JETCO between India and Dominican Republic

Context

The Union Cabinet has given approval for the signing of a protocol to establish a Joint Economic and Trade Cooperation (JETCO) between India and the Dominican Republic.

Joint Economic and Trade Committee (JETCO)

• JETCO is a multilateral organisation that was created by two partners for the implementation of strategies aimed to develop trade-economic cooperation between the countries.
• The key purpose of the platform is to make the conversations, the sharing of the information, and exchanges of ideas easy and effective among the participating countries. 
• The participants should be able to develop robust economic ties, enhance trading activities, and address the obstacles in the area of exporting and importing goods and services.
• The ultimate aim is to strengthen the economies, grant trade and industry a big nudge, in order to get that extra push needed and to overcome any challenges present in the way our countries import and export their goods and services.
• Latin America and the Caribbean encompass a group of large and diverse markets. Thus, the importance of this agreement embodies the prospects for cooperation and enhanced access to the markets of this region.
• The adoption of this protocol enables countries to enter these commercial markets which they are not aware of and find new business leads from the region.
• Following India, many other nations have also signed similar joint committees on economic and trade relations with various other countries called the Joint Economic and Trade Committee (JETCO).
• Some of the countries which they can discuss are the UK, Singapore, Thailand, Indonesia, Malaysia, Vietnam, South Korea, Canada, Mauritius and Oman

Dominican Republic

• The Dominican Republic occupies the eastern two-thirds of Hispaniola, sharing the island with Haiti to the west. It is bordered by the Atlantic Ocean to the north and the Caribbean Sea to the south.
• Capital: The oldest European settlement in the Americas, Santo Domingo was found in1496 and is the oldest continuously inhabited. This is also the seat of 1st Spanish colonial rule in the New World.
• History: The island had been settled by the Taíno people a long time before Columbus made an impromptu stop there in 1492 during his voyage to the Americas. The Dominican Republic had gained its first independence from Spain back in 1821 for a little while, got back Spanish rule, but then won her war of independence in 1844 and became a sovereign state.
• Economy: The second largest in the Caribbean and Central American countries. Economy had a reliance on agriculture; sugarcane and intercrop productions were part of this. Yet, it now has diversified its sectors of trade such as services, tourism, and manufacturing.
• Government: A popular representative democracy with multiple parties structure. The President is both the head of the state and the head of the administrative structure of the country.
• Challenges: The Dominican Republic has to deal with many obstacles like inequality, corruption or being easy prey of hurricanes.

Overview of India-Dominican Republic Economic Relations

• The JETCO agreement includes measures to simplify trade procedures, reduce tariffs, and collaborate in sectors such as IT, healthcare, and renewable energy. 
• It is expected to boost bilateral trade, attract investments, and create jobs. 
• Compliance with the agreement involves overcoming regulatory obstacles, harmonising standards, and promoting sustainable and inclusive growth. 
• There are opportunities for further economic cooperation, digital transformation, and cultural ties. 
• The JETCO is a platform to trade and platform supply chain diversification.
• The fact of the agreement is very relevant and means that it will play a great role in the global economic relations and can have a good influence on connections between regions.

Conclusion

The Joint Economic and Trade Cooperation between India and the Dominican Republic represents a milestone in their bilateral relations. With a comprehensive framework aimed at enhancing trade and investment, JETCO is poised to bring substantial economic benefits to both countries. The partnership underscores the commitment to mutual growth, setting a precedent for future collaborations and paving the way for a robust economic alliance in the global arena.

Source: livemint

UPSC Mains Practice Questions

Q.Discuss the significance of the Joint Economic and Trade Committee (JETCO) established between India and the Dominican Republic for bilateral economic cooperation.

Download as PDF