Presentación de Arturo Peguero, Director Logistics & Trade Center en el panel "La República Dominicana como un HUB logistico y plataforma de manufactura Near Shore" en Semana Dominicana 2015

1. Logistic & Trade Center
The Role of the Dominican Republic in the
Global Value Chain
Investment and Trading Partner for the US Market
Arturo Peguero
Director
Logistics & Trade Center
May, 2015
Washington, D.C.

2. Logistic & Trade Center
Dominican Republic at a Glance
6.6
5.3 5.2
4.8
4.0
3.6
0
1
2
3
4
5
6
7
Panama Dominican
Republic
Bolivia Colombia Paraguay Peru
Top Latin America Countries by GDP Growth
(GDP Growth Rate in 2014)
Source: IMF

3. Logistic & Trade Center
Dominican Republic at a Glance
2,208
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2010 2011 2012 2013 2014
Foreign Direct Investment
(FDI)
Value (US$millions)
Year Index
2010 6.2
2011 7.7
2012 3.9
2013 3.9
2014 1.6
Source: Central Bank DR
Inflation Rate
9,919
-
2,000
4,000
6,000
8,000
10,000
12,000
2010 2011 2012 2013 2014
Exports of Goods
Value (US$millions)

4. Logistic & Trade Center
Jumping into Globalization: USA FTAs
Western hemisphere:
12 countries
Rest of the world:
8 countries

5. Logistic & Trade Center
Jumping into Globalization: DR
Free Market Access
Potential Export Market Population
872 million of consumers
DR-CAFTA
370 million
EPA
502.5
million

6. Logistic & Trade Center
Competitive Advantages
• Among the only 6 Countries in the world with preferential
market access to both the U.S. and EU.
• 7th Largest trading partner with the U.S. in the Western
Hemisphere
• Implementation of large-scale reforms creating and ideal
investment climate
• Unique close collaboration between governments and private
sectors U.S.-DR.
• FDI more than 11 billion in 4 years

7. Logistic & Trade Center
The Manufacturing Export Sector: Free
Trade Zones
46 48 58 70
481
551
650
765
0
100
200
300
400
500
600
700
800
900
2000 2010 2015 2025
Number of Parks Number of Companies
2,907.40
4,770.60
4,217.60
5,602.0
10,865.9
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
1995 2000 2010 2015 2025
Exports (in US$ million)
Expon. (Exports (in US$ million))
Main Indicators
Source: National Free Zones Council/Logistic & Trade Center

8. Logistic & Trade Center
FTZ Export Manufacturing & Global Services
Main Activities
2014
Other
Services
Cigars and
Tobacco/Agribu
siness
Textiles and
Apparel
Commerce
Footwear
Medical and
Pharmaceutical
Electric and
Electronic
Source: National Free Zones Council

9. Logistic & Trade Center
Where do the Companies Come From?
Country of Origin of Investment in FTZ
2014
Source: National Free Zones Council
USA
49%
Dominican
Republic
22%
Europe
15%
Canada
8%
Asia
1% Other
5%

10. Logistic & Trade Center
Labor Market Productivity Evolution
Source: National Free Zones Council
24,678.25
34,190.89
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
2004 2014
Exports per Employee (Output) in US$

11. 5th. US supplier of
leather footwear
4th.US supplier of
medical/surgical
instruments
1st. Exporter of
Cigars in the World
3rd. US
supplier of wool coats
for women
2nd. US supplier of
circuit breakers
1st.US
supplier of ostomy
appliances
2nd. US supplier of
dental floss

12. Logistic & Trade Center
USA Footwear Imports from Top Suppliers
Source: FDRA, 2014

13. Logistic & Trade Center
USA Apparel Imports from Selected CountriesAsia
Rank Country Trend
1 China ↓
2 Vietnam ↑
3 Bangladesh ↓
4 Indonesia ↓
6 India ↑
8 Cambodia ↓
10 Sri Lanka ↑
12 Pakistan ↓
16 Philippines ↓
17 Thailand ↓
LatinAmericaandthe
Caribbean
Rank Country Trend
5 Mexico ↑
7 Honduras ↑
9 El Salvador ↑
11 Nicaragua ↑
13 Guatemala ↑
18 Haiti ↑
20 Dom. Rep. ↑
21 Peru ↑
Source: USA Department of Commerce, 2014
Back to America? ..Relocation

14. Logistic & Trade Center
Top USA Global Medical Device
Companies
“#1 Medical Device manufacturer in the World. Every day,
millions of people around the world enjoy the benefits of
products from the Johnson & Johnson Family of Companies.
“Manufacturing and worldwide logistics company. Fortune 500 (#22).
Helps pharmacies, hospitals, clinical laboratories and physicians focus
on patient care.”
“A leader in healthcare for more than 80 years. Baxter assists
healthcare professionals and their patients with treatment of
complex medical conditions. Information on our business, leadership
and history are available here.”

15. Logistic & Trade Center
Top USA Global Electronic Manufactures
Companies
“Eaton knows our customers demand a wide range of products and solutions
to help them keep power flowing to their homes and businesses. Our Cutler-
Hammer surge protection devices provide protection against the damaging
effects of lightning, utility switching and switching electric motors.”
“GE Energy Management designs technology solutions for the
transmission, distribution, management, conversion and optimization
of electrical power across multiple energy-intensive industries. ”
“Rockwell Automation, the world's largest company dedicated to
industrial automation and information, makes its customers
more productive and the world more sustainable. Throughout the
world, our flagship Allen-Bradley® and Rockwell Software®
product brands are recognized for innovation and excellence.”

16. Logistic & Trade Center
Top USA Global Apparel and Shoes Companies

17. Logistic & Trade Center
The Best Premium Cigars of the World