RELATIONS WITH THE EU
The European Union and the Dominican Republic
The European Union (EU) and the Dominican Republic have strengthened their bilateral and regional relations in recent years with the signing of the CARIFORUM-EU Economic Partnership Agreement for trade and the Joint Caribbean-EU Partnership Strategy.
Political relations
The Dominican Republic is a privileged partner for the European Union, due to shared values, for being the largest economy in the Caribbean and the second most populous country after Cuba, for its dual identity as a Latin American and Caribbean country, for its dynamism and its active participation in various forums dedicated to regional integration, but also for the historical, cultural and familial ties that bind us. The European Union’s action in the international sphere is based on the principles that inspired its creation, the very ones it intends to promote in the rest of the world democracy, the rule of law, human rights, equality, solidarity and respect to the principles of the Charter of the United Nations and international law. It is within this global framework of fundamental principles and shared values that the relationship between the European Union and the Dominican Republic is built on.
The European Union and the Dominican Republic have maintained excellent relations since 1989, when the Dominican Republic joined the Association Agreement between the European Union and the African, Caribbean and Pacific (ACP) states. The Cotonou Agreement, renewed in 2021 takes its name from the African city where it was signed, it seeks to promote democracy, respect for human rights, the eradication of poverty and the advantageous insertion of the countries of Africa, Caribbean and the Pacific in the international economy. The main instruments for the fulfillment of these goals are political dialogue, privileged economic relations and a supportive cooperation relationship to contribute to sustainable development at the economic, social and environmental levels.
Within this context, the European Union and the Dominican Republic celebrated 30 years of relations in 2019. During that anniversary year, both partners emphasized their good relations in various events. For example, a joint postage stamp was issued commemorating 30 years of relations. Currently, we continue working to maintain and deepen this privileged relationship in all fields.
As such, visits at all levels are frequent, such as Federica Mogherini’s, High Representative and Vice President of the European Union, to President Danilo Medina in October 2016, or the one that Josep Borrell, her successor, will carry out in March 2023 on the occasion of the Ibero-American Summit. The Director of the European Union for International Cooperation for Latin America and the Caribbean visited the Dominican Republic in January 2023. Similarly, the current Director for the Americas of the European External Action Service, Javier Niño visited the Dominican Republic in 2021, and will return in March 2023, where he will accompany the current High Representative and Vice President of the European Union, Josep Borrell.
An extensive Political Dialogue between the Dominican Republic and the European Union takes place annually, serving to strengthen cooperation between our peoples. This dialogue covers all topics of common interest: from international and internal political issues, human rights, major global challenges, to commercial or economic issues such as the implementation of the Economic Partnership Agreement or the security of investments.
Regional Relations
Due to our history and experience, as Europeans we firmly believe in the benefits of regional integration and cooperation, as was shown in October 2018. Brussels hosted the foreign ministers of more than 60 countries of the Community of Latin American and Caribbean States (CELAC) and the European Union. The second EU/CELAC Ministerial Meeting served to confirm the European Union's commitment to Latin America and the Caribbean, in addition to the desire to continue being the main partner in the region and to strengthen bi-regional ties based on mutual understanding, respect and solidarity. The next Summit of EU/CELAC Heads of State will take place on July 17 and 18, 2023 with the aim of continuing to strengthen the bi-regional relationship.
In April 2019, the EU-LAC Communication was published, confirming the commitment of both regions and outlining the future of these relations, based on four pillars: prosperity, resilience, democracy and governance.
Similarly, European Union’s relations with Caribbean countries are articulated around CARIFORUM, which summons the Dominican Republic and the 15 countries of the Caribbean Community (CARICOM). In addition to the EU-CARIFORUM Economic Partnership Agreement, EPA, the Joint Caribbean EU Partnership Strategy regulates bi-regional relations by providing a structured framework for increasingly intensive dialogue and cooperation.
Economic relations
As part of the Cotonou Agreement, the EU has contributed to the advantageous integration of the Dominican Republic in the international economy, as well as in the development of economic and trade relations.
Within this framework, the Economic Partnership Agreement (EPA), signed in 2008, has led to the European market being opened up to the Dominican Republic under very advantageous conditions. So much so that currently, the EU is the country's second trading partner.
The European Investment Bank has a regional office in Santo Domingo, in recognition of the economic potential of the Dominican Republic.
Trade
Economic and trade relations
Bilateral economic and trade relations between the EU and the Dominican Republic are solid and profiting greatly at this time. Trade exchanges are in a clearly growing trend in both directions and European investments in the Dominican Republic cover more and more sectors of the economy, these investments are diversifying in terms of origin, and their amounts are on the rise too.
The EU has in the Dominican Republic its main trading partner and main recipient of European investment in the Caribbean region. Since the entry into force of the Economic Association Agreement (EPA) in 2008 bilateral trade in goods has grown by 231%. In 2022, a new historical trade record was established, reaching €4,138 million, a 27% increase compared to 2021 and 49% higher than pre-pandemic levels. Both EU exports to the DR and EU imports from the DR registered new highs, with values of €2.719 million and €1.419 million respectively.
The main categories of European products exported to the DR are fuels, mineral oils and their derivatives, machinery and mechanical devices, jewellery and pharmaceutical products, powdered milk and dairy products. The main origins of European imports to the Dominican Republic are Spain, Italy, Germany, the Netherlands and France.
On their side, the main items exported by the DR to the EU are fruits and nuts, notably among these bananas, cocoa and avocado, cocoa and its derivatives, tobacco and tobacco products, medical equipment and supplies, metal castings such as ferronickel, and alcoholic beverages such as rum. It should be noted that the DR is the main supplier to the EU of organic products, mainly bananas and cocoa. The main destinations for Dominican exports in the European Union are the Netherlands, Italy, Germany, Belgium and Spain.
DELDOM
The EU market in 2022 represented 11.15% of the total Dominican trade.
In regards to trade in services, the DR has maintained a constant surplus over the last decade. This surplus originates mainly from the tourism sector, as it is a major tourism destination for Europeans and has seen a steady growth in tourist arrivals from the EU. In recent years, there has been a growth in exports of creative services (such as cinema or animation) and technology (such as software development) to the EU.
Regarding investment, the EU is the second largest investor in the country, having contributed to the development of some key sectors of the Dominican economy, such as tourism. Currently, there is a presence of European companies in a good number of sectors such as energy (including renewables), sustainable urban transport, distribution and commerce, telecommunications, construction and public works, etc. The country's political, fiscal and monetary stability, the presence of an extensive network of free trade zones, along with vigorous, sustained economic growth and a favourable business climate foreshadows the arrival of a growing volume of European investment in the coming years.
Economic Partnership Agreement, EPA.
The Economic Partnership Agreement, EPA, was signed in 2008 between 15 CARIFORO member states and the European Union. This agreement replaced the unilateral preferences granted by the EU via the Lomé and Cotonou Agreements.
The EPA is focused on sustainable development and regional integration. From a trade point of view, it is asymmetric, since it allows a prolonged and gradual period for the tariff reduction of the CARIFORUM countries. For its part, the EU completely opened its market from EPA’s entry into force to all Dominican products, without tariffs or quotas, in all 27 EU countries.
The EPA has provisions that seek to promote trade and investment in goods and services. In addition, it covers other commercial disciplines whose objective is to offer a regulatory framework to protect and promote commercial exchanges, such as provisions on competition, innovation, public procurement, sanitary and phytosanitary measures, technical barriers to trade, intellectual property, environment, trade facilitation, data protection, labor issues, etc.
The Dominican Republic has stood out for its punctual implementation of the assumed commitments in the EPA, including the tariff reduction schedule. Likewise, it has made great use of the agreement by its operators, which has resulted in a notable increase in its exports to the EU. Another great benefit of the EPA has been the diversification of its exportable offer with the appearance of products with higher added value compared to its traditional commodities.
Despite the continuous growth shown fact in our trade relationship, there is still room for improvement to make better use of the opportunities of the EPA agreement. The EPA preferences utilization rate is between 60%-70% approximately, so there is still potential to be explored. It is therefore necessary to continue promoting the use of the Agreement. Thus, the Delegation organizes the EPA Awards annually, recognizing the use of the preferences of the agreement by Dominican and European companies. Likewise, a project is being implemented to increase the rate of use of the agreement between European operators.
For more information on how to export to Europe and import from Europe from the Dominican Republic, please visit https://trade.ec.europa.eu/access-to-markets/en/home and for more information on the EPA and the trade between the EU and the Caribbean, please visit https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/caribbean_en
Cooperation and development
The EU's cooperation with the Dominican Republic is guided by the Multiannual Indicative Program 2021-2027, which has a budget of €21 million for its first phase (2021-24) and focuses on three main fields:
- "Increasing economic opportunities, especially for women and youth": Supporting a conducive business environment for green and inclusive economic development, especially for micro, small and medium-sized enterprises (MSMEs), promoting ecological and sustainable practices, improving professional training for employability, and focusing on women and youth.
- "Nature and cities for people": In line with the European Green Deal, we seek to support the Dominican Republic in key sectors such as climate change mitigation, biodiversity protection, and the promotion of green investments.
- "A modern state close to its citizens": Supporting the reform of public finances and the mobilization of national revenues, strengthening institutions and the rule of law.
In addition, the Dominican Republic participates in the Regional Program for Latin America and the Caribbean, which has a budget of €1.28 billion for the period 2021-24 and focuses on five main areas:
- Supporting the green transition: Climate action in the region, biodiversity conservation and combating pollution, and supporting the transition to a clean, resource-efficient, and circular economy.
- Boost digital transformation, increasing competitiveness, and improving cybersecurity capabilities.
- Supporting a sustainable and inclusive economy: Ensuring economic growth and the implementation of trade agreements.
- Democratic governance, security, and migration: Strengthening the capacity of democratic institutions, combating organized crime and managing migration flows, and supporting the socio-economic inclusion of migrants and refugees.
- Social cohesion and fighting inequalities: Promoting inclusiveness and participation in the development of public policies, strengthening social protection systems, mobilizing internal resources, and regional dialogue.
Specifically, cooperation in the Caribbean will seek to strengthen the Caribbean-EU partnership in three priority areas:
- Partnership for a Green Deal: Sustainable production, management, and consumption, as well as the need to reduce natural disaster risks and strengthen a circular economy.
- Partnership for Economic Resilience and Trade: Supporting sustainable growth, access to decent employment, and intraregional trade (leveraging the opportunities offered by the EPA – EU-CARIFORUM Economic Partnership Agreement).
- Partnership for Governance, Security and Human Development: Contributing to halting regional security governance issues such as transnational organized crime and youth unemployment in order to reduce violence, improve social cohesion, and reduce social inequality.
Humanitarian aid
Through the ECHO office for the Caribbean, the European Union has provided more than €199 million in humanitarian aid to the Caribbean (excluding Haiti) since 1994. In the Dominican Republic, funding has amounted to over 32 million euros since 1995, with more than 17 million euros dedicated to disaster preparedness. During these years, the main focus of these projects has been to strengthen basic emergency structures, reinforce local Red Cross structures, enhance early warning systems, drought preparedness, support for teaching hospital initiatives and safe water systems. Similarly, activities include generating maps, raising awareness of and preparing for earthquakes and tsunamis, and developing tools to consider specific vulnerabilities in preparation and response.
Dialogue with civil society
The EU’s commitment to civil society organizations in the Dominican Republic is guided by the Roadmap, an instrument that ensures structured dialogue and common strategic cooperation in order to strengthen the contribution of local civil society to governance and country development, as well as to improve the impact, forecasting and visibility of EU actions.
The working priorities of this important relationship stem from suggestions received by several organizations within the context of the EU Communication "The Roots of Democracy and Sustainable Development: Europe's commitment to civil society in external relations," these are the following:
- Promote the effective application of the existing regulatory and institutional framework to ensure a favourable environment for the work of civil society organizations in the Dominican Republic.
- Encourage meaningful and structured participation in national policies, EU cooperation programming, and international processes.
- Strengthen the capacities of local organizations to execute their role as independent actors more effectively.