Caribbean Trade Law and Development

Month: March 2020

  • Caribbean Trade & Development News Digest – March 22-28, 2020

    Caribbean Trade & Development News Digest – March 22-28, 2020

    Welcome to the Caribbean Trade & Development News Digest for the week of March 22-28, 2020! 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.

    THIS WEEK’S HIGHLIGHTS

    The COVID-19 pandemic continues to dominate regional and international headlines. In the Caribbean, several countries have now implemented states of emergency and instituted curfews.

    According to the IMF, the world economy has entered a recession that will be at least as bad as during the global financial crisis or worse. Watch the IMF’s video here. The IMF has also launched a COVID-19 policy tracker which may be accessed here.

    Updated estimates by UNCTAD on COVID-19’s economic impact now suggest that the downward pressure on FDI flows could range from -30% to -40% during 2020-2021, much higher than the previous projections of -5% to -15%. Read here

    The G20 has agreed to inject over $5 trillion into the global economy to counteract the social, economic and financial impacts of the pandemic. The full statement from the Extraordinary G20 Summit may be read here.

    The WTO has not only launched a special page dedicated to COVID-19 and world trade on its website but has asked members to notify COVID-19 trade-related policy measures. A list of these measures may be found here.

    On March 27, 2020, several Members of the World Trade Organization (WTO) agreed on a stop gap measure to ensure the continuation of a two-step system for the peaceful and orderly settlement of trade disputes amongst them at the WTO. The new temporary arrangement agreed on, known as the Multiparty Interim Appeal Arbitration Arrangement (MPIA), is based on Article 25 of the WTO’s Dispute Settlement Understanding. Read more here.

    REGIONAL NEWS

    Jamaica: $2 Billion Grant For Tourism, Small Business Operators

    Magnetic Media: Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, has announced the provision of approximately $2 billion in grant assistance for tourism and small businesses impacted by the Coronavirus (COVID-19) outbreak in Jamaica. Read more

    Responding To The COVID-19 Pandemic: Jamaica Will Recover” Statement From JAMPRO Chairman, Senator Don Wehby

    JIS: These are unprecedented times. The Coronavirus disease 2019 (COVID-19) has wreaked havoc globally with the way we live and our way of doing business. Read more

    Guyana paid US$55M for first oil cargo -royalties expected next month

    Stabroek: Guyana has been paid US$55 million for its first cargo of crude oil sold in February and the country will receive royalties from production by ExxonMobil in its Liza-1 field on the offshore Stabroek Block next month. Read more

    Guyana operations could take a ‘hit’ from Exxon’s Coronavirus measures

    Stabroek: The outbreak and subsequent spread of the Coronavirus has had a “devastating effect” on the global oil & gas industry and the likelihood that the effects could be felt in the current phase of Guyana’s fledgling oil & gas sector, which is proceeding under the control of the US super major, ExxonMobil, cannot, it seems, be ruled out. Read more

    INTERNATIONAL NEWS

    G20 pledges $5 trillion to defend global economy against COVID-19

    Al Jazeera: In a show of crisis unity, leaders commit to implement and fund all health measures needed to stop the virus’s spread. Read more

    WTO sees sharp fall in trade, calls for global solutions to tackle COVID-19 crisis

    Economic Times: WTO Director-General Roberto Azevedo said cross-border trade and investment flows have a role to play in efforts to combat the COVID-19 pandemic, and will be vital for fostering a stronger recovery once the medical emergency subsides. Read more

    IMF chief Georgieva says the world is in a recession, containment will dictate strength of recovery

    CNBC: International Monetary Fund chief Kristalina Georgieva said Friday that the global economy is now in a recession thanks to COVID-19, but that she’s heartened to see world leaders finally realizing that only a coordinated effort will be able to stem the spread of the novel coronavirus. Read more

    Brexit: EU-UK meeting to go ahead via video link

    BBC: A post-Brexit meeting between the EU and UK will go ahead as planned next week, despite the coronavirus crisis. Read more

    Kenya-US Free Trade Agreement challenged at regional court

    Ventures Africa: Kenya’s plan to sign a free trade deal with the United States is set for a long legal tussle after two lawyers challenged the controversial move at the East African Court of Justice. Christopher Ayieko and Emily Osiemo filed a petition at the regional court challenging the proposed Free Trade Agreement, which is seen as a violation of the East African Community (EAC) Treaty and its protocols. Read more

    AUC swears in AFCFTA Secretary General

    GhanaWeb: Mr Wamkele Mene, the newly elected Secretary-General of the African Continental Free Trade Area (AfCFTA) Secretariat has been sworn-in Thursday to give him legitimacy to commence business. Read more

    AfCFTA secretary-general urges Africa to seize trade opportunity

    CGTN: The Secretary-General of the African Continental Free Trade Area (AfCFTA) Wamkele Mene urged Africa not to be discouraged by disruptive effects of the coronavirus pandemic from a trade perspective. Read more

    Assessing the economic impacts of COVID-19 on ASEAN countries

    East Asia Forum: The effects of COVID-19 are hitting ASEAN economies at a time when other risk factors, such as a global growth slowdown, were already rising. Read more

    Oil Below $20 Will Wipe Over 10% Off Many Exporting Countries’ GDP

    Forbes: The oil market has taken a hammering in recent months following a slump in crude demand caused by the global coronavirus or CoVid-19 pandemic and the collapse, on March 6, of market co-operation between Saudi and Russian-led group of OPEC and non-OPEC exporters dubbed OPEC+ by the wider market. Read more

    WTO chief sees sharp fall in trade, calls for global solutions to COVID-19 crisis

    Xinhua: Seeing a very sharp decline in global trade, Roberto Azevedo, director-general of the World Trade Organization (WTO), on Wednesday said a global solution is needed to address the global challenge brought about by the COVID-19 pandemic. Read more

    Brexit: UK ‘will not seek trade talks extension’ despite Barnier having COVID-19

    Euronews: London insists it won’t request an extension to EU-UK trade talks despite the EU’s lead negotiator Michel Barnier announcing he has contracted COVID-19. Read more

    Should Coronavirus Delay Brexit Trade Talks?

    Forbes: Untangling a relationship four decades in the making, the post-Brexit trade talks were never going to be easy. Throw in a suffocatingly tight time frame—significant progress by June, completion by December—and things looked trickier still. Read more

    APEC economies urged to end trade-restrictive policies to help fight COVID-19

    China.org: Asia-Pacific Economic Cooperation (APEC) economies must put an end to trade-restrictive policies to help fight COVID-19, the APEC Business Advisory Council (ABAC) said on Saturday. Read more

    Singapore, 6 other Pacific countries pledge to keep trade, supply chains going during Covid-19 crisis

    Business Times: Singapore and six other Pacific Rim countries have pledged to keep their supply chains open during the Covid-19 pandemic, despite ongoing shocks to trade flows. Read more

    STRAIGHT FROM THE WTO

    NEW ON THE CTLD BLOG

    The Caribbean Trade & Development Digest is a weekly trade news digest produced and 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 subscribe to our Blog below:

  • What COVID-19 trade measures have WTO members notified so far?

    What COVID-19 trade measures have WTO members notified so far?

    Alicia Nicholls

    The World Trade Organization (WTO) has this week called on Members, including those in the Caribbean, to notify trade and trade-related measures they are implementing nationally to fight the spread of COVID-19 and to support their economies during these unprecedented times.

    This is part of the WTO’s efforts to monitor the impact of the COVID-19 crisis on global trade. It is also consistent with the WTO’s role as the guardian of the multilateral trading system by, inter alia, promoting transparency of Members’ trade laws and policies.

    To this end, both this initiative and the Director General’s decision to establish a special taskforce of experts from across the WTO Secretariat to monitor the impact of COVID-19 on trade flows and the overall global economy are welcomed.

    What has been notified so far?

    According to the WTO’s new COVID-19 and world trade page, the following Members have notified trade/trade-related COVID-19 measures thus far: Albania, Brazil, Kyrgyz Republic, Mauritius, Indonesia, Kazakhstan and the Russian Federation.

    As many countries turn inward to fight the outbreak, it is little surprise, though unfortunate, that many of the notified measures are trade-restricting. The majority of measures have been notified as technical barriers to trade (TBTs), but sanitary and phytosanitary (SPS) measures and quantitative restrictions have also been notified. Several of the notifications relate to export bans or licensing arrangements for the export of medical equipment, while others restrict imports of live fish and fish products, mammals and exotic pets from certain affected countries, particularly China where the virus originated.

    WTO Secretariat List of Members’ Trade-related COVID-19 measures

    The WTO Secretariat has also compiled its own list of Members’ trade and trade-related COVID-19 measures based on official and other public sources. The list as at March 26 may be found here.

    In addition to some trade-restrictive measures, the list shows that there have also been some trade-enabling measures implemented, such as reductions or eliminations of customs duties on medical supplies.

    Another example of a trade-enabling measure is Argentina’s suspension of its anti-dumping duty on imports of hypodermic syringes from China and parenteral solutions from Brazil and Mexico.

    The wider perspective

    More broadly, there has been growing concern over bans or restrictions being implemented by some countries on the export of medical supplies, such as pharmaceutical drugs, disinfectants and face masks. An insightful analysis by Global Trade Report (2020) found that “as of 21 March 2020, 46 export curbs on medical supplies have been introduced by 54 governments since the beginning of the year”.

    Let us consider a few examples. The European Union (EU) has temporarily introduced export authorisation requirements for exports of personal protective equipment outside of that bloc. Amidst a surge in global demand, India has announced an export ban on the anti-malarial drug hydroxychloroquine, believed by some to be a possible cure for COVID-19 but this remains scientifically unproven. The United Kingdom (UK) has banned the parallel exporting of certain medicines critically for treating COVID-19 patients in intensive care units.

    Export bans are now being extended to food items, which the United Nations Food and Agriculture Organisation (FAO) has warned could cause a global food shortage. For instance, in order to ensure enough rice supplies during the COVID-19 outbreak, Vietnam has halted the signing of new rice export contracts until March 28th. Kazakhstan has banned the export of key food items.

    What about the Caribbean?

    Although announced as temporary measures, these developments are particularly disconcerting for import-dependent small States like those in the Caribbean which not only rely on the importation of food products, but depend on the importation of medical supplies needed to combat the spread of the highly contagious virus. These export bans and restrictions will not only restrict the availability of these needed medical supplies, but make sourcing them more expensive, with dire implications for affected importing countries’ ability to save lives.

    How have Caribbean countries responded to the COVID-19 crisis to date? No Caribbean WTO Member has notified any COVID-19 trade-related measures so far. Indeed, Caribbean countries’ policy responses to the crisis have been largely in the form of fiscal stimulus packages and economic and social support for affected workers and businesses, as opposed to any export-related measures.

    Nonetheless, to assist the WTO Secretariat in its monitoring of Members’ trade/trade-related COVID-19 policy responses and to comply with our general notification obligations under the various WTO Agreements, it is advisable that our governments notify any COVID-19 trade/trade-related measures or economic support measures which may have a possible trade impact.

    Caribbean countries should also advocate for greater international cooperation to ensure that they and other poorer countries are able to access needed medical supplies and foods.

    Alicia Nicholls, B.Sc., M.Sc., LL.B., is an international trade and development consultant. You can also read more of her commentaries at www.caribbeantradelaw.com and follow her on Twitter @LicyLaw.

    DISCLAIMER: All views expressed herein are her personal views and do not necessarily reflect the views of any institution or entity with which she may be affiliated from time to time.

  • Several WTO Members agree on interim appeal arrangement for dispute settlement

    Several WTO Members agree on interim appeal arrangement for dispute settlement

    Alicia Nicholls

    On March 27, 2020, several Members of the World Trade Organization (WTO) agreed on a stop gap measure to ensure the continuation of a two-step system for the peaceful and orderly settlement of trade disputes amongst them at the WTO.

    Readers would recall that in December 2019 the WTO Appellate Body lost the quorum needed for hearing new appeals from panel reports and is no longer functioning. It is the sad culmination of the US’ blockage of appointments/re-appointments to the normally seven-member body in protest over alleged judicial overreach.

    What’s the Multiparty Interim Appeal Arbitration Arrangement?

    The new temporary arrangement agreed on today, known as the Multiparty Interim Appeal Arbitration Arrangement (MPIA), is based on Article 25 of the WTO’s Dispute Settlement Understanding. The MPIA will be based on the substantive and procedural aspects of the Appellate Body. Any Member may join the MPIA upon notification of endorsement of the communication to the Dispute Settlement Body. The arrangement will be in place as long as the Appellate Body remains defunct.

    This interim appeal initiative, which was spearheaded by the EU, is further to a statement which was made on January 4, 2020 at Davos in which the EU and then sixteen other WTO Members agreed to work on such an arrangement.

    Who’s already in?

    In addition to the EU, the fifteen other WTO Members which have already signed on are: Australia; Brazil; Canada; China; Chile; Colombia; Costa Rica; Guatemala; Hong Kong, China; Mexico; New Zealand; Norway; Singapore; Switzerland; and Uruguay. No Caribbean country has signed on as yet.

    For further information

    The Ministerial Statement may be accessed here.

    The full text of the Multiparty Interim Appeal Arbitration Arrangement may be read here.

    Alicia Nicholls, B.Sc., M.Sc., LL.B., is an international trade and development consultant. You can also read more of her commentaries at www.caribbeantradelaw.com and follow her on Twitter @LicyLaw.

    DISCLAIMER: All views expressed herein are her personal views and do not necessarily reflect the views of any institution or entity with which she may be affiliated from time to time.

  • COVID-19: How have Caribbean governments responded so far?

    COVID-19: How have Caribbean governments responded so far?

    Alicia Nicholls

    Declared a pandemic by the World Health Organisation (WHO) on March 11, 2020, the COVID-19 outbreak has now spread to well over 100 countries worldwide, including most Caribbean countries. As of March 22, Belize and St. Kitts & Nevis are the only English-speaking Caribbean countries to have not yet reported a confirmed COVID-19 case.

    Globally, the number of confirmed cases is over 300,000. In the Caribbean, the number is over 300 (if the Dominican Republic and Cuba are included). Detailed COVID-19 statistics for each English-speaking Caribbean country as at March 21, may be found here.

    While the number of cases and deaths in the Caribbean currently remain low compared to other regions, the economic fall-out is far more daunting. Tourism associations across the region have reported booking cancellations, a reduction in flight bookings and the real possibility of some accommodations having to close their doors temporarily. Similarly, many businesses across the region have begun to feel the economic pinch from declining patronage and event cancellations.

    This article takes a brief look at some of the various policy responses instituted by Caribbean governments so far to mitigate the human and economic impact of the highly contagious virus.

    Caribbean Government Policy Responses

    As the COVID-19 pandemic spreads across Caribbean shores, regional governments have stepped up their responses which vary according to the severity of the outbreak in the country concerned.

    Based on media reports and government public announcements, below is a non-exhaustive list of some of the major COVID-19 policy measures implemented by Caribbean governments to date:

    A. Containment Policies

    1. Mandatory quarantining of all travellers (both nationals and foreigners) coming from selected countries – mainly the US and Europe, China, South Korea, and Iran e.g: Barbados
    2. Temporary restrictions of entry of foreign nationals from selected countries e.g: many Caribbean countries
    3. Restrictions on non-essential travel by nationals to certain affected countries e.g: many Caribbean countries
    4. Suspension of international flights or flights from certain countries e.g: Dominican Republic, Jamaica, Trinidad & Tobago
    5. Refusal of docking for cruise ships with cases of respiratory illness onboard e.g: most Caribbean countries now
    6. Temporary closures of land borders, and most or all ports of entry (except for citizens or permanent residents returning home – they will be placed in quarantine on arrival) e.g: Belize, Dominican Republic, Jamaica, Suriname, Trinidad & Tobago
    7. Restrictions on mass events, public gatherings and public events over a certain number of persons, e.g: in Barbados the number is now restricted to 25 persons
    8. Closure of beaches e.g: Tobago has closed beaches to control public gatherings
    9. Mandatory closures of bars, restaurants, casinos e.g: Jamaica, Trinidad & Tobago
    10. Restrictions on public visits at hospitals, polyclinics and geriatric hospitals e.g: Barbados, Trinidad & Tobago
    11. Temporary closures of schools and other educational institutions e.g: several Caribbean countries
    12. Declaration of state of emergency e.g: Haiti, Dominican Republic
    13. Imposition of curfew with penalties for non-compliance e.g: The Bahamas, Haiti

    B. Communication Policies

    1. Establishing dedicated COVID-19 hotlines e.g: several Caribbean countries
    2. Regular press briefings on the status of the outbreak in the country and measures being taken e.g: Barbados
    3. Public service announcements/campaigns e.g: many Caribbean governments are running public service announcements on respiratory hygiene and social distancing

    C. Social and Economic Policies

    1. Stimulus package e.g: the Government of Barbados, which is currently undergoing an IMF-sanctioned adjustment programme, announced a BBD $20 million stimulus package to assist people and businesses impacted by the outbreak. The Jamaica government has also outlined a JAM $25 billion fiscal stimulus package.
    2. Tapping into disaster funds e.g: Cayman Islands has tapped into its National Disaster Fund to set aside $3 million for its COVID-19 response.
    3. Anti-price gouging policies e.g: Barbados has instituted a COVID-19 basket of goods
    4. Additional benefits for affected workers, such as extending the period of non-certified sick leave and increasing the duration period of unemployment benefits e.g: Barbados
    5. Providing assistance to affected families and small businesses e.g: increasing welfare cheques and recapitalising funds for assisting businesses
    6. Enlisting private sector and civil society support
    7. Reinstatement of standpipes e.g: Dominica
    8. Efforts to stimulate local food production e.g: The British Virgin Islands has set aside $2 Million to stimulate local food production and assist fisherfolk under its stimulus package “The Rapid Response Fishing and Farming Production Programme”.

    D. Providing external assistance to other affected countries

    Cuba has reportedly sent 144 health care workers to assist affected countries.

    This article will be updated periodically .

    Alicia Nicholls, B.Sc., M.Sc., LL.B., is an international trade and development consultant. You can also read more of her commentaries at www.caribbeantradelaw.com and follow her on Twitter @LicyLaw.

    DISCLAIMER: All views expressed herein are her personal views and do not necessarily reflect the views of any institution or entity with which she may be affiliated from time to time.