U.S. products and services enjoy a strong reputation for quality and are highly competitive, due in part to CAFTA-DR. Consumer attitudes and brand preferences are similar to those in the United States and many major U.S. franchises are present in the country. Television shows from the United States and other media are widely available and popular. Dominicans travel frequently to the United States for business, vacation, medical treatment, study, or to visit family.
As a signatory of CAFTA-DR, the country stands to benefit from the issuance of licenses to import U.S. shale gas in liquefied (LNG) or compressed form. Access to this energy continues to help diversify its energy grid. The private sector in the DR is leading the transition to greater use of natural gas, and increasingly renewables, in power generation.
Whether in traditional or renewable energy, there are opportunities for U.S. operators and suppliers in the construction or conversion of power generating facilities. President Abinader has pledged that the Dominican Republic will reach a target of 25% of energy generation from renewable sources by the end of 2025 and 30% by 2030 as part of its National Development Strategy. The GODR’s efforts to encourage the generation of clean and renewable energy include generous tax incentives for investors in the sector but do not include commitments to purchase the electricity produced (beyond Power Purchase Agreements, often secured through tenders). While the previous fiscal reforms reduced tax incentives for producers of renewable energy, the medium- to long-term prospects for renewable energy products and services remain very promising, with authorities launching new tenders that include energy storage.
The DR’s membership in CAFTA-DR as well as its participation in the Alliance for Development in Democracy (ADD) have the potential to accelerate manufacturing in the DR’s numerous FTZs and allow the country to compete more effectively against products from China and Southeast Asia. The DR’s strategic geographic location, competitive labor costs, modern shipping and port infrastructure, and FTZs all bode well for continued growth, particularly as China and other countries’ labor and transportation costs increase. Additionally, President Abinader has publicly stated that Chinese investment will not be allowed into critical infrastructure.
In July 2025, the Abinader administration successfully enacted Law No. 47-25 on Public Procurement and Contracting, which repeals and replaces the previous law, moving beyond the interim executive regulation. The DR continues to build on the 2020 Public-Private Partnership Law (PPP), awarding its first public-private partnership tender in 2023, and continuing to see fruit from that law, which created an alternative to the public procurement process driven by private sector proposals. While the full implementation of these commitments remains incomplete, the U.S. embassy is encouraged by the DR’s ongoing push to implement international best practices of transparency and competition in procurement. Should these efforts be successful, U.S. companies may be more competitive locally and could see increased opportunities in the local market.
The DR is the number one tourist destination in the Caribbean. A record 11.2 million non-resident visitors visited the country in 2024. Consequently, the hotel, bar, and restaurant sector grew 9.6 percent in 2024, helped by significant tax incentives for tourism development. This sector presents a dynamic and growing opportunity for US exporters in a range of industries (i.e., construction, hotel & restaurant equipment, agricultural products, etc.) that are necessary to support and grow the DR’s tourism sector. The DR and the U.S. signed an Open Skies agreement in 2024, increasing travel connections between the two countries.
Since January 1, 2025 nearly all of the goods entering the country from CAFTA-DR countries enter with no tariff, with the exception of rice. In most of the industry sectors, CAFTA-DR gives significant advantages to U.S. exporters over non-CAFTA competitors.
Leading industry sectors for U.S. exports include the following: air conditioning and refrigeration equipment; automobile parts and services; building products; hotel and restaurant equipment; medical equipment; printing and graphic art equipment and supplies; renewable energy; safety and security equipment and supplies; and telecommunication equipment. In addition, the DR is the fourteenth largest destination for U.S. agricultural products in the world, importing $2.2 billion in 2024.