The Dominican Republicís most important trading partner is the United States (87% of export revenues); other markets include Canada, Western Europe, and Japan. The country exports free-trade-zone manufactured products (garments, footwear, etc.), nickel, sugar, coffee, cacao, and tobacco, and it imports foodstuffs, petroleum, industrial raw materials, and capital goods. On September 5, 2005, the Dominican Congress ratified a Free Trade Agreement with the U.S. and five Central American countries, known as CAFTA-DR. The stock of U.S. foreign direct investment (FDI) in the country in 2004 was $1.0 billion, up from $816 million in 2003, much of it directed to the tourism sector, to free trade zones, and to the telecommunications sector. Remittances were close to $3 billion in 2004.

An ongoing concern is the inability of participants in the electricity sector to establish financial viability for the system. Three national electricity distribution systems were privatized in 1998 via sale of 50% of shares to foreign operators; the MejÌa administration repurchased all foreign-owned shares in two of these systems in late 2003. The third, serving the eastern provinces, is owned and operated by U.S. concerns. About half of electricity billed goes unpaid, and distributors have made very slow progress in improving collections. Debts in the sector, including government debt, amount to more than U.S. $500 million, and generating companies are undercapitalized and at times unable to purchase adequate fuel supplies.