Although the Association of Industries of the Dominican Republic (AIRD) remained opposed to the approval of the law that taxes zero rate to 67 tariff subheadings of food products, the president of the guild, Celso Juan Marranzinisaid yesterday that, after being enacted on April 27 -but made public yesterday-, there are mechanisms in the country so that its application does not affect local productive sectors.
However, among representatives of the agricultural sector opposition to this exoneration, which will last six months, remains, and there are those who brand it as a strategy that “became politicized.”
The General Directorate of Customs informed that it is in the process of inter-institutional and internal coordination, pertinent with the other organisms that intervene in the regulation of the products contained in the list of Law 6-22 that establishes zero rate for certain goods that participate in the family basket.
However, from the Executive Branch it was reported that there are points covered by said legislation that do not depend on a regulation to be executed.
“We understand that, with the modification that was carried out as a result of the dialogue between the government and Congress, there are mechanisms so that this law does not cause adverse effects in the productive sectors,” Marranzini assured.
The agricultural sector guarantees that it can supply 80% of the food needed in the Dominican Republic. Given this, there is concern that the poultry industry will be the most affected by the execution of the law, since it allows the importation of chicken with zero rate.
They fear that imports of the bird from Brazil, with which the Dominican Republic does not have a trade agreement, will allow its pound to reach the country at 50 pesos, and from the United States – with which there is a trade agreement – at 103 pesos.
“We want to clarify and reiterate that at this time there is no shortage situation. Rather, the industrial sector as a productive sector is constantly supplying the necessary products, playing its role in price stability as it has been during these two years of a pandemic and now because of these Russian attacks on Ukraine”CEO AIRD
The Dominican Agribusiness Board and the AIRD they had sent separate letters, in March and April, to the Chamber of Deputies requesting that the then bill be reconsidered. They advocated granting targeted subsidies to consumers and, if necessary, to producers.
However, the Executive Power promulgated the law that it had previously submitted to the Chamber of Deputies in March and to which the legislators included a paragraph on the limitation of quantitative limits on imports and a commission in charge.
“The Commission for Agricultural Imports may limit the importation of these products with quantitative limits, via quotas, and will determine the corresponding administration mechanisms for each case,” says Paragraph III added to the original project that seeks to counteract inflation in agricultural products. basic basket.
Diario Libre sought official information on when and how the law will be applied, but it was not possible to obtain a response at the close of this edition
The president of the AIRD He hopes and is optimistic that the decisions that will be made in the import commission will take into account the productive sectors and that this will not have a negative impact on them.
“We want to clarify and reiterate that at this time there is no shortage situation. Rather, the industrial sector, as a productive sector, is constantly supplying the necessary products, playing its role in price stability, as it has been during these two years of the pandemic and now due to these Russian attacks on Ukraine,” he emphasized. .
He recalled that there will be a permanent dialogue on the subject, and as an industrial sector they are aware that it is about price stability in the country.
He pointed out that the authority knows that a permanent dialogue must be maintained and that the decisions to be made, if necessary, do not have any type of negative repercussion in the productive sectors.
Among the 67 subheadings that will have a zero import rate for six months are a variety of cuts and state of beef, pork and chicken. Also, milk, butter, garlic, peas, beans, lentils, broad beans, pigeon peas, peas, flour, oils, margarine, pasta, bread and corn. The Minister of Agriculture reported last week that there is a regulation for the application of the law, which will establish mechanisms.
