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RESTRICTED WT/TPR/S/319 3 June 2015 (15-2897) Page RESTRICTED WT/TPR/S/319 3 June 2015 (15-2897) Page: 1/152 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT DOMINICAN REPUBLIC This report, prepared for the fourth Trade Policy Review of Dominican Republic, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Dominican Republic on its trade policies and practices. Any technical questions arising from this report may be addressed to Mr Angelo Silvy (tel.: 022 739 5249) and Mrs Ana Cristina Molina (tel.: 022 739 6060). Document WT/TPR/G/319 contains the policy statement submitted by Dominican Republic. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Dominican Republic. This report was drafted in English. WT/TPR/S/319 • Dominican Republic - 2 - CONTENTS SUMMARY ........................................................................................................................ 8 1 ECONOMIC ENVIRONMENT ........................................................................................ 12 1.1 Growth, structure and employment ............................................................................. 12 1.2 Fiscal policy ............................................................................................................. 16 1.3 Monetary and exchange-rate policy ............................................................................. 18 1.4 Balance of payments ................................................................................................. 21 1.5 Developments in trade and investment flows ................................................................ 23 1.5.1 Trade in goods ...................................................................................................... 23 1.5.1.1 Composition of trade in goods ............................................................................... 23 1.5.1.2 Direction of merchandise trade .............................................................................. 25 1.5.2 Trade in services ................................................................................................... 27 1.5.3 Foreign direct investment........................................................................................ 28 1.6 Outlook ................................................................................................................... 29 2 TRADE AND INVESTMENT REGIMES ........................................................................... 31 2.1 General legal and institutional framework ..................................................................... 31 2.2 Trade policy formulation and objectives ....................................................................... 32 2.3 International trade relations ....................................................................................... 33 2.3.1 World Trade Organization ........................................................................................ 33 2.3.2 Regional agreements .............................................................................................. 34 2.3.2.1 Agreement between the European Union and CARIFORUM......................................... 37 2.3.2.2 Free Trade Agreement between the United States, Central America and the Dominican Republic (CAFTA-DR) ........................................................................................ 38 2.3.2.3 Free Trade Agreement with Central America............................................................ 39 2.3.2.4 Free Trade Agreement with CARICOM .................................................................... 40 2.3.2.5 Partial Scope Agreement with Panama ................................................................... 40 2.3.3 Other agreements and arrangements ........................................................................ 40 2.4 Foreign investment regime ........................................................................................ 41 2.4.1 Legal and institutional framework ............................................................................. 41 2.4.2 Registration of foreign investment ............................................................................ 42 2.4.3 Restrictions on foreign investment ............................................................................ 42 2.4.4 Foreign investment incentives.................................................................................. 43 3 TRADE POLICIES AND PRACTICES, BY MEASURE ....................................................... 45 3.1 Measures directly affecting imports ............................................................................. 45 3.1.1 Customs procedures and requirements ..................................................................... 45 3.1.2 Customs valuation ................................................................................................. 47 3.1.3 Rules of origin ....................................................................................................... 48 3.1.4 Tariffs .................................................................................................................. 49 3.1.4.1 Tariff structure ................................................................................................... 50 3.1.4.2 Tariff bindings .................................................................................................... 50 WT/TPR/S/319 • Dominican Republic - 3 - 3.1.4.3 Tariff concessions ................................................................................................ 51 3.1.4.4 Preferential tariffs ............................................................................................... 52 3.1.4.5 Tariff quotas ....................................................................................................... 53 3.1.5 Other charges affecting imports ............................................................................... 53 3.1.5.1 Customs service fee ............................................................................................ 54 3.1.5.2 Tax on the transfer of industrialized goods and services (ITBIS)................................. 54 3.1.5.3 Selective consumption tax (ISC) ........................................................................... 55 3.1.5.4 Tax on products from free zones ........................................................................... 55 3.1.6 Import prohibitions, restrictions and licensing ............................................................ 56 3.1.6.1 Prohibitions ........................................................................................................ 56 3.1.6.2 Import permits and licences ................................................................................. 56 3.1.7 Anti-dumping, countervailing and safeguard measures ................................................ 58 3.1.7.1 Regulatory framework ......................................................................................... 58 3.1.7.2 Anti-dumping and countervailing measures ............................................................. 59 3.1.7.3 Safeguard measures ............................................................................................ 60 3.1.8 Standards, technical regulations and conformity assessment procedures ........................ 62 3.1.8.1 Legal and institutional framework .......................................................................... 62 3.1.8.2 Preparation and application of standards, technical regulations and conformity assessment procedures..................................................................................................... 63 3.1.8.2.1 Standards ....................................................................................................... 63 3.1.8.2.2 Technical regulations ........................................................................................ 63 3.1.8.2.3 Conformity assessment and certification .............................................................. 64 3.1.8.2.4 Notification to the WTO ..................................................................................... 64 3.1.8.3 Labelling and marking .......................................................................................... 65 3.1.8.4 Sanitary registration ............................................................................................ 65 3.1.9 Sanitary and phytosanitary measures ....................................................................... 66 3.1.9.1 Legal and institutional framework .......................................................................... 66 3.1.9.2 Types of measure and application .......................................................................... 67 3.1.9.3 Risk analysis and conformity assessment ................................................................ 68 3.1.9.4 Notifications to the WTO ...................................................................................... 69 3.2 Measures directly affecting exports ............................................................................. 69 3.2.1 Export procedures and requirements ........................................................................ 69 3.2.2
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