Position of organized trade on the draft tariffs

The organized trade agglutinated in the Dominican Federation of Merchants Inc. positively values ​​the bill approved in the first reading in the Chamber of Deputies on the zero tariff for 67 products that make up the basic food basket of the poorest classes in the country.

We call on legislators, especially legislators who are members of the Dominican Federation of Merchants Inc. to become spokespersons, for the approval, today, in the second reading of this important bill, which At the initiative of President Luis Abinader, it is currently in the Chamber of Deputies.

Given so many comments and opinions from sectors that want to misinform public opinion, we want to make the following points:

1. Domestic production of garlic and beans: 95% of the garlic and beans consumed in our country is imported, garlic from China and beans from the United States, so it does not affect domestic production. It is true that we have to rescue the production of garlic in Constanza, which from 150 thousand quintals that were produced in 1999, production fell to 15 thousand quintals in 2013.
2. National rice production , we support national producers , we are efficient in national production , we have more than 2 million quintals of rice and the spring harvest is about to start . We Dominicans prefer national rice to imported rice. The president is supporting the sector with 12 months of payment of bank interest (zero rate on loans) and the storage of pledged rice, supporting producers with subsidies for fertilizers and agrochemicals, genetic seeds to increase productivity. The price of rice has remained stable in the last 18 months at 25 pesos per pound.
3. National production of vegetables and greens, we are self-sufficient and with stable prices.
4. Production of onions and potatoes, they are only imported for the month of December, when the national supply decreases.
5. Producers of flour and bread , the government is subsidizing the bread and spaghetti industry so that prices do not increase .
6. Milk producers, at present the quota of milk from Europe is free and with zero tariff, therefore, the import of milk from Europe is not a threat. Skim milk is imported from the United States for industrial use and the free trade agreement authorized 7,890 tons with zero tariffs for 2022. We are requesting that whole milk from Argentina be removed from the obstacles in the general directorate of livestock that they have to send to supervise the whole milk plants, this milk from Argentina has a tariff of 16% and is whole, for which, It is the one used by consumers.
7. Oil manufacturers surprised us this week with another increase of approximately 20% in soybean oil, after the government authorized a 10% subsidy and zero tariff. Since January 2020 there are 15 oil price increases, which we consider excessive. We are marketing soybean oil imported from Guatemala, paying high freight and due to the free trade agreement with Central America, it pays zero tariffs 30 to 40% cheaper than local brands, and Guatemalans buy the raw material in the same chicago stock exchange
8. Canned products from January 2020 to the present have increased by more than 120%.

To speak of the destruction of national production is not to tell the truth to the Dominican people, although we support local production, our commitment is to the 11 million consumers in the country, and even more so to the poorest, for these reasons and many more. , we support the project of zero rate for the importation of the products listed in the bill .
Once again we make a call to our suppliers that these times of inflation have to reduce their marketing margins for the benefit of the Dominican people.

The trade organized in the FDC, importers, distributors, wholesalers, supermarkets and minimarkets commit ourselves to the reduction of prices obtained by the application of the zero tariff to mass consumption products such as oil, beans, powdered milk, flour, bread , pork, beef, canned goods, chicken, butter, garlic, pasta, among other products, will be applied to the consumer in the Dominican Republic.

You can also see: Pacheco affirms the zero-tariff rate bill protects the consumer.

We are in a situation of global inflation and we have to stand in solidarity with our customers and transfer the tax cuts to the consumer. The cheaper we sell, the greater the consumption and, logically, the greater our sales.

We have the combination of the rise in oil prices with the rise in raw materials necessary for the production of local industries, such as soybeans for the production of soybean oil, wheat for the production of bread and spaghetti, and corn for chicken production.

We reiterate our support for local industry, although we request that at this time, just as businesses are reducing their marketing margins, local industry must reduce them for the benefit of citizens.

The prices of agricultural products produced in our country remain stable for more than 14 months , for which you can buy select rice between 25 and 27 pesos a pound , garlic between 100 and 120 pesos a pound , pinto beans between 45 and 48 pesos a pound, black beans at 40 pesos a pound, onions between 30 and 35 pesos a pound, 30-unit egg cartons between 165 and 200 pesos, potatoes at 25 pesos a pound, and bananas between 7 and 12 pesos a unit.

In our social networks of Instagram, Twitter and Facebook we are placing the prices in the commercial establishments, supermarkets of our institution in the different towns of the country, so that the consumer knows the reality of the offers that we have, it is our social responsibility as a union.

We agree with the implementation of administrative measures to immediately impact the prices of imported articles and raw materials, and the streamlining of phytosanitary procedures and permits, public health (digemaps), among others, we reiterate our full support for agricultural producers and livestock of the country with loans at zero rate and the grace of 6 months of payment of the capital of their loans, so that in this way they can dedicate themselves to producing. Agricultural producers and Dominicans living abroad have been the protagonists in these almost 2 years of pandemic, now aggravated by the invasion of Ukraine.

We support subsidies focused on the poorest in the country, as is the case of the gas bonus with an increase from 228 to 470 pesos, since purchasing power is restored due to the substantial increase in the price of a gallon of gas, in addition to the increase of 400 thousand new beneficiaries.

We support the direct subsidy of up to 10% in the price of bread, soybean oil and chicken, due to the increase in wheat, soybeans and corn in international markets.

We support the increase of 500,000 new beneficiaries of the Supérate card program.

Economic policy

We support the president’s economic policy, since we managed to exceed the jobs registered in the tss in January 2020, with the closure as of December 2021 of 2,166,578 registered workers with formal jobs, of which the commerce and services sector contributes 38%, we are the largest employer sector in the country.

The 12.3% growth of the economy in 2021 was extremely important, since the accumulated inflation was 8.3%, for which the result is positive by 4%.

In addition, the increase in international reserves by 13 billion dollars has ensured that the dollar rate does not exceed 57.50, with rates today of 54.50, achieving an appreciation of the peso, we are the only country in the world that in these times of crisis pandemic, its currency appreciates against the dollar and the euro, which is the main achievement so that inflation was not 2 digits.

Construction Sector

In the construction sector, in which the hardware sector affiliated with the FDC is the thermometer to measure its growth, although we have high prices in the main construction inputs such as rods, cement and aggregates, the sector continues with great dynamism.

We support the happy family housing program and we support the housing reconstruction program through the adess with the superate card, since for the first time the hardware sector throughout the country is participating in the sale of materials through the card improve yourself. Gone are the days when only 3 companies sold all construction materials to the government.

The trade organized in the Dominican Federation of Merchants Inc. will continue to support all measures that are favorable to the poorest in the country, since they are all consumers and therefore our clients.
The concept of solidarity with the most dispossessed is well defined and supported by organized commerce in the FDC.