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PRESS RELEASE
GDP-WASH ORGANIZES A PANEL PRESENTATION
ON THE BILATERAL RELATIONS BETWEEN
THE UNITED STATES OF AMERICA AND THE DOMINICAN REPUBLIC
ON THE OCCASION OF DOMINICAN WEEK 2007
On the occasion of
Dominican Week 2007 in Washington, DC, the Group of Dominican
Professionals in Washington, DC (“GDP-WASH”) held a panel presentation
discussing the Dominican-American Agenda in the recent years. The
panel presentation focused on the DR-CAFTA and the deportation of
inmates to the Dominican Republic. The panel was comprised of H.E.
Flavio Dario Espinal, Dominican Ambassador to the United States;
Michael House, Partner of the law firm McDermott Will & Emery, LLP;
Dr. Roberto Saladin, Alternate Executive Director for Mexico and the
Dominican Republic at the Inter-American Development Bank; and Dr.
Maribel Gasso, President of the Confederación Patronal Dominicana.
Lorena Perez, President of GDP-WASH, was the panel moderator. The
event was held at the Enrique V. Iglesias Conference Center of the
Inter-American Development Bank.
Ambassador Flavio Dario Espinal focused on the steps that the
Dominican Republic has undertaken and the hurdles it has overcome in
order to implement the Dominican Republic-Central American Free Trade
Agreement (“DR-CAFTA”). In his remarks, he indicated that although the
Dominican Republic is beginning to gain some perspective regarding the
DR-CAFTA, it is still in the process of transition and getting ready
for the new challenges faced as a result of the changing nature of the
relationship between that country and the United States of America
(“US”). He indicated that with DR-CAFTA, the Dominican Republic had
moved from the unilateral to the reciprocal relationship, and that the
DR-CAFTA provides the Dominican Republic with the stability and
certainty of an international treaty, rather than with being subject
to the will of the US Congress every few years regarding renewals of
regional unilateral preferential programs.
Ambassador Espinal indicated that the issue of textiles has been a
difficult one with the DR-CAFTA, as it is to be expected in any type
of free trade agreement or preferential status. He said that it would
be inaccurate to say that all the issues regarding DR-CAFTA have been
solved, and emphasized that in any event, free trade agreements are
not the end result but merely an effective tool in the quest for
development and increase of the standard living of the peoples of the
nations. He stated that free trade agreements will not solve all the
problems, and that the countries must develop their own set of
policies regarding other issues. He indicated that nonetheless it is
important to have free trade agreements, especially with the largest
and most sophisticated world economy, because it indicates that the
countries entering into those agreements are part of the world economy
and are not isolating themselves. He said that in and on itself, the
DR-CAFTA is not a panacea, and that in order to take advantage of the
opportunity that the possibility of increasing trade and investment
that a trade agreement of that nature brings to a country like the
Dominican Republic, certain things must be done, such as keeping
macroeconomic stability and sustaining the country’s economic growth.
He stressed the importance of improving education in the Dominican
Republic at all levels, including development of new technologies,
microeconomic efficiency, continuing to improve infrastructure through
both local and foreign investment, and the institutional strengthening
of the rule of law.
In closing, ambassador Espinal stated that with DR-CAFTA, the
Dominican Republic has moved from a preferential to a reciprocal type
of relationship with the US, creating certainty because now the
Dominican Republic does not depend on the changing mood of the US
Congress, but that at the same time, the Dominican Republic has put
itself in a position where a new set of challenges are ahead of the
country, a country where both the private and public sectors have to
come together in developing that agenda.
Mr. Michael House focused his presentation on the perspective of what
industries have said are their concerns, their hopes and their fears
about developments relating to the DR-CAFTA region and the
implementation of that free trade agreement. His presentation dealt
with the goals of some US industries in supporting DR-CAFTA; recent
implementation issues that the US Government is wrestling with in the
Dominican Republic and other DR-CAFTA signatory countries; and
strategies used by Asian producers and Asian industries, particularly
in the textile industry. He reminded the audience that the negotiation
and later consideration of DR-CAFTA in US Congress was quite a
controversial episode and that the agreement itself was hanging by a
thread and almost did not reach approval but for the final conversion
of a few members of Congress. He said that in the post-agreement
phase, in the implementation phase, those parties who were quite
aggressively opposed to this agreement will continue to put their
focus on certain issues. He indicated that US manufacturing industry
was very largely in favor of this agreement because they desired a
reciprocal framework which would give them enhanced duty free access
to the DR-CAFTA market generally.
Regarding textiles, Mr. House indicated that in the negotiations
leading up to the DR-CAFTA, textiles presented one of the thorniest
set of issues that had to be contended with, in part because it was
not simply a matter of deciding which tariff lines would be zeroed out
now or under some phased schedule, but rather dealing with the very
complicated sets of rules that already governed textiles. He indicated
that at the time, the manufacturing industry in the US made a very
interesting point in their support of the DR-CAFTA, indicating that
without the benefits and the specific origin rules that were finally
implemented in the DR-CAFTA, elimination of the worldwide quotas which
would free up China, Pakistan, other major textiles exporters, would
free up their products to enter the US quota free and duty free would
essentially completely displace or effectively displace exports of
textiles from the Dominican Republic and apparel products to the US
market as well as other DR-CAFTA member countries and in doing so
would then have an important adverse effect on the US’ industry’s own
exports to the Dominican Republic. This argument constituted reason
enough for the manufacturing and textiles industries to strongly
support the adoption of DR-CAFTA.
Mr. House indicated that the textile side of the Agreement has already
given rise to a number of post-Agreement negotiations in some cases,
and even disputes: there has been a case initiated by the US against
Honduras, on imports of socks, a safeguards action which under the
terms of the Agreement, gives Parties to the Agreement the right to
re-impose the duties to the pre-Agreement levels if the imports are
increasing in a sharp enough and unexpected enough fashion to satisfy
the thresholds in the Agreement. He indicated that if this were to
happen and safeguard measures were to be imposed, it would be the
first time that the US in a bilateral agreement has ever used
safeguards to impose what is called a snap-back imposition of the
duties that had been lifted as a result of the Agreement.
Mr. House concluded by suggesting that industries in the DR-CAFTA
region should think about how to take advantage of the interest shown
by certain Asian countries which are equally at a disadvantage to
China as other countries might be, and which still find themselves at
a greater disadvantage and are thus looking for ways through
investment and production arrangements in the DR-CAFTA region as a way
to enhance or maintain their presence in the US markets.
Dr. Roberto Saladin focused on the issue of security in the Dominican
Republic, specifically, the deportations to the Dominican Republic of
Dominicans from the US. He indicated that this is a topic that has
previously been addressed by Dominican Week in the context of
discussions and the drafting of a law for the defense and protection
of Dominicans residing abroad, a law which was approved by the
Dominican Congress during President Fernandez’s first term in
Government but which is currently not being enforced.
Dr. Saladin indicated that in the Dominican Republic, currently there
is no coherence in the treatment given to the Dominicans deported to
the Dominican Republic. He asked for GDP-WASH’s support in requesting
that the Dominican Government consider constituting a commission which
should be comprised of the Attorney General of the Dominican Republic,
the Dominican Police, two Dominican universities, the Catholic Church
and Christian entities, and which would be tasked with drafting, with
the support of US Aid, the terms of reference regarding a study to
create an institutional framework for the treatment of individuals
deported from the US to the Dominican Republic, from the moment they
arrive in the Dominican Republic. He indicated that there is a need
for legislation that would apply to those individuals; the need for a
psychological and psychiatric evaluation; the need for vigilance and
oversight of those individuals for at least 180 days from the date
they enter the Dominican Republic; that those individuals be sent to
the vocational schools of the Dominican Armed Forces or INFOTEP for at
least 18 months, so they may learn a trade to earn their living;
access to legal documentation; and their eventual reinsertion to the
labor market in the Dominican Republic. He emphasized the risks and
dangers that those individuals pose not only for the Dominican
Republic but also for the US, since many of those individuals may end
up re-entering the US illegally.
Dr. Saladin emphasized the complexity of this issue, and indicated
that it is time to begin bilateral conversations with the US
Government regarding the sharing between both countries of the
responsibility for those individuals as well as the expense that they
represent to the Dominican Government. He indicated that the Dominican
Republic cannot alone undertake the burden that these individuals
represent. Dr. Saladin also indicated that the problem could be
addressed at the regional level, possibly in a gathering organized by
the Organization of American States. He pointed out that the costs
associated with dealing with and reincorporating those individuals
should be shared by the governments of the country that deport them
and of the country that receive them.
Dr. Maribel Gasso spoke about the labor provisions and negotiations in
DR-CAFTA, with a focus on the Dominican Republic and the US. She
indicated that pursuant to DR-CAFTA Chapter 16, countries members of
the International Labor Organization (“ILO”) recognize ILO’s 1998
Declaration on Fundamental Principles and Rights at Work;
specifically, paragraph 5 of the Declaration, which stresses that
labor standards should not be used for protectionist trade purposes.
In her presentation, Dr. Gasso emphasized the procedural guarantees
made by DR-CAFTA’s contracting states, such as adequate access to
local courts, fair, equitable and transparent judicial proceedings,
the dissemination of local labor laws, and the access to public
information. She spoke of the creation of a Council on Labor Matters
pursuant to DR-CAFTA, comprised of representatives from the DR-CAFTA
countries at the ministerial level. The purpose of the Council is to
supervise the implementation of the Trade Agreement and the review of
its scope pertaining to labor matters. She indicated that Chapter 16
of the DR-CAFTA also contained language regarding labor cooperation
and capacity development, and labor consultations.
Dr. Gasso focused on the “Labor Dimension in Central America and the
Dominican Republic: Compliance Reinforcement and Capacity
Improvement”, most commonly known as the White Book. She indicated
that the White Book was drafted by the deputy ministers of trade of
the DR-CAFTA country members, and that it includes the countries’
challenges to fully reach the exercise of labor fundamental rights
pursuant to the ILO. She indicated that the document is followed by
the ILO. The White Book contains information regarding freedom of
association, unions and collective negotiation; strengthening of the
DR-CAFTA member states’ institutional capacity; training of labor
tribunals; gender discrimination in the workplace and labor for
minors; and compliance issues.
Dr. Gasso concluded that DR-CAFTA’s labor clause is The Great Unknown,
and that ignorance of this clause could lead to serious difficulties
in the Dominican Republic regarding access to the benefits of this
Free Trade Agreement. She indicated that the business sector has to be
vigilant so that implementation of the labor clause does not
constitute unfair trade practice in detriment of the Dominican
Republic simply because the Dominican Republic may be in compliance
with many more requisites than the other countries in the region. She
also indicated that tripartism in the labor sector has been key for
conflict resolution in the Dominican Republic, and that it is
essential to continue the dialogue between workers, the business
sector and the government in order to maintain competitiveness and
social peace in the country.
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