The sector has achieved sophisticated production based on an assembly scheme focused on textile garments.
Photo: More than 198,000 workers work in the free trade zones located throughout the country
The free zone sector is increasing its contribution to the Dominican economic, growing more and more despite international geopolitics and only saw a decrease in exports to Haiti, which is the second destination.
Free zones are to be found in the industrial parks located throughout almost the entire country, ranging from assembly lines to sophisticated high value processes. In the 90s, the country was one of the largest exporters of textiles and now it is one of the largest exporters of medical devices and other products involving more intense labor.
As of October this year, exports are growing both on an individual scale and as part of the Free Trade Agreement with the United States and Central America (DR-CAFTA) where sales in value increased by more than 7%.
The Otexa report (The Majors Shippers Reports) indicates that the member countries of the DR-CAFTA increased their exports from free zones by 7.43% and estimate that it will exceed US$8,600 million.
January-October
Similarly, a report prepared for the country’s sector shows that from January to October 2023 versus 2024 sales went from US$6,748.11 million to US$7,628.72 million, a growth of 7.7%, well above exports of national products, under the temporary admission and re-exports schemes.
This performance accounts for 87.6% of exports. The main products are medical devices, tobacco, agriculture and agribusiness, jewelry, plastics and aluminum, paper and cardboard, and copper and their products.
Most of the exports go to the United States and Puerto Rico. Haiti, which is the second destination, saw a drop of 10.24% as of October of this year, due to the current unstable, chaotic conditions there following the assassination of its president Jovenel Moise and gang control.
Given the sector’s performance, economists such as Luis Manuel Piantini, have proposed turning the Dominican economy into a free trade zone, understanding that in addition to attracting investments, the treasury will be able to collect taxes in a less complex way.
According to a press publication, the economist Piantini suggested this mechanism as a way of taxing income.
The local industry sector has also referred to the importance of boosting exportable national production.
Production
In 2023, there were 198,000 employees working in free zones: 51.7% located in the North region, 24.1% in the National District and the province of Santo Domingo, 17.2% in the South and the remaining 6.9% in the East.
820 companies operate in 87 parks, where 1,819 products are manufactured and destined for 143 countries.
According to the sector’s forecasts, this year will close with exports worth US$8,600 million, an amount higher than the US$8,552.7 million recorded in 2023.
Exports amounted to US$7,268.7 million in the first ten months of this year they.
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