December 23, 2022
News Release 22-140
Inv. No(s). 332-590
Contact: Elizabeth Nesbitt, 202-205-1819
USITC Releases Report Concerning the Impact of U.S. Preference Programs on Haiti’s Economy and Workers
The U.S. International Trade Commission (USITC) today released its report U.S.-Haiti Trade: Impact of U.S. Preference Programs on Haiti’s Economy and Workers (Inv. No. 332-590). This investigation and report were requested by the U.S. House of Representatives Committee on Ways and Means in a letter received on February 22, 2022. 
 
As requested, the USITC, an independent nonpartisan factfinding federal agency, conducted an investigation to gather information on and analyze Haiti’s economy and trade. This report provides information and analysis on the Haitian economy, U.S. preference programs that benefit Haiti, the impacts of these preference programs on Haitian industries and workers, and case studies on key industries. 
 
The report finds that U.S. preference programs have played an important role in the trade relationship between the United States and Haiti and the development of Haiti’s apparel sector, helping this sector continue to attract investment despite a difficult political and social landscape and risks of natural disasters. Highlights from the report include:
  • Haiti experienced a surge in foreign direct investment (FDI) following the implementation of the Haitian Hemispheric Opportunity through Partnership Encouragement Act (HOPE I) in 2006, HOPE II in 2008, and the Haiti Economic Lift Program Act (HELP) in 2010. Haiti’s FDI stock grew rapidly during this time, about 17 percent per year, from $300 million in 2006 to $1.74 billion in 2017. However, political instability, insecurity due to increased gang activity, and disruptions due to the COVID-19 pandemic have all contributed to an investment slowdown.
  • U.S. imports from Haiti generally increased after the implementation of each U.S. preference program from 1980 to 2021. U.S. apparel imports from Haiti quadrupled after the Caribbean Basin Trade Partnership Act (CBTPA) and HOPE I/HOPE II/HELP programs went into effect, increasing from $231 million in 2001 to $994 million in 2021, with T-shirts accounting for a large proportion of the increase. In 2021, 23.6 percent of total imports ($260.4 million) entered the United States under the CBTPA program and 67.9 percent ($751.3 million) under the HOPE I/HOPE II/HELP program.
  • Apparel employment fell sharply in the 1990s as a result of the trade embargo imposed in 1991. Apparel employment partially recovered after implementation of the HOPE I/HOPE II/HELP Acts. As of 2021, the garment industry is once again one of the largest sources of formal employment, providing 53,000–57,000 jobs and supporting more than 450,000 people in the country.
  • An analysis of Better Work Haiti compliance assessments since 2009 shows low levels of noncompliance with International Labour Organization core labor standards (forced labor, child labor, freedom of association, collective bargaining, and gender discrimination) but generally high levels of noncompliance with respect to compensation and safety-related metrics. Union representatives and NGOs have indicated that labor issues persist.
U.S.-Haiti Trade: Impact of U.S. Preference Programs on Haiti’s Economy and Workers (Inv. No. 332-590, USITC Publication 5397, December 2022) is available on the USITC website at: https://www.usitc.gov/publications/332/pub5397.pdf.
 
USITC general factfinding investigations cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.
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March 22, 2022
News Release 22-040
Inv. No(s). 332-590
Contact: Jennifer Andberg, 202-205-1819
USITC to Investigate U.S.-Haiti Trade and the Impact of U.S. Preference Programs

The U.S. International Trade Commission (USITC) is undertaking a new factfinding investigation on U.S.-Haiti trade and the impact of U.S. trade preference programs on Haiti’s economy and workers. The Commission’s report will provide an overview of Haiti’s international trade since 1980, with special emphasis of the impact of the Caribbean Basin Economic Recovery Act (CBERA), Generalized System of Preferences (GSP), Haitian Hemispheric Opportunity through Partnership Encouragement (HOPE) Act of 2006, HOPE II in 2008, and the Haiti Economic Lift Program (HELP) in 2010, and the Trade Acts of 2000 and 2002 on Haiti’s trading relationship with the United States, Haiti’s economy, and workers.

The investigation, U.S.-Haiti Trade: Impact of U.S. Preference Programs on Haiti’s Economy and Workers, Inv. No. 332-590, was requested by the U.S. House of Representatives Committee on Ways and Means (Committee) in a letter received on February 22, 2022. The Committee noted in its letter that the HOPE and HELP preference programs will expire on September 30, 2025.

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, will prepare a public report for the Committee. The report will provide, to the extent practicable:

  • an overview of the Haitian economy and its competitiveness;
  • an examination of the role of U.S. preference programs in shaping Haiti’s economy; and
  • case studies on goods currently and historically exported from Haiti such as apparel, tropical fruits, and sporting goods, including baseballs, softballs, and basketballs.

The USITC expects to submit its report to the Committee by December 22, 2022.

The USITC will hold a public hearing in connection with the investigation via an online video conference platform, beginning at 9:30 a.m. on May 26, 2022.  More detailed information about the hearing, including how to participate, will be posted on the Commission’s website no later than April 22, 2022, at https://usitc.gov/research_and_analysis/what_we_are_working_on.htm

Requests to appear at the hearing should be filed no later than 5:15 p.m. on May 4, 2022 with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.  See below for important information regarding filing a request to appear at a USITC hearing.

The USITC also welcomes written submissions for the record.  Written submissions should be addressed to the Secretary of the Commission and should be submitted no later than 5:15 p.m. on June 23, 2022. All written submissions, except for confidential business information, will be available for public inspection.  See below for important information regarding the filing of written submissions for USITC investigations.

IMPORTANT:  All filings to appear at the hearing and written submissions must be made through the Commission’s Electronic Document Information System (EDIS, https://edis.usitc.gov). No in-person paper-based filings or paper copies of any electronic filings will be accepted until further notice. Persons with questions regarding electronic filing should contact the Office of the Secretary, Docket Services Division (EDIS3Help@USITC.gov), or consult the Commission’s Handbook on Filing Procedures.

Further information on the scope of the investigation is available in the USITC’s notice of investigation, dated March 22, 2022, which can be downloaded from the USITC Internet site (www.usitc.gov) or may be obtained by contacting the Office of the Secretary at or may be obtained by contacting the Office of the Secretary at commissionhearings@usitc.gov.

About these investigations: USITC general factfinding investigations, such as these, cover matters related to tariffs or trade and are generally conducted under section 332(g) of the Tariff Act of 1930 at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission’s objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public unless they are classified by the requester for national security reasons.

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