Extends preferential trade treatment for certain apparel imports from Haiti and restores eligibility for specific articles under the Caribbean Basin Economic Recovery Act until September 30, 2035.
Gregory Murphy
Representative
NC-3
The Haiti Economic Lift Program Extension Act of 2025 extends preferential trade treatment to Haiti under the Caribbean Basin Economic Recovery Act until September 30, 2035. It clarifies eligibility for apparel articles containing U.S. fabric and restores preferential treatment for certain articles that were previously eligible. The Act aims to promote economic development in Haiti through trade benefits.
Haiti Trade Deal Extended to 2035: Duty-Free Access Continues for Apparel, Some Retroactive Benefits
The Haiti Economic Lift Program Extension Act of 2025 keeps the trade doors open between the US and Haiti. This bill extends a program giving Haitian-made apparel special access to the US market, meaning no tariffs on certain goods. This deal, which was set to expire, now runs through September 30, 2035.
Stitching Up Trade: Apparel Benefits
This bill is mostly about clothes. It clarifies that apparel made with at least 60% US fabric gets preferential treatment (Section 2). Think of it like a discount for using American-made materials. There's a cap, though: only up to 1.25% of all apparel imported into the US can get this special Haitian deal. For example, if the US imports 10 billion clothing items, up to 125 million could come in duty-free from Haiti under this program.
Back in Business: Restoring Lost Perks
Some items that used to get a free pass into the US market lost that status because of changes to the US tariff schedule (the list of taxes on imports). This bill (Section 3) brings back that preferential treatment for those goods. The President will make a formal announcement—a proclamation—to fix this, but it won't happen overnight. There's a mandatory two-business-day waiting period after the President explains the changes to key Congressional committees. This part is retroactive, covering items that lost eligibility between December 20, 2006, and when this Act becomes law.
Real-World Ripple Effects
- Haitian Apparel Workers: More consistent work opportunities, potentially. If US companies buy more clothes from Haiti because of this deal, factories there could see increased production.
- US Fabric Makers: A potential boost in demand. The 60% US fabric rule could mean more sales for American textile companies.
- US Consumers: Possibly lower prices on some clothing items, though this isn't guaranteed. The impact on retail prices depends on how much importers pass on the savings from no tariffs.
- Haitian Economy: The duty-free access to the U.S. market for apparel can help create much needed jobs and boost the country's economy.
The Bottom Line
This Act largely extends and tweaks an existing trade arrangement. It's designed to help Haiti's economy by making it easier to sell clothes in the US, and it might give a little lift to US fabric manufacturers in the process. The retroactive fix for some previously eligible goods is a notable detail, ensuring that items that lost out because of tariff changes get their benefits back.