[Congressional Record Volume 148, Number 136 (Wednesday, October 16, 2002)]
[Senate]
[Pages S10582-S10583]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DeWINE:
  S. 3123. A bill to expand certain preferential trade treatment of 
Haiti; to the Committee on Finance.
  Mr. DeWINE. Mr. President, I have many long-standing concerns about 
the dire situation, political, economic, and humanitarian, in Haiti. As 
one who has witnessed the unbelievable poverty and despair in that tiny 
nation, I believe we must pay closer attention to what is happening 
there. We must be engaged.
  That is why I am introducing the ``Haiti Economic Recovery 
Opportunity Act of 2002.'' This bill would help improve the economic 
and political situation in Haiti through an important tool of our 
foreign policy, and that is trade. I would like to thank 
Representatives Gilman and others for introducing a similar measure in 
the House.
  The situation in Haiti is bleak. Haiti is the poorest country in our 
Hemisphere, with approximately 70 percent of its population out of work 
and 80 percent living in abject poverty. Less than one-half of Haiti's 
8.2 million people can read or write. Haiti's infant mortality rate is 
the highest in our hemisphere. And, one in four children under the age 
of five are malnourished.
  Roughly one in 12 Haitians has HIV/AIDS, and, according to the 
Centers for Disease Control projections, Haiti will experience up to 
44,000 new HIV/AIDS cases this year, that's 4,000 more than the number 
expected here in the United States, where our population is 35 times 
that of Haiti's. AIDS already has orphaned over 163,000 children, and 
this number is expected to skyrocket to between 323,000 and 393,000 
over the next ten years.
  The violence, corruption, and instability caused by the flow of drugs 
through Haiti cannot be overstated. An estimated 15 percent of all 
cocaine entering the United States passes through Haiti, the Dominican 
Republic, or both.
  Haiti still lacks democracy and political stability. The U.S. policy 
of not providing assistance directly to the Haitian Government is based 
on President Aristide's failure to enact necessary reforms to uphold 
democracy and help the people of his own country.
  All of this creates an environment where the logical course of action 
for many Haitians is simply to flee. We have seen this in the past, and 
we may see it again. So far this fiscal year, the Coast Guard has 
interdicted and rescued over 1,485 Haitian migrants at sea, compared to 
1,113 during the entire fiscal year 2000. And, according to the State 
Department, migrants recently interdicted and repatriated to Haiti have 
cited economic conditions as their reason for attempting to migrate by 
sea. I do not think that a mass exodus is imminent, but we cannot 
ignore any increase in migrant departures from Haiti. In addition to 
being an immigration issue for the United States, these migrant 
departures frequently result in the loss of life at sea.
  The bill I am introducing today attempts to change this situation by 
granting limited duty-free treatment on certain Haitian apparel 
articles if, and only if, the President is able to certify that the 
Haitian government is making serious market, political, and social 
reforms. The bill would correct a glitch or oversight in U.S. trade law 
that recognized the special economic needs of least developed countries 
in Africa, but did not recognize those needs for the least developed 
country in the Western Hemisphere, Haiti.
  Specifically, the bill would allow duty-free entry of Haitian apparel 
articles assembled from fabrics from countries with which the U.S. has 
a free trade or a regional trade agreement. It also would grant duty-
free status on articles, regardless of the origin of the fabrics and 
yarns, if the fabrics and yarns were not commercially available in the 
United States.
  The bill would cap duty-free apparel imports made of fabrics and 
yarns from the designated countries at 1.5 percent of total U.S. 
apparel imports. This limit grows modestly over time to 3.5 percent.
  The enactment of this legislation would promote employment in Haitian 
industry by allowing the country to become a garment production center. 
While the benefits of this bill would be modest by U.S. standards, in 
Haiti they are substantial. It is estimated that the bill could create 
thousands of jobs, thereby reducing the unemployment rate and breaking 
the shackles of poverty. Before the 1991 coup, Haiti was one of the 
largest apparel suppliers in the Caribbean. But today, Haitian apparel 
accounts for less than one percent of all apparel imports into the 
United States.
  The type of assembly carried out in Haiti would have minimal impact 
on employment in the United States. In fact, it would encourage the 
emigration of jobs from the Far East back to our hemisphere, including 
the United States, because most Haitian foreign exchange earnings, 
unlike in the Far East, are utilized to purchase American products. 
And, the ``Trade and Development Act'' already includes strong 
safeguards against transshipment.
  In order for Haiti to be eligible for the trade benefits under the 
bill, the President must certify that Haiti is making progress on 
matters like the rule of law. This will not be an easy task for the 
Haitian government. However, I believe that because of the incentives 
provided in the bill, it would be more and more apparent to them that 
it is in their interest to reform.

[[Page S10583]]

  During my most recent trip to Haiti, I met with President Aristide 
and raised many concerns. I explained that it is essential that he call 
for peace and domestic order, and that he take the necessary measures 
to bring an end to the political impasse. I explained the need to 
cooperate with the opposition, and to work with the Organization of 
American States, OAS.
  I also met with leaders of the opposition and told them that they, 
too, must be willing to compromise and cooperate. I am pleased to see 
that the OAS Special Mission in Haiti is up and running, but I remain 
cautious about the prospects for resolving the political crisis. In the 
meantime, the United States must take responsibility by continuing and 
increasing our humanitarian and trade efforts in Haiti. This is in our 
own best interest, and we have a moral obligation to remain committed 
to the people of Haiti.
  Adopting the Haiti Economic Recovery Opportunity Act of 2002 would be 
a powerful demonstration of that commitment. I encourage my colleagues 
to join in support of this legislation.
                                 ______