To boost collaboration across various sectors including trade, services, information, and industrial technologies, India and the Dominican Republic have signed an Economic and Trade Cooperation Protocol.
This agreement, signed on Tuesday (March 12, 2024) in Santo Domingo de Guzmán, Dominican Republic by Ambassador Ramu Abbagani and Foreign Minister Roberto Álvarez, signifies a significant milestone in bilateral relations, paving the way for the establishment of a Joint Economic and Trade Cooperation Committee (JETCO).
This committee, co-chaired by senior officials from both nations, will convene annually to oversee protocol implementation and explore new collaboration opportunities.
Ambassador Abbagani underscored the importance of strengthening economic and commercial ties, foreseeing increased interest from Indian businessmen and investors in the Dominican Republic, and vice versa.
In an exclusive interaction with Financial Express Online following the visit of S Jaishankar to that country last summer, Minister Alvarez had indicated that among the agreements whose negotiations were concluded included the Joint Economic and Trade Cooperation Protocol (JETCO) between the Department of Commerce, Ministry of Commerce and Industry of India and the Ministry Foreign Affairs of the Dominican Republic.
“This agreement will allow us to create joint working commissions that will meet regularly to promote trade and investment between India and the Dominican Republic,” he said.
In terms of trade and investment, what are the opportunities for Indian companies in the Dominican Republic?
According to Minister Alvarez, the Dominican Republic offers many opportunities to be considered as an investment destination for Indian companies. “Beginning with its location in the centre of the Caribbean, it becomes a connection point between Europe, North America, and the rest of Latin America, offering preferential access to more than 1.2 billion consumers through free trade agreements with the United States, Central America through DR-CAFTA, and with the European Union through the Economic Partnership Agreement (EPA),” he said.
Adding, “In addition, it has a solid legal framework, incentives, economic, social, and political stability, human resources, and adequate infrastructure for international companies.
Regarding investments in the Dominican Republic, companies dedicated to the sectors of medical and pharmaceutical devices, household appliances, electronics, textile and clothing manufacturing, plastic articles, and software development can take advantage of Law No. 8- 90 regarding free zones.”
Some highlights are:
•The Dominican Republic is the third largest provider of pharmaceutical and medical devices in Latin America.
•We have become the leading exporter of medical switches to the US market in 2020, with a share of 62.5%.
•In the textile sector, the country has the availability of technology-intensive assembly, with the incorporation of new designs, research, and development of new activities, as well as the incorporation of added value to final products at competitive prices.
•We also have a high population of bilingual youth and qualified personnel in information technology and software development areas.
Talking about other projects, whether public or private, Minister Alvarez said that investors in India can consider investing in the Free Zone Projects Corporation, industrial parks, the tourism sector, road and highway projects, Electronic Secured Transactions System, and digital medical record projects.
On Tuesday, Minister Álvarez highlighted the positive trade balance between the Dominican Republic and India from 2018 to 2023, expressing optimism for further growth. He highlighted the protocol’s role in facilitating Indian companies’ establishment in the Dominican Republic and fostering strategic alliances with local businesses.
The signing ceremony, held at the Ministry of Foreign Affairs, was attended by key officials from both sides, reflecting the mutual commitment to deepening bilateral cooperation.