Free Trade - Haiti Observer Blog

Recently, on Tuesday, September 21, Alberto Navarro, the head of the EU delegation in the Dominican Republic, has warned that the Haitian import ban on some essential Dominican goods, likes of wheat, corn, bread, etc. would make them dearer by about 40% and the most disadvantages in Haiti will have no option but to pay that high price to buy them.

The ban, a consequence to the mass deportation of Haitians by the Dominican authority, would be effective from October 1. The Haitian government has imposed an import restriction on 23 items crossing the land border, but they can enter by boat or plane on payment of taxes to the capital of Port-au-Prince or at the northern coastal town of Cap Haitien. Last year Haiti has imported around $500 million worth of food items from the Dominican Republic and the figure is 6% of total Dominican export.

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Although, Haiti is a free market economy that enjoys the advantages of low labor costs and tariff-free access to the US for many of its exports, some of the serious impediments to its economic growth are poverty, corruption, vulnerability to natural disasters, lack of proper economic planning and low levels of education for much of the population. Every year, thousands of Haitians risk to cross the Dominican border illegally in search of low-wage jobs in construction and agriculture, and at the big all-inclusive resorts, albeit they become victims of racism and xenophobia in the DR. The marketplace at the Croix des Bossales is flooded with Dominican products likes of carrots, cabbages, and all other vegetables along with pasta, eggs, tomato pastes, mayonnaise and other prepared foods.
Haiti produces foods no doubt, but the majority of its consumption comes from the Dominicans. Haitian cements are good, but it is more expensive than Dominican cements. The Haitian state was never capable to defend Haitian economic actors.

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The Haitian HOPE (Hemispheric Opportunity through Partnership Encouragement) Act of 2006 (also known as HOPE I) was enforced on 6th Dec 2006. As a part of this Act, exports of certain Haiti-made apparels to U.S. were made tariff-free. The intention was to attract investment in apparel industry with the underlying plan being development and economic growth. The condition was that only those apparels will be made duty free whose raw materials were imported by Haiti from any country provided, a part of the sourced material must come from a country that is a part of U.S. Unilateral Preferential Trade Arrangement. Apart from this, Haiti was also required to establish:

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Ouanaminthe is one of the largest cityships situated within the Nord-Est Department. It has a population numbering 100,000, 10% of whom live in the metropolitan area. Located close to the Dominican Republic border, the Ouanaminthe people cross over via the Massacre River to peddle their wares twice weekly at the Dajabón market.

Ouanaminthe has a well-developed education system. It follows the Haitian model, beginning with Kindergarten, advancing to Primary, then Secondary, and finally University level. Private schools are numerous and church-sponsored. As part of the effort to make education accessible to all residents in Ouanaminthe, the Faith and Joy non-government organization, funded by the Jesuit Refugee Service, is building several new primary schools.

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The Martelly-Lamothe administration of Haiti have recently been meeting and trying to collaborate with other countries, especially with its neighbors for mutual economic development and international cooperation. In addition, Haiti has been participating and joining in different international organizations such as the Caribbean Community (CARICOM) where the country is an active full member.

To expand Haiti's international relations, the government has been in negotiation with the Dominican Republic for a Free Trade Agreement. This aims to promote regional development through open trade of goods and services between the two nations. With the DR's newly-elected President Danilo Medina, it appears that this agreement is a great probability.

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