Dominican Senator proposes law to reduce U.S. tariffs

Dominican Senator Félix Bautista has submitted a bill to the Senate titled the “Law for the Prevention and Prohibition of the Importation of Goods and Products Produced Through Forced Labor.” The legislative initiative aims to provide a legal framework that allows the Dominican Republic to demonstrate to the United States Office of the Trade Representative (USTR) that it has effective mechanisms to prevent the entry of goods produced under forced labor conditions.

By adopting this law, the Dominican Republic seeks to negotiate a reduction in Section 301 tariffs imposed by the United States. Currently, the country faces an additional tariff rate of 12.5%, whereas trading partners such as Mexico, El Salvador, Guatemala, Honduras, and Malaysia pay a reduced rate of 10%.

Bautista noted that this 2.5% discrepancy negatively impacts the competitiveness of Dominican exporters, particularly in the free trade zone sector. He highlighted that approximately 40 companies specializing in medical devices and pharmaceuticals exported 72.2% of their production to the U.S. in 2025. The senator warned that the higher costs could incentivize companies to relocate operations to countries with lower export costs, potentially leading to job losses and reduced foreign exchange for the nation. He has called on President Luis Abinader to instruct legislators to expedite the bill's approval.