HOPE, HELP Integral to Haitian Exports, ITC Says

"[T]he Haiti-specific trade preference program -- comprising HOPE I, HOPE II, and HELP -- expanded and enhanced trade benefits for Haiti and gave Haitian apparel producers more flexibility in sourcing yarns and fabrics," the report said, and those programs cover more than two-thirds of Haitian exports to the U.S., three-quarters of a billion dollars' worth. Haiti's apparel exports to the U.S. quadrupled after the passage of CBTPA, HOPE I, HOPE II and HELP, and were $994 million in 2021. HOPE refers to the Haitian Hemispheric Opportunity through Partnership Encouragement act of 2006 and 2008, and HELP to the 2010 Haiti Economic Lift Program Act.

These programs "help Haiti’s apparel sector continue to attract investment despite a difficult political, social, and environmental landscape," the report said.

About 90% of Haiti's 5 million workers do not have formal jobs, but rather work on farms or in jobs such as selling wares on the street. The report said the apparel industry is one of the few sources of formal employment in Haiti, and employs more than 50,000 people.

The ITC wrote, "Haiti is one of the poorest countries in Latin America and the Caribbean, with 2021 current dollar gross domestic product (GDP) of $20.9 billion, or $1,815 per capita. Per capita income has been relatively stagnant over the past decade, with little improvement in living standards."

Ways and Means Chairman Richard Neal, who requested the study in February, said the report will help the committee think about "how to improve U.S. preference programs that benefit Haiti. Haiti, historically, was an economic powerhouse in the region, and we want our preference programs to help increase the level of development in Haiti and the Caribbean at large. Creating more opportunity and benefits for workers and the people of Haiti, particularly as they face numerous challenges, is a priority for the Committee," the Massachusetts Democrat said in a news release Dec. 23.

The report noted that, in addition to gang violence and corruption, there are other barriers to more apparel manufacturing in Haiti. "While Haitian workers have a competitive advantage relative to other countries because of their low wages, the relatively low productivity of workers detracts from the country’s competitiveness," ITC researchers wrote. The country also has higher freight rates than competitors in the Dominican Republic, on the other half of the island.

The ITC heard from stakeholders as it worked on the report, and included some summary comments in appendixes. The U.S. Fashion Industry Association said HOPE and HELP programs "have been an unmitigated success. The combination of preferential access to the U.S. market and Haiti’s ample supply of young workers has helped Haiti become the thirteenth largest apparel supplier to the United States." The USFIA noted that Haiti's apparel exports recovered to pre-COVID-19 pandemic levels in 2022.

"This growth has occurred in Haiti despite earthquakes, government instability, and social unrest -- a testament to the significance of these trade programs. However, apparel production in Haiti comes with various challenges. Investors point to corruption issues; an unreliable electricity grid and high cost of onsite electricity generation; a need for improved port entry and generally poor infrastructure; high obstacles to credit; and frequent land disputes, in part due to the lack of effective land registries, as challenges to providing stable employment. These issues, combined with the unstable security environment, create headwinds for U.S. retailers and apparel brands that seek to provide jobs while meeting global standards for ethical sourcing and sustainability."