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Dominican Republic, U.S. poised for deal

February 28, 2007, 10:49AM EST

SANTO DOMINGO, Dominican Republic

The Dominican Republic is nearing completion of a long-awaited trade agreement with the United States, President Leonel Fernandez said in his annual address to Congress.

Only a dispute over fuel transportation rights remains to be resolved, Fernandez said in his Independence Day speech Tuesday.

Fernandez, who is campaigning for re-election, said he expects the accord to come into effect as early as next week and called it essential to the recovery of the country's beleaguered export sector, which has been damaged by competition from China and Vietnam in the U.S. market. The Dominican Republic's free-trade zones, which produce 80 percent of its exports, have lost 40,000 jobs -- about 20 percent -- in the last three years, according to an industry report.

U.S. Ambassador Hans Hertell said after Fernandez's speech that the White House also hopes to have the free-trade agreement in force within days. "I can assure you that they are doing everything possible," he said.

The agreement is expected to boost exports of textiles to the United States and increase food imports into the Dominican Republic. The Dominican Republic is one of six Latin American signatories to the U.S.-backed trade deal.

Independence Day marks the country's 1844 defeat of an occupation force from neighboring Haiti.