Dominican senator proposes forced labor law to cut US tariffs

Senator Félix Bautista has submitted a bill to the Dominican Senate that would prohibit the importation of goods produced through forced labor, aiming to reduce the US tariff on Dominican exports from 12.5% to 10%. Source: elcaribedr The proposed law would align the Dominican Republic with other US trading partners—including El Salvador, Guatemala, Honduras, Mexico, and Malaysia—that already benefit from the lower rate. Source: listindiario

The cost

Bautista estimates the 2.5 percentage point difference costs Dominican exporters between US$127 million and US$182 million annually. Source: elcaribedr Using 2025 export figures of about US$8.1 billion to the US, the higher tariff represents over US$182 million in extra costs. Source: diariolibree The senator warns that this disadvantage could push some free zone companies, particularly in medical devices, to relocate to Mexico, risking jobs and foreign exchange. Source: diariolibree

The proposal

The bill would establish a legal framework to replace the existing Decree 502-26, which Bautista considers insufficient. Source: diariolibree It includes:

• A prohibition on importing goods made with forced labor, with the Customs Directorate handling procedures and the Labor Ministry as technical authority. Source: elcaribedr
• A public registry for confidential complaints by victims and sanctions including fines up to 100 public-sector minimum wages. Source: listindiario
• Due diligence and traceability obligations for exporters in high-risk sectors like textiles, agriculture, and mining. Source: elcaribedr

What's next

If approved, the law would enable the Dominican Republic to request the elimination of the 2.5% differential in diplomatic negotiations with the US. Source: elcaribedr The bill is now before the Senate for consideration.