	Background

The Dominican Republic is situated on the eastern two-thirds of the Caribbean island of Hispaniola, which it shares with Haiti (see Figure 1 ). In May 2010, Férnandez's PLD party captured 31 of 32 seats in the Dominican Senate and 105 of 183 seats in the Chamber of Deputies. It will control both chambers through May 2016. Upon taking office, President Medina endorsed austerity and fiscal reform. Buoyed by a large congressional majority and high approval ratings (83% in a January 2015 poll), President Medina has implemented a variety of new social programs that have already yielded positive results. If the Dominican Republic rendered thousands of Dominicans of Haitian descent stateless and deported some of them to Haiti, the potential impact on Haiti could be significant. If Medina does not run in 2016, the PLD may again select Leonel Fernández as its standard bearer for a fourth time. Regardless, most observers are expecting the party to retain the presidency in 2016. The main opposition party—the populist Dominican Revolutionary Party (PRD)—has remained divided for several years between supporters of its leader, Miguel Vargas Maldonado (who is widely expected to seek its nomination in 2016), and those of former President Hipólito Mejía (2000-2004). Mejía seeks to run in 2016 as the candidate of a new Convergence party. Upon President Medina's election, President Obama said that he looked forward to working with him on bilateral and regional issues of shared concern. Foreign Aid

The United States is one of the largest bilateral donors to the Dominican Republic, with U.S. assistance totaling an estimated $25.3 million in FY2014 (see Table 1 below). The Administration requested $24.4 million for the Dominican Republic in its FY2016 request. In FY2010, rather than continuing to receive this assistance through the Mérida Initiative, the Dominican Republic began to receive assistance through the Caribbean Basin Security Initiative (CBSI), a regional security initiative first announced at the April 2009 Summit of the Americas. From FY2010 to FY2014, Congress appropriated an estimated $327.0 million for CBSI programs. The Obama Administration asked Congress for $56.5 million in additional CBSI funding in its FY2015 budget request and $53.5 million for the program in FY2016. The Dominican Republic has also been designated a jurisdiction of primary concern for money laundering. Trade Issues

Since the 1980s, U.S.-Dominican trade and investment linkages have increased, first as a result of U.S. trade preference programs and then as a result of the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). The Dominican Congress ratified the agreement in September 2005 and implemented it on March 1, 2007. The United States remains the Dominican Republic's main trading partner, with two-way trade totaling nearly $12.5 billion in 2014. Agriculture and Labor Issues

In addition to influencing Dominican trade and economic policies, the labor chapter (Chapter 16) of CAFTA-DR seeks to ensure that there is increasing respect for internationally recognized labor standards in the Dominican Republic. In recent statements and in the State Department's Country Report on Human Rights Practices covering 2013, the Obama Administration has expressed concern about the potential impact of the Dominican Constitutional Tribunal's ruling on the status of Haitians and Dominicans of Haitian descent living in the Dominican Republic (see " Ruling by the Constitutional Tribunal of the Dominican Republic "). Medina is barred from seeking consecutive reelection but could decide to run again in 2020. Dominican-U.S. relations could become strained, however, due to U.S. concerns about human rights and labor issues.
The Dominican Republic, a country of roughly 10.3 million people that shares the Caribbean island of Hispaniola with Haiti, is a close U.S. trade partner and political ally in Latin America. The United States is the Dominican Republic's main trading partner, with two-way trade totaling more than $12.5 billion in 2014. In addition to trade, U.S. interest in the Dominican Republic has recently focused on anti-drug cooperation and governance/human rights issues, particularly as they relate to Haiti. U.S.-Dominican cooperation on bilateral and regional issues intensified during Leonel Fernández's most recent terms in office (2004-2008 and 2008-2012) and has continued during the Danilo Medina Administration.
Led by former President Fernández and current President Medina, the center-left Dominican Liberation Party (PLD) has solidified its dominance over Dominican politics. In May 2010, the PLD captured two-thirds of the seats in the Dominican Congress; the party will remain in control of the legislature through May 2016. With President Medina constitutionally barred from seeking consecutive reelection, the PLD may again select Leonel Fernández as its standard bearer. Regardless, most observers are expecting the party to remain dominant in the 2016 election cycle. The main opposition party—the populist Dominican Revolutionary Party (PRD)—has remained divided for several years between supporters of its leader, Miguel Vargas Maldonado (who is widely expected to seek its nomination in 2016), and those of former President Hipólito Mejía (2000-2004). Mejía seeks to run in 2016 as the candidate of a new political movement.
Inaugurated on August 16, 2012, President Medina, a former member of the Dominican Congress and minister of the presidency, has built upon his predecessors' legacy while seeking to resolve lingering challenges related to the country's fiscal situation, energy sector, and education system. Medina has implemented ambitious economic and social policies that have helped him maintain extremely high approval ratings (83% in January 2015). The Medina government has struggled, however, to implement a September 2013 Dominican Constitutional Tribunal ruling that many argue may place hundreds of thousands of Dominican-born persons, most of who are of Haitian descent, at risk of statelessness. The ruling has been widely condemned by the international community and strained Dominican-Haitian relations.
In recent years, congressional interest in the Dominican Republic has focused on security, trade, and human rights issues. The United States is one of the largest bilateral donors to the Dominican Republic; in FY2014, assistance totaled some $25.3 million. FY2015 estimated assistance provided in P.L. 113-235 is not yet available. The Dominican Republic has also received at least $32.5 million through the Caribbean Basin Security Initiative (CBSI), a regional initiative for which Congress appropriated $327.0 million from FY2010-FY2014. For FY2016, the Obama Administration requested at least $24.4 million for the Dominican Republic and $53.5 million for the CBSI program. Bilateral trade and investment flows have expanded since the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) entered into force for the Dominican Republic on March 1, 2007. Human rights issues, particularly the treatment of Haitians in the Dominican Republic, have also been of significant interest to Congress.
This report provides background information on political and economic conditions in the Dominican Republic, as well as an overview of some of the key issues in U.S.-Dominican relations.