GLOBAL ECONOMY

E.U. official warns Haiti than ban on Dominican goods will be costly

TIERRA NUEVA, DOMINICAN REPUBLIC - MARCH 03: A Dominican soldier lets a vehicle pass from Haiti at the border gate on March 3, 2012 in the border town of Tierra Nueva, Dominican Republic. The Dominican border is a poor and neglected part of the country that depends on trade with neighboring Haiti. Many of the area residents are Haitian or of Haitian decent with thousands having poured across the border after the earthquake in January 2010 in search of jobs and homes.  (Photo by Spencer Platt/Getty Images)

TIERRA NUEVA, DOMINICAN REPUBLIC - MARCH 03: A Dominican soldier lets a vehicle pass from Haiti at the border gate on March 3, 2012 in the border town of Tierra Nueva, Dominican Republic. The Dominican border is a poor and neglected part of the country that depends on trade with neighboring Haiti. Many of the area residents are Haitian or of Haitian decent with thousands having poured across the border after the earthquake in January 2010 in search of jobs and homes. (Photo by Spencer Platt/Getty Images)  (2012 Getty Images)

A European Union official warned Tuesday that an impending Haitian ban on some Dominican Republic products will drive up prices in the impoverished country.

Alberto Navarro, head of the EU delegation in the Dominican Republic, said that wheat, corn, bread and other affected goods could become up to 40 percent more expensive in Haiti.

"There's no doubt the same ones will keep paying the price: those who are most disadvantaged," he said.

Haiti's government has said that starting Oct. 1, it will ban 23 Dominican goods from crossing the border of the island it shares with the Dominican Republic to improve tax collection. The goods will be allowed to enter Haiti by boat or plane through the capital of Port-au-Prince or the northern coastal town of Cap Haitien.

The goods represent some $500 million in sales a year and make up 6 percent of all Dominican exports. Haitian business leaders have praised the measure, saying it will help support the local economy.

The ban comes amid growing tensions between the two countries as the Dominican Republic steps up deportation of Haitians.

Both Navarro and Lorenzo Jimenez, a United Nations representative in the Dominican Republic, said leaders of both countries should meet to talk about the issue.

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