By Jamie Martin
The Dominican Republic's significant role in the Caribbean as a key U.S. trading partner has been strengthened by the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), which has propelled U.S. agricultural exports from $1 billion in 2007 to $2 billion in 2024. The upcoming removal of all tariffs on U.S. exports by January 2025 is expected to further boost this trade relationship.
As the largest economy in the Caribbean, the Dominican Republic's transition from agriculture to a more diversified economy including tourism and services has created an increased demand for imported agricultural products, particularly from the U.S. This demand is reflected in the continuous growth of U.S. exports, including a notable increase in consumer-oriented products.
The DR's economic landscape offers substantial opportunities for U.S. exporters, especially with the expected expansion of e-commerce, which is set to grow significantly by 2027.
Supermarkets, though currently accounting for only 25% of retail sales, are on a rising trend, complemented by traditional purchasing channels that remain popular among consumers.
Key U.S. export categories in 2024 included pork and pork products, dairy, beef, poultry, and baked goods, all seeing significant increases.
For instance, pork exports tripled since 2020, reaching $277 million, reflecting the U.S.'s dominant market share in the DR. Similarly, dairy and beef products have seen substantial growth, supported by high demand in both the retail and HRI sectors.
Looking ahead, the full implementation of CAFTA-DR promises even greater competitive advantages for U.S. exporters, particularly against countries like Chile and Peru in the fresh fruit sector, where the U.S. is poised to benefit from tariff eliminations.
The strengthening of the U.S.-Dominican Republic agricultural trade relationship underlines the potential for further growth and expansion, supported by a robust Dominican economy and favorable trade agreements.
Opportunities for increased U.S. exports abound, particularly in sectors where quality and variety are in high demand.
Photo Credit: agribusiness-global-trade-summit
Categories: National