The Dominican Republic Today

more toward non-traditional fruits for export, such as avocados and papayas sold in the U.S., Canada, Europe, and beyond.

“Non-traditional agriculture really expanded with the Dominican Republic-Central America Free Trade Agreement (DRCAFTA) with the United States,” says Malamud of the AmChamDR. That accord that took effect in 2007 and eliminated most duties on Dominican sales to the U.S. market. “Avocados, tomatoes, cucumbers, mangoes – anything you can grow in a greenhouse – the country now produces for export,” he says. Dominican sales got an indirect boost too, when the U.S. government provided technical assistance to help develop refrigerated capabilities known as “coldchain” to facilitate farm exports to U.S. consumers.

The Dominican Republic has trade accords similar to DRCAFTA with some 50 nations, including in the European Union, the United Kingdom, and in the Caribbean Community, easing sales of local goods abroad, says ProDominicana, the government’s organization to promote exports and investments. Under President Abinader, the agency is looking beyond helping individual companies and instead promoting a broader portfolio at trade shows.

“With our new strategic approach, we center our efforts on understanding how we can improve services that the country offers investors. We’re looking to expedite processes, avoid duplicate procedures, and offer greater security in regulatory matters,” says ProDominicana Director Biviana Riveiro, a business attorney. That approach helped launch the new One-Stop Investment Window and online registration for investments, among other initiatives for agriculture and industry, she says. The country also touts improving infrastructure, from solar energy parks and high-speed internet to new highways and Santo Domingo’s expanding subway network.

Challenges And Solutions

To be sure, there are hurdles to becoming a regional logistics hub, such as staffing. Business leaders see weakness in Dominican public education, including English-language skills. There’s already a need for more logistics specialists, sparking this year’s launch of a National Institute of Port and Logistics Training, says HIT chief Alma.

As the logistic hubs evolve and more Dominican factories enter e-commerce chains with the U.S., “the challenge is to do quick-turn business and build out the logistics model,” enhancing digital links and information flows, adds HanesBrands’ Cook.

Regional competition also abounds. Yet logistics specialist Schad sees a clear advantage for the Dominican Republic over its neighbors: market size. No other Caribbean or Central American neighbor has the critical mass of 11 million residents, 8 million-plus tourists yearly, and 80-plus free-zones producing exports. “And what’s behind our strong, growing market is Dominican joy,” says Schad, “a positive attitude and smiles that attract not only tourists but investors.”

Grupo Puntacana’s Rainieri points to the COVID-19 pandemic as an example of how the country meets challenges. Thanks to aggressive vaccinations, safety protocols, and strong public-private cooperation, the Dominican Republic was among the first to reopen to tourism in 2020 and quickly set new records for passenger arrivals, earning recognition from the World Tourism Organization. “The Dominican people are resilient. We’re looking for solutions,” says Rainieri. “And we’re in our best moment now, because everyone is aligned and working together to help grow and develop the country,” with logistics as the latest international frontier. l