Haitian Textile Industry: Impact of Proposed Trade Assistance

Abstract:

Haiti suffers from extreme poverty, political unrest, insecurity, high illiteracy, and eroding natural resources, among other problems. These factors contribute to low levels of business investment, impeding development and leading to economic decline. In an effort to improve Haiti's economic conditions, bills have been introduced in Congress that would (a) loosen existing restrictions on the origins of the components of apparel sewn together in Haiti and exported to the United States, and (b) effectively allow most of those exports to enter the United States duty free. Such changes could have large potential benefit for Haitian textile manufacturing, but poor conditions in the country and some of the consequences of the phase-out of textile quotas at the beginning of 2005 probably could preclude any near-term benefit.