Haiti

Overview

• Poorest country in the Western Hemisphere with unemployment over 50%.
• French is the official language, Creole is also spoken
  • literacy rates hover around 50%.
• US-led coalition ousted an illegal military junta in 1994.
• The US is Haiti's largest trading partner representing 60% Haitian of imports.
• Political situation remains tenuous; accusations of election fraud against President Jean-Bertrand Aristide make for trying times.
  • The European Union has decided to block $49 million in aid due to election irregularities. (Information as of 2/19/01)
• Haiti should join the 13 other Caribbean Community (CARICOM) trade bloc countries by summer 2001.

Opportunities

• Electric power generation, transmission and distribution
• Building Products
• Construction equipment and motor trucks
• pharmaceuticals
• Cosmetics/toiletries
• Automotive parts/service equipment
• Computers and components

Marketing Tips

• Haitian law requires the use of agents; to operate without one a foreigner must have a residence permit, a work permit, and a license. 
  • This rule holds for wholesale or retail operations.
• Work day is normally 8:00am to 4:00pm. Many retail business remain open until 7 or 8 pm.
• Proper pricing is critical due to the low disposable incomes.
• The middle and upper classes often travel to the US and purchase big-ticket items for shipment back to Haiti. Pricing of these goods for sale in Haiti must overcome the, “I'll buy it when I'm visiting the US” factor.
• Port fees (Port-au-Prince has the highest fees in the Western Hemisphere) and other transaction costs can add 30%+ to the final retail price of a product.
• Working with a local PR firm is recommended as most Haitians buy from small merchants. 
• Advertising via radio is the most common form of promotion. 
• Only one station (Radio Nationale d'Haiti) reaches the whole country.
• Billboards are another popular advertising technique.
• Commercial flyers are typically used when targeting the higher social strata.
• A 30% tax is assessed on repatriations.

Business Culture

• Key words to remember about Haitian values, “traditional" and "conservative”.
• Most businessmen and women speak fluent English.
• Your mother was right, good manners count in Haiti. Greetings should be given at all opportunities, even minor ones like entering a hotel. Keep eye contact. Haitians normally greet each other with two kisses (on the cheeks) for females and a handshake for males. In business use a handshake and try to acknowledge each person during a social exchange.
• Kindness goes a long way in Haiti. For example, when asking for directions, if the person you're asking doesn't feel you're projecting the proper amount of consideration, you'll probably be given the wrong directions.
• Business meetings have the same level of formality as in the US. 
  • Bring business cards to exchange during the introductions.
• Comfortable meeting locations (i.e. hotels) should be reserved two weeks in advance.
• Haitian dress is informal but conservative.
  • Lightweight clothes made of cotton of linen are typical. 
  • However, during a first meeting males should wear a suit. 
  • Middle to upper-class women tend to be judged by the clothes they wear.
• If invited to a meal, arriving 10 minutes before or after the appointed time is ok. Many business deals are discussed over a meal.
• Follow French etiquette at dinner, which usually starts at 6:30. Stay at least ˝ - 1 hour after the meal (while coffee is being served).

Legal Environment

• Haitian law is based on based on Civil Law.
• Haitian judicial system has four basic levels:
  • justices of the peace
  • fifteen courts of first instance
  • five regional courts of appeal
  • the Haitian supreme court (Cour de Cassation)
• The Commercial Code is antiquated; the last major revision took place in 1944.
• The US Government is actively participating with the Haitian Government to modernize the judicial system.
• The US Embassy in Haiti can help businesses find a lawyer versed in Haitian commercial law.