GOH TO ANNOUNCE NEW CARICOM OFFICE

UNCLAS SECTION 01 OF 02 PORT AU PRINCE 002373

SIPDIS

SENSITIVE
SIPDIS

STATE FOR WHA/CAR
S/CRS
SOUTHCOM ALSO FOR POLAD
STATE PASS TO USAID FOR LAC/CAR
INR/IAA (BEN-YEHUDA)
WHA/EX PLEASE PASS TO OAS
TREASURY FOR J. LEVINE
COMMERCE FOR S. SMITH

E.O. 12958: N/A
TAGS: PGOV PREL ECON ETRD HA
SUBJECT: GOH TO ANNOUNCE NEW CARICOM OFFICE

REF: A. PORT AU PRINCE 1973

B. PORT AU PRINCE 2060

PORT AU PR 00002373 001.2 OF 002



1. Summary: President Rene Preval appointed a new advisory
council on external relations consisting of financial
specialists Marie Michelle Rey, Charles Clarmant, and
Preval's financial advisor (and presumed fiancee) Elizabeth
Delatour. He created the advisory council in September to
review relations with Haiti's bilateral and multilateral
partners such as the European Union, Venezuela, Cuba, and the
ABC countries (Argentina, Brazil and Chile). Advisory
council members told Poloff December 5 that Haiti will open a
new office for the Caribbean Community and Common Market
(CARICOM). A presidential decree appointed advisory council
member Rey as head of the new office, which will open early

2007. According to advisory council members, relations with
CARICOM work in tandem with the GoH goal to improve relations
with the Dominican Republic as it enters DR-CAFTA.
Restrictions on travel and immigration in the region continue
to isolate Haiti from other CARICOM member states, but will
give CARICOM and DR a common dilemma vis-a-vis the GoH. The
council, highlighting Preval's focus on external relations
and trade negotiations, is newly-formed but its advisors are
seasoned in Haiti's private and public sector affairs. End
Summary.

Think Tank for External Relations
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2. Members of the executive advisory council on external
relations described themselves as a think tank of
presidential advisors to review relations and negotiations
with Haiti's partners. The office works under the umbrella
of the Prime Minister's authority. It does not replace the
work of various ministries, but instead works to coordinate
all of Haiti's external efforts -- including trade
negotiations, commercial agreements, environmental
initiatives, tourism promotion -- within the GOH apparatus.
Currently, the council is also reviewing Haiti's trade
negotiations with the European Union, possible replacements
for the Caribbean Basin Initiative (CBI),an agreement signed
by Madeleine Albright in 1998 that gave the U.S. Coast Guard
access to Haitian waters (ref A),and Haiti's pending status
with the WTO.

Moving Forward with Caricom and the DR
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3. Advisory council members told Poloff December 5 that
Haiti would formalize its reintegration with CARICOM while
also increasing relations with its neighbor, the Dominican
Republic. Building relations with both the DR and CARICOM
makes sense because the DR is getting closer to its Caribbean
neighbors and will inevitably play a large role in Haiti's
development. They reported that the DR is re-positioning
itself as the "biggest economy in the Caribbean," which at
least aligns it with other Caribbean countries instead of its
usual counterparts in Central and South America. It is
possible, they reported, that the DR will sign an agreement
with CARICOM in the near future.

Immigration Unresolved
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4. Immigration from Haiti is one of most contentious issues
for the regional body, according to advisory council members.
Many of the countries in the Caribbean such as the Bahamas,
Guadeloupe, Martinique, and French Guyana are home to
Haitians who migrated both illegally and legally. Thus, the
CARICOM Secretariat is unlikely to loosen its policy on
Haitian travel in the region. (Note: For travel to countries
hosting the International Cricket Council World Cup, Haiti is
the only CARICOM member state not exempt from the common visa
required for travel. Private sector representatives have
complained that Haitian business travelers are subject to

PORT AU PR 00002373 002.2 OF 002


long delays in receiving visas to travel to other CARICOM
states (ref B). End note.) Advisory council members
specified that CARICOM and the DR will work together on this
issue because they share concerns about Haitian
out-migration. CARICOM will not be involved in immigration
disputes between the DR and Haiti, although it will likely
serve as a third party observer to increase regional
integration with the DR, according to advisory council
members.


5. Comment: Newly-formed, but with plenty of previous
experience both in government and the private sector, the
advisory council provides insight into Haiti's ambition as it
normalizes relations with its friends and partners. The good
news about the new CARICOM office is offset by a number of
unresolved issues, such as immigration and customs duties,
which are low in Haiti by CARICOM standards. The CARICOM
Secretariat argues that the countries in the Caribbean, with

SIPDIS
relatively low production, rely on the tax for government
revenues. Historically, however, Haiti has kept its
export/import taxes low in line with recommendations from
international finance institutions, advisory council members
explained. This issue, among other regional concerns such as
tourism, disaster relief efforts, the environment, drugs, and
migration, should give the new CARICOM office plenty to do.
The long-term benefit of spending scarce GoH time and
resources pursuing ties with CARICOM is questionable,
especially since the DR is Haiti's most important regional
partner. Nevertheless, if Haiti could overcome the barriers
to integration, the benefits of CARICOM include a flourishing
export market for cheap food and semi-skilled labor.
SANDERSON