RESTRICTEDWORLD TRADE
ORGANIZATIONWT/TPR/G/99
8 May 2002
(02-2560)
Trade Policy Review Body Original:  French
TRADE POLICY REVIEW
HAITI
Report by the Government
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism
(Annex 3 of the Marrakesh Agreement Establishing the World Trade
Organization), attached is the policy statement submitted by the Government of
Haiti.
Note: This report is subject to restricted circulation and press embargo until the end of the meeting
of the Trade Policy Review Body on Haiti.Haiti WT/TPR/G/99
Page 3
CONTENTS
Page
I. INTRODUCTION 5
II. THE ECONOMIC ENVIRONMENT 1995-2001 5
(1) HAITI 'S ECONOMIC SITUATION FROM 1995- TO 2001 5
(i) Reforms 6
(ii) Sectoral performance 7
(2) REFORM OF THE FINANCIAL SECTOR 8
(3) FISCAL REFORM 8
III. TRADE POLICIES AND PRACTICES 8
(1) O VERALL OBJECTIVES OF HAITI’S TRADE POLICY 8
(2) L EGAL AND INSTITUTIONAL FRAMEWORK OF HAITI’S TRADE POLICY 9
(i) Legal framework 9
(a) Multilateral agreements 9
(b) Regional agreements 10(c) Bilateral agreements 10
(d) Other agreements or arrangements 10
(ii) Institutional framework 10
(3) S
ECTORAL TRADE POLICIES AND PRACTICES AND FREE COMPETITION 10
(i) Trade in goods 10
(a) Exports 10
(b) Imports 11
(ii) Trade in services 11
(iii) Haiti’s foreign trade (1996-2001) 11
(iv) Free competition 12
IV. HAITI AND THE WTO 12
(1) H AITI AND THE MULTILATERAL TRADING SYSTEM 12
(2) I MPLEMENTATION OF THE AGREEMENTS AND PROBLEMS ENCOUNTERED 13
V. OUTLOOK AND FUTURE ORIENTATION 13Haiti WT/TPR/G/99
Page 5
I. INTRODUCTION
1. The Republic of Haiti covers an area of around 27,750 km2  and is situated in the Caribbean
Basin between the latitudes 18o01’ and 20o06’ North and the longitudes 71o58’ and 74o29’ West of the
Greenwich meridian.  It occupies the western half of the island it shares with the Dominican Republic.
To the North, the coast faces the Atlantic Ocean and to the South the Caribbean Sea.  To the West, it
is separated from Cuba by the Windward Passage and from Jamaica by the Jamaica Channel(Fig. 1.1).  There are three neighbouring islands varying from 4 to 700 km
2.  Haiti is essentially
mountainous and is scoured by many rivers, the ten longest ranging from 35 to 280 km.  The highest
point is 2,680 m in the La Selle mountains.  On over half the land the gradient exceeds 50 per cent,
and only 21 per cent has a gradient of less than 19 per cent.
2. Haiti’s population in 2002 is estimated to be 8,304,000, of which 63 per cent live in rural
areas.  The population is growing at an average rate of 2.08 per cent and life expectancy at birth is
around 61 years.  The population is very young with some 39.6 per cent over 14 years of age.
3. The Republic of Haiti has a democratic regime in which power is divided between the
Executive, headed by the President of the Republic, and the Government, led by the Prime Minister.
The official languages are Creole and French.
Figure I.1:  Map of Haiti
II. THE ECONOMIC E NVIRONMENT 1995-2001
(1) HAITI 'S ECONOMIC SITUATION FROM 1995- TO 2001
4. Since the 1980s, Haiti has been engaged in economic liberalization.  A number of
stabilization and adjustment programmes have been implemented under agreements with theInternational Monetary Fund and the World Bank.  With the support of these two institutions and
other donors, reforms of the financial sector, foreign trade and fiscality have been put into effect
against a background of institutional crisis that has constrained the implementation of policies to
accompany the rehabilitation of the economy.WT/TPR/G/99 Trade Policy Review
Page 6
(i) Reforms
5. The reforms have included the following:
- Lowering of the customs tariff, which was simplified to four rates in 1995 (0, 5, 10,
15 per cent), with the exception of certain commodities;
- abolition of quantitative restrictions on imports;
- price deregulation;
- liberalization of interest rates and reform of the financial sector;
- privatization of State enterprises;
- revision of the Investment Code.
6. At present, two of the most important State enterprises have been privatized and efforts are
being made to restructure five others:  Administration Aéroportuaire National  (AAN) (National
Airports Authority), Electricité d’Haïti  (EDH) (Haiti Electricity), Centrale Autonome Métropolitaine
d’Eau Potable (CAMEP) (Autonomous Metropolitan Drinking Water Station), and
Télécommunications d’Haïti S.A. (TELECO) (Haiti Telecommunications Ltd.).  In addition, Haiti's
integration into international trade is being strength ened through its participation in the work of the
World Trade Organization (WTO), integration into CARICOM, participation in the activities of the
Association of Caribbean States (ACS), and in the preparatory work on the Free Trade Area of the
Americas (FTAA), due to come into effect in 2005.
7. Since 1986, the socio-political and institutional crisis in Haiti has clearly slowed down its
economic activities.  Over the past five years, the annual average rate of growth has been estimated at
0.7 per cent, whereas the population is growing at a rate  of 2.1 per cent.  The figures show that there is
little relationship between the fluctuations in investment and in the GDP and also indicate adeterioration in the marginal return on capital.  This is linked to the nature of investment and also
partly reflects under-utilization of production capacity.  Between 1995 and 2001, the level of
investment rose by 42 per cent.
1996-97 1997-98 1998-99 1999-00 2000-01
GDP (growth/percentage) 2.70 2.18 2.71 0.87 -1.20
Imports (growth/percentage) 7.19 6.61 22.71 29.26 -11.00
Investment (growth/percentage) 7.63 -3.23 23.96 18.34 -7.00
Marginal return on capital 0.35 -0.68 0.11 0.05 0.17
Domestic absorption in percentage of GDP 1.56 1.57 1.57 1.69 1.94
Data from the Haitian Institute of Statistics and Information Technology (IHSI, base 1986-87.
8. This low rate of growth is due to the increase in domestic consumption rather than in exports,
whose share of the GDP remains stable at around 11 per cent.  Consumption has only risen by 1.2 per
cent over the past five years and its share of GDP is 92 per cent, which is a contributory factor in a
surplus of domestic absorption of 94 per cent compared with GDP in 2001 (at 1966-87 prices).
Imports are rising rapidly, by more than 60 per cent in real terms and by double in nominal terms,
particularly in order to offset the insufficiency of  local supply.  The rate of import cover is 34 per
cent.  The financing of imports therefore mainly depends on current transfers, which are the major
source of foreign currency (1.7 times export earnings) and keep the deficit in the current balance at
less than 1 per cent of GDP.
9. The application of the controlled flexible exchange regime and the downward trend in real
exchange rates have not sufficed to encourage the fl ow of foreign direct investment for export, which
amounted to US$68 million over the past five years.  It has essentially been utilized to acquireHaiti WT/TPR/G/99
Page 7
holdings in privatized State enterprises and for investment in the telecommunications sector.  Net
flows of capital for public sector commitments have steadily decreased to reach an estimated amount
of US$1.6 million during the 2000-2001 financial year due to delays in approving certain loans, a
cutback in international cooperation with Haiti and the sanctions imposed as a result of defaults in
debt servicing payments.  Furthermore, the increase in earnings has been low (3.7 per cent in 2001).
The Treasury is unable to maintain a level of investment capable of meeting growing social demandswithout Central Bank financing.  Demand rose from 0.5 per cent of GDP in 1998 to 2.7 per cent in the
2000-2001 fiscal year.  As a result, the State has absorbed over half the economy’s credit.
10. Under such circumstances, macroeconomic imbalances have become more marked and the
economy must face the following problems inter alia :
- Depreciation of Haitian currency, from G 14.5 to G 23.8 per US$1 on average from
1995 to 2001;
- inflationary trends caused both by fiscal and monetary problems but also by the
imbalances in the real economy;
- an increase in the budgetary imbalance, together with accumulated external debt
payment arrears over the past two years amounting to over US$ 17.8 million at
30 September 2001.  This situation is partly due to the loss of earnings caused by the
rise in petroleum prices in the absence of a policy to adjust market prices
automatically;
- deepening of the trade imbalance, estimated to be US$664 million for 2001;
- a gradual fall in net foreign exchange reserves, estimated at US$113 million,
equivalent to 1.5 months of imports.
11. The adoption of a prudent macroeconomic management policy under the "Staff Monitoring
Program" (SMP) with the IMF has allowed stability criteria to be identified.  This has meant high
nominal rates of interest, but continued growth is currently vital in order to raise the population’s
living standards and reduce poverty, which, according to some studies, affects over 70 per cent of
Haitians, 80 per cent of them in rural areas.  Per capita GDP is less than US$ 500.
(ii) Sectoral performance
12. During the past five years, growth has principally been in the "Trade, Restaurants and Hotels"
and the  "Construction and Public Works" sectors, as well as in other marketable services, transport
and communications.  Agriculture, on the other hand, is declining.  With the exception of slight
growth (0.6 per cent) in 2000-2001, the agricultura l sector experienced a downward trend throughout
the period, which shows the slow pace at which the s ector is adapting to change both in the national
economic system and in the international environment,  marked by a fall in the prices of the two major
traditional exports, namely, coffee and cacao.  Manufacturing industry is stagnating, suffering from
the current crisis.  The assembly sub-sector accounts for around 80 per cent of Haiti’s overall exports,
but the number of firms operating in Haiti is decreasing and the majority of them are not working at
full capacity.  The production structure has therefore changed in favour of the services sector, which
accounts for 51 per cent of GDP, compared with 32 per cent for agriculture and 18 per cent for the
manufacturing sector (based on 1986-87 national accounts).WT/TPR/G/99 Trade Policy Review
Page 8
(2) REFORM OF THE FINANCIAL SECTOR
13. Interest rates have been liberalized since 1982.  In 1997, in order to lighten the burden on
banks, the Central Bank restricted the use of reserves as a liquidity management tool by introducing
BRH (Bank of the Republic of Haiti) bonds.  Action has also been taken to modernize the financial
system.  The Central Bank’s monitoring capacity has been reinforced and, according to experts from
the International Monetary Fund, the banks are now  operating in accordance with internationally
accepted standards.  A draft law on the Central Bank should affirm its independence.  Likewise, a new
banking law should ensure that the banking system  is in conformity with international rules and
standards.
14. Despite the expansion of the financial system with the establishment of new banks, interest
rates remain high (at present, an average of 32 per cent on loans) because of uncertainties and theinflation rate.  Negative real interest rates are offered on savings deposits in the banking system.  At
the same time, the increase in the number of savings banks has helped to widen access to credit.
Short-term loans are the most popular and account for around 59 per cent of loans in the banking
system.  As a result of profits on foreign exchange and the remuneration of liquidity through BRH
bonds, the banks’ profitability is improving and in 2000 the return on assets was 1.68.  The gourde nolonger acts as a reserve currency and the economy is facing increasing dollarization.  Over 40 per cent
of deposits are now in foreign currency.
(3) 
FISCAL REFORM
15. Fiscal pressure in Haiti is among the highest for countries in its category.  Over the past four
years, the average has been 8 per cent.  Per capita spending by the Treasury amounts to an average of
US$ 40.  Fiscal reform and stabilizing government finance have become necessary not only because
of the growth in social demand, the liberalization of the economy and the budgetary crisis, but alsobecause of the revision of the customs tariff, the creation of new customs posts, more stringent
controls, introduction of the computerized customs system (SYDONIA), administrative
reorganization of the tax collection entities with the creation of the Fiscal Management and Control
Unit (UGCF) – which handles the largest taxpayers and collects 40 per cent of domestic revenue -, the
reform of domestic taxes with the introduction of advance payments, the broadening of the tax base,and the adjustment of the price for petroleum products at the pump.  On the spending side, there has
been an improvement in budgetary procedures and a reduction in civil service employees as a result of
the voluntary departure programme.
16. Fiscal reform has not yet made a full impact because of the socio-political crisis.  The average
increase of 157 per cent in revenue from 1996 to 1999 has given way to an average of 3 per cent overthe past two years and the fiscal ratio (revenue/GDP) fell from 9.1 per cent in 1999 to 7.3 per cent in
2001.  The system continues to be improved in order to broaden the tax base, limit fraud, increase
fiscal revenue and enhance the quality of services to users.  In the long term, these reforms should
help to establish fairer fiscality by decreasing the importance of indirect taxes, which account for
almost 80 per cent of revenue.
III. TRADE POLICIES AND PRACTICES
(1) O
VERALL OBJECTIVES OF HAITI’S TRADE POLICY
17. Haiti’s trade policy responds to the Government’s concern to build a modern and prosperous
society open to competition from within and from  abroad.  The Government plans to establish an
environment that will encourage private initiative, promote investment, create jobs and achieve
economic growth;  reduce the deficit in the trade balance by exporting high value-added products andHaiti WT/TPR/G/99
Page 9
non-traditional products;  and improve the balance of payments by facilitating the entry of foreign
capital.  This policy focuses on the following principal areas of intervention:
- Haiti’s integration into international markets;
- development of the crafts industry, cultural products, and tourism potential;
- promotion of small and medium enterprises;
- building production capacity so as to obtain a larger share of national and
international markets;
- diversification of Haiti's trade partners so as to find new outlets abroad;
- implementation of a policy that promotes free competition and the transfer of
technology.
18. The achievement of these objectives will require the introduction of a new development
framework and the promotion of the products and services offered by Haiti.
(2) LEGAL AND INSTITUTIONAL FRAMEWORK OF HAITI’S TRADE POLICY
(i) Legal framework
19. Haiti’s foreign trade is governed by the following:
- the Customs Code and tariff of 1996;
- the Decree of 4 November 1987 (renewed) placing seven products under a quota
system:  rice, maize, millet, beans, pork meat and offal, poultry cuts, sugar;
- the Decree of 3 October 1983 authorizing the Société Générale de Surveillance (SGS)
to inspect all goods going to Haiti.  This firm’s activities have, however, recentlybeen suspended;
- the Notice making the import of ethyl alcohol subject to prior authorization by the
Ministry of Trade and Industry;
- the Industrial Investment Code (CII), which gives export firms concessions in the
form of exemption from customs duties, particularly for the import of raw materials;
- the administrative measure requiring an export permit for all products for export.
(a) Multilateral agreements
20. Haiti has been a member of the World Trade Organization (WTO) since 1996 and is
committed to undertaking action to revise and align its legislation and regulations with the regulatory
framework in the various WTO Agreements.  It also belongs to the World Bank, the International
Monetary Fund (IMF), and other United Nations specialized agencies and organizations such as the
UNDP, ILO, FAO, UNIDO, WIPO, etc.WT/TPR/G/99 Trade Policy Review
Page 10
(b) Regional agreements
21. Haiti acceded to the Caribbean Community (CARICOM) in July 1999 and was thus obliged
to renegotiate its customs tariff to bring it into line with the CARICOM’s Common External Tariff
(CET).  It will become a full member as soon as the Haitian Parliament has ratified the Chaguaramas
Treaty, the nine Protocols amending it, and the terms and conditions negotiated.  It is also involved in
the process to establish the Free Trade Area of the Americas (FTAA) and takes an active part in thevarious activities of the Association of Caribbean States (ACS), to which Mexico, Colombia,
Venezuela, Cuba, Central American countries and the countries of CARICOM belong.
(c) Bilateral agreements
22. The Republic of Haiti has signed bilateral framework agreements based on the most-
favoured-nation (MFN) principle with several countries, including Argentina, Colombia, Japan,China, Korea, Israel, the Cooperative Republic of Guyana, etc.
(d) Other agreements or arrangements
23. Haiti has signed the Lomé Convention, under which it benefits from non-reciprocal duty free
entry to the Community market for eligible products that meet the rules of origin requirements of the
European Union.  It is also a member of the Cotonou Agreement.  In addition, it benefits from anumber of preference schemes and concessions granted by the United States under the Caribbean
Basin Initiative (CBI).  It has also signed a textiles agreement with the United States and the European
Union (EU).
24. It has acceded to several other agreements such as the 1994 International Coffee Agreement
(ICO) as extended, the International Cocoa Agreement (ICCO), the Common Fund for Commodities,
the International Wheat Agreement, and the International Sugar Agreement.
(ii) Institutional framework
25. The Ministry of Trade and Industry formulates and applies trade policy in collaboration with
other institutions, notably the Ministries of the Economy and Finance, Agriculture, Natural Resources
and Rural Development, Public Health and Population, the Environment, the General Customs
Administration and the General Taxation Department.
(3) S
ECTORAL TRADE POLICIES AND PRACTICES AND FREE COMPETITION
(i) Trade in goods
(a) Exports
26. As far as traditional exports are concerned, the focus will be on seeking new outlets.  For non-
traditional products, the Government will take measures to promote their production.
27. Regarding manufactures, special attention will be given to expanding assembly and
subcontracting industries for which Haiti has already gained a reputation.  As these are by definition
precarious activities, however, this aspect will be combined with efforts to make the enterprises
concerned less dependent on a single principal or market.  Transfer of technology and joint
investment will also be fostered in order to allo w enterprises to sell goods bearing the label "Made in
Haiti" abroad.  Insurance mechanisms for exporting firms will be developed, together with thecapacity for sanitary control of products.Haiti WT/TPR/G/99
Page 11
28. Through the Industrial Investment Code, exporting firms enjoy benefits such as exemption
from customs duty on raw materials, inter alia .  Preferential treatment is given to foreign investors,
especially as regards income tax.
(b) Imports
29. Since 1995, the customs duty applicable to consumer goods has ranged from 5 to 15 per cent,
whereas for raw materials, inputs and by-products, the range is 0 to 5 per cent.
30. The import of animal or plant products requires an animal health or phytosanitary certificate
issued by the exporting country.
(ii) Trade in services
31. Although it is the most promising sector, "tourism" is marked by the inadequacy of the
facilities.  According to the projections in the Master Plan for Tourism, over a period of nine years,tourism could generate a positive balance of more than US$1.2 billion for the economy.  In order to
carry out the Plan, the State is seeking strong participation by the private sector both at the national
and international levels within the framework of priv ate or joint financing.  To start with, the tourism
potential that can a priori be exploited relates to visits by crui se ships, Haitian citizens living abroad,
"cultural" tourism and traditional seaside holidays.
32. At the artistic level, the promotion of groups and music and record production will be gradual
and selective because of the low level of labour expertise.
(iii) Haiti’s foreign trade (1996-2001)
33. Haiti mainly exports primary products (coffee, cacao and mangoes) and manufactured articles
such as clothing and underwear in the subcontracting sector.  Coffee and cacao go principally to
European markets (France, Italy, Belgium, Luxembourg, Germany), whereas manufactured articles
and mangoes are exported to the United States, which is the leading destination for Haiti’s exports(88 per cent of exports on average over the past five years).
34. During the past five years, Haiti’s exports have amounted to an average annual figure of
US$270 million and imports to an average annual value of US$ 850 million.  The trade balance shows
a structural deficit and has risen from –US$469.84 million in 1996 to –US$692.75 million in 2001.
The trade deficit/GDP ratio has fluctuated from 19.54 per cent in 1996, to 14 per cent in 1999, and19 per cent in 2001.
Haiti’s main exports
(in US$ millions)
Period Coffee Cacao Essential oils MangoesSmall –scale
industryManufactures
1996 24.58 3.74 6.99 5.03 13.06 106.49
1997 19.07 4.25 2.94 7.02 14.82 135.65
1998 21.75 7.50 3.72 5.80 19.77 211.19
1999 15.22 5.98 2.42 6.74 15.27 263.87
2000 (P) 7.12 6.5 2.46 7.978 9.62 257.7
2001 (P) 4.12 7.06 1.78 3.98 7.83 251.23
35. Between 1996 and 1999, exports rose by an average of 13 per cent as a result of the increase
in exports of manufactured articles in the subcontr acting sector.  In the past two years, however, thisWT/TPR/G/99 Trade Policy Review
Page 12
sector has suffered the consequences of a slowing down in demand in the United States in the textiles
sector, which has resulted in an average drop of 7 per cent in total exports.  The share of exports in the
GDP was 5 per cent between 1996 and 1997, and rose to an average of 8 per cent from 1998 to 2001.
36. For the 2001 fiscal year1, Haiti’s imports were estimated at US$986 million compared with
US$1.06 billion in the previous fiscal year.  This drop is due to the slowdown in economic activity;
real GDP shrunk by 1.2 per cent in 2001.
37. In the context of trade liberalization, Haiti’s imports over the past five years have shown an
average rate of growth of 9.25 per cent.  The share of imports in GDP rose from 21 per cent in 1997 to
27 per cent in 2001.
38. Haiti’s imports mainly come from the United States (70 per cent), the European Union
(15 per cent) and the Dominican Republic (7 per cent).
Haiti’s imports by major product category
(in US$ millions)
Period Food products Mineral fuels Manufactured articles Transport equipment
1996 219.62 79.44 110.62 125.01
1997 209.6 74.89 122.7 126.8
1998 236.48 80.84 169.98 142.07
1999 278.97 83.21 201.48 164.85
2000 247.77 186.55 237.41 171.54
2001(P) 261.44 163.82 212.51 175.22
(iv) Free competition
39. In an effort to improve consumers’ living standards and to make Haiti more competitive
abroad, the diversification of the emerging private initiatives should be pursued in a climate of free
competition.  The Government intends to utilize Haiti’s comparative advantages, and to direct
resources to activities that are more economically profitable, while at the same time ensuring that themarket applies real consumer prices.
40. The relations between economic operators and the public sector will be enhanced by
simplifying administrative procedures, eschewing arbitrary action, ensuring that the granting and
control of investment concessions are equitable, and accelerating procedures for the payment of State
suppliers.  With a view to strengthening both inte rnal and external competitiveness, the Government
is seeking to reduce and then abolish the surcharges related to production factors, particularly those
concerning the highways and telecommunications infrastructure, port and airport charges.
IV. HAITI AND THE WTO
(1) H
AITI AND THE MULTILATERAL TRADING SYSTEM
41. Haiti became a contracting party to the GATT in 1949 and an original member of the WTO
on 30 January 1996, so almost all its customs tariffs have now been bound in the multilateral trading
system and include rates ranging from 0 to 50 per cent.  Products such as rice, maize, millet and flour
are subject to a ceiling rate of 50 per cent.  Sugar, roasted coffee and tomato paste have been bound at
40 per cent.  Regarding the specific commitments made under the General Agreement on Trade in
                                                     
1 October 2000-September 2001.Haiti WT/TPR/G/99
Page 13
Services (GATS), the sectors or subsectors in Haiti’s schedule concern, inter alia , professional
services (veterinary services), construction and related engineering services (general building
construction work, civil engineering works, installation and assembly works, finishing of building
works), education services (adult training centres), financial services (all insurance services,
reinsurance and retrocession services;  banking and other financial services (except for insurance,
etc.), travel and tourism services (hotel and restaurant services, including catering services).
42. As a Member of the WTO, the Republic of Haiti observes its obligations on notification.  It
should be noted, nevertheless, that Haiti has two versions of schedule XXVI of tariff concessions:  the
first incorporated in the GATT 1947 and the other in the GATT 1994.
(2) IMPLEMENTATION OF THE AGREEMENTS AND PROBLEMS ENCOUNTERED
43. Haiti is subject to the obligation to implement all the multilateral trade agreements and
intends to harmonize the relevant legislation and provisions.  This applies to the Agreements on  rules
of origin , subsidies and countervailing measures , dumping , safeguards , technical obstacles to
trade , and services .
44. The majority of imports no longer require an automatic or non-automatic licence.
45. In general, the current Investment Code and the new one before Parliament do not contain any
provision contrary to the Agreement on trade-related investment measures .
46. As far as customs valuation  is concerned, in Haiti the Brussels nomenclature applies.  Haiti
has obtained a further extension until January 2003 for implementation of Article VII of the General
Agreement on Tariffs and Trade 1994.
47. Concerning intellectual property rights , a new legal framework that is in harmony with the
provisions of the TRIPS Agreement is being drawn up.
V. OUTLOOK AND FUTURE ORIENTATION
48. The Government intends to continue with the structural reform needed for long-term growth
of the economy while at the same time seeking to create the stable conditions required for the
development of business.  Special attention will be paid to the most vulnerable sectors of the
population.  Sectors with high value-added and closely integrated into the rest of the economy will
receive special attention.  The following are de emed priorities:  strengthening the regulatory
structures, promoting financing mechanisms, defining strategic choices, and reinforcing the public
sector-private sector partnership.
49. The first priority should be to create the political conditions and the legal framework needed
to foster private initiative and strengthen international cooperation.  In order to bolster the confidence
of the private sector, the Government intends to continue revising the tax laws and to move aheadwith ratifying the new Investment Code, which extends all the fiscal concessions to other important
sectors of the economy.  Together with public inve stment efforts, boosting private investment should
make it possible to achieve the objective of annual economic growth of around 4 per cent.
Macroeconomic policy will focus on the following in particular:
- Limiting the annual rate of inflation to less than 10 per cent;
- gradually bringing down the budget deficit to less than 1 per cent of GDP;WT/TPR/G/99 Trade Policy Review
Page 14
- stabilizing exchange rates;
- restoring reserves to a level that covers at least three months of imports.
50. The Government will play an active role in the new multilateral trade negotiations launched
in Doha.  Special attention will be paid to agriculture and the two versions of schedule XXVI, whichmust be harmonized in order to resolve the tariff classification problems raised by Haiti’s adoption of
the Harmonized Commodity Description and Codi ng System (HS), 1996 version.  The current
customs tariff is in fact based on this nomenclature.
51. With a view to Haiti’s final accession to the CARICOM, its trade policy will be harmonized
with that of this economic integration zone.  Fu rthermore, the rules and standards applied in the
CARICOM will be put into effect in Haiti.
52. In order to reduce unemployment, the Government will foster foreign investment in Haiti, and
will promote small and medium enterprises, as well as the creation of free zones.
53. The Government will consider taking measures to encourage export producers to make the
adjustments and improvements to their products’ quality required by technical standards andspecifications such as those contained in the Agreement on Technical Barriers to Trade.
54. In the mining and energy sectors, the Government will seek to harmonize its energy policy
with that of other Caribbean States.  In a wider perspective, it will encourage these sectors to
participate in international bodies with a view to harmonizing standards, policies and practices.  In
this connection, the signature and ratification of the relevant international treaties and agreements will
be speeded up.  This meets the Government’s concern to ensure:
- Application of international labour standards in the areas being exploited;
- exploitation of the resources of the soil and subsoil respecting environmental
protection standards;
- the establishment of an intersectoral c onsultation mechanism involving the private
sector so as to create a climate of trust and to guarantee that decisions are impartial;
- customs exemption for the import of machinery and equipment to be used for mining
to be granted to firms in this sector.
55. In the agricultural sector, the Government will increase production of food crops and crops
for export.  For this purpose, the following are planned inter alia :
- Maintaining the subsidy to farmers (50 per cent) on the fertilizer prices under the
KR2 project;
- continuing the land reform process in the Artibonite and in areas with a high potential
for growing food crops;
- reinforcing phytosanitary and animal health control and protection measures;
- technical support for the development of export branches and products, including
coffee (gourmet coffee), cacao, mangoes, essential oils, " clairin " (Haitian white rum).Haiti WT/TPR/G/99
Page 15
56. The special situation of Haitian agriculture will have to be taken into account in order to
support the Government’s efforts to lessen the economy’s marked dependence on imports.  Greater
flexibility in the measures to protect and support agriculture is thus desirable.
__________