tariff free - Haiti Observer Blog

Minister of Industry and Commerce, Wilson Laleau, met with President of the National Council of Free Zones (CNZF), Rode Préval on Monday to join forces with the Société Immobilière de Développement SA (SIDSA). The agreement is for the initiation of a new industrial free zone in Tabarre. Préval states that this will directly create as many as 3,500 new jobs and up to 15,000 indirect ones.

The projected Tabarre free zone will take up an estimated 3 carreaux of land and will house two buildings of over 10,000 square meters each. These modernly constructed industrial buildings were made with promoting Haiti in mind. The facilities are described as 'attractive and should entice overseas investors. They are slated to have circulation areas that allow ease in transport of the 56 40ft containers they are slated to boast.

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Haiti is experiencing an imminent food crisis, which has at its core the destruction of rice farming. The agricultural sector of Haiti, made up of subsistence farmers, cannot compete in an international market overrun with poor quality imports, especially rice, Haiti's number one staple.

Back in the 1970s, rice cultivation was a thriving industry, requiring no foreign imports to meet domestic needs. But that changed at the start of the 1990s. An attempted coup against then-President Aristide set off global trade embargos, stifling Haiti's export market. At this juncture, cheap imports from abroad came in droves. Haiti, a desperately poor country, has needed development banks' aid. They drove a hard bargain, enforcing a lower import tariff, from 50% to 3%. This negatively impacted the economy, because it became more affordable to import U.S. rice than to farm it domestically.

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Haiti's economy has tumbled, especially after the devastating earthquake in 2010. A lot of infrastructure was damaged, sending Haitians deeper into poverty. However, the country continues to take initiative to improve its economy and business market. As a matter of fact, it remains a free market economy that makes use of low labor costs and tariff-free exports to the United States market.

The country is working to attract more investors so as to prop up its economy. There are top sectors and businesses in the country that provide good investment opportunities. One of these is the garment sector. Haiti showed a significant growth in its exports in the first quarter of 2009. It recorded a rise of 16.1%, much higher than China's growth of 0.3%. Currently, Haiti is considered as the fastest growing exporter of garments to the United States. It has a wide range of clients, including Levi's, Walmart, and JCPenny. Also, half of its garment manufacturers are expected to boost their work force and expand their factories in the coming year.

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