Caribbean Trade Law and Development

Month: April 2019

  • WTO: Trade tensions pose greatest risk to trade growth

    WTO: Trade tensions pose greatest risk to trade growth

    Alicia Nicholls

    Rising trade tensions and economic uncertainty account largely for the deceleration in global trade growth experienced in 2018 and will continue to pose the greatest risk to growth in 2019. This is according to the World Trade Organization (WTO) in its latest Trade Statistics and Outlook released on April 2, 2019.

    As I had noted in my first blog post for the year, 2018 was without doubt a challenging  year for global trade policy. Among the highlights (or low lights) were the tariff tit for tat between the US and China until a truce in December 2018 brought a halt to the planned imposition of more tariffs, and the imposition by the US of punitive tariffs on steel and aluminium imports, which led to retaliation by other major powers, most notably, the EU.

    It is little surprise then that according to WTO economists, global trade under-performed in 2018 expanding by 3.0%, down from the 4.6% above-average growth recorded in 2017 and slower than the 3.9% which was projected for 2018 in their September 2018 forecast. The uncertainty has led to a dampening of investment and consumption. Weak import demand in Europe and Asia depressed global trade volume growth in 2018. Higher energy prices were partly responsible for the 10% increase in the value of merchandise trade in 2018.

    In his brief remarks during a press conference on the latest forecast, the WTO’s Director General, Mr. Roberto Azevedo, noted that “the fact that we don’t have great news today should surprise no one who has been reading the papers over the last 12 months. Of course there are other elements at play, but rising trade tensions are the major factor”.  The Director General further explained that the range of new and retaliatory measures tariffs introduced affected widely trade goods. Other factors which affected global trade growth in 2018 were the weaker global economic growth, volatility in financial markets and tighter monetary conditions in developed countries, among others.

    World commercial services trade was much more positive with the value rising 8% in 2018 on the back of strong import growth in Asia.

    Looking forward, WTO economists now forecast world merchandise trade growth to slow further to 2.6% in 2019, which is a downward revision from their forecast of 3.7% in September 2018. WTO economists estimate some pickup in trade growth to 3.0% in 2020, with stronger growth predicted for developing economies than developed ones.

    They, however, caution that this forecast could be affected negatively if trade tensions continue to escalate, or positively if they ease. Director General Azevedo reiterated that “it is therefore increasingly urgent that we resolve tensions and focus on charting a positive path forward for global trade which responds to the real challenges in today’s economy”.

    The full forecast may be viewed here, while Mr. Azevedo’s remarks are available 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.

  • CTLD Blog rated among Top 30 Caribbean Blogs to follow in 2019!

    BRIDGETOWN, April 2, 2019 – The Caribbean Trade Law & Development (CTLD) Blog has been rated number 10 on Feedspot‘s Top 30 Caribbean Blogs, News Websites & Newsletters To Follow in 2019. 

    caribbean_1000pxIt is the most comprehensive list of best Caribbean blogs on the internet. Out of thousands of Caribbean-focused blogs, news sites and newsletters online, Feedspot ranked the top 30 winners on the following four criteria: Google reputation and Google search ranking; influence and popularity on Facebook, twitter and other social media sites; quality and consistency of posts and Feedspot’s editorial team and expert review.

    Founder of the CTLD Blog, Miss Alicia Nicholls, was happy and humbled by the Blog’s inclusion on this list. An international trade and development consultant, Miss Nicholls created the blog in 2011 to share trade and development information of specific interest to the Caribbean. The Blog’s signature weekly Caribbean Trade & Development Digest newsletter was created in 2016.

    While the Blog’s content is primarily Caribbean focused, its readership has quickly grown to include academics, practitioners, students and other persons from across the world. Miss Nicholls expresses her gratitude to the Feedspot Editorial Team as well as the Blog’s readers for their support.

    Congratulations to all winners! The full list of top 30 Caribbean blogs may be found here.

                                                                – END-

  • Caribbean Trade & Development Digest – March 24-30, 2019

    Caribbean Trade & Development Digest – March 24-30, 2019

    Welcome to the Caribbean Trade & Development Digest for the week of March 24-30, 2019! We are happy to bring you the major trade and development headlines and analysis from across the Caribbean Region and the world from the past week.

    REGIONAL

    UK signs trade continuity agreement with Caribbean countries

    UK Government: UK businesses and consumers will benefit from a trade continuity agreement maintaining current arrangements with countries in the Caribbean soon after Britain leaves the EU. Read more 

    Ring the alarm: Diversification of Caribbean Export must take priority

    Barbados Today: According to International Trade Attorney Magda Theodate, there are four major economic storm clouds keeping the Caribbean sun from shining over the heads of CARICOM’s 15-member state governments, and their even more vulnerable neighbours. Swift action is needed to ensure better times ahead for the people of the region. Read more 

    Bahamas delegation to attend 4th WTO accession meeting

    Eye Witness News: The Government of The Bahamas wishes to advise that a delegation is attending the 4th Meeting of the Working Party on the accession of The Bahamas to the World Trade Organization (WTO) on April 5, 2019 in Geneva, Switzerland. Read more 

    Poultry Producers In Push For Quotas

    Tribune 242: A Bahamian poultry producer yesterday revealed it is “pushing” for chicken imports to be regulated by quotas rather than the current tariff system as The Bahamas’ march to WTO accession continues. Read more 

    Caribbean Countries urged to take more advantage of EPA

    TV6 T&T: Former Barbados prime minister, Owen Arthur, says Caribbean Community regional countries have failed to take full advantage of the 10-year-old Economic partnership Agreement (EPA) signed between the Caribbean Forum (CARIFORUM) and the European Union. Read more 

    Belize’s bananas safe from Brexit fallout

    Breaking Belize News: The newly signed EPA is good news for Belize’s banana industry because the UK is the major importer of Belize’s bananas, importing as much as 69 percent of Belizean bananas in 2017. Regional media outlets noted that producers of rum are also glad that trade will continue uninterrupted. Read more 

    No big deal

    Barbados Today: Former Prime Minister Owen Arthur is warning Caribbean leaders not to expect a major trade deal with the UK when it leaves the European Union (EU). Read more 

    INTERNATIONAL

    U.S. to push for comprehensive free trade agreement as it looks to open up Japan’s agriculture market

    Japan Times: U.S. President Donald Trump said Tuesday his administration will push for a comprehensive free trade agreement with Japan and signaled his eagerness to seek a further opening of the country’s agriculture market. Read more 

    Solomon Islands eyes more trade with Indonesia

    Radio New Zealand: It came after trade talks held between Indonesia and several Pacific Island nations last week in Jakarta. Colin Beck, a permanent secretary with the Solomon Islands Foreign Ministry, said his government wanted to open port-to-port trade in Indonesia. Read more

    Australia to sign free trade deal with Hong Kong

    The Sydney Morning Herald: Australia will sign a new agreement covering $18.8 billion in free trade with Hong Kong on Tuesday, as Labor prepares to officially back the Australia-Indonesia free trade deal if it wins government. Read more 

    Is Brexit an opportunity to revive the EU-India trade deal?

    The Conversation: The European Union and India have been negotiating a free trade agreement (FTA) since 2007. Despite growing trade between the EU and India, talks stalled in 2013 after 16 rounds, only resuming in 2018. Read more 

    China Touts Progress With U.S. as Both Focus on a Final Deal

    Bloomberg: Chinese and U.S. negotiators made “new progress” in trade negotiations as both sides discussed the wording of an agreement that’s designed to resolve a bilateral trade dispute, according to Beijing’s official news agency Xinhua. Read more

    Bipartisan Support Seen for a US-Taiwan Free-trade Deal

    VoA: Influential figures in Washington are calling for the establishment of a bilateral free-trade agreement with Taiwan, even as U.S. and Chinese officials move toward a resolution of their long-running trade dispute.  Read more

    USMCA is Not a Done Deal. It Must Still Clear Three Legislative Hurdles

    Atlantic Council: On November 30, the leaders of the United States, Canada, and Mexico signed the US-Mexico-Canada Trade Agreement (USMCA), modernizing the 1994 North American Free Trade Agreement (NAFTA) and “rebalancing” trade relations between the three countries, according to the US administration. Before the new pact officially takes effect, however, the legislatures of all three countries need to approve the agreement. Read more 

    ECOWAS urges member states to sign AfCFTA

    Journal du Cameroun: The Director of Trade, Economic Community of West African States (ECOWAS), Mr. Gbenga Obideyi, has called on member states to sign the African Continental Free Trade Agreement (AfCFTA) to ensure the preservation of the ECOWAS acquis.Obideyi made the call in Abuja on Thursday during a national validation workshop on the study conducted by the National Association of Nigerian Traders (NANTS) on Articulating Nigeria’s Agricultural Trade Strategies for the AfCFTA Negotiation. Read more 

    AfCFTA: One year down the road, there’s reason for celebration

    The New Times: Stephen Karingi, ECA’s Director for Regional Integration and Trade spoke to The New Times’ James Karuhanga, shedding light on what is expected between now and the next African leaders’ summit in Niamey, Niger in July. Read more 

    Is AfCFTA Good for Africa? Experts Shared Their Views at the 2019 Oxford Business Forum Africa

    African Exponent: Hosted by the School’s Oxford Africa Business Alliance, the event explored the implications of the African Continental Free Trade Agreement (AfCFTA) on the development and ease of doing business on the continent. Read more 

    UK exports to India grow at fastest rate among non-EU trading partners

    Business Standard: UK’s exports to India increased at the fastest rate among the country’s top trading partners outside the European Union (EU), with a 19.3 per cent hike in goods and services trade in 2018, according to official figures. Read more 

    Report on EU Trade Defence

    European Commission: The Juncker Commission has strengthened Europe’s trade defence toolbox through two major reforms. Since 2014, it has also applied 95 measures to ensure that European companies and workers can compete on fair terms. Two-thirds of all the 135 measures in place concern imports from China. Read more 

    ACP’s efforts post-Cotonou must be economically sustainable – Tweya

    New Era Live: Namibia has reaffirmed its commitment to the African, Caribbean and Pacific (ACP) and European Union (EU) partnership and says it will do all it can to honour and work toward the commitments embodied in the Cotonou Agreement and post-Cotonou when it expires in 2020. This was the message by Minister of Industrialisation, Trade and SME Development, Tjekero Tweya, when he spoke on Wednesday at the 37TH session of ACP-EU Joint Parliamentary Assembly that took place in the Bucharest, Romania. Read more 

    WTO NEWS

    Appellate Body issues report on US compliance in the Boeing dispute

    On 28 March the WTO’s Appellate Body issued its report on US compliance in the dispute brought by the European Union in “United States — Measures Affecting Trade in Large Civil Aircraft — Second complaint” (DS353). Read more

    Guatemala initiates WTO dispute complaint against Indian sugar subsidies

    Guatemala has requested WTO dispute consultations with India regarding domestic support measures and alleged export subsidies provided by India to producers of sugarcane and sugar. The request was circulated to WTO members on 25 March. Read more 

    The Caribbean Trade & Development Digest is a weekly trade news digest published by the Caribbean Trade Law & Development Blog. Liked this issue? To read past issues, please visit here. To receive these mailings directly to your inbox, please follow our blog.