Transitioning From Web Developer to Comic Book Author:

Haiti Hope Trade Agreement

At its peak in the 1980s, sources in the Haitian apparel industry estimated that the number of jobs increased to more than 100,000. The 1991-94 trade embargo virtually ended clothing activity, bringing employment to almost zero for a short period of time, as many apparel manufacturers appear to have left Haiti for Honduras and other sites in the region. During their reconstruction, Haitian clothing companies estimate that employment has more than doubled since the original HOPE legislation in 2006, reaching 27,000.33 Haiti`s commercial dependence is most pronounced on the import side. Haiti imports industrial goods, machinery, transportation, raw materials, energy and food. It is unable to produce most of these needs and will be a large net importer for an indefinite period. Haiti`s vulnerability has become acute over the past decade, with rising food and energy prices having a huge budgetary effect. Between 2002 and 2007, the value of food and energy imports increased by 57% and 159% respectively, although volume decreased slightly. In 2008, oil accounted for between 25 and 30% of total imports. This trend highlights two fundamental problems. First, rising commodity prices increase imports of food and energy and reduce Haiti`s purchasing power.

Second, to compensate, there is a composite substitution effect in which other goods must be abandoned in order to spend more on food and energy. This effect is reflected in the decline in imports of manufactured goods, which decreased by 37% between 2002 and 2007.29 The HELP Act made a number of significant changes to trade preferences, including the extension of the Caribbean Basin Trade Partnership Act (CBTPA) and the HOPE Act until 30 September 2020; the possibility that the value-added rule will remain at 50% until 2015; Increase the level of tariff preferences (TPL) to 200 million square metres of equivalent (SME) with many exclusions for U.S. industry; Extend knitted TPL in the same way import credit reduction 3 to 1 to 2 to 1; and the extension of the list of products that can be processed duty-free in accordance with specific assembly conditions. The HELP Act requires U.S. Customs and Border Guards (CBP) to verify that clothing items imported under the TTP are not illegally transferred to the United States and to develop a plan to assess and improve Haiti`s customs capabilities. A return to economic growth is essential to finance the long-term trade deficit. However, in the short term, there is no alternative to the use of foreign sources of income, including remittances, foreign aid and subsidies. Transfers finance Haiti`s budget and current account deficits, but they do not replace export-oriented production and financing.

Comments

comments