AVIAN FLU OUTBREAK SPURS TRADE DISPUTE WITH HAITI

C O N F I D E N T I A L SANTO DOMINGO 000174

SIPDIS

SIPDIS

STATE FOR WHA/CAR AND WHA/EPSC

E.O. 12958: DECL: 01/30/2018
TAGS: KFLU EAGR SENV ECON ETRD PGOV HA DR
SUBJECT: AVIAN FLU OUTBREAK SPURS TRADE DISPUTE WITH HAITI

REF: A. SD 0047

B. PORT AU PRINCE 00144

Classified By: Ambassador P. Robert Fannin, Reasons 1.4 (b) and (d)


1. (C) Summary. The Dominican poultry industry is claiming
that it is suffering significant financial losses as a result
of the decision by the Haitian government to ban all chicken
and egg imports from the Dominican Republic on January 4.
The decision to ban imports was the result of an occurrence
of low pathogenic avian influenza (H5N2 strain) in the
Dominican Republic in late December 2007, and has been
justified by the Haitian government as necessary to protect
public health and safety as well as the welfare of its small
holder poultry sector. The Haitian government is
recommending as mitigating measures that the Dominican
authorities follow the World Organization of Animal Health
(OIE) guidelines. These guidelines allow for trade from
areas that have been deemed to be secure from the disease
conditions. However, the GODR has not shown any willingness
to devote the necessary financial and technical resources to
implement the OIE guidelines. End Summary.


2. (U) Haiti banned Dominican poultry and eggs on January 4
following a late December incidence of low pathogenic avian
influenza. Haiti is the Dominican Republic,s largest export
market for poultry (fresh/frozen) and eggs (table),
accounting for approximately USD 7 ) 10 million (source:
unofficial GODR statistics). Haiti is the sole export market
for Dominican table eggs. The ban is estimated to have
already cost Dominican producers roughly USD 1.8 million in
lost sales, although reliable figures are difficult to
ascertain. Haiti,s consumers represent 20 percent of the
Dominican egg market and the border closing has created a
supply glut of nearly 30 million table eggs to date. Average
egg prices have dropped over the last thirty days from USD
0.053 cents per unit to USD 0.039 cents per unit, an almost
thirty percent decrease. The poultry industry is less
dependent on Haiti. An industry export estimate puts losses
at approximately 150,000 birds per month, representing less
than two percent of the total monthly production of between
11 and 14 million birds per month. Oversupply of poultry has
depressed prices in the Dominican Republic about 15 percent
in the past 30 days.


3. (C) While the Dominican government can be commended for
reporting the disease in a timely manner, the Ministry of
Agriculture has not allocated sufficient resources (funds and
staff) to quickly manage this incident. According to the
APHIS official at Post, the Haitian government has
recommended that the GODR follow the OIE guidelines which
provide the procedure for a government to show that an
area/country is secure from a disease. However, the DR has
so far been unwilling to take the necessary actions to
implement these guidelines despite several years of
collaboration and financial support from the USDA, the
International Development Bank, and the French government to
upgrade the Dominican,s official government animal health
laboratory and GODR surveillance ability. Comment: Although
the Minister of Agriculture announced on January 31 that the
GODR has invited a technical expert from OIE to visit the DR,
we do not believe that this signals a change in policy. The
DR sent the Minister of Agriculture to Haiti this week to
meet with President Preval in order to push for an end to the
ban and will continue to apply political pressure rather than
address the technical issues that need to be implemented.


4. (U) According to press reports, the GODR is seeking
additional export markets for the country,s poultry products
and has approached the Venezuelan and Cuban governments in an
attempt to offload excess supply, even if at a reduced price.
The Dominican government is also considering providing
support to the industry with a direct government purchase of
poultry and eggs. The Embassy has not been able to confirm
the status of either of these programs.


5. (U) It does not appear that the poultry and egg ban has
negatively impacted other trade across the border yet. A
Dominican border immigration official told PolOff that
despite the ban other border commerce appears to be operating
normally. Haitians have even been reported to be crossing
the border to purchase poultry and eggs and bring them back
across the border for consumption, although there doesn,t
appear to be any large scale smuggling. However, a group of
industry association leaders in the border city of Dajabon
has called for a boycott of all Haitian products on market
day as early as February 4 in retaliation for the ban. Radio
and television commentators have been lambasting the Haitian
government and calling for retaliatory measures, including
national trade sanctions and even mass deportations of
Haitians living in the Dominican Republic, which estimates
put at roughly one million. There has been no word from the
Dominican government concerning possible countermeasures.


6. (C) Comment: While it is in the best interest of the
Dominican Republic to resolve this issue as quickly as
possible, the GODR does not have the political will to
address the underlying problems in the industry. Instead,
the GODR is using the media and high level government visits
to pressure the Haitian government to end the ban. It
doesn,t hurt that it is good politics here to &bash8
Haiti, especially during a presidential election year.
FANNIN