The Dominican Republic (DR) and Florida (FLA) are natural partners because of geographical proximity. DR is ideally located for market penetration in the Caribbean Basin and the rest of Latin America. FLA is also an excellent entry point for Dominican goods into the U.S. market, and Miami an international city where it is possible to conduct business both in English and Spanish. The proximity of DR to FLA and the two areas' language capability already facilitate healthy and prosperous partnerships; however, resources and opportunities remain unexploited or underutilized. Studies have shown that in FLA, the industries that are predicted to grow the most by 2005 are health care, high tech, and services.* Moreover, the biggest economic opportunity facing South Florida was found to be international trade.

Trade is key to FLA's productivity. FLA's service providers have great trade potential. Two-thirds of the world's purchasing power is outside the U.S. and only one-fourth of U.S. firms with the capacity to export actually do so. Even these firms meet only one-fourth of their overseas trade potential. The promotion of exports is important to Florida because it accounts for 78.1% of Florida's annual gross product. The results of the studies conducted by the Latin American Centers of the Florida International University (LACC) and the University of South Florida, confirm the stake that statewide vested economic interests have in expanding FLA's international services exports. In addition, it adds new impetus to public and private sector efforts, such as the one embodied by the DR/FLA task force, to boost international services exports while mutually reinforcing economic development in our respective regions. The DR enjoys the highest growth rate in the Caribbean. In fact, the DR achieved one of the three fastest growth rates in the world. This growth has reinforced the position of the DR as an attractive hub for foreign markets seeking to expand their markets and has led to increased levels of consumption among the population. The result has been an increase in the number of malls, franchise operations, restaurants, etc., which in turn has led to demands in construction, advertising, communications, and professional and technological services.

The services industry is also key to FLA's economy. DR continues to be agriculture oriented, but has moved toward industrial and service-oriented activities. FLA has a higher share of managers/professionals/technicians in its total labor force than the U.S. as a whole and is also at the apex of Internet technology. The Internet can assist Latin American buyers in launching business deals with Florida service providers. In turn, these providers can benefit from a level of Internet penetration projected to reach 50% of the Latin American population by 2010. In DR, Internet use has exploded from 18,000 users to 48,000 in just one year (1998-1999) and tenfold during the period 1996-2000.

The Dominican economy is further accentuated with communication services, tourism services, industrial export-processing zones and construction, establishing themselves as the economy's most dynamic sectors. Most foreign investments, and the bulk of Dominican exports into the U.S. and FLA center on Industrial Export-Processing Zones, which is the largest in the Caribbean Basin, and house 49% of U.S. companies. This sector enjoys exemption from import and consumption duties and value-added tax. Furthermore, the bulk of services exports recorded (89%) were travel-related. Two of the most important growth sectors for DR are tourism and telecommunications. Some 2.5 million tourists are estimated to have visited the country in 2000, and most visitors were from the U.S. (27%). These visitors undoubtedly traveled from Miami International Airport, since it has more flights to Latin America and the Caribbean than all other U.S. airports combined.

In order to build a strategic partnership between DR and FLA and promote prosperity and growth, the Fundación Global Democracia y Desarrollo (FUNGLODE) established the DR/FLA task force.

Economic realities dictate the need to strengthen FLA's economy via diversification and the targeting of key sectors and industries. By way of a strategic partnership, forming alliances with partners in the public and private sectors, we will be able to establish trade, commercial, and educational linkages, to maximize comparative advantages between FLA and DR, and develop a mutually beneficial relationship for the prosperity and enrichment of their people.