Déclarations sur le climat des investissements 2024 : Haïti

4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / An ocial website of the United States Government Here's how you know 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T F I N A N CE PROG RAMS Home > … > Haiti 2024 Investment Climate Statements: Haiti EXECUTIVE SUMMARY Located in the western third of the island of Hispaniola, Haiti stands as one of the most urbanized nations in Latin America and the Caribbean region. The World Bank estimated over 6.8 million Haitians live in rural areas. While its investment landscape presents promising prospects, it also presents significant hurdles for U.S. investors to navigate. Despite the potential offered by abundant arable land and a youthful demographic, these advantages are offset by pervasive corruption, inadequate infrastructure, political instability, elevated levels of gang orchestrated violence, soaring inflation rates, and the ongoing emigration of tens of thousands of skilled Haitian professionals creating a brain drain. The escalation in violence has prompted an increase in internal displacement of people. The United Nations International Organization for Migration (IOM) estimated From April 2022 to March 2024 more than 362,000 people – 50 percent of whom are children – had been displaced across Haiti by organized criminal group-related violence. From December 2023 to March 3, 2024, the total number of internally displaced persons (IDPs) increased by 15 percent reflecting the pervasive insecurity in the country. Despite efforts by the Haitian government to achieve some level of economic stability and a sustainable private sector-led and market-based economic growth, Haiti faces a challenging macroeconomic outlook amidst a severe humanitarian crisis. The nation is reeling from the economic repercussions of repetitive gang-driven port blockades which impact Haiti’s supply chain, that has led to a surge in food prices. About 5.5 million Haitians are in need of urgent humanitarian aid. This supply chain disruption is further exacerbated by the volatile security Cookie Settings https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 1/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / conditions within Haiti, as well as the delayed resolution of the political crisis following President 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N Jovenel Moise’s assassination in July 2021. ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T F I N A N CE PROG RAMS As a free market system, the Haitian economy traditionally relies on the agriculture, construction, and commercial sectors, as well as the export-oriented apparel assembly industry in the north. However, the challenging business climate and reduced production in various job-providing sectors have led to increased job losses and diminished the economy’s ability to create new jobs following business closures or temporary shutdowns. The proliferation of gangs in the metropolitan area of Port-au-Prince and persistent roadblocks put in place by the gangs along the main north and south access routes to the capital create major challenges for goods to freely circulate in the country. Haitians and expatriates perceived to have access to wealth have been the targets of kidnapping for ransom, with some Haitian gangs showing increased sophistication in conducting complex kidnappings that overcome traditional mitigation methods such as the use of armored cars. Following a surge of gang violence that began on February 29, Prime Minister Ariel Henry announced on March 12 that he would resign pending the installation of a Transitional Presidential Council (TPC). Henry officially resigned on April 25, paving the way for the TPC— composed of seven voting members and two non-voting observers—to take power on the same day. The spike in violence grounded commercial flights at Port-au-Prince’s Toussaint Louverture International Airport from early March to the end of May and negatively affected operations at the capital’s ports. A new prime minister, Garry Conille, and a Council of Ministers was sworn-in to form the new government on June 12 and the first elements of the Kenyan-led Multinational Security Support (MSS) mission are scheduled to arrive before the end of June. The Government of Haiti s’(GoH) Post-COVID Economic Recovery Plan (PREPOC 2020-2023) included the textile sector as one of the most important means for achieving economic transformation and diversification in the country. However, due to supply chain issues, fuel problems, and gang related problems, the textile industry’s workforce shrank by over 45 percent from September 2023 to March 2024, reducing to 32,000 employees. Many companies have had to reduce staffing while a small number have closed operations entirely. According to the World Investment Report 2023 United Nations Conference on Trade and Development (UNCTAD), the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) reported that Foreign Direct Investment (FDI) inflows to Haiti decreased to https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 2/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / $39.3 million from $50 million in 2021. According to data published by The Haitian Institute of 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N Statistics and Technology (IHSI) the year-to-year inflation from April 2023 to April 2024 is 27.3 ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T F I N A N CE PROG RAMS percent. Improving the investment outlook for Haiti requires political and economic stability, underscored by the enactment of institutional and structural reforms that can improve Haiti’s business and political environment. The Haitian economy showed a negative GDP growth of 1.9 percent in 2023, (1.7 percent in 2022; 1.8 percent in 2021, and 3.3 percent in 2020) and is expected to contract again in 2024. According to the United Nations’ human development index (HDI), Haiti was measured at 0.552 points in 2022, placing it 158th out of 193 countries. Table 1: Key Metrics and Rankings Measure Year Index/Rank Website Address TI Corruption Perceptions Index 2023 172 of 180 https://www.transparency. org/en/cpi/2023 1. Openness To, and Restrictions Upon, Foreign Investment POLICIES TOWARDS FOREIGN DIRECT INVESTMENT Haiti’s legislation encourages foreign direct investment (FDI). Import and export policies are non discriminatory and are not based on nationality. Haitian and foreign investors have the same rights, privileges, and protections under the 1987 investment code. Investors in Haiti can create the following types of businesses: sole proprietorship, limited or general partnership, joint-stock company, public company (corporation), subsidiary of a foreign company, and co-operative society. The most common business structure in Haiti is a corporation. The Government of Haiti made some progress in recent years to improve the legal framework, create and strengthen core public institutions, and enhance economic governance. The Haitian https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 3/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / Central Bank continues to work with the International Monetary Fund (IMF) and the World Bank 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N to implement measures aimed at creating a stable macroeconomic environment. A draft law ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T F I N A N CE PROG RAMS (Société de Droits law), which would facilitate the creation of other types of businesses in Haiti, such as LLCs, remains pending parliamentary approval when parliament is restored. Following the conclusion of their mandated terms in December 2022, the remaining representatives of the Haitian Parliament vacated their positions. Consequently, there is no elected officials currently the Haitian government. The Transitional Provisional Council (TPC) and Prime Minister Conille are working on the organization of presidential elections and parliamentary elections. However, LLCs could be created abroad and later registered in Haiti. In June of 2022, the IMF executive board approved a Staff Monitored Program (SMP), an arrangement between Haiti’s authorities and the IMF to monitor the implementation of the government’s economic program. After the successful completion of the second SMP review, management of IMF approved on June 29, 2023, a new Staff-Monitored Program with Haiti covering the period through March 2024. Building on progress achieved under the previous SMP, the new 9-month SMP should contribute to macroeconomic stability by helping Haiti sustain recent policy reforms designed to enhance economic resilience and governance. An extension was approved and the SMP will now cover the period through September 30, 2024. While not discriminatory towards international investment specifically, the Government of Haiti’s economic policies fall short of providing a sound enabling environment for foreign direct investment. However, Haiti’s legislation encourages foreign direct investment. The central government’s efforts to improve its financing capacity combined with a greater flow of cash through the formal foreign exchange market due to measures taken by the Central Bank have resulted in a relative stability of the exchange rate. As of May 30, 2024, the exchange rate was 133 HTG for $1. In 2023 the interim Haitian government published and executed by decree an AML/CFT law in accordance with the global AML/CFT standards. This decree aims to prevent and suppress money laundering, the financing of terrorism and the proliferation of weapons of mass destruction in Haiti by repealing all contrary laws and decrees that did not adhere to FATF best practices. Additionally, on August 16, 2023, the Central Bank instituted both a money transfer policy and a policy for currency exchange institutions to standardize AML/CFT regulations. According to Haitian legislation, electronic signatures and electronic transactions are legally binding. Other pieces of legislation that may improve Haiti’s investment climate remain pending, https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 4/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / including incorporation procedures, a new mining code, and an insurance code. 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T The Center for the Facilitation of Investments (CFI), which operates under the Haitian Ministry of F I N A N CE PROG RAMS Commerce, was established to promote domestic and international investment opportunities. In concept, the CFI could streamline the investment process by working with other government agencies to simplify procedures relative to trade and investment; providing updated economic and commercial information to local and foreign investors; making proposals on investor incentives; and promoting investment in priority sectors. The CFI aims to offer tailored services to large international investors. In practice, the CFI has made limited progress to incentivize job creation and boost national production in agriculture, apparel assembly, and tourism. Prior to the COVID-19 pandemic, Haiti’s Tourism Association reported a 60 percent loss of jobs in the sector in 2019, a situation that has gotten worse since 2021 especially after the degradation of the security situation with new gang roadblocks on the northern access of Port-au-Prince. Many businesses reported difficult and slow customs clearance processes, resulting in long waits for imported products to become available. The most common concerns expressed by foreign investors include political instability, arbitrary decisions, insecurity, crime and gang violence, road blockages, and fuel shortages. U.S. Embassy Port-au-Prince’s Economic Section assessed the rapid loss of human and financial capital is in part due to increasing security challenges. Companies are relocating to neighboring countries, or their top-level management lives outside of Haiti, flying into the country intermittently. The apparel sector, the largest formal private sector provider of jobs, has encountered operating difficulties due to insecurity and gang violence, recurring fuel shortages and temporary border closure with adverse effect on contracts and employment. Haiti has experienced fuel shortages since the price of petroleum soared in the international market 2022. However, recent shortages are tied to challenges within the Government’s fuel policy, contributing to instability, pressure at the pumps, and the growing fuel black market, but also to the inability of fuel tankers to leave the terminal due to gang activities nearby. Fuel Tankers are often seized by gang members and drivers must pay exorbitant gang-imposed tolls. Moreover, there is a growing need to decentralize fuel infrastructure and build fuel terminals in Cap Haitian and Les Cayes, which are the 2nd and 3rd largest cities after Port-au-Prince, reducing national dependence on the https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 5/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / violence-ridden Capital. As of May 2024, fuel has to be loaded on a barge and cross by sea in 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N order to reach the south department from Port-au-Prince. ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T F I N A N CE PROG RAMS LIMITS ON FOREIGN CONTROL AND RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT The Haitian government does not impose discriminatory requirements on foreign investors. Foreign investors are permitted to own 100 percent of a company or subsidiary. As a Haitian entity, such companies enjoy all rights and privileges provided under the law. Additionally, foreign investors are permitted to operate businesses without equity-to-debt ratio requirements. Accounting law allows foreigners to capitalize using tangible and intangible assets in lieu of cash investments. Both Haitian and foreign investors enjoy the same rights and privileges. However, foreign investors residing in Haiti must obtain a residence permit and are expected to pay duties and taxes, in accordance with the scales and regulations applicable. Foreign investors are free to own real estate for the needs of their businesses and enjoy the same rights and prerogatives as Haitian investors. The reimbursement of debts contracted abroad for investments made in Haiti are not subject to any constraint or taxation. Haitian laws related to residency status and employment are reciprocal. Foreigners who are legal residents in Haiti and wish to engage in trade have, within the framework of laws and regulations, the same rights granted to Haitian citizens. However, Article 5 of the Decree on the Profession of Merchants reserves the function of manufacturer’s agent for Haitian nationals. Foreign firms are encouraged to participate in government-financed development projects. Performance requirements are not imposed on foreign firms as a condition for establishing or expanding an investment, unless indicated in a signed contract. Foreign investors are free to enter joint ventures with Haitian citizens. The distribution of shares is a private matter between the two parties. However, the government regulates the sale and purchase of company shares. Investment in certain sectors, such as health and agriculture, requires special Haitian government authorization. Investment in “sensitive” sectors such as electricity, water, telecommunications, and mining require a Haitian government concession as well as authorization from the appropriate governmental agency. In general, natural resources are the property of the state, and the exploitation of mineral and energy resources requires concessions and permits from the Ministry of Public Works’ Bureau of Mining and Energy. Mining, prospecting, and operating permits may only be granted to https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 6/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / companies established and resident in Haiti. The establishment of new industrial mines cannot 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N take place until an elected parliament passes an updated mining law, along the lines of a draft ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T F I N A N CE PROG RAMS law initially presented in 2017. Entrepreneurs are free to dispose of their properties and assets and to organize production and marketing activities in accordance with local laws. OTHER INVESTMENT POLICY REVIEWS The World Trade Organization’s (WTO) 2015 Trade Policy Review stated that Haiti’s Investment Code and Law on Free Trade Zones is fully compliant with the Agreement on Trade-Related Investment Measures. The full report can be viewed at: https://www.wto.org/english/tratop_e/tpr_e/tp427_e.htm BUSINESS FACILITATION The Center for Facilitation of Investments (CFI) in Haiti was created by presidential decree in 2006 under the auspices of the Ministry of Commerce and Industry. It is the national investment promotion agency that works to attract investments that contribute to the development of the country, diversify the economy, strengthen supply chains, and generate jobs. The CFI´s main mandate is to promote investments and help potential investors find and take advantage of opportunities in Haiti. The Department of Facilitation of CFI aims, through an Investor Pack that is updated periodically, to support investors through their investment decision-making process by providing them technical and administrative assistance. In the handbook investors find: Information about Haiti’s current “investment climate.” Help to ensure smooth entry and establishment of an investment project, including providing information and assistance with acquiring permits and licenses, as well as with business registration processes. Assistance with identifying suitable sites for a proposed investment project and support with legal and regulatory frameworks and processes. General information to benefit from Haiti’s fiscal incentives regime CFI collects no fees for the services provided to investors. CFI representatives may be https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 7/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / available in Port-au-Prince, Gonaives, and at investment summits as well as trade shows 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N around the world. ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T F I N A N CE PROG RAMS While the Haitian government has made efforts to facilitate the launching and operating of businesses, the average time to start a business in Haiti is 189 days, according to the now discontinued World Bank’s 2020 Ease of Doing Business Report. At present, it takes between 90 and 120 days to complete registration with the Commercial Registry at the Ministry of Commerce and obtain the authorization of operations (Droit de fonctionnement). The CFI offers a service providing pre-registered and fully authorized companies in manufacturing, agribusiness, and real estate the opportunity to reduce their registration time. Once the Inter-Ministerial Investment Commission validates these established companies, the shares are transferred to the new owners. In February 2024, Haiti formally accepted WTO’s agreement on fisheries subsidies and deposited its instrument of acceptance of the agreement. As of April 2024, the government of Haiti has not signed the WTO investment Facilitation for Development Agreement. Both foreign and domestic businesses can register at Haiti’s CFI: https://www.cfihaiti.com/index.php/en/ . All businesses must register with the Ministry of Commerce, the Haitian tax office, the state-owned Banque Nationale de Crédit, the social security office, and the retirement insurance office. The Ministry of Commerce and Industry validates companies that want to do business in Haiti and provides them with information on the ways to register their companies and how to submit their applications and supporting documents. In October 2020, CFI launched Spotlight, an initiative with the aim of promoting visibility of companies already established in Haiti and registered in the CFI database. There are several options available to investors in Haiti, both local and international, who would like to set up a business in Haiti: Sole Proprietorship Registered Partnership Limited Liability Company Corporation Subsidiary of a Foreign Company https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 8/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / OUTWARD INVESTMENT 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T Neither the law nor the Haitian government restricts domestic investors from investing abroad. F I N A N CE PROG RAMS Haiti’s outward investment is limited to a few enterprises with small investments. These investors are generally businesspersons with dual citizenship and others of Haitian origin who presently reside in the country in which their firms operate. Most of these firms are service providers and not investment firms. There is no current program or incentive in place to encourage Haitian entrepreneurs to invest abroad. The inability of the government to guarantee the free circulation of goods in the country places a major logistic challenge to entrepreneurs wanting to invest abroad. 2. BilateralInvestment and Taxation Treaties Haiti has a signed bilateral investment treaty (BIT) in place with the United States. The United States is Haiti’s most important trade partner with approximately 80 percent of its manufactured merchandise exported to the United States. Haiti also has a BIT in force with the United Kingdom, France, and Germany. Haiti has signed the CARIFORUM-EU Economic Partnership Agreement, which included 14 other Caribbean countries in December 2009, but Haiti has yet to ratify the agreement. There is no double taxation agreement between Haiti and other countries. Haiti is a beneficiary country of the U.S. Caribbean Basin Trade Partnership Act (CBTPA), a trade preference program enacted by Congress in October 2000. In 2020, the U.S. Congress renewed CBTPA legislation to extend preferences through 2030. The CBTPA provides duty-free treatment to apparel wholly assembled, knit or knit-to-shape in certain beneficiary countries in the Caribbean, if the apparel uses U.S. fabrics and yarns. In December 2006, Congress enacted the Haitian Hemispheric Opportunity for Partnership Encouragement Act of 2006, commonly referred to as HOPE. HOPE amended the Caribbean Basin Economic Recovery Act (CBERA) and authorized the President to extend additional trade preferences to Haitian-manufactured apparels. HOPE preference programs are separate programs added as part of CBERA and do not replace those provided by the CBTPA. In June 2008, Congress enacted the Food, Conservation, and Energy Act of 2008 (Public Law 110- 246). Title XV, Subtitle D, Part I of the Act contains amendments to the established special rules for imports of apparel and other textile articles from Haiti, which can be found in 19 U.S.C. https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 9/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / §2703a. Commonly known as the Haitian Hemispheric Opportunity through Partnership 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N Encouragement Act of 2008 (HOPE II), these amendments expanded the preferences originally ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T F I N A N CE PROG RAMS established under HOPE, and created four new preference categories for Haitian-manufactured apparel. HOPE II enables the Haitian textile industry to benefit from tariff advantages with the condition that the Haitian government and eligible producers comply with internationally recognized labor standards. HOPE II allows for duty-free entry into the United States of a limited number of garments imported from Haiti, if 50 percent of the value when imported originates in Haiti, the United States, or another country that has a free trade agreement with the United States. The Haiti Economic Lift Program (HELP), an act passed by the U.S. Congress in 2010 in response to the apparel industry’s needs following the devastation of the January 2010 earthquake, extends HOPE II tariff advantages through 2025. These trade preferences have been instrumental to the development of Haiti’s apparel sector. The HOPE and HELP Acts are critical in continuing Haiti’s recovery and sustained growth for Haiti’s economy. During the last 40 years, the apparel industry has played a central role in Haiti’s overall economy, accounting for 80 to 90 percent of the country’s total exports which helped raise $1.01 billion in revenue in 2020. The HOPE and HELP Acts’ trade preferences are cornerstones of the textile sector and are due to expire in 2025 if not extended. Given that the textile industry and Haiti’s economy rely heavily on trade preferences with the United States, the textile companies and some government officials are very concerned of a potential expiration of the HOPE and HELP trade preferences. Due to continuous fuel problems as well as gang-related problems causing supply train reduction, apparel exports have greatly reduced, many companies in the industry have had to reduce staffing with a few having closed operations entirely. The textile industry’s job decreased by 45% and the sector now boasts roughly 32,000 jobs. The legislation introduced in Congress in December 2023 to reauthorize the HOPE and HELP Acts would ensure the bill to benefit both programs are maintained until 2035. As of June 2024, Congress has not yet voted for the renewal of HOPE and HELP. Haiti does not have a U.S. Income Tax Treaties: http://www.irs.gov/Businesses/International-Businesses/United-States-Income-Tax-Treaties—A to-Z https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 10/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N 4. Legal Regime ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T F I N A N CE PROG RAMS TRANSPARENCY OF THE REGULATORY SYSTEM Haitian laws are written to allow for transparency to be applied universally however corruption is endemic. Haitian officials do not uniformly enforce these laws, and the bureaucratic “red tape” in the Haitian legal system is often excessive. Tax, labor, health, and safety laws and policies are loosely enforced. The private sector often provides services, such as healthcare, to employees that are not entitled to coverage under Haitian government agencies or institutions. All regulatory processes are managed exclusively by the government and do not involve the private sector and non-governmental organizations. Draft bills, decree or regulations are published through “Le Moniteur,” the official journal of the Haitian government. A government issued decree, regulation or a public notice is official only after its publication in Le Moniteur. Information is sometimes made available online by other news website. Le Moniteur contains public agency rules, decrees, and public notices that Les Presses Nationales d’Haiti published. However, finding already published information online can reveal itself challenging as Le “Moniteur” has no known website. According to the World Bank, Haitian ministries and regulatory agencies do not develop forward regulatory plans, nor do they publish proposed regulations prior to their adoption. Haitian law does not require a timeframe for public comment or review of proposed regulations. The government is currently conducting public consultations around the draft of a new General Tax Code and the Book of Tax Procedures in a single document before its scheduled implementation in October 2024. More information can be found at http://rulemaking.worldbank.org/ INTERNATIONAL REGULATORY CONSIDERATIONS Haiti is a member of the Caribbean Community (CARICOM), an organization of 15 states and dependencies established to promote regional economic integration. The CARICOM Single Market and Economy (CSME), created in 1989, aims to advance the region’s integration into the global economy by facilitating free trade in goods and services, and the free movement of labor and capital. CSME became operational in January 2006 in 12 of the 15 member states. CARICOM Secretary-General ambassador Irwin LaRocque expressed his desire to have Haiti increase its https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 11/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / participation in the regional Single Market and Economy in 2020 however noted that while 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N significant efforts have been made towards the full integration of Haiti into the CSME, the task is ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T F I N A N CE PROG RAMS not yet completed. Haiti must amend its customs code to align with CARICOM and WTO standards. Haiti is an original member of the WTO. As such, it has made several commitments to the WTO regarding the financial services sector. These commitments include allowing foreign investment in financial services, such as retail, commercial, investment banking, and consulting. One foreign bank, Citibank, operates in Haiti, and primarily offers corporate banking services. Haiti has committed to notifying the WTO Committee on Technical Barriers to Trade of all draft technical regulations. However, Haiti is not party to the Trade Facilitation Agreement. LEGAL SYSTEM AND JUDICIAL INDEPENDENCE Judicial power is exercised by the Superior Magistrate Council. Eight new Supreme Court judges were appointed by government decree February 2023, bringing the Supreme Court number to 11 out of 12 judges. The Supreme Court (Cour de Cassation) is the highest court and Haiti’s Superior Magistrate Council, followed in descending order by the Court of Appeals, and the Court of First Instance. Haiti’s commercial code dates to 1826 and needs revision. There are a few commercial laws in place and no commercial courts. Injunctive relief is based upon penal sanctions rather than securing desirable civil action. Similarly, contracts to comply with certain obligations, such as commodities futures contracts, are not enforced. Haitian judges do not have specializations, and their knowledge of commercial law is limited. Utilizing Haitian courts to settle disputes is a lengthy process, and cases can remain unresolved for years. Bonds to release assets frozen through litigation are unavailable. Business litigations are most often pursued through out-of court settlements. Haiti’s legal system often presents challenges for U.S. citizens seeking to resolve legal disputes. In Haiti, judges are appointed for a set number of years. Public prosecutors are direct employees of the Ministry of Justice and can be transferred or suspended by the executive branch at any time. There are numerous allegations of undue political interference. Additionally, there are persistent claims that some Haitian officials use their public office to influence commercial dispute outcomes for personal gain. The Haitian government receives international assistance to https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 12/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / increase the capacity of its oversight institutions and the capacity of the national police. 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N Domestic court processes are not always fair as political, economic, and other powerful actors ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T F I N A N CE PROG RAMS could interfere. LAWS AND REGULATIONS ON FOREIGN DIRECT INVESTMENT Haiti’s Investment Code established an Inter-Ministerial Investment Commission (CII) to examine investor eligibility for license exemptions as well as customs and tariff advantages. The Center for Facilitation of Investments (CFI) is the Technical Secretariat of the CII. The Prime Minister, or his delegate, chairs the CII, which is composed of representatives of the Ministries of Economy and Finance, Commerce, and Tourism, as well as those ministries that oversee specific areas of investment. The CII must authorize all business sales, transfers, mergers, partnerships, and fiscal exemptions within the scope of the code. The CII also manages the process of fining and sanctioning enterprises that disregard the code. The following areas are often noted by businesses as challenging aspects of Haitian law: operation of the judicial system; publication of laws, regulations, and official notices; establishment of companies; land tenure and real property law and procedures; bank and credit operations; insurance and pension regulation; accounting standards; civil status documentation; customs law and administration; international trade and investment promotion; foreign investment regulations; and regulation of market concentration and competition. Although these deficiencies hinder business activities, they are not specifically aimed at foreign firms; rather, they appear to affect both foreign and local companies. COMPETITION AND ANTITRUST LAWS There is currently no law to regulate competition. Haiti is one of the most open economies in the region. Anti-corruption legislation criminalizes nepotism and the dissemination of inside information on public procurement processes but is seldom enforced. Haiti does not, however, have anti-trust legislation. EXPROPRIATION AND COMPENSATION The 1987 Constitution allows expropriation or dispossession only for reasons of public interest or land reform and is subject to prior payment of fair compensation as determined by an expert. If https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 13/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / the initial project for which the expropriation occurred is abandoned, the Constitution stipulates 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N that the expropriation will be annulled, and the property returned to the original owner. The ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T F I N A N CE PROG RAMS Constitution prohibits nationalization and confiscation of real and personal property for political purposes or reasons. Title deeds are vague and often insecure. The Haitian government established the National Institute of Agrarian Reform to implement expropriations of private agricultural properties with appropriate compensation. The agrarian reform project, initiated under the Preval administration (1996-2001), was controversial among both Haitian and U.S. property owners. There have been complaints of non-compensation for the expropriation of property. Moreover, a revision of the land tenure code, intended to address issues related to the lack of access to land records, surveys, and property titles in Haiti, has been pending in parliament since 2014. A partnership between the private sector, Haitian government, and international organizations resulted in a guide on security land rights in Haiti, which was translated in 2016 and can be found here: https://www.land-links.org/wp-content/uploads/2019/09/Haiti-Land-Manual-2.pdf . DISPUTE SETTLEMENT ICSID Convention and New York Convention In 2009, Haiti ratified the 1965 International Convention on the Settlement of Investment Disputes between states and nationals of other states (ICSID). Under the convention, foreign investors can call for ICSID arbitration for disputes with the state, but weak enforcement mechanisms and a lack of updated laws to handle modern commercial disputes severely compromises the protections and guarantees that Haitian law extends to investors. Haiti is not a signatory to the Inter-American-U.S. Convention on International Commercial Arbitration of 1975 (Panama Convention). Investor-State Dispute Settlement Haiti is a signatory to the 1958 United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which provides for the enforcement of an agreement to arbitrate present and future investment disputes. Under the convention, Haitian courts can enforce such an agreement by referring the parties to arbitration. Disputes between foreign investors and the https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 14/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / state can be settled in Haitian courts or through international arbitration, though claimants must 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N select one to the exclusion of the other. A claimant dissatisfied with the ruling of the court ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T F I N A N CE PROG RAMS cannot request international arbitration after the ruling is issued. The law provides mechanisms on the procedures a court should follow to enforce foreign arbitral awards issues. While there is no consistent history of extrajudicial action against foreign investors, several investment dispute cases have been reported by U.S. companies over the past 10 years. Most disputes were related to disagreements between business owners and Haitian tax and licensing authorities. Lack of clarity as to land ownership and other disputed property claims, and disputes over the enforcement of government contracts and concessions were also reported. Although some businesses were able to resolve disputes through the court system or settled with the Haitian government, most business owners appear to have accepted their losses and abandoned other legal remedies. The most recent expropriation claims by the Haitian government occurred in 2013. That specific expropriation later stalled and has yet to be completed to the full extent that the government anticipated. International Commercial Arbitration and Foreign Courts International arbitration is strongly encouraged as a means of avoiding lengthy domestic court procedures. In principle, foreign judgments are enforceable under local courts. In 2005, the Haitian Chamber of Commerce and Industry and the Inter-American Development Bank jointly developed the Haitian Arbitration and Conciliation Chamber, which provides mechanisms for conciliation and arbitration in private commercial disputes. This approach offers many benefits that allows the parties to find their own solution to their disputes. BANKRUPTCY REGULATIONS Haiti’s bankruptcy law was enacted in 1826 and modified in 1944. There are three phases of bankruptcy under Haitian law. In the first stage, payments cease to be made and bankruptcy is declared. In the second stage, a judgment of bankruptcy is rendered, which transfers the rights to administer assets from the debtor to the Directorate of the Haitian Tax Authority (Direction Génerale des Impots). In this phase, assets are sealed, and the debtor is confined to debtor’s prison. In the last stage, the debtor’s assets are liquidated, and the debtor’s verified debts are https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 15/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / paid by the Directorate of the Haitian Tax Authority prorated according to their right. The debtor 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N is released from prison once the debtor’s verified debts are paid. In practice, the above ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T F I N A N CE PROG RAMS measures are seldom applied. Since 1955, most bankruptcy cases have been settled between the parties. The practice of mob looting remains a means for some to express their frustration with the country’s social inequities. Many companies have gone bankrupt after being attacked by violent protesters. Lack of insurance coverage and the complexity of compensation proceedings make it difficult for many to restart their businesses. The state does not have a court assessing the losses of businesses for state financial compensation for bodily or patrimonial damages. While the provisions of Article 356 of the Haitian Penal Code states perpetrators should be punished in hard labor in perpetuity, many of these crimes remained unsolved. Although the concepts of real property mortgages and chattel mortgages – based on collateral of movable property, such as machinery, furniture, automobiles, or livestock to secure a mortgage – exist, real estate mortgages involve antiquated procedures and may fail to be recorded against the debtor or other creditors. Property is seldom purchased through a mortgage and secured debt is difficult to arrange or collect. Liens are virtually impossible to impose and using the judicial process for foreclosure is time consuming and often futile. Banks frequently require that loans be secured in U.S. dollars. 4.Industrial Policies INVESTMENT INCENTIVES Despite the significant risks foreign investors face due to instability, weak rule of law, endemic corruption, poor infrastructure and chronic instability, Haiti offers incentive packages for investors as outlined in the Haitian Investment Code of 2002 and in the Free Zone Law of 2002. The Center for Facilitation of Investments (CFI) is the Governmental body awarding competitive incentives. General privileges granted by the Haitian Investment code of 2002 has been modified and is now as followed: a https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 16/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / Total exemption from income taxes in industrial free zone areas for a period which should 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N not exceed 7 years ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T F I N A N CE PROG RAMS Accelerated depreciation of properties, equipment, hardware, software, and some expenses Exemption from local taxes, except for the License to Operate (Patente) which should not exceed 15 years Each eligible sector is also allocated specific incentives. Deduction of values invested in a free zone, but prohibition on selling the title for five (5) years from the date of investment In order to attract investment in Haiti, the Investment Code privileges eligible firms with customs, tax, and other advantages. Investments that provide added value of at least 35 percent in the processing of local or imported raw materials are eligible for preferential status. Eligibility conditions: A company interested in doing business in Haiti must issue a request to CFI’s General Director along with the following documents: Feasibility study. Business plan (over a five-year period). Form outlining the incentives applicable to the related sector (form available at CFI). Detailed list of equipment, material, and commodities to be imported. Ministry of Commerce and Industry’s authorization and copy of official publication “Le Moniteur”, in which the company’s bylaws are published. Copy of newspaper publication of the legal notices of registration for limited partnerships and partnerships. If company is a sole proprietorship: a copy of business name certificate issued by the Ministry of Commerce and Industry. Tax identification card. Fiscal Clearance (Quitus Fiscal). Opening balance sheet. https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 17/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / Income tax statement of the company’s board members or partners Center for facilitation of 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N investments. ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T F I N A N CE PROG RAMS FOREIGN TRADE ZONES/FREE PORTS/TRADE FACILITATION To date, Haiti has issued free trade zone licenses for the following areas: FTZ de Trou du Nord, the first agricultural free trade zone, in North-East department. FTZ CODEVI in the northeastern city of Ouanaminthe, North-East department, where a Dominican company, Grupo M, manufactures clothing for a variety of U.S. companies and rents factory space to several American and foreign companies. FTZ Lafito: in Douillard, Cabaret, West Department. Lafito is the home of the Haiti’s only Panamax port. Port Lafito is located 12 miles north of Port au Prince and includes port facility business services that cater to bulk and loose cargo imports, as well as terminal services to worldwide container service shipping lines FTZ Hispaniola in the Route 9 Cité Soleil area of Port-au-Prince. FTZ SIDSA in the Tabarre area of Port-au-Prince. FTZ de Digneron : in the Croix-des-Bouquets area of Port-au-Prince (partially looted and vandalized in March 2024) is currently closed. FTZ Santo Dujour located in the Croix-des-Bouquets area of Port-au-Prince. FTZ HEH Les Palmiers in the Carrefour area of Port-au-Prince. FTZ Balan in Ganthier, West Department. FTZ Savane-Diane, an agro-industrial free trade zone in Artibonite Department. FTZ Agritrans: An inter-ministerial commission, called the Free Zones National Council (CNZF), comprised of representatives from both the public and private sector, is responsible for: Receiving applications for approval as a free zone. Approving applications for admission to the free zone regime. Ensuring that projects approved are carried out in accordance with relevant regulations. Authorizing the operation of free zones. https://www.state.gov/reports/2024-investment-climate-statements/haiti/ 18/41 4/17/25, 5:26 PM Haiti - United States Department of State I N T H I S S ECT IO N / Defining and regulating free zones. 1 2 . U . S . I N T ER N AT IO N AL D EVE LOPME N T F I N A N CE CORPORAT IO N ( D FC), A N D OT H ER I N VE S TME N T I N S U RA N CE OR D EVE LOPME N T Approving and monitoring procedures and operations in free zones. F I N A N CE PROG RAMS Approving its own rules and procedures. The Free Zones Directorate, an entity within the Ministry of Finance, acts as the CNZF’s Technical Secretariat. It implements and ensures implementation of decisions taken by the CNZF; receives investors and potential investors; sends quarterly reports on the establishment and operation of free trade zones to the CNZF for approval; examines applications for approval of free trade zone; participates in all negotiations likely to lead to agreements or conventions on free trade zones at the national and international level; monitors the operation of all free trade zones in Haiti; and ensures regular monitoring of the free trade zones. The law provides the following incentives for enterprises located in free zones: Full exemption from income tax for a maximum 15-year period, to be followed by a period of partial exemption that gradually decreases; Customs and fiscal exemption (including registration taxes) for the import of capital goods and equipment needed to develop the area, with the exclusion of tourism vehicles; Exemption from all communal taxes (with the exception of the fixed occupation tax) for a period not exceeding 15 years; Registration and transposition of the balance due for all deeds relating to purchase, mortgages, and collateral. Goods and services sold from free trade zones on the Haitian market are considered to have entered through Haitian customs and are subject to relevant duties and taxes. The volume of free trade zone goods allowed for sale in Haitian markets may not exceed 30 percent of the total production of an enterprise in