Productive sectors

The manufacturing sector is comprised by the production of sugar refineries, non-sugar industries (rum, oil, cigarettes, beer, pasta, cement, paint, and rods, among others), and industrial free trade zones. This sector has undergone significant changes of great economic importance for the country. Since the 1970’s the manufacturing sector represents an average of approximately 18% of total national production.

Sugar and Non-Sugar Industry

Although the production of sugar has traditionally been one of the main economic activities of the DR, its contribution to the GDP has diminished in past decades. Nowadays, the pillar of the manufacturing sector, along with free trade zones, is the local non-sugar industry including rum, beer, pasta, cigarettes, paint, rods, cement, rice, coffee, and pasteurized milk, among others. The growth of these products has been primarily due to growth in the Construction and Tourism sectors, as well as the insertion of foreign products into the Dominican market, which have forced an increase in national competitiveness.

Free trade zones are a very significant production line in the Dominican economy today, representing one of the main sources of employment and reserves for the DR. According to the Dominican Association of Free Trade Zones, in 2004 the manufacturing sector of the DR employed some 185,000 people in 58 industrial parks with more than 550 operating businesses. In turn, the National Counsel of Free Export Zones affirms that the sector has progressed so significantly that its growth has doubled once and again compared to the data for the same from the beginning of the 1990’s.

Between 1993 and 2004 27 new industrial parks containing 107 new businesses and employing more than 25,000 people were established in the DR. In this same period, the value of exports grew from $2,511.08 million DR pesos to reach $4,416.45.

The main activities of free trade zones in the DR as of 2004 are textile production (48%) and electronic manufacturing (13%). Free trade zones are also involved in the manufacture of footwear, tobacco, pharmaceutical products, and jewelry (among others).

Free trade zones, which are favored by the Caribbean Basin Initiative promoted by the United States, was originally oriented towards the production of textiles. Nowadays, given the challenges presented by the loss of quotas in the US market due to Asian and Central American competition, free trade zones have reoriented the advantages derived from the entrance in force of the Central American Free Trade Agreement (CAFTA/US/DR), which was approved in August of 2004 to take effect in 2006.

On the other hand, is important to emphasize that in 2005 the DR was affected by the end of the FTA with the United States, which negatively affected industrial free trade zones.

• Dominican Association of Free Zones
  
• National Council of Free Export Zones
  
• Center for Imports and Exports of the Dominican Republic