The main objective of this study is to collect basic business information on Haiti, including its political situation, economic development, business expenses, and investment regulations, etc., and to encourage investors from Taiwan to invest in Haiti.
The Republic of Haiti lies on the western side of Hispaniola bordering the Dominican Republic to the east. It covers an area of 27,750 km2 and has a population of 1.5 million. A mainly agriculture-based economy, Haiti has increasingly relied on foreign aid for development and structural adjustments. The main causes of the nation’s negative GDP growth from 2001 to 2004 were the slowing US economy, reduced imports, the cancellation of foreign fiscal aid, falling domestic and foreign investment, an industrial slowdown, low domestic demand and natural and human-related disasters. The Haitian economy is now gradually stabilizing with the support of the IMF and is showing obvious signs of improvement that can be attributed to the commitment of President Rene Preval, who took office in May 2006. In addition, the US House of Representatives passed the Haitian Hemispheric Opportunity through Partnership Encouragement Act (the HOPE Act) on December 8, 2006. By loosening the rules of origin on USbound apparel exports, local apparel manufacturers can enjoy higher profits, and more jobs will be created, thus raising Haiti’s potential for future economic development.
Due to the great distance between Haiti and Taiwan, there is much more room for the development of bilateral trade relations. Taiwan’s exports to Haiti totaled US$6,464,000 while its imports from Haiti were only US$4,047,000. This translates into a trade surplus of US$2,417,000 for Taiwan. In recent years the Haitian government has amended its laws related to investment and has enacted rules for a duty-free zone in order to attract more foreign investment and develop the economy. Tax incentives will encourage more local and