STATE TRADING

NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVII:4(A)
OF THE GATT 1994 AND PARAGRAPH 1 OF THE UNDERSTANDING
ON THE INTERPRETATION OF ARTICLE XVII

Dominican republic

The following communication, dated 17 December 2024, is being circulated at the request of the delegation of the Dominican Republic.

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The Permanent Mission of the Dominican Republic hereby forwards the notification on state trading enterprises for the period 2022-23.

I. ENUMERATION OF STATE TRADING ENTERPRISES

A.      Identification of state trading enterprises

National Price Stabilization Institute (INESPRE).

B.      Description of products affected (including tariff item number(s) encompassed in product description)

INESPRE is vested with the authority to select the products that come within its scope of action.

II. REASON AND PURPOSE

A.      Reason or purpose for establishing and/or maintaining state trading enterprise

INESPRE was established with the main purpose of "… regulating the prices of agricultural products when the situation of such products on the domestic market so requires, in the Institute's opinion, through the processes of supply and demand relating to these products" (Article 2, Law No. 526 of 11 December 1969). In addition to these functions, the Institute provides marketing services.

B.      Summary of legal basis for granting the relevant exclusive or special rights or privileges, including legal provisions and summary of statutory or constitutional powers

INESPRE was established by Law No. 526 of 11 December 1969. The law grants it autonomous status, its own resources and legal personality, with the authority to select agricultural and livestock products whose prices will be regulated and to establish its own purchase and sale prices for the products with which its deals.

III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE

A.      Summary statement providing overview of operations of the state trading enterprise.

INESPRE's mission is to contribute to agricultural development via actions and programmes that foster the efficiency, profitability and competitiveness of producers, through fair and organized marketing, ensuring access to quality food for all consumers. In other words, INESPRE seeks to offer support and provide services within the National Agricultural Marketing System in order to improve the profitability and competitiveness of agricultural producers and the purchasing power of domestic consumers, particularly those with lower income levels. Its vision centres around a Dominican Republic with guaranteed food security and INESPRE as an institution that is part of a collaborative system between public and private bodies in the agricultural sector.

In addition to its main purpose, INESPRE's operations consist of:

a._    providing agricultural producers with physical infrastructure for both cold and natural storage, on loan or lease, to enable them to cope with fluctuations in market behaviour;

b._    encouraging the establishment of markets in which the country's agricultural producers can market their crops, reducing the role of intermediaries and also benefiting consumers;

c._    establishing the price and market information system;

d._    encouraging the establishment of packing centres in the producing areas as a means of increasing the added value of agricultural production;

e._    establishing strategic reserves of sensitive products;

f._     facilitating the installation of rural IT centres for organized producer groups;

g._    identifying and promoting new investment opportunities in the area of agricultural marketing;

h._    establishing training and education centres for producers.

INESPRE programmes and services:

·_        Producers' markets: supports sales and local producers by providing an organized trade platform. This is a market or fair where producers and consumers meet for trading. The advantage of this type of activity is that producers can sell their crops directly to consumers. For the latter, this is extremely beneficial as they can acquire goods without the costs related to intermediaries.

·_        Mobile stores: aims to reach families living in extreme poverty, such as bateyes (sugar worker communities) and families in very depressed areas where producers' markets cannot be held.

·_        Fixed stores: offers agricultural products to the final consumer without the use of intermediaries, in dedicated fixed physical spaces, ensuring good prices and substantial benefits to producers.

·_        Feed yourself with INESPRE (Aliméntate con INESPRE): offers bundles of products in some main national supermarkets every Thursday, at prices lower than local market prices, increasing INESPRE's ability to help citizens buy basic food basket products in these stores.

·_        Training in agricultural marketing: provides information for small and medium-sized producers on the post-harvest phase and product quality, safety and marketing.

·_        Agricultural laboratory services: determines the quality and safety of agricultural products when required by public and private institutions that market, distribute and use the products.

·_        National Agricultural Participation Plan: developed jointly with the Ministry of Agriculture to provide training and marketing support to farmers throughout the national territory.

B.      Specification of exclusive or special rights or privileges enjoyed by the state trading enterprise.

INESPRE is vested with the authority to import agricultural products when domestic production is insufficient, as stipulated in Article 55 of the Agricultural and Livestock Promotion Law, as well as to export agricultural products when surpluses are produced. In addition, it operates on a State-approved budget that varies according to the needs of the Annual Operational Plan.

C.      Type of entities other than the State trading enterprise that are allowed to engage in importation/exportation and conditions for participation.

Any natural or legal person domiciled in the Dominican Republic may engage in import/export activities.

D.      How import/export levels are established by the state trading enterprise.

In recent years, INESPRE has only purchased and sold products on the local market.

E.       How export prices are determined.

In recent years, INESPRE has only purchased and sold products on the local market.

F.      How the resale prices of imported products are determined.

In recent years, INESPRE has only purchased and sold products on the local market.

G.      Whether long-term contracts are negotiated by the state trading enterprise. Whether the state trading enterprise is used to fulfil contractual obligations entered into by the Government.

Not applicable.

H.      Brief description of market structure

The market structure in the Dominican Republic is traditional with marketing channels for production/imports, wholesale, retail and consumers. It is a free market economy subject to trade control measures consistent with the WTO multilateral agreements.

IV. STATISTICAL INFORMATION (SEE ATTACHED TABLES I - III)

V.     REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE (AS APPROPRIATE)

VI. ADDITIONAL INFORMATION (AS APPROPRIATE)