09/05/2024 | Press release | Distributed by Public on 09/05/2024 08:01
When Haiti is more prosperous, secure, and firmly rooted in democracy, Haitians and Americans benefit. U.S. policy toward this close neighbor is designed to foster the institutions and infrastructure necessary to achieve strong democratic foundations and meaningful poverty reduction through sustainable development. The United States is the single largest donor of humanitarian and development assistance to Haiti, helping to meet the needs of the most vulnerable Haitians through health care, shelter, food, nutrition, water/sanitation, and other relief.
A pillar of U.S.-Haiti bilateral cooperation is assistance for long-term development and institution building. Priority areas include support for economic growth and poverty reduction; improved healthcare, food security, and respect for human rights, and strengthening democratic institutions and the Haitian National Police (HNP) so Haiti can provide its own security, be a stronger partner against transnational crime, and foster long-term stability. The United States facilitates bilateral trade with and investment in Haiti to combat poverty and tackle chronic unemployment. The large Haitian diaspora in the United States is a potentially powerful ally in the effort to expand business opportunities and build on the many links that unite Haitians and Americans.
In October 2022, the government of Haiti requested international support to combat ongoing gang violence. Former Prime Minister Henry reiterated this request again in September 2023. The United Nations Security Council responded to these requestsby authorizing the Multinational Security Support (MSS) mission on October 2, 2023,through UN Security Council Resolution 2699 . Led by the Republic of Kenya, the MSS mission aims to support the HNP in restoring security so that Haitians have the ability to go about their daily lives. The United States has provided over $300 million to the MSS mission while supporting and advising participating countries on mission preparations and deployment. On June 25, 2024, the first contingent of the MSS mission arrived in Port-au-Prince, followed by a second contingent of personnel that arrived on July 16.
Political Overview
Haiti's transition to a functional democracy is important to the United States. Strong democratic institutions, including holding regular transparent, free and fair elections, can help guarantee Haiti's democratic traditions and ensure a voice for the Haitian people in their governance. A commitment to democracy, security, and the rule of law ensures that human rights and fundamental freedoms are better protected. The stability and predictability that come with these institutions are essential for Haiti to achieve sustained economic growth and attract needed foreign investment.
U.S. Assistance to Haiti
Since fiscal year 2021, the U.S. government has provided nearly $813 million in development, economic, health, and security assistance to Haiti, as well as more than $430 million in humanitarian assistance. U.S. development assistance promotes resilience through economic growth, provides basic health care and education services, and improves citizen security. Heightened gang violence in Port-au-Prince provides a challenge to the personnel and resource-limited HNP. Lack of security limits political progress, humanitarian assistance access, and free movement of people and economic activity. The United States provides security assistance through support for the MSS mission, as well as through direct bilateral assistance to the HNP.
U.S assistance to Haiti had the following impacts in recent years:
Bilateral Economic Relations
The United States is Haiti's largest trading partner. A number of U.S. firms maintain operations in Haiti, including commercial banks, airlines, oil, and agribusiness companies, and U.S.-owned assembly plants. Opportunities for U.S. businesses in Haiti include: light manufacturing, in particular textile and clothing production; the development and trade of raw and processed agricultural products; medical supplies and equipment; building and modernizing Haiti's infrastructure; developing tourism and allied sectors such as arts and crafts; business process outsourcing; and improving capacity in waste disposal, transportation, energy, infrastructure development, telecommunications, and export assembly operations.
Haiti's Center of Investment Facilitation aims to facilitate and promote investment in the local economy by reducing administrative delays, streamlining the creation of enterprises, and facilitating the provision of inducements. Nevertheless, overall costs to start and operate a new business in Haiti remain high, and access to credit as well as structures for investor protection are still insufficient. The United States and Haiti have a bilateral agreement on investment guarantees that permits the U.S. International Development Finance Corporation to offer programs in Haiti. Meaningful poverty reduction in Haiti will depend on job creation through economic activity and foreign investment. Toward that end, the United States promotes needed reforms in Haiti to make it easier and more predictable for businesses to operate and to create the kind of stable environment needed for investors.
Additional information on business opportunities in Haiti can be found at www.export.gov, under the subheadings of Market Intelligence and Country Commercial Guides.
U.S. Trade Preferences for Haiti
Both Haitian and American importers and exporters can benefit under the Caribbean Basin Trade Partnership Act - the successor program of the Caribbean Basin Initiative - that provides for duty-free export of many Haitian products assembled from U.S. components or materials. The 2008 Haitian Hemispheric Opportunity through Partnership Encouragement (HOPE II) Act and the 2010 Haiti Economic Lift Program (HELP legislation) provide duty-free preferences for certain light-manufacturing products produced in Haiti, in particular apparel products. The Trade Preferences Extension Act of 2015 extended trade benefits provided to Haiti in the HOPE II and HELP Acts through September 2025. Haitian apparel factories eligible for duty-free entry into the United States under HOPE II and HELP must comply with international core labor standards and Haitian labor law. The HOPE II and HELP Acts have been instrumental to Haiti's apparel industry, which accounts for over 80 percent of national export earnings, 90 percent of its formal employment.
Haiti's Membership in International Organizations
Haiti and the United States are partners in promoting core values such as democracy, respect for human rights, and economic development both in the region and around the world. Both nations belong to a number of the same international organizations, including the United Nations (UN), Organization of American States (OAS), International Monetary Fund, World Bank, and World Trade Organization. The United States works closely with the OAS and the UN, including through the UN Integrated Office in Haiti, CARICOM, and individual countries to advance its policy goals in Haiti.