Dominican Republic

A. Economic structure and state

Key Imports:

Manufacturing 17.8%
Communications 16.2%
Trade 8.5%
Agriculture 7.6%
Major export destinations:

1. US 42.3%
2. Haiti 16.4%
3. Canada 8%
4. India 4.8%

Key Exports:

Free Trade Zone output (misc)

Metals & minerals
Sugar & by-products
Cocoa & by-products

Major import sources:

1. US 42%
2. China 9.2%
3. Venezuela 5.6%
4. Trinidad & Tobago 4.5%

The DR economy is highly dependent in the US economy, mainly for trade, tourism and
remittances. The Dominican Republics economy has kept its steady growth since 2012, achieving
a 6.7% GDP growth in 2016. Fresh foreign investment in tourism infrastructure keeps pouring into
the country, and many resorts and hotels are either currently being developed.

The latest investments in tourism infrastructure have been focused on high-end hotels and resorts,
which are expected to increase the average spending per head of tourists. Remittances, another
key source of revenues for the country and a driver of economic growth, grew 6.1% compared to
2015 and reached US$5.2bn, equivalent to an estimated 7.1% of GDP.
 B. Foreign direct investment and trade
The stats prepared by the Dominican Central Bank show Canada as the 2nd largest all-time
foreign investor in the country (USA being 1st), with a total cumulative investment of US$5.94
billion. Canadian investments are mostly concentrated in mining, financial services, manufacturing,
tourism, and agriculture.

The DR exported US$9.5bn worth of goods in 2016, up from US$9.4b in 2015. Gold export (from
the Pueblo Viejo project), reached US$677M in 2016, maintaining its status as a key export since
2013. Imports also grew in 2016 to reach US$16.9b, placing the countrys trade deficit at US$7.5b.

C. Trade agreements and Canadian trade with Dominican Republic

i. Membership in trade agreements and other multilateral agreements:

The DR is signatory of DR-CAFTA, the Free Trade Agreement between the US, 4 Central
American Countries and the Dominican Republic. DR-CAFTA entered into its 10th year,
providing duty-free or preferential tariffs to many products from member countries. The
Dominican Republic also has an Economic Partnership Agreement (EPA) with the EU
since 2008. The EPA is a more comprehensive agreement than a Free Trade Agreement
(FTA), and is has created better market access conditions to the EU market for Dominican
products, and vice versa.

As Canada does not have a FTA with the DR, it means that the Canadian companies are
less competitive in the DR as the tariffs are lowered every year with the United States and
European Union. An FTA would be instrumental for Canadian companies to re-gain, keep
or improve their market shares in the DR.

ii. Main Canadian exports to the DR:

Canada exported C$151.2 million of goods to the DR in 2016. The main exports from
Canada were: wheat, smoked herring, paper, mechanical parts and fertilizers.

iii. Main Canadian imports from the DR:

Canada imports from the Dominican Republic were C$1.16 billion. This high value is
attributable to the gold imported from Barrick Gold/Gold Corps project in the Dominican
Republic, which totaled C$896 million. Other key imports were medical supplies, electrical
and electronic components, cocoa and textiles.
OPEN MARKETS
Trade is important to the Dominican Republics economy; the value of exports and imports taken together
equals 54 percent of GDP. The average applied tariff rate is 6.5 percent. In general, the government does
not discriminate against or screen foreign investment.