Free Zones in Dominican Republic Looking to 2006 Rebound

Carlos Manuel Alvarez, head of the Santiago Free Zone Association, told local reporters last week that despite the crisis that´s hitting the sector, there is a feeling that 2006, with the DR-CAFTA treaty in place, will see a recovery.

Mr. Alvarez said that 2005 has been a tough year for the Dominican Republic´s industrial free zones, and mainly for Santiago and the Cibao, where the principal industrial parks are located.

The closure of businesses and the loss of jobs have been particularly hard for the free zones. Alvarez pointed out that the high cost of energy and high wages for industrial workers are two issues that are affecting the growth of the free zones.

With the DR-CAFTA agreement, Alvarez says the 14,000 jobs that have been lost in Santiago may well be recovered, at least in part.