DR, Haiti mend trade fences

The sewing machines at a new Dominican-owned apparel plant in this Haitian border city are stitching together not only Levi’s jeans but also a new chapter in the history of two nations with centuries-old grudges. The plant, in the first free trade zone established on the Dominican-Haitian border, has created nearly 300 jobs for Haitian workers since operations began six months ago. Grupo M the plant’s owner and the Dominican Republic’s largest apparel producer, is taking advantage of the cheaper labour in Haiti and a US quota for Haitian goods that local manufacturers cannot fill. ‘’This arrangement gives us the ability to compete,’’ said Fernando Capell?n company founder and president. For its part, the Haitian government has given its support to the project in hopes that it will bring economic prosperity to the region. “My arms are wide open for Dominicans who want to invest in Haiti,’’ Haitian President Jean-Bertrand Aristide said during a visit to the Dominican Republic last year. But the Grupo M plant is also an unusual sign of cooperation between French- and Creole-speaking Haiti and the Spanish-speaking Dominican Republic, longtime and sometimes bloody rivals who share the island of Hispaniola. Ouanaminthe, with an estimated population of more than 42,000, has long been a source of contention between the two nations, an illegal crossing point for migrants and contraband such as drugs and weapons.

The Grupo M plant is a stone’s throw from the winding R?o Massacre, where 17,000 to 30,000 Haitians were slaughtered in 1937 by the Dominican army under orders of then-dictator Rafa?l Trujillo. Despite its harsh history, Capell?n sees a bright future for the shared border. “When a new path is open, others follow,’’ he said. “This is just a seed. Let’s see what it grows into.” The Grupo M plant, across the border from the Dominican city of Dajab?n, is about a two-hour drive from Santiago, where the company is headquartered. The cloth comes from the United States or the Dominican Republic, is cut in Santiago and then transported across the border. Here, it is sewn together and labelled with tags that say, “Made in Haiti. Finished in Dominican Republic.’’ The jeans sewn in Ouanaminthe are transported to Santiago for washing and final packing before being shipped to the United States. Currently, the plant produces about 8,000 pairs of black Levi’s 505 and 550 jeans each week with about 260 employees, who earn an average of about $16 per week. That is almost twice as much as Haiti’s minimum wage of less than $1.75 a day, but about 40 percent less than what Dominican employees earn at the facility in Santiago, Capell?n said.

Plans call for hiring as many as 900 Haitian employees to churn out 100,000 pairs of pants a week by next summer. Luis Gil a supervisor at the Ouanaminthe plant said weekly salaries will increase to about $24 per week with the rise in production. Employees say that while wages are good by Haitian standards, they are still not enough to live on comfortably. “I’m working to support my mother, who is sick,” said Carlos Dumone, 19. “The money I earn here helps, but it’s only enough to pay for food. I want to go to school and make something of myself, but I can’t afford that right now. “The good thing about working here is that the employers respect us,’’ Dumone added. “I just wish the pay was higher.’’ Joseph Egains, 27, left his job as a teacher in Ouanaminthe to sew pants. “I like this job better, but life has gotten more expensive in Haiti,’’ said Egains, whose salary doubled with the new job. “Maybe things will get better with time.” In addition to Levi Strauss & Co products, the company also makes a long list of clothing for designer labels such as Tommy Hilfiger, Eddie Bauer, Polo and Hugo Boss. The free trade zone on the border, one of about 50 in both countries, was inaugurated last year at a ceremony attended by Aristide and his Dominican counterpart, Hip?lito Mej?a.

Plans call for the construction of up to 14 buildings on land allocated by the Haitian government. A total of 95 people, including 56 landowners, were displaced by the project. Compensation for the group totalled more than $60,000. Authorities hope that international loans will underwrite a seven-year social development project in Ouanaminthe that includes new houses for some of the displaced residents. Others have opted for a new plot of land for farming. “Many don’t want a house,’’ said Victoria Lora, who is in charge of the social programme. “They would prefer to have money to fix their own homes or a piece of land to farm. We’re working to accommodate their requests.’’