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U.S. policy toward Haiti is designed to foster and strengthen democracy; help alleviate poverty, illiteracy, and malnutrition; promote respect for human rights; and counter illegal migration and drug trafficking. The U.S. also supports and facilitates bilateral trade and investment along with legal migration and travel. U.S. policy goals are met through direct bilateral action and by working with the international community. The United States has taken a leading role in organizing international involvement with Haiti. The United States works closely with the Organization of American States (OAS; see "Key OAS Issues"), particularly through the Secretary General's "Friends of Haiti" group (originally a UN group that included the U.S., Canada, France, Venezuela, Chile, Argentina which was enlarged in 2001 to add Germany, Spain, Norway, Mexico, Guatemala, Belize, and The Bahamas), the Caribbean Community (CARICOM), and individual countries to achieve policy goals.
Maintaining good relations with and fostering democracy in Haiti are important for many reasons, not least of which is the country's geographical proximity to the continental United States. In addition to the many Haitians who receive visas to immigrate into the U.S. (averaging over 13,000 annually in FY 1999-2003), there is a flow of illegal migrants. Over 100,000 undocumented Haitian migrants were intercepted at sea by the U.S. Coast Guard in the past two decades, particularly during the 1991-94 period of illegal military rule when more than 67,000 migrants were interdicted. Since the return of the legitimate government in 1994, the interdiction of illegal migrants by U.S. Coast Guard vessels has decreased dramatically, averaging fewer than 1,500 annually. Neighboring Caribbean countries, particularly The Bahamas, continue to interdict Haitian migrants as well. The prospect remains, however, for the renewal of higher flows of illegal migrants, particularly under conditions of political unrest or further economic downturn.
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Political insecurity and the failure of Haiti's governments to invest in developing the country's natural and human resources has contributed significantly to the country's current state of underdevelopment. U.S. efforts to strengthen democracy and help build the foundation for economic growth aim to rectify this condition. The U.S. has been Haiti's largest donor since 1973. Between FY 1995 and FY 2003, the U.S. contributed more than $850 million in assistance to Haiti. These funds have been used to support programs that have addressed a variety of problems. Among the programs are:
Food assistance (P.L. 480 Title II) for nutritional well-being and food security, especially children under five and nursing mothers.
Health: A US-supported network of over 30 local organizations serves 2.5 million Haitians. In US-assisted areas, child immunization rates are nearly double the national average. Child malnutrition rates fell from 32% to 22% in 1995-2000. The national percentage of women seeking prenatal consultation increased from 68% to 79%. The national contraceptive use rate increased as part of our expanded AIDS prevention program.
Democracy: Programs increase political party professionalism, strengthen independent media and civil society organizations, promote judicial reform and human rights, and support independent election observation groups. Public diplomacy programs bring Haitian government officials, journalists, and academics to the U.S. to learn about U.S. public policies and programs.
Education: Programs increase pass rates for second, third, and fourth grade students through training for teachers, school directors and parent-teacher associations, improved instruction in math and Creole reading, provision of books, teaching aids, and curriculum guides.
Economic Growth: Programs increase income for the poor through small business loans to urban micro-entrepreneurs; assistance to small farmers in marketing valuable export crops such as coffee, cacao, and mangos; and help to Haitian artisans to find niche export markets. Beneficiaries include small entrepreneurs (80% women), 25,000 hillside farmers, and 2,000 artisans.
In 2004, the U.S. pledged $230 million in aid through fiscal year 2006. These funds will be provided in a variety of areas:
Job Creation and Economic Growth: $22 million
Budget Support and Technical Assistance to Haitian Government Ministries: $45 million
Security Improvement: $26 million
Health, Nutrition and Education: $122 million
Elections: $15 million.
In addition to financial support, the U.S. provides human resources. U.S. Peace Corps volunteers are largely focused on health- and income-generation programs in Haiti's rural areas. Many private U.S. citizens travel regularly to Haiti or reside there for extended periods to work on humanitarian projects.
Haiti has been plagued for decades by extremely high unemployment and underemployment. The precipitous decline in urban assembly sector jobs, from a high of 80,000 in 1986 to fewer than 17,000 in 1994, exacerbated the scarcity of jobs. To revitalize the economy, U.S. assistance attempts to create opportunities for stable sustainable employment for the growing population, particularly in rural areas. More recently, programs that help to increase commercial bank lending to micro-enterprises, especially in the agricultural sector, have helped to create a significant number of jobs. U.S. assistance is channeled primarily through private voluntary agencies and contractors to ensure efficient implementation of U.S. assistance programs.
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Haiti is n a major transshipment point for South American narcotics, primarily cocaine, being sent to the United States. To counter this threat, the U.S. has taken a number of steps, including signing a counternarcotics letter of agreement with the Government of Haiti in May 2002, vetting and training the counternarcotics division of the Haitian National Police, providing material assistance and training to the Haitian Coast Guard for drug and migrant interdiction, and obtaining the expulsion of several traffickers under indictment in the United States. Although Haiti did not meet counternarcotics certification criteria the past three years, the country was provided a waiver of any sanctions on grounds of vital national security interest.
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The U.S. remains Haiti's largest trading partner. Port-au-Prince is less than 2 hours by air from Miami, with several daily direct flights. A daily flight also connects Port-au-Prince with New York, and a new Port-au-Prince-Fort Lauderdale flight started in 2003. Both Port-au-Prince and Cap Haitien on the north coast have deepwater port facilities. Many Haitian entrepreneurs conduct business in English, and U.S. currency circulates freely in Haiti. A number of U.S. firms, including commercial banks, telecommunications, airlines, oil and agribusiness companies, and U.S.-owned assembly plants are present in Haiti.
Further opportunities for U.S. businesses include the development and trade of raw and processed agricultural products; medical supplies and equipment; rebuilding and modernizing Haiti's depleted infrastructure ; developing tourism and allied sectors--including arts and crafts; and improving capacity in waste disposal, transportation, energy, telecommunications, and export assembly operations. Haiti's primary assembly sector inputs include textiles, electronics components, and packaging materials. Other U.S. export prospects include electronic machinery, including power-generation, sound and television equipment, plastics and paper, construction materials, plumbing fixtures, hardware, and lumber. Benefits for both Haitian and American importers and exporters are available under the Caribbean Basin Trade Partnership Act (CBTPA)-- which provides for duty-free export of many Haitian products assembled from U.S. components or materials-- the successor program to the Caribbean Basin Initiative.
U.S. export opportunities also exist for four-wheel-drive vehicles, consumer electronics, rice, wheat, flour, animal and vegetable fats, meat, chicken, vegetables, and processed foodstuffs. The Government of Haiti seeks to reactivate and develop agricultural industries where Haiti enjoys comparative advantages, among which are essential oils, spices, fruits and vegetables, and sisal. The government encourages the inflow of new capital and technological innovations. Additional information on business opportunities in Haiti can be found at the Country Commercial Guide for Haiti.
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Individuals wishing to practice a trade in Haiti must obtain an immigrant visa from a Haitian Consulate and, in most cases, a government work permit. Transient and resident traders must also have a professional ID card.
Property restrictions still exist for foreign individuals. Property rights of foreigners are limited to 1.29 hectares in urban areas and 6.45 hectares in rural areas. No foreigner may own more than one residence in the same district, or own property or buildings near the border. To own real estate, authorization from the Ministry of Justice is necessary.
Hurdles for businesses in Haiti include poor infrastructure, a high-cost port, an irregular supply of electricity, and Customs delays. The government places a 30% withholding tax on all profits received. There is little direct investment.
Foreign investment protection is provided by the Haitian Constitution of 1987, which permits expropriation of private property for public use or land reform with payment in advance. American firms enjoy free transfer of interest, dividends, profits, and other revenues stemming from their investments, and are guaranteed just compensation paid in advance of expropriation, as well as compensation in case of damages or losses caused by war, revolution, or insurrection. The U.S. and Haiti have a bilateral agreement on investment guarantees that permits the U.S. Overseas Private Investment Corporation to offer programs in Haiti. The two governments also signed a bilateral investment treaty in December 1983, but it was not ratified.
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Ambassador--James B. Foley
Deputy Chief of Mission--Douglas M. Griffiths
Consul General--Jay T. Smith
Public Affairs Officer--Mara Tekach-Ball
USAID Director--David Adams
The U.S. Embassy in Haiti is located on 5, Harry Truman Blvd., Port-au-Prince.
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U.S. Commercial Service does not have a separate office in Haiti. Commercial matters are handled by the Embassy economic section.
Tel: (509) 223-1477
Fax: (509) 223-9038
Cell: (509) 409-1441
Overseas Private Investment Corporation (OPIC)
1615 M Street, NW
Washington, DC 20527
Tel: (202) 457-7200
Fax: (202) 331-4234
U.S. Department of Commerce
14th and Constitution Ave., NW
Washington, DC 20230
Office of Latin America and the Caribbean
Tel: (202) 482-0704
Fax: (202) 482-0464
Caribbean/Latin American Action
1818 N Street, NW, Suite 310
Washington, DC 20036
Tel: (202) 466-7464
Fax: (202) 822-0075
Association des Industries d'Haiti (ADIH)
Bldg. Le Triangle Delmas 31, #139
Port-au-Prince
Tel: (509) 246-4509/4510 or 2211
Centre Pour la Libre Entreprise et la Democratie (CLED)
37, Avenue Marie-Jeanne,
No. 8 B.P. 1316
Port-au-Prince
Tel: (509) 244-0901 or (509) 245-6039
Fax: (509) 222-8252
Chambre de Commerce et d'Industrie d'Haiti
P.O. Box 982
Port-au-Prince
Tel: (509) 222-0281 or (509) 222-2475
Haitian-American Chamber of Commerce and Industry (AMCHAM)
Rue Oge, A-5
Petionville
Republic of Haiti
Tel: (509) 511-3024, fax not available
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