Santo Domingo.- Throughout these pages, we have highlighted that, in the face of the profound changes occurring in the global market, which are intensifying competition between countries and regions, the Dominican Republic is benefiting from a surge of opportunities, the exploitation of which depends entirely on our ability to respond. Furthermore, we have affirmed that the country is poised to compete and become the star of the Caribbean and Latin America in a context in which our main competitors—Chile, Mexico, Costa Rica, Panama, and Colombia—are beginning to lose their shine.
A recent CNN report confirms that this phenomenon is already underway: several US companies, eager to reconfigure their supply chains, are considering the Dominican Republic as a strategic solution.
Such is the case of World Emblem, the world’s largest manufacturer of clothing patches, whose clients include the U.S. Department of Homeland Security, UPS, the National Hockey League (NHL), and Levi’s. The company currently produces 65% of its patches in Aguascalientes, Mexico. However, the imposition of a 25% tariff by the U.S. government created enough uncertainty that its president, Randy Carr, decided to take a flight to the Dominican Republic in search of an alternative. It’s worth noting that World Emblem also produces another 30% of its products in China, which now faces a 30% tariff.
The company plans to move between 30% and 35% of its manufacturing capacity to the Dominican Republic and has already announced the immediate construction of a 9,300-square-meter plant, scheduled to open next year. With this strategic decision, World Emblem anticipates saving millions of dollars annually.
The report highlights several factors that make the Dominican Republic an attractive investment destination, including a stable government, a skilled workforce, geographic proximity to the United States, and a free trade zone regime that accounts for 60% of the national manufacturing industry. These zones, which operate with significant tax exemptions, represent a key economic incentive for companies.
Marino Auffant, founder of Auffant Global Advisory, a firm specializing in the development of public-private strategies aimed at promoting investment in manufacturing, highlights that several U.S. companies have recently begun or announced their relocation from China to the Dominican Republic.
Both the private sector and the Dominican government are mobilizing rapidly in response to this favorable situation generated by the transformation of global trade, aware that, as the proverb says: “Wisdom consists in recognizing the right moment and having the courage to act when opportunity knocks.”
