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I. General Information

1. The Issue

Haitian rice which is most likely of West African origin has been cultivated in Haiti for over 200 years. Rice is the staple food of Haiti and up until the 1980s Haiti was self-sufficient in its production. In the mid-1980s Haiti's domestic rice production decreased rapidly. By the1990s rice imports outpaced domestic rice production. This displaced many Haitian farmers, traders, and millers whose employment opportunities are extremely limited. Two factors are identified as being the most significant causes for the decline in Haitian rice production: the adoption of trade liberalization policies and environmental degradation.The trade liberalization policies at their center have involved the lowering Haiti's lowest tariffs on rice imports. Currently the rice import tariff is 3%, which is much lower than rice import tariffs of all other nations in the Caribbean Community. The Haitian market is now flooded with US rice imports ("Miami rice") and some have accused the US of dumping its rice in Haiti. The impact of the decline of rice production in Haiti has been devastating to its rural population which is already desperately poor.

2. Description

Introduction

Haiti was once a self-sufficient rice producer, importing little to none of the rice consumed by its population every year. Yet, since the 1980s, rice production in Haiti has collapsed, threatening the economic well-being of Haitian rice farmers and tens of thousands of others who participate in the cultivation, processing, and sale of Haitian rice. Though this decline can be blamed on a variety of causes including the poor condition of Haiti's natural environment, and several other factors that have handicapped Haitian farmers ranging from lack of access to capital, to the poor conditions of irrigation canals, trade liberalization policies are at the center of this phenomenon. Since the adoption of trade policies that have made Haiti the most "open" to trade of all the Caribbean nations, large amounts of cheap American rice imports have entered the Haitian market. Though most people engaged in the debate over trade liberalization in Haiti agree on this point, the different camps come to very different conclusions on what the collapse of rice production means for the Haitian people. This case study will provide some descriptive information on Haitian rice and will include a discussion of the causes of production decline, the impact of this decline, and propose a potential remedy.

Origins of Rice in Haiti

Along with corn, cassava, millet, and fruit, rice is a major element of the contemporary Haitian diet[1]. It was unknown in Haiti however, during the days of the Taino, the original inhabitants of Haiti. The Taino people's staple food was yucca, better known as cassava or tapioca (in a processed form)[2]. In fact cassava is still eaten in Haiti today. It is still prepared using the method developed by the Tainos. The Taino diet also consisted of meat from small mammals and fish.[3].

It was once believed that the Europeans brought rice to the island, but this theory is disputed in Professor Judith Carney in her book Black Rice: The African Origins of Rice Cultivation in the Americas. Professor Carney discusses West African cultivation of rice prior to their enslavement by Europeans. There is also evidence that some West Africans brought certain varieties of rice with them to the Americas and cultivated the crop both for European plantation owners and in private gardens for their own consumption. Those this book focuses on rice cultivation in the Southern United States, Haitians are also descended from a mixture of mostly West African people and it is therefore possible Haitian rice is of West African origin.

Characteristics of Haitian Rice

Different Varieties and Their Cultivation

Two types of rice are grown in Haiti: mountain and swamp rice. The mountain rice varieties are subsistence crops, they are consumed by the farmers who produce the crop to meet the needs of their families. The swamp rice varieties are produced for consumption in the urban areas. The swamp varieties are grown in rice paddies in the Artibonite Valley. The mountain rice varieties are grown in the Plaine du Nord, Leogane, and some of the southern regions of the country[4]. Swamp rice varieties include blan (white), jaun (yellow), chojdé, madam gougousse, la crête, and rexoro. The mountain rice varieties include duriz leogane and tejizia. These indigenous rice varieties are known to be more nutritious than the US rice imports which have replaced them. The madam gougousse and la crête Varieties are of superior quantity. Haitian rice farmers have specialized in their production in recent years because their production has a higher profit margin than the other Varieties

Consumption

Rice is generally preferred over corn and millet, among both rural and urban populations and is consumed on a daily basis. In the past, the urban population of Haiti consumed the higher quality varieties of indigenous rice; the wealthy, urban dwellers consumed the swamp varieties while the rural population consumed the mountain varieties. This situation has changed dramatically. With the flood of cheap, imported rice into the Haitian market, both the urban and the rural population are consuming large quantities of imported rice.

How it is Prepared

Rice is prepared a number of ways in traditional Haitian cuisine. Most commonly it is prepared as part of the main course of the meal and eaten with beans. Another favorite is when it is boiled in water in which the fungus called "djon djon" was previously soaked, causing the rice to turn black and to take on the distinct flavor of djon djon. It is also used to make rice pudding, which is a favorite dessert of many Haitians.

Decline of Rice Production in Haiti

Up until the 1980s, Haitian rice farmers produced the great majority of the rice consumed in Haiti. This situation which changed rapidly in the mid-1980s intensified dramatically in the mid-1990s. During this time period, total rice consumption increased in response to population growth, which was to be expected. Also during this time period, the percentage of rice imports consumed increased and overshot domestically produced rice in the mid-1990s (see Graph 1 and Table 1). US rice imports which are called "Miami rice" (because rice, like most US exports to Haiti are shipped from the major port in Miami, Florida) now make up the majority of all rice consumption in Haiti

.

Table 1: Haiti Rice Production and US Rice Imports, 1985 - 2000
in Metric Tons [5]
Year		Local Rice Production		US Rice Imports		Total*
1985		163,296		7,337		170,633
1986		163,296		24,683		187,979
1987		183,254		100,177		283,431
1988		166,018		54,465		220,483
1989		117,936		79,265		197,201
1990		116,122		112,987		229,109
1991		114,307		106,495		220,802
1992		112,493		126,885		239,377
1993		116,000		136,489		252,489
1994		100,000		87,766		187,766
1995		89,000		191,722		280,722
1996		115,000		167,116		282,116
1997		160,000		172,742		332,742
1998		101,300		183,678		284,978
1999		100,000		215,197		315,197
2000		130,000		219,590		349,590
Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics, Haitian Ministry of Agriculture, Food and Agricultural Organization, Bank of the Republic of Haiti
*This total does not include rice imports from countries other than the US. Haiti has imported small amounts of rice from other countries.

 

Trade Liberalization

Import tariff reduction is a critical piece of the trade liberalization policies that are strongly advocated and many times mandated by international financial institutions like the International Monetary Fund (IMF) and the World Bank in the loan packages they negotiate with developing countries. In 1994 the Haitian government entered into a new agreement with the IMF that contained a "medium-term structural adjustment strategy" which "included sweeping trade liberalization measures."[6] In 1995 when this agreement went into affect, Haiti's tariffs on rice imports were cut dramatically from 35% to the current level of 3% (the bound tariff on rice imports is 50%)[7]. By comparison, the Common External Tariff on rice in the CARICOM (Caribbean Community) zone for rice in 1999 was 25%[8].

Haiti's extremely low import tariff on rice is part of the trade liberalization policies which earned it a score of 1 on the IMF's 1999 Index of Trade Restrictive ness, making Haiti the least trade restrictive country in the Caribbean [9]. Yet, in the almost 10 years that have passed, Haiti has also remained the least developed country in the Caribbean despite its openness to trade, critics of trade liberalization have been quick to point out. Following the adoption of these policies local production of rice in Haiti dropped dramatically. Though most people engaged in the debate over trade liberalization in Haiti agree on this point, the different camps come to very different conclusions on what the collapse of rice production means for the Haitian people.

Rice import tariff reductions in Haiti has made it more difficult for local rice producers to compete with imports. An article published in 1999 after evaluating agricultural and food price policy in Haiti concluded that "reducing tariffs on both rice and corn, decreased retail and farm prices and increased consumption and imports."[10] This is also confirmed by the IMF which in a report 2001 states "Trade liberalization has contributed to a large increase in imports of rice. At the same time, domestic production has gone down substantially."[11]

Some argue that the resulting flood of relatively cheap rice imports originating mostly from the United States has had a negative impact on Haiti. The decline in the demand for Haitian rice has been devastating to an already desperate rural population. Rice farmers are some of the most vulnerable members of the population; the alternative employment options for farmers in Haiti are extremely limited.

Furthermore, competition between Haitian and American rice growers is not exactly fair. While US rice production is "subsidized through a variety of mechanisms"[12], the small, struggling domestic rice industry in Haiti receives no support from the government. Rice farmers do not receive export subsidies or other types of domestic support. According to Mark Weisbrot, Co-Director of the Center for Economic and Policy Research in Washington, "You can't expect a country like Haiti to compete on world markets immediately. If you look at those countries that have succeeded in dramatically increasing their per capita incomes -- countries like Japan, South Koreas, and Taiwan -- you will find hey all did it under some kind of protection."[13]

Several Haitian and international NGOs have claimed that the US is guilty of dumping rice in Haiti. The US now dominates the rice market in Haiti. Most American rice exports are handled "by a single US corporation -- American Rice Inc. -- which has enjoyed an almost monopolistic position in Haiti."[14] The Haitian government should investigate if US companies are selling rice at a "fair" price. Click here for a more detailed discussion of US rice dumping in Haiti.

Advocates of trade liberalization believe that lowering rice tariffs has benefited Haitian society. A 1999 study on agricultural and food price policy in Haiti found that the lower retail price of rice which resulted from the lowering of rice tariffs meant that consumers in the urban areas are better off.[15]. Furthermore IMF officials have stated that "because of the influx of cheap American rice, food prices have remained fairly stable."[16] In the 2001 Haiti country report, the IMF expresses its doubts that raising import tariffs would reverse the decline in domestic rice production. It states that "the supply response of rice producers to higher prices is long and uncertain."[17]

Environmental Degradation and the Decline of Rice Production in Haiti

There is a strong link between agricultural production and environmental degradation in Haiti. Unsustainable agricultural cultivation techniques that are designed to maximize crop yields with little regard for soil conservation are the norm in Haiti. As a result, soil erosion has become a very large problem in Haiti. The soil erosion problem has in turn decreased the productivity of the land. In order to meet the increasing food demands of the nation in the face of decreased agricultural productivity, Haitian farmers have employed even more land intensive, unsustainable cultivation techniques which have accelerated soil erosion. This vicious cycle has been on going for over 200 hundred years. In addition deforestation and decreased rainfall have had a profoundly negative impact on agriculture.

Haiti was solely populated by a small group of indigenous people called the Taino up until the 1500s. They, employed agricultural cultivation techniques that had only a minimal impact on the land (they left the tropical forest virtually untouched and employed techniques that are credited with preserving good soil health). The Tainos system of agriculture was also virtually maintenance free. "They raised their crops in a conuco, a large mound which was devised especially for farming. They packed the conuco with leaves to protect from soil erosion and fixed a large variety of crops to ensure that something would grow."[18] With the arrival of the Europeans (starting with Columbus in 1492 that was followed by settlers in the 1500s), the genocide which wholly destroyed the Taino people of Haiti, and the arrival of Africans to the island, the situation changed.

With the settlement of the Spanish and later the French colonists, the plantation system and export-oriented agriculture were established in Haiti. In the 1600s the Europeans established sugar plantations, all over the Caribbean including Haiti which tasked the fragile ecosystems of the Caribbean islands. For the next 200 years "sugar radically impoverished the vegetation" of the countries in which is was produced, "permanently impoverishing the island's resource base."[19]. Haiti was one of the largest producers of sugar during the colonial period. Unfortunately the newly independent Haiti's peasant farmers continued to farm the weakened land in a manner that was unsustainable after the Haitian revolution.

Peasant farming contributed significantly to soil erosion and the loss of soil fertility in Haiti.[20]. The political and economic isolation of the nation after its independence and the poverty that persisted pushed the peasantry into more and more marginal land as they tried to produce enough crops to meet their subsistence needs as for export. Large chunks of marginal land were cleared to make way for peasant agriculture which has contributed substantially to the soil erosion problem in Haiti. In addition bauxite was mined in Haiti. The exploitation of this non-renewable mineral caused more deforestation and land clearing than any other natural resource based activity in in second half of the 20th century.[21] The land is now largely deforested and has suffered a decline in annual rainfall. Click here for a more detailed discussion on the connection of agricultural practices and environmental problems in Haiti.

Other Factors

In addition to the above mentioned factors, the decline in rice production has also been influenced by some obstacles faced by Haitian farmers. These obstacles are universal to the experience of the farmers in the least developed countries of the world. They are beyond the scope of the trade and environment database of which this case study is a part of so I have decided not to focus on them. They include:

The Impact

Over two-thirds of the Haitian population is engaged in or dependant upon agricultural production. Rice farmers, millers, and those engaged in rice trade constitute a population in the hundreds of thousands. Their displacement threatens the health of the Haitian economy and society, which already suffers from high unemployment and massive poverty (see Table 2). An evaluation of agricultural and food price policy in Haiti by Eric Icart and James Trapp in 1999 concluded that as import tariffs on rice and corn were reduced, "the level of farm income declined because of negative impacts on rural incomes."[22].

Table 2: Haiti - Rice Production Statistics [23]
No. of farming families engaged in rice production (cultivation and processing)	93,000 families (20% of the population)
Other groups are involved in the rice sector	-supplemental agricultural workers (these are thought to number approximately 22,000) -local traders (approximately 8,000), often the farmers' wives who buy paddy, dry it and then mill it. -millers (approximately 400) who carry out the processing of paddy to produce white rice -urban 'Sarahs' (an estimated 300 in number) who are the link between the growing areas and the major urban markets, where they sell the white rice to retail traders.
Change in rice production	Local rice production decreased from more than 110,000 tons in 1985 to around 80,000 tons in 1995

 

Rice farmers have few alternatives when they have to abandon rice cultivation because they can no longer earn enough money from their crops to meet the subsistence needs of their families. Some farmers cultivate other crops. Many farmers find that they are unable to cultivate alternative crops and abandon their land. They either move to a city (the capital city Port-au-Prince as the preferred destination) or immigrate to surrounding nations in the Caribbean, Central and South America, or the United States.

Those who relocate to cities attempt to find work in the few factories of the country. Often work is very difficult to find. More likely new arrivals to the major cities from the rural areas enter the informal workforce, petty commerce, or are unable to find employment and join the ranks of the destitute. In an article feature in the Miami Herald on this issue, Henri Bazin, head of the Haitian Economists Association and a former IMF employee stated "cheap imports and the government's failure to support peasant farmers is driving them off the land and into the cities to burgeoning slums." [24]

Former rice farmers who chose to immigrate to other countries take greater risks than those who choose to remain in Haiti. It is difficult to secure a work visa to another country for the vast majority of rural poor Haitians. Most of them engage in illegal immigration and are put in serious danger when they flee Haiti. This danger is pronounced for those who attempt to enter the United States. The journey by boat is extremely dangerous and many are killed at sea. In one instance in 2000,

...several dozen impoverished rice-growers and their families decided they could bear life in Haiti no longer. They pooled their meager savings, bought a rickety boat and headed northward to the British-administered Turks and Caicos Islands. Halfway into the 150-mile trip, the vessel capsized, killing all 60 on board.

"We are mourning now, because we lost so many members of our families," said Emince Bernard, one of the villagers who remained behind, and who heard about the disaster on the radio." But the same thing is going to happen over and over again, because the people here no longer have any hope."[25]

Those who are able to immigrate to other nations face a difficult life where they often work in the informal or underground economy, barely earning a wage to meet their subsistence needs. They are often victimized in the destination country because of their illegal status.

The experience of Muracin Claircin, a displaced Haitian rice farmer is summed up in the following quote:

Muracin Claircin sold his plot of land, left his wife and two children, and paid US $1,000 for a place on a boat to take him to the United States. 'I had to do this because I could no longer support my family by growing rice,' he explains.

After a tortuous week drifting at sea without enough food or water, the captain told them they would have to turn back because the ship's compass was broken. Now back with his family, Muracin has neither money nor land and says that, given the opportunity, he would try again. He still cannot make a living from rice farming.

'There's no incentive to grow rice anymore. It's virtually impossible to make a profit,' Muracin Claircin says. [26]

Conclusion

By the1990s rice imports outpaced domestic rice production, displacing many Haitian farmers and secondary agricultural workers with few employment opportunities. Haiti's adoption of trade liberalization policies and its environmental problems have played significant roles in the collapse of domestic rice production. These trade liberalization policies at their center have involved the lowering Haiti's tariffs on rice imports. Currently the rice import tariff is 3%, which is much lower than rice import tariffs of all other nations in the Caribbean Community. The Haitian rice market is now flooded with "Miami rice" from the US and some have accused the US of dumping its rice in Haiti.

This case demonstrates how often trade liberalization can have devastating consequences for the rural populations of the developing world. Haiti is now the least trade restrictive country in the Caribbean, but in spite of this openness to trade, Haiti remains the poorest country in the Caribbean. While those in the pro-liberalization camp believe these policies are more helpful than hurtful to Haiti because they have lead to a decrease in the price of rice, this decrease in the price of rice has benefited mostly the relatively wealthy, urban population of the country. Liberalization has been very hurtful to the rural poor who are finding it impossible to earn a decent living in rice production.

 

3. Related Cases

4. Author and Date

Josiane Georges, May 2004

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II. Legal Clusters

5. Discourse and Status: Disagreement and In Progress

Both Haiti and the US are members of the World Trade Organization. Haiti has been a member of the WTO since 1996 [27]. The Haitian government could potentially launch a complaint against the US with the World Trade Organization for violating the Anti-dumping Agreement negotiated during the WTO's Uruguay Round. The "Agreement on the implementation of Article VI [i.e. 6]of the General Agreement on Tariffs and Trade 1994," allows governments to act against dumping where there is genuine (“material”) injury to the competing domestic industry by imposing [28].

Dumping is defined as a situation of international price discrimination, where the price of a product when sold in the importing country is less than the price of that product in the market of the exporting country. "Thus, in the simplest of cases, one identifies dumping simply by comparing prices in two markets. However, the situation is rarely, if ever, that simple, and in most cases it is necessary to undertake a series of complex analytical steps in order to determine the appropriate price in the market of the exporting country (known as the "normal value") and the appropriate price in the market of the importing country (known as the "export price") so as to be able to undertake an appropriate comparison"[29] In order for the Haitian government to successfully show that US companies are dumping rice in Haiti, "calculate the extent of dumping (how much lower the export price is compared to the exporter’s home market price), and show that the dumping is causing injury or threatening to do so." [30] Engaging in this type of action will require lengthy investigations into the US rice industry. "Member countries must inform the Committee on Anti-Dumping Practices about all preliminary and final anti-dumping actions, promptly and in detail. They must also report on all investigations twice a year. When differences arise, members are encouraged to consult each other. They can also use the WTO’s dispute settlement procedure."[31]
This will require time and resources probably beyond what that Haitian government can devote to this issue at this time.

6. Forum and Scope: WTO and Bilateral

Haiti's import tariffs on rice are affected by several trade agreements and institutions. Haiti is a member of Caribbean Community (CARICOM), a regional body that is attempting to create a single market and economy among Caribbean states[32]. Haiti became a full Member of the Caribbean Community (CARICOM) on 3 July 2002 and the Haitian Government adjusted its tariffs in accordance with the CARICOM's common external tariff (CET) in October 2003[33]. Haiti is also a member of the African Caribbean Pacific Group of States (ACP). Yet these regional trade organizations are not the appropriate forum in which Haiti since the disputing party, the United States, is not a member of these groups.

As a member of the WTO, Haiti has attempted to bring its trade policies in line with WTO agreements. In reference to the Agreement on Agriculture negotiated during the Uruguay Round, Haiti provides no export subsidies to its agricultural sector[34] and in fact offers no domestic support for agriculture[35].

To date Haiti has never been a party to a trade dispute in the WTO. And though Haiti has not yet incorporated the Anti-Dumping Agreement into its domestic policies[36], the Unites States has done so.

7. Decision Breadth: 2 States - U.S. and Haiti

If the WTO sides with Haiti, it could allow Haiti take anti-dumping action against US rice imports. Anti-dumping action means that Haiti would be allowed to charge an extra import duty on the particular product (in this case rice) from the particular exporting country (in this case the US) in order to bring its price closer to the “normal value” or to remove the injury to domestic industry in the importing country[37]. This would help Haiti protect its domestic sector while not violating the terms of its agreement with the IMF and World Bank. In 1994 the Government of Haiti signed a structural adjustment agreement with the International Monetary Fund and the World Bank which called for the rapid liberalization of agriculture and lowered Haiti's tariffs on rice imports to the current rate of 3%[38].

8. Legal Standing: Treaty

 

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III. Geographic Clusters

9. Geographic Locations

a. Geographic Domain: North America

b. Geographic Site: Southern North America

c. Geographic Impact: Haiti

Haiti is located on the Western one-third portion of the island of Hispanola where it shares a border with the Dominican Republic. Hispanola is located in the Caribbean sea between the parallels of 17° 39' and 19° 58' north latitude, and meridians 68° 20' and 74° 30' west of Greenwich [39]. In addition to the main island, Haiti is made up of smaller islands including: Île de le Gonâve located in the Golfe de le Gonâve, west of the main island, Île de la Tortue to the north, Île-à-Vache in the south, and a series of small islands off the southern peninsula called the Cayemite islands.

Hispanola has 3 close neighbors; it is 70 miles southeast of Cuba, 130 miles northeast of Jamaica, and is 60 miles west-northwest of Puerto Rico[40]. It is part of the Greater Antilles; Hispanola is the second largest island in the Caribbean (second only in size to Cuba).

Haiti has a total land areas of 27,750 sq km [41]. It is slightly smaller in the size than the US state of Maryland and the nation of Belgium [42].

10. Sub-National Factors: Yes

11. Type of Habitat: Tropical

Haiti's climate is typical of a tropical island; the temperature is warm all year round (ranging from an annual average 66° in the mountains to 81° at sea level) [43]. It has two rainy season, one in the spring and the other in the autumn. The plains receive a relatively large amount of rainfall throughout the year. A semiarid region exists in where the mountains of Haiti cut off the trade winds[44]; this is located in the northern portion of the island.

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IV. Trade Clusters

12. Type of Measure: Import Tariffs

Import tariff reduction is a critical piece of the trade liberalization policies of the Haitian government. In 1995 Haiti's tariffs on rice imports were cut dramatically from 35% to the current level of 3% (the bound tariff on rice imports is 50%). By comparison, the Common External Tariff on rice in the CARICOM (Caribbean Community) zone for rice in 1999 was 25%.

13. Direct v. Indirect Impacts: Direct

Rice import tariff reductions in Haiti has made it more difficult for local rice producers to compete with imports. An article published in 1999 after evaluating agricultural and food price policy in Haiti concluded that "reducing tariffs on both rice and corn, decreased retail and farm prices and increased consumption and imports."[45] This is also confirmed by the IMF which in a report 2001 states "Trade liberalization has contributed to a large increase in imports of rice. At the same time, domestic production has gone down substantially."[46] In 1985 Haiti imported approximately 7,337 tons of rice while Haitian farmers produced the over 150,000 tons of rice required to meet the consumption needs of the entire nation (see Graph 1 and Table 2). In the 1990s this trend had changed dramatically.

 

14. Relation of Trade Measure to Environmental Impact:

a. Directly Related to Product: Yes, Rice

b. Indirectly Related to Product: No

c. Not Related to Product: No

d. Related to Process: No

15. Trade Product Identification: Rice

16. Economic Data

Haiti is categorized as one of the least developed countries (LDC) because of its extreme poverty as evidenced by its low GDP per capita and other troubling economic indicators such as its large trade imbalance (see Table 3). And though the agricultural sector continues to generate smaller portions of GDP (in 1997 agriculture accounted for 23.3% of GDP down from 32% of GDP it generated in 1993) and agricultural production has been stagnant for many years, the agricultural sector continues to employ most of the labor force in Haiti. Two-thirds of the Haitian labor force works in the agricultural sector. Most of Haiti's population (70% - 80%) resides in the rural areas.

 

 

17. Impact of Trade Restriction: High

Imposing a trade restriction, even a small increase in rice import tariffs would help protect Haiti's domestic rice production. The price difference between rice imports and domestic varieties are narrowing. This is evidenced by comparing the price of rice imports and the Mme Gougousse rice, which is a high quality Haitian rice variety. In the mid-1990s there was a significant difference in the prices of imported rice and Mme Gougousse rice. By 1998 this narrowed significantly (see Graph 2 and Table 4). Therefore, even a small tariff on rice imports would greatly improve the ability of Haitian rice farmers to compete with US rice farmers.

 

Table 4: Price Comparison of Local Variety to Imported Rice [48]
Rice		Fiscal Year
		1993	1994	1995	1996	1997	1998	1999	2000
Mme Gougousse		2.2	4.2	5.8	8.4	7.2	6.2	6.7	7.3
Imported		2.2	3.7	3.7	5.4	5	5.6
Source: Haitian Institute of Statistics, Bank of the Republic of Haiti

 

18. Industry Sector: Agriculture

 

19. Exporters and Importers: US and Haiti

Haitian rice is not exported; local rice farmers who have been supplying rice solely to the domestic market for decades are losing their share of this market to cheaper imports. Though Haiti was once self sufficient in rice production a few decades ago, it is now heavily dependent on imports. Currently Haiti is the second largest importer of rice among Central American and Caribbean states (see Table 5). When compared to North American states it is revealed that Haiti imports more rice that Canada (see Table 6).

The true nature of Haiti's dependence on rice imports is revealed when examining the rice imports per capita. Haiti currently imports 39.85 thousand metric tons per 1 million people (see Table 7). This makes Haiti second in per capita rice imports only to Cuba amongst North American, Central American, and Caribbean nations (see Table 8). Furthermore Haiti ranks 5th amongst the world's top 10 rice importers per capita.

Leading Global Importers and Exporters of Rice

The following ten countries are the largest importers of rice: Indonesia, Iran, Iraq, Nigeria, Saudi Arabia, Brazil, Senegal, Japan, Cote d'Ivoire, and South Africa. With the exception of only Japan they are all developing countries. Their combined rice imports total 11,350 thousand metric tons and on average they import 1,589.4 thousand metric tons.

The following ten countries are the largest exporters of rice: Thailand, Vietnam, India, United States, China, Pakistan, Uruguay, Egypt, Burma, and Australia. They currently export a total of 24,200 thousand metric tons of rice and on average they export 2,732.17 thousand metric tons each. The United States, which is Haiti's largest trading partner, is also its largest source of rice imports. As of 2000 the US exported "more than 200,000 tons [of rice] a year, making [Haiti]… the fourth-largest market for American rice in the world after Japan, Mexico, and Canada." [49]

Import and Export Data Charts [50]

Table 5: Rice Imports by Country - Central American & Caribbean Region  (top 5 importers only)
Country	Amount (1,000 metric tons)
Cuba	550
Haiti	300
Costa Rica	100
Honduras	600
Nicaragua	100
Total	1,150
Weighted Average	290.63

 

Table 6: Rice Imports by Country in North America (Compared to Haiti)
Country	Amount (1,000 metric tons)
Canada	250
Haiti	300
United States	435
Mexico	600
Total	1,585
Weighted Average	458.76

 

Table 7: Rice Imports by Country Per Capita in North America (Compared to Haiti)
Country	Amount (1,000 metric tons per 1 million people)
Canada	7.76
Haiti	39.85
United States	1.49
Mexico	5.71
Weighted Average	3.64

Table 8: Rice Imports by Country Per Capita - Central American & Caribbean Region  (top 5 importers only)
Country	Amount (1,000 metric tons per million people)
Cuba	48.83
Haiti	39.85
Costa Rica	25.66
Honduras	14.99
Nicaragua	19.49
El Salvador	11.59
Weighted Average	29.91

 

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V. Environment Clusters

20. Environmental Problem Type: Habitat Loss

Rice production and trade in Haiti is affected and influenced by a number of environmental factors. Haiti is a mountainous country that has a relatively small amount of arable land. A significant portion of Haiti's arable land is being lost every year because of the interrelated environmental problems of deforestation, soil erosion, and decreased rainfall which have all come about because of unsustainable agricultural practices dating back to the agricultural systems established by European settlers and the peasant agriculture which followed. This lost of productive land has intensified stagnation in the agricultural sector, which has lead to the adoption of more intensive, unsustainable agricultural practices which intensify the environmental problems. "Approximately 15,000 hectares of cultivated land have been lost to erosion yearly."[51]. Haiti is caught in a vicious cycle connecting environmental degradation, poverty, and agricultural stagnation.

Haiti has been through deforested. Its original forest covered 93% of the country, today 3% of that forest remains (see Table 9). In 1873 Samuel Hazard wrote that Haiti's mountains "with occasional exceptions" are covered with "vegetation of some sort, but principally of the most valuable kinds of tress."[52] Many of those trees mentioned were cleared to make way for sugar cultivation by the Europeans by the mid-seventh century[53]. Lumber was also shipped to Europe (which had been all but completed deforested by this point) for commercial purposes. Later when steam power emerged as the dominant source of power for sugar mills, the forests were depleted so that they could serve as fuel for the mills[54]. Following the Haitian revolution, the plantation system was destroyed, the land was divided into small portions which was owed and cultivated by the peasantry. Constrained by the relatively small amount of arable land apportioned to them, these small farmers cultivated marginal land on the mountains. Over time the use of intensive, unsustainable agricultural practices emerged as the Haitian peasantry has tried to meet its growing subsistence needs in the face of growing population pressures and decreasing soil productivity.

 

Table 9: Haiti - Environmental Statistics - Forest [55]
Total forest area	88000 ha
Natural forest area	68000
Plantations area	20000
Change in forest area (1990-2000)	Total: -44% Natural: -53% Plantations 5%
Original forest as percent of total land area	93%
Forest area as percent of total land area	3%
Total land area	2775
Percent of total land area covered by	Forest 12% Shrublands, savanna, and grasslands 29% Cropland and crop/natural vegetation mosaic 42% Urban and built-up areas 0.1% Wetlands and water bodies 16%

 

Table 10: Haiti - Environmental Statistics - Water Resources [56]
Surface water produced internally	11 cubic km
Groundwater recharge	2 cubic km
Total internal renewable water resources	13 cubic km
Per capita internal renewable water resources	1,549 cubic meters (2001)
Total water withdrawals	1 cubic km
Withdrawals per capita	139 (cubic m) (1991)
Withdrawals as a percentage of actual renewable water resources	8.3%  (1991)
Withdrawals by sector (% of total)	agriculture 94% (1991) industry 1% domestic 5%

 

Table 11: Haiti - Some Additional Statistics [57]
Area	total: 27,750 sq km land: 27,560 sq km water: 190 sq km
Climate	tropical; semiarid where mountains in east cut off trade winds
Terrain	mostly rough and mountainous
Land use	arable land: 20.32% permanent crops: 12.7% other: 66.98% (1998 est.)
Irrigated land	750 sq km (1998 est.)
Environment - current issues	extensive deforestation (much of the remaining forested land is being cleared for agriculture and used as fuel); soil erosion; inadequate supplies of potable water
Environment - international agreements	party to: Biodiversity, Climate Change, Desertification, Law of the Sea, Marine Dumping, Marine Life Conservation, Ozone Layer Protection signed, but not ratified: Hazardous Wastes, Nuclear Test Ban

 

21. Name, Type, and Diversity of Species: Not applicable

22. Resource Impact and Effect: High and Structural

The massive deforestation and unsustainable agricultural practices that have contributed to two problems which threaten the cultivation of rice as well as other crops: soil erosion and a drop in rainfall. The land in the Artibonite where most of the rice is grown, is becoming more dry and less productive every year. This trend seems unlikely to change given the structural reasons maintaining the environmental crisis in Haiti.

In an article published in 2001, Dr. Elizabeth Thomas-Hope summed up the findings of her study on the connections between economic development and the environment in Haiti as follows:

Haiti... not only demonstrated a downward cycle of environmental and economic trends, but also the role of governance in the generation and reinforcement of the relationship between the options available in the environmental resource base and the economic decisions. The characteristics of governance have impacted upon the interrelationship of environment and economy at all levels of scale, from the household to national government, with intervening factors involving access to markets, issues of resource ownership, and the capacity to effectively manage both human and environmental resources.[58]

It seems unlikely that Haiti's government, with its weak institutions will be able to address the country's environmental problems under current conditions.

23. Urgency and Lifetime: Medium and Decades

24. Substitutes: Corn, Millet, Sourghum

 

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VI. Other Factors

25. Culture: Yes

The collapse of Haitian rice production has had an impact on the culture of Haiti. The rural life is changing as Haitian rice farmers are being forced to leave their land for cities or to immigrate to other countries. The Haitian diet has now been altered, indigenous rice varieties, most of which were known to be more nutritious,and of an overall higher quality than the Miami rice, are now difficult to acquire.

26. Trans-Boundary Issues: No

27. Rights: No

28. Relevant Literature

ADP: Dumping in the GATT/WTO [webpage]; http://www.wto.org/english/thewto_e/whatis_e/eol/e/wto04/wto4_4.htm#note1 [Accessed 3 May 2004].

Aristide, Jean-Bertrand. Eyes of the Heart: Seeking a Path for the Poor in the Age of Globalization. Monroe, ME: Common Courage Press, 2000.

Carney, Judith Ann. Black Rice: the African Origins of Rice Cultivation in the Americas. Cambridge, Mass: Harvard University Press, 2001.

Citizenship and Immigration Canada. Haiti - A Cultural Profile: Eating the Haitian Way. [web page]; http://www.settlement.org/cp/english/haiti [Accessed 25 April 2004].

Celine Charveriat and Penny Fowler, Oxfam International. Rice Dumping in Haiti and the Development Box Proposal. [web page] March 2002; http://www.tradeobservatory.org/library/uploadedfiles/Rice_Dumping_in_Haiti_and_the_Development_Box_.htm [Accessed 10 February 2004].

Corbet, Bob, "Haiti: Overview Paper on Taino Arawaks." [web page]; http://www.webster.edu/~corbetre/haiti/history/precolumbian/tainover.htm [Accessed 3 May 2004].

Christian Aid, "Trade Justice Campaign Case Study - Haiti: Rice." [web page] November 2000. http://www.christianaid.org.uk/campaign/trade/stories/haiti.pdf [Accessed 24 January 2004].

CIA Factbook. Haiti [web page] 2003; http://www.cia.gov/cia/publications/factbook/geos/ha.html [Accessed 24 January 2004].

Dobbs, Michael. "Free Market Left Haiti's Rice Growers Behind." Washington Post: Thursday, April 12, 2003, page A1.

Fass, Simon M. Political Economy of Haiti: The Drama of Survival. New Brunswick: Transaction Books, 1988.

Haitian Information Bureau. "Neoliberalism in Haiti: The Case of Rice Continues." Haiti Progres: This Week in Haiti: Vol. 13, No. 33, pp. 8-14, November 1995.

Hazard, Samuel. Santo Domingo. London: Sampson, Low, Marston, Low & Searle, 1873.

Icart, Eric and James N. Trapp. "Agricultural and Food Price Policy in Haiti." Social and Economic Studies: Vol 48, No.3, pp. 153-172, 1999.

International Monetary Fund (IMF). "Haiti: Selected Issues," IMF Staff Country Report, No. 02/18, Washington, DC: IMF Publication Services, 2002.

_____. "Haiti: Selected Issues," IMF Staff Country Report, No. 01/04, Washington, DC: IMF Publication Services, 2001.

_____. "Haiti: Statistical Annex," IMF Staff Country Report, No. 99/118, Washington, DC: IMF Publication Services, 1999.

_____. "Haiti: Recent Economic Developments," IMF Staff Country Report, No. 98/101, Washington, DC: IMF Publication Services, 1998.

Institute for Food and Development Policy. Haitian and California Farmers [web page] 1996; http://www.foodfirst.org/pubs/backgrds/archive/f96v3n3b.html [Accessed 24 January 2004].

Institute for Food and Development Policy. Harvest of Hunger [web page] 1996; http://www.foodfirst.org/pubs/backgrds/archive/f96v3n3b.html [Accessed 24 January 2004].

Franklin, James. The Present State of Hayti (Saint Domingo) with remarks on its agriculture, commerce, laws, religion, finances and population. London, UK: F. Cass, 1971.

Logan, Rayford W. Haiti and the Dominican Republic. New York, NY: Oxford University Press., 1968.

Lundahl, Mats. Peasants and Poverty: A Study of Haiti. New York, NY: St. Martin Press Inc., 1979.

_____. The Haitian Economy: Man, Land and Markets. London, UK: Croom Helm, 1983.

McGowan, Lisa. Democracy Undermined, Economic Justice Denied: Structural Adjustment and the Aid Juggernaut in Haiti [web page] 1997; http://www.developmentgap.org/haiti97.html [Accessed 24 January 2004].

McMichael, Philip. Food and Agrarian Orders in the World-Economy. Westport, Conn.: Greenwood Press, 1995.

NACLA. Haiti: Dangerous Crossroads. South End Press, Boston, MA, 1995.

NationMaster. [web page] 2004; http://www.nationmaster.com [Accessed 22 March 2004].

Regan, Jane. "Some Areas Really Miss Tariff." Miami Herald: Sunday, October 26, 2003.

Thomas-Hope, Elizabeth. "The Role of the Environment in Caribbean Economic Development." Integration and Trade: Vol. 5, No. 15, pp. 83 - 104. September - December 2001.

Tucker, Richard P. “Five Hundred Years of Tropical Forest Exploitation”. From Head, Suzanne and Robert Heizman. eds. Lessons of the Rainforest. San Francisco: Sierra Club, 1990.

Turck, Mary C. ed. "Haitian Agriculture: Exports, Imports and Food." NAFTA & Inter-American Trade Monitor: Vol. 3 No. 6. March 22, 1996.

World Resources Institute (Earthtrends). [web page] Water Resources and Freshwater Ecosystems--Haiti. http://earthtrends.wri.org/pdf_library/country_profiles/Wat_cou_332.pdf [Accessed 9 February 2004].

World Resources Institute (Earthtrends). [web page] Forest, Grasslands, and Drylands--Haiti. http://earthtrends.wri.org/pdf_library/country_profiles/For_cou_332.pdf [Accessed 9 February 2004].

World Trade Organization. [web page] Committee on Agriculture - Notification - Haiti - Export subsidies (30/03/200). http://www.wto.org/english/thewto_e/countries_e/haiti_e.htm [Accessed 15 March 2004].

World Trade Organization. [web page] Committee on Agriculture - Notification - Haiti - Domestic support (11/05/2000) http://www.wto.org/english/thewto_e/countries_e/haiti_e.htm [Accessed 15 March 2004].

World Trade Organization. [web page] Committee on Anti-Dumping Practices - Notification of Laws and Regulations under Article 18.5 of the Agreement - Haiti (13/03/1998) http://www.wto.org/english/thewto_e/countries_e/haiti_e.htm [Accessed 15 March 2004].

World Trade Organization [web page] Haiti - country information. http://www.wto.org/english/thewto_e/countries_e/haiti_e.htm [Accessed 15 March 2004].

World Trade Organization. [web page] Trade Policy Review Body - Trade Policy Review - Haiti - Minutes of Meeting - Addendum from World Trade Organization. http://www.wto.org/english/thewto_e/countries_e/haiti_e.htm [Accessed 15 March 2004].

World Trade Organization. [web page] WTO, Understanding the WTO - Anti-dumping, subsidies, safeguards: contingencies, etc. http://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm8_e.htm [Accessed 03 May 2004].

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VII. Endnotes

[1] Citizenship and Immigration Canada.
[2] Pané, Fray Ramon, 1999, p. xii.
[3] Corbett, Haiti: Overview Paper on Taino Arawaks
[4] Lundahl, Mats, 1979 p.46
[5] Data compiled from IMF Staff Country Reports numbered 99/118, 01/04, and 02/18, and USDA, FAS website: http://www.fas.usda.gov/ustrade/USTEXBico.asp?QI=
[6] IMF, 2001, p. 43
[7] Charveriat, Celine and Penny Fowler, 2002.
[8] IMF, 2001, p. 43
[9] IMF, 2001, p. 45
[10] Icart and Trapp, p. 165
[11] IMF, 2001, p. 45
[12] Dobbs, Michael. 2000
[13] Dobbs, Michael. 2000
[14] Dobbs, Michael. 2000
[15] Icart and Tripp, p.158
[16] Dobbs, Michael. 2000
[17] IMF, 2001, p. 45
[18] Corbett, Overview Paper on Taino Arawaks
[19] Tucker, 1990
[20] Thomas-Hope, p.88
[21] Thomas-Hope, p.92
[22] Icart and Trapp, p. 157
[23] Celine Charveriat and Penny Fowler, March 2002.
[24] Regan, Jane. 2003.
[25] Dobbs, Michael, 2000
[26] Christian Aid, 2000.
[27] World Trade Organization, Haiti - country information
[28] WTO, Understanding the WTO - Anti-dumping, subsidies, safeguards: contingencies, etc
[29] ADP: Dumping in the GATT/WTO
[30] WTO, Understanding the WTO - Anti-dumping, subsidies, safeguards: contingencies, etc
[31] WTO, Understanding the WTO - Anti-dumping, subsidies, safeguards: contingencies, etc
[32] IMF, 2001, p. 45
[33] IMF, 2001, p. 45
[34] World Trade Organization Committee on Agriculture - Notification - Haiti - Export subsidies (30/03/200)
[35] World Trade Organization - Committee on Agriculture - Notification - Haiti - Domestic support (11/05/2000)
[36] World Trade Organization - Committee on Anti-Dumping Practices - Notification of Laws and Regulations under Article 18.5 of the Agreement - Haiti (13/03/1998)
[37] WTO, Understanding the WTO - Anti-dumping, subsidies, safeguards: contingencies, etc
[38] Celine Charveriat and Penny Fowler, March 2002.
[39] Logan, Rayford W. p. 6
[40] Hazard, Samuel, 1873, p. 3.
[41] CIA Factbook, Haiti Page, 2003.
[42] Logan, Rayford W. p. 6
[43] Logan, Rayford W. p. 8
[44] CIA Factbook, Haiti Page, 2003.
[45] Icart and Trapp, p. 165
[46] IMF, 2001, p. 45
[47] CIA Factbook, Haiti Page, 2003.
[48] Data compiled from IMF Staff Country Reports numbered 99/118, 01/04, and 02/18,
[49] Celine Charveriat and Penny Fowler, March 2002.
[50] NationMaster.com, which gets its data from the United States Department of Agriculture. All data is from 2003/2004.
[51] Icart and Trapp, p. 156
[52] Hazard, Samuel, 1873, p. 4
[53] Thomas-Hope, p. 84
[54] Thomas-Hope, p. 87
[55] World Resources Institute, Forest, Grasslands, and Drylands--Haiti.
[56] World Resources Institute, Water Resources and Freshwater Ecosystems--Haiti
[57] CIA Factbook, Haiti Page, 2003.
[58] Thomas-Hope, p.99

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VIII. Photo and Graphic Credits

#1 IFAD Photos by Franco Mattioli. Source: http://www.ifad.org/photo/region/PL/HT.htm

#2 Photo by Galen R. Frysinger. Source: http://www.galenfrysinger.com/cap-haitien.htm

#3 FAO Photo by G. Bizzarri. Source: http://www.fao.org/NEWS/FOTOFILE/PH9910-e.htm

#4 Winrock International. Source: http://newsletter.winrock.org/march03/

#5 CIA Factbook. Haiti 2003. Source: http://www.cia.gov/cia/publications/factbook/geos/ha.html

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IX. Comments

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