ARTICLE - D.R. FREE TRADE = DIVISION

THE IDEA OF A FREE TRADE AGREEMENT WITH THE DOMINICAN REPUBLIC DIVIDES
(Haiti Libre) -

The statements this week, of the new President of the Dominican Republic, Danilo Medina, elected Sunday, May 20, 2012, according to which he would like to sign a free trade agreement with Haiti, provoke mixed reactions in the economic sectors in Haiti.

For Jean Robert Argand, former President of the Chamber of Commerce and Industry of Haiti (CCIH), the signature of such an agreement "would be totally in favor of Dominican traders who would invade our market, because we don't have the ability to compete;" explaining that products from the Dominican Republic are everywhere in Haiti, while the Haitian merchants are not even able, mostly, to cross the border to sell their products. Citing as an example, Prestige beer or rum Barbancourt, which can only with great difficulty penetrate the neighboring market, while the beer and rum from Dominican Republic, are found in almost all supermarkets in Haiti. He believes that before thinking about signing such a treaty, the Haitian government should first be concerned to accompany Haitian producers and traders.

Eddy Labossière, the President of the Haitian Association of Economists (AHE), does not share this vision. He does not believe that such a Treaty of Free Trade between the two countries, will create more inequality than currently, while the trade balance of exports of Haiti, is already in a deficit of nearly $800 million annually for the benefit of the Dominicans.

He thinks the contrary, citing Prestige Beer and Rum Barbancourt as examples. These two products would find in such an agreement, an open door to market their products in the DR market. Nevertheless, he recognizes that such a treaty would be profitable at first, for merchants and companies that already have competitive advantages with the neighboring country, but also that the agreement would penalize other sectors of the Haitian economy with no such advantages. The Haitian economist, believes that the Government should address this issue within the framework of the Joint Bilateral Commission to analyze all aspects, and to identify the sectors of the Haitian economy that should be protected and enhanced.

One thing is certain; that any good free trade agreement between the two countries will have to find the right balance between the mutual opening of markets, and the inclusion of protectionist measures for sectors that may be threatened; the time they reach sufficient maturity, and to face the competitiveness of the neighboring country.