Commercial Differences of Dominican Republic and El Salvador Unresolved

Despite DR-CAFTA, the Dominican Republic has retained customs duty on various Salvadoran products.

Friday, August 27, 2010

The Dominican Republic's director of Foreign Trade, Yahaira Sosa, indicated that the measures taken are a response to subsidies paid by El Salvador's government to its exporters.

"She explained that the decision to retain the tariffs on paper, card, plastics and juices seeks to ensure a level playing field for bilateral exchange," reports

El Salvador's government claims that the application of tariffs to some of its products has caused their exports to the Dominican Republic to drop 30%.

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More on this topic

Dominica Lifts Restrictions to Salvadoran Products

January 2011

As consequence of El Salvador eliminating export incentives, the Dominican Republic will not impose further restrictions.

Dominican Vice Minister of Commerce, Mario Roger Hernandez, said the move responds to the approval of El Salvador's decree eliminating staring February 1st, the export incentive known as 'drawback'.

Dominican to Negotiate with CA

October 2010

The Dominican government said they are willing to negotiate with Central America the imposition of tariffs on 26 products from the Isthmus.

The Dominican Republic's Trade Minister, Ramón Fadul said in a statement that tariffs on Central American goods do not violate free trade agreements, but are part of safeguard mechanisms established in the treaties themselves.

C.A. Will File Lawsuit Against Dominican Republic

October 2010

The case before the World Trade Organization (WTO) is due to high tariffs imposed on products from the region.

Representatives from El Salvador, Honduras, Guatemala and Costa Rica, decided to file a lawsuit due to the "negative effects" for the region as a consequence of the measure taken by Dominican Republic.

El Salvador: Exporters Give Up Incentives

September 2010

Ten Salvadoran companies exporting to the Dominican Republic have agreed to forego the 6% subsidy in order to solve the trade issue between the countries.

Dominican Republic trade authorities had indicated that they would retain duties on various Salvadoran products as a response to the protectionist policies El Salvador provides its exporters.

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