1. Opportunities for Dominican Republic Products in CARICOM Markets
Agroalimentaria 2017
Opportunities for Dominican Republic Products in CARICOM Markets

2. Presentation Outline CARICOM-DR Trade Relationship
Opportunities for DR Agro-Processed Products in CARICOM
Issues Affecting Trade in Agro-Processed Goods
Possible Trade Limitations for DR Exporters
Main Recommendations

3. CARICOM – DR Trade Relationship
CARICOM and the Dominican Republic signed a free trade agreement in 1998 (CARICOM-DR FTA), which includes the free access to goods, the establishment of rules of origin, and the preservation and promotion of investment between the parties.
In 2015 total trade between Dominican Republic and CARICOM was approximately USD $1.8 billion
More than USD $ 0.5 billion trade balance in favor of the Dominican republic
Agro-processed goods account for 21% of total CARICOM-DR trade

4. CARICOM-DR Trade Relationship
Top agro-processed products exported from DR to CARICOM
condiments, flour, beverages and spirits, pastries, vegetable fats and oils, vegetables, cereals, sausages, Bananas and plantains (fresh or dried), rice and live poultry, sugar confectionery, fruits and nuts etc.
Top agro-processed products exported from CARICOM countries to the DR
Cereals, nuts fresh or dried, coconut oils, rice, cane/beet sugar, sugar confectionaries , unmanufactured tobaccos, pasta, margarines (animal and vegetable fats), frozen fish, pastry, breads and cakes and condiments
All products
Agro-processed goods
Miscellaneous edible preparations
Beverages, spirits and vinegar
Preparations of vegetables, fruit, nuts or other parts of plants
Preparations of cereals, flour, starch or milk; pastrycooks' products
Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates
Tobacco and manufactured tobacco substitutes
Residues and waste from the food industries; prepared animal fodder
Sugars and sugar confectionery
Cocoa and cocoa preparations

5. CARICOM’s Imports of Agro-Processed Goods by Country

6. DR Agro-processed exports to CARICOM by Importing Country - 2015

7. Opportunities for DR Agro-Processed Products in CARICOM
These products represent the fastest growing DR Exports to CARICOM:
Undenatured ethyl alcohol < 80% and other spirits
Waters, incl. mineral waters
Cigars, Cigarettes of tobacco or of tobacco substitutes
Meat - excluding sausages and similar products
Ciders and other fermented beverages
Preparations of a kind used in animal feeding
Cocoa powder, not containing added sugar or other sweetening matter
Sauces, mixed seasonings and mixed condiments
Cereal products

8. Issues Affecting Trade in Agro-Processed Goods
Value chains are characterized by a large number of small operators (few economies of scale), resistant to strategic partnerships
Productive inefficiencies
Lack of adequate market intelligence
High transportation cost
Difficulty meeting food quality and safety requirements
Inadequate business support services
Given the small size of firms they are unable to benefit from economies of scale and as such have a higher per unit cost, hence they are less competitive
With notable exceptions in a few countries (Jamaica, Dominican Republic, Belize), the production output for the non-staple agro-products remain small, seasonal, and of unreliable quality.
because of weak managerial capacities, shortage of suitably trained production and technical personnel, cost of primary factors, inadequate production methods, and obsolete technology/ equipment.
in terms of inadequate infrastructures (roads, post-harvest facilities, border transit facilities…), insufficient research and development institutions for food processing, as well as non-harmonized and partial sectorial strategies, trade policies, and financial support measures. The latter weaknesses are found both at country and at regional levels. In each country, banks and financial operators are offering loans to SMEs however, the conditions for eligibility (collateral, cost of application, interest) are turning away most applicants. This is particularly verified in Guyana, Haiti, St Lucia, and to a lesser extent to Suriname.
Efforts to reform the business environment and increase regional competitiveness have led to some Caribbean economies’ improved ranking on the World Bank’s Doing Business Report Jamaica (64 in the global ranking), Saint Lucia (77) and Trinidad and Tobago (88) have witnessed the highest rankings in the region. Despite this improvement for a few countries, the regional average still lingers at 108 out of 189 countries.

9. Possible Trade Limitations for DR Exporters in CARICOM Markets
Non – tariff barriers
High Transportation costs
Cultural and idiomatic differences between the Dominican Republic and CARICOM countries
Lack of knowledge of the import/export process and of the available products for trade by both parties.
High administrative costs on both sides
The Dominican Republic applies import restrictions to certain products to protect human animal and plant health, as well as for environmental reasons, in accordance with its domestic law or international commitments.

10. The main recommendations:
SMEs need to make their product and services offers known regionally
Businesses need to ensure their products comply with all types of regulations and they need to obtain all necessary licenses for trade
Both sides need to develop a roadmap towards import permits, certifications and licenses process for intra- regional trade which will allow SMEs to better understand and execute the regulatory framework.