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HAITI - Assessment of the Haiti Economic Recovery and Opportunity (HERO) Act |
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Monday, 13 March 2006 |
An Assessment of the Potential Impact of the Haitian Economic Recovery and Opportunity Act(HERO)
Overview
This study was carried out in response to the introduction of legislation in the United States (Haitian Economic Recovery and Opportunity Act – HERO) to expand certain preferential trade treatment for Haiti. The legislation was designed to grant special preferences to the Haitian textile sector that is here referred to as such, or as the apparel sector, or the garment sector.
An issue of concern regarding the HERO legislation was whether or not there would be a significant adverse impact upon apparel manufacturers producing in the United States or US textile mills providing fabric. The study concluded that there should be no adverse impact on US apparel manufacturers since the type of apparel that could conceivably enter from Haiti under the new provisions of HERO have long-since left the United States for offshore operations. There is, as yet, no fabric or yarn manufacturing facility in Haiti and the authors of the study did not expect HERO to generate such production since Haiti lacks the factors of production required for such production—raw materials (cotton, cellulosics, or hydrocarbon derivatives) low-cost energy and available water. Counterparts
USAID Haiti and the Ministry of Commerce and Industry in Haiti. Timeframe
February through May of 2003 Activities
A team of consultants carried out the studying Haiti over a two month period. The study itself focused on seven major areas in order to gather the information necessary before making a conclusion. These were: - The current status of the Haitian textile sector
- The Haitian Textile Sector, Constraints and the Future
- Imminent Changes in Global Textile Trading Configurations
- Prospects for the HERO legislation and subsequent implementation
- Implementation of HERO
- Measures for Improvement of the Haitian Apparel Sector 36
- Policy Issues
Results
The study concluded that there should be no adverse impact on US apparel manufacturers since the type of apparel that could conceivably enter from Haiti under the new provisions of HERO have long-since left the United States for offshore operations. However, political turmoil in Haiti resulted in the fact that this legislation was never passed. Relevant Documents
Download this page in PDF format here.
E.16.16.1-1 Haiti HERO Report Final.pdf
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Project Activities 