In a newly released study, the U.S. International Trade Commission (USITC) suggests that if the HOPE (Haitian Hemispheric Opportunity through Partnership Encouragement) Acts and HELP (Haiti Economic Lift Program Act of 2010) are not renewed soon after their expiration on September 30, 2025, it could severely impact Haiti’s apparel exports to the U.S. further. Specifically:
First, the apparel sector matters significantly for Haiti. Apparel accounted for over 90% of U.S. merchandise imports from Haiti. The apparel sector also provided over 60,000 jobs in Haiti in 2021, though this number declined to nearly 22,000 by 2024 due to political instability and security concerns. Further, according to the USITC report, “Haiti’s apparel production primarily consists of basic apparel items such as T-shirts and cotton goods. Cotton knit T-shirts and manmade fiber knit T-shirts were the top products imported to the United States during 2022–24.”
Second, the HOPE and HELP programs have been critical in supporting Haiti’s apparel exports to the U.S. Data from the Office of Textiles and Apparel (OTEXA) shows that of the total $549 million U.S. apparel imports from Haiti in 2024, about 66% claimed the duty-free benefits under HOPE/HELP.
While Haiti’s apparel exports to the US could also enjoy preferential duty benefits under other U.S. trade preference programs, particularly the Caribbean Basin Economic Recovery Act (CBERA) and its enhanced version–the Caribbean Basin Trade Partnership Act (CBTPA), the apparel rules of origin under HOPE/HELP were far less restrictive. For example, whereas CBTPA requires Haiti to use U.S.-made yarns and fabrics, HOPE/HELP allows Haiti to use textile input from any country, as long as other eligibility criteria (including value-added or quota limits) are met.
Third, related to the previous point, without HOPE/HELP, Haiti’s apparel exports to the U.S. could face significant challenges. The USITC report noted that “The expiration of the HOPE/HELP program at the end of September 2025 would significantly reduce the competitiveness of textile and apparel exports from Haiti to the United States by removing key duty-free access provisions.”
Other studies cited by the USITC report argued that “compliance costs of preferential trade agreements are associated with rules of origin requirements, which can be cumbersome, especially for small firms in developing countries…if rules of origin are not ‘sufficiently simple and transparent,’ their compliance costs (may) exceed their benefits.”
Fourth, the expiration of HOPE/HELP could complicate the regional textile and apparel supply chain that involves the U.S. textile input, Haiti, and the Dominican Republic. Specifically, in 2024, about 28.8% of U.S. apparel imports from Haiti were under CBTPA’s “Knit apparel from regional or U.S. fabric from U.S. yarn” or “T-shirts made of regional fabric from U.S. yarn” provisions. This percentage rose to a new high of 32.5% in the first seven months of 2025 (was 23.7% over the same period in 2024). As the USITC report noted that “U.S. yarn is used in downstream fabric production in the Dominican Republic-Central America FTA (CAFTA-DR) countries, which is then used in apparel production in Haiti. Haiti’s preferences further allow for integrated textile and apparel trade with the Dominican Republic, with many inputs imported and finished goods exported through the country.”
However, the report also concluded that “although Haiti would still be able to take advantage of the CBTPA provisions, without the HOPE/HELP program, CBERA exports of textile products are likely to decline sharply, as producers face increased production costs relative to other U.S. trading partners.” In other words, “forcing” Haiti to rely exclusively on U.S. yarns could make its apparel too costly compared with Asia suppliers or CAFTA-DR members, leading U.S. fashion companies to reduce or even withdraw sourcing from Haiti.
(note: due to its technical nature, this post is not open for FASH455 discussion)
Summary by Sheng Lu
FASH455 Global Apparel & Textile Trade and Sourcing 