Monthly Archives: June 2018

5 things the UK’s EU (Withdrawal) Act of 2018 does

Alicia Nicholls

After months of heated debate, the United Kingdom’s European Union (Withdrawal) Bill, more colloquially called the ‘Brexit Bill’, received the Royal Assent on June 26th, transforming it into law.

Here are five quick things the EU (Withdrawal) Act of 2018 does:

1.Defines Brexit or ‘Exit day’

The UK’s official ‘exit day’ from the EU is now defined in statute as March 29, 2019 at 11:00 pm. However, the Act allows amendment of this date via regulation to ensure it conforms with the date on which the EU treaties are to cease to apply to the UK as per Article 50(3) of the Treaty on European Union (Lisbon Treaty), that is, from the date of entry into force of the withdrawal agreement or, failing that, two years after the notification of withdrawal unless the European Council, in agreement with the UK, unanimously decides to extend this period.

2.Repeals the European Communities Act, 1972 on ‘exit day’

The European Communities Act (ECA), 1972 provided for the UK’s accession to the European Communities. Per the EU (Withdrawal) Act, the ECA will be deemed repealed on March 29, 2019 at 11:00 pm (Exit Day).

3.Saves EU-derived domestic legislation and direct EU legislation with exceptions

The Act saves EU-derived domestic legislation and direct EU legislation which is in operation immediately before exit day, meaning it continues to have effect in domestic law on and after the exit day, but does not include any enactment in the European Communities Act, 1972 (which would be repealed). It also provides a guide for the interpretation of EU derived law.

But there are important exceptions. For instance, the rule of supremacy of EU law and the Charter of Fundamental Rights will obviously no longer apply on and after exit day. Additionally, while there is nothing preventing UK courts from having regard to EU courts’ interpretation of retained EU law, they will no longer be bound to principles decided by the European Court and will no longer refer matters to the court.

4.Parliamentary Approval Required for Outcome of EU Negotiations

The Act mandates parliamentary approval for the ratification of the withdrawal agreement and outlines a detailed process at section 13(1) for same.

5.Makes some prescriptions

With respect to the UK’s future relationship with the EU, the Act requires the Government to lay before both Houses of Parliament before the end of October 31, 2018 a written statement outlining the steps taken towards negotiating a customs arrangement as part of the post-Brexit EU-UK relationship. Another example is the requirement placed on the Government to seek to negotiate on the UK’s behalf an agreement with the EU dealing with family unity for those seeking asylum or other protection in Europe.

The full text of the European Union (Withdrawal) Act may be viewed here.

Alicia Nicholls, B.Sc., M.Sc., LL.B., is an international trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

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The Golding Report Adopted by Jamaica Government: What Next?

Alicia Nicholls

Last week the Report of the Commission to Review Jamaica’s Relations within the CARICOM and CARIFORUM Frameworks, commonly referred to as the “Golding Report” after the Commission’s distinguished Chairman, the Honourable Bruce Golding, former Prime Minister of Jamaica, was debated and adopted by the Jamaica House of Representatives. We now finally have some idea of what is the official position by the Government of Jamaica on the report which was commissioned by the Most Honourable, Andrew Holness, Prime Minister of Jamaica and completed nine months later in March 2017.

Initial fears that the report would serve as the basis for a Jexit (Jamaica’s exit from the CARICOM), akin to the country’s withdrawal from the West Indies Federation in 1961, have been allayed somewhat. Official statements from the Jamaican Government do not evince an intention to leave CARICOM and the Government appears convinced, at least for now, that the CARICOM Single Market and Economy (CSME) is the best raft for navigating increasingly uncertain global economic and policy waters.

The 51-page report sought to examine Jamaica’s relations within CARICOM and CARIFORUM, but has presented another opportunity for introspection by CARICOM leaders and other stakeholders on what has been achieved, where we have failed and what is needed to move forward. The fact that consultations were held with persons not just from Jamaica, but also from across the wider CARICOM shows that the Report was not solely insular in focus.

The Holness Government has indicated that it would not push for the five-year deadline for full CSME implementation recommended by the Report, calling the timeline “unrealistic”. Instead, Mr. Holness stated that the Government would “get commitments from the various heads for the full and effective implementation of the Common Market, which are things that we can do within the five years.”

The Holness Government has also thrown its support behind a review of the CARICOM contribution scale of fees payable to the Secretariat and other bodies. Jamaica is currently the second largest contributor (23.15%) and is working to reduce its arrears of just under $500 million. Jamaica is not the only Member State to owe arrears, but the lack of information on the level of arrears owed by Member States was one of the transparency issues raised in the report.

In his contribution to the debate on the Report in the Lower House, Mr. Holness further noted that some of the report’s thirty-three recommendations were more immediately implementable than others, and there was need for some flexibility. The Leader of the Opposition, PNP Leader, Dr. Peter Phillips, also supported the report.

Disappointingly, there has been no public reaction by CARICOM leaders to the report so far, aside from the comments made by Prime Minister of St. Vincent & the Grenadines, Dr. the Honourable Ralph Gonsalves. No reference was made to the Report in the Communique from the 29th Intersessional Meeting, but the report is likely to be one of the agenda items at the upcoming 39th Regular Meeting of the Conference of the Heads of Government of the Caribbean Community (CARICOM) carded for July 4-6 in Jamaica.

At the two-day Stakeholder Consultation on the CARICOM Single Market and Economy (CSME) held at the Ramada Princess Hotel in Georgetown, Guyana June 8-9, the Honourable Bruce Golding, who was one of the presenters, noted that the CARICOM Secretariat was not to blame for the implementation deficit.

The Jamaica Government should be lauded for this effort. The Report, which has been the most comprehensive report on CARICOM since the Ramphal Commission’s Time for Action Report of 1992, also addresses issues such as transparency, financing and accountability. The report’s recommendations, most of which are not new, are however, far-reaching. Among the more novel recommendations are the proposed establishment of an Office of an Auditor-General, a Central Dispute Settlement Body, and greater involvement of the private sector.

More could have been said in the Report about ensuring buy-in by future generations by increasing youth participation and engagement in the regional integration process, such as through the expansion of the CARICOM Young Ambassadors Programme, the establishment of a CARICOM Young Professionals Programme at the CARICOM Secretariat or across its institutions, or at least providing greater opportunities for young persons to see first hand the work of the Secretariat through internships.

Like the many reports and studies before it, the Golding Report presents an important opportunity for conversation and dialogue, but talk must be parlayed to action. Jamaica will assume chairmanship of the Conference of Heads of Government under its rotational system from July 1-December 31, 2018, and Mr. Holness will have an opportunity within his six month chairmanship to hopefully influence how much attention is paid to the report and its recommendations, and what should be the next steps.

It is hoped that the Golding Report will not suffer the fate that so many previous studies on CARICOM suffered, that is, being relegated to “File 13”. The report should provoke serious introspection about whether the CSME is really what we want. What concrete steps are we willing to take to implement the commitments made under the Revised Treaty of Chaguaramas?

Leaders of CARICOM countries must not just be willing to make commitments but be champions for their implementation domestically. The election result in Barbados, which under the quasi-cabinet has lead for the Single Market (including Monetary Union), presents some cause for hope. The new Prime Minister, the Honourable Mia Amor Mottley, has taken a more pro-integration stance than seen in the previous administration, and one of her first acts was to remove the visa requirement for citizens from Haiti, which is not yet a CSME participatory but is a CARICOM Member State.

Alicia Nicholls, B.Sc., M.Sc., LL.B., is an international trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

Caribbean Trade & Development Digest – June 17-23, 2018

Welcome to the Caribbean Trade & Development Digest for the week of June 17-23, 2018! We are happy to bring the trade and development headlines and analysis from across the Caribbean Region and the world from the past week.

REGIONAL

The major regional trade headlines this week focused on the debate  and adoption in the Jamaica House of Representatives of the Report of the Commission to Review Jamaica’s Relations within the CARICOM and CARIFORUM Networks (commonly referred to as the Golding Report after its chairman, former Jamaican Prime Minister, the Hon. Bruce Golding).

Golding Report Headlines

These headlines may be found here:

Jamaica House of Representatives Adopts Report on CARICOM

JIS: The House of Representatives on Tuesday (June 19) adopted the Report of the Commission to Review Jamaica’s Relations within the CARICOM and CARIFORUM Frameworks. Read more 

Jamaica will Continue Relations with CARICOM– PM Holness

JIS: Prime Minister Andrew Holness has reiterated that Jamaica will continue its relationship with the CARICOM. Read more 

Does Caricom need a WTO-type dispute-resolution system?

Jamaica Observer: It cannot be gainsaid that an effective dispute-settlement system is required in any regional trade agreement to ensure the legitimacy of the trade arrangement. Read more 

Jamaica PM Supports Review of CARICOM Contribution Scale

St. Kitts & Nevis Observer: Jamaica’s Prime Minister Andrew Holness has embraced the Bruce Golding-led Caribbean Community (CARICOM) Review Commission’s proposal for greater equity in the assessment and calculation of fees payable to the CARICOM Secretariat and agencies by member states. Read more

Jamaica Isn’t Accepting Recommendation to Give CARICOM Ultimatum on CSME Implementation

Caribbean360: Jamaica’s Parliament has adopted the report of the commission set up to review the country’s relations within the Caribbean Community (CARICOM), but Prime Minister Andrew Holness says government will not insist on the five-year timeline for the implementation of the CARICOM Single Market and Economy (CSME), as recommended in the document. Read more

Minister Shaw Calls for Fair and Rigorous Application of Revised Treaty of Chaguaramas

JIS: Minister of Industry, Commerce, Agriculture and Fisheries, Hon. Audley Shaw, says that the provisions of the Revised Treaty of Chaguaramas must be applied fairly and rigorously in order to result in increased economic development in the region. Read more

Other Regional Headlines 

EU – African, Caribbean and Pacific countries future partnership: Council adopts negotiating mandate

EU: On 22 June 2018, the Council adopted the negotiating mandate for the future agreement between the EU and the African, Caribbean and Pacific (ACP) countries. Read more

EU and 79 ACP Countries Aim at New Partnership to Address Global Challenges

InDepthNews: The heads of state or government of the 28 EU member states, constituting the European Council, have authorized the European Commission to open negotiations for a new partnership agreement with 79 countries in Africa, the Caribbean and the Pacific (ACP). The Group’s Secretary-General Dr. Patrick I. Gomes has greeted the decision. Read more

(Trinidad) Exports up, imports down

Newsday (T&T): T&T Exports rose by 11 per cent in the last quarter of 2017, while imports decreased by 1.5 per cent, year on year, the latest data from the Central Bank has shown, and as expected, the uptick in the energy sector is the reason. Read more 

Fewer Jamaicans Denied Entry to T&T

JIS: The number of Jamaicans being denied entry into Trinidad and Tobago (T&T) continues to decline. Read more 

More engagement needed between CARICOM and Caribbean Diaspora 

South Florida Caribbean News: Guyana’s Ambassador to the United States Dr. Riyad Insanally has suggested that there be a more structured process of engagement between the Caribbean Diplomatic Caucus  in Washington DC and the Caribbean diaspora to ensure that efforts to advance the cause of the region and its people are well defined and co-ordinated. Read more 

Implications for the Caribbean… as US imposes tariffs on steel, aluminium

The Guardian: The Trump administration imposed tariffs on steel and aluminium imports from Canada, Mexico, and the European Union effective June 1, 2018. The implementation of the tariffs are designed to protect the US steel and aluminium industry from foreign producers that undercut domestic prices. Read more

City chamber launches trade councils with India, Canada and Cuba

Stabroek: The Georgetown Chamber of Commerce and Industry (GCCI) yesterday launched three trade facilitation councils in efforts to operationalize memoranda of understanding (MoU) signed with Cuba, India and Canada. Read more 

Cuba Seeking Trade, Investment from Wider Caribbean

St Kitts & Nevis Observer: Businesses in Jamaica and the wider Caribbean are being encouraged to explore opportunities for trade and investment with Cuba. Deputy Minister of Foreign Affairs for Cuba, Rogelio Sierra Diaz, said his Government is seeking to widen cooperation with countries in the region under its foreign investment law. Read more 

T&T reaffirms trade ties with Cuba

Sunday Express: Minister of Trade and Industry Paula Gopee-Scoon recently met with Cuba’s Vice Minister of Foreign Affairs Rogelio Sierra Diaz to discuss, among other things, opportunities for increased trade with Cuba. Trinidad and Tobago is currently Cuba’s largest Caricom trading partner, recording 80 per cent of trade in the region. Read more 

INTERNATIONAL

It was another rollercoaster week in international trade policy news. Norway added itself to the growing list of countries challenging the US’ steel and aluminium duties. Meanwhile, the tariff war between the US, EU and China continued to escalate. 

Norway initiates WTO dispute complaint against US steel, aluminium duties

WTO: Norway has requested WTO dispute consultations with the United States regarding US duties on certain imported steel and aluminium products. The request was circulated to WTO members on 19 June. Read more 

NAFTA’s fate could change timing of 2019 federal election: expert

Global News: An expert on Canada-U.S. relations says he could see Prime Minister Justin Trudeau triggering a federal election earlier than planned next year if the trade war with the United States continues to escalate and NAFTA falls to pieces. Read more

Negotiators must redouble efforts as clock ticks on NAFTA

The Hill: After a short cooling off period, the North American Free Trade (NAFTA) negotiators need to redouble efforts to forge an agreement this summer that all three countries find beneficial. Read more 

WTO members intensify discussions on standards

WTO: WTO members continued their three-year review of the Technical Barriers to Trade (TBT) Agreement, proposing ideas on how to improve implementation of the Agreement at a TBT committee meeting on 19-21 June. Read more 

Brexit: PM urged to speed up no-deal Brexit plans

BBC: Theresa May must prepare to exit the EU with no deal to have “real leverage” in Brexit negotiations, a letter from 60 politicians and business figures says. Read more

US unveils new veto threat against WTO rulings

CGTN: The United States ramped up its challenge to the global trading system on Friday, telling the World Trade Organization that appeals rulings in trade disputes could be vetoed if they took longer than the allowed 90 days. Read more

Commission reports on progress in trade talks with Chile and Mercosur

EU: As part of its commitment to a transparent trade policy, the Commission today published reports from the latest negotiating rounds with Chile and Mercosur. Read more 

EU and New Zealand launch trade negotiations

EU: Today, in the capital of New Zealand, Wellington, Commissioner for Trade Cecilia Malmström and New Zealand’s Minister for Trade David Parker officially launched talks for a comprehensive and ambitious trade agreement. Read more 

EU adopts rebalancing measures in reaction to US steel and aluminium tariffs

EU: The European Commission adopted today the regulation putting in place the EU’s rebalancing measures in response to the US tariffs on steel and aluminium. The measures will immediately target a list of products worth €2.8 billion and will come into effect on Friday 22 June. Read more

EU Pushes for a Revamp of the World Trade Organization

Bloomberg: European Union leaders plan to push for improvements in the way the World Trade Organization operates, saying it’s important to uphold the global commercial order amid “growing” tensions prompted by U.S. President Donald Trump’s tariffs. Read more 

Liked this issue? To read past issues of our weekly Caribbean Trade & Development Digest, please visit here. To receive these mailings directly to your inbox, please follow our blog.

Caribbean Trade and Development Digest – June 10-16, 2018

Welcome to the Caribbean Trade & Development Digest for the week of June 10-16, 2018! We are happy to bring the trade and development headlines from across the Caribbean Region and the world from last week:

REGIONAL

‘Tremendous Anxiety” over (Bahamas) WTO Accession

The Bahamas Tribune: The Chamber of Commerce’s chairman yesterday warned there was “tremendous anxiety” over the WTO accession amid the absence of analysis on its likely impact. Read more 

CSME necessary; Consultation raises concerns over architecture

CARICOM: Stakeholders at the just-concluded Stakeholder consultation on the CARICOM Single Market and Economy (CSME) agree that there is value in, and benefits to be derived from the CSME. Read more 

ECLAC chief calls for ‘new narrative’ on international cooperation for C’bean development

Jamaica Observer: The Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), Alicia Bárcena, has called for a “new narrative” on international cooperation for the region’s development. Read more 

CARICOM, Cuba to strengthen cooperation

Jamaica Gleaner: The Caribbean Community (Caricom) and the Government of Cuba have both pledged to continue to strengthen relations in matters related to trade and the arts. Read more 

Jamaica, other CARICOM countries to benefit from new Mexico-FAO initiative

Jamaica Observer:  At least 14 Caribbean Community (CARICOM) countries will design multiple projects to mobilise resources from international sources allowing them to improve the resilience and adaptation of their agriculture, food systems and rural communities to change climate. Read more

Blame Governments, not CARICOM

Barbados Today: Blaming the Caribbean Community (CARICOM) Secretariat for the gaps in implementation of the CARICOM Single Market and Economy (CSME) is unfair, former Prime Minister of Jamaica Bruce Golding has argued. Read more 

Integrity Commissions of Guyana, other Caribbean countries want corruption on CARICOM agenda

Demerara Waves: Guyana’s Integrity Commission is among several other similar bodies in the Caribbean that have called on the 15-nation Caribbean Community (CARICOM) to put  graft and corruption on their agenda and craft Commissioner harmonised legislation to tackle the scourge. Read more 

CARICOM unhappy with single market and economy system

New Amsterdam News: Leaders, former leaders and top officials from across the Caribbean assembled in Guyana last week to review the state of play, progress and problems associated with the decades-old Caribbean Single Market and Economy system, and most said the slow pace of implementation was frustrating them terribly. Read more 

Minister Greene pleased with CARICOM meeting

Antigua Observer: Foreign Affairs, Immigration and Trade Minister Chet Greene is pleased with the outcome of a CARICOM Council meeting for Trade and Economic Development (COTED) in Guyana, which concluded yesterday. Read more

New fund launched to assist CARPHA deal with outbreaks and health emergencies

Jamaica Observer: A fund has been launched to provide financial support and assistance to the Trinidad-based Caribbean Public Health Agency (CARPHA) to manage outbreaks and emergencies with health and humanitarian consequences across the risk management cycles. Read more 

INTERNATIONAL

WTO chief warns of global downturn if trade dispute escalates 

The Economic Times: If the trade conflict between the United States and other countries intensifies, it could negatively impact the global economy and there are indications this is already happening, the head of the World Trade Organization warned in newspaper. Read more 

Opportunities beckon as Singapore and Rwanda ink agreements

The Straits Times: More business and investment opportunities are under way for Singapore and Rwanda, as both countries signed a bilateral investment treaty (BIT) and an air services agreement (ASA) on Thursday. Read more 

India moves ahead with tariffs on US goods

CNN Money: The country has proposed hiking tariffs on 30 US products in order to recoup trade penalties worth $241 million, according to a revised World Trade Organization filing. Read more 

USTR Issues Tariffs on Chinese Products in Response to Unfair Trade Practices

USTR: The Office of the United States Trade Representative (USTR) released a list of products imported from China that will be subject to additional tariffs as part of the U.S. response to China’s ‘unfair’ trade practices related to the forced transfer of American technology and intellectual property.  Read more 

 

EU-Mercosur Trade Talks Resume in Montevideo, Though 2018 Timeframe Remains Unclear

ICTSD Bridges: Trade negotiators for the EU and Mercosur resumed formal talks last week, with officials announcing “constructive progress” thereafter while stopping short of announcing a timeframe for concluding the long-awaited trade deal. Read more 

American businesses brace for pain from trade fight with China

CNN Money: President Donald Trump’s tariffs on Chinese goods are intended to help American companies that have been hurt by Beijing’s industrial policies. But in the short term, at least, many American businesses may be the ones feeling pain. Read more 

Japan enacts law to ratify Trans-Pacific trade deal

Nikkei Asian Review: The Japanese Diet on Wednesday enacted a law to ratify the 11-nation Trans-Pacific Partnership free trade deal, moving a step closer to completing domestic procedures. Read more 

Colombia has made request to join Pacific trade pact: Mexico

Reuters: Colombia has formally requested permission to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Mexico’s Economy Minister Ildefonso Guajardo said on Friday. Read more

Liberals (Canada) table legislation to ratify Trans-Pacific free trade deal

CBC: The Liberal government introduced legislation Thursday to ratify a free trade deal with 10 other Pacific nations that it says would see Canada get preferential access to some of the biggest and fastest-growing economies in the Asia-Pacific region. Read more 

Australia to start free trade agreement negotiations with the EU

Bloomberg: Australia will begin negotiations with the European Union on a free-trade agreement covering a market with 500 million people and worth $17.3 trillion, making it one of the country’s biggest potential deals. Read more 

Italy won’t ratify EU free-trade deal with Canada: farm minister

Reuters: Italy will not ratify the European Union’s free trade agreement with Canada, its new agriculture minister said on Thursday, ratcheting up an international trade spat and potentially scuppering the EU’s biggest accord in years. Read more

NAFTA talks to continue in tense atmosphere

CNBC: The U.S. and Canada agreed on Thursday to continue negotiating a new NAFTA deal, amid a tense trade environment that includes an announcement Friday of new U.S. tariffs on China. Read more 

EU and Mercosur complete latest talks

EU: The Parties achieved progress on several issues such as services and exchanges were constructive overall but there is still work to be done, notably on cars and car parts, geographical indications, maritime transport and dairy. Read more 

WTO members focus on subsidies for fishing in overexploited stocks at June meetings

WTO: WTO members in the Negotiating Group on Rules on 11-14 June held their second cluster of meetings on fisheries subsidies this year, where they exchanged views and information on subsidies for fishing in overexploited stocks.  Read more 

EIF symposium looks at how to make trade more inclusive for LDCs

WTO: Representatives from 42 least-developed countries (LDCs) met at the first Global Forum on Inclusive Trade for LDCs taking place at the WTO on 13-14 June 2018 to seek ways to further integrate the world’s poorest countries into the multilateral trading system. Read more 

Trade Policy Review: Colombia

WTO: The fifth review of the trade policies and practices of Colombia took place on 12 and 14 June 2018. Read more 

Merkel and leaders of six multilateral agencies call for enhanced global cooperation

WTO: German Chancellor Angela Merkel hosted a meeting with the heads of six multilateral agencies on 11 June in Berlin to discuss ways to foster international economic cooperation to address global challenges and improve the prospects for inclusive and sustainable growth. Read more 

Liked this issue? To read past issues of our weekly Caribbean Trade & Development Digest, please visit here. To receive these mailings directly to your inbox, please follow our blog.

FDI inflows to SIDS grow for second consecutive year: UNCTAD Report

Alicia Nicholls

Foreign Direct Investment (FDI) inflows to Small Island Developing States (SIDS) rose to $4.1 billion in 2017, representing the second consecutive year of growth and buoyed by an 9% increase in inflows to the ten Caribbean SIDS which grew to $2.7 billion. This is according to the United Nations Conference on Trade and Development (UNCTAD) in the recently released 2018 edition of its World Investment Report.

Although the majority of countries in the region saw declines in FDI inflows, robust increases in Barbados (+25 per cent to $286 million), Saint Kitts and Nevis (+50 per cent to $127 million), and Trinidad and Tobago (from -$17 million in 2016 to $179 million in 2017) were responsible for the growth of 9%.

In total $5 billion in FDI flowed to the Caribbean subregion in 2017. The Dominican Republic was the main recipient of these flows ($3.6 billion) thanks to trade-related investments and its telecommunications and energy sectors, and to a lesser extent, a modest increase in free trade zone activity, UNCTAD Reports. Inflows to Haiti tripled to $375 million, which though still modest may be a sign of positive things to come as several infrastructure and other projects are in the pipeline.

UNCTAD cautioned, however, that FDI inflows to SIDS remain fragile and noted that several projects previously announced had not yet come to fruition. The intergovernmental body further noted that while policy developments to facilitate renewable energy projects were positive, the concentration of these might mean not all SIDS would reap the benefits.

Outflows

Four Caribbean countries also led SIDS globally with regard to FDI outflows, despite those countries each seeing declines in outflows. The Bahamas topped with outflows of $132.3 million, despite a 63.1% decline. In second place was Trinidad & Tobago which saw outflows of $84.2 (-143.6%). The Indian Ocean SIDS of Mauritius was third place ($61.5m, an increase of 1020%). In fourth and fifth place were Jamaica ($42.7m representing a 80% decline) and St. Lucia ($22.1m and a 208.1% decline).

Regional and global contexts

In the wider Latin America and Caribbean region, economic recovery buoyed an 8% increase in FDI inflows to $151 billion, reflecting the first increase in six years but still well below levels in 2011 during the commodities boom. Moreover, UNCTAD further tempered its prospects for FDI in Latin America and the Caribbean in 2018 due to macroeconomic and policy uncertainties.

The global scene is also much more subdued. Global FDI flows dropped 23% in 2017, a three-year low owing to a drop in cross-border mergers and acquisitions and despite growth in global trade and GDP. UNCTAD noted this negative outlook was of concern to policy makers, especially given the importance of FDI to many emerging economies’ sustainable industrial development.

FDI flows to developed economies were $712 billion, representing a fall of one third. FDI flows to developing economies, which accounted for 47% of global FDI inflows, up from 36% in 2016, remained steady rising to $671 billion in 2017.

The full report may be viewed here.

Alicia Nicholls, B.Sc., M.Sc., LL.B., is an international trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

Caribbean Trade & Development Digest – June 3-9, 2018

Welcome to the Caribbean Trade & Development Digest for the week of June 3-9, 2018! What a difference a week makes in the world of trade policy, it seems! From the CARICOM High Level Stakeholders’ Consultation on the implementation of the CARICOM Single Market to the tumultuous G7 Leaders’ Meeting, we are happy to bring the trade and development headlines from across the Caribbean Region and the world from last week:

REGIONAL

(Belize) Trade Minister Responds to CARICOM Sugar Call

Channel 5 Belize: On Tuesday, Briceño said G.O.B. should be doing more to export all Belizean sugar to CARICOM. According to Panton, Belize’s sugar has market access at duty free rates but what is lacking is market penetration. Read more

CSME implementation deficit not Secretariat’s fault – Golding

InewsGuyana: To blame the Caribbean Community (CARICOM) Secretariat for the gaps in implementation of the CARCIOM Single Market and Economy (CSME) was unfair, a former Prime Minister of Jamaica has said. Read more

St Vincent PM says T&T extracts most from CARICOM

Stabroek News: Stating that outstanding issues such as free movement of people and a co-ordinated foreign policy have to be resolved before CARICOM can move to a Single Economy, St Vincent and the Grenadines (SVG) Prime Minister Dr Ralph Gonsalves also cited Trinidad for drawing the most from the integration movement in an uneven relationship. Read more

Regional leaders have lost faith in CSME realisation

St. Lucia Times Online: CARICOM members have to become more practical in their approach to the concepts of the Caricom Single Market and Economy (CSME), St Vincent and the Grenadines Prime Minister Dr Ralph Gonsalves said Friday. Read more

Statement at the Conclusion of an IMF Staff Visit to Barbados

IMF: At the request of the newly elected Government of Barbados, an International Monetary Fund (IMF) team led by Bert van Selm visited Bridgetown on June 5-7, to have discussions on economic policies and possible IMF financial support of the government’s economic plan. Read more

Price hike expected due to trade tariffs

The Reporter: The cost of living in Belize could be taking another hit, as the price of various imported goods are in danger of going up due to an ongoing trade war among the United States, Mexico and Canada. Read more

Barbados pledges to play greater role in regional integration

CMC (via Jamaica Observer): Barbados on Tuesday said it would seek to play a greater role in the revitalisation of the regional integration movement, as the new government of Prime Minister Mia Mottley outlined its priorities for the next 12 months.  Read more

INTERNATIONAL 

Malaysia’s Mahathir calls for review of Trans-Pacific trade pact

CNBC: Malaysian Prime Minister Mahathir Mohamad called for a review of the Trans-Pacific Partnership trade agreement, saying smaller economies like Malaysia were at a disadvantage under the current terms. Read more

Trump against Rwanda in trade war over used clothes

Deutsche Welle: When East African countries announced a ban on the import of secondhand clothes to help their own textile industries, this irked US President Donald Trump. All but Rwanda have now backtracked. What’s at stake? Read more

Trump Wants Bilateral Nafta Talks But He Won’t Quit Accord

Bloomberg: President Donald Trump is seriously considering separate trade negotiations with Canada and Mexico but he doesn’t plan to withdraw from the North American Free Trade Agreement, White House economic adviser Larry Kudlow said. Read more

EU trade defence: stronger and more effective rules enter into force

European Commission: The changes which came into force last week are aimed at modernising the EU’s trade defence toolbox. Read more

EU-US Trade: European Commission endorses rebalancing duties on US products

European Commission: The College of Commissioners endorsed today the decision to impose additional duties on the full list of US products notified to the World Trade Organisation (WTO), as part of the EU’s response to the US tariffs on steel and aluminium products. Read more

EU and Chile complete third round of negotiations

European Commission: Negotiators met in Brussels from 28 May to 1 June for the 3rd round of negotiations for a new, modernised trade agreement between the EU and Chile. Read more

Azevêdo highlights ‘significant progress’ on trade finance, outlines further actions

WTO: Speaking at a meeting of the WTO Working Group on Trade, Debt and Finance on 8 June, Director-General Roberto Azevêdo highlighted the significant progress made in improving access to trade finance, in response to the persistent gaps in provision which affect small businesses and poorer countries in particular. Read more

Mexico initiates WTO dispute complaint against US steel, aluminium duties

WTO: Mexico has requested WTO dispute consultations with the United States regarding US duties on certain imported steel and aluminium products. The request was circulated to WTO members on 7 June. Read more

EU, Canada initiate WTO dispute complaints against US steel, aluminium duties

WTO: The European Union and Canada have requested WTO dispute consultations with the United States regarding US duties on certain imported steel and aluminium products. The requests were circulated to WTO members on 6 June. Read more

European Union files WTO complaint against China’s protection of intellectual property rights

WTO: The European Union has requested WTO consultations with China concerning certain Chinese measures which the EU alleges are inconsistent with China’s obligations under the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs). The request was circulated to WTO members on 6 June. Read more

EU initiates new WTO compliance proceedings over Airbus subsidies

WTO: The European Union has requested WTO dispute consultations with the United States to address the EU’s claim that the EU and its member states have complied with the WTO ruling on subsidies to Airbus which was adopted by the Dispute Settlement Body on 28 May. The request was circulated to WTO members on 06 June. Read more

South Africa Looks to Deepen Trade Ties with Canada Following G7 Summit

Footprint to Africa: South Africa is looking to deepen its trade relations with Canada following discussions at the G7 Summit, an annual high profile event that brings together seven of the wealthiest nations in the world. Read more

Africa bids to unlock trade finance potential

Africa Business Magazine: Efforts to create a free trade grouping date back to the establishment of the African Economic Community under the Abuja treaty in 1991. In this context, therefore, the CFTA should be celebrated. Nonetheless, it remains more of a beginning than an end to overcoming intra-African trade barriers. Read more

UNCTAD launches World Investment Report 2018 

UNCTAD: Global flows of foreign direct investment fell by 23 per cent in 2017. Cross-border investment in developed and transition economies dropped sharply, while growth was near zero in developing economies and with only a very modest recovery predicted for 2018. Read more

COMESA, IOM sign cross border trade agreement

Africa Business Communities: COMESA and International Organization for Migration (IOM) have signed a co-delegation Agreement on the implementation of the small scale cross border trade initiative in five border posts within the region. Read more

BONUS – Trade Tensions Escalate 

The leaders of the Group of 7 (G-7) wealthiest countries (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) met in Charlevoix, Quebec, Canada on June 8-9 against a backdrop of escalating trade tensions between the US and major allies, Mexico, Canada and the EU over the former’s imposition of steel and aluminium tariffs and threats of retaliation by the latter.

The official communique was signed by six countries, the US excepted. Specifically, the six signatories to the communique expressed their support for free trade and the rules-based multilateral trading system and denounced protectionism as follows:

“We acknowledge that free, fair and mutually beneficial trade and investment, while creating reciprocal benefits, are key engines for growth and job creation. We recommit to the conclusions on trade of the Hamburg G20 Summit, in particular, we underline the crucial role of a rules-based international trading system and continue to fight protectionism. We note the importance of bilateral, regional and plurilateral agreements being open, transparent, inclusive and WTO-consistent, and commit to working to ensure they complement the multilateral trade agreements. We commit to modernize the WTO to make it more fair as soon as possible. We strive to reduce tariff barriers, non-tariff barriers and subsidies.”

The full text of the communique may be accessed here.

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