RESTRICTED
WORLD TRADE WT/TPR/S/11
3January 1996
ORGANIZATION(96-0053)
TRADE POLICY REVIEW
DOMINICAN REPUBLIC
Report bytheSecretariat
Thisreport, prepared forthefirstTrade Policy Review ofDominican Republic has
beendrawn upbytheWTO Secretariat onitsownresponsibility. TheSecretariat
has,asrequired bytheAgreement establishing theTrade Policy Review Mechanism
(Annex 3oftheMarrakesh Agreement Establishing theWorld Trade Organization),
sought clarification fromtheGovernment ofDominican Republic onitstradepolicies
andpractices.
Document WT/TPR/G/11 contains thepolicy statement submitted bytheGovernment
ofDominican Republic.
Note: Thisreport issubject torestricted circulation andpress embargo untiltheendofthemeeting
oftheTrade Policy Review Body onDominican Republic.Dominican Republic WT/TPR/S/11
Page iii
CONTENTS
Page
SUMMARY OBSERVATIONS xiii
(1) Introduction xiii
(2) TheDominican Republic inWorld Trade xiv
(3) Institutional Framework xiv
(4) Trade Policy Features andTrends xiv
(i) Evolution oftrade policies andinstruments xv
(ii) Newinitiatives xvi
(5) Conclusion xvi
I. THE ECONOMIC ENVIRONMENT 1
(1) Major Features oftheEconomy 1
(2) Recent Economic Developments 4
(i) Introduction 4
(ii) Supply anddemand 7
(iii) Labour market 7
(iv) Public finance 9
(v) Monetary policy 10
(vi) Prices 11
(vii) Exchange ratedevelopments 12
(viii) Balance ofpayments 13
(3) Composition andDirection ofTrade 16
(i) Composition oftrade 16
(ii) Direction ofmerchandise trade 17
(4) Outlook 17
Annex I.1 20
Note: Differences between merchandise trade data and balance-of-payments figures inthis
Report areduetotheinclusion oftrade from free-zones intheUnited Nations Comtrade
database statistics, butnotinbalance-of-payments statistics. Merchandise trade figures
compiled inTables AI.1, AI.2, AI.3 andAI.4, and Charts I.6andI.7arebased on
"reverse flow" information reported toComtrade byDominican Republic 'strade
partners.WT/TPR/S/11
Page ivTrade Policy Review Mechanism
Page
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 21
(1) General Framework 21
(2) Structure ofTrade Policy Formulation 21
(i) Advisory andindependent review bodies 22
(3) Trade Policy Objectives 23
(i) General trade policy objectives 23
(ii) Sectoral trade policy objectives 23
(4) Trade Laws andRegulations 24
(5) Trade Agreements 24
(i) Multilateral agreements 24
(ii) Other agreements orarrangements 25
III. FOREIGN INVESTMENT AND TRADE 27
(1) Framework forForeign Direct Investment 27
(2) Trends andPatterns inForeign Direct Investment 29
IV. TRADE POLICIES AND PRACTICES BYMEASURE 31
(1) Overview 31
(2) Measures Directly Affecting Imports 32
(i) Registration, documentation 32
(ii) Tariffs 32
(iii) Tariff quotas 39
(iv) Variable import levies 39
(v) Other levies andcharges 39
(vi) Foreign exchange regulations 41
(vii) Minimum import prices 41
(viii) Import prohibitions 42
(ix) Import licensing 42
(x) Import quotas 43
(xi) Import surveillance 43
(xii) State-trading enterprises 43
(xiii) Import cartels 44Dominican Republic WT/TPR/S/11
Page v
Page
(xiv) Countertrade 44
(xv) Standards andother technical requirements 44
(xvi) Government procurement 46
(xvii) Local content schemes 46
(xviii) Rules oforigin 47
(xix) Anti-dumping andcountervailing measures 47
(xx) Safeguard actions 47
(xxi) Measures implemented inexporting countries 47
(xxii) Balance-of-payments measures 47
(xxiii) Import privileges extended tofreezones 47
(xxiv) Other measures affecting imports 47
(3) Measures Directly Affecting Exports 48
(i) Registration, documentation 49
(ii) Export taxes, charges andlevies 49
(iii) Minimum prices 51
(iv) Export prohibitions 51
(v) Export licensing 52
(vi) Export quotas 52
(vii) Export cartels 52
(viii) Voluntary restraints, surveillance andsimilar measures 52
(ix) Export subsidies 52
(x) Duty andtaxconcessions 53
(xi) Export finance 53
(xii) Export insurance andguarantees 54
(xiii) Export promotion, marketing assistance 54
(xiv) Export performance requirements 54
(xv) Free-trade zones, export processing zones 54
(4) Measures Affecting Production andTrade 58
(i) Adjustment assistance 58
(ii) Assistance forresearch anddevelopment 58
(iii) Production subsidies andtaxconcession 58
(iv) Competition rules 59
(v) Pricing andmarketing arrangements 59
(vi) Trade-related investment measures (TRIMs) 60
(vii) Intellectual property protection 60
(viii) Other measures affecting production andtrade 61
Annex IV.1 62WT/TPR/S/11
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Page
V. TRADE POLICIES AND PRACTICES BYSECTOR 63
(1) Overview 63
(2) Agriculture, forestry andfisheries 63
(i) Crop production andlivestock 65
(ii) Forestry andlogging 70
(iii) Fishing 71
(3) Mining andEnergy 72
(i) Mining andmetal industries 72
(ii) Energy 73
(4) Manufacturing 75
(i) Textiles andclothing 78
(ii) Electronics 79
(5) Services 80
(i) Tourism 81
(ii) Financial services 84
(iii) Telecommunications 85
(iv) Transportation 87
(v) Other services 88
Annex V.1 89
VI. TRADE DISPUTES AND CONSULTATIONS 92
(1) GATT/WTO Dispute Settlement 92
(2) Dispute Settlement outside GATT/WTO 92
REFERENCES 93
APPENDIX TABLES 95Dominican Republic WT/TPR/S/11
Page vii
CHARTS
Page
I. THE ECONOMIC AND TRADE ENVIRONMENT
I.1 Growth inrealGDP andconsumer price index, 1980-93 2
I.2 Sectoral distribution ofGDP, 1989 and1993 3
I.3 Selected indicators ofmacroeconomic development, 1971-93 8
I.4 REER index andtrade ingoods andnon-factor services, 1980-93 13
I.5 Composition ofexternal earnings oncurrent account, 1985 and1994 15
I.6 Product composition ofmerchandise trade, 1980 and1993 18
I.7 Direction ofmerchandise trade, 1980 and1993 19
III. FOREIGN INVESTMENT AND TRADE
III.1 Foreign direct investment cumulative inflows bysector, 1979-1990 29
IV. TRADE POLICIES AND PRACTICES BYMEASURE
IV.1 Distribution oftariff rates, 1995 35
IV.2 Average tariff levels bysectors andselected sub-sectors, 1995 36
IV.3 Domestic andfreezoneexports, 1980-93 49
IV.4 Export taxincome, 1983-92 50WT/TPR/S/11
Page viiiTrade Policy Review Mechanism
TABLES
Page
I. THE ECONOMIC ENVIRONMENT
I.1 Major features oftheDominican Republic economy (1987 prices) 1
I.2 Economic performance oftheDominican Republic, 1980-93 6
I.3 Central Government revenue 9
I.4 Balance ofPayments 14
I.5 External debt, 1980-93 16
IV. TRADE POLICIES AND PRACTICES BYMEASURE
IV.1 Structure ofcharges levied onimports ofselected products, 1995 41
IV.2 Products subject toexport taxes, 1994 51
IV.3 Domestic andfree-zone exports, 1980-93 57
IV.4 Taxincentives under Law299 58
V. TRADE POLICIES AND PRACTICES BYSECTOR
V.1 Tourism intheDominican Republic, 1988-93 82Dominican Republic WT/TPR/S/11
Page ix
APPENDIX TABLES
Page
AI.1 Merchandise exports byproduct category, 1980-93 97
AI.2 Merchandise imports byproduct category, 1980-93 98
AI.3 Merchandise exports bymajor region andcountry ofdestination, 1980-93 99
AI.4 Merchandise imports bymajor region andcountry oforigin, 1980-93 100
AIV.1 Tariff escalation bysector, 1995 101
AIV.2 Listofexemptions from ITBIS tax 102
AIV.3 Products subject toexport controls byCEDOPEX,1992 103
AV.1 Tariff ratesfortheDominican Republic, byISICcategory, 1994 105
AV.2 Tariff escalation andtariff ranges intheDominican Republic, 1994 109
AV.3 Sector-specific commitments inservices, 1994 112WT/TPR/S/11
Page xTrade Policy Review Mechanism
LIST OFABBREVIATIONS
ACP African, Caribbean andPacific States
ACS Association ofCaribbean States
AFCONAGRO Domestic Producer Association ofFruit andVegetable Preserves
(Asociación deFábricas deConservas deFrutas yVegetales )
ALADI Latin American Integration Association (Asociación Latinoamericana de
Integración )
CAP Common Agriculture Policy
CARICOM Caribbean Common Market
CAT Taxcredit certificate (Certificado deabono tributario )
CBI Caribbean Basin Initiative
CDE Dominican Electricity Corporation (Corporación Dominicana de
Electricidad )
CEA State Sugar Council (Consejo Estatal delAzúcar )
CEDOPEX Dominican Centre ForExport Promotion (Centro Dominicano de
Promoción deExportaciones )
CODETEL Dominican Telephone Company
CONAPROPE Swine Commission oftheNational Production Council
CORDE Dominican Corporation ofState Enterprises (Corporación Dominicana de
Empresas Estatales )
DIGENOR Standards andQuality System Division (Dirección General deNormas y
Sistemas deCalidad )
EDT Total External Debt
EU European Union
FDA Federal Department ofAgriculture (U.S.)
FDI Foreign direct investment
GALS Guaranteed Access Levels
GATS General Agreement onTrade inServices
GDP Gross Domestic Product
GNP Gross National Product
GSP Generalized System ofPreferences
HS Harmonized System
IMF International Monetary Fund
INAZUCAR National Sugar Institute (Instituto Nacional delAzúcar )
INESPRE National Price Stabilization Institute (Instituto Nacional deEstabilización de
Precios )
ISC Selective Consumption Tax,(Impuesto Selectivo alConsumo )
ISO International Organization forStandardization
ITBIS Taxonthetransfer ofindustrialized goods andservices (Impuesto alas
transferencias debienes industrializados yservicios )
MFA Multifibre Agreement
NAFTA North American FreeTrade Agreement
NEP NewEconomic Programme
NFS Non-factor servicesDominican Republic WT/TPR/S/11
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NORDOM Dominican Standards (Normas Técnicas Dominicanas )
PROFINEX Export Financing Programme (Programa deFinanciamiento alas
Exportaciones )
REFIDOMSA Dominican Refinery (Refinería Dominicana S.A.)
RES Reserves, excluding gold
SEA Secretary ofAgriculture
SECTUR Secretary ofTourism (Secretaría deTurismo )
SEIC Secretary ofIndustry andCommerce
TRIMS Trade-Related Investment Measures
TRIPS Trade-Related Aspects ofIntellectual Property Rights
UNCTAD U.N. Conference onTrade andDevelopment
UNDP United Nations Development Programme
USTR United States Trade Representative
WIPO World Intellectual Property Organization
WTO World Trade Organization
XGS Exports ofGoods andServicesDominican Republic WT/TPR/S/11
Page xiii
SUMMARY OBSERVATIONS
(1) Introduction
In1990, after several years of
stagflation, theDominican Republic began a
programmeofreformstorestoremacroeconomic
stability andgrowth. Asaresult ofthe
programme, inflation andthefiscal deficit have
decreased; GDP hasstarted togrow; andthe
balance ofpayments hasmoved intosurplus.
Confidence stemming from the strong
performance oftheeconomy hasbeenreflected
incapitalrepatriationandanincreaseinforeign
direct investment.
Tocomplement themacroeconomic
programme, since 1990there hasalsobeenan
importantreformoftradepoliciesandpractices,
aswell asofthelegal andinstitutional
framework. These areintended toachieve a
more neutral régime which should enhance
international competitiveness and reduce
anti-exportbias.Thesereformsshouldalsohelp
toreduce sectoral divergences intheDominican
economy, where import-competing segments of
industry andagriculture andtraditional, mainly
farm,exportshavesufferedfromrestrictivetrade
legislation, while export activities inthefree
zones andthetourism sector havebecome the
engines ofgrowth.
Under thereform programme, trade
policy hasbecome more openandcompetition
hasbeenencouraged. Alarge number oftrade
restrictions havebeensuspended inimportant
effort toreform ahighly discretionary and
complex trade régime. However, thelegislative
framework hasnotyetbeencompletely revised;
thus, laws, decrees andresolutions governing
foreign trade appear tohavelittleconsistency
andtransparency. Therationalization ofthis
legislation, currently inhand, willenhance the
predictability ofthetrade régime andprovide
greater certainty forbusiness.
Fiscal, including tariff, reforms were
among thekeyelements ofthestructural
measures taken in1990. Thefiscal reformsimplified thetaxcodeinorder toimprove the
efficiency oftaxcollection. Italsoabolished
allfiscal incentives, withtheexception ofthose
granted tothefreezones, inorder tomake the
system moreneutral. Thetariffreform partially
simplified thetrade régime. Tariff exemptions
wereeliminated andthelevelanddispersion of
thetariff ratesdecreased; tariffs range from3
to35percent. However, there isstillsome
tariffescalation,andeffectiveratesofprotection
incertain sectors remain high. Thereduction
oftariffs, coinciding withother trade reforms,
ledtoanimport response which inturn
increased tariffrevenues; tariffs remain oneof
themostimportant sources offiscal revenue.
Financial reform isstillunder way.
Major changes include theauthorization of
multi-service banks andtheapproval ofanew
prudential law. Further reforms are
contemplated inthedraft Monetary and
Financial Code, nowbefore Congress. New
legislation should reduce thecosts offinancial
intermediation caused bytheriskinvolved in
investing inwhat hasbeen perceived asan
unstable banking system. Asthefinancial
reforms continue andthesystem becomes more
efficient, interest rates should alsodecline,
making credit more affordable tosmall- and
medium-scale entrepreneurs.
Foreign direct investment hasbecome
increasingly important, especially inthefree
zones andinthetourism sector. However,
unexploited opportunities stillremain inseveral
areas oftheeconomy. According tothe
authorities, anewFDIlawhasrecently been
approved bytheCongress (since thecompletion
ofthemain partofthisreport). Thiswould
grant national treatment, liberalize profit
remittances, and eliminate inconsistencies
between thepresent legislation and the
Dominican Republic 'sSchedule onSpecific
Commitments onservices.
Since thebeginning ofthe1970s,
resources havebeenshifted fromthetraditionalWT/TPR/S/11
Page xivTrade Policy Review Mechanism
farming base oftheeconomy towards the
production ofservices. Although the
performance oftheagricultural sector hasbeen
poorduetobothdomestic andexternal factors,
itcontinues tobethemajor employer. The
services sector, ledbytourism, hasbecome
economicallydominant.Manufactureofclothing
inthefreezones hasalsobecome animportant
activity. The informal sector appears
substantial, but,byitsnature, isdifficult to
assess. Onthedemand side, private
consumption hasdeveloped strongly since the
beginning ofthe1970s.
Theprivate sector plays animportant
rôleespecially inthefreezones andthetourism
sector, although theStatestillhasasignificant
share intheeconomy. Privatization hasnot
expanded asrapidly asithasinsome other
Latin American countries despite thefinancial
burden ofpublic enterprises.
(2) TheDominicanRepublicinWorldTrade
Themajor trading partner ofthe
Dominican Republic istheUnited States both
interms ofexports and imports. This
dominance canbeattributed totwofactors.
First, theDominican Republic benefits from
duty-free privileges under theCaribbean Basin
Initiative (CBI); Dominican exports represent
around 25percentofthegoods entering the
United States under theCBIscheme. Second,
thefreezones havespecialized intheassembly
ofclothing tobeexported totheUnited States
under theoff-shore assembly programme,
anotherpreferentialrégime. The
Dominican Republic hasbeenseverely affected
bythereduction ofU.S.sugar import quotas,
previously particularly advantageous since
in-quota sugar exports totheUnited States earn
twice theworld market price.
Since1990,theDominicanRepublichas
benefited from ACP preferences under the
Lomé Convention, including forbananas.
However, untilrecently thishasnothadamajor
impact ontrade withtheEuropean Union.Inrecent years, exports ofagricultural
goods, such assugar, coffee, cocoa, and
tobacco -thetraditional Dominican exports,
have become secondary; while exports of
non-factor services andmanufactured goods,
especially clothing, haveincreased. Non-factor
services suchastourism, andproceeds fromthe
freezones have become themost important
source offoreign exchange sincethemid-1980s,
followedbyremittancesfromDominicansmainly
working intheUnited States.
(3) Institutional Framework
Althoughofficialresponsibilityfortrade
andtrade policy isspread among alarge
numberofgovernmentministriesandinstitutions
intheDominican Republic, theMinistry of
Foreign Affairs hastheprimary rôleintrade
negotiations, being responsible fornegotiating
andsigning trade agreements. Alsounder its
mandate areother bodies dealing withspecific
aspects offoreign trade: these include the
Foreign Trade Commission (Comisión de
Comercio Exterior), which advises the
Government on the formulation and
implementation oftrade policies, andthe
NationalGATTCommission(ComisiónNacional
delGATT),whichstudiesallWTO/GATT-related
issues andadvises onthenegotiating position
oftheDominican Republic.
TheGovernment alsoconsults ona
regular basis withtheprivate sector through
many official committees thatareentrusted with
theformulation orimplementation oftrade
policies.
(4) Trade Policy Features andTrends
Thegeneral trade policy objectives of
theDominicanRepublicincludemovingtowards
amore outward-oriented trade régime,
strengthening andincreasing overseas market
access forDominican products, andachieving
thefurtherintegrationofthe
Dominican Republic intotheworld economy.Dominican Republic WT/TPR/S/11
Page xv
TheDominican Republic acceded tothe
GATT in1950. Itwasobserver totwoTokyo
Round Agreements (Government Procurement
andImportLicensing).TheDominicanRepublic
became amember oftheWTO inMarch 1995,
having signed theFinal ActoftheUruguay
Round and the Marrakesh Agreement
establishing theWorld Trade Organization.
Under theSingle Undertaking, allUruguay
Round Agreements, except thefourplurilateral
agreements,becamebindingonthe
Dominican Republic.
TheGovernment 'sgeneral trade policy
objectives have been pursued through
multilateral, regional and bilateral trade
negotiations, inparticular withCaribbean and
CentralAmericancountries. The
Dominican Republic hasapplied toenter
CARICOM, where itcurrently hasobserver
status. The Dominican Republic also
participated actively intheestablishment ofthe
Association ofCaribbean States (ACS), which
seekstopromote theeconomic integration ofthe
region through theliberalization oftrade,
investment andtransport. TheGovernment is
alsointerested inparticipating inthework
programme forahemispheric free-trade area,
following theSummit oftheAmericas in
December 1994. Italsoactively lobbied forthe
approval bytheUnited States oftheextension
ofNAFTA treatment toCentral America andthe
Caribbean.
(i) Evolution oftrade policies and
instruments
The previous trade régime was
characterized byawiderange oftariff rates.
Insome cases, nominal rates exceeded
200percent, andeffective protection was
considerably higher forcertain sectors. Import
prohibitions andquantitative restrictions also
provided virtually insurmountable levels of
protectiontodomesticindustries.Theallocation
ofresources wasdistorted, andananti-export
biascreated, bythehighlevels ofprotection.Following thetariff reform, tariffs,
levied onanadvalorem basis varybetween
3and35percent; tariffescalation stillexists,
indicating thatcertain processing industries
benefit fromhigher effective protection thanis
evident from thenominal rates. Thetariff
reform eliminated other levies andtaxes on
imports; theadditional charges thatremain are
theforeign exchange commission, andconsular
fees.
Imports areallowed concessional entry
only under thefreezones andtemporary
admissions régimes. Since 1993, anyother
concessionalentryforimportsmustbeapproved
byCongress. Tariff preferences aregranted
onlytoCosta Rica, under apreferential trade
agreement established inMay1981.
In1990, allimport quotas andmost
import licences and prohibitions were
eliminated; import licences werereplaced by
tariffs, providing greater transparency tothe
system.Sanitaryandphytosanitaryrequirements
seemtoapply equally todomestic andimported
products.
Asaresult oftheUruguay Round
Agreement onAgriculture, tariff rates forall
agriculturalproductswereboundat40percent.
Foreightproducts(beans,chicken,corn,garlic,
milk, onions, riceandsugar) theDominican
Government isseeking tomodify thebound rate;
negotiations havenotyetstarted, andimport
licences arestillrequired forthese products.
Imports aresubject toavalue-added
typetax(Transfer ofIndustrialized Goods and
Services, Impuesto alasTransferencias de
Bienes yServicios, ITBIS). Some products are
exempt fromthistax,and,insome cases, the
taxexemptions benefit domestic products only.
TheISC(Selective Consumption Tax,Impuesto
Selectivo alConsumo) islevied mainly on
alcoholic beverages, tobacco products and
imported luxury items.
Publicprocurementisregulatedbylaw;
however, inpractice government agencies andWT/TPR/S/11
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State enterprises follow their ownguidelines.
Foreign suppliers must beassociated witha
domestic company inorder toparticipate in
public bids.
Domesticstandardsinthe
Dominican Republic arebased oninternational
standards butadapted todomestic conditions.
They areapplied equally todomestic and
imported goods.
In1992, mostexport restrictions such
aslicensing were abolished bydecree. No
special registration ordocumentation isnow
required formost exports, other than a
statistical declaration. Export permits arestill
required forproducts affecting theenvironment,
andforagricultural goods forsanitary reasons
andquality control. Internal taxes arenot
levied onexports. In1990, export taxes on
agricultural goods wereabolished. Although
theGovernment isaware thatexport cartels
exist, theyarenotregulated.
Historically, anumber ofmeasures
affecting exports wereimplemented through a
mixture oflaws, decrees, regulations and
resolutions. Toremedy thesituation, the
Government iscurrently planning tosimplify the
export régime. Thecredibility ofthenewrégime
would alsobeenhanced ifitwereenshrined in
law.
Freezones havebecome oneofthemost
importantanddynamicsectorsintheDominican
economy forthegeneration ofemployment and
foreign exchange. Thesuccess ofthescheme
canbeattributed tothestability, transparency
andcoherence oftheoverall policies regulating
thefreezones. Exports fromfreezones have
increased continuously attimes when other
exports havedecreased. However, theexport
base isnarrow, specializing inclothing and
exportingmainlytotheUnitedStates;andvalue
added isverylow.
Upto1992, theInstitute ofPrice
Stabilization (INESPRE) wasresponsible for
administering prices foragricultural goods.Sincethen,however,pricesurveillancehasbeen
maintained onlyforafewitems. Following the
approval oftheTaxCode in1992, most
production subsidies andtaxconcessions were
eliminated. However, the Dominican
Government isempowered toprovide temporary
assistance tospecific sectors through price
support mechanisms. Forinstance, cocoa and
coffeeproducershaveattimesbeencompensated
forprice fallsintheinternational market.
(ii) Newinitiatives
TheDominican Government, aware of
theimportance ofreforming theeconomy and
ofaclearer legal framework tosupport these
reforms, isintheprocess ofdrafting lawsthat
wouldsupersedecurrentlegislation,regulations
anddecrees invarious areas oftheeconomy.
Legislation incorporating thenewmultilateral
commitments onintellectual property rights is
being drafted, aswellaslegislation topromote
freecompetitioninthedomesticmarket.Several
draft laws arecurrently being discussed in
Congress,includingananti-dumpinglaw,anew
foreign direct investment law,anewelectricity
law,andanewFinancial Code.
(5) Conclusion
Thepost-Uruguay Round era,aswell
asthefullimplementation ofNAFTA, willbring
someimportantopportunitiesandchallengesfor
theDominican Republic. While some barriers
toitsexports willbereduced, itwillalsolose
preferential margins forsome ofitsexports.
Theopening oftheeconomy will,inthelonger
term,meansomedifficultadjustments,especially
forimport-competing agriculture. These new
conditions imply aneven greater need to
eliminate structural impediments togrowth in
sectors withexport potential bycontinuing and
enhancing thetrade liberalization process
through thefiscal, financial, institutional, and
legal reforms already under way.
Thesuccess ofthetourism industry in
theDominican Republic hasproved thatthe
country iswell able tocompete intheDominican Republic WT/TPR/S/11
Page xvii
international market andexploit itscomparative
advantage. Thesector wasinitially developed
under atemporary protection régime, but
continued toprosper astherégime wasphased
out. Thefreezones stilloperating under a
preferential régime, havealsobeensuccessful.
Progress inthese twosectors, relative tothe
import-competingandtraditionalexportsectors,
clearly points upthedualism oftheDominican
economy. Theliberalization oftheeconomy,
byreducing thisdualism, should allow the
expansion ofother potentially competitive
sectors.