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Kay Hagan, Fernando Capellan.

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Santo Domingo.- Group M president Fernando Capellan met with a U.S. Congressional Delegation to discuss projects to develop not only Dominican Republic’s textile industry, but also Haiti’s in the next few years

The meeting, hosted by U.S. Ambassador Raul Yzaguirre, is part of the Round Table, of discussions for development, of the American Chamber of Commerce in the country.

The U.S. lawmakers discussed with Capellan the various projects to develop textile companies in Haiti, where Group M currently has developed an industrial Free Zone park, under the provision of the Dr-Cafta Free Trade Agreement and Help, which promotes co-production and allows joint manufacturing in both countries.

The members of the U.S. Congress stated an interest in learning about the economic and social plans which Group M has been developing in both countries, as well as how they can help with actions to contribute with them.

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COMMENTS
11 comment(s)
Written by: Atabey, 24 Mar 2011 11:05 AM
From: United States, NYC
Charlie was instrumental in getting this Bill passed. Unfortunately, he's a tarnished fellow now and someone else will have to push this hard in order to gain the hard fought results we want: capital investments, jobs and export earnings. DR and Haiti need to increase their EXPORT earnings by many factors in the years to come.
Written by: WalterPolo, 24 Mar 2011 11:59 AM
From: Dominican Republic, Puerto Plata
The keyword is "competitiveness".

Will the US pass a law with protectionary tariffs imposed to Asian products to allow DR/Haiti textile imports?

Not sure.
Written by: Atabey, 24 Mar 2011 1:09 PM
From: United States, NYC
Well, Walter, if the US has any notion of helping out Haiti through economic expansion, textiles are a crucial piece of the pie. Haiti has very low, probably the lowest, labor cost in the Western Hemisphere. There are many industrialist, some Korean, who will invest if the US establishes the conditions and the Haitian leadership prove worthwhile partners. A lot hinges on the Haitian leadership and business elite. If they do as before, then the foreigners with the capital and technologies will look elsewhere to invest. But if the Haitian leadership finally gets its act together then Haiti will see massive, relatively speaking, sums flow into Haiti. And Why not? Investing in a stable Haiti will make large sums of money for the foreign investors! Provide jobs for Haitians and serve as a catalyst for future higher value production in Haiti. Everything depends on good governance and social stability. The market access into the US is assured. South Korea will also see
Written by: Atabey, 24 Mar 2011 1:13 PM
From: United States, NYC
increase exports due to Japan's current weakness. South Korea has long copied the Japanese and moved into economic sectors and areas as junior partners. With the current terrible situation in Japan, Korea will see large increases from foreign buyers. So South Korea will not be as detrimentally affected by losing textile exports to the US. Also, South Korea is moving away from these low value production processes. They want higher value production and are concentrating on technologies for their future prosperity. Check out their enormous investments in Knowledge Cities.
Written by: WalterPolo, 24 Mar 2011 1:24 PM
From: Dominican Republic, Puerto Plata
Atabey:

"Haitian leadership and business elite"

Now here are two concepts that require major re-engineering.

Agreed, though, if this superhuman task can be achieved, Haiti has a future.
Written by: PatDiamond, 24 Mar 2011 2:09 PM
From: Botswana, La reconnaissance est une lachete'
Atabey- With the Hope II bill which already passed in the US congress and Senate garment manufacture in Haiti enter the US duty free for the next 10 years. The good thing about this bill is the fact the textile to make the garments can be originated from
China and still qualify. With Haiti daily minimum was at $4 a day half of what DR is, and the Recent launch of operation of E Power in Port-au-P supplying 30% of energy mainly to the industrial
Park I'm sure it will not be long before DR manufacturer will
Move their operation next door as some of the Asians are coming in.
Written by: Atabey, 24 Mar 2011 2:51 PM
From: United States, NYC
I truly hope that Haiti will finally get the stability and investment flows necessary to achieve long run economic growth and prosperity. DR will be a far richer and more prosperous nation-state if Haiti is richer and more prosperous. Of course, a lot depends on what happens in the next few years. especially this current 2011 year. Many projects in Haiti have only gotten start-up capital flows that will dry up unless greater sums are kicked in later in 2013 and beyond. So these two up coming years are CRUCIAL for Haiti. If they get their act together and things work out, WOW! There could be a truly historic roar coming from the center of the Caribbean. A two nation market of 20 plus million of consumers and producers will shake the foundations of the Caribbean Region. The island of Hispaniola could become in the not too distant future the epicenter of the Caribbean. The Powerhouse of the Caribbean.
Written by: GringoRandy, 24 Mar 2011 5:15 PM
From: Dominican Republic, Santiago
I think these are all good thoughts and well expressed. My only concern now is that many of the residents from the free zones, including textile manufactures among them Groupo M, are now required to reimburse the Dominican government for millions they recieved in loans. The original loans were ostencibly to stave off the need for massive layoffs. Now, given the requirement to pay them back, many will begin laying off employees (at least I know Groupo M is). Hopefully the financial support can come quickly to ameliorate the impact.
Written by: ElChico, 25 Mar 2011 3:09 PM
From: United States
I always remember a pair of dockers I bought that were made in DR. I wish I could say they were well made. Darn things were so stiff and rough on the skin. You could make tostones with them.
Written by: ElChico, 25 Mar 2011 3:11 PM
From: United States
@ WalterPolo

Don't count on it. Textiles are a nice thought and anything that is a potential job source is good for DR but no way DR can compete with Asia in textiles and I really don't see U.S. imposing a tariff. There is potential with Haiti though but it's no small investment. Would really need commited people behind it to do the salesjob to corporations of putting up infrastructure investments...
Written by: jamien, 29 Mar 2011 11:32 AM
From: Dominican Republic
the only way the dr will grow and compete in the textile industry is to allow duty free on all components of garments no matter where they come from!!! this will help to compete with china and give quick turn for the usa market!
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