The Italian Legacy in the Dominican Republic

THE ITALIAN LEGACY IN THE DOMINICAN REPUBLIC

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Similarly, the Italian private sector has been important through Foreign Direct Investment (FDI). In 2019,

FDI by Italy totaled US$57 million, according to data from the Central Bank. Italy was ranked as the eighth

highest investing country in terms of FDI destined for the Dominican Republic. During the last decade, in-

vestment by that country reached US$203 million. This amount was the fourth largest invested by European

countries, after Spain, France, and the Netherlands.

Italian FDI in the Dominican Republic is favored by the Reciprocal Investment Promotion and Pro-

tection Agreement (RIPPA), which has been in effect since 2007. This agreement includes the clauses of

National Treatment and Most Favored Nation Treatment; therefore, investments from Italy are protected

against discrimination based on their origin and against investments from other countries in our territory.

The agreement protects investments from direct and indirect expropriation made without just compen-

sation for the investor. Likewise, RIPPA allows for, with some exceptions, the free repatriation of capital,

profits, and revenue from investment.

Another advantage provided for under this agreement allows the investor to, in the case of non-obser-

vance of the substantial protections provided for in the Bilateral Investment Treaty (BIT), bring the State

before international arbitration tribunals to settle disputes. This particular approach is provided without the

need to exhaust internal legal procedures. Therefore, it constitutes an additional guarantee for the Italian in-

vestor in our country. However, we are aware that this necessary mechanism should always be considered as

a last recourse and used only in exceptional cases.

Genova.