ࡱ> q 7bjbjt+t+ 4AA]v:T8˗~~:$\80$ochhh~h<hj  6H0ޖTrade policy regime: framework and objectives Introduction Since its last Review in 1996, the Dominican Republic has continued the reform and liberalization of its policy regime initiated in the early 1990s. The Dominican Republic's trade and investment policy has sought to promote, facilitate, and consolidate its integration in the international economy. The main comprehensive reforms carried out during the last years include new legislation on foreign investment, tariffs and customs procedures, export promotion, telecommunications, electricity, and intellectual property. Trade policy is primarily conducted by the Ministry of Foreign Affairs. The Dominican Republic became a Member of the ϲʹ in March 1995; the ϲʹ Agreements take precedence over domestic legislation. The Dominican Republic participates actively in the multilateral trading system; it took part in the extended negotiations on agriculture and financial services and in the Negotiating Group on Basic Telecommunications. It has ratified the Fourth Protocol (on telecommunications) to GATS but ratification of the Fifth Protocol (on financial services) was still pending in mid 2002. The Dominican Republic has not been directly involved in any ϲʹ dispute settlement cases. Along with its participation in the multilateral system, it has increasingly sought to foster regional economic integration; in 1998 it concluded its first free-trade agreements, with the Caribbean Community (CARICOM) and the Central American Common Market (CACM). Trade Policy Formulation and Implementation General legal and institutional framework The Constitution, promulgated on 14 August 1994, defines the Government of the Dominican Republic as being democratic, republican, and representative. The exercise of power is divided among the executive, legislative, and judicial branches. Executive power is exercised by the President of the Republic who, together with the Vice-President, is elected through direct vote for periods of four years, but without possibility of re-election for consecutive terms. The President is the Head of the State and the Government as well as the public administration, and is assisted by a cabinet of ministers designated by him. The next presidential elections are scheduled for May 2004. The 31 provinces and the National District each has a Governor designated by the Executive, a Mayor, and at least five municipal advisors. Legislative power is vested in the National Congress, composed of two chambers: the Senate, which has 32 members with one senator for each province; and the Chamber of Deputies, composed of 149 members. The members of both chambers are elected through direct majority vote for periods of four years. Since 1994 legislative election takes place separately from presidential election. Judicial power is exercised by numerous Courts of First Instance, nine Courts of Appeal, a Lands Tribunal, Labour Courts, and the Supreme Court of Justice, which works as an appeals court for all judgements rendered by judicial courts. The Supreme Court is formed of nine judges designated by the National Council of Magistrates, an institution created by the 1994 constitutional reform to ensure the independence of the judicial branch. There are also separate administrative and military courts and political impeachment procedures. Laws may be proposed by senators, deputies, the President, and, in judicial or electoral matters, by the Supreme Court of Justice or the Central Electoral Commission. All bills are subject to two readings in each chamber before approval by the President, after which they are promulgated and published. Trade policy objectives and formulation In the context of information provided for this Review, the authorities indicated that the Dominican Republic's foreign trade policy is part of the general development policy designed to achieve higher standards of living for all Dominicans through economic and social development. Dominican foreign trade policy follows a number of objectives, the most important being: stimulating efficiency and competitiveness of national producers; reducing the level of effective protection and any existing anti-export bias in the tariff structure; and fostering regional economic cooperation. Trade policy formulation is under the responsibility of the Executive, with the Ministry of Foreign Affairs being the lead agency. Other entities involved in the formulation of trade policy include the Central Bank and the Ministries of Industry and Trade, Agriculture, and the Presidency. The Dominican Centre for Export Promotion and the National Council for Free Trade Zones are involved in the implementation of trade or trade-related policies. The authorities indicated that the creation of an institution that would encompass all trade-related responsibilities, under consideration at the time of the Dominican Republic's previous Review, was still under study. The Executive is supported in its decision-making process by the Commission for National Trade Negotiations, described below. Decree No. 74-97 of 10 February 1997 established the Commission for National Trade Negotiations as the institution responsible for the Dominican Republic's bilateral and multilateral trade negotiations. The Commission, which is headed by the Ministry of Foreign Affairs, is composed of representatives from public and private institutions. Participants from the public sector include: the Ministries of Agriculture, Foreign Affairs, Industry and Trade, Finance, Tourism, and the Presidency; the Central Bank; the Dominican Centre for Export Promotion; and the Directorate-General of Customs. Civil society organizations, which express their views on trade policy in this Commission, include the Dominican Industry Association, the Dominican Exporters Association, the Chamber of Commerce, and the Association of Dominican Agro-enterprises. According to the authorities, the Commission's work is based on the principles of transparency and open participation of civil society organizations. The authorities also emphasized that the work of this Commission had brought with it a greater coherency of trade policy formulation. The Customs Reform Law (Law No. 146-00) of 27 December 2000 established a Commission of Tariff Analysis, which is in charge of elaborating recommendations on tariff issues to the Executive. The Commission is composed of representatives of the Minister of Finance, who presides it; the Ministries of Industry and Trade, Agriculture, and the Presidency; and the Directorate-General of Customs. The Commission takes its decisions by simple majority. Decree No. 123-01 of 23 January 2001 established the National Council of Foreign Trade, and gave it responsibility for making recommendations to the Executive in the field of export promotion, free-trade zones, foreign investment, contingency measures, and trade negotiations. The authorities indicated that this Council was inoperative as at June 2002. Main trade laws and regulations The Constitution takes precedence over all other laws. International agreements must be signed by the President and ratified by Congress. Once entered into force, international agreements rank below the Constitution, but above domestic legislation. The principal laws and regulations governing foreign trade are listed in Table II.1. Table II.1 Main laws and regulations relating to foreign trade, May 2002 Name or descriptionDomestic statuteDate of issueGeneral legislation Constitution of the Dominican Republicn.a.14.8.1994Foreign Investment LawLaw No. 16-9524.10.1995Commercial Code..4.7.1882Regulations on the Foreign Investment LawDecree No. 380-9628.8.1996Modification to Regulations on the Foreign InvestmentDecree No. 163-9731.03.1997Creation of Commission for National Trade NegotiationsDecree No. 74-9710.2.1997Law on Customs DutiesLaw No. 150-977.7.1997Customs Reform LawLaw No. 146-0027.12.2000Tax Reform LawLaw No. 147-0027.12.2000Creation of National Council of Foreign TradeDecree No. 123-0123.1.2001Law on Unfair Trade Practices and Safeguard Measures..11.12.2001Preferential trade agreementsCentral America Dominican Republic Free Trade Agreement....CARICOM Dominican Republic Free Trade Agreement....Customs proceduresCustoms LawLaw No. 348912.2.1953Creation of One-stop Export OfficeDecree No. 248-989.7.1998Introduction of Single Export FormDecree No. 646-9623.12.1996Regulations on Merchandise Re-exportsDecree No. 106-9616.3.1998Regulations on Customs ValuationDecree No. 667-01..Tax and tariff concessionsFree Trade Zone Law Law No. 8-9015.1.1990Regulations for the Free Trade Zone LawDecree No. 366-9729.8.1996Export Promotion LawLaw No. 84-996.8.1999Regulations on the Export Promotion LawDecree No. 213-0122.5.2000Promotion of Border Area through Tariff ExemptionsLaw No. 28-011.2.2001Law establishing the San Pedro de Macors Free Trade ZoneLaw No. 117-0128.6.2001Creation of Mining Industry Parks Decree No. 947-0119.09.2001Government procurementLaw on Government ProcurementLaw No. 29530.6.1966Regulations on Public Procurement and Contracts Decree No. 262-9810.7.1998Technical requirements, rules and standardsElimination of Non-tariff BarriersDecree No. 114-9816.3.1998Law on Standardization and Quality SystemsLaw No. 60220.5.1976Law on the Environment and Natural ResourcesLaw No. 64-0018.8.2000Sanitary and phytosanitary standardsLaw on Plant HealthLaw No. 499028.8.1958Law on Animal HealthLaw No. 403012.1.1955Health LawLaw No. 42-017.2. 2001Intellectual propertyCopyrights LawLaw No. 65-0026.7.2000Industrial Property LawLaw No. 20-0010.5.2000 .. Not available. n.a. Not applicable. Source: Information provided by the Dominican authorities. No basic trade law exists per se in the Dominican Republic. To align its legislation with Uruguay Round commitments, the Dominican Republic introduced new legislation in areas such as customs valuation and intellectual property (Chapter III). International Relations World Trade Organization The Dominican Republic acceded to the GATT in 1950 and became a Member of the ϲʹ in March 1995 after the approval by Congress of the Marrakesh Agreement through Decree No. 2-95 of 20 January 1995. As an international treaty, the ϲʹ Agreements take precedence over domestic legislation and may be invoked before domestic courts. The Dominican Republic grants at least MFN treatment to all its trading partners. Table II.2 shows the notifications made by the Dominican Republic under the various ϲʹ Agreements. Table II.2 Dominican Republic's notifications under the ϲʹ Agreements, May 2002 Instrument imposing obligationϲʹ document date (latest document if recurrent)Description of requirementAgreement on AgricultureArticle 9.1G/AG/N/DOM/3 5.4.01Table ES.1 Export subsidiesArticle 18.2G/AG/N/DOM/4 12.4.01Table DS.1 Domestic SupportArticle 18.2G/AG/N/DOM/5 4.2.02Table MA.2 Tariffs and other quotasAgreement on Implementation of GATT Article VI (Anti-dumping)Article 16.4G/ADP/N/4/Add.1/Rev.1 11.10.01Semi-annual reportsArticle 18.5G/ADP/N/1/DOM/2 21.7.95Incorporation of the Agreement into national legislationArticle 18.5G/ADP/N/1/DOM/3 22.5.02Laws and regulationsAgreement on Implementation of GATT Article VII (Customs Valuation)Annex III(1)G/VAL/N/1/DOM/1 10.7.01Strengthening of customs operationsAnnex III(1)G/VAL/22 10.3.00Request for moratoriumAnnex III(2)G/VAL/N/4/DOM/1 10.10.00Progress in applicationAgreement on Import Licensing ProceduresArticles 1.4(a) and 8.2.(b)Yet to be notifiedLaws and regulationsArticle 7.3Yet to be notifiedReplies to questionnaireAgreement on Preshipment InspectionArticle 5Yet to be notifiedLaws and regulationsQuantitative Restrictions (Decision on Notification Procedures for Quantitative Restrictions)ϲʹ document G/L/59G/MA/NTM/QR/1 1.3.96Initial and biennial reportsAgreement on Rules of OriginArticle 5 and Annex II(4)G/RO/N/9 19.4.96 Non-preferential and preferential rulesArticle 5 and Annex II(4)Rules of origin of FTAs with CARICOM and CACM yet to be notifiedAgreement on SafeguardsArticle 12.6G/SG/N/1/DOM/1 2.11.95Laws and regulationsArticle 12.6G/SG/N/1/DOM/2 22.5.02Laws and regulationTable II.2 (cont'd)Agreement on the Application of Sanitary and Phytosanitary MeasuresArticle 7, Annex BG/SPS/DOM/1 14.4.97One notification on changes and emergency measuresGeneral Agreement on Trade in Services (GATS)Article III:4S/ENQ/78/Rev.1 5.10.01National enquiry pointUnderstanding on the Interpretation of Article XVII (State Trading)Article XVII(4)(a)Yet to be notifiedState-trading activitiesAgreement on Subsidies and Countervailing MeasuresArticle 25.1G/SCM/N/3/DOM 21.3.96Annual report on subsidiesArticle 25.11G/SCM/N/47/Add.1/Rev.5 26.4.01Semi-annual report on countervailing duty actionsArticle 25.12Yet to be notifiedCompetent authoritiesArticle 27G/SCM/N/71/DOM 6.03.2002Replies to questionnaireArticle 27.4G/SCM/N/74/DOM 8.01. 2002Request for programme extensionArticle 32.6G/SCM/N/1/DOM/1 19.7.95Laws and regulationsArticle 32.6G/SCM/N/1/DOM/2 22.5.02Laws and regulationsAgreement on Technical Barriers to TradeArticle 10G/TBT/ENQ/19 - 26.9.2001National enquiry pointArticle 15.2Yet to be notifiedMeasures taken to implement the AgreementAnnex 3CG/TBT/CS/N/87 13.1.98Notification of acceptance of code of good practiceAgreement on Textiles and ClothingArticle 2.17G/TMB/N/268 22.7.1997Administrative arrangement with the United StatesArticles 2.6 and 2.7(b)G/TMB/N/43/Add.3 18.12.1997List of products to be included in the first stage of the integration processArticles 2.8 (a) and 2.11G/TMB/250/Add.3 18.12.1997List of products to be included in the second stage of the integration processArticles 2.8(b) and 2.11G/TMB/N/386/Rev.1 2.5.01List of products to be included in the third stage of the integration processArticle 6:1G/TMB/N/17 6.3.95Retention of right to use transitional safeguardsAgreement on Trade-Related Aspects of Intellectual Property RightsArticle 63.2IP/N/1/DOM/1 9.5.96Laws and regulationsArticle 69IP/N/3/Rev.5 6.7.01Contact pointsArticle 63.2IP/N/1/DOM/C/1 30.4.02Laws and regulationsArticle 63.2IP/N/1/DOM/C/2 30.4.02Laws and regulationsArticle 63.2IP/N/1/DOM/I/1 30.4.02Laws and regulationsArticle 63.2IP/N/1/DOM/I/2 30.4.02Laws and regulations Source: ϲʹ Secretariat. The Dominican Republic has not been directly involved in any ϲʹ dispute settlement cases, either as complainant or defendant. However, the Dominican Republic has reserved its third-party rights on two occasions, concerning the importation of bananas to the European Union and of textiles to the United States. In the ongoing ϲʹ negotiations on agriculture, the Dominican Republic, together with other developing countries, submitted three proposals on special and differential treatment, green box measures, and on market access. The first proposal underlines the importance of special and differential treatment for developing countries in agricultural trade policies and calls for the establishment of a development box with policy instruments that aim to protect and enhance developing countries' food production capacity. The proposal further suggests exempting food staples from liberalization and encouraging domestic production capacity of developing countries to become more competitive. The second proposal identifies various perceived problems and shortcomings of the Green Box and recommends aggregating all domestic support categories into one 'general subsidies' box with a set of criteria to spell out what should make up the programmes legal within this one box. Furthermore, it suggests that the Due Restraint Clause protecting Green Box subsidies from challenge should be a special and differential treatment provision that protects developing countries in their efforts to increase food security, ensure rural employment and increase domestic production capacity. In the third proposal, on market access, the Dominican Republic calls for the elimination of tariff peaks and tariff escalation, increased tariff quotas, the simplification of complex and non-transparent tariffs, and the reduction of export subsidies and domestic support. The Dominican Republic participated in the Negotiating Group on Basic Telecommunications; the Fourth Protocol to the General Agreement on Trade in Services was adopted with the enactment of the Telecommunications Law (Law No. 153-98) of 27 May 1998. Ithas not acceded to the Information Technology Agreement (ITA). The Dominican Republic participated in the extended negotiations on financial services, and is in the process of ratifying the Fifth Protocol to the General Agreement on Trade in Services. At the ϲʹ Ministerial Conferences in Singapore and Geneva, the Dominican Republic expressed concerns about the lack of implementation of commitments in sectors important to its interests. It underlined the importance of assessing the problems faced by developing countries and their ability to benefit from their rights under the Uruguay Round Agreements. It argued for cautious use of transitional safeguards in the area of textiles, which should not be used without justification against countries that benefited from preferential tariff reductions. In the context of the preparations for the 1999 Ministerial Conference in Seattle, the Dominican Republic, together with El Salvador and Honduras, tabled a proposal for a GATS annex on tourism. This was considered necessary in order to better deal with the specific and heterogeneous nature of tourism as a cluster and to monitor progressive liberalization and compliance with commitments undertaken under tourism and travel-related service. At the Seattle Ministerial Conference, in line with the statements made by other developing countries, the authorities reaffirmedtheir position to resolve implementation issues in areas of major interest to developing countries. Agriculture should be made subject to the same rules that govern trade in other goods,with the aim of eliminating the subsidies granted by developed countries. Members should ensure consistency between domestic policies and multilateral commitments, by eliminating unilateralism and extraterritoriality as well as equally pernicious conditions imposed on preferential market access. At the Doha Ministerial Conference in 2001, the Dominican Republic called upon the Organization to appropriately take into account the concerns of developing countries. In the case of agriculture, issues such as tariff peaks, tariff escalation, subsidies or export credits should be addressed. Outlining the importance of free-trade zones in its economy, the Dominican Republic underlined its view of the need to extend, under Article 27.4 of the Agreement on Subsidies and Countervailing Measures (on Special and Differential Treatment), the transition period for free-trade zones until 2018. The Ministerial Conference directed the Committee on Subsidies and Countervailing Measures to extend the transition period under this Article for certain export subsidies provided by Members. Following the Doha Ministerial Conference, the Dominican Republic, together with other developing countries, tabled a proposal on the establishment of the Trade Negotiations Committee (TNC), which includes suggestion in relation to the setting up and operation of the TNC and its related bodies. Since January 1999, the Dominican Republic has participated in 25 ϲʹ technical cooperation activities. The projects and seminars covered a wide range of ϲʹ-related issues, including customs valuation, multilateral negotiation training, competition policy, dispute settlement, and general training courses for government officials. Preferential agreements Since the Dominican Republic's last Review in 1996, the authorities have sought to strengthen regional ties by concluding the Dominican Republic's first free-trade agreements, with the Central American Common Market (CACM) and with the Caribbean Community (CARICOM). The Dominican Republic has not concluded any Partial Scope Agreements under the Latin American Integration Association (LAIA). Free Trade Agreement with the CACM In April 1998, the Dominican Republic concluded its free-trade agreement with the CentralAmerican Common Market, composed of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. The agreement was ratified by Congress in March 2000 and entered into force in October2001, but its application in relation to Nicaragua was still pending as at June 2002. The agreement establishes rules and disciplines for trade in goods and services, investment, intellectual property, government procurement, and dispute settlement. Rules of origin are based on the change of tariff classification principle, but specific requirements apply in some cases. This agreement absorbed preferences granted under a former agreement with Costa Rica, covering 52 tariff items. According to data from the Dominican Centre for Export Promotion, in 1999 the Dominican Republic's foreign trade volume with CACM countries amounted to US$62.9 million or 1% of total foreign trade. The agreement eliminated most tariffs, exceptions include: (i) products for which a programme of mutual phased reductions until 2004 was agreed, (ii) products subject to a 15% tariff that is not subject to further reductions, and (iii) products completely excluded from liberalization. The group of products subject to a gradual tariff reduction includes bovine and pork meat, crawfish, unconcentrated milk, serums and vaccines, various synthetic and plastic products, and tomatoes. The list of products subject to a tariff of 15% includes mainly various oils and fats. Products excluded from liberalization include alcoholic beverages, beans, coffee, garlic and onions, various petroleum products, poultry meat, powdered milk, rice, sugar, tobacco products and wheat flour. The Dominican Republic has formally asked to be part of the proposed U.S.-Central America Free Trade Agreement. This reflects concerns that the country's apparel industry could be placed at a disadvantage if Central America concludes a separate FTA with the United States. Free Trade Agreement with CARICOM The free-trade agreement between the Dominican Republic and CARICOM was signed in August 1998 and ratified by Dominican Congress in January 2000. After additional negotiations on the products to be excluded from preferential treatment and on rules of origin, the Protocol for the Implementation of the Agreement was signed in April 2000. A Joint Council comprising representatives of both parties is responsible for the administration of the agreement. The agreement entered into force in December 2001, but according to the Dominican authorities does not yet apply to trade with Guyana and Surinam (July 2002). The agreement does not cover trade with Haiti, which joined CARICOM only after negotiations for the Agreement had already begun. Under this FTA, the Dominican Republic and five Caribbean countries (Barbados, Guyana, Jamaica, Suriname, and Trinidad and Tobago) have committed themselves to phasing out duties by 2004. The smaller Eastern Caribbean countries and Belize are granted free access to the Dominican market, but reciprocity is postponed until 2005. Since 1990 the Dominican Republic has also had observer status with CARICOM. The protocol implementing the agreement establishes a negative list of goods that continue to be subject to MFN treatment. These products include: beans, cement, coconuts, sugar, dairy products, fats and oils, fish, fruit juice, garlic and onions, meat, rice, various steel products, tobacco products, and wheat flour. In addition, imports of various agricultural products to the DominicanRepublic are subject to seasonal quotas. According to Central Bank data, Dominican merchandise imports from CARICOM countries (excluding Haiti) amounted to US$53 million or 0.6% of total imports in 2000, while the DominicanRepublic exported goods to these countries for US$28 million, or 0.5% of its total exports. Among the countries covered by this FTA, Trinidad and Tobago and Jamaica are the DominicanRepublic's most important trading partners. The authorities indicated that the FTA with CARICOM would allow the parties to work with common positions in the next round of negotiations of the Cotonou Agreement with the EuropeanUnion, scheduled for September 2002. Other agreements The Dominican Republic also participates in the negotiating groups of the Free Trade Area of the Americas (FTAA). The FTAA process, which began in 1994, seeks to eliminate progressively barriers to trade and investment, with negotiations to be completed no later than January 2005. At the sixth ministerial meeting in 2001, ministers directed that these negotiations should begin no later than May 2002 and that the agreement should enter into force no later than December 2005. Ministers also agreed to release to the public the existing draft consolidated text of the agreement. The Dominican Republic currently holds the vice-chair of the Negotiating Group on Intellectual Property Rights. The Dominican Republic is a member of the Association of Caribbean States (ACS). The primary objectives of the ACS are the adoption of programmes to increase and consolidate the economic relations between its members, as well as the development of strategies that increase their comparative advantages. The ACS Special Committee on Trade Development and External Economic Relations fosters cooperation and integration by uniting the efforts of member countries to build and consolidate an enhanced economic space for trade and investment in the Greater Caribbean. Important areas of action are the promotion of understanding and the convergence of positions in areas of mutual interest within the major negotiation processes like the ϲʹ and the FTAA, particularly with respect to the treatment of small economies. That work includes studies on the possible measures that could be taken to implement special and differential treatment and to clearly define the concept of a small economy. Other arrangements In addition to negotiated preferences, the Dominican Republic enjoys unilateral concessions granted by various countries under the Generalized System of Preferences (GSP), the European Union's Cotonou Convention, and the United States' Caribbean Basin Initiative (CBI) (ChapterIII(3)(vii). These schemes are outlined in detail in the Secretariat Reports for the Trade Policy Reviews of the Members granting them. The CBI, enhanced by the Caribbean Basin Trade Partnership Act (CBTPA), is by far the most important preferential scheme granted to the Dominican Republic. It covers 24 Caribbean and Central American countries, regulating their trade with the United States under a preferential non-reciprocal agreement established unilaterally by the United States. Combined exports under the CBI and the CBTPA amounted to nearly US$2.4 billion in 2001. The Dominican Republic benefits from these schemes mainly through the export of textiles, footwear, and cigars and cigarettes. The Cotonou Convention grants preferential access to the European Union of certain Dominican products, mainly agricultural goods, textiles, and electronic components. According to figures provided by the Dominican Centre for Export Promotion (CEDOPEX), Dominican exports under this regime amounted to US$125.3 million in 1999, the most recent year for which figures were available. As a developing country, the Dominican Republic is a beneficiary of the Generalized System of Preferences. It is granted GSP preferences by: Australia, Bulgaria, Canada, the Czech Republic, the European Union, Hungary, Japan, NewZealand, Norway, Poland, Russia, the Slovak Republic, Switzerland, and the United States. According to data provided by CEDOPEX, Dominican exports under the GSP amounted to US$60.9 million in 1999; European countries were the most important market. The Dominican Republic does not participate in the Global System of Trade Preferences among Developing Countries. The Dominican Republic is a member of the African, Caribbean and Pacific Group of States (ACP Group). The authorities noted that the Dominican Republic has presided ACP summits of heads of state and government since 1999 and was coordinating its activities at the ambassador level in Geneva in 2002. The Dominican Republic is a member of the International Coffee Organization and the International Sugar Organization. Foreign Investment Regime The Dominican Government considers foreign investment an effective means of ensuring the integration of the Dominican economy into the global economy and of helping to improve of its competitiveness. Since the Dominican Republic's last Review, the main change in the investment regime has been the enactment of a new law governing foreign direct investment. The Foreign Investment Law (Law No. 16-95) of 20 November 1995 and its Regulations (Decree No. 380-96, modified by Decree No. 163-97) opened previously restricted areas to foreign investors and eliminated restrictions on capital and profit remittances. With only a few exceptions, the Law accords national treatment to foreign investors. Pursuant to the Foreign Investment Law, foreigners may invest in all areas of the Dominican economy, except for the following: disposal of toxic, dangerous or radioactive waste not produced in the country; activities affecting public health or the Dominican Republic's environment; and production of materials and equipment directly linked to national defence and security. Further exceptions to national treatment remain in maritime transport and radio broadcasting under sector-specific legislation. The authorities indicated that no special taxation rules apply to foreign-owned enterprises. Within 90 days of making an investment, a foreign company or investor must register the investment with the Central Bank for statistical purposes, and submit the following documents: an application for registration, highlighting information on the invested capital and the area of the investment; proof of entry into the country of the foreign capital or physical or tangible goods; and documents of commercial incorporation or the authorization of operation of a branch office through the setting up of legal domicile in the country. Within ten days of receipt of the necessary documentation, the Central Bank will issue a registration certificate. Foreign investors can freely remit, without prior authorization from the Central Bank, the total amount of invested capital, dividends, and fees from technological transfers and royalty contracts. Registration of foreign investment in the free-trade zones is through the National Council for Free Trade Zones. The Office for the Promotion of Investment in the Dominican Republic (OPI-RD), created by Decree No. 109-97 of 27 February 1997 and modified by Decree No. 1180-01 of 14 December 2001, is a government entity responsible for the promotion of foreign direct investment. The Office provides advice and practical assistance to national and international investors. Investment is subject to various environmental requirements. If a foreign investment is susceptible to affecting the eco-system, the investor must submit a certificate from the competent ministry or agency describing the manner in which any damage to the environment will be repaired. Pursuant to the Law on the Environment and Natural Resources (Law No. 64-00) of 18August 2000, the production, transport, and commercialization of explosive, harmful, inflammable, radioactive, toxic, or otherwise dangerous substances require the presentation of an environmental impact evaluation; the Law also establishes the procedures for the impact evaluation. The Dominican Republic has bilateral investment agreements in force with Argentina, Chile, the members of the Caribbean Community, the members of the Central American Common Market, China, Cuba, Ecuador, Finland, and Spain as well as double taxation agreements with Canada and the United States. Further bilateral investment agreements have been or are being negotiated, but are not yet in force, with Canada, Columbia, Denmark, France, Germany, Israel, Italy, Korea, Morocco, the Netherlands, Norway, Panama, Peru, Sweden, Switzerland, the United Kingdom, and the United States. In addition, the Dominican Republic is a member of the Multilateral Investment Guarantee Agency (MIGA) and of the Overseas Private Investment Corporation (OPIC). It has ratified the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which entered into force on 11 July 2002. In March 2000, the Dominican Republic signed the Convention on the Settlement of Investment Disputes between States and Nationals of other States. It has also signed, but not ratified the Inter-American Convention on International Commercial Arbitration.  ϲʹ documents WT/DS16/4, 24 October 1995, WT/DS27/2, 28 February 1996, WT/DS85/8, 25June 1997, WT/DS151/2, 8 December 1998, WT/DS165/2, 15 March 1999, and WT/DS200/5, 26 June 2000.  ϲʹ documents G/AG/NG/W/13 and G/AG/NG/W/14, 23 June 2000, and G/AG/NG/W/37, 28September 2000.  ϲʹ documents WT/MIN(96)/ST/24, 9 December 1996, and WT/MIN(98)/ST/117, 20 May 1998.  ϲʹ document WT/GC/W/372, 14 October 1999.  ϲʹ document WT/MIN(99)ST/42, 1 December 1999.  ϲʹ document WT/MIN(01)/ST/61, 11 November 2001.  ϲʹ document G/SCM/N/74/DOM, 8 January 2002.  ϲʹ document WT/MIN(01)/17, 20 November 2001.  ϲʹ document WT/GC/58, 21 December 2001, and TN/C/W/2, 29 January 2002.  The text of both agreements may be found in CEDOPEX online information. Available at: http://www.cedopex.gov.do/.  Caribbean and Central America Report, 19 February 2002, p. 3.  The following countries are CARICOM members: Antigua and Barbuda, the Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago.  Information on the integration process in the western hemisphere may be found in the FTAA online information. Available at: http://www.alca-ftaa.org.  The draft text may be accessed through the FTAA online information.  For additional information see also the ACS online information. Available at: http://www.acs-aec.org/.  See in particular ϲʹ (2001a), Chapter II(2)(i)(c), for Canada; ϲʹ (2000), Chapter II(4)(iii)(a), for the European Union; and ϲʹ (2001b), Chapter II(3)(iii), for the United States.  The functioning of the GSP, including the preferences provided by the Quad, is described in ϲʹ document WT/COMTD/W/93, 5 October 2001. UNCTAD, document UNCTAD/ITCD/TSB/Misc.62 of 22 June 2001, "Generalized System of Preferences List of Beneficiary Countries".  Additional information can be found in the OPI-RD online information. Available at: http://www.dr-opin.com/. WT/TPR/S/105 Trade Policy Review Page  PAGE 16 Dominican Republic WT/TPR/S/105 Page  PAGE 17 Page II. PAGE \* MERGEFORMAT 1  x!$"$$$%%''S(()0)?)H)J)o))********-=.>..//0111222"333444.5555=6668899;<====>>??EEGGG&IIIKKM@ B*hnH  j0JUj0JUhnH 6CJ6CJCJmH CJ5CJhnH P/<G # M ? OwOu /!C!T!b!$<<$<<$/<G # M ? 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