Weekly Report - 17 May 2007

HAITI | Préval in Washington. Immigration and investment were the watchwords during President René Préval's three-day visit to the US last week, during which he met President George W. Bush and the Democrat Speaker of the House of Representatives, Nancy Pelosi. Préval pushed for the temporary protected status (TPS) designations granted to victims of natural disasters from El Salvador, Honduras and Nicaragua living and working in the US to be extended to Haitian immigrants. His visit came days after a small boat packed with some 160 Haitians trying to make it to the US capsized just off the coast of the Turks and Caicos Islands (TCI) on 2 May, claiming at least 61 lives. Some survivors claim that the boat was deliberately rammed by a TCI Patrol boat although the rough seas could explain any collision. Bush conveyed to Préval that, unlike Venezuela, the US would honour its financial commitments to Haiti - a mild rebuke for Préval's recent attendance at the Alba summit in Venezuela. Préval also appealed for better incentives in the HOPE Act, established in December 2006, which provides certain Haitian textiles and other goods with duty free status to help spur investment and create jobs in Haiti. 

NICARAGUA | IMF deal distant. After ten days of negotiations an IMF mission left Managua on 11 May without striking a deal with the government on a new three-year credit agreement under the Poverty Reduction and Growth Facility. The IMF mission released a statement on 11 May on the need to strengthen anti-poverty policies as well as preserving a solid macroeconomic performance. President Daniel Ortega said that he would not permit the IMF to impose conditions controlling social spending on energy, water, education, and health. He said he was committed to increasing the salaries of teachers, health workers and soldiers. He said that the funds for this would be found through tax reform, notably the banking sector which he said paid no tax.