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AIRD warns that uncertainty slows development and calls for reforms

AIRD warns that uncertainty slows development and calls for reforms

The president of the Industry Association from the Dominican Republic (AIRD), Julio Virgilio Brache, warned this Thursday that the country cannot advance if every reform becomes a source of uncertainty.

“We need regulatory stability, institutional coherence and mutual trust between the State and the company,” he expressed.

In that sense, he highlighted that the AIRD supports firmly public-private partnershipsbecause “growth is only possible and sustainable when it is built together.”

“One of the most repeated demands of the business community is precisely the need for a predictable regulatory framework“said Brache, warning that signs of possible changes in regulations, taxes or rules of the game generate uncertainty and slow down investment.

Regarding the reform of the Labor Code, he stated that “overcoming old structural problems is not a sectoral requirement: it is a national need“.

He pointed out that it is urgent to modernize labor relations, reduce informality – which exceeds 50% – and create conditions of higher productivity and justice for both workers and employers.

As for the layoffBrache reiterated that the position of the AIRD has been clear: “preserve acquired rights, but introduce flexibility applicable to new contracts, to encourage formalization and improve the competitiveness of the labor market”.

The industrial leader congratulated the deputy Carmen Ligia Barceló for his “brave and wise proposal” to open a dialogue on unemployment in the Chamber of Deputies.

Carmen Ligiayou have the full support of the AIRD in your call for dialogue,” he said.

He added that, when the time comes, “whether now or in the future, we will say present at any space where we can discuss this topic of such importance to our associates“.

Industry, engine of development

During his opening speech at the presentation of the Industrial Awards 2025Brache highlighted the relevance of local manufacturingwhich contributes 9.2% of the GDP, represents 18% of the sales reported to the General Directorate of Internal Taxes – “which shows its high degree of transparency and formality” – and generates more than 151 thousand direct formal jobs.

In the fiscal area, he reported that in the first eight months of 2025 the local manufacturing raised more than 127 billion pesos, equivalent to 21% of all internal taxes in the country.

“This difference between its participation in the GDP and its tax contribution reveals an important room for improvement in other sectors, and the need to expand the formality of our economy,” he stressed.

He also cited data from the Superintendence of Banksaccording to which manufacturing industries represent 12% of all business loans, with more than 93% classified as A or B and a minimum delinquency of just 0.5%.

Brache highlighted the export dynamism of 2025, with a growth of 28% in industrial exports nationals during the first nine months of the year.

“Increasingly, our companies take on the challenge of competing in international markets with quality and efficiency. These numbers represent the efforts of thousands of companies that produce, employ, invest and believe in the country. Defending the industrial space is, in essence, defending the nation’s capacity for progress,” he stated.

Stability with equity and competitiveness

In matter macroeconomicBrache insisted that the country must prioritize stability, but without sacrificing the competitiveness nor equity.

“When the time comes to discuss a comprehensive tax reformthe industrial sector will maintain its three fundamental principles: equity, gradualness and competitiveness“he noted.

He added that a tax policy Modern technology should not penalize production or discourage investment, but rather facilitate formality, reward innovation and protect the ability to generate employment.

“The fiscal stability cannot be achieved at the expense of productive development“he warned.

Likewise, it was considered necessary to review the guidelines of the industrial policy current, remembering that “many countries are today reorienting their gaze inward, betting on strengthening their productive sectors.”

“In the Dominican Republic, various productive realities —agribusiness, local manufacturingfree zones, tourism and MSMEs—and each one faces particular challenges that could be overcome more efficiently if we work in an articulated manner. Hence our commitment to productive chains and the regulatory reforms to facilitate them,” he pointed out.

Awarded

The executive vice president of the AIRD, Mario Pujolshe announced to the award-winning and highlighted its value for the industrial development of the country.

· Pro Consumer received the Award for Institutional Work in Support of the Industrial Sector for its constant support and promotion of the regulatory compliance and responsible consumption.

· Dominican Bepensa got the National Award to the Dominican Industry 2025 for its leadership in sustainability, support for MSMEs and promotion of the Made in the DR seal.

· The Industrial Merit Award was awarded to the businessman Felix Garcia“whose exemplary trajectory reflects the sector’s commitment to innovation, sustainability and the development of the country.”

Graduated in Social Communication from the Dominican University O&M. He completed a Master’s Degree in International Trade at the European Postgraduate Center. He has several diplomas in economics, customs, the electrical sector, taxes and investigative journalism.

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