In July 1999, Haiti joined CARICOM, negotiating a ten-year tenure as a Least Developed Country before fully integrating into the organization. The legislation governing the Common External Tariff is still awaiting ratification by Parliament. Haiti benefits from several preferential trade programs, including the HOPE and the HELP, Acts, the Caribbean Basin Trade Partnership Agreement (CBTPA), and the Caribbean Basin Initiative (CBI), as outlined in this article.
The HOPE Act
The Haitian Hemispheric Opportunity via Partnership Encouragement (HOPE) Act of 2006 went into force on March 19, 2007. Progress toward a market-based economy, increased employment, strengthened the rule of law, removed trade obstacles, combat corruption, and protected internationally recognized human and worker rights are among the eligibility criteria. The trade preferences given under HOPE are tailored to Haiti and are contingent on both the Haitian government and private producers adhering to certain basic labor norms and legislation. Producers must complete a Technical Assistance Improvement and Compliance Needs Assessment and Remediation (TAICNAR) program and adheres to internationally agreed-upon core labor standards.
The HELP Act
By enhancing tariff benefits for certain Haitian textile and apparel exports to the United States, the Haiti Economic Lift Program (HELP) Act aids in the long-term support of Haiti’s economy. HELP also extends existing trade preference programs for Haiti and expands duty-free access to the US market for Haitian textile and apparel exports. The trade preferences given under the HOPE act are the same as the HELP act.
Caribbean Basin Trade Partnership Act (CBTPA)
The CBTPA selected Haiti as a beneficiary on October 2, 2000. The CBTPA was enacted by Congress as part of the Trade and Development Act of 2000. Its goal is to give the Caribbean and Central American countries more duty-free access to the US market. The CBTPA builds on the CBI program by permitting duty-free and quota-free imports of certain garments from the region, as well as expanding NAFTA-equivalent tariff protection to a variety of additional products that were previously excluded from the CBI program. The CBTPA will be phased down on September 30, 2020.
Caribbean Basin Initiative (CBI)
The Caribbean Basin Initiative (CBI) is still an important part of US-Haitian economic cooperation. The CBI aims to aid the development of stable Caribbean Basin economies by allowing beneficiary nations duty-free access to the US market for the majority of commodities. Under the CBI, over 3,500 Haitian export products are eligible for duty-free entry into the US. Except for those made of linen or silk, or those that qualify as handicraft work, most textiles are prohibited. Some watches and watch components, petroleum, canned tuna, alcohol, and sugar are also prohibited. To be eligible for CBI priority, products must be sent directly from Haiti to the United States. The goods exported to the US must be a new merchandise product distinct from the imported components, and the Haitian direct costs of production (including domestic raw materials and those originating in other CBI beneficiary countries, including Puerto Rico and the US Virgin Islands) must account for at least 35% of the customs value. Materials from the United States may be added up to 15% of the total customs value. Whether or not the items meet the 35 percent value-added criterion, eligible articles assembled or processed from U.S. materials, components, or ingredients are granted duty-free entry into the United States.
CARIFORUM-EU Economic Partnership Agreement
In December 2009, Haiti signed the CARIFORUM-EU Economic Partnership Agreement. Trade partnerships for sustainable development, trade and trade-related concerns, settlement of the dispute, general exclusions, institutional provisions, and general and final provisions are all included in the agreement. The pact builds on the Cotonou Agreement and prior ACP-EU partnership agreements by addressing economic, economic, and trade cooperation issues.
