I first would like to welcome the Delegation of the Dominican Republic, led by Ambassador José Sánchez Fung. I would also like to extend the EU’s appreciation to the Discussant, Ambassador Pagán, for her introduction of the main developments in the Dominican Republic’s economic and trade policies since the last Trade Policy Review.

On the economic front, the Dominican Republic showed an impressive economic recovery from the COVID pandemic with a 12,3% GDP increase in 2021 and a continued positive trend in 2022. The record level of inward remittances, the quick restart of the tourism sector, the excellent performance of the free trade zones and the construction sector, and sustained investment flows have been key factors in this significant economic rebound. It demonstrates the resilience of the country’s remarkable growth trajectory over the last 25 years.

The Dominican Republic has financial stability and an attractive business climate. It is the EU’s main trading partner in the Caribbean as well as the main destination of EU direct investment in the region.

Bilateral trade relations between the EU and the Dominican Republic are based on the Economic Partnership Agreement with Cariforum States, in application since 2008. I am pleased to note that the Dominican Republic is well advanced in implementing this agreement, having fully implemented the tariff liberalisation schedule. There is also a high utilisation rate of the preferences by Dominican exporters to the EU. Bilateral trade reached a record high in 2021 of 3,2 billion euro. Since the entry into force of the Economic Partnership Agreement, Dominican exports to the EU have doubled. Perhaps more importantly, they have also diversified, now including manufactured products of higher added value than traditional agribusiness commodities. While we do not yet have the figures for last year, estimates suggest bilateral trade will likely have again set a new record.

I must also mention two aspects of the Dominican Republic’s trade policy that the EU would suggest to modify. First, there is a need for increased transparency in customs regarding the application of preferential tariff rates, the classification of goods and the use of rules of origin. Second, there are some trade barriers and discriminatory measures such as the discriminatory application of value added tax to some imported products (ham, cheese and canned vegetables) in comparison with “like” domestic counterparts. The EU has raised this issue in WTO committees before and we would like to insist on a prompt solution to this discriminatory treatment of foreign products. 

The EU fully supports the Dominican Republic’s efforts for economic development that is inclusive and sustainable. The EU is a major provider of cooperation development assistance – 150 million euro including grants and blending between 2014 and 2020. The EU remains committed to supporting the Dominican Republic under the new EU multiannual financial framework, in particular on key priorities of green transition and digital transformation.

The past years have seen new challenges, emergencies and threats. In this context, it is more important to an ever to maintain and strengthen the rules-based economic cooperation. The WTO - and its reform - is an important guardrail in turbulent times.

We therefore welcome the Dominican Republic’s participation in some key WTO files, such as Investment Facilitation for Development, and the work on MSMEs, and that it became an observer in the Government Procurement Agreement. We would, however, encourage the Dominican Republic to consider taking further steps towards greater involvement, by joining the other joint statement initiatives – on e-commerce and services domestic regulation - as well as the initiatives related to trade and sustainability.

The EU appreciates the Dominican Republic’s replies to the advance questions, which we have received and are examining. On behalf of the EU, I wish the Dominican Republic a successful review.