Common Ground

The Republic of China and the Dominican Republic established diplomatic ties in 1941. How have their economic and trade relations developed since that time?

Taiwan and the Dominican Republic enjoy solid diplomatic relations. Bilateral trade has increased steadily over the years and both countries are committed to advancing economic and trade exchanges. Each has its own industrial advantages, which are complementary in nature. We would like to help the DR develop markets for its commodities in Taiwan and elsewhere in Asia-Pacific through the Taiwanese business network. Dozens of Taiwanese companies provide over 3,000 jobs in the Dominican Republic. The largest Taiwanese investment project, which amounts to USD110 million, is a new solar power plant in Monte Plata.

What advantages does the DR have to offer Taiwanese companies?

As of June 2016, domestic and overseas Taiwanese businesses had invested a total of USD168 million in 57 companies in the DR, creating about 3,000 jobs. Such investments were concentrated in solar power generation, the manufacturing and processing of footwear, plastic bottles and bags, toilet paper, construction materials and the import and marketing of automobile components, computers, and peripheral devices. As of July 2016, there were six cases of investment totaling USD3.1 million from the DR in Taiwan’s electronic component manufacturing, wholesale and retail, hospitality, and catering industries.

Taiwan and the DR have held several talks on an FTA. Bilateral trade reached USD139.5 million in 2015 and rose 11% in the first half of 2016. What are the prospects for Taiwan signing an FTA with the DR?

An FTA would not only help the DR expand its business opportunities in Taiwan and other parts of Asia, but also attract Taiwanese investment in the DR. This would enhance bilateral industrial cooperation and increase both countries’ global competitiveness. Taiwan and the DR are complementary in terms of their degree of economic development, industrial structure, and technical level. Neither is a major trading partner of the other. Signing an FTA and opening up market access to one another would contribute significantly to economic development and bilateral cooperation, while giving an edge to competitive Dominican products in the Taiwanese market. Taiwan, which enjoys geographic advantage between the Americas and Asia, is situated in the center of East Asia with such regional neighbors as mainland China, Japan, South Korea, and the Southeast Asian nations. The signing of a Taiwan-DR FTA would facilitate the establishment of strategic alliances between our industries that would open up avenues through Taiwan’s marketing network for Dominican products to reach other Asian markets.

What are your views on Taiwan’s relations with the DR?

We attach great importance to our longstanding and cordial diplomatic relations with the DR. We hope to strengthen bilateral economic, trade and investment cooperation, implement projects that bring economic prosperity and improve people’s livelihoods in both countries, and create a win-win relationship based on reciprocity and mutual assistance. Taiwan and the DR could build on their amicable relations to promote cooperation programs that meet the development needs of both countries, leverage the comparative advantages manifested in their technical expertise and practical experience, offer mutual assistance, and yield mutual benefits. This would not only help realize the policy of steadfast diplomacy introduced by President Tsai Ing-wen, but would also be in the spirit of paso firme, which President Danilo Medina has upheld throughout his administration and which has brought about economic success, social stability, a higher quality of life, and more job opportunities. We hope that such efforts will help deepen bilateral cooperation while also adhering to the principles of reciprocity and mutual assistance. To encourage Taiwanese businesses to invest in the DR and form partnerships with local companies, we have introduced concrete administrative measures and offered incentives under the Regulations Governing Financial Assistance to Encourage Business Entrepreneurs to Invest in Countries Having Diplomatic Ties with the Republic of China (Taiwan). Several investment mechanisms have also been established, including overseas investment financing and credit guarantees by the International Cooperation and Development Fund and the Overseas Community Affairs Council, as well as an overseas investment loan fund set up by the Overseas Export-Import Bank of the ROC. These efforts have not only contributed to Taiwan’s industrial development and greater global presence, but have also increased our diplomatic allies’ national strengths and contributed to our diplomatic synergy. Given that both our countries enjoy geographic advantages, Taiwan could serve as the gateway to Asia for Dominican products, while the DR could serve as our bridge to the Latin American market, thereby creating a win-win situation.