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SANTO DOMINGO — Despite economic hardships, border disputes, and the challenges posed by ongoing gang violence in Haiti, the Dominican Republic continues to view its neighboring country as a vital trading partner. By September 2024, Dominican exports to Haiti reached $660.1 million, marking a 7.1% decline compared to the same period in 2023, though Haiti remains one of the Dominican Republic’s top export markets.
According to the Dominican Center for Export and Investment (ProDominicana), trade between the two nations has experienced fluctuations over recent years. Exports to Haiti reached a peak in 2022 with $1.04 billion, reflecting an 8.9% increase over 2021. However, economic instability and recent diplomatic tensions have contributed to a gradual decline since then.
Key Exports Continue to Meet Demand
Haitian demand for essential goods remains strong. The Dominican Republic’s main exports to Haiti include cotton T-shirts, valued at $74.7 million as of September 2024, along with cotton fabrics ($69.4 million), Portland cement ($37.4 million), and wheat flour ($32.3 million). These exports underscore the essential role of Dominican goods in meeting Haiti’s market demands for construction materials, food products, and clothing despite the economic downturn.
Overall, Dominican exports to global markets grew, reaching $9.7 billion by September 2024, with the United States, India, and Switzerland listed among the leading destinations. While Haiti’s share in the Dominican export portfolio has shrunk slightly, it continues to serve as the second-largest market, signaling its importance to Dominican exporters even amid regional uncertainties.
Economic Pressures in Haiti Impact Trade Dynamics
Haiti’s economy has faced severe pressures due to inflation and civil instability. According to data from the Haitian Institute of Informatics and Statistics, the country’s consumer price index surged by 1.7% monthly, reaching a 28.3% increase on an annual basis as of May 2024. The rising inflation has intensified living costs, limiting consumers’ purchasing power and affecting trade volume.
Border Tensions Add to Economic Strain
Diplomatic relations between Haiti and the Dominican Republic deteriorated in September 2023 over a Haitian project to divert water from the shared Massacre River. In response, the Dominican government closed the Dajabón border and implemented a comprehensive border shutdown, halting land, sea, and air traffic. The closure, initially imposed for security, has remained in effect since March 2024, affecting both Dominican businesses relying on Haitian markets and Haitian consumers who depend on Dominican goods.
President Luis Abinader recently affirmed that airspace restrictions will continue until conditions in Haiti improve, maintaining a critical but cautious approach. The prolonged border closure adds a layer of complexity to trade, with Dominican exporters facing logistical challenges that could impact future trade with Haiti.
