PORT-AU-PRINCE — Prime Minister Garry Conille met with members of the Association of Industries of Haiti (ADIH) Thursday to discuss urgent measures aimed at rehabilitating Haiti’s economy, particularly the textile and apparel sector, which has been severely impacted by gang violence and the country’s political instability over the past three years. Due to gangs’ grip on the country, several companies have closed, thousands of employees have lost their jobs, and the remaining factories are struggling to fulfill orders.

During the meeting, part of a broader initiative to revitalize the Haitian economy, Prime Minister Conille assured the private sector’s representatives that his government would take steps to restore political and economic stability, indispensable to enhancing Haiti’s industrial performance. 

The meeting’s agenda covered not just the insecurity issue but also other aspects related to measures the government can take to bolster the textile and apparel industry, such as tax exemptions, raw material imports, improving customs procedures, strengthening border controls, and seeking the renewal of the Haitian Hemispheric Opportunity through Partnership Encouragement and Haiti Economic Lift Program, also known as HOPE and HELP.

Conille reiterated the government’s commitment to collaborating with ADIH and other business associations to create a favorable business environment and address the challenges of the industrial sector.

This meeting, involving the transitional government and industrial sector representatives, took place against a backdrop of escalating gang violence that has resulted in thousands of layoffs in the textile sector, which accounts for nearly 35% of Haiti’s total exports.

Telemaque Pierre, a union leader, highlighted the ongoing insecurity that prevents factory managers from placing orders for essential raw materials. “Several factories continue to close, and hundreds of workers are now unemployed,” Pierre told The Haitian Times. “The situation remains dire and worsens daily.”

Insecurity caused by escalating gang violence exacerbates the crisis

Gang violence has severely disrupted Haiti’s economy, with no sector spared from kidnappings, roadblocks and goods seizures. The textile sector, already plagued by poor working conditions and wage disputes, has seen a significant decline in employment and factory operations. In 2021, the sector employed over 60,000 people, but by December 2023, this number had dwindled to under 37,000. As of March 2024, employment in the sector has further decreased to around 29,000 jobs. 

The situation is particularly alarming in the Free Zone industrial park, which is located near Ouanaminthe and Dajabon on the northern border of Haiti and the Dominican Republic. 

Former ADIH president George Sassine reported that the Caracol Industrial Park there, which once had 14,000 employees, now has fewer than 3,000. Similarly, the CODEVI industrial development company’s workforce has reduced from 20,000 to 17,000. 

“Factories have reduced their production capacity, and workers’ hours have been cut,” Sassine said. “Loss of contracts is another major issue due to unmet commitments.”

The economic impact of this decline is profound, with inflation rising to 27.3% in April 2024. Many workers, facing job losses and decreased purchasing power, have considered emigration for better security and living conditions as companies continue to lay off workers.

A company like Mas Akansyèl S.A., operating at Caracol Industrial Park, announced plans to lay off over 1,000 employees between April and August 2024, according to Haitian newspaper Le Nouvelliste.

Pierre indicated that the situation is no different for the factories in Port-au-Prince, located in the park of the Société Nationale des Produits Industriels (SONAPI), which used to be the epicenter of the textile and apparel industry. He explains that insecurity has already caused the loss of 20,000 jobs and that businesses continue to close their doors in the park.

The textile and apparel industry remains vital to Haiti’s economy

The textile sector remains Haiti’s leading export industry, comprising 90% of the country’s manufactured exports, predominantly to the United States, according to the Cell of the Reinforced Integrated Framework (CIR) of the Ministry of Trade and Industry (MCI). However, the Haitian Institute of Statistics and Information (IHSI) reported that due to gang violence, exports from the sector fell from $449.34 million in 2022 to $329.96 million in 2023—a 26.6% decrease.

Economist Enomy Germain emphasized the urgent need for government action to create decent jobs and combat unemployment and poverty. “When people lose their jobs and have no income-generating activity, the country’s gross national income index suffers,” Germain noted.

Renewal of the HOPE/HELP Act may help boost the sector 

In light of these challenges, Haiti’s advocates in the United States have recently called on Congress to renew the HOPE and HELP trade programs, set to expire in 2025. These trade partnerships aim to bolster Haiti’s economy, especially through the apparel sector and preferential U.S. market access.

Prime Minister Conille stressed the importance of these programs for Haiti’s economic stability. The HOPE/HELP program, which eliminates customs duties on certain Haitian textile exports to the US, has been crucial, accounting for over $1 billion in exports and supporting over 80% of Haiti’s total exports, the Haitian prime minister said.

“The Haitian textile industry is at a critical juncture, with urgent interventions needed to address insecurity, improve working conditions, and sustain economic stability through programs like HOPE/HELP,” the sector’s operators also recognized.