CRS - Haitian Textile Industry: Impact of Proposed Trade Assistance
- The HOPE Act could potentially benefit the Haitian textile industry by easing restrictions on component origins.
- Haiti's political and business climate, including inadequate protection of private property and corruption, may hinder significant near-term gains.
- The phasing out of textile quotas by the WTO poses a challenge to Haiti's ability to compete in the global market.
- Current employment in Haitian textile manufacturing is estimated at between 25,000 and 30,000.
- In the first eleven months of 2006, textiles accounted for about 90% of Haitian exports to the United States.
This report examines the potential impact of proposed trade assistance, particularly the HOPE Act, on the Haitian textile industry. The legislation aims to improve Haiti's economic conditions by loosening restrictions on the origins of apparel components sewn in Haiti and exported to the United States, effectively allowing most of those exports to enter duty-free. While these changes could significantly benefit Haitian manufacturing, the report acknowledges that poor conditions in Haiti, including extreme poverty, political unrest, and eroding natural resources, may hinder any significant near-term gains. The report also considers the effects of the WTO's textile quota phaseout on Haiti's ability to compete in the global market.
How to cite
Congressional Research Service (CRS), 2007, CRS - Haitian Textile Industry: Impact of Proposed Trade Assistance, accessed via HaitiDocs, https://www.haitidocs.org/doc/crs-2007-haitian-textile-industry-impact