During the period 2010-2021, the Dominican Republic bought from Mexico, on average, 25 times more than what it exported
Dominican Republic It must promote the greater incorporation of innovation processes in its export products so that it becomes a tool that facilitates its competitiveness in the Mexican market.
This with a view to increasing Dominican exports to Mexico, which during the 2010-2021 period had an average value of US$35 million. While the average value of imports was US$905 million, that is, Dominican Republic he bought from Mexico, on average, 25 times more than he sold to him.
This is why the country must achieve competition for product differentiation instead of cost, to facilitate access and permanence of Dominican products in the Mexican market.
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According to the study “Bilateral trade and investment relations between the Dominican Republic and Mexico” of the Economic Commission for Latin America and the Caribbean (ECLAC), this year, the cases of cocoa and rum could be examples of this differentiation of product.
“Especially in the case of cocoa, although the Dominican Republic is distinguished by trading higher quality cocoa varieties than its competitors, the foray into the export of cocoa products with higher added value would provide greater benefits to its economy. A strategy that countries such as the Ecuador, Colombia and Peru in the Mexican market,” he says.
He adds that the union of cocoa with rum, for example, could generate distinctive DR products with greater added value.
The study also advocates establishing alliances with the different trade associations, commercial chambers and state support entities in Mexico that would serve to increase trade and investment opportunities between the two countries, also urges the development of market studies.
He also sees the signing of a free trade agreement as a possibility, which could reduce tariffs, facilitate the incursion of Dominican industry into North America and attract a greater number of investments.
Mexico is the 5th investor in the DR
Mexico was the fifth largest issuer of foreign direct investment in the DR, with a total of US$2,036 million between 2010 and 2021, while the DR registers few projects as a foreign investor. The study suggests that the DR can continue to attract Mexican investment due to its preferential and geographical access to markets.
