President Luis Abinader has scrapped a 2024 decree that imposed steep tariffs on rice imports, removing a trade barrier that had become a flashpoint in talks with Washington over agricultural market access under DR-Cafta.
Dominican Republic repeals rice import tariffs
The repeal matters because rice is a politically sensitive staple in the Dominican Republic and one of the most protected farm sectors in the region. The earlier decree set a 20% ad valorem tariff on some rice imports within the country’s WTO quota and a 99% rate on shipments outside that quota, while also giving U.S. rice a tariff-free allowance of 23,300 metric tons.
By canceling that regime, Santo Domingo is signaling a willingness to align more closely with its market-access commitments to the United States. That should ease trade friction with the Office of the U.S. Trade Representative, which publicly pushed for the measure’s removal, and lower the risk of a broader dispute over agricultural imports.
For domestic producers, the change opens the door to more competition in a market where local output already covers most demand. The Dominican Republic consumes about 65 kilograms of rice per person annually, and local production in 2024 was about 680,000 tons, or roughly 96% of consumption, according to DASA.
That heavy dependence on homegrown supply is why the issue has been so sensitive. Rice growers have argued that protection is needed to preserve farm incomes and food security, while importers and trade officials have pushed for more predictable access under DR-Cafta and the WTO framework.
The repeal also has wider investor relevance because it reduces the odds of retaliation or prolonged negotiations between the Dominican Republic and the U.S. over agriculture. It may also pressure local rice prices if imports rise, but it should help retailers and food buyers that have been caught between tight supply and tariff costs.
The decree orders the repeal to be communicated to the finance, agriculture, industry and customs authorities, underscoring that the policy shift is immediate. Investors will now watch whether the government follows up with a new import regime, how U.S. shipments respond, and whether domestic producers seek fresh protections as the 2025 DR-Cafta tariff schedule is reset.
| Entity | Gains | Losses |
|---|---|---|
| U.S. rice exporters | ▲Better market access | ▼Fewer tariff barriers to overcome |
| Dominican consumers | ▲Lower import costs possible | ▼Less protection from foreign competition |
| Dominican rice farmers | ▲Clearer policy path if support follows | ▼Higher competitive pressure |
| Government trade negotiators | ▲Easier U.S. relations | ▼Less room to shield domestic producers |
