Note:  Advanced written questions by WTO Members and the replies provided by Haiti are
reproduced in document WT/TPR/M/Add.1 and will be available online at
http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.WORLD TRADE
ORGANIZATIONWT/TPR/M/99
15 January 2004
(04-0125)
Trade Policy Review Body
4 and 6 November 2003Original:  French
TRADE POLICY REVIEW
HAITI
Minutes of Meeting
Chairperson:  H.E. Mrs Mary Whelan (Ireland)
Page
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON  2
II. OPENING STATEMENT BY THE REPRESENTATIVE
OF THE REPUBLIC OF HAITI  3
III. STATEMENT BY THE DISCUSSANT  6
IV. STATEMENTS BY PARTICIPANTS  8
V. REPLIES BY THE REPRESENTATIVE OF THE REPUBLIC OF HAITI AND
ADDITIONAL COMMENTS 12
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 15WT/TPR/M/99
Page 2
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON
1. In opening the meeting for the first Trade Policy Review of Haiti, held on 4 and
6 November 2003, the Chairperson welcomed the delegation of Haiti, headed by His Excellency
Jean-Claude Roche, Minister of Trade and Industry, and the discussant, Mrs Adair HEUCHAN,
(Canada).  In accordance with the rules, the discus sant had supplied in advance the main issues she
intended to raise (document WT/TPR/D/78/Rev.1).
2. The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of
the procedures of the meeting.  The Report by the Haitian Government was contained in document
WT/TPR/G/99/Rev.1 and that of the WTO Secretariat in document WT/TPR/S/99/Rev.1.  The
delegation of Haiti had received copies of advance written questions submitted by Canada, the
United States, Japan and the European Union.  The questions and the replies by the delegation of Haiti
were reproduced in document WT/TPR/M/99/Add.1.
3. The Chairperson noted that the documents prepared for the meeting emphasized Haiti's
reform efforts, for the economy was at the present time one of the most liberal in Latin America and
the Caribbean.  However, socio-political instability and delays in implementing the structural
components of the reforms had adversely affected economic performance.  Socio-political stability,
pursuing structural reforms, streamlining import duties, improving multilateral goods and servicescommitments and adapting domestic legislation to the reforms already embarked on could help Haiti
to fully exploit its potentials and the opportunity afforded for attracting investment.
4. The Chairperson gave the floor to the head of the delegation of Haiti for his opening
statement on behalf of his delegation.WT/TPR/M/99
Page 3
II. OPENING STATEMENT BY THE REPRESENTATIVE OF THE REPUBLIC OF
HAITI
5. After thanking the Chairperson, Minister Jean-Claude Roche, quoting the President of the
Republic of Haiti, recalled the importance of placing trade policy within the overall framework of the
country's economic recovery, more particularly by significantly reducing under-employment and
unemployment, by utilizing Haiti's comparative advantages and assigning resources to profitableactivities.  Such a course should also be accompanied by improved relations between economic
operators and the State, through simplification of administrative procedures and combating
arbitrariness and inequity in the granting and monitoring of privileges.
6. Haiti's decision to agree to a trade policy review had been difficult because of the country's
lack of resources, yet advisable in the light of the current cooperation with the International Monetary
Fund and commitments at the multilateral, regional (Free Trade Area of the Americas (FTAA)) and
subregional (Caribbean Community a nd Common Market (CARICOM)) levels.
7. It should be emphasized that, despite Haiti's trade and economic liberalization efforts, the
effects in terms of raising levels of living, of sustainable development and full employment were still
modest.  The premature elimination of trade barriers had had an adverse effect on domestic industry
and had been accompanied by job losses and, as a corollary, a deterioration in the social crisis.  It was
compounded by the freeze on international cooperation which, for three years, had undermineddemocratic gains.WT/TPR/M/99
Page 4
8. Despite such a poor picture, the Government was still attached to the principle of balanced
multilateralism and continued to undertake major reforms to modernize the economy and benefit from
the advantages of liberalization.  In that context, a number of actions had been taken, notably to
liberalize financial markets, loosen the constraints on commercial banks by making limited use of
reserves as a monetary tool and thus build up the supervisory capacity of the Central Bank.  Again,the preparation of a new law on the autonomy of the Central Bank, new banking legislation consistent
with international rules and the elimination of franchises granted to State enterprises were all
measures that formed part of the reform process.  He called on Haiti's partners to loosen the vice that
was hindering all possibility of growth and was strangling the country's development.
9. For the purposes of fiscal consolidation and increased transparency, it had been agreed with
the Haitian Government to gradually reduce the use of current accounts, to publish the budget after
parliamentary approval, to strengthen the supervisi on capacity of the High Court of Audit, to audit
State enterprises scheduled for modernization, and to enact a new banking law by the end of
December 2003.  The funds obtained through new measures for fiscal and monetary recovery and
good governance would help to pay off arrears in the multilateral debt.
10. It should be emphasized that the Haitian Government regarded trade and investment as
essential to growth and its objective was to eliminate barriers to strong financial flows and trade.Various reforms undertaken or in hand met that priority, including the modernization of the legal
framework by revising the Investment Code, the enactment of a law on free zones, the reform of
business law and the preparation of a framework law on international arbitration.  Since the second
half of the 1990s, the Government had also been engaged in a programme of modernizing State
enterprises.  The legal foundation was the Law of 26 September 1996 establishing the Council for theModernization of State Enterprises (CMEP).  The CMEP's aim was to administer and follow up a
process designed primarily to achieve greater competitiveness in those enterprises.  The immediate
goal was to open up to competition those segments of the national economy that were still being
protected and to do so through progressive withdrawal of the State from production and through
increased participation by the private sector, both domestic and international, in financingmodernization of the target enterprises, with the St ate retaining its role as regulator and facilitator.
11. Two State enterprises had been modernized, namely a cement factory and a flour mill.  The
results had proved very satisfactory inasmuch as the State was no longer subsidizing those inefficient
enterprises and was receiving dividends on its investment share and taxes on the taxable income
generated.  The programme would be continued, as soon as conditions were favourable for a proper
evaluation of the enterprises still to be modernized.
12. With regard to trade, the Republic of Haiti had embarked on a process of negotiations at the
multilateral (WTO), regional (FTAA), subregional (CARICOM) and bilateral levels.  The result was a
number of objectives that met the need for capacity- building in Haiti in terms of human resources that
could be mobilized to carry the process through.  He went on to mention other aspects of
capacity-building and said that, in the process of forming the FTAA, the Republic of Haiti had taken
part with 32 other countries in implementing the Hemispheric Cooperation Program (HCP) to developnational and subregional strategies for trade-related capacity-building.
13. Haiti's national capacity-building strategy had been devised with help from the Economic
Commission for Latin America and the Caribbean (ECLAC), which, with the Inter-American
Development Bank (IDB) and the Organization of American States (OAS), made up the Tripartite
Committee instructed by the hemisphere's Ministers of Trade to assist the smaller and least-developedeconomies to participate in the FTAA process.  Haiti's capacity-building needs lay in negotiations,
implementation, adaptation to regional integration and trade liberalization.
14. Haiti required greater capacity, both in institutions and in human resources, to resume
multilateral and trade negotiations.  The country need ed, first, to create suitable structures andWT/TPR/M/99
Page 5
mechanisms to coordinate action by public and semi-public bodies and, secondly, to secure greater
dialogue between public and private institutions so as to encourage private institutions to take part in
the various stages of the negotiating processes.  There was a need, with the assistance of partners and
potential donors, to draw up and implement training programmes for contact persons in the ministries
and other public and private sector institutions required to cooperate in the field of trade.
15. It should be emphasized that Haiti's efforts to fulfil its multilateral regional and subregional
commitments were often handicapped by the shortage of financial and human resources.  The
shortage prevented Haiti from covering all topics and from playing a full and proper part in meetings
of, for instance, the FTAA's working groups.  Assistance, including financial assistance, was needed
to strengthen the Haiti Mission to the WTO for the resumption of the post-Cancún multilateral
negotiations.
16. It was necessary to go beyond mere technical assistance.  He hoped that cooperation with
donors would go hand in hand with financing mechanis ms suited to the needs of the most vulnerable
economies so as to avoid any marginalization.  Special and differential treatment for the LDCs,
including Haiti, was of only token value inasmuch as the country was facing major supply-side
constraints that prevented it from actually benefiting from such treatment.  Consequently, to adapt
favourably to the rise in regional integration movements and the globalization and trade liberalization
process, Haiti had to rely on support from donors.
17. Lastly, the Minister said that his country had learned from the trade policy review process.
He reiterated his country's adherence to the multilateral trading system and expressed the hope that it
would be possible to count on the solidarity of bilateral and multilateral partners to ensure beneficial
integration of Haiti into the global economy.WT/TPR/M/99
Page 6
III. STATEMENT BY THE DISCUSSANT
18. Haiti's difficulties in reaping the benefits of its liberalization efforts since 1986 were mainly
due to political instability which impeded full impl ementation of the necessary reforms, thus limiting
the country's capacity to attract the required investment.  Investment had fallen and poverty increased,
with a downward spiral in unemployment and losses in terms of productivity.  Political instability hadalso undermined the impact of the stabilization programmes Haiti had embarked on since the 1980s
under agreements with the World Bank and the IMF and had limited the results of the privatization
process.  The sanctions from 1991 to 1994 had seriously affected Haiti's economy.  In particular, the
suspension of ODA during that period and the reduction in ODA since 1997 following the political
deadlock had had a negative effect, since foreign aid accounted for a large proportion of Haiti's GDP
and covered a substantial part of the deficit in the current balance.
19. Economic growth had been low in Haiti partly because of lack of investment, high production
costs, deficiencies in terms of infrastructure as well as high costs for basic services.  Macroeconomic
imbalances had become more marked in the past two years, with depreciation of the Haitian currency,
renewed inflation due to fiscal and monetary problems, high interest rates and an increase in the
public and external deficits.  She asked the Haitian delegation for information on the prospects for
improvements in the socio-political situation that were a precondition for any sustainable economicgrowth rate and development and the prospects for better macroeconomic performance.
20. Until the macroeconomic situation improved (including employment and growth), a large
proportion of the Haitian population would continue to live in poverty.  Per capita GDP had fallen
over the past three decades by an average annual rate of 5.2 per cent.  With a per capita GDP of
US$430 in 2000/2001, Haiti was the only LDC in the western hemisphere.  The unemployment ratewas very high (around 60 per cent of the workforce).  Most jobs were still concentrated in agriculture,
while the informal sector was above all a critical element for subsistence.  The feature of the age
pyramid was a very large proportion of young people, and hence the demand for jobs could only
grow.  In view of the very low levels of formal employment, the situation created a potential risk of
social instability.  She asked the Haitian delegation to describe the Government's strategy to tacklethat situation.
21. Haiti still had a deficit in trade because of sluggish demand in the United States for Haitian
exports and the drop in value of some primary products, such as coffee and cocoa, two of Haiti's main
export products.  Preferential schemes such as the "Everything Bu t Arms" (EBA) and the
United States and Canadian programmes could benefit Haiti if it had the products to market.  She
asked for information on Haiti's difficulties in taking advantage of preferential treatment provided by
other countries.
22. Despite the constraints, Haiti was playing an active part in various regional integration
initiatives such as the process to create the FTAA.  The Haitian Parliament had also ratified the treaty
making Haiti a member of CARICOM.  Haiti was also a signatory of the Cotonou Agreement as a
member of the Africa, Caribbean and Pacific (ACP) group of countries.  She would like to know what
the anticipated impact was of joining CARICOM in terms of adhering to the common tariff structure.
23. As to trade policy instruments, she welcomed the reforms carried out by Haiti.  From a closed
and highly regulated regime in 1986, Haiti had overcome difficult political and economic
circumstances to adopt a particularly liberal regime.  A simplified tariff structure was now the major
trade policy instrument.  However, pre-shipment  inspection fees were still high, additional excise
duties were imposed as well as tariffs on petroleum products that did not respect Haiti's multilateralcommitments.
24. Further reforms should enable Haiti to rationalize import taxation and improve adherence to
WTO principles.  The tariff regime needed to be more predictable and transparent with legislation onWT/TPR/M/99
Page 7
contingency trade remedies, sanitary and phytosanita ry (SPS) rules and standards, competition policy
and intellectual property protection.  She would like to know what measures were envisaged to
involve all of the stakeholders, including the private sector and civil society, in Haiti's trade policy
formulation.
25. Implementation of Haiti's commitments should remain a priority, but the country was facing
human resources limitations.  Haiti had obtained a waiver to delay application of the WTO CustomsValuation Agreement until 30 January 2003 but was still using the Brussels Definition of Value.
Similarly, difficulties in implementing and administering the Agreements on Technical Barriers to
Trade (TBT), SPS measures and the intellectual property regime should be overcome so that Haiti
could respect its commitments and fully benefit from market access.  Haiti had identified its main
technical assistance requirements, which were largely covered by the WTO, the ITC, the World Bank
and other bilateral donors.  She asked the Haitian delegation to indicate the Government's plans to
ensure that all the legislation was in conformity with WTO obligations.
26. The Haitian Parliament had enacted a new Inve stment Code.  A more efficient investment
mechanism had been developed and food inspection capacity had been enhanced.  She asked the
delegation to indicate whether the Government could elaborate on how the new Code was expected to
encourage foreign direct and domestic investment.
27. With reference to sectoral policies, she noted that growth over the past six years had been in
trade-related services, tourism, construction and public works as well as transportation and
communications services.  The importance of agriculture had been declining as the sector had not
been adapting to changes in the national economic system and the international environment.  The
stagnation in manufacturing was largely attributable to the decline in the assembly sub-sector,
traditionally based on exports to the United States.  She would like to know whether the substantialincrease in exports of textiles in the first half of 2003 was sustainable.  The prospects seemed to be
more encouraging for agriculture, provided, however, that planned infrastructural improvements were
made.
28. Agricultural subsidies in third countries, notably subsidies in the United States to rice
producers, had had a devastating effect on the situation of Haiti's farmers, who were the backbone ofthe society and a major source of employment.  In following structural adjustment programmes, Haiti
had reduced import tariffs on rice from 50 per cent to three per cent, which had led to a marked drop
in prices and improved availability of that staple for the urban populations but with a disastrous effect
on a large part of the rural population in the absence of other means of livelihood.
29. Large scale deforestation was still one of the main environmental problems the country was
facing.  Energy came largely from firewood, since access to electricity was extremely limited.  The
shortage of drinking water was another handicap, and meant that most of the population had to buy it.Manufacturing, which accounted for most of Haiti's exports, was severely affected by the embargo
and by poor infrastructure, limitations that also affected the possibilities for exploiting the country's
enormous potential in tourism.  She would like to know what plans the Government had to tackle
infrastructure problems, particularly those relating to water supply, energy, telecommunications and
transportation.
30. The telecommunications sector remained State owned and Haiti had not bound any of the
measures affecting that sector and the postal services.  Likewise, the transportation sector required
further privatization.  Recent efforts to improve the telecommunications infrastructure and plans for
further privatization were commendable.  She asked the Haitian delegation whether more detailed
information could be supplied on privatization plans for services sectors still largely undergovernment control.  She also asked what measures the Government intended to take to implement
product and market diversification.WT/TPR/M/99
Page 8
IV. STATEMENTS BY PARTICIPANTS
31. The Members extended a welcome to the Haitian delegation headed by Minister
Jean-Claude Roche and to the discussant, Mrs Adai r HEUCHAN.  They appreciated Haiti's continued
efforts to reform and diversify its economy, its co mmitment to the multilateral trading system and its
active participation in the current negotiations.  They encouraged it to continue on that path.
32. The representative of the United States welcom ed Haiti's recent progress in stabilizing the
economy and the continuing efforts to strengthen structural reforms needed to create conditions for a
more diversified economy.  The United States supported Haiti in its ongoing efforts to liberalize its
economy and create the conditions for further investment and participation in the global economy.
While it was encouraging that several trade-related reforms had been undertaken, including a new
Investment Code and tariff rate harmonization, there still remained many areas where Haiti must work
to bring domestic legislation into compliance wi th its WTO commitments.  In addition, regulatory
requirements remained time-consuming and costly and he would like to know whether there had been
progress in further privatization of State enterprises.  There were also other areas in which Haiti
should implement its WTO commitments, more particularly with regard to the Agreements on
Customs Valuation, Sanitary and Phytosanitary Measures, Technical Barriers to Trade and TRIPS.
33. The representative of Canada said he apprec iated Haiti's commitment to implementing the
WTO Agreements, improving its macroeconomic policy and basic governance, and modernizing the
financial system.  He also emphasized the efforts to promote political stability and security.  Canada
encouraged Haiti to enhance the predictability, transparency and openness of its trade and investment
regime, more particularly by continuing with legisl ative reforms, including the reforms concerning the
investment code, and effectively implementing them.  Canada called on the Haitian authorities tobring domestic legislation into line with the WTO Agreements, especially in regard to intellectual
property protection.
34. The representative of the European Union (EU) commended the considerable efforts made by
Haiti since 1986 to liberalize its foreign trade regime, by removing most quantitative restrictions and
export duties, and by tariff reduction and simplification.  He also welcomed Haiti's participation inCARICOM and recalled the adverse effects of political instability, which limited Haiti's capacity to
undertake major reforms, especially in terms of privatizing some State enterprises, a process that now
seemed to be deadlocked and had no prospect of a solution.  Also important were the agricultural
reforms and those concerning basic services.  He would like to have more details about the new
legislation which seemed to be under preparation on protection of intellectual property and stressed
the need for it to be consiste nt with the TRIPS Agreement.
35. The representative of Brazil commended Haiti on the reforms undertaken since the 1980s,
despite a context of political instability and economic difficulties.  Emphasis should also be placed on
Haiti's endeavours to develop its economic environment and participate in the multilateral trading
system.  He encouraged Haiti to proceed with its process of reforms, to modernize agriculture, to
improve infrastructure and explore its potential in tourism.  Questions on market access, government
procurement and import prohibitions, restrictions and licensing had been submitted to the Haitiandelegation in writing.
36. After mentioning the political, structural and economic difficulties in Haiti, the representative
of Gabon expressed her hope that the country would fully benefit from the greater stability glimpsed
for the years ahead.  She commended Haiti on its political and institutional reform efforts andencouraged it to set up structures to attract investme nt.  In the context of that process of reform, and
particularly reforms contributing to greater politica l stability, she recalled the importance for Haiti of
being able to rely on aid from multilateral and bilateral partners.  She also pointed to Haiti's many
assets, more particularly its tourist and cultural resources, and called for targeted technical assistance
for Haiti to incorporate women in the country's economic life.WT/TPR/M/99
Page 9
37. The representative of Benin welcomed the Haitian Government's economic and commercial
reforms.  He recognized the constraints the country was facing and pointed to the importance of
institutional reforms, improving the legislative and regulatory framework and fiscal and customs
reforms for proper participation in the regional group.  In his opinion, Haiti's initiatives deserved to be
supported and he urged bilateral and multilateral partners to provide the requisite aid for Haiti to be
integrated into international trade and to combat poverty.  He called for mobilization of the necessarymeans to enable Haiti to continue to implement pr ogrammes such as those initiated in the context of
the Integrated Framework.
38. The representative of Japan emphasized Haiti's efforts regarding trade liberalization.  He
mentioned Haiti's active participation in various regional integration initiatives, such as CARICOM
and the FTAA.  It should nonetheless be noted that trade rules and laws were still not fully
established, something that was an obstacle to progress  in trade liberalization in Haiti.  He would like
to know whether Haiti was able to implement the WTO Agreements.  It was to be hoped that Haitiwould proceed without difficulty in implementing the new legislation on intellectual property rights
and continue to strengthen, in keeping with the TRIPS Agreement, the requisite legal framework.
39. The representative of Barbados commended the Haitian Government for implementing
programmes which had made the country's economy one of the most liberal in Latin America and the
Caribbean.  He noted that one of the main aims of Haiti's reform process was to diversify theproductive base and assign a key role to the private sector.  However, the liberalization of the trade
regime had not to date reaped all the expected benefits of opening up to international trade and might
even have hampered the process of growth and poverty reduction.  He emphasized the importance to
Haiti of benefiting from facilitated market access and technical assistance, including capacity
building.
40. The representative of Switzerland welcomed the fact that Haiti had now joined in the spirit of
the WTO and lowered the general level of tariffs, chiefly in manufacturing.  He hoped that the trade
liberalization reforms in Haiti would be fully implem ented and in bearing fruit they would enable the
country to overcome the socio-political problems with which it was confronted.  He went on to note
the high concentration of exports, particularly in the textiles sector, and expressed concern aboutincorporating the Multifibre Arrangement in the GATT by the beginning of 2005, and the erosion of
preferences for Haiti.  He asked the Haitian delegation whether the impact of those developments on
exports had already been evaluated and whether measures were envisaged to steady or mitigate the
effects.
41. The representative of Chinese Taipei said that  Haiti's trade policy reflected its commitment to
the WTO and to integrating the country in the economies of the region.  It was gratifying that Haiti's
investment-related measures did not constitute barriers to investors from his own country and that theimport regulations did not represent any restrictions on exports to Haiti.  He would merely suggest
that the Haitian authorities simplify import licensing procedures in the interests of trade facilitation.
He added that the combination of trade liberalization and more transparent regulations should enable
Haiti to attract foreign investment and so participate in strengthening its economy and fending off
social discontent.
42. The representative of Cuba noted that the difficult economic situation in Haiti was due
particularly to the recession in its agricultural sector as a result of limited mechanisation, bad weather
conditions and unfair competition from imports of many subsidized foodstuffs.  She welcomed the
completion of the reforms by the Haitian Government , particularly in the fiscal field, in investment
and in comprehensive trade liberalization.  She would nonetheless emphasize that dependence onimports did very little to foster growth;  trade liberalization had led to a decline in the industrial
sector, an exodus from rural areas and emigration by Haitian workers.  She pressed for the aid Haiti
needed to ensure it was integrated into world tr ade, to revitalize its economy and so help cut down
poverty.  She called for a halt to the sanctions imposed on Haiti by the United States and the EU.WT/TPR/M/99
Page 10
43. The representative of the Republic of Korea commended the Haitian Government for its
efforts to liberalize its trade and economic regime, despite a particularly difficult situation, marked by
severe lack of human resources, and by periods of political and economic instability.  He noted that
the improvement in Haiti's economic performance was largely due to the creation of a liberal
economic environment and encouraged the Haitian Government to speed up liberalization of theeconomic regime, particularly through privatization, transparency in the customs duty system and
intellectual property rights protection.
44. The representative of India said that, while the process of liberalization and structural reforms
in Haiti had been significant, the scenario di d not seem very encouraging because deep-seated
constraints, including poor infrastructure, extreme poverty and difficult conditions, had prevented the
reforms from producing positive effects in terms of growth and development.  As to the Haitian
Government's feelings about the unfavourable effects of trade liberalization on industry andagriculture, Haiti stood in need of technical assistance in order to consolidate its economic and trade
base.
45. The representative of Jamaica noted Haiti's needs in financial aid and technical assistance
from bilateral and multilateral partners to enable it to embark on structural and institutional reforms
and also with regard to human resources, without which it would be difficult for it to increase the flowof domestic and foreign investment.  He pointed to Haiti's particularly liberal trade regime but also the
fact that Haiti was the only LDC in the hemisphere.  It had a high rate of unemployment, the
percentage of trade to GDP was still low and it had a chronic deficit on current account.  It seemed
that the effect of trade liberalization had been chiefly to encourage imports and he noted the inability
of some industries to face up to the resulting competition.
46. In his opinion, the persistent difficulties faced by Haiti, despite the Government's reforms and
the liberalization of the economy, reflected the need for an integrated approach to problems, including
production capacity-building and a firm commitment  by the international community to allocate
resources to back up the efforts by the Haitian authorities.  Those commitments had to some extent
already materialized in the context of the Integrated Framework through the identification ofassistance projects, but Haiti still had many institutional needs, particularly in training cadres for the
public sector, reforming the legislative framework and participating in multilateral negotiations.  He
emphasized the shortcomings in infrastructure and institutional mechanisms to implement the
Agreements on Sanitary and Phytosanitary Measures and Technical Barriers to Trade.
47. The representative of Trinidad and Tobago said that Haiti was facing a number of challenges
in its efforts to achieve political and economic stability.  They included declining agricultural and
manufacturing sectors, high interest rates, increasing inflation and inadequate inflows of foreign directinvestment.  He emphasized the need for Haiti to receive assistance from its partners to tackle those
challenges and also those stemming from the need to meet its obligations under multilateral and
regional agreements.  He had noted with some measure of optimism the new programmes in the
agricultural sector, the plans for improving the skills of the workforce, the proposals for revitalizing
the mining sector and enhancing and developing tourism and other sectors of the economy.  He wouldnevertheless emphasize the need for Haiti to redouble its efforts to create the necessary social and
political environment for foreign direct investment  and to improve the country's economic prospects.WT/TPR/M/99
Page 11
48. The representative of Uganda noted the extent of Haiti's reforms, particularly in liberalizing
its trade regime, and regretted that they had not produced the results expected.  He referred to the
effects of increasing competition (relating to imports) on some sectors of the economy and stressed
the need to implement the process of reforms sequentially so that Haiti could avoid
deindustrialization.  Haiti was dependent on international aid, particularly to finance its development
and structural adjustment programmes, and he deplored the reduced funds supplied to Haiti in thatregard.  In particular, he emphasized the need for assistance in training for the multilateral trading
system, institutional support, legislative reforms and negotiating capacity, including at the regional
level.  He hoped that Haiti would receive support from the WTO and other partners in implementing
the Agreements, more especially the Agreements on Customs Valuation, Sanitary and Phytosanitary
Measures, Technical Barriers to Trade, and TRIPs.WT/TPR/M/99
Page 12
V. REPLIES BY THE REPRESENTATIVE OF THE REPUBLIC OF HAITI AND
ADDITIONAL COMMENTS
49. After thanking speakers for their encouragement and support for the economic reform
programme to ensure that Haiti was integrated into the global economy, the representative of Haiti
recalled the difficulties Haiti had faced over the past  three years, including the lack of resources, the
economic sanctions and the social and political crisis.
(i) Economic environment
50. As to the macroeconomic environment, his country was committed, with the support of the
International Monetary Fund, to implementing a po licy geared to macro economic stab ility, sounder
public finances, modernized State enterprises and an improved business climate.  The latter was
especially designed to revitalize investment and growth after a more than 25 per cent contraction in
the economy from 1991 to 1994, the years of the military coup d'état .
51. That stabilization phase had started to produce encouraging results in terms of economic
growth, mastering inflation and stabilizing the ex change rate.  An economic environment capable of
moving the country along the path of sustainable growth had been created and substantial loans had
been negotiated and approved by some multilateral partners for that purpose.  Economic sanctions
imposed on Haiti by bilateral and multilateral partners, under the pretext that in some cases thegeneral elections in the year 2000 had involved irregularities.  The sanctions had led to a freeze on the
loans already approved, thereby jeopardizing the chances of seeing a resumption of lasting economic
growth.  He reiterated the appeal to bilateral and multilateral partners for the sanctions to be lifted so
that the country could be favourably integrated into the global economy.
52. Despite such a difficult context, the Haitian authorities had embarked on fiscal, monetary and
trade reforms to create a climate conducive to growth.  At the fiscal level, the reforms had included
strengthening the country's fiscal structures, revising the customs tariff, improving the fiscal control
arrangements, more particularly by introducing the Automated System for Customs Data
(ASYCUDA), eliminating State enterprise franchises , liberalizing the petroleum products market and
revising the Investment Code in the light of Haiti's obligations in the multilateral trading system.
53. At the monetary and financial levels, the Haitian Central Bank, which was responsible for
shaping and administering monetary policy, had liberalized interest rates and exchange rates.  At the
same time, it had been modernized, by automating almost all its activities, so as to build up its
operational capacities and improve the handling of monetary policy and supervising the banking
system.  Those reforms had, among other things, led to computerized Central Bank offices, automated
production of reports and clearing results and the initiation with the commercial banks of a project to
computerize the clearing house, improving the accounting system and joining the SWIFT network.
54. On the recommendation of the IMF, the Government had recently adopted a Staff Monitoring
Programme (SMP), and the results, assessed at the mid-term review by IMF experts, augured well for
successful execution of the programme.  In addition, to take up poverty reduction challenges, the
Government had engaged in talks with various donors in the context of the preparation of a Strategic
Poverty Reduction Programme in which trade was regarded as a strategic tool for improving the livingconditions of the Haitian population.
(ii) Trade policy
55. In its trade policy, Haiti had, in recent years, adopted a number of measures to liberalize
trade, more particularly by lowering customs duties in the context of a structural adjustment
programme in 1986, binding customs duties at a very low level in the context of joining the WTO,eliminating quantitative restrictions, submitting a schedule of specific commitments whereby HaitiWT/TPR/M/99
Page 13
had become a very open country in regard to trad e in services, joining CARICOM and participating in
the current FTAA negotiations.
56. Haiti's membership of CARICOM had, among othe r things, been designed to increase trade
with countries in the region and to define a common regional position on negotiations in the
hemisphere and at the multilateral level.  Haiti's effective participation in that regional economic
group might mean having recourse to GATT Article XXVIII and, in such an event, he hoped that itwould be possible to count on the support of Haiti's main partners, notably those with an initial
negotiating right.
57. Haiti benefited from various preference schemes such as those under the Cotonou Agreement,
the EU "Everything But Arms" initiative or the United States' Caribbean Basin Initiative.  He
nonetheless pointed out that the Haitian economy's low production capacity did not allow it to fully
profit from those preferences;  in that respect, effective implementation of the Integrated Framework
was important to Haiti.
58. Haiti had taken note of the comments by some Members on the problem of implementing
certain WTO Agreements, such as those on customs valuation, TRIPS, SPS measures and TBT.  His
delegation had supplied explanations in that regard in the document containing the replies to the
questions it had received in writing.  Haiti would appreciate technical and financial assistance to help
harmonize its legal framework with the provisions contained in those Agreements.  However,implementation of the Customs Valuation Agreement required structural and legislative changes,
including the introduction of computerized systems for better control of trade flows.  In that regard,
the Government was engaged in a broad-ranging programme of reform of the customs administration.
(iii) Sectoral policies
59. He provided some information in response to various concerns expressed by certain
delegations in regard to sectoral policies.  In view of the multifunctional character of agriculture, the
Government's agricultural policy was designed to modernize the sector and ensure food security and
increased exports.  In that respect, Haiti favoured  elimination of the subsidies granted by developed
partners.
60. Manufactures accounted for the largest share of Haitian exports.  In the first half of the 1990s,
the sector had nonetheless declined and the Government had responded by adopting a number of
incentives, including a revised Investment Code and the Law on Free Zones.  He hoped that, with the
incentives contained in those two instruments, Haiti would be able to attract domestic and foreign
investment, particularly in the manufacturing sector.  He also drew the attention of participants to the
results of the privatization of two State enterprises under the Government's privatization programme.
61. In the multilateral trading system Haiti had en tered into commitments that made the services
sector attractive to foreign direct investment.  Haiti had recognized potential in the tourist industryand intended to create an environment to exploit that potential by transforming its sites, its history, its
art and its painting into genuine tourist products.
62. He emphasized the importance of telecommunications, which was a leading edge industry for
Haiti.  In the light of recommendations from ITU experts, the Government had drawn up a draft law
to support development of the sector.  For that purpose, the Government had included a Statetelecommunication enterprises and postal services in the list of enterprises falling under its
modernization programme.  Haiti thus expected to have universal access to information that would
help revitalize the sector.  In the activities under its programme for Haiti, the ITU had included
assistance in radio broadcasting, the introduction of new technologies, privatization,
telecommunications and the development of human resources.WT/TPR/M/99
Page 14
63. Lastly, the representative emphasized the importance Haiti attached to the Trade Policy
Review and welcomed the fact that it had made for an awareness of the country's strengths and
weaknesses.  He reiterated his hope that bilateral and multilateral partners would help in order to
make best use of the Haitian economy's potentials and to gain maximum benefit from the balanced
multilateral trading system advocated by the Haitian Government.WT/TPR/M/99
Page 15
VI. CONCLUDING REMARKS BY THE CHAIRPERSON
64. This first Trade Policy Review of Haiti has provided the opportunity for a better
understanding and appreciation of its trade-related policies.  Our discussion has been facilitated by the
frank involvement of Minister Jean-Claude Roche and his delegation.
65. Members were encouraged by Haiti's unilateral reform efforts that have made it one of the
most liberal economies in Latin America and the Caribbean.  However, because of socio-politicalproblems, the lack of institutional capacity, supply-side constraints and delays in structural reforms,
the efforts are yet to show their full benefits.  Members encouraged Haiti to tackle these impediments
and to pursue its reforms.  The new Investment Code might help attract the foreign direct investment
needed to improve Haiti's economic performance.
66. Members commended Haiti on its active participation in the multilateral trading system.
Noting that Haiti was also becoming involved in regional trade agreements such as CARICOM,
Members enquired about the likely impact of the ag reements and how Haiti intended to ensure their
compatibility with its current trade regime.  Hait i was encouraged to mainstream trade into its
development and poverty reduction strategies.  Some Members noted Haiti's technical assistance
needs;  they also remarked on Haiti's difficulties in taking advantage of preferential treatment and on
the erosion of preferential margins.
67. Trade liberalization has been a main component of Haiti's reforms.  Members praised Haiti
for the simplification of its tariff structure;  MFN tariffs averaged 2.9 per cent, with about 65 per cent
of lines carrying the zero rate.  However, inconsistencies were noted in the imposition of excise
duties, and other duties and charges (inspection fees in particular) were deemed relatively high.
Members encouraged Haiti to narrow the gap between bound and applied rates, to transpose its former
tariff bindings into the Harmonized System, and to pursue its reform of taxation.
68. Noting that the waiver granted to Haiti to de lay application of the WTO Customs Valuation
Agreement had expired on 30 January 2003, Members sought clarification about its plans to
implement the Agreement.  They urged Haiti to start taking steps to bring its intellectual property
regime into compliance with the TRIPs Agreement, and stood ready to provide the necessary
assistance.
69. Some Members pointed out that structural problems, inconsistent policies, and exogenous
factors, (including bad weather conditions and unfair competition from foreign countries) had
contributed to the decline of agriculture and manufacturing, and had further concentrated economic
activities in services.  The pursuit of the privatization programme might contribute to economic
diversification by enhancing efficiency, reducing costs of basic services needed for production, and
releasing resources for improvement of infrastructure.  This might also promote Haiti's tourism
sub-sector, which has largely untapped potential.
70. Members also sought further clarification on a number of issues, including trade policy
formulation, import licensing, local-content requirements, export assistance, contingency trade
remedies, standards and sanitary and phytosanitary measures, and the government procurement
regime.
71. Members appreciated the replies provided by the delegation of Haiti and looked forward to
receiving additional material.WT/TPR/M/99
Page 16
72. I believe that this review has highlighted the efforts made by Haiti to unilaterally liberalize its
economy despite various difficulties.  I am pleased that some Members identified areas in which they
were providing trade-related technical assistance to  Haiti, and to take note of their commitment to
continue their assistance.  I urge that we follow through on this, particularly in the context of the
Integrated Framework.  Haiti needs this support to mainstream its trade-related policy into its
development strategy, address its supply-side constraints, and diversify its economy.  In sum, subject
to socio-political stability, further assistance by major trading partners will be necessary if Haiti is to
meet its development potential and fully integrate into the multilateral trading system.
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