Cookie importers say local producers also get high profits

Two of the main cookie-producing companies established in the country —which claim to have suffered "serious damage" due to the increase in imports and have requested the Trade Defense Commission (CDC) an additional tariff of 67.1%— registered gross revenues that increased from RD$11,159 million in 2021 to RD$20,515 million in 2024, an accumulated increase of 84%, according to an analysis by economist Andrés Dauhajre Jr.

The figures, based on consolidated financial information from both companies, question the central argument presented to the CDC to justify the imposition of a safeguard that would raise the total tariff to 87.1% on imports of cookies from countries with which the Dominican Republic does not maintain free trade agreements. In the absence of verifiable evidence of losses, falling sales, or job deterioration, Dauhajre argues that the debate presented to the trade authority does not revolve around the survival of the local industry, but rather the effects that greater tariff protection would have on competition and the prices paid by consumers in a highly concentrated market. The behavior of the utilities reinforces that conclusion. In 2021, the year before the so-called "boom" in imports, the two companies recorded consolidated profits of RD$195 million. In 2022, those earnings increased to RD$665 million; in 2023 they rose to RD$1,873 million; and in 2024 they reached RD$2,322 million, twelve times more than in 2021. The highest level of profits also coincided with the year of the highest volume of imports. A comparative chart included in the analysis shows that, far from eroding profitability, the growth of imports occurred in parallel with a sustained increase in corporate profits, particularly in 2023 and 2024, when both variables reached historical highs. Employment also does not reflect a scenario of economic damage. Personnel expenses —which include salaries, benefits, and social security contributions— increased from RD$756 million in 2021 to RD$1,616 million in 2024, an increase of 114% in three years. Given that the increase in the minimum wage for large companies was substantially less in that period, the economist concludes that the growth in spending could only have occurred with a significant increase in the number of employees. The applicant companies have presented the financial information used to support their claim before the CDC as confidential, which has prevented its review by importers, consumers, or other market players. Dauhajre points out that, in processes of this nature, the indicators traditionally used to demonstrate "serious injury" include recurrent losses, sales contraction, job losses, or deterioration of financial capacity, elements that are not reflected in the available data.