21086: Esser: U.S. Agricultural Exports to Haiti (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: D. Esser torx@joimail.com

Below are some excerpts from a March 24, 2004 report by the U.S.
Department of Agriculture on exporting to Haiti. This somewhat flies
in the face of a commonly used argument when talking about the
occupation: that the U.S. has virtually no commercial interests in
Haiti, and due to the size of the market there cannot be any
incentive to maintain or improve U.S. marketshare in this country.



USDA Foreign Agricultural Service
GAIN Report
Global Agriculture Information Network

Date: 3/24/2004
GAIN Report Number: HA4001

Haiti
Exporter Guide
Annual
2004

B. Market for Imported Products

Haiti is often perceived as a minor market for food and agricultural
products, because of its economic problems and low per capita income.
However, there are several factors the contribute to making it a
significant importer of food products:

* Hait’s low per capita income is offset somewhat by its relative
large population. Haiti has a population of almost 8 million, about
15 percent of which has a purchasing power at least equal to that of
other Caribbean countries. Although 15 percent is a small portion of
the total population, the number of potential consumers it represents
is still greater than for most Caribbean Islands.
* Remittances from abroad. Remittances from Haitians living abroad
(mostly in the United States and Canada) represent an annual
financial inflow of more than US$300 million.

Other factors that contribute to making Haiti a significant market
for U.S. agricultural are:

*Haitian dependence in imported food products. About 75 percent of
Haiti's food supply is satisfied through imports.
* Insufficient local production. Although there is some local
production of fruits, vegetables, rice, cereals, poultry meat, and
other products, quantities are not sufficient to meet local demand.
* The United States is Haiti's largest trading partner. American
products dominate the Haitian market, maintaining an estimated
60-percent market share across all categories.

Surprisingly, U.S. agricultural exports to Haiti have averaged US$187
million over the past five years. A large portion of these exports
are staple products, such as wheat, rice, and beans; however, there
is still a significant portion of the population that can afford and
demands a wide variety of processed food products. Imports of
consumer-oriented products reached a record level in 2001 of almost
$51 million. This total includes poultry meat, dairy products, fruit
and vegetables juices, breakfast cereals, processed fruit and
vegetables, red meat, and wine and beer, among others. Imports of
U.S. rice reached a record level of $89 million 2003, increasing 40
percent from the previous year. Imports of wheat were $23 million in
2002, followed by pulses at $16 million. Imports of U.S. intermediate
agricultural products were $25.6 million in 2003, down somewhat from
previous years. This decline was principally in wheat flour,
vegetable oil, and traditional food aid items for feeding programs.
Imports of U.S. consumer-oriented products totaled $43 million in
2002 and 36.7 million in 2003.


D. Tariffs and other Import Taxes

Tariffs were slashed to a range of zero to 15 percent in a key step
towards Haiti's zero tariff goal. The reduction will also mitigate
the impact on local prices of the Haitian government's new policy to
value imports at the free market rate of exchange for the Haitian
currency, the Gourd. Certain products or goods which had a tariff of
10 percent (sugar, rice, flour, and cement) now are charged at a rate
of 0 3 percent.
.