ARLINGTON, VIRGINIA, US — A pair of policy directives signed into law by Dominican Republic President Luis Abinader just before the new year have put burgeoning exports of US rice to the country in the crosshairs, according to industry advocate USA Rice.
In 2024, rice exports by the United States to the Dominican Republic grew by 102% year to date, reaching $45.6 million, according to USA Rice. The directives were enacted just ahead of the market becoming fully open for US rice exports on Jan. 1, 2025, following the conclusion of a 17-year phase-out of quotas and duties as part of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).
On Dec. 2, Abinader signed into law a modification of a law in place since 2016 that is intended to strengthen the Dominican Republic’s capacity to ensure food security and sovereignty through a National Council to govern and coordinate a national plan.
The new law specifically calls for special measures on sensitive products. The term “sensitive product” is defined as a product that constitutes an essential food in the daily diet of the Dominican population and with a clear food self-sufficiency, into which rice falls, USA Rice said.
In that vein, Abinader on Dec. 17 signed a Presidential Decree that provides a 20% tariff within the existing World Trade Organization (WTO) quota for all rice imports, while outside of the WTO quota, all rice imports will face a 99% tariff. The decree also gives a 23,300 tonnes duty-free quota specifically to the United States with imports outside of that quota facing 99% tariffs.
Bobby Hanks, a Louisiana rice miller and chair of the USA Rice International Trade Policy Committee, said these policy directives come at a crucial point in the countries’ trade relationship.
“The spirit and purpose of the CAFTA-DR was to provide a reliable environment for long-term investment opportunities for both the United States and the Dominican Republic,” Hanks said. “It is frustrating to see yet another country slide back on its commitments and negatively impact US rice exporters despite the last decade of investing in resources and relationships in this important market.”
Hanks said USA Rice is confident the new Trump administration would take action to uphold CAFTA-DR market access commitments, while the association will continue to engage with the Dominican Republic through the US Department of Agriculture (USDA) and the Office of the US Trade Representative (USTR).
The Dominican Republic is essentially self-sufficient in rice, according to the Foreign Agricultural Service of the USDA, with milled production of 680,000 tonnes forecast in 2024-25 and consumption of 685,000 tonnes. The FAS had projected 35,000 tonnes of rice imports in 2024-25 following the elimination of tariff rate quotas under CAFTA-DR. In 2022-23, 98% of rice imports came from the United States, the FAS noted.
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Publish date : 2025-01-14 01:46:00
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