Updated August 26, 2021
Dominican Republic
The Dominican Republic occupies the eastern two-thirds of
Since that time, the Dominican Republic, for the most part,
the Caribbean island of Hispaniola, which it shares with
has seen steady economic growth and developed
Haiti. The Dominican Republic is a key U.S. partner in the
democratic institutions. Led by former Presidents Leonel
Caribbean because of its comparatively large size, strong
Fernández (1996-2000, 2004-2012) and Danilo Medina
economy, and relative stability. The United States and the
(2012-2020), the center-left Dominican Liberation Party
Dominican Republic have maintained close commercial ties
(PLD) dominated Dominican politics.
under the Dominican Republic-Central America-United
States Free Trade Agreement (CAFTA-DR) and cooperated
Political Situation
on regional security concerns under the Caribbean Basin
Internal divisions within the PLD led to the party’s defeat in
Security Initiative (CBSI).
July 2020 elections. Presidential and congressional
elections held on July 5, 2020, were a victory for opposition
Figure 1. Dominican Republic Facts
candidate Luis Abinader and the Modern Revolutionary
Party (PRM). Originally scheduled for May 2020, electoral
officials postponed the elections due to the Coronavirus
Disease 2019 (COVID-19) pandemic. Abinader, a
businessman standing for the Modern Revolutionary Party
(PRM), won the presidency with 53% of the vote, foregoing
the need for a runoff. The PRM also won a majority in the
Senate and Chamber of Deputies. The PLD now is the
primary opposition party.
After a year in office, Pres ident Abinader remains popular
(68% approved of his mandate in a July 2021 poll). The
Abinader government has managed the health and
economic effects of the COVID-19 pandemic, prioritized
transparency and anti-corruption, and developed a climate
resilience plan focused on boosting renewable energy use.
COVID-19
In August 2020, the Dominican Republic had the highest
per capita infection rate in the Caribbean, and its hospitals
were at or over capacity for COVID-19 patients. The
incoming government increased the number of citizens

covered by the public health system and got commitments
Sources: CRS graphic. Map data from the International Monetary
to secure enough vaccines to immunize all of its citizens,
Fund (IMF), U.N. Economic Commission on Latin America and the
with a focus on vaccinating workers in key sectors,
Caribbean (CEPAL), and Trade Data Monitor (TDM).
including tourism. As of August 18, 2021, the government
Background
had fully vaccinated 41.6% of the population, higher than
most other countries in Latin America and the Caribbean.
After fighting to achieve its independence from Haiti in
With 3,985 deaths attributed to COVID-19, the mortality
1844 and later from Spain in 1865, the Dominican Republic
rate in the Dominican Republic is also comparatively low.
embarked on a bumpy road toward democracy that included
coups, dictatorships, and U.S. interventions (1916-1924 and
Corruption
1965-1966). Rafael Trujillo ruled the country as a dictator
Reflecting the Dominican Republic’s persistent challenge
from 1930 until his assassination in 1961, employing
with corruption, the country ranked 137 out of 180
violent tactics to quell opposition. Trujillo’s anti-
countries in Transparency International’s 2020 Corruption
communist stance earned him tacit U.S. support. Trujillo’s
Perceptions Index. The country’s relatively weak judicial
successor, Joaquín Balaguer, served as president from
system has been ineffective in tackling most corruption.
1960-1962, 1966-1978, and 1986-1996. Due to the
Upon election, Abinader named the local representative of
dominance of these leaders, the Dominican Republic did
Transparency International as head of government
not develop into a modern democracy until the 1990s. In
procurement and appointed an independent attorney
1994, an agreement commonly referred to as the Pact for
general. The attorney general is pursuing high-profile
Democracy removed Balaguer from power and paved the
corruption cases against her predecessor and former
way for the country’s first free and fair elections in 1996.
President Medina’s chief of security and health minister.
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Dominican Republic
Abinader encouraged his minister of youth to step down
campaign, have helped the construction, mining, and
after she came under investigation in December 2020.
tourism sectors rebound, with growth forecast to reach
6.2% for 2021.
Drug Trafficking
According to the State Department’s 2021 International
The Dominican Republic continues to face economic
Narcotics Control Strategy Report (INCSR), most cocaine
challenges. The country ranked 115 out of 190 countries
transiting the Caribbean passes through the Dominican
included in the World Bank’s 2020 Doing Business report,
Republic, primarily through maritime routes. According to
performing relatively poorly on the ease of starting a
the INCSR, drug seizures by Dominican forces demonstrate
business, getting electricity, accessing credit, paying taxes,
their capacity to stop drug flows, but corruption hampers
and enforcing contracts. Although the Dominican Republic
U.S.-Dominican cooperation efforts. Dominican military
has made progress in improving social indicators in recent
data assert that cocaine seizures for the first half of 2021
years, poverty increased from 21.0% in 2019 to 23.4% in
totaled 7,000 kilos, nearly matching the total for all of
2020 due to the pandemic, and income inequality persists.
2020. A Dominican drug kingpin César Emilio Peralta,
sanctioned in 2019 under the Foreign Narcotics Kingpin
U.S. Relations
Designation Act (21 U.S.C. 1901 et seq.), has been arrested
The Dominican Republic enjoys a strong relationship with
in Colombia and is to be extradited to the United States.
the United States, with extensive cultural, economic, and
political ties. Currently, more than 1.1 million Dominicans
Relations with Haiti
reside in the United States. Total U.S. foreign assistance to
The Dominican Republic experiences periodic disputes
the Dominican Republic (obligations, latest full-year
with Haiti, its neighbor and second-largest export market.
available) amounted to $52.4 million in FY2019. That total
The citizenship status and treatment of people of Haitian
included bilateral aid, as well as CBSI funds, Department of
descent living in the Dominican Republic has been a source
Defense assistance, and Peace Corps funding. Under the
of tension between the two countries. In June 2018, the
CBSI, the United States has provided the Dominican
Dominican Republic published a survey that found that,
Republic with support since FY2010 to reduce illicit drug
despite efforts to register people of Haitian descent since
trafficking, train police and prosecutors, and provide
2014, only 31% of that population possessed documents
educational and job training programs for at-risk youth.
required for public benefits and formal sector jobs.
U.S. bilateral aid to the Dominican Republic totaled $28.6
Tensions have been high along the Dominican-Haitian
million in FY2020 and an estimated $30.75 million in
border, a porous region where migrant smuggling and other
FY2021, some $23.3 million of which was for global
illicit activities are common. In February 2021, the
health. The Biden Administration requested $28.5 million
Dominican government announced the construction of a
in bilateral aid for the Dominican Republic for FY2022.
border barrier would commence in late 2021. President
From FY2017 to FY2021, U.S. humanitarian aid to support
Abinader closed the border following the July 2021
the Dominican government in sheltering Venezuelan
assassination of Haitian President Jovenel Moïse, but
migrants (which numbered 114,500 as of July 2021) has
humanitarian aid has entered into Haiti from the Dominican
totaled some $2.7 million. U.S. assistance to address
Republic. The Dominican government has supported search
COVID-19 in the Dominican Republic has exceeded $4
and relief efforts in Haiti following the recent earthquake.
million and incudes the provision of two field hospitals.
Relations with China
The U.S.-Dominican economic relationship encompasses
In May 2018, the Dominican Republic switched recognition
extensive investment, trade, remittance, and tourism ties.
of Taiwan in favor of establishing diplomatic relations with
U.S. foreign direct investment on a historical-cost basis
the People’s Republic of China. China reportedly promised
stood at roughly $274.5 million in 2020. Total trade
major investments, few of which have occurred. President
increased from $9.8 billion (pre-CAFTA-DR) to $14.7
Abinader has stated that China is no longer welcome to
billion in 2019 before falling to $12.7 billion in 2020 due to
invest in strategic sectors, such as ports and infrastructure.
the pandemic. In 2020, Dominicans abroad, primarily in the
United States, sent a record $8.3 billion in remittances
Economic Conditions
(10.6% of GDP). U.S. tourists account for the largest
The Dominican Republic has been among the fastest-
number of foreign visitors to the country.
growing economies in Latin America and the Caribbean,
with estimated 5.1% GDP growth in 2019. The country has
Bilateral trade and labor disputes have periodically arisen.
the largest stock of foreign direct investment and the most
The U.S. Department of Labor continues to monitor how
diversified export structure of any U.S. partner country in
the Dominican government is working to reduce the use of
CAFTA-DR. High pre-pandemic economic growth was
forced and child labor. The Dominican Republic earned a
fueled by foreign investment, telecommunications and
Tier 2 ranking in the State Department’s 2021 Trafficking
mining sector performance, remittances, and tourism.
in Persons report, an improvement from its 2020 rank.
Due to the pandemic, the economy contracted by 6.7% in
Clare Ribando Seelke, Specialist in Latin American
2020, according to International Monetary Fund (IMF)
Affairs
estimates. The Abinader government used fiscal stimulus to
Rachel L. Martin, Research Assistant
cushion the economic impact of pandemic-related job
losses. U.S. demand, combined with the vaccination
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Dominican Republic


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