The 4th Trade Policy Review of The Dominican Republic (22 and 24 July 2015)
Statement by the Republic of Korea Thank you, Mr. Chairman.
I would like to join the previous speakers in extending a warm welcome to the delegation of the Dominican Republic for its fourth trade policy review, and especially thank Vice Foreign Minister Cesar R. Dargam Espaillat for his comprehensive presentation. My special thanks go as well to Ambassador Estaban B. Conejos Jr. (of Philippines) for his thought- provoking contribution as a discussant and to the Secretariat for its detailed and informative report.
I am pleased to note that Korea and the Dominican Republic have expanded their trade relations over the years, with bilateral trade reaching 348 million US dollars in 2014. With respect to FDI, Korea’s investment to the Dominican Republic amounted to 4.2 million dollars in 2014. Taking these numbers into account, Korea indeed hopes that its economic partnership with the Dominican Republic will continue to grow and develop in the future.
Mr. Chairman, turning to the Dominican economy’s overall performance, I wish to note that, as the Secretariat Report mentioned, it has been successful in overcoming the global crisis. Following the financial crisis, the government was quick to respond with the necessary fiscal and monetary policies to stabilize the economy. Accordingly, the Dominican economy grew rapidly during the review period as the average annual growth rate reached 4.4%, per capita income grew steadily and inward FDI increased nearly 250% compared to the previous review period.
In particular, Korea would like to commend the Dominican Republic for remaining open to the multilateral trading system instead of falling back on protectionism, a “temptation” that history tells us has dire consequences.
Specifically, trade flows of goods and services accounted for approximately two thirds of GDP and tariffs remained relatively low, with an average MFN rate of 7.8% in 2014.
We wish to note that the Dominican open economy has been supplemented by efforts to facilitate trade including the improvement of its risk management systems, the introduction of a computerized import clearance process and the elimination of some authorization requirements. It is clear that the Dominican Republic has been paving the road for further future success and it will be a pleasure for the entire WTO body to see such efforts bear fruits.
Mr. Chairman,
Korea also appreciates the procedural reforms undertaken by the government of the Dominican Republic to improve the management of procurement operations. However, we find there is still progress to be made towards enhancing transparency and promoting competition. According to the current regulations, foreign companies may take part in public works contracts only if they are associated with a Dominican national or if their capital is jointly held. Although the Dominican Republic is not a signatory to the GPA, we encourage it to adopt international standards so as to ensure fair and transparent procurement practices.
Mr. Chairman,
It is also our hope that the Dominican Republic will continue to actively participate in helping not only strengthen the WTO multilateral trading
system as a whole, but also advance the DDA negotiations. With this, I would like to conclude by expressing my sincere appreciation to the Dominican delegation for its hard work and wish the Dominican Republic every success in its TPR. Thank you.
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