DR CAFTA postponement effects

[Dolores]

Will the postponement of DR-CAFTA again have any effect on the trading of Dominican bonds? From what I understand the US now wants to change what was negotiated and among other reasons this could delay the treaty implementation that was scheduled for July. Actually, the US stands to gain much more than the DR from the treaty, because the US has much more to export to the DR.

[Market Economy]

In my view, the delay itself is an event to consider, but not something that may affect negatively the trading of bonds. Most of the news coming out of the country as on the positive side, and this has been factored in the prices. Now, a delay is a negative because it makes the decision process easier to potential investors of the countries in the treaty: invest in countries where the treaty has commenced.

Now, what could give bond prices a blow will be an outright cancellation of the agreement.


Note: This is my personal opinion, an should not constitute investment advice. E-mail me at my personal address if you want to develop a dialogue

[Mirador]

The reason behind the foot-dragging on DR-CAFTA is that the Leonel Fernandez Administration cannot affort the drop in revenues that the entering into force the trade agreement will cause. Also, there are serious political issues still unresolved, like intellectual property rights regarding pharmaceuticals, government purchases/contracts, law on representation of foreign firms...

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[Market Economy]

A fiscal reform was passed to compensate for the loss in revenue with the implementation of the treaty. It is really a bad reflection on the country that the remaining legislative loose end have not been tied.





Note: This is my personal opinion, an should not constitute investment advice. E-mail me at my personal address if you want to develop a dialogue

[Squat]

Hopefully the DR will step out of that major trap.

This is not a nation ready to open its gate to the world's giant producer.

DR-CAFTA is a big nonsense, and maybe dominican leaders will finally get themselves together and get out of it !

I don't want to witness the rural exode of all the campesinos, metamorphosing into crack-dealers and slum-dwellers only a couple of years after DR opened wide its gate to cheap subsidised goods from the US...

The first 6 months, people will be charmed by slightly cheaper prices at the supermarket, because US rice and beans are cheaper...

After 6 months, business owners will have to raise prices higher than the original dominican-made items, for some excuse, because this is what always happen.

Bottom-line, we will have kill the campo only to eat overpriced US rice and beans (they will be cheaper only the 1st 6 months...).

-Who would want that ???

If the US wants to open its gates, then let the Dominican Republic become a State, like PR or Hawaii !

[bienamor]

Originally Posted by Squat

Hopefully the DR will step out of that major trap.

This is not a nation ready to open its gate to the world's giant producer.

DR-CAFTA is a big nonsense, and maybe dominican leaders will finally get themselves together and get out of it !

I don't want to witness the rural exode of all the campesinos, metamorphosing into crack-dealers and slum-dwellers only a couple of years after DR opened wide its gate to cheap subsidised goods from the US...

The first 6 months, people will be charmed by slightly cheaper prices at the supermarket, because US rice and beans are cheaper...

After 6 months, business owners will have to raise prices higher than the original dominican-made items, for some excuse, because this is what always happen.

Bottom-line, we will have kill the campo only to eat overpriced US rice and beans (they will be cheaper only the 1st 6 months...).

-Who would want that ???

If the US wants to open its gates, then let the Dominican Republic become a State, like PR or Hawaii !

PR/US Virgin IS/Guam are not a states, Hawaii is

[Squat]

Originally Posted by bienamor

PR/US Virgin IS/Guam are not a states, Hawaii is

well.. you've got the general idea...

[NALs]

Originally Posted by Squat

If the US wants to open its gates, then let the Dominican Republic become a State, like PR or Hawaii !

If you look at each state in the US, each is more like a country in itself with self-government and the sort.

What each state basically has is free trade with every other state along with free movement of capital and labor.

Regarding Puerto Rico, the commonwealth status is basically a free trade agreement as well. Goods and services flow in and out of Puerto Rico (along with movement of labor) with as much ease as they flow between states in the mainland.

The result? Increase standard of living in Puerto Rico. Of course, Puerto Rico has way too many people that its economy cannot support, thus the fact that over 60% of Puerto Rico's population would qualify for government economic assistance programs.

However, if those programs were eliminated in Puerto Rico, what would follow would be an exodus of those families who are adversely affected by such elimination and in the process, the general economy of Puerto Rico self-corrects itself. This leads to higher standards of living regardless, as long as the flow of illegal migrants from Santo Domingo are kept low, because massive flows of people could cancel whatever economic gains Puerto Rico under such case would receive.

With the case of the DR it's the same deal. The exception is that CAFTA does not allows for free flow of labor between the DR and the US. Even if CAFTA would have allowed for free flow of labor, then the DR would have had to get tougher on the flow of illegal labor from Haiti and Cuba as such flow would inevitably increase as a Dominican exodus takes place and such, cancel whatever gains the country would have made.

-NALs

[aegap]

Originally Posted by NALs

Regarding Puerto Rico, the commonwealth status is basically a free trade agreement as well. Goods and services flow in and out of Puerto Rico (along with movement of labor) with as much ease as they flow between states in the mainland.

-NALs

I believe Timbirland is already planning on moving its Puerto Rican manufacturing plant into a "world-class Dominican Republic-based facility." I'm quite certain DR-CAFTA influenced their decision, ..

[Squat]

Originally Posted by aegap

I believe Timbirland is already planning on moving its Puerto Rican manufacturing plant into a "world-class Dominican Republic-based facility." I'm quite certain DR-CAFTA influenced their decision, ..

Big deal !!!

Kill the agriculture to create some cheapo Zona Franca jobs that don´t even provide enough for eating every day !

DR-CAFTA is BAD for the nation.

I am just so amazed that no one seems to realise it... I read the dominican press everyday, and there´s absolutely not a single word of analyze. It is so cristal clear...

There must be so many huge interests among the folks in power, that they don´t let the word out about the IMMENSE CATASTROPHE that this so called "free trade agreement" would bring for the nation, and the whole island in general.

I can´t unserstand how suddenly every smart journalist forgot about the deadly effect that came after Hait opened wide its gate to the US rice !

And in that very case, Haiti and DR are so much alike, it´s obvious...

Now they want the dominican pharmaceuticals to die as well so we would all have to buy expensive US medecine !!!

At least Puerto Rico uses the US$, and Puerto Ricans have a US passport, so it´s fair enough for them...

But DR-CAFTA will just wipe the Dominican Republic that we know today, with its countryside, and campesinos, transforming it in a giant SLUM, with Uzis, AK-47, crack, and KIDNAPPINGS !!!

Big deal then to quote some cheap labor agreement with a textile manufacture...

-DR CAFTA postponement effects = GOOD !!! i hope it never comes into effect !!!