Before the presentation on July 31, of a new list of tariff rates by the administration Trump —The which would come into force on August 7 and not the 1, as initially announced – we consider that the Dominican Republic should not conclude its negotiation process. On the contrary, it is time to rethink your strategy.
We must start from what seems inevitable: The 10 % rate which is expected will apply to the Dominican Republic, which would be one of the lowest. This is explained by our belonging to the group of countries with commercial surplus against the United States, but towards which the Trump administration has not expressed interest in imposing tariffs for extra economic reasons. Therefore, our country does not appear on the lists of countries that will face 15 %tariffs, nor in those who will be taxed with rates ranging between 18 %and 40 %.
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If the US part alleged than further reducing the tariff would generate tensions with other partners, which require equitable treatment, alternative paths can be opened, redirecting negotiation towards other areas with greater margin to advance.
For example, the administration could be persuaded that it is not fair that other competitors – also members of the United States – receive more favorable conditions, such as tariff exemptions for products that meet the rules of origin.
Once this strategic approach change is assumed, it is essential to compare the situation of the Dominican Republic against that of its main competitors in the US market, including the member countries of DR-CAFTA and Mexico.
In the case of Costa Rica -It is the major exporter of medical devices to the US-, a 15 %rate has been assigned, so it is possible that the Dominican Republic is in a relatively advantageous position. Even clearer is the advantage over Nicaragua, which will face a rate of 18 %.
The greatest difficulty is represented by Mexico, the main exporter of medical devices to the US market. Although provisionally it has been applied A 25 % tariffyou are allowed free admission of tariffs to the US market when it meets the rules of origin established in the TMEC. On the other hand, the Dominican Republic is not recognized equivalent under the DR-CAFTA, which is visibly unfair.
Let’s concentrate, then, just and the viable. We do not allow sterile distractions to deviate from the way to concrete results.
