Identifier
Created
Classification
Origin
07SANTODOMINGO1050
2007-05-03 20:02:00
UNCLASSIFIED
Embassy Santo Domingo
Cable title:  

CORRECTED COPY - SANTO DOMINGO: REQUEST TO

Tags:  AMGT APER ECON EINT EINV ETRD JM XL DR 
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VZCZCXRO4872
PP RUEHGR
DE RUEHDG #1050/01 1232002
ZNR UUUUU ZZH
P 032002Z MAY 07
FM AMEMBASSY SANTO DOMINGO
TO RUEHC/SECSTATE WASHDC PRIORITY 8143
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
INFO RUCNCOM/EC CARICOM COLLECTIVE PRIORITY
UNCLAS SECTION 01 OF 02 SANTO DOMINGO 001050 

SIPDIS

SIPDIS

COMMERCE FOR A/S HERNANDEZ FROM CHARGE D'AFFAIRES BULLEN
STATE FOR WHA/CAR, WHA/EEB

E.O. 12958: N/A
TAGS: AMGT APER ECON EINT EINV ETRD JM XL DR
SUBJECT: CORRECTED COPY - SANTO DOMINGO: REQUEST TO
RECONSIDER COMMERCIAL SERVICE CLOSURES IN KINGSTON, PORT OF
SPAIN AND BRIDGETOWN

REF: A. A) PORT OF SPAIN 435


B. B) BRIDGETOWN 499

C. C) KINGSTON 640

UNCLAS SECTION 01 OF 02 SANTO DOMINGO 001050

SIPDIS

SIPDIS

COMMERCE FOR A/S HERNANDEZ FROM CHARGE D'AFFAIRES BULLEN
STATE FOR WHA/CAR, WHA/EEB

E.O. 12958: N/A
TAGS: AMGT APER ECON EINT EINV ETRD JM XL DR
SUBJECT: CORRECTED COPY - SANTO DOMINGO: REQUEST TO
RECONSIDER COMMERCIAL SERVICE CLOSURES IN KINGSTON, PORT OF
SPAIN AND BRIDGETOWN

REF: A. A) PORT OF SPAIN 435


B. B) BRIDGETOWN 499

C. C) KINGSTON 640


1. SUMMARY: Embassy Santo Domingo concurs fully with issues
raised in Refs A, B, C, and we urge Commerce's
reconsideration of its proposal to close its offices in the
listed countries.

- That, for population size, the region represents a
significant and growing market for U.S. exports.

- The vagaries of inter-island travel will make regional
coverage less than optimal.

- Without trained personnel on the ground devoted solely to
U.S. export promotion, other competitors (i.e. China, UK,
Canada and Venezuela) will exploit market opportunities and
gain market share. END SUMMARY.


2. The Caribbean represents a 15 billion dollar export
market for the U.S. and must not be taken for granted. The
closure of the three satellite offices, which cover 11
countries from Barbados, Trinidad, and Jamaica at a time when
other countries, particularly the Chinese, are expanding
their presence in the region will surely result in a
significant reduction in U.S. company's ability to compete in
this region.


3. DR-CAFTA has significantly increased the workload in the
FCS office in the Dominican Republic. The office was fully
engaged in the process to work through the issues that were
blocking the entry into force of the FTA and played a
critical role in monitoring and interacting with their
colleagues in the Embassy with the GODR. Now, with the FTA
fully functioning, FCS has the lead on most issues relating
to dealing with conflicts and the practical testing the new
rules and laws that govern trade, government procurement, and
other important elements of the FTA.


4. Whether it is the size of FCS' outbound trade
delegations, the number of export successes they report,

their revenue generation, or practically any other indicator,
FCS DR's program operations are increasing, relative to their
past experience, or when compared to any of our neighbors in
the region. The same is true for the three satellite
offices. If the offices in Jamaica, Barbados and Trinidad
are closed, there will be a very large increase in the
workload imposed on FCS Santo Domingo.


5. Right now, the DR/Caribbean (all 4 offices) handle many
requests (daily) from Embassies, US companies and USEACs for
assistance in exporting to the region including countries not
covered by FCS. Partnership posts are not proficiently
trained to provide FCS services and require significant
hand-holding from DR staff.


6. Reftels pointed out the growing perception within CARICOM
that the region is being neglected. The closure of the three
will certainly cement that perception and leave the door wide
open for others to exploit. We have already seen the Chinese
aggressive trade promotion activities, where Chinese exports
to the region went from virtually nil ten years ago, and now
stands at U.S. 4 billion per year.


7. While our regional office here in Santo Domingo backstops
and provides guidance to the three offices in question, there
is absolutely no substitute for an ongoing on the ground
presence to mobilize, explore and seal U.S. trade
opportunities with local business entities. Another issue
with which regional travel must contend, is the travel time
between islands. An example of this is that two days is lost
in travel from post to and from serviced posts.


8. Because these Islands speak English as a first language
it may be believed that they are easy for U.S. companies to
do business. The opposite is the truth. The size of
government, lack of sophistication of the private sector and
tendency toward protectionism makes the need for specialized
U.S.G. support critical for our companies to compete.


9. It is reasonable to say that the increase to their
workload has yet to be assessed, and despite the FCS staff's
ability and dedication, this new challenge will be daunting.
Closure of these offices should be reconsidered considering
the growing demand for imports and escalating competition
from other countries, especially the Chinese. The recent

SANTO DOMI 00001050 002 OF 002


economic growth and increases in investment in the DR will
occupy whatever reserve time and energy the FCS DR office
has. The expertise of FCS cannot be substituted by State
Econ Commercial resources, no matter how much they try.
Their skill set is different. I urge you to take the time to
reassess the impact of this closure and seriously reconsider
maintaining FCS' presence in Jamaica, Trinidad, and Barbados.
BULLEN