Tensions with Haiti escalated as sides traded accusations of border violations.

According to Haitian govt, Dominican soldiers 7 Nov breached border wall near site where disputed Haitian canal is being built into Massacre River; Haitians immediately protested, setting up barricades at border and burning tires. Dominican authorities, however, argued wall does not delimit actual border and instead claimed group of Haitians had entered its territory and interfered with army patrols. Both countries regarded incident as act of provocation by other side. Haiti 8 Nov announced countries’ FMs had agreed to de-escalate, though FM Roberto Alvarez next day questioned its neighbour’s commitment. Haitian govt 14 Nov banned trade at Ouanaminthe border crossing. Haitian merchants 29 Nov attempted to forcibly break through border but were prevented by security forces.

Santo Domingo partially reopened border with Haiti, though tensions persisted.

Tensions with Haiti ran high after govt 15 Sept shut shared border, citing construction of canal by farmers on Haitian side of Massacre river (see Haiti). Santo Domingo 5 Oct said it was ready to restart decommissioned canal to collect water from Massacre River before it enters Haiti; Port-au-Prince 9 Oct denounced attempts to divert water as “unacceptable and hostile” and called for dialogue. Govt 11 Oct partially reopened border, including key Dajabón border crossing, to allow trade of essential products, but maintained ban on entry of Haitians. Haiti 12 Oct declined to follow Santo Domingo’s lead and reopen Dajabón, though it did open border gates at Elias Pina and Independencia, allowing some trade to resume. FM Roberto Alvarez same day attended Organisation of American States (OAS) extraordinary session, where he denounced “illegal construction” of Haiti’s canal.

Former president Leonel Fernandez scored resounding victory over incumbent, Hipolito Mejia, in 16 May election, receiving 57% of votes. Election seen as largely fair, but voting marred by polling station shoot-out between supporters of Fernandez and Mejia, which left 3 dead. Fernandez must now move to reverse country's economic slide, made more difficult by devastating floods leaving hundreds dead and at least 13,000 homeless.

Presidential elections 16 May. Polling shows gap between President Hipolito Mejia and former president Leonel Fernandez closing, but Fernandez still ahead by double-digit numbers.

Border with Haiti closed mid- February to prevent spillover of violence and flood of refugees from Haitian uprising. Haitian rebels based in Dominican Republic taking part in fighting, leading to renewed tension between 2 countries. Following departure of Haiti’s President Aristide, some officials from his government sought asylum in Dominican Republic. President Mejia determined to seek re-election in May vote despite widespread opposition, including from some in own party.

Heading towards political and economic crisis. At least 5 killed 28-29 January in clashes with police after 48-hour strike over proposed economic austerity measures turned violent. After changing constitution last year to allow him to run for second term in May 2004 elections, President Hipólito Mejía now seeking further electoral reform to strengthen his candidacy. Moves causing turmoil in his ruling PRD party.