Warning of the End of the HOPE Act Could Increase the Flow of Haitians to the Dominican Republic Due to Unemployment

Santo Domingo. – The expiration of the HOPE/HELP Law, which for more than two decades granted Haiti preferences to export to the United States without paying tariffs, could generate massive unemployment in that Caribbean country. This scenario would increase migratory pressure towards the Dominican Republic, as thousands of Haitians could seek to cross the border in search of better living conditions in the face of the deep crisis that their nation is going through. Senator Omar Fernández highlighted that the law has not only incentivized investment in the border area, but has also functioned as a "containment wall" against the insecurity situation in Haiti. In that sense, he stressed the importance of its renewal for the country. "Somehow, the fact that we have that law encourages companies to give jobs to many people who, if they are deprived of those jobs today, where do you think they will go? To the Dominican Republic, so renewing that law, I think, would help a lot, not only to boost the economy, but also to serve as a containment wall so that many Haitian nationals who work there today do not end up coming here to fend for themselves," Fernández pointed out. The legislator added that efforts have been made in the United States Congress to renew the law and that he was willing to collaborate from the Senate Foreign Relations Committee in everything necessary for it to materialize. For his part, the deputy Charlie Mariotti Paz indicated that representatives of the Ministry of Foreign Affairs (MIREX) are in Washington managing the extension of the law for 10 more years, highlighting that the program generates more than 10,000 crucial jobs for the Dominican economy.

Economist warns that consequences could be more serious than expected

Economist Edita Rodríguez Salce warned that the expiration of the HOPE/HELP Act could have more severe effects than anticipated. She noted that this change would represent a hard blow to the Haitian economy and would affect both Haitians and Dominicans who work in the industrial park Compagnie de Développement Industriel S.A. (CODEVI). “Throwing as many people onto the street as a result of the 30% tariff increase, we are talking about brands like Victoria's Secret, Calvin Klein and GAP, all of which produce in that free zone, and that is really worrying for us and of inestimable consequences, beyond what we are seeing”, the expert expressed.

What is the HOPE/HELP Act

The Haitian Hemispheric Opportunity through Partnership Encouragement (HOPE) and Haiti Economic Lift Program (HELP) programs are U.S. initiatives designed to boost Haiti's economy by exempting tariffs on certain products exported to the United States. Their main goal has been to encourage foreign investment and job creation, especially in the textile industry, allowing Haitian factories to export clothing and textiles without paying import taxes.

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After the 2010 earthquake, the HELP program expanded its benefits to other sectors, in order to diversify the economy and support the country's recovery.

The president of the free zone company Codevi, Fernando Capellán, remains optimistic about a possible renewal of the law. He pointed out that the White House supports the continuation of the legislation, since the conclusion of the program would not only affect Haiti, but also the supply chain of the United States.