DOMINICAN REPUBLIC RATIFIES DR-CAFTA

UNCLAS SANTO DOMINGO 004215

SIPDIS

DEPT FOR WHA, WHA/CAR, WHA/ESPC, INR; NSC FOR SHANNON;
USSOUTHCOM ALSO FOR POLAD; TREASURY FOR OASIA-MAUREEN
WAFER; USDA FOR FAS; USDOC FOR 4322/ITA/MAC/WH/CARIBBEAN
BASIN DIVISION; USDOC FOR 3134/ITA/USFCS/RD/WH; DHS FOR
CIS-CARLOS ITURREGUI;
STATE PASS USTR FOR VARGO AND MELITO

E.O. 12958: N/A
TAGS: ETRD PREL DR PGOV CAFTA
SUBJECT: DOMINICAN REPUBLIC RATIFIES DR-CAFTA



1. (U) Summary: The Dominican Republic on September 6, in a
vote in the lower house of Congress, ratified DR-CAFTA. All
that remains are steps expected to occur promptly: A
"protocolary act" to be signed by President Fernandez and
publication of the DR-CAFTA text in the Official Gazette.
The strong majorities achieved in both houses of Congress
bode well for legislaton that will be needed for DR-CAFTA
implementation. End summary.


2. (U) The lower house of the Dominican Republic's Congress,
the Chamber of Deputies, voted September 6 to ratify the
nation's adherence to DR-CAFTA, the regional free trade
agreement with the United States, signed by the Dominican
Republic on August 5, 2004. The vote was an overwhelming 122
in favor, 4 against (from the opposition PRD),with 20
abstentions. All three main political parties instructed
their legislators to ratify.


3. (U) The Dominican Senate had voted to ratify DR-CAFTA on
August 26 by a vote of 27 in favor and 2 against, so the
September 6 vote in the Chamber of Deputies was the last
political hurdle for ratification.


4. (U) According to our contacts, few steps remain before
DR-CAFTA (a treaty for the Dominican Republic) becomes law:
Congressional transmission of the ratification to the
Presidency, signature of a "protocolary act" by President
Fernandez, and publication of the treaty text in the Official
Gazette. These are expected to occur promptly.


5. (U) The Ambassador, an hour and a half after the vote, met
with Chamber of Deputies president Alfredo Pacheco (PRD) and
some 20 other legislators and congratulated them on their
decision to ratify, which he said would transform trade
relations between the Dominican Republic and the United
States. Former Dominican Institute of Telecommunications
(INDOTEL) president Orlando Jorge Mera, one of the Dominican
negotiators of the treaty, was on hand as the current PRD
secretary general. (Comment: He had evidently attended the

SIPDIS
session to encourage PRD legislators -- the strongest bloc in
the chamber -- to vote yes. End comment.)

Comment
--------------


6. (U) The ratification vote culminates more than three years
of effort by the Embassy, Washington, and Dominican officials
of two administrations to prepare the country for inclusion
in DR-CAFTA, negotiate and sign the text, and convince
Dominican legislators against determined efforts by
special-interest lobbies fearful of the treaty's impact. In
the end, after many diversions and delays, the ruling PRD of
President Fernandez and the main opposition parties,
especially the PRD of former President Mejia (whose
administration had negotiated and signed DR-CAFTA),put aside
partisan squabbling and achieved strong majorities in both
houses of Congress. This strong mandate bodes well for
cooperation on legislation, such as fiscal reform, which will
be needed in connection with implementation of DR-CAFTA.
HERTELL