countries.
41. The Dominican Republic is a member of the African, Caribbean and Pacific Group of States
(ACP Group).  The authorities noted that the Dominican Republic has presided ACP summits ofheads of state and government since 1999 and was coordinating its activities at the ambassador level
in Geneva in 2002.
42. The Dominican Republic is a member of the International Coffee Organization and the
International Sugar Organization.
(4) F
OREIGN INVESTMENT REGIME
43. The Dominican Government considers foreign investment an effective means of ensuring the
integration of the Dominican economy into the global economy and of helping to improve of its
competitiveness.  Since the Dominican Republic's last Review, the main change in the investment
regime has been the enactment of a new law governing foreign direct investment.  The Foreign
Investment Law (Law No. 16-95) of 20 Nove mber 1995 and its Regulations (Decree No. 380-96,
modified by Decree No. 163-97) opened previously  restricted areas to foreign investors and
eliminated restrictions on capital and profit remittances.  With only a few exceptions, the Law accords
national treatment to foreign investors.
44. Pursuant to the Foreign Investment Law, foreigners may invest in all areas of the Dominican
economy, except for the following:  disposal of toxic, dangerous or radioactive waste not produced in
the country;  activities affecting public health or the Dominican Republic's environment;  and
production of materials and equipment directly linked to national defence and security.  Furtherexceptions to national treatment remain in maritime transport and radio broadcasting under sector-
specific legislation.  The authorities indicated that no special taxation rules apply to foreign-owned
enterprises.
45. Within 90 days of making an investment, a foreign company or investor must register the
investment with the Central Bank for statistical purposes, and submit the following documents:  anapplication for registration, highlighting 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 auth orization of operation of a branch office through
the setting up of legal domicile in the country.  Within ten days of receipt of the necessary
documentation, the Central Bank will issue a registration certificate.  Foreign investors can freelyremit, without prior authorization from the Central Bank, the total amount of invested capital,
dividends, and fees from technological transfers and royalty contracts.  Registration of foreign
investment in the free-trade zones is through the National Council for Free Trade Zones.
46. The Office for the Promotion of Investment in the Dominican Republic (OPI-RD), created by
Decree No. 109-97 of 27 February 1997 and modified by Decree No. 1180-01 of 14 December 2001,is a government entity responsible for the promotion of foreign direct investment.
19  T h e  O f f i c e
provides advice and practical assistance to national and international investors.
                                                     
19 Additional information can be found in the OPI-RD online information.  Available at:
http://www.dr-opin.com/.Dominican Republic WT/TPR/S/105
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47. Investment is subject to various environmental requirements.  If a foreign investment is
susceptible to affecting the eco-system, the investor must submit a certificate from the competent
ministry or agency describing the manner in which any damage to the environment will be repaired.
Pursuant to the Law on the Environment and Natu ral Resources (Law No. 64-00) of 18 August 2000,
the production, transport, and commercialization of explosive, harmful, inflammable, radioactive,
toxic, or otherwise dangerous substances require the presentation of an environmental impactevaluation;  the Law also establishes the procedures for the impact evaluation.
48. The Dominican Republic has bilateral investment agreements in force with Argentina, Chile,
the members of the Caribbean Community, the members of the Central American Common Market,
China, Cuba, Ecuador, Finland, and Spain as well as double taxation agreements with Canada and the
United States.  Further bilateral investment agreements have been or are being negotiated, but are notyet in force, with Canada, Columbia, Denmark, France, Germany, Israel, Italy, Korea, Morocco, the
Netherlands, Norway, Panama, Peru, Sweden, Switzerland, the United Kingdom, and the United
States.
49. In addition, the Dominican Republic is a member  of the Multilateral Investment Guarantee
Agency (MIGA) and of the Overseas Private Investment Corporation (OPIC).  It has ratified theConvention on the Recognition and Enforcement of Foreign Arbitral Awards, which entered into
force on 11 July 2002.  In March 2000, the Dominican Republic signed the Convention on the
Settlement of Investment Disputes between States and Nationals of other States.  It has also signed,
but not ratified the Inter-American Conven tion on International Commercial Arbitration.