Despite extraordinary challenges, Haiti embraces trade as it looks toward the future

KEY RESULTS

• Establishment of essential local trade institutions | EIF support led to the establishment of a national implementation arrangement, including a National Steering Committee and National implementation Unit. 
• Advancing pro-poor trade | The National Steering Committee – established through a 2013 presidential decree – was given a mandate to operate as a public-private dialogue platform to help advance pro-poor trade in Haiti.
• Highlighting the role of trade in development initiatives | Key trade-related policies – including a medium-term intersectoral plan, a trade strategy and an action plan – were established by the Steering Committee to help increase the profile of trade among Haiti's development partners.
• Strengthened coastal communities | EIF support targeting Haiti’s fisheries and sea salt sectors benefited as many as 343 stakeholders – including women and youth – through training, institutional strengthening and technical assistance.
• Supporting women through digital skills training | Women were provided with digital skills training through a unique entrepreneurial support partnership between the EIF, the International Telecommunication Union (ITU) and the Government of Haiti.

In 2010, a catastrophic earthquake struck Haiti, killing an estimated 300,000 people and devastating the capital, Port-au-Prince. This was the same year the EIF entered into a partnership with the country, providing support for a pre-Diagnostic Trade Integration Study (pre-DTIS). For the EIF, which is committed to supporting fragile and conflict-affected countries as part of its mandate, undertaking the Study at this time was a bold and necessary step. This sustainable support came at a time Haiti – already classified as one of the world’s most aid-dependent and fragile countries – needed an initiative like Aid for Trade (AfT) to stimulate the economy, generate jobs, increase incomes and build resilience. 

Haiti’s full DTIS was completed and validated in 2013 by the Government, with the World Bank as the main implementing partner. The Study identified strategies for integrating Haiti into the regional and global trading systems and highlighted six priority sectors for growth: agriculture, tourism, textiles and clothing, mining, cultural and creative industries, and information communication technologies (and related services). The DTIS also singled out a number of agricultural products with export potential, including vetiver and other essential oils, Francisque mangoes, seafood, coffee, and cocoa beans. The textiles and clothing sector was highlighted as a potential major source of employment, while tourism, services and information technology were all noted for their potential to create jobs and reduce poverty. The EIF allocated resources to help strengthen the capacity of the Ministry of Commerce and Industry to lead Haiti's trade agenda and support the implementation of the DTIS. 

Speaking to the local media outlet Haiti Libre at the DTIS validation in 2013, then-Minister of Economy and Finance, Wilson Laleau emphasized the importance of trade in Haiti’s economic journey. "Haiti can use trade broadly as a growth driver to emerge from its current classification of least developed country to a less dependent economy," he said.

Institutional and skills development

The Government of Haiti and the EIF soon followed up with financial and technical support for the establishment of a National Steering Committee (COMCIR). COMCIR was established through a presidential decree, with a mandate as a public-private dialogue platform to help reform and develop the policies and strategies necessary to advance pro-poor trade in Haiti. An EIF National Implementation Unit (NIU), hosted by the Ministry of Commerce and Industry, was also established to manage these processes.  

With the institutional arrangements in place, the EIF focused its support on technical, analytical and capacity-building initiatives for trade mainstreaming and policymaking across all sectors of the economy, including the social and environmental sectors. Among the results were the development of a new trade policy, a medium-term intersectoral plan, and the Strategic Action Plan for Growth and Jobs (a trade strategy and action plan). These policies also served as a basis for mobilizing development partners around Haiti's trade priorities through the Donor Facilitator, a role currently played by the European Union Delegation. 

The COMCIR strengthened linkages between cross-sectoral government and private sector implementation networks. By leveraging EIF support, the Committee further built government and private sector capacity through training on a range of trade-related matters, including product and system certification.

The COMCIR decree also integrated the Ministry of Commerce and Industry into negotiations with the World Trade Organization (WTO), the Caribbean Community (CARICOM) and the European Union-Caribbean Forum (EU-CARIFORUM) Economic Partnership Agreement, with support from the EIF. Haiti has been a member of the WTO since 1996 and a member of CARICOM since 2002. It is a signatory to CARIFORUM, but has not yet ratified the agreement. The EIF continues to support Haiti's participation in regional trade negotiations, including through English language training – as it is the only French-speaking country in CARICOM and EU-CARIFORUM. 

Catalysing trade diversification for pro-poor growth

Marine resources offer great potential for job creation and poverty reduction in Haiti, with fisheries and sea salt identified as the first and second priorities in the DTIS Action Matrix. 

The EIF invested in the fisheries and sea salt value chains in 2021, with the intention to act as a catalyst to demonstrate the potential of the marine environment. The project, developed in consultation with the private sector and civil society, led to training, institutional strengthening and technical assistance for as many as 343 members of fish harvesting associations and salt growers’ cooperatives. Equipment provided under the initiative included wooden and fibreglass fishing canoes, outboard motors, traps made by more than 20 local artisans, fish aggregating devices, fishing lines and hooks. Preservation equipment was also supplied, making it possible to preserve fish for three to four months. 

The EIF supported the production of more than 15,000 red mangrove seedlings through the installation of two mangrove nurseries at Pointe des Mangles and Môle-Saint-Nicolas. As many as 5,000 of these seedlings have already been transplanted from the nurseries. From its inception to 2023, the project has seen a 26.5% increase in fisheries production, with sea salt output projected to increase from 75 metric tonnes to 200 metric tonnes per hectare per year due to modernized salt production techniques. 

Support for key exports and women entrepreneurs

Project proposals have been developed by the NIU to expand catalytic projects in areas that will advance women’s economic empowerment, sustainable development and trade, in line with the DTIS priorities. In 2017, 19 projects were presented at a donor roundtable, with textiles, agriculture, information and communication technologies, mining, and tourism as the main focus areas. 

The textiles sector is an already well-established export area, representing nearly 90% of Haiti’s exports and providing some 45,000 jobs. The sector has pro-poor, pro-women growth potential, but requires modernization and market diversification. The primary market is the United States, which receives more than 90% of these exports. The textile project proposals presented at the roundtable were well received as having potential for support under the EU-CARIFORUM. However, they failed to go any further as Haiti has yet to ratify the EU-CARIFORUM Economic Partnership Agreement. 

Haiti's agriculture sector, which has declined significantly over the last five decades due to insecurity, requires support to strengthen and improve conditions and standards for export. Vetiver and other essential oils, mangoes, and cocoa beans have seen some increases in production and exports over the last decade, but progress continue to be held back by conflict and insecurity. 

In 2020, the EIF partnered with the International Telecommunication Union (ITU) and the Government of Haiti on an initiative to use information technology as a driver of entrepreneurial support for women. The project – which is part of the ITU EQUALS Global Partnership and the EIF’s Empower Women, Power Trade Initiative – aimed to build digital skills for women to provide opportunities for business expansion, connections to new markets and improved employment opportunities. According to Loly Gaitan, a project manager in ITU’s digital inclusion thematic development bureau, projects like these can generate noticeable impacts in countries that are struggling.

The initiative’s launch during the COVID-19 pandemic presented challenges as well as opportunities. Travel restrictions led the project to change its model to virtual training and a "training of trainers" model, which empowered regional and national partners. Lockdowns also emphasized the need for building digital skills among women. 

Lasting commitment

Over the period of the EIF’s partnership with Haiti, activities have been hampered by social and political unrest, including COVID-19, the 2021 assassination of the President, closely followed by the August 2021 earthquake. All have had significant impacts on Haiti’s fragile economy. 

Yet, throughout the partnership, the Government of Haiti has shown commitment to, and ownership of, the DTIS process and its identified priorities. The EIF invested nearly USD 3.8 million toward enhancing Aid for Trade in Haiti and, in line with its flexible approach and commitment to supporting fragile states, it has extended activities several times as needed. With patient progress, a better future for Haitians may finally be in sight.