Posted by Diarolibre on Friday, February 2, 2018 Under: Haiti/Dominican relations
The Dominican Steel Association (Adoacero) revealed that the export of that product to Haiti has collapsed up to 90% since 2015, when the neighboring country banned the entry of 23 products on land, as it was lifted, but it continued affecting the steel.
In a press release, Adoacero says that the official data of its members show reductions of between 80 and 90% of the exports of finished steel produced in the country in the years 2016 and 2017, when compared with that of the 2015 period.
The executive director of Adoacero, Alfredo Baduí, described the situation as worrisome, since, he says, such a drastic downturn in a market as important as the one in Haiti threatens the safety and productivity of the industry, so, he said, it is necessary that the management of place be done to be able to lift said closure.
"This land closure only benefits informal commerce; It is damaging Dominican production and the Haitian government is not increasing its revenues because what has happened is that informality has exploded, "said Baduí.
He explained that "the reduction of volumes generates lower economy of productive scale, causing decrease in the utilization of productive capacity and therefore of indirect jobs that can hover around 200 seats between production, logistics and other lines within the value chain" .
For 2013, the participation of the Dominican Republic in the Haitian finished steel market was 61%, while at present it has been reduced to barely 6%, he says.
"Our country is losing competitiveness as a result of the closure. While before we were the main exporter of steel to Haiti, we are now at the bottom of the list, and our position has been taken over by Turkey and China, which represent 58 and 33% of the market respectively, "said Baduí.
The land closure has forced Dominican steel to be exported to Haiti by sea, which according to Adoacero has increased the logistical cost of the local product to that market by more than 80%.
He concluded that a situation similar to that of steel is also being experienced by local cement manufacturers, a product that has also been banned by the Haitian authorities.