As part of the promotion strategy for economic growth promoted through the Alliance for Development in Democracy (ADD) and taking advantage of the reconfiguration of global supply chains, the Dominican Republic consolidates itself as one of the main Destinations for the development of large capital investments.
This was stated by the American senator Tim Kainwho valued the good investment climate exhibited by countries in the region grouped in the DDA, based on political, economic and social stability, as well as nearshoring to reach target markets in a more competitive and sustainable manner.
Kaine considered it opportune to sign the Memorandum of Understanding between the countries members of the ADD, in which the Dominican Republic leads the commercial axis, and the government of the United States.
Likewise, he considered the agreement “great” in the challenging context caused by geopolitical conflicts, and the challenge of the supply chains of the United States installed in China that they could transfer their operations to Latin American countries that provide guarantees of the flow of commercial activity, as evidenced by those who make up the ADD.
Likewise, the famous Argentine writer, journalist and lecturer, Andrés Oppenheimer, reviewed in his column for the prestigious North American media miami herald, the ample opportunities for multinational companies to move their manufacturing plants from China to Latin America to “protect themselves from possible export problems”, highlighting the Dominican Republic, a member country along with Costa Rica and Panama of the recently created “Alliance for Development in Democracy” (ADD), as one of the few nations in the region that promote themselves as alternatives to the factories that are in China.
Historic table of work with the United States
In the ADD, a historic working table with the United States was recently established through a memorandum of understanding that represents a transcendental boost in strengthening supply chains. global Supply, key element to lead the economic growth of the region.
The Minister of Industry, Commerce and MSMEs, Victor (Ito) Bisonóhas highlighted the impact of these strategic alliances.
“These agreements strengthen a direct channel of communication with the USA, setting up a functional work table and laying the foundations for fluid discussions, agreements and proactive actions that will generate the identification of opportunities for new companies and projects so that they can develop businesses in our countries”. The head of the MICM emphasized.
Strategic alliances in the region (ADD)
The Alliance for Development in Democracy (ADD), seeks to promote a regional proposal to relaunch commercial, demographic and cultural links between these countries and those of the region.
In addition, it promotes economic growth within the framework of democracy, human rights and the Sustainable Development Goals, as well as supporting an agenda that generates synergies between countries and other strategic partners in the regiontaking advantage of the process of reconfiguring global supply chains and promoting the creation of conditions for the return of the production of goods and services to the region.
Leveraging Nearshoring in the DR
The Dominican Republic, due to its strategic location and political, economic and social stability, has been developing as a Regional Logistics Hub, relying on nearshoring, which represents a consolidation opportunity for economic development.
Pre-existing trends have allowed the reconfiguration of global value chains (GVCs), and with it the behavior of the foreign direct investment (FDI) in the world, creating the conditions for the massive attraction of value chains that are adopting strategies of regionalization, cost reduction, resilience and efficiency to reach their markets.