Haiti: All About Economics

CARICOM’s volte face on Haiti, which saw it demanding that the country’s interim Government provide guarantees it would disarm rebels, who overthrew President Jean-Bertrand Aristide, and hold free and fair elections as pre-conditions for its recognition by regional Governments, was dictated by economics. In turn, Trinidad and Tobago’s involvement both in the CARICOM decision and in the delegation of Foreign Ministers which held discussions with interim Haitian Prime Minister, Gerard Latortue, last week on the pre-conditions was governed by this country’s desire to be the headquarters of the proposed Free Trade Area of the Americas (FTAA). Here again the issue of economics has crept in. Should Trinidad and Tobago and the majority of CARICOM Governments refrain from recognising the Latortue Administration and maintain that ousted President Aristide was the only person that the regional body would be prepared to recognise, there was the risk that the interim Haitian Government would withdraw its support of this country for the FTAA headquarters.

The loss of the critical Haitian vote would weaken Trinidad and Tobago’s position in the FTAA headquarters race. The siting of the headquarters here would provide hundreds of millions of dollars in benefits by way of construction; hotel and other accommodation for FTAA staff and visiting officials from member countries of the FTAA; transport, furniture, vehicles, food and beverage imports and/or sales. In addition, Trinidad and Tobago’s expanded international profile would make it easier to market the country as a place in which to invest and to visit, and could lead to an expansion of its exports, in particular its energy based products. There would be the needed spin-off of a higher visibility for CARICOM enabling the group and its products to be readily marketed.

Meanwhile, a rejection of the interim Haitian Government, in the face of its recent tacit recognition by the Organisation of American States, could spur the revival of old suspicions by Spanish and French speaking States of South and Central America and the Caribbean of English speaking CARICOM countries. This could blunt export marketing thrusts which have increasingly been assisted by BWIA’s opening up of new routes to Cuba, the Dominican Republic, Costa Rica and what have you. Whatever the pre-conditions demanded for recognition of Haiti, CARICOM, in particular Trinidad and Tobago, clearly understands that Haiti’s remaining in the regional grouping and supporting this country’s application to be the Headquarters of FTAA will bring needed economic benefits to TT and by extension the region. In turn, should Haiti, with its population of eight million, receive the US$1.3 billion it is seeking in international aid for reconstruction of the country and its economy, it could prove an increasingly important export market for the rest of CARICOM.