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Rice production in Haiti

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Through Rice, Free trade and Environmental degradation

Trade liberalization

The trade liberalization policies are strongly advocated and oftentimes mandated by international financial institutions. These institutions included entities like the International Monetary Fund (IMF) and the World Bank. The import tariff reduction outlined in these policies is vital contributions supported by these entities. The Haitian Government created a new agreement with the IMF in 1994, which cut the current import tax of 35% down to 3%. This lowered tariff ranked Haiti as the least restrictive country for trade. However, this has had little impact on boosting the Haitian economy. Haiti continues to be the least developed country in the western hemisphere, particularly, it seems, because Haitian production of rice decreased exponentially. These tariffs created competition for rice that could not be met by locals. The rural population was hit the hardest by the tariff; there are few other employment opportunities for them.

Rice produced by the United States has a large range of institutions to subsidize the production of the rice, whereas in Haiti the government does not provide the rice farmers with any subsidies to support the Haitian rice economy. There are no domestic institutions in Haiti that directly give aid or support to the struggling farmers. It is because of the U.S. subsidies and the Haitian lack of subsidies that many claim that the rice competition between the two countries resembles an instance on inequality. Haiti needs time to build resources and therefore their economy in order to garner a chance at competing in the world markets. More often than not a country needs protections in place to stabilize their contributions to the world market and as of right now, Haiti has none. The United States imposes excess rice onto the Haitian community because Haiti has little stature to impose their own. The United States has monopolized the rice market in Haiti. Their economic dominance in the country has created an unstable balance between the two countries. This is precisely why there are several Haitian and international NGOs accusing the United States of using Haiti as a disposal area for the cheap implementation of rice. There are economists and development workers who claim that the imbalance between the American rice output and the Haitian rice has put Haitians out of business by forcing them to sell their crops and prices that don't even cover the price it took to produce the rice, that is if it sells at all.

Some are advocating for the investigation of US companies selling rice at unfair prices as most rice imports are handled "by a single US corporation – American Rice Inc. – which as enjoyed an almost monopolistic position in Haiti." There was study done on agriculture and food price policy in Haiti that provides a defense for those in favor of trade liberalization. There are those supporting the notion that lowering rice tariffs has been a benefit to the Haitian community. The study showed, researched in 1999, that urban areas lived with better means when retail prices were lower resulting from lower rice tariffs. Food prices in Haiti have been seen as stable, claimed by the IMF, because of the cheap American rice swarming the coasts. In addition, the IMF firmly states their doubt that raising import tariffs would achieve improved rates of rice production in Haiti. In late February 2024, United States rice exports to Haiti were found to contain nearly twice the average amount of arsenic and cadmium that is in locally-grown rice. Almost all imported rice samples exceeded the United States Food and Drug Administration's recommendation for children's consumption.

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