<P> An important aspect of the Dominican economy is the Free Trade Zone industry (FTZ), which made up U.S. $4.55 billion in Dominican exports for 2006 (70% of total exports). Reports show, however, that the FTZs lost approximately 60,000 between 2005 and 2007 and suffered a 4% decrease in total exports in 2006 . The textiles sector experienced an approximate 17% drop in exports due in part to the appreciation of the Dominican peso against the dollar, Asian competition following expiration of the quotas of the Multi-Fiber Arrangement, and a government - mandated increase in salaries, which should have occurred in 2005 but was postponed to January 2006 . Lost Dominican business was captured by firms in Central America and Asia . The tobacco, jewelry, medical, and pharmaceutical sectors in the FTZs all reported increases for 2006, which somewhat offset textile and garment losses . Industry experts from the FTZs expected that entry into force of the CAFTA - DR agreement will promote substantial growth in the FTZ sector for 2007 . </P> <P> An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system . Three regional electricity distribution systems were privatized in 1998 via sale of 50% of shares to foreign operators; the Mejía administration repurchased all foreign - owned shares in two of these systems in late 2003 . The third, serving the eastern provinces, is operated by U.S. concerns and is 50% U.S. - owned . The World Bank records that electricity distribution losses for 2005 totaled about 38.2%, a rate of losses exceeded in only three other countries . Industry experts estimate distribution losses for 2006 will surpass 40%, primarily due to low collection rates, theft, infrastructure problems and corruption . At the close of 2006, the government had exceeded its budget for electricity subsidies, spending close to U.S. $650 million . The government plans to continue providing subsidies . Congress passed a law in 2007 that criminalizes the act of stealing electricity, but it has not yet been fully implemented . The electricity sector is a highly politicized sector and the prospect of further effective reforms of the electricity sector is poor . Debts in the sector, including government debt, amount to more than U.S. $500 million . Some generating companies are under capitalized and at times unable to purchase adequate fuel supplies . </P> <P> With almost 80% of the total land area suitable for crop production and about 17% of the labor force engaged in farming, agriculture remains the primary occupation, accounting for 11% of GDP in 2001 . Value of agricultural output grew at an average annual rate of 7.1% during 1968--73, but since 1975 the sector has been hampered by droughts (1975, 1977, and 1979), hurricanes (in 1979 and 1980), and slumping world prices and quota allocations for sugar (since 1985). In 1999, agricultural production was 0.4% higher than during 1989--91 . The fertile Cibao Valley is the main agricultural center . In 1998, arable land totaled 1,020,000 hectares (2,500,000 acres); with land under permanent crops at 480,000 hectares (1,200,000 acres). </P> <P> After Cuba, the Dominican Republic is the second - largest Caribbean producer of sugarcane, the nation's most important crop . The State Sugar Council operates 12 sugar mills and accounts for about half of total production . Other large producers are the privately owned Vicini, with three mills, and Central Romana Corporation, whose mill is the largest in the country . Sugar is grown in the southeastern plains, around Barahona & on the North Coast Plain . In 1999, sugar production was 4.4 million tons, down from an average of 7.1 million tons during 1989--1991 . Output of sugar has declined annually since 1982, and land is gradually being taken out of sugar production and switched to food crops . Production of raw sugar rose from 636,000 tons in 1990 to 813,000 tons in 1997 but fell to 374,000 tons in 1999 . </P>

What is the main industry in the dominican republic