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North & Central America and Caribbean
Haiti |
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Country information
TRADE AND INVESTMENT
External aid is essential to the future economic development of Haiti, the least developed country in the Western Hemisphere and one of the poorest in the world. Comparative social and economic indicators show Haiti falling behind other low-income developing countries (particularly in the Hemisphere) since the 1980s. Haiti's economic stagnation is the result of earlier inappropriate policies, political instability, a shortage of good arable land, environmental deterioration, and chronic deforestation, continued use of traditional technologies, under-capitalisation and lack of public investment in human resources, migration of large portions of skilled population, and a weak national savings rate.
Workers in Haiti are guaranteed the right of association. Unionisation is protected by the labour code. As the situation deteriorates further the exodus of economic migrants may continue. This is a huge problem affecting the nearby Turks and Caicos Islands, a British Overseas Territory.
Investment and Business Opportunities
Foreigners seeking to establish a business in Haiti must obtain a residence visa. Non-resident entrepreneurs must have a locally licensed agent to conduct business transactions within the country. 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, authorisation from the Ministry of Justice is necessary. Hurdles for businesses in Haiti include poor infrastructure, a high cost port (highest in the hemisphere), an irregular supply of electricity, and customs delays. The government places a 30% withholding tax on all profits received. There is little direct investment, though more is incoming than outgoing. Foreign Investment protection is provided by the 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.
Trade and Investment with the UK
UK exports to Haiti totalled £7.1 million in 2006. A large part of the additional UK exports to Haiti can be accounted for by higher imports of whiskey that faced a new tax from 2002 in the neighbouring Dominican Republic.
Illegal imports are known to cross the border. UK imports of Haitian goods amounted to around £400,000 in 2006. These consisted primarily of tropical fruits and coffee. De la Rue continues to produce Haitian coins and notes, and Landrover do steady Business in Haiti. As a result of the political situation in Haiti, British companies are not confident about embarking on new commercial ventures. Only when a functioning government is installed can there be a chance for the economic reconstruction of Haiti to begin again and opportunities for trade and investment to flourish.
Please note there are no official UKTI trade services in Haiti. British companies who wish to export or invest in the market should first contact the British Emmbassy in the Domincan Republic.
UK Development Assistance
The UK is providing a total of some £20 million to support Haiti’s reconstruction and development programme through our share of the pledges made by the World Bank, the Inter-American Development Bank and the European Commission. The Department for International Development (DFID) provided some £4 million in humanitarian assistance to Haiti in 2004 in response to political unrest, the May floods, and Tropical Storm Jeanne DFID is funding modest though important programmes of social support in Haiti, working mainly through international NGOs, on issues including tackling gender-based violence and work on reducing the risks to the poor in the event of natural or manmade disaster. The UK is also a significant stakeholder in the Caribbean Development Bank, where it has supported the Bank progressing its programme of support for Haiti. In 2006, a substantial British contribution of £573,664 came from the National Lottery who granted the sum to TWIN Ltd, the coffee wholesale organisation which helps small coffee and cocoa producers to combine their exports efforts. The Small Grants Scheme Fund has paid for a number of projects in Haiti in the areas of potable water, primary education, HIV Aids education and prevention. In May 2007, DFID posted a staff member to Port-au-Prince, to provide advice to the Government and its international partners on aid effectiveness and to act as a focal point for UK response in the event of a rapid onset disaster.
