Crisis in local commerce: Dominican Federation of Merchants reports massive business closures
The Dominican Federation of Merchants, led by its president Iván García, has raised its voice in alarm regarding the alarming disappearance of local businesses in various parts of the national territory. According to the organization, the proliferation of Chinese-owned establishments has generated unfair competition that is displacing traditional Dominican merchants.
A visible impact on the main commercial arteries
The figures presented by the guild are conclusive. On the emblematic Duarte Avenue in Santo Domingo, out of a total of 91 merchants affiliated with the federation, only seven businesses survive. A similar situation is recorded in Moca, where the local association has seen its membership reduced from 33 to just five establishments.
It is across the entire country that these business closures are occurring due to unfair competition from the Chinese.
Iván García, president of the Dominican Federation of Merchants
García highlighted that this phenomenon is not new, as they have been reporting the issue since 2018. The leader pointed out that cities like Santiago have undergone a radical transformation, where streets that traditionally housed businesses of various nationalities are now predominantly dominated by Asian-owned shops, estimating that there are more than 1,000 such establishments operating in the country.
Greater oversight and tax equity demanded
Faced with this reality, the Dominican Federation of Merchants has made an urgent call to the General Directorate of Internal Taxes (DGII) to increase controls and oversight on these stores. The central concern lies in what they call a disparity in the rules of the game:
- Declaration of goods: There are questions regarding the abysmal differences in prices declared to Customs, where similar products have significantly lower entry values compared to local importers.
- Formalization: While formal merchants comply with rigorous control and invoicing mechanisms, a large portion of Chinese businesses operate without proper formal regulation.
The business leader emphasized that the goal of these complaints is to ensure a fair competitive environment, where all national market players comply with their tax and legal obligations under the same standards, thus protecting the stability of the Dominican commercial fabric.
