LegiStorm

Summary:

The Dominican Republic, a country of roughly 10.3 million people that shares the Caribbean island of Hispaniola with Haiti, is a close U.S. trade partner and political ally in Latin America. The United States is the Dominican Republic's main trading partner, with two-way trade totaling more than $12.5 billion in 2014. In addition to trade, U.S. interest in the Dominican Republic has recently focused on anti-drug cooperation and governance/human rights issues, particularly as they relate to Haiti. U.S.-Dominican cooperation on bilateral and regional issues intensified during Leonel Fernández's most recent terms in office (2004-2008 and 2008-2012) and has continued during the Danilo Medina Administration. Led by former President Fernández and current President Medina, the center-left Dominican Liberation Party (PLD) has solidified its dominance over Dominican politics. In May 2010, the PLD captured two-thirds of the seats in the Dominican Congress; the party will remain in control of the legislature through May 2016. With President Medina constitutionally barred from seeking consecutive reelection, the PLD may again select Leonel Fernández as its standard bearer. Regardless, most observers are expecting the party to remain dominant in the 2016 election cycle. The main opposition party—the populist Dominican Revolutionary Party (PRD)—has remained divided for several years between supporters of its leader, Miguel Vargas Maldonado (who is widely expected to seek its nomination in 2016), and those of former President Hipólito Mejía (2000-2004). Mejía seeks to run in 2016 as the candidate of a new political movement. Inaugurated on August 16, 2012, President Medina, a former member of the Dominican Congress and minister of the presidency, has built upon his predecessors' legacy while seeking to resolve lingering challenges related to the country's fiscal situation, energy sector, and education system. Medina has implemented ambitious economic and social policies that have helped him maintain extremely high approval ratings (83% in January 2015). The Medina government has struggled, however, to implement a September 2013 Dominican Constitutional Tribunal ruling that many argue may place hundreds of thousands of Dominican-born persons, most of who are of Haitian descent, at risk of statelessness. The ruling has been widely condemned by the international community and strained Dominican-Haitian relations. In recent years, congressional interest in the Dominican Republic has focused on security, trade, and human rights issues. The United States is one of the largest bilateral donors to the Dominican Republic; in FY2014, assistance totaled some $25.3 million. FY2015 estimated assistance provided in P.L. 113-235 is not yet available. The Dominican Republic has also received at least $32.5 million through the Caribbean Basin Security Initiative (CBSI), a regional initiative for which Congress appropriated $327.0 million from FY2010-FY2014. For FY2016, the Obama Administration requested at least $24.4 million for the Dominican Republic and $53.5 million for the CBSI program. Bilateral trade and investment flows have expanded since the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) entered into force for the Dominican Republic on March 1, 2007. Human rights issues, particularly the treatment of Haitians in the Dominican Republic, have also been of significant interest to Congress. This report provides background information on political and economic conditions in the Dominican Republic, as well as an overview of some of the key issues in U.S.-Dominican relations.