Dominican Republic, concerned about the attempt to break multilateralism

Paris.- The Dominican Republic is not affected by US threats to apply protectionist measures, but is worried about its attacks on the multilateral system.

This is one of the main messages of the Dominican Economy Minister, Isidoro Santana, in an interview with Efe in Paris, where he participated in the tenth edition of the International Economic Forum on Latin America and the Caribbean.

“We are worried about how we are trying to break the international order created after the Second World War that was so beneficial for humanity (…) and that allowed so many people to leave poverty,” he said.

Santana pointed out that, in terms of trade, “nothing has been raised at all that affects the Dominican Republic” from the United States, which is its main trading partner. He added that “surely if all threats become reality, that can affect world trade and in some way may have some impact on our country.”

The head of the Dominican Economy acknowledged that his country could suffer the effects of the rise in interest rates of the US Federal Reserve when it has to return to the market with debt issues in the coming months. The last broadcasts were made at the beginning of the year, when there was still no impact like those that have been seen in countries, particularly in Argentina.

Asked about the economic prospects in his country, after noting that the Dominican Republic had not fallen into recession like many of the other Latin American countries in the middle of the decade, he pointed out that this year they expect to grow at a rate “above 6%” and maintain that cadence.

The main risks – he added – come from the increase in the price of oil, but also from an investment of capital flows because of the rise in interest rates that has been initiated in the United States.

Santana considered that to face the problems of inequality in Latin America one of the obstacles is the low level of taxation -22% of the gross domestic product (GDP), on average, and even less in the Dominican Republic- which does not allow for the necessary public politics.

He stressed that to increase taxation one of the challenges is to win the trust of citizens, which is very low in Latin America and that, among other things, translates into a bad disposition to pay taxes.