Insights
- Fresh 10-per cent US tariff on imports from Latin American and Caribbean countries, including Haiti, could badly hit the Haitian textile industry, which relies solely on duty-free access to the US market through trade agreements.
- Its textile sector, which has lost 40,000 jobs due to the security crisis, represents 90 per cent of formal employment, and is particularly vulnerable to new US tariffs.
President Donald Trump’s decision to impose a 10-per cent tariff on imports from Latin American and Caribbean countries, including Haiti, could badly affect the Haitian textile industry, which relies solely on duty-free access to the American market through trade agreements
These trade agreements include the Haitian Hemispheric Opportunity through Partnership Encouragement (HOPE) and the Haitian Economic Lift Programme (HELP).
Haiti’s economy has witnessed six years of contraction in a row and a 4.2-per cent decline in gross domestic product last year.
The country’s textile sector, which has already lost nearly 40,000 jobs due to the security crisis, represents nearly nine-tenths of formal employment, and is particularly vulnerable to new US tariffs, a domestic media outlet reported.
If higher costs become a problem, companies may relocate their manufacturing units to other countries, cautioned a global trade economist.
Haitian economy minister Alfred Métellus called for international cooperation and national reforms to stabilise the domestic economy as the US tariffs, according to him, will further complicate recovery efforts.
Another analyst at the Haitian ministry of economy said the tariffs could have a domino effect on the economy.
The US tariffs will create inflation and a rise in the cost of living in the United States, which will affect the amount of remittances from the diaspora to families in Haiti.
Source: https://www.fibre2fashion.com/