Congress and the Obama administration should appreciate that business cannot go on as usual when something very unusual is going on. Asking why it is necessary to increase Haiti’s duty-free access for knit and woven apparel from the current 70 million square-meter equivalents limit to 250 million is like asking a farmer if he needs water to grow his crops.
The question should really be: Why are there any limits at all on Haiti? Why not unlimited access like Egypt and Jordan presently enjoy in the U.S. market?
Haiti needs very generous access to the markets of wealthy countries, particularly the United States, to transform its economy and build a new Haiti.
Apparel has been the road to economic development for every developed country dating to Great Britain in the 19th century. The United States will import this apparel. The main question is whether it will come predominately from China and other Asian countries, or will Haiti get its fair share?
The January earthquake shattered Port-au-Prince, Haiti's capital, and raised questions in the minds of potential foreign investors about doing business in Haiti.
Some in the U.S. textile industry think the jump from 70 million to 250 million square-meter equivalents is too high. It isn’t. They are concerned it will encourage companies to bypass trade restrictions by bringing in material cheaply from other countries such as China and manufacture the product in Haiti. So what? No trade agreement can screen out every bad apple, but effective tracking can and will sift out trouble. Shouldn’t Congress focus on helping Haiti get back on its feet and not the few who will take advantage?
Some are even fighting the extension of Haiti trade benefits much beyond their current expiration – some benefits expire as soon as 2012. Failure to extend the benefits for several years would be a big mistake. Haiti has asked for a seven-year extension while some say Congress should only agree to a gratuitous two years.
It’s time for the U.S. to put its money where its mouth is and bring hope to Haiti through a trade agreement that will matter.
Fritz Felchlin is the Athens-based president of Island Apparel which operates in Port-au-Prince, Haiti. E-mail him here.