WT/TPR/S/99 Trade Policy Review
Page 52
IV. TRADE POLICIES BY SECTOR
(1) INTRODUCTION
1. The Haitian economy is marked by growth in the services sector's share of real GDP, whereas
the agricultural sector's contribution to domestic value-added has declined.  The manufacturing
industry, in particular textiles and assembly activities, are still the principal export sector.
2. Haiti's agricultural policy is aimed at achieving food security and increasing exports and the
agricultural sector has been substantially liberalized for that purpose.  As in other sectors of the
economy, tariffs on agricultural products (Major Di vision 1 of ISIC Revision 2) have been reduced to
an average of around 4.5 per cent.  Agriculture nevertheless remains the most protected of all the
production sectors (Table AIV.1).  The other measures  affecting imports of agricultural products are
limited to sanitary and phytosanitary controls.  The Government provides support in the form ofcustoms and/or fiscal concessions and subsidies on imports of agricultural inputs.
3. Activities in the mining and energy sectors contribute only marginally to real GDP and
generally receive lower tariff protection (2.1 per cent on average) than that afforded to the other
sectors (Table AIV.1).
4. Manufacturing, although relatively undeveloped, accounts for the largest share of exports
(close to 76 per cent of the total value of Haiti's exports).  Customs duty and tax exemptions are
granted in order to promote manufacturing activitie s in Haiti.  These are needed to some extent
because of the degressivity of tariffs in certain industries.  Tariff protection in this sector (2.8 per cent
on average) is very close to the overall average tariff rate (2.9 per cent).
5. Services are the largest sector in terms of contribution to real GDP.  Haiti is a net importer of
services, however, with a recurrent services balance deficit.  Substantial State participation in the
sector's production activities, in particular telecommunications, transport and postal services, helps tomaintain relatively inefficient structures and high production costs.  Haiti's commitments under the
General Agreement on Trade in Services (GATS) cover the provision of services such as educational,
financial, construction and related engineering, hotel and restaurant, and veterinary services.
Measures affecting the supply of other types of services have not been bound.
(2) A
GRICULTURE AND RELATED ACTIVITIES
(i) Overview
6. Approximately 48 per cent of Haitian territory is under cultivation.  The importance of the
agricultural sector (including fisheries, livestock and forestry) in the national economy has declined
steadily in recent years – its share of real GDP falling from 38 per cent in the late 1980s to less than
30 per cent in 2000.  The decline in the relative importa nce of agriculture is due to the growth in the
services sector and a drop in agricultural output as a result of the rural exodus, the embargo on the
production of exportable goods, and adverse climatic conditions.  In the early 1990s, the sector even
experienced an average negative growth rate of the order of 1 per cent per year.  Between 1995 and
2000, after democracy was restored and the political situation improved, the growth rate approached
an annual average of 0.2 per cent.  The population remains essentially rural, however, with close to45 per cent of Haiti's workforce involved in agriculture.
1
                                                     
1 Haitian Institute of Statistics and Information Technology (2000a).Haiti WT/TPR/S/99
Page 53
7. Output remains too low to meet the populati on's food needs, which are partly covered by
imports (US$210.74 million in 1995 and 278.97 million in 1999).  In 1999, rice imports amounted to
US$82 million, close to 30 per cent of total food imports (Table IV.1).  Between 1995 and 2000,
agricultural exports fell from US$49.61 million to 32.42 million.2
Table IV.1
Food imports (in US$ thousands)
Products 1995 1996 1997 1998 1999
Dried beans 25,000 10,000 12,000 15,000 16,000
Maize (corn) 6,900 630 1,700 1,200 1,200
Rice 71,000 70,000 81,000 72,000 82,000
Other 107,840 138,990 114,900 148,280 179,770
Total 210,740 219,620 209,600 236,480 278,970
Source: FAO, and information provided by the Haitian authorities, MARNDR.
8. Haiti's main cash crops are coffee, cacao, essential oils, pita fibre and twine, mangoes, sugar
cane and white rum.  Food crops include rice, which is the country's staple food, millet, maize (corn),
peas, groundnuts, beans, fruit (lemons, breadfruit and avocados), tubers (cassava, sweet potatoes,
yams and malanga) and bananas.  Coffee remains the main export commodity, yielding
US$18.04 million in revenue in 2000.  Mangoes, cacao and essential oils are also major exportproducts, with earnings amounting to US$7.98, 6.05 and 2.46 million respectively in 2000.  In 2000,
agricultural exports accounted for some 24 per cent of the total value of exports.
9. In 1999/2000, the share of fisheries, livestock and forestry in agricultural production
amounted to around 22 per cent.  Activities in these sub-sectors are essentially of the traditional type.
Some fisheries products are exported, including shellfish, crabs and ornamental fish, which are
currently the most important exports.
10. The agricultural sector faces a number of serious problems.  Title deeds are vague and
insecure.  The number of landless farmers rose from 30,000 in 1980 to 600,000 in 1997, and nearly
200,000 hectares are uncultivated.  There is a high risk of expulsion, which explains why investment
by individual farmers remains limited.  Arable land is divided up into small-scale agriculturalholdings:  75 per cent have under two hectares of land (Table IV.2), which makes it difficult to benefit
from economies of scale.  The majority of farmers are independent.  There are a few cooperatives, but
this form of association remains marginal and concerns only 2 to 3 per cent of farms.
Table IV.2
Farm size
Acreage Percentage of farms
Less than 1 hectare 15
Between 1 to 2 hectares 60
Between 2 to 5 hectares 15
Between 5 to 10 hectares 8
More than 10 hectares 2
Source:   Information provided by the Haitian authorities.
11. The agricultural sector also suffers from a lack of infrastructure, particularly for irrigation.
Only 70,000 of the 1 million hectares of land cultivated annually are irrigated, which makes most
farms weather-dependent.  Deforestation is another serious problem in Haiti.  In 1998, forest areas
had already been reduced to no more than 2 per cent of the land area, considerably accelerating soil
erosion.  For farmers, access to credit remains limited and loans are often taken out at extremely high
                                                     
2 Bank of the Republic of Haiti (2001).WT/TPR/S/99 Trade Policy Review
Page 54
rates of interest.  Lastly, Haiti has a tropical climate and is therefore subject to hurricanes and frequent
droughts.
12. The above factors and the limited use of fertilizer and agri-chemicals explain the particularly
low yields recorded in the agricultural sector.3  Storage capacities are limited as well, leading to
marked fluctuations in agricultural supply and prices.
13. Haiti's agricultural policy aims to ensure food security, modernize agriculture and improve
production for export.  As about 80 per cent of international cooperation funds for agricultural
development have been frozen on account of the current political deadlock in the country, it has been
impossible to launch large-scale agricultural infrastructure projects such as the La Tannerie hydro-
agricultural development programme financed by the EU or the agricultural expansion programme in
Artibonite, funded by the Inter-American Development Bank.  As a result, the Government hasfocused on certain strategic priorities, pursued through development programmes such as the
expansion of hydro-agricultural infrastructure;  the exploitation of new farmland;  support for
production of food and export crops, livestock production, and fisheries and fish farming;  the
strengthening of agricultural research; combating deforestation;  and improving marketing channels
for agricultural products.
4  These programmes are implemented mainly through government financing
for certain types of investment and technical assistance.
14. The Government does not usually intervene in fixing the price of inputs, which is market-
based.  Under government development programmes, however, agricultural inputs and machinery are
fully exempt from import duties.  The Government also provides support for agricultural producers in
the form of low-interest loans and subsidies on the price of fertilizers and seed.
15. Domestic sales and imports or exports of certain commodities such as coffee and cacao are
subject to quality control.  This is carried out jointly by the Ministry of Agriculture, Natural
Resources and Rural Development (MARNDR), the Ministry of Trade and Industry (MCI) and the
Ministry of Public Health and Population (MSPP).  The MARNDR is also responsible for plant and
animal health control, which covers coffee, cacao, fruit, vegetables, tubers, seafood, live plants and
animals and animal products inter alia  (Chapter III(4)(ii)).  As a general rule, trade (including
exports) in animal and plant products is s ubject to prior authorization by the MARNDR
(Chapter III(3)(iii)).
16. The MARNDR is the main authority responsible for defining and implementing agricultural
policy and, in particular, for creating the conditions required to develop agriculture, fisheries and
forest conservation.  In its promotional activities,  the MARNDR cooperates with other bodies such as
the MCI, the Commission intersectorielle de production et distribution des semences agricoles
(CIPDSA) (Inter-Sectoral Comm ittee on Production and Distribution of Crop Seeds) and the Office de
developpement de la vallée de l'Artibonite (ODVA) (Artibonite Valley Development Board).  The
MCI identifies target markets and supplies informa tion to agricultural exporters.  The CIPDSA deals
with the distribution of inputs and regulation of the seeds sector, analyses seed quality and
implements the relevant national policy.5  The ODVA is responsible for developing the hydro-
agricultural infrastructure on 36,000 hectares of land in the province of Artibonite.
                                                     
3 According to a study carried out in 2001 by the European Food Security Network (RESAL), average
yields in Haiti are one third to 50 per cent lower than those in the neighbouring Dominican Republic.
4 Haitian Government (2001).
5 The CIPDSA is a body made up of Government representatives and representatives of the seed
production and distribution sector.Haiti WT/TPR/S/99
Page 55
17. The MARNDR has a unit to provide technical assistance to small-scale entrepreneurs wishing
to commence the processing of agricultural products, including fisheries products.  The Institution
nationale de réforme agraire (INARA) (National Institute for Agrarian Reform) was established in
1995 by a decree issued on 29 April.  The INARA is responsible for reforming land ownership
structures and for implementing agrarian reform in  favour of those actually working the land.  It
focuses on areas where repeated property disputes are jeopardizing the stability of agriculturalproduction, particularly in the Artibonite Valley, and has succeeded in identifying and reclaiming
plots of disputed land in this area.  Around 3,000 hectares are currently being distributed for
development to small farmers, working with support from the INARA and the ODVA.
18. Investment intended for agricultural development is largely financed through international
cooperation.  For the fiscal year 2001/2002, the MA RNDR plans an investment budget (including
counterpart funds for investment projects with associated financing) of the order of G306 million, and
international cooperation spending of G355 million.  Between 1997 and 2001, the share of the
national investment budget earmarked for agriculture ranged from 5 to 11 per cent.
19. The MARNDR is also implementing a Kennedy Round (KR2) fertilizer programme, financed
by the Japanese international cooperation agency.  The MARNDR acts as a direct operator, using the
Japanese cooperation funds to import fertilizers, machinery and equipment and ensuring their
distribution to farmers at prices for which it sets the ceiling.
20. According to the authorities, the Government  does not intervene in markets to control
agricultural prices, production, distribution, trade or marketing.  Farmers are nevertheless exempt
from income tax.
21. The simple arithmetic average of import duties on agricultural products (Major Division 1 of
ISIC Revision 2) is 4.5 per cent, with a ceiling rate of 15 per cent.  The average rate is 5.9 per cent onplant and animal products, zero on forest products, and 0.8 per cent on fisheries products
(Table AIV.I).
(ii) Main sub-sectors
(a) Cash crops
22. Coffee and cacao production levels have generally remained stable over the past five years,
with a slight increase in mango production (Table IV.3).  During the 1999/2000 season, coffee exports
accounted for close to 41 per cent of the value of agricultural exports, as compared to some 20.7 and
25 per cent, respectively, for cacao and essential oils and mangoes (Table IV.4).  The share of export
crops in currency earnings remains fairly low (Section (2)(i) above).
Table IV.3
Production of certain cash crops (tonnes)
Crop 1996 1997 1998 1999 2000
Green coffee 27,000 27,000 27,239 28,000 30,000
Mangoes 210,000 210,000 225,000 225,000 230,000
Cocoa beans 4,200 4,200 4,500 4,500 4,500
Source:   Information provided by the Haitian authorities.WT/TPR/S/99 Trade Policy Review
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Table IV.4
Exports of certain cash crops (in US$ millions)
Crop 1995 1996 1997 1998 1999 2000
Coffee 25.34 24.58 19.07 21.75 18.04 13.45
Cacao 5.69 3.74 4.25 7.5 5.96 6.5
Essential oils 10.67 6.99 2.94 3.72 2.42 2.46
Pita fibre and twine 0.87 0.6 0.84 1.96 4.55 2.03
Mangoes 7.04 5.03 7.02 5.8 6.74 7.98
Total 49.61 40.94 34.12 40.73 37.71 32.42
Source:   Bank of the Republic of Haiti.
23. The age of the plantations, disease and pressure from food crops are the main problems in the
coffee sub-sector.6  Local consumption accounts for about 50 per cent of Haitian coffee production.
Coffee and cacao exports are subject to phytosanitary and quality controls, and export requires apermit from the MCI, together with a certificate of analysis delivered after a tasting test conducted by
the Ministry.  Mango exports are also subject to phytosanitary control (Chapter III(4)(ii)).
24. The production, harvesting, gathering and marketing of products of these sub-sectors are
mostly handled by independent operators.  There are a few associations and cooperatives, such as the
Association des exportateurs de café (ASDEC) (Coffee Expor ters' Association), but these play no
more than a marginal role.  The coffee, cacao and Francisque mango sub-sectors receive technical and
financial assistance inter alia  from the EU (STABEX), the Inter-American Development Bank, the
Inter-American Institute for Cooperation on Agricu lture (IICA) and Chinese Taipei.  The Haitian
Government provides technical assistance (e.g. for projects to support coffee production and
marketing and to control disease) and financial assistance (e.g. for planting out seedlings and formarketing activities).  The MARNDR 's investment budget for these sub-sectors is of the order of
G2 million, i.e. less than 1 per cent of the total.
25. The average tariff rate is 2.5 per cent on coffee, tea, maté and spices (5 per cent on unroasted
coffee and 15 per cent on roasted coffee);  6.7 per cent on cacao and its preparations;  and 12.2 per
cent on sugar and confectionery.
(b) Food crops
26. Haiti grows mainly rain-fed food crops, with on e or two annual cycles or even three cycles a
year on certain irrigated plains.  Production sy stems largely rely on mixed crops grown without
chemical fertilizers.  Available figures point to a relatively stable output for bananas, peas and sweet
potatoes.  On the other hand, production of crops such as beans, yams, maize (corn), sorghum and
groundnuts is declining (Table IV.5), largely due to recent periods of drought.  Only cassava
production is on the rise because it is in high demand, and is relatively easy to grow, and efforts arebeing made to mechanize and process the production.
                                                     
6 "Arabica tipica" is the main variety of coffee grown in Haiti.Haiti WT/TPR/S/99
Page 57
Table IV.5
Production of certain food crops (tonnes)
 Crop 1997 1998 1999 2000
Bananas 540,000 577,669 580,000 570,000
Dried beans 50,000 35,000 35,000 30,000
Yams 240,000 193,000 195,000 197,000
Maize (corn) 230,000 206,096 215,000 212,000
Cassava 280,000 320,000 325,000 330,000
Sorghum 100,000 95,180 96,000 95,000
Dried cowpeas 35,000 36,605 38,500 37,000
Sweet potatoes 160,000 170,250 172,000 172,000
Groundnuts, in shell 25,000 20,000 21,000 20,000
Source:  FAO, 2001.
27. Crop yields are extremely low.  The land is cultivated manually using traditional methods,
and mechanization remains the exception.  Haiti has fewer than 200 tractors and a little over
3,000 animal-drawn ploughs.7  Crops, even those that are part of the population's staple diet, are not
produced in suffic ient quantities.
28. Most activities in these sub-sectors are conducted by independent operators.  The Haitian
Government subsidizes fertilizer, seed and certain types of machinery (pneumatic tractors in theDepartment of Nord-Ouest, for example) and provides technical assistance (e.g. training for planters).
The amount earmarked for these activities in  the MARNDR's 2001/2002 investment budget is
G30 million, i.e. almost 10 per cent of the total.
29. The average tariff rate is 10.9 per cent on edible vegetables, plants, roots and tubers;  10 per
cent on edible fruit, and peel of citrus fruit or melons;  7.3 per cent on cereals;  and 5.7 per cent on
products of the milling industry, malt, starches, inulin and wheat gluten.
(c) Livestock
30. In 1977, livestock-farming accounted for 11.6 per cent of overall agricultural output.
Although there are no recent statistics, its contribution to total agricultural production has probably
dropped sharply on account of poor performance over the past 10 years and the pace at which imports
of animal products have increased.  The surge in imports has led, inter alia , to the liberalization of
Haitian markets.  Between 1950 and 1987, there was a significant rise in livestock numbers, with theexception of equine animals, poultry and pigs.
8  After 1987, however, the livestock population
diminished considerably.  The species most concerned are sheep, goats, equine animals, cattle and
poultry.
31. Haiti practises both traditional and industrial livestock-farming.  Traditional stock-farming
represents 80 to 90 per cent of meat production and is practised by about 90 per cent of farmingfamilies.  All the species raised in Haiti are represented.  The animals are not usually given any
special care, especially in terms of feeding.  Most of the country's industrial stock-farming is on the
perimeter of large cities, particularly Port-au-Prince, with poultry (broilers and egg-laying hens) and
pigs being the main species raised.
                                                     
7 European Food Security Network (2001).
8 The declining number of pigs is due in part to the emergence, in the late 1970s, of African swine
fever.  Since 1982, when Haiti was declared free of the disease, the country has implemented three pig
restocking projects (interim programme, IDB project and rural pig restocking project).  These efforts, backed by
the pig breeding development programme launched in 1990, have led to increased performance in this area.WT/TPR/S/99 Trade Policy Review
Page 58
32. Production and marketing are not organized in any particular way as most farmers are
independent.  The Government contributes to the financing and promotion of vaccination campaigns
and provides technical assistance and subsidies to speed up pig restocking (piglets supplied at
subsidized prices).  The MARNDR's 2001/2002 inve stment budget for the sub-sector stands at
G10 million, i.e. about 3.3 per cent of the total.  Funds are also provided through the Agricultural
Credit Bureau (BCA) to a group of poultry breeders in the Port-au-Prince area, with a view toreviving the rearing of broiler chickens and egg-laying hens.
33. Imports of certain animal products are subject to sanitary control and quarantine
(Chapter III(2)(iv)).  The average tariff rate is zero on live animals;  9 per cent on meat and edible
offal;  and 2.2 per cent on milk and dairy products, birds' eggs, natural honey and other edible animal
products, not elsewhere specified or included.
(d) Fisheries
34. Haiti has a coastline of 1,535 km and a continental plateau of 5,000 km
2.  It has almost 20,000
hectares of natural and artificial ponds and lakes and nearly 800 hectares of temporary ponds and
lakes that fill up during the rainy season.
35. Offshore catches can reasonably be estimated at 6,000 tonnes a year, divided as follows:
5,000 tonnes of fish, 500 to 700 tonnes of crusta ceans and 100 tonnes of other marine products
(octopus, crab, etc.).  Some 25,000 to 30,000 full-time and occasional fishermen are probably
employed in this sub-sector.  The number of upstream (sale and manufacture of gear, etc.) and
downstream jobs (processing, marketing, packaging, etc.) is assessed at 70,000.  Overall, the marine
fisheries sector is said to provide around 100,000 jobs, mainly in coastal areas.
36. Haitian fishery capacity is relatively limited.  The country's fishing fleet numbers around 300
units.  Fishing activities are still essentially of the traditional type, using little modern technology.The volume of exports of certain marine products such as rock lobster has declined over the years
(Table IV.6).  The main problems are due to the absence of ocean fishing, the under-development of
fish-farming, the limited use of modern fishing technology and the increasing stringency of health
standards in importing countries.  According to the authorities, declining exports of rock lobster are
partly attributable to these standards.
Table IV.6
Exports of marine products (tonnes)
Product 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 1999-20002000-2001a
Rock lobster 1,383.73 11,787.88 1,923.76 2,162.42 1,233.32 276.00 156.28
Abalone .. 197.26 2,896.03 .. 53,000 71.00 87.13
Crabs 117.80 98.20 631.56 581.68 335.40 325.29 2,563.33
Shrimps 93.50 143.74 30.98 53.00 139.09 10.00 63.09
Octopus .. 6.37 5.80 .. 4.64 .. ..
Frozen fish .. .. .. .. 40.00 14.82 20.45
Reptiles .. .. .. .. .. 4.28 29.47
Scallops 1,721.64 1,608.17 1,529.24 1,236.50 1,309.91 1 915.64 1,809.80
C o r a l . .. .. .. . 2 0 . 0 0 1 6 . 7 7. .
Gravel .. .. .. .. .. 600.00 1,400.00
Rock .. .. .. .. .. .. 517.74
Ornamental fishb.. 9.67 3,641.43 7,430.78 40.00 10,643.33 6,784.40
.. Not available.
a Up to June 2001.b By unit.
Source: Information provided by the Haitian authorities, Fisheries Service, MARNDR.
37. The Haitian Government is seeking to develop fisheries inter alia  by promoting fishing and
aquaculture, distributing fishing gear and equipment for stocking in natural lakes and ponds, andHaiti WT/TPR/S/99
Page 59
ensuring the organization, development and rati onal exploitation of fisheries.  The MARDNR's
fisheries and fish-farming investment budget for 2001 /2002 is estimated to be G15 million, i.e. 5 per
cent of the total.  The MARDNR also has a budget for research in fisheries-related sectors.  In
addition, Haiti receives technical assistance for aquaculture training, financed by the Cuban
Government.
38. Trade (including exports) in certain species is subject to restrictions aimed at preserving
aquatic wildlife (Chapter III(3)(iii)).  Fishing activities are not subject to licensing or permits, and
catches are not regulated despite over-exploitation in coastal areas.  These activities are mostly
conducted on a small-scale, individual basis.
39. The average tariff rate is zero on fish and shellfish, molluscs and other aquatic invertebrates,
and 5 per cent on prepared fish products, with the exception of herring (10 per cent), anchovy (10 percent), and caviar and caviar substitutes (15 per cent).
(e) Forestry
40. Forestry activities are extremely limited.  Haiti suffers from large-scale deforestation as wood
is used for heating.
9  Haiti's forest cover is currently estimated to be between 2 and 3 per cent.  The
harmful effects of the degradation in the forest environment include soil erosion, sedimentation ofwater works and a qualitative and quantitative decline in water resources.
41. Haiti's forests are estimated to be between 70,000 and 80,000 hectares (out of a total land area
of 27,500 km
2).  Forestry resources comprise those in coastal areas, which total some 15,000 hectares
of mangrove forest;  the Forêt des Pins, in the Departments of Ouest and Sud-Est, which comprises
some 16,000 hectares of natural forest (mostly hardwood);  the Macaya Park in the Massif de la Hotte,
covering over 6,000 hectares of forest (hardwood inte rspersed with softwood);  and the Parc de la
Visite, which extends over 5,000 hectares (mainly softwood).
42. Genuine conservation efforts have in fact not extended beyond the Macaya and La Visite
national parks.  From 1983 (when these areas became national parks) to 1997, management of the
parks was ensured through technical assistance and funds from international cooperation agencies,
which made it possible to introduce certain species to help reforest these areas.  Thanks to a loan from
the World Bank, in 1997 the Government was able to take over the management of the Macaya andLa Visite national parks and the Forêt des Pins reserve.  Efforts are being made in the buffer zones
around these areas to increase agricultural output and offer farmers income alternatives in order to
reduce the pressure on protected areas.  Attempts are also being made to involve the surrounding
population in the management of protected areas, which cover close to 165,000 hectares.
10
43. The average tariff on forest products is zero and 6.3 per cent on live plants, cut flowers and
ornamental foliage (Tables AIV.I and AIII.1).
                                                     
9 Exploitation of forest products is very limited;  th ey are largely used for heating, because of the high
cost of other forms of energy (electricity in particular), or for construction purposes.
10 The term "protected areas" covers zones under pr otection, reserves, natural sites and national parks.WT/TPR/S/99 Trade Policy Review
Page 60
(3) MINING AND ENERGY
(i) Mining
44. Mining only marginally contributes to the Haitian economy.  The mining and quarrying share
of real GDP for the fiscal year 1999/2000 was 0.2 per cent.11  The sub-sector has nevertheless greatly
expanded in recent years, with value-added increasing from G6.02 million during the fiscal year
1993/1994 to G10.36 million in 1999/2000, i.e. an average annual increase of the order of 12 per cent.Haiti does not currently export any mineral products.  Mining employs about 4,000 people, mainly in
sand quarries.
45. Mining and quarrying played a much more important role up to the early 1980s.  The share of
these activities in real GDP plummeted from G70.49 million (1.3 per cent of real GDP) in 1981/1982
to G4.72 million in 1982/1983 (0.09 per cent of real GDP).  This was largely due to the fact thatbauxite mining ceased as a result of the depletion of major bauxite deposits.
12
46. Mineral exploration is fairly recent in terms of systematic prospection, which began in Haiti
in the early 1970s.  Systematic exploration was conducted up to 1990 with the cooperation of bilateral
and multilateral partners, in particular the United Nations Development Programme (UNDP), and it
revealed a fairly promising and varied mining pot ential (lignite, gold, pozzolana), for which pre-
feasibility studies were carried out.
47. Haiti's principal mining resources currently consist of non-metal ores, especially clay,
building stone, marble, calcium carbonate and lignite.  There are a few gold deposits in the provinces
of Nord and Nord-Est.13  There is export potential for these ores – in particular for marble and calcium
carbonate, which are vastly under-exploited.
48. Aggregate of crushed limestone from quarries and riverbeds is still being used throughout the
country for construction and public works.  This is currently the only significant mining activity inHaiti.  The exploitation of aggregate, with quarries located mainly around Port-au-Prince and
Gonaïve, has developed haphazardly, using rudimentary technology. Two-thirds of the Port-au-Prince
quarries operate with picks and shovels, and yields are fairly low.  The remaining third is semi-
mechanized, with yields of the order of 300 m
3 a day.
49. The official State agency in charge of mining and energy resources is the Bureau des mines et
de l'energie (BME) (Mines and Energy Bureau).  The BME is an autonomous scientific, technical and
administrative body established by a decree of 1 August 1986 and operating under the Ministry of
Public Works, Transport and Communications (MTPTC).  Mining operations are run mostly by the
private sector. The State collects taxes, however, and supervises operations from the technical,
environmental, social, economic and safety standpoints (by establishing mining and labour standards,visiting mining operations and analysing samples).  The BME is in charge of all these tasks and is
responsible for:
                                                     
11 Bank of the Republic of Haiti (2001).
12 Bank of the Republic of Haiti (2001).
13 There has not been much large-scale mining in Haiti.  The most significant projects were the
13 million tonnes of bauxite extracted between 1957 and 1982 by Reynolds Haitian Mines and the 1.5 milliontonnes of ore with approximately 2 per cent copper content mined between 1960 and 1971 by the Société
d'exploitation et de développement des ressources naturelles d'Haïti  (SEDREN).  In the construction field, Le
Ciment d'Haïti S.A.  quarried limestone and marl in the Fond-Mombin area from the early 1950s until the
quarries were closed down in 1994.Haiti WT/TPR/S/99
Page 61
- Initiating, supervising and stimulating efforts to develop knowledge of the country's
geological specificities;
- identifying, evaluating, developing, protecting and preserving energy and mineral
resources;
- supervising prospection and exploitation of energy and mineral resources;
- within the limits of the legislation in force and on behalf of the State, negotiating,
signing, amending, renewing or cancelling all permits, contracts, agreements and
conventions relating to prospection, assessment, exploitation, processing and
marketing of all energy products and mineral substances;
- adopting all measures required for the application of environmental protection
provisions in prospection and exploitation zones.
50. Mineral and energy resources are classified into mineral substances (generally metal
products), quarry resources (generally construction materials), and fossil energy products (coal and
hydrocarbons).  The current Mining Law dates back to 3 March 1976.  It regulated all the
aforementioned resources up to 2 March 1984, when a decree specifically governing quarry resources
was enacted.  This decree does not deal with tax is sues but lays down the following obligations for the
operating company:
- To apply to the BME for an operating permit, which is valid for a renewable period of
five years;
- to supply all technical, financial, land ownership and environmental information on the
quarrying project;
- to take all requisite steps to ensure personnel safety, hygiene and health;
- to protect the environment and rehabilitate quarrying sites as work progresses.
51. Under the terms of Article 1 of the Mining Law, natural mineral sites, liquid or gaseous
hydrocarbon deposits, mineral and thermo-min eral sources, geothermal energy and other
concentrations of natural energy, and natural resources in general belong to the Haitian Nation.
Natural resources are separate from land ownership and constitute a specific sphere managed by the
State pursuant to the rules of the aforementioned Law and its implementing regulations.
52. Every operation in the mining and energy sector is subject to a permit corresponding to the
type of activity involved.  Three types of permit apply to metal resources, i.e. a prospection permit, an
exploration permit and an operating permit.  An operating permit is required for non-metal resources.
Prospection permits may be granted to Haitian or foreign firms or companies.  Exploration permits
and operating permits/concessions can only be granted to firms or companies established anddomiciled on the territory of the Republic of Haiti.
53. A prospection permit (valid for a period of two years) is subject to payment of an annual fee
of G10 per square kilometre covered by the permit.   The fee is G50 for an exploration permit (valid
for a period of two years) and G250 for an opera ting permit.  All operating permits automatically
become mining concessions on the date on which mining operations reach exportable productionWT/TPR/S/99 Trade Policy Review
Page 62
capacity.14 The duration of a mining concession is 25 years and may be renewed for 10-year periods.
The annual fee is G250 per square kilometre covered by the concession.
54. Under the Mining Law, exploration permits are subject to specific rules established under a
mining agreement between the State and the applicant.  The agreement may cover the following:
- Obligations relating to capitalization a nd control of ownership of the exploration
company;
- undertaking by the applicant to build the appropriate infrastructure;
- undertaking by the applicant to protect the environment and, if need be, to ensure the
rehabilitation and economic promotion of the zone in question;
- undertaking by the applicant to train and employ Haitian personnel;
- undertaking by the applicant to use, at an equivalent quality and price, supplies and
equipment produced in Haiti or normally supplied on the Haitian market;
- undertaking by the applicant to contribute, during the production stage, to the
construction inter alia  of processing, smelting or refining units, packaging plants or
power stations;  or to supplying such facilities, where they already exist or are to be
set up in Haiti;
- financing, tax, customs and other facilities;
- arbitration clauses should a dispute over interpretation of the agreement arise.
55. Quarrying permits are issued by the National In stitute of Mineral Resources.  Permit holders
are required to pay an annual fee of G100 per hectare.
56. Two mining agreements have been negotiated between the Haitian State and the Société
minière Citadelle S.A., with a view to mining the gold and silver deposits in Grand Bois.  Another
agreement has been signed with the Societé Ste Geneviève-Haïti S.A. for the re-evaluation andexploitation of the gold and copper deposits in the province of Nord-Est.
57. Fiscal and customs concessions for investment in this sector are not regulated by the
Investment Code.  When a company signs an agreement with the State, clauses are usually
incorporated to ensure that the company benefits  from a temporary entry regime with the suspension
of all import and export duties.  A system of rebates on domestic taxes may also be included.  Theconcessions vary from one agreement to another and depend, inter alia , on the type of activity or
products covered by the agreement and on the investor's negotiating power.
58. In 1995, the BME submitted a new draft law, one of whose chapters deals specifically with
environmental conservation.  Another draft law, drawn up by the BME in 1992, on taxation of
quarries and transporters of quarrying products was put to the vote in Parliament in 1996.  This draftlaw, which has not yet come into force, provides for:
                                                     
14 A mining concession is an indivisible right, of limited duration, distinct from land ownership and not
subject to mortgage.  It may be sold or transferred, but on no account does it confer a right of ownership over
the resources for which it was granted.Haiti WT/TPR/S/99
Page 63
- An annual fee of G2,000 per hectare or fraction of hectare covered by an operating
permit;
- a tax of 10 per cent on the price per cubic metre of construction material and of 15 per
cent on the price per cubic metre of ornamental stone (payable by the operating
company at the exploitation site);
- a tax, payable by transporters of quarrying products, of 10 per cent of the market
value of each consignment.
59. In the mining and energy sector, a number of programmes, projects and studies on
supervision of mining and quarrying operations and development of mineral and energy resources
have been carried out since 1986.  These programmes were set up by the BME, mainly with a view to
the rational operation of mines and quarries and the use of energy sources.
60. The average tariff protection for mining and quarrying amounts to 2.1 per cent (Table AIV.1).
(ii) Energy
61. The main sources of energy used in Haiti are firewood, which accounts for more than 70 per
cent of energy consumed, petroleum products (about 20 per cent of energy consumed), and electricity
(some 6 per cent of energy consumed), about 85 per cent of which is produced by thermal generatorsand the rest by hydraulic energy.  All petroleum products are imported.  They are distributed by
private companies (Texaco, Esso, Shell and Elf).
62. The Haitian population's access to electricity varies widely:  Electricity is available to 45 per
cent of the capital's inhabitants and to only 3 per cent of the rest of the population.  It is supplied
(under a monopoly) by a State-owned enterprise, L'Electricité d'Haïti (EDH) (Haiti Electricity).
Haiti's overall generating capacity is estimated at 430 megawatts (MW), including 300 MW for the
Port-au-Prince metropolitan area.
15  The production and distribution of electricity poses problems due
to the deterioration of generating and transmission facilities, lack of maintenance and the silting up of
the Peligre dam.  Potential hydro-electric generation capacity is estimated at 173 MW – including the
installed capacity of 62 MW.  Private generating capacity is estimated at 110 MW.
63. Electricity prices are set by the EDH and vary depending on which of the four categories
(households, businesses, industries using low-voltage electricity and industries using medium-voltageelectricity) the end-consumer belongs to.  For the first two categories, there is a rising tariff structure.
The minimum tariff for households is G43.8 for monthly consumption not exceeding
30 kilowatts/hour (kWh).  Above this threshold, the tariff per kWh is G2.16 for the first 30 kWh rising
to G2.56 for the consumption bracket between 30 and 200 kWh, and to G2.85 for consumption of
200 kWh or more.  For businesses, the tariff per kWh is G3.18 for the first 30 kWh, G3.78 for thebracket between 30 and 200 kWh, and G4.22 for consumption exceeding 200 kWh.  For industries
using low-voltage electricity, the tariff is G3.7 3/kWh and G32/kWh for demand power.  For industries
using medium-voltage electricity, the tariff is G 2.15/kWh during off-peak hours (6 p.m. to 9 a.m.),
G4.66/kWh during peak hours (9 a.m. to 6 p.m.), and G32/kWh for demand power.  The EDH collects
only about 50 per cent of the value of the electricity it generates, the rest being fraudulent electricityconsumption.  Such losses raise electricity bills for registered consumers and exacerbate the
difficulties facing the EDH.
                                                     
15 Mines and Energy Bureau (1999).WT/TPR/S/99 Trade Policy Review
Page 64
64. The price of petroleum products is controlled through taxes collected by the State.  The
financial costs are added to the c.i.f. price in order to obtain the "customs value".  Inspection costs,
customs duties, harbour charges and fixed excise duties are added to the customs value to obtain the
"customs price".  This figure is then increase d by the margins provided for the oil companies,
distributors, and transport to the provinces, the latter being used for the price equalization scheme.
Variable excise duties are levied on that basis in order to arrive at the price at the pump fixed by theauthorities.
65. Measures to encourage investment in energy are essentially tax-related, in the form of
reductions on taxable amounts and tax exemption in specific cases.  Thus, duty-free treatment is
granted for imports of capital goods and raw materials needed for exploitation and production during
the set-up phase, with the exception of imports of petroleum products.  As is the case for mining andquarrying, concessions for investment in the energy sub-sector are not governed by the Investment
Code, but are negotiated between the State and the companies concerned.
66. Action taken by the Government in the ener gy sub-sector focuses mainly on local energy
development (lignite and thermal springs), the rational use of all energy sources through an energy
efficiency programme, the substitution of ligneous resources, the publication of energy statistics, andthe establishment of a national energy policy.  The possibility of reducing firewood consumption and
planning energy consumption is under discussion.
67. The following steps have been taken so far:
- Technical assistance in preparing the Caracas Agreement;
16
- technical support for the process of eliminat ing lead from gasoline, pursuant to the
commitments made at the Miami Summit in 1994;
- negotiation of two petroleum explorati on contracts with GENOIL and DC ENERGY;
- negotiation and granting of a prospection permit to AQUARIAN ENTERPRISE, with
a view to exploiting mineral waters from hot springs for tourism and thermal
purposes;
- national inventory of greenhouse gases, pursuant to the United Nations Framework
Convention on Climate Change;
- establishment of a national energy system, in the framework of cooperation with the
Latin American Energy Organization (OLADE);17
- preparation of a draft Hydrocarbons Code.
68. Haiti is involved in a number of multilateral cooperation activities in the energy field.  The
organizations concerned include:
- The World Bank, with which a standard-setting project for the energy sub-sector is
pending implementation;  and
                                                     
16 The Caracas Agreement on Energy Cooperation between Venezuela and Haiti was signed by the two
countries on 12 December 2001.
17 OLADE is the forum where the 26 Member countries  define policy guidelines in the energy field.Haiti WT/TPR/S/99
Page 65
- OLADE, with which Haiti is in the process of establishing an Energy Economic
Information System (SIEE)18, and a National Energy Information System (SIEN),
which has been implemented with support from OLADE in each of the OLADE
Member countries.
69. A framework for cooperation in the implementation of joint projects is currently being
established with the Dominican Republic.  For the time being, this mainly involves a hydroelectricplant on the border between the Republic of Haiti and the Dominican Republic.
70. The average tariff is zero on electricity and 1.4 per cent on mineral fuels, mineral oils and
products of their distillation, bituminous substances and mineral waxes.  The highest rate in the tariff
is the 57.8 per cent duty on gasoline.
(4) 
MANUFACTURING
71. Manufacturing contributes about 7 per cent to real GDP.  Although it has remained relatively
stable over the past five years, the importance of this sector has seriously diminished since the
embargo that followed the suspension of the demo cratic regime in the early 1990s.  Throughout the
1980s, manufacturing's contribution to real GDP wa s of the order of 15 per cent, but suddenly
plummeted to 7.7 per cent in 1992/1993.  Between 1995 and 2000, the growth rate remained fairlystable, increasing by an average of 2 per cent per year.  In 1999, the sector was employing more than
33,000 people.
19
72. Manufacturing accounts for most of Haiti's exports.  Between 1995 and 2000, exports of
manufactured articles showed an average annual increase of around 30 per cent.  Manufactures
represented about 76 per cent of the total value of exports in 2000.20  Approximately 90 per cent of
these exports are shipped to the United States.
73. The equity of around three quarters of manufacturing enterprises is under G500,000 and about
11 per cent of them employ over 300 workers.  This reflects the predominance of small- and medium-
sized enterprises in Haitian industry.  Manufacturing enterprises are usually new and only 8 per cent
have been operating for more than 35 years.  One of the reasons is that some companies are prepared
to bear the cost of closing down temporarily and then re-opening under another name in order to be
eligible for the privileges provided under the Investment Code (Chapter III(4)(i)).
74. Difficulties in gaining access to credit, competition from imports into the local market, a
political climate hardly conducive to investment, frequent electricity cuts and high production costs
are further factors that explain both the high turnov er of manufacturing enterprises and the closure of
firms producing consumer goods such as sugar and flour.  Moreover, few of the enterprises that
closed down during the embargo have re-opened, either because their equipment has becomeinoperative or obsolescent or because their clients (in the case of sub-contracting firms) have turned to
other suppliers.
75. Almost two thirds of manufacturing enterprises produce consumer goods that require neither
high technology nor extensive processing.  The percentage of firms producing capital goods and
                                                     
18 The SIEE is a database that provides information on the 26 OLADE Member countries on a regular
(monthly, twice-yearly and yearly) basis.
19 Haitian Institute of Statistics and Information Technology (2000b).  This survey covers firms
established in the Port-au-Prince metropolitan area, where most manufacturing enterprises are located.
20 Bank of the Republic of Haiti (2001).WT/TPR/S/99 Trade Policy Review
Page 66
intermediate goods is fairly low (respectively 18 and 16 per cent of all production units in the Port-au-
Prince metropolitan area).
76. The principal manufacturing sub-sectors are the food, beverage and tobacco industries;  the
textiles, clothing and leather industries;  industries producing non-metallic mineral products and metal
products;  and the chemical industries.  They account for close to 95 per cent of manufacturing value-
added.
77. For the fiscal year 1999/2000, the food, beverage and tobacco sub-sector represented 45 per
cent of the real value-added of manufacturing industries.21  This sub-sector is a major job provider and
in 1999 it employed over 4,700 people, i.e. some 14 per cent of manufacturing jobs.  It also attracts a
major share of investment in the manufacturing sector (more than 32 per cent in 1999).  It essentially
comprises firms producing for the local market.
78. The textiles, clothing and leather industries contributed close to 20 per cent of real
manufacturing value-added for the fiscal year 1999/2000.  In 1999, more than 19,000 people,
i.e. nearly 60 per cent of manufacturing jobs, were employed in this sub-sector.  Its relative
importance is attributable mainly to sub-contracting, which represents over 75 per cent of total
turnover in the textiles and clothing sub-sector.  Investment in this sub-sector is nevertheless limitedand only represents 7.7 per cent of total investment in manufacturing.  The sub-sector is, however, the
largest in terms of exports.  In 2000, its exports to the United States totalled almost US$5 million,
i.e. 55 per cent of all Haiti's exports of manufactures to the United States.  As mentioned above, the
sub-sector is marked by extensive sub-contracting.  Fabrics, cut to size or in rolls for cutting from
patterns, are imported and then assembled and exported.  Almost all of this trade is with the United
States.
79. The non-metallic mineral products and metal products sub-sector accounted for 17 per cent of
manufacturing real value-added in the fiscal year  1999/2000 and employed over 2,000 people in 1999.
There has been substantial investment in this sub-sector, which received close to 27 per cent of all
manufacturing investment in 1999.  Activities are mainly directed at the local market and have
benefited from the revival in the construction sector.  Plastics processing has also diversified into the
production of packaging and containers of all sizes for the local market.
80. In 1999/2000, the chemicals sub-sector accounte d for 11 per cent of manufacturing real
value-added.  It is engaged in a wide range of activities, including the production of pharmaceuticals,
fertilizers, pesticides, paints and polishing or scouring products.  In 1999, it employed more than
1,100 people and received almost 14 per cent of investment in manufacturing.  Output is entirely for
the local market.
81. Handicrafts and the creation of works of art (ironwork, painting on furniture or fabrics) are
also major manufacturing activities in Haiti.  They are mostly in the informal sector and are carried
out by women or in addition to a regular job, and are therefore difficult to quantify.  Nevertheless,
they remain an important aspect of Haiti's economy, as evidenced by the large number of exports of
collector's pieces, works of art and antiques to the United States.  These are valued at someUS$2 million, i.e. over 26 per cent of all Haitian manufacturing exports to the United States.
Handicrafts and furniture-making are also sub-contracted.
                                                     
21 Bank of the Republic of Haiti (2001).  This is the share of the sub-sector in value-added (constant
price in 1975/1976 gourdes) of the manufacturing sector.Haiti WT/TPR/S/99
Page 67
82. The Haitian authorities recognize that the country still lacks a well-structured industrial policy
to promote manufacturing enterprises and national market strategies.  Nor are there any real policies
aimed at increasing domestic value-added of manufacturing enterprises.  This can be seen in the
degressivity of tariffs in certain industries (Chapter III(2)(ii)).  Customs and fiscal concessions partly
offset these negative aspects (Chapter III(4)(i)).
83. Measures are being taken, largely under the auspices of the MCI, to enhance the technical
skills of the Haitian workforce and to facilitate th e transfer of technology (these correspond to the
incentives provided under the Investment Code, Chapter III(4)(i)).  A plan to reform vocational and
technical training and cooperation between the public and private sectors has led to the creation of a
technical training centre (Haiti Tech) and a programme for the promotion of handicrafts (a sector in
which Haiti has significant comparative advantages);  both of these are now in operation.  Moreover,greater efforts to obtain access to markets in certain developed countries under the various systems of
preferential treatment for which Haiti is eligible (Chapter II(5)(v)) should improve manufacturing
performance.
84. The simple arithmetic average of tariff rates on manufacturing products is 2.8 per cent
(Table AIV.1).  The most protected industries (with an average rate ranging from 6 to 12 per cent) arethose manufacturing tobacco, beverages, footwear, clothing, furniture and non-metallic fixtures, and
non-metallic mineral products (Chart IV.1).  The ta riff generally shows a downward trend from the
first stage of processing to the semi-finished product, and an upward trend from the second stage to
the finished product (Chapter III(2)(ii)).  Such a tari ff structure in itself (without corrective measures)
is not usually conducive to domestic production of certain semi-finished products.
(5) 
SERVICES
(i) Overview
85. Services contribute around 63 per cent of real GDP.  This is therefore the most important
sector of the Haitian economy.  Figures for previous years show a slight downturn due to sluggishness
in non-traded services, where growth has only been marginal.   These services, provided by the State,
non-governmental organizations and non-profit-ma king organizations, account for approximately
17 per cent of real GDP and are therefore the largest services sub-sector.WT/TPR/S/99 Trade Policy Review
Page 68
036912Chart IV.1
Average customs duties by ISIC classification, 2002
Percentage
Source:   Estimates b y the WTO Secretariat, based on data provided b y the Haitian authorities. ISIC
111
121122130
210
220
230290
311-312
313
314321322323
324
331332Major groups
Agricultural and livestock production
Forestry LoggingFishing
Coal mining
Crude petroleum and natural gas production
Metal ore mining Other mining 
Food products
Beverages
TobaccoTextiles Wearing apparel Leather products 
Footwear
Wood products Furniture, except metal ISIC
341
342
351352353354355
356
361362369371
372
381382383384
385
390Major groups
Paper products
Printing and publishing
Industrial chemicals Other chemical productsPetroleum refineries Petroleum and coal products Rubber products 
Plastic products 
Pottery, china and earthenware Glass and products Other non-metallic mineral products Iron and steel 
Non-ferrous metal 
Metal products Non-electrical machinery, including computers Electrical machinery Transport equipment 
Professional and scientific equipment 
Other manufacturin
g industries Average rate
(2.9%)
86. Other sub-sectors such as transport and communications, and trade, restaurants and hotels
have grown by 5.9 and 2 per cent, respectively.  Gr owth in transport and communications is largely
due to investments by mobile telephone companies in particular.  Government efforts to upgradetourism facilities have led to increased activity in trade, restaurants and hotels.
22  During the fiscal
year 1997/1998, the services sector employed some 16,562 people.23
                                                     
22 Bank of the Republic of Haiti (2001).
23 Haitian Institute of Statistics and Information Technology (1999).Haiti WT/TPR/S/99
Page 69
87. Pursuant to the General Agreement on Trade in Services (GATS), Haiti has bound, without
limitations on market access or national treatment, measures affecting all modes of supply of
educational services in adult training centres in rural areas and of banking and other financial services
(with the exception of insurance).  Measures affecting all modes of supply (with the exception of the
presence of natural persons) of construction and related engineering services and hotel and restaurant
services have also been bound, without limitations on market access or national treatment.  In the caseof veterinary services, only measures affecting consumption abroad remain unbound;  all other
measures have been bound without limitations.  Moreover, measures affecting cross-border supply of
reinsurance and retrocession services have been bound without limitations, and those affecting
consumption abroad and commercial presence for the provision of such services have been bound
without limitations on national treatment.
24  Measures affecting the supply of other types of services
remain unbound.
(ii) Tourism
88. The share of tourism and commercial services in real GDP is estimated at 13 per cent.  The
contribution of the hotel and restaurant industry remains moderate, however, and has shown a
downward trend in recent years, falling from 0.18 per cent in 1995 to 0.16 per cent in 2000.  Hotelcapacity is approximately 2,800 rooms.  After experiencing strong growth up to the end of the 1980s,
tourism in Haiti has now stabilized, with a steady average of about 400,000 arrivals – mainly
excursionists – a year.  Business people and stay-over visitors, who account for nearly 25 per cent of
total tourist arrivals, are in fact mainly Haitians living abroad (Table IV.7).
Table IV.7
Breakdown of Tourism 1997-1999
Number of tourists 1997 1998 1999
Cruise-ship passengers 238,469 246,221 243,335
Other excursionistsa26,000 26,000 26,000
Total excursionists 264,469 272,221 269,325
Holidays 48,067 45,432 44,357
Business 27,045 27,008 23,483
Other stay-over visitors 73,623 74,397 75,522
Total stay-overs 148,735 146,837 143,362
Total 413,204 419,058 412,687
a  Estimated data for excursionists from the Dominican Republic.
Source:  Data supplied by the Haitian authorities, Ministry of Tourism.
89. Haiti's key tourist attractions are its natural sites (beaches and uninhabited islands), its
historical heritage and its cultural specificities (art, handicrafts, gastronomy, religious tourism and
festivals).  Tourism offers unquestionable potential for economic development, but it faces numerous
problems.  Political instability and security problems are two major reasons why fewer tourists visit
the country.  Inadequate infrastructure, in particular the limited number of hotel rooms, thedeterioration of the road network, the dilapidated airport facilities, the state of telephone services and
their high cost are additional factors limiting medium-term growth prospects for tourism.  The tourist
enclaves for Caribbean cruise ship passengers are the most likely focus for immediate development.
90. The management and exploitation of tourism investments are governed by the Law of
28 March 1975 regulating the management of tourist establishments.  Under this Law, any natural orlegal person wishing to open and run a tourist establishment is required to satisfy the following terms
and conditions:  the project (plans and cost estimates, market surveys, financial documents) must be
submitted to, and authorization requested from, the Ministry of Tourism (MT), which forwards
                                                     
24 WTO document GATS/SC/111, Haiti:  Schedule of Specific Commitments, 30 August 1995.WT/TPR/S/99 Trade Policy Review
Page 70
approved applications, together with a reasoned report, to the Ministry of the Economy and Finance
(MEF).  Any developer wishing to benefit from certain fiscal and customs concessions must follow
these procedures (see below).  The developer is then  authorized to begin construction work within the
timeframe and according to the plans agreed, under the supervision of the Department of Tourism.
The technical services of the MT and other relevant bodies ensure compliance with the regulations
and plans and issue a certificate of conformity.  The investor then applies to the MT for an operatinglicence, which must be obtained before the establishment opens.
91. Tourism projects are not governed by the Investment Code but by specific laws.  In
accordance with the provisions in force, any investment in tourism would be eligible inter alia  for the
following benefits, granted directly by the MEF on the basis of a reasoned opinion from the MT:
- Concession or rental of State land, and assistance from officials of the Department of
Tourism;
25
- exemption from all import duties and taxes on construction materials, furnishings,
kitchen, sanitary and electrical equipment, appliances, items and finishings used in
hotel construction, renovation or expansion;
- five-year tax exemption as of the date of entry into operation, in the case of
construction;  and
- two-year tax exemption in the case of renovation leading to the creation of
30 permanent full-time jobs.
92. The State may also grant privileges in the form of special concessions to any investor wishing
to build or renovate a hotel.  All tour operators must be Haitian nationals, but this provision is not
applied in practice.  The State has a de jure  monopoly of tourist transport but has de facto relinquished
its rights to local or foreign private operators.  The State collects a tax on "enclaved" tourismamounting to 1 per cent of harbour charges per person.  Tariffs are set freely and are not subject to
Government intervention or control.  Hotels are not subject to Government control, and there is
currently no system for the official classification of tourist establishments in Haiti.
93. Between 1995 and 1996, the Government and UNDP took stock of the tourism infrastructure
and drew up a plan for its development.  Tourism is now one of the key components of the country'seconomic policy.  The activities planned are set forth in a master plan drawn up by the former
Secretariat of State for Tourism (SET).  They are essentially geared towards promoting Haitian
tourism products, enhancing existing tourist sites and infrastructure, increasing capacity and
developing as yet unexploited potential.  An information document, explaining the conditions under
which a project is eligible for Government incentives, is available to domestic and foreign investors.A chapter in the new Investment Code is devoted to tourism and contains a full set of tourism
promotion measures.  The SET became the Ministry of Tourism in 2001.
94. In the tourism sub-sector, Haiti has made GATS concessions for hotels and restaurants
(Section (i) below).
26
                                                     
25 The public domain is inalienable.  It may not be sold but may be the subject of a concession.  The
Department provides technical assistance to tourism investors and assists them in their contacts with
government services.
26 WTO document GATS/SC/111, Haiti:  Schedule of Specific Commitments, 30 August 1995.Haiti WT/TPR/S/99
Page 71
(iii) Financial services
95. The scale of financial services in Haiti remains modest and currently accounts for no more
than 0.24 per cent of real GDP.27  These services nevertheless achieved an average growth rate of
around 4 per cent per year between 1995 and 2000.  More than 2,500 people are employed in this sub-
sector.
96. In Haiti, financial services mainly involve monetary intermediation by banking institutions
and insurance.  The commercial banks account for the largest share of activities in this sub-sector.
The assets of banking institutions have grown impressively over the past few years, from about
G13 billion in 1996 to G30 billion in 2000.  Howe ver, the 42.7 per cent rise between 1999 and 2000 is
largely due to the strong depreciation of the gourde vis-à-vis the US dollar.
97. Concentration of the Haitian banking market tends to increase the percentage of assets held
by the three major banking institutions (all privately owned), which rose from 51.5 per cent in 1999 to
55 per cent in 2000.  As much as 75 per cent of total assets is in the hands of the private banks, while
the share held by State institutions has been declining over the course of several fiscal years.  In 2000,
foreign currency accounted for 41.7 per cent of the G30 billion28 held by the banks.
98. In the financial services sub-sector, Haiti's GATS concessions cover banking and other
services (with the exception of insurance);  concessions made for the supply of reinsurance services
remain limited (Section (i) above).
(a) Banking
99. Haiti currently has 13 banks, including two State commercial banks ( Banque nationale de
crédit , Banque populaire haïtienne ), seven privately owned Haitian banks, two branches of foreign
commercial banks and two privately owned Ha itian savings banks and building societies.
Competition among banks tends, on the one hand, to lead to consolidation and mergers29 and, on the
other, to a geographical spreading of banking activity, inter alia  through the opening of branches in
the provinces.  Nevertheless, in 1999 69 per cent of branches and agencies were located in Port-au-
Prince and the surrounding area.
100. The operation of banks is regulated by a decree of 14 November 1980.  Under this decree, any
natural or legal person wishing to practise banking may do so regardless of nationality.  Applicationfor authorization to operate a banking institution must be submitted to the MEF, which reviews
applications jointly with the Bank of the Republic  of Haiti (BRH) and the MCI.  After a bank has
been authorized, its activities are subject to Haitian legislation, which stipulates, inter alia , that
mergers and/or takeovers are subject to BRH authorization.  Likewise, all banks operating in Haiti
must apply for authorization from the BRH to open an office, agency or branch outside theirheadquarters.
101. The minimum capital required to engage in banking operations is G5 million for commercial
banks, G7.5 million for merchant banks, G2.5 million for savings banks and G5 million for foreign
banks.  Banks are required to provide the BRH wi th monthly statements and half-yearly profit and
                                                     
27 Bank of the Republic of Haiti (2001).
28 Bank of the Republic of Haiti (2001).
29 The chairmen of two private Haitian banks began negotiations last year with a view to a possible
merger.WT/TPR/S/99 Trade Policy Review
Page 72
loss accounts for each accounting year.30  If it deems necessary, the BRH may conduct inspections to
determine whether banking institutions are performing properly.  There are principles governing
prudential regulations, the safeguard of depositors' funds and the diversification of debts outstanding.
Haiti applies the Basel Principles.
102. Foreign exchange regulations require banking institutions to maintain a maximum ratio of
40 per cent between the cumulation of long and short positions (in all currencies) and their total equitycapital.
31  Moreover, groups, members of a given group and related persons may not hold more than
5 per cent of the capital of one or more établissements bancaires secondaires  (or secondary banking
establishments).  Natural or legal persons belonging to such groups may not serve as officers or
directors of more than one secondary banking establishment at a time.32  Lastly, Circular No. 83-4
requires every banking institution to maintain a maximum ratio of 20 per cent between all credit risksincurred in connection with those of its operations that present a risk unrelated to the banking
institution and its equity capital, and a maximum ratio of 10 per cent between all credit risks incurred
in connection with those of its operations that present a risk related to the banking institution and its
equity capital.
103. The Law of 17 August 1979 establishing the BRH entrusts it with the task of supervising
banking financial institutions.  The BRH discharges this responsibility by conducting inspections and
laying down prudential regulations.  Up to the first quarter of the fiscal year 1998/1999, the Bank's
Directorate of Supervision used the CAMEL method (Capital, Assets, Management, Earnings and
Liquidity) for its general inspections.  The method was subsequently developed to strengthen the
management component by analysing factors such as organization and control.
104. Foreign banks are subject to the same regulations as national banks.  In particular, licensing
conditions for foreign banks are the same as those applying to local banks.  Employment of foreignpersonnel is regulated by the same rules as those governing Haitian staff.  Loans to non-residents are
prohibited, but access to credit and the opening of branches abroad is authorized.  Interest rates are
freely determined by the market.
(b) Non-banking financial services
105. In Haiti, credit, insurance and pension funds are the main non-banking financial services.  The
State insurance regime includes the Office d'assurance accidents du travail et de maternité
(OFATMA) (Workers' Compensation and Maternity Insurance Office), the Office national
d'assurance vieillesse (ONA) (National Old-Age Insurance Office) and the Office d'assurance
véhicules contre-tiers (OAVCT) (Motor Vehicle Liability Insurance Office).  The private system
includes several joint stock companies under Haitian law and local branches of foreign insurancecompanies.  In 1998, there were 12 insurance offices or companies operating in Haiti.
106. Total pension fund assets stood at G506 million in 2001.  Pension and savings-related
retirement schemes for employees of non-banking Government institutions accounted for some
G450 million.  The other pension schemes include the pension funds for Government employees;  the
pension funds and retirement plans for bank employ ees;  and the pension funds and retirement plans
for employees of petroleum companies and private and industrial enterprises.
                                                     
30 Article 57 of the decree.
31 Circular of 31 July 1997.
32 Circular No. 82-2 of 15 December 1998.Haiti WT/TPR/S/99
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107. Remittance and currency exchange offices have developed in recent years.  Remittance
offices have emerged as a response to the need of Haitian nationals working abroad to transfer funds
to Haiti on a regular basis for investment purposes or to support relatives living in the country.
Exchange operations are partly conducted on the informal market despite the existence of official
exchange facilities.
108. Lastly, among the institutions providing non-banking services, mention should be made of the
Fonds de développement industriel (FDI) (Industrial Development Fund), the Société financière
haïtienne de développement (SOFIHDES) (Haitian Financial Development Company) and the
Fondation haïtienne de développement  (FHD) (Haitian Development Foundation), which respectively
specialize in guaranteeing loans by financial intermediaries, short-, medium- and long-term financing,
and credit for small- and medium-sized enterprises.  The SOFIHDES and the FHD are privatecompanies partly financed by the US Agency for International Development (USAID) and the
European Development Fund (EDF).  The FDI is answerable to the BRH and is financed by a loan
from the World Bank.
109. Haiti has no legislation governing activities in the non-banking financial sub-sector nor any
special authority in charge of monitoring or regula ting such activities, including insurance, leasing
and venture-capital funds.  Insurance premiums are set freely by the market and are not subject to
State intervention or control.  Every insurance company is free to develop activities in different fields
and is authorized to offer several types of insurance cover (life insurance and motor vehicle/accident
insurance, for example).
(iv) Telecommunications and postal services
110. In 1998, Haiti had around 64,000 main telephone lines, corresponding to a telephone density
of approximately 8.4.
33  About 80 per cent of the lines are located in Port-au-Prince and the
surrounding area.  The number of subscribers (fixed-line and mobile connections) is about 200,000
and demand around 300,000.  The average waiting period between the request for a subscription and
the opening of a line is about two years.  The number of mobile telephone users is estimated at over
200,000.  In 1999, Haiti had six Internet providers.
111. A decree-law of 12 October 1997 regulates telecommunications services in Haiti.  It is
supplemented by the decree-law of 10 June 1987 redefining the responsibilities of
telecommunications bodies and establishing a tariff structure for such services.  Both decree-laws give
the State a monopoly of telecommunications services, which has been delegated to the Conseil
national des telecommunications  (CONATEL) (National Telecommunications Council), a regulatory
body under the authority of the Ministry of Public Works, Transport and Communications (MTPTC).CONATEL is responsible for regulating and supervising telecommunications activities.  Its
competence includes enforcing the rules applicable  to the sub-sector, examining draft technical
standards for manufacturing and/or importing elec trical and radioelectric equipment, analysing
tariffication and taxation proposals and proposals relating to all other telecommunications costs, and
helping to develop the national telecommunications policy.
112. Télécommunications d'Haïti S.A.  (Téléco) (Haiti Telecommunications) is the leading
telecommunications company and is 97 per cent St ate owned.  The remaining 3 per cent is in the
hands of a private Canadian company ( Compagnie des télégraphes  (Telegraph Company)).  In 1999,
Téléco's earnings stood at G1,383 million.  Despite a slight dip during the fiscal year 1998, they have
                                                     
33 Number of main lines per 1,000 inhabitants. World Bank (2001).WT/TPR/S/99 Trade Policy Review
Page 74
increased significantly over the past few years, with average annual growth of the order of 20 per cent
between 1995 and 1999.34
113. Téléco provides fixed and mobile telephone, telex and Internet services.  Fixed-line telephone
services were a de facto Téléco monopoly until the creation of Haïtel, a private operator funded by
Haitian and foreign capital.  The fixed telephone network remains the property of the State, however,
and is managed by Téléco.  Mobile telephone services are provided by three private operators.
114. CONATEL sets the fixed and mobile telephone char ges.  Local calls are charged at a monthly
flat rate.  For long-distance calls, the tariff is G1/minute for fixed telephone communications and
G3.3/minute for mobile communications.  International calls to the United States cost G15/minute.
Interconnection tariffs are negotiated among operators and subject to approval by CONATEL.  Téléco
provides global services, which are not subsidized  by the State.  Under a decree-law of 26 June 1987,
which defines, inter alia , the rates applicable to the various categories of communications services,
business telephony is subject to an annual tax of G750 for the first frequency, G1,000 for the second,
G1,250 for the third, and G1,500 for any additional frequencies.
115. Haiti is a Member of the International Telecommunication Union (ITU) and of the Inter-
American Telecommunications Commission (CITEL) .  Numerous studies of telecommunications
services in Haiti have been carried out in coop eration with the ITU in order to update the current
regulatory framework, which dates back to 1987.  In September 2000, the MTPTC prepared a draft
law on telecommunications, which is to be submitted to Parliament for adoption.
116. Postal services have always been separate from telecommunications.  They are mostly
handled by the Office des postes d'Haïti  (OPH) (Haitian Post Office), an autonomous body established
by a decree of 10 August 1987 and operating under the MCI.  The OPH has a de jure  monopoly of
mail transport in Haiti and is responsible for regulating mail-related matters.  It deals with the dispatchof ordinary mail, parcels and international express mail.  In practice, private enterprises provide the
same services, with the exception of regulatory aspects.  Each operator sets its own tariffs, and those
of the OPH are established by its governing body.  The OPH is subsidized by the State.  The MCI
grants licences for postal services.
117. Haiti is a founding Member of the Universal Po stal Union (UPU), the Postal Union of the
Americas, Spain and Portugal (PUASP) and the Caribbean Postal Union (CPU).
118. Haiti has not bound any measures affecting the supply of telecommunications or postal
services.
(v) Transport
119. Haiti has a road, air and maritime transport network.  The road network comprises some
4,160 kilometres of roads, 25 per cent of which are paved.
35  Haiti has 13 airports, including three
with paved runways and two intern ational airports (Port-au-Prince and Cap Haitien).  The maritime
transport infrastructure consists of two merchant ports (Port-au-Prince and Cap Haitien).  The country
has no merchant marine fleet.  Haiti has not bound any measure affecting the supply of transport
services.
                                                     
34 International Monetary Fund (2001c).
35 Central Intelligence Agency (2001). Details available at:http://www.cia.gov/
cia/publications/factbook/index.html.Haiti WT/TPR/S/99
Page 75
120. The Autorité portuaire nationale (APN) (National Po rt Authority) is a parastatal body
responsible for the management, planning and development of port activities and services in Port-au-
Prince and Cap Haitien.  Harbour charges in Po rt-au-Prince are among the highest in the region.
121. The privatization of port activities forms part of the programme for the modernization of
State-owned enterprises, but so far only technical preparatory work has been done.  The Government's
maritime transport objectives include the development of a national merchant marine fleet, theplanning and organization of Government support for the sub-sector and the promotion of relations
with international organizations dealing with maritime transport and maritime law.
122. Passenger air transport has increased substantially over the past 10 years, the number of
passengers rising from 345,017 in 1994 to 913,159 in 2001.  This mainly involves international
transport of Haitians living abroad or travelling to and from the country.  In 2001, international flightshandled 771,793 passengers and domestic flights carried 141,366 passengers.  Freight figures are far
more stable, increasing from about 11,000 tonnes in 1994 to some 13,000 tonnes in 2001.
123. Haiti has no domestic airline.  The two international airports are served by ALM, American
Airlines, Air Canada, Air France and COPA.  Three private companies are in charge of ground
handling.  The Government-run Autorité aeroportuaire nationale (AAN) (National Airport Authority)
is responsible for managing and developing airport infrastructure.  It collects a fee of US$30 per
foreign passenger and US$6 per Haitian passenger, on departure from Haiti.
124. The Office national de l'aviation civile (OFNAC) (National Civil Aviation Bureau) is the
authority in charge of regulatory issues and of  enforcing the Civil Aviation Law, currently under
amendment.  The OFNAC and the AAN are due to remain Government bodies, respectively
responsible for regulatory matters and for the mana gement of airports and airfields.  The new Law,
which should come into force in 2002, should also lead to the adoption of regulations on the operationand airworthiness of aircraft and the licensing of aviation personnel, based on the Annexes to the
Chicago Convention.
125. Haiti has signed agreements with Canada, Cuba, France and Jamaica, dealing inter alia  with
price monitoring and the definition and scope of agreed traffic rights.Haiti WT/TPR/S/99
Page 77
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General Customs Administration (1997), Guide de la taxation douanière , Port-au-Prince.
Bank of the Republic of Haiti (2001), Rapport annuel 2000 , Port-au-Prince.
World Bank (1998), Haiti:   The Challenges of Poverty Reduction , Report No 17242-HA, Washington
D.C.
World Bank (2001), World Development Indicators , Washington D.C.
World Bank (2002), World Development Report 2002 , Oxford University Press.
Office for the Coordination and Follow-up of  the CARICOM/WTO/FTAA Agreements (2000), La
Communauté de la Caraïbe (CARICOM): Adhésion d'Haïti , Port-au-Prince.
Mines and Energy Bureau (1999), Haïti: Energie en Chiffres , Port-au-Prince.
International Monetary Fund (2001a), International Financial Statistics - Yearbook , Washington D.C.
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Government of Haiti (2001), Memorandum to the Third United Nations Conference on the Least
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United States International Trade Commission (2000), Operation of the Trade Agreements Program,
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