EPA Review Annex Documents - DFID

As the Central American countries started negotiations with the United States, the DR
realised that its exporters (primarily in the garment sector) would be in comparative
disadvantage compared to its Central American counterparts if under the CAFTA they
obtained an incremental market access as was agreed under the Caribbean Basin
Initiative. After a series of analysis the DR decided, that it could not afford being
excluded from trade negotiations with the United States. The rationale was purely
defensive, due to the Central America position.
In this context the DR approached the US to convey its interest to participate in the
negotiations, however they received a negative response, indicating that the country was
not ready for such commitment. As a reaction the DR signalled in different ways to the
USA its seriousness to participate in such endeavour. One of the joint tasks taken by
both countries was the re-enactment of the DR-US Trade and Investment Council (TIC),
created in 1990 as a vehicle to resolve pending issues and to enhance cooperation in
trade and investment. For the GODR the responsibility of the TIC was given to the
Ministry of Trade and Commerce. Nine meetings took place between the two countries,
where a series of issues were raised and pending issues resolved. After an intense
political lobby complemented by advances at the TIC level, the US announced the
inclusion of the DR in the CAFTA negotiation, under the scope of a “docking”
mechanism.
Therefore it was rational decision due to the time limit and scope of the negotiations, to
keep the process under the command of the Minister of Trade and Commerce.
Seven negotiation groups were created in the following areas: market access, services
and investment, government procurement, dispute settlement, intellectual properties
right, agriculture and trade capacity building. These groups reported to the Secretary of
Industry and Trade and the participation of SEREX negotiators was very limited.
However, as in other instances, all negotiation groups were formed with technical
experts of the GODR institutions that compose the CNNC.
159