The U.S. House of Representatives passes legislation expanding Trade Preferences to Haiti

WASHINGTON, DC – The U.S. House of Representatives passed H.R. 2419, the Food, Conversation and Energy Act of 2008 – otherwise known as the Farm Bill – by a veto-proof vote of 318 to 106. The legislation included the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II) which expands trade preferences to Haiti’s textile industry. The HOPE II Act was championed by Chairman Charles B. Rangel (D-NY) and Congressman Kendrick B. Meek (D-FL).

“The Farm Bill should promote nutrition and enhance food access at home and abroad,” said Chairman Rangel. “You can’t always spread democracy with a rifle and this bill improves on existing measures to address the crisis in Haiti caused by rising food prices and persistent poverty. By extending and strengthening provisions that would soon expire, we can help give a sense of certainty to investors to continue the economic growth and development we have built in the Caribbean region, while creating new opportunities for American workers, farmers and businesses.”

“Considering where we were on HOPE II a month ago, we’ve come a long way in a short amount of time,” said Congressman Meek. “Humanitarian assistance for Haiti in the short run is critical, but creating jobs by revitalizing the Haitian economy in the long run is essential. The international community is playing a vital role in stabilizing Haiti, but ultimately it is Haitians who need to rebuild their economy by developing homegrown industries, and HOPE II gives Haitians that opportunity.”

In 2007, H.R. 6111, the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006 (HOPE) was signed into law. It was initially thought that within 6 months to a year the HOPE legislation would at least double the number of jobs in the textile industry in Haiti from 12,000 to a minimum of 24,000. The legislation however included overly complicated rules which have made foreign investment in Haiti extremely difficult.

HOPE II will expand the benefits for U.S. apparel imports from Haiti beyond what Haiti currently receives under the Caribbean Basin Trade Partnership Act. The average Haitian garment worker earns between $4 and $5 a day, while 80% of Haitians live on less than $2 a day. Haitians working in the textile industry possess the buying power to help stimulate the Haitian economy.

HOPE II includes the following provisions:

· The legislation will lengthen the trade preferences from the current three year period to a ten year period, giving businesses the stability they seek in a preference program.

· The legislation will increase the amount of duty free fabric allowed to come into the U.S. from Haiti by streamlining rules of origin.

· Benefits will be tied to Haiti continuing to hold fair and free elections and its ability to maintain and improve governmental transparency.

· The legislation includes the implementation of a new labor program, which will ensure that HOPE II continues the Democratic tradition on providing strong worker rights in trade agreements.

Congressman Meek was the first Member of Congress to travel to Haiti since unrest broke out in Haiti over one month ago due to rising food prices. During his trip on April 20 and 21, Congressman Meek met with Haitian President René Préval, U.S. Ambassador to Haiti Janet Sanderson, representatives from the international community, and toured Haitian factories that would benefit from the passage of HOPE II legislation.