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Country flag Dominican Republic

Last updated in March 2005

Political relations

German tourism, investment and development cooperation are important factors in political relations between the Dominican Republic and Germany. There is a colony of around 25,000 Germans who have settled in the country, mostly on the northern coast (Puerto Plata, Sosua).

Economic relations

Economic relations between Germany and the Dominican Republic intensified greatly in the upswing years at the end of the nineties in particular. There was a marked increase in German investments in this period and German companies were very interested in the Dominican Republic. This positive trend was disrupted, however, by the economic crisis at beginning of 2003.

Since the change of government in August 2004, the Dominican government has taken a variety of measures to stabilize the economy in concert with leading international organizations, most of which have already been successful and contributed to a tangible recovery. With quite bright prospects and the improvement in the investment climate overall, German enterprises' propensity to invest is likely to pick up again in the foreseeable future.

A number of major German companies and small and medium-sized businesses are already operational in the country or have conducted project negotiations. The Dominican government is especially interested in German products in alternative energy to solve problems in the power sector.

In 2003, German exports to the Dominican Republic amounted to approx. EUR 100 million, a further decline compared with the previous years (2002: EUR 164.4 million; 2001: EUR 181.8 million). German imports from the Dominican Republic dropped in 2003 to approx. EUR 48.6 million (2002: EUR 59.2 million). Germany is the biggest European market for ecological products from the Dominican Republic and a German firm for ecostandards has set up business in the country.

A friendship, trade and shipping agreement dates from 13 December 1957 as well as an air traffic agreement from 23 July 1992. Since 1994, there has been a German-Dominican Chamber of Commerce which has 138 members and has been admitted to the German Regional Chamber of Commerce for Central America and the Caribbean. It is also a founding member of the European Chamber of Commerce in the Dominican Republic. An investment protection agreement between Germany and the Dominican Republic is currently in preparation.

Development cooperation

Development cooperation is of particular importance in bilateral relations. According to the United Nations Development Programme’s (UNDP) 2003 Human Development Report, the Dominican Republic ranks in the midfield of 173 countries on the United Nations Human Development Index. Despite its own successful efforts (e.g. tourism, private sector), it still requires international support to improve developmental indicators. It occupies a low regional position as measured against major poverty indicators. According to the UNDP, every fourth Dominican is poor.

Germany makes an important contribution under Technical and Financial Cooperation. Priorities in German assistance are the sustainable use of natural resources, decentralization and municipal development. Development cooperation with Germany up to and including 2003 totalled more than EUR 235 million. Germany is thus a major bilateral donor alongside Spain, France and the US. At the last bilateral talks on development cooperation in Santo Domingo in spring 2003, Germany pledged EUR 9.4 million in new funds for a two-year period. The next intergovernmental consultations on development cooperation are planned for 2005. The Dominican Republic is one of the main beneficiaries of German development assistance in the region.

Aside from this, Germany is a leading contributor to development finance in the European Union for the Dominican Republic: The total volume of projects and programmes agreed with the Dominican Republic under the European Development Fund currently amounts to EUR 270 million and Germany contributes 23% of this sum.

Cultural relations

Partly as a result of tourism, there has been a tangible increase in interest in Germany, the German language and the German cultural presence in the country. Germany is seen as a key nation in terms of business and technology but also in terms of culture. The language courses organized by the Embassy have been popular for many years. Civic cultural contacts are also on the increase. Early in 2001, the Dominican government gave the German-Dominican Cultural Association a house in the old colonial town (World Cultural Heritage) for use as a German-Dominican cultural centre (co/Isabel La Católica No. 212, Zona Colonial, Santo Domingo). The house was restored with funds provided by the German government and the Association as well as with donations from German business. Since then, the Centro Dominico-Aléman has been a venue for diverse cultural events. In spring 2004, it exhibited works by the well-known German artist Karl Hurm, one of the leading contemporary representatives of so-called Art Brut or Primitive Art. The Leipzig String Quartet also performed there and North-Rhine Westphalia’s Youth Jazz Orchestra played in September. In November 2004, concerts were performed by the Trossing wind ensemble i fiati. Art exhibitions, concerts and a theatre performance are planned for 2005.

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