Haiti

Location : Caribbean, western one-third of the island of Hispaniola, between the Caribbean Sea and the North Atlantic Ocean, west of the Dominican Republic

Capital : Port-au-Prince

Languages : French (official), Creole (official) 

Area : 27,750 sq km

Land Use : arable land: 28.3%; permanent crops: 11.61%; other: 60.09% (2001)

Natural Resources : bauxite, copper, calcium carbonate, gold, marble, hydropower

Population : 8,121,622 (July 2005 est.)

Population below the poverty line: 80% (2003 est.)

Labour force : 3.6 million (2001 est.) 

Labour force participation rate : 44.33% of population (1995)

International Organisation participation : ACCT, ACP, Caricom (suspended), FAO, G-77, IADB, IAEA, IBRD, ICAO, ICC (signatory), ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, ITU, LAES, MIGA, OAS, OPANAL, OPCW (signatory), PCA, UN, UNCTAD, UNDP, UNESCO, UNIDO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO

GDP per capita : U$1,500 (2004 est.)

GDP Real Growth Rate : -3.5% (2004 est.)

GDP sectoral composition : agriculture: 30%; industry : 20%; services: 50% (2001 est.)

Industries: sugar refining, flour milling, textiles, cement, light assembly industries based on imported parts 

Agriculture - products : coffee, mangoes, sugarcane, rice, corn, sorghum, wood

Exports : U$338.1 million f.o.b. (2004 est)

Exports - commodities : manufactures, coffee, oils, cocoa, mangoes

Exports - partners : US 81.2%, Dominican Republic 7.3%, Canada 4.1% (2004)

Imports : U $1.085 billion f.o.b. (2004 est.)

Imports - commodities : food, manufactured goods, machinery and transport equipment, fuels, raw materials

Imports - partners : US 34.8%, Netherlands Antilles 18%, Malaysia 5.1%, Colombia 4.7% (2004)

QUALITATIVE TRADE PROFILE  

Haiti's trade policy forms an integral part of economic policy, whose major objectives are to provide the conditions needed for satisfactory economic growth, to mobilize and support the business sector, to facilitate job creation and lower the unemployment rate, and to give Haiti the extensive infrastructure needed for its development. The Government defined the major trade policy objectives during the Sectoral Round Table on Trade. These should bolster the efforts made in the economic policy field by creating a more business-friendly environment. This means that the liberalization process must continue, but it also requires the implementation of provisions to improve and diversify Haiti's export capacity and strengthen its national production capacity, while at the same time enhancing the competitiveness of Haitian enterprises on international markets. Consequently, Haiti's investment policy cannot be dissociated from its trade policy.

Tariffs on agricultural goods have been bound at rates ranging from zero to a ceiling of 50%. Tariffs have been bound at zero for a number of agricultural products. The tariff was bound at a ceiling of 50% for some agricultural products- mainly grains. Other duties and levies on agricultural and non-agricultural products were bound at 16 %.

Haiti 's simple average tariff is the lowest in the region- 2.9%. The tariff comprises six rates with a maximum of 57.8% on imports of gasoline. With the exception of this ceiling, the highest rate is 15%. The modal rate is zero; this applies to around 67% of tariff headings in the eight-digit Harmonized System. Overall, tariffs decline from the first to the second stage of processing and then rise from semi-finished products (second stage of processing) to finished products. Agriculture is the sector that enjoys the highest tariff protection, with a simple average tariff of 4.5% and rates ranging from zero to 15%. Tariff protection in the manufacturing industry is 2.8 %, with rates ranging from zero to 57.8 %.

INSTITUTIONAL FRAMEWORK 

One of the tasks of the Ministry of Trade and Industry (MCI) is to play a central role in the formulation and implementation of Haiti's trade policy. The MCI is responsible for "developing the guidelines for trade and industrial policy". The Ministry's legal affairs department is responsible for drawing up draft legislation and regulations relating to trade and industry, in cooperation with other interested departments. Other institutions such as the Ministry of the Economy and Finance (MEF) (including the General Customs Administration), the Ministry of Agriculture, and the Ministry of Justice also help to formulate and implement Haiti's trade policy.

As a member of CARICOM, Haiti is committed to a regionally coordinated external trade policy for the group. The MTI therefore coordinates closely with the relevant regional agencies on trade policy matters, including the Caribbean Regional Negotiating Machinery (RNM).

The private sector is not systematically consulted on the formulation of trade policy. Its representatives, however, sometimes belong to the joint committees responsible for preparing a legal framework that better fulfils the needs of the trade and industrial sectors. According to the authorities, substantial progress has yet to be made both in enhancing the image of the Government, especially the MCI, among the private sector and in developing forums where the latter can express its views on these issues. Mention should be made nevertheless of the Commission présidentielle pour la croissance et la modernisation (Presidential Commission on Growth and Modernization), composed of seven members who are Government officials and 15 representatives of the private sector, where the private sector can express its views.

Lastly, although the Constitution gives the President of the Republic responsibility for negotiating, concluding and signing bilateral, plurilateral or multilateral treaties and agreements, this responsibility is in part delegated and comes directly within the competence of the ministries concerned. For trade matters in particular, the MCI and the Ministry of Foreign Affairs or the various ministries dealing with the economic sector have been mandated by the Council of Ministers for this purpose.

Trade policies are neither analysed nor evaluated. They are, however, debated on certain occasions such as the Table ronde sectorielle sur le commerce.

TRADE AGREEMENTS

Bilateral

The bilateral trade agreements to which the Republic of Haiti is party do not concern free trade as such but are rather framework agreements drawn up according to the most-favoured-nation principle. Such agreements have been signed with Argentina, Bahamas, China, Colombia, Denmark, Dominican Republic, Germany, Iceland, Israel, Italy, Japan, and Liberia. Haiti has bilateral trade agreements with Colombia, Costa Rica, Cuba, Dominican Republic, and Venezuela through the Caribbean Community (CARICOM). It is a beneficiary of the General System of Preferences. The Caribbean Basin Initiative (CBI) provides for duty-free access to the U.S. market for a range of Haiti's exports. Exports from Haiti also enjoy preferential access to the Canadian market through the Canadian Programs for Commonwealth Caribbean Trade, Investment and Industrial Cooperation (CARIBCAN). Through CARICOM, Haiti is currently negotiating a free trade agreement to replace CARIBCAN as well as a free trade agreement with MERCUSOR. Haiti is also a beneficiary under the 'Everything But Arms' Initiative.

Regional

Haiti is a member of CARICOM though it is currently suspended. It is negotiating an Economic Partnership Agreement with the EU through the CARIFORUM configuration. It is also involved in negotiations to form the hemispheric Free Trade Area of the Americas.

Multilateral

Haiti is a member of the WTO and grants most-favoured-nation (MFN) treatment to all its trade partners. It has GATS commitments in 16 sectors.

NEED PRIORITIES  

Priority areas for Haiti are; upgrading its legal framework to reflect multilateral commitments; programmes to support trade promotion, business development and investment attraction programs; institution-building in the Ministry of Trade; constructing consultative mechanisms; studies to determine negotiation positions; liberalization studies; training in negotiating techniques and other trade-related skills.

Source: World Fact Book, WTO Secretariat.