A history of cordial relations
THE UNITED STATES AND THE DOMINICAN REPUBLIC HAVE ENJOYED MUTUALLY BENEFICIAL ECONOMIC RELATIONS FOR GENERATIONS, RESULTING IN A GROWING DOMINICAN TOURISM SECTOR

OPEN FOR BUSINESS Free zones have ensured the success of the Dominican Republic’s lucrative maquilas.

The United States has made a special effort throughout the years to contribute to a democratic, stable and economically healthy Dominican Republic. The two countries are important neighbors and partners in hemispheric affairs, underscored by the fact that the Dominican Republic is the fastest-growing Caribbean economy and the second largest country in terms of population and size.
U.S. companies account for much of the foreign private investment in the Dominican Republic, and the two countries’ trade relations have proven important for both nations. Other bilateral agreements have fortified both nations’ commitment to fight the illegal drug trade, migration controls and the war against terrorism. Washington also praises the administration of President Hipolito Mejia’s efforts to open the Dominican economy to more trade, and to increase foreign private investment.

The American Chamber of Commerce has been present for 78 years in the Dominican Republic and currently represents nearly every U.S. company operating in the country. “But it is getting more and more difficult to define just what an American company is, because it can be a joint venture, a license distribution, a franchise... there is a whole range,” notes William M. Malamud, executive vice president of the American Chamber of Commerce in the Dominican Republic.
Some 125 companies are members of the American Chamber of Commerce in the Dominican Republic, “and then we also have a wide range of Dominican companies that do business with the United States, so over the years the more prestigious business organizations have been operating down here. Right now we have 3,000 company members,” Mr. Malamud says.

Among its large array of services, the American Chamber of Commerce works closely with Dominican companies that want to export to the U.S. and with U.S. companies that need reliable information about the local economy. “We also organize trade missions to the States, bring in new market companies and work with a Human Resources Committee to get the top people and identify the areas of common interest. The idea is to raise the level of confidence in the companies,” explains Mr. Malamud.

The tourism sector in the Dominican Republic has begun to attract the interest of U.S. companies and the American Chamber of Commerce at a rate, Mr. Malamud says, that will eventually lead to a boom in the industry. “One of the things I want to do is promote the country as a golf destination. There are some pretty good golf courses around the country. There has not been a concerted effort to market that. The average golfer tends to be a more demanding but also a higher spending tourist. There is beginning to be an awareness of that, but we are still not quite there.”

Mr. Malamud says plans are also in the works to develop assisted living communities for the elderly, who want to live in a comfortable environment but still have plenty of activities to provide quality in their retirement years. “Down here you have a tremendous tourism infrastructure and you have a large number of doctors who were trained in the U.S. For the price of a nurse in the States, you get a highly qualified doctor here,” Mr. Malamud explains.

As far as other investment opportunities go, the American Chamber of Commerce executive vice president lists agriculture as a safe bet due to the country’s varied microclimates. “There are also a lot of opportunities for the supply of machinery and services to bring fresh products to the market, such as refrigerated warehouses and refrigerated trucks. “Demand is still growing in the electric power sector, and telecommunications–not just phone lines, but a whole array of services where you combine telecommunications and the free zones. So the main sectors will be telecoms, agriculture, energy and the maquilas in the free zones,” Mr. Malamud concludes.