I.  COMMERCIAL OVERVIEW

THE DOMINICAN REPUBLIC IS THE SEVENTH LARGEST MARKET FOR
U.S. PRODUCTS IN ALL OF LATIN AMERICA.  IT IS A GROWING
MARKET FOR MORE THAN $2.3 BILLION DOLLARS WORTH OF U.S.
EXPORTS EACH YEAR.

U.S. EXPORTS TO THE DOMINICAN REPUBLIC GREW BY 12%, FROM
US$2.1 BILLION IN 1992 TO US$2.3 BILLION IN 1993.
BILATERAL TRADE BETWEEN THE DOMINICAN REPUBLIC AND THE
UNITED STATES REACHED US$5 BILLION IN 1993.

FREE TRADE ZONES AND TOURISM ARE THE TWO MOST DYNAMIC
SECTORS IN THE DOMINICAN ECONOMY.

BETWEEN 1990 AND 1993, THE NUMBER OF OPERATING FREE ZONE
COMPANIES GREW FROM 380 TO 462 (21%).  TOTAL DIRECT
EMPLOYMENT INCREASED AT AN AVERAGE ANNUAL RATE OF 19.5%,
ACCOUNTING DIRECTLY AND INDIRECTLY FOR OVER 8% OF NATIONAL
EMPLOYMENT.  THE DOMINICAN FREE TRADE ZONE PROGRAM IS ONE
OF THE LEADING FOREIGN EXCHANGE GENERATORS IN THE COUNTRY
AND ACCOUNTED FOR 50% OF TOTAL DOMINICAN EXPORTS IN 1993.
THERE ARE CURRENTLY 28 OPERATIONAL ZONES.  TWO ADDITIONAL
PROJECTS ARE BEING DEVELOPED.

THE TOURISM INDUSTRY ALSO CONTINUED TO GROW IN 1993.  THERE
ARE 26,800 HOTEL ROOMS IN THE DOMINICAN REPUBLIC.  US$1
BILLION WAS GENERATED BY THE TOURISM INDUSTRY IN 1992, WHEN
1.3 MILLION TOURISTS VISITED THE COUNTRY. US$1.2 BILLION
WAS GENERATED IN 1993 (WITH 1.7 MILLION TOURISTS).

THE BUSINESS ATTITUDE TOWARDS THE U.S. IS FAVORABLE IN THE
DOMINICAN REPUBLIC.

PRINCIPAL COMPETITORS INCLUDE JAPAN, SPAIN, ITALY, GERMANY,
FRANCE, KOREA AND TAIWAN TO VARYING DEGREES, BUT THE U.S.
IS THE DOMINANT SUPPLIER WITH APPROXIMATELY 65% OF THE
TOTAL MARKET.