Caribbean Trade Law and Development

Author: caribbeantradelaw

  • CARICOM & Cuba Foreign Ministers meet

    CARICOM & Cuba Foreign Ministers meet

    Alicia Nicholls

    Foreign Affairs ministers of the Caribbean Community (CARICOM) and the Republic of Cuba met at the iconic Tryp Habana Libre Hotel in Havana, Cuba, on March 11, 2017, for the Fifth Ministerial Meeting of CARICOM-Cuba. As noted in the official communique, the meeting also marks the commemoration of the Forty-fifth Anniversary of the Establishment of Diplomatic Relations between the Independent States of CARICOM and Cuba and the Fifteenth Anniversary of Cuba-CARICOM Day.

    Discussion items at the Meeting touched on climate change, cooperation in areas of mutual concern such as food security, education and health, solidarity with the Republic of Haiti, reparations for slavery, CARICOM countries’ inclusion on the EU’s list of non-cooperative tax list, the promotion of sustainable tourism, migrants’ rights, inter alia.

    Caribbean countries have been among the most vocal supporters of Cuba in the face of the illegal US embargo. The official communique concluded with a call for “the President of the United States to use his broad executive powers to substantially change the application of the blockade and the Congress of that country to proceed with its elimination”.

    Ministers also acknowledged the legacies of the late former Cuban President, Dr. Fidel Castro, and former Trinidad & Tobago Prime Minister, Patrick Manning, who died last year, and the former Haitian President, Rene Preval who passed away last week.

    The full communique may be viewed here.

    Alicia Nicholls, B.Sc., M.Sc., LL.B., is a 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.

     

  • De-Risking: The ‘Perfect Hurricane’ Threatening Caribbean IFCs

    De-Risking: The ‘Perfect Hurricane’ Threatening Caribbean IFCs

    Alicia Nicholls

    My latest publication is an article entitled “De-Risking: The ‘Perfect Hurricane’ Threatening Caribbean IFCs” in the forthcoming IFC Review 2017. It discusses the implications of the de-risking phenomenon for Caribbean international financial centres (IFCs) and some of the steps they have been taking to fight it. An excerpt from the article is as follows:

    “Caribbean offshore international financial centres (IFCs) are adept at navigating turbulent global waters. The de-risking practices by global banks, manifested most damagingly by the restriction or termination of correspondent banking relationships (CBRs), can be likened to a hurricane threatening to churn already rough seas into a maelstrom, with implications for Caribbean IFCs’ long-term viability. In this article, I will discuss the impact of de-risking on Caribbean IFCs and what is being done so far to address the impact.”

    The full version of the article is available online on IFC Review’s website and may be viewed here.

    To read more of my work, please also see the Papers & Articles section of this blog.

    Alicia Nicholls, B.Sc., M.Sc., LL.B., is a 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 – February 26 – March 4, 2017

    Caribbean Trade & Development Digest – February 26 – March 4, 2017

    Source: Pixabay

    Welcome to the Caribbean Trade and Development Digest for the week of February 26-March 4, 2017!  I am pleased to share some of the major trade and development headlines and analysis from across the Caribbean region and the World.

    For past issues of our weekly Caribbean Trade & Development Digest, please visit here.

    To receive these mailings directly to your inbox, please follow our blog.

    REGIONAL

    Guyana and Cuba increase friendly relations

    Prensa Latina: Representatives for Guyana and Cuba ratified in this capital both countries” willingness to continue strengthening the traditional friendly and cooperation relations, diplomatic sources reported today. Read more

    Amendments to ECCU Banking Act likely

    WINN FM: Regulators and financial institutions have agreed that there are some aspects of the Banking Act passed in all Eastern Caribbean Currency Union (ECCU) member countries in 2015, that need to be amended. Read more

    Cuba’s Mariel port seeks China push

    China daily: These days, giant Chinese-built cranes briskly unload shipping containers from cargo ships at Cuba’s deep-water port of Mariel, a fledgling special economic zone the country hopes will drive development over the coming years. Read more

    Chastanet calls for OECS Action

    WINN FM: St Lucia’s Prime Minister Allen Chastanet is pointing to the many challenges facing his country and the rest of the OECS. Read more

    Rabbani for deep political, trade ties with Cuba

    The News: Pakistan and Cuba have agreed to maintain upward trajectory in bilateral relations witnessed in the recent past. Read more

    Couple seeks $38m for Dominican Republic’s project block

    Law360: An American couple is asking an international arbitration panel for more than $37 million from the Dominican Republic for allegedly obstructing the expansion of a gated mountain community in favor of politically connected competitors, saying environmental concerns raised by the government have no merit.  Read more

    CARICOM preparing for UNCLOS

    Jamaica Gleaner: Caribbean Community (CARICOM) countries have been fine-tuning their positions ahead of the next Preparatory meeting of the United Nations (UN) meeting to establish an international legally binding agreement on sustainable use of marine resources. Read more

    CAPRI To monitor more CARICOM States

    Jamaica Gleaner: Co-Executive Director of the Caribbean Policy Research Institute (CaPRI), Dr Damien King, has engaged a number of CARICOM countries on the monitoring of their progress towards the Global Sustainable Development Goals. Read more

    Americans buying cigars by the thousands in Cuba

    VOA:Puffing on a cigar at Cuba’s annual Habanos cigar festival, American aficionado Paul Segal said he would buy as many boxes of cigars as he could carry home in case U.S. President Donald Trump tightens regulations on visitors to the communist-run island again. Read more

    CARICOM, Korea commit to areas of closer cooperation

    Jamaica Observer: The Caribbean Community (CARICOM) and the Republic of Korea have agreed to several areas for closer cooperation. Read more

    INTERNATIONAL

    Future of AGOA Uncertain in Trump era

    Atlantic Star: What will trade with Africa look like under a Trump presidency? African leaders are concerned that the African Growth and Opportunity Act, or AGOA, will be on the chopping block under Trump and that the continent itself will not be a priority. Read more

    East Africa: Magufuli Stance on EU-EAC Trade deal could split bloc

    AllAfrica: Tanzania has yet again refused to endorse a regional trade pact with the European Union, saying the deal stood in its way to industrialization. Read more

    Canada launches consultations on free trade with China

    CTV: The federal government is launching consultations on a potential free trade agreement with China.Prime Minister Justin Trudeau and Chinese Premier Li Keqiang announced the beginning of exploratory discussions in September. Read more

    Envoy pushes for EU-Philippines free trade agreement

    Inquirer: European Union (EU) Ambassador Franz Jessen on Thursday called for speedy negotiations for a Free Trade Agreement (FTA) between the EU and the Philippines to create the “best possible enabling environment” for business. Read more

    Russia to facilitate drafting the EAEU-Egypt deal

    Sputnik: Russia will seek to greatly facilitate the drafting of a free trade agreement between the Russia-led Eurasian Economic Union and Egypt, Russian upper house speaker Valentina Matvienko said Saturday. Read more

    Investment treaty before trade pact, says Canada to India

    Hindu Business Line: Canada is throwing its weight behind an early “progressive” bilateral investment treaty (BIT) with India before it concludes a bilateral free trade agreement (FTA) to ensure a stable and predictable environment for its investors. Read more

    Korea, MERCOSUR to launch trade talks in first half

    The Korea Herald: South Korea and the South American trade block MERCOSUR will launch their official negotiations on a trade pact before the first half of this year, the trade ministry here said Friday, amid the country’s efforts to tap deeper into the region. Read more

    Canada’s Trudeau defends NAFTA

    CNBC: Canadian Prime Minister Justin Trudeau said Friday that both the United States and Canada depend on the North American Free Trade Agreement, a deal repeatedly slammed by President. Read more

    Maersk expecting earnings rebound

    Global Trade Mag: Maersk Line expects its net earnings to rebound by over $1 billion from a loss of $384 million in 2016 to a net profit in 2017. Read more

    Ottawa takes another step toward free trade agreement with China

    Global News: The federal government has taken another step toward a free-trade agreement with China, officially launching three months of consultations that will help it determine “how to best proceed” with the possible deal. Read more

    China’s THAAD retaliation may be in violation of WTO, FTA rules, says minister

    The Investor: A recent series of retaliatory economic actions taken by China against South Korea may be in violation of international trade law as well as their bilateral trade pact, Foreign Minister Yun Byung-se said March 5, alluding to Seoul’s possible move to bring the cases to an international court. Read more

    Theresa May must guarantee rights of EU citizens to remain in UK, says MPs

    Evening Standard: Theresa May is facing renewed pressure from MPs to guarantee the rights of more than three million EU citizens to remain in the UK. Read more

    Trump administration sheds light on what revamp of NAFTA may entail

    Huffington Post: Donald Trump’s new point man on trade negotiations has shed some light on key goals in revamping the North American Free Trade Agreement, hinting Friday that priority No. 1 involves more automobile parts sourced close to home. Read more

    Brexit Bill: Theresa May faces another defeat in House of Lords

    Independent: Peers say Theresa May is heading for another thumping Brexit defeat in the House of Lords, to prevent her crashing Britain out of the EU with ‘no deal”. Read more

    DG Azevedo welcomes EU trade ministers’ strong support for global trading system

    WTO: Addressing a meeting of European Union trade ministers in Malta on 2 March 2017, Director-General Roberto Azevêdo argued that EU leadership will be more important than ever in supporting the rules-based multilateral trading system. He welcomed the strong support for the WTO that the EU and its members have shown in recent months. Read more

    NEW ON CTLD BLOG

    President Trump’s Trade Policy Agenda for 2017 Released

    Trump Trade Policy ‘Achievements’: The First Month

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

  • President Trump’s Trade Policy Agenda for 2017 Released

    President Trump’s Trade Policy Agenda for 2017 Released

    Alicia Nicholls

    The Office of the United States’ Trade Representative (USTR) today released a preliminary report outlining President Trump’s Trade Policy Agenda for 2017.  It should be noted that this is a preliminary report prepared in order to comply with the statutory deadline for the report’s annual release March 1, but bearing in mind that President Trump’s nominee for USTR, experienced trade lawyer and former deputy USTR under former President Ronald Reagan, Robert Lighthizer, has not yet been confirmed by the Senate. As such, it has been noted in the report that  a more detailed version will be published once the USTR has been confirmed and has had the opportunity to provide input in that report’s development.

    As stated in the report, President Trump sees bipartisan support by the American people for a complete overhaul of US trade policy. In order to effect this, the report states that the overarching purpose of the Trumpian trade policy “will be to expand trade in a way that is freer and fairer for all Americans”.

    To this effect, the report outlines four priorities identified by the Administration:

    (1) defend U.S. national sovereignty over trade policy;

    (2) strictly enforce U.S. trade laws;

    (3) use all possible sources of leverage to encourage other countries to open their markets to U.S. exports of goods and services, and provide adequate and effective protection and enforcement of U.S. intellectual property rights; and

    (4) negotiate new and better trade deals with countries in key markets around the world.”

    Several preliminary things stand out from the report:

    (1) The report highlighted that the US is not bound by WTO decisions and evinces a policy stance going forward not to accept any adverse rulings from the WTO. The paragraph below taken directly from the report is instructive:

    “And, when the WTO adopts interpretations of WTO agreements that undermine the ability of the United States and other WTO Members to respond effectively to these real world unfair trade practices with remedies expressly allowed under WTO rules, those interpretations undermine confidence in the trading system. None of these outcomes is in the interest of the United States or a healthy global economy.”

    This is coupled with what appears to be the Trump administration’s plans to make greater use of unilateral remedies.

    US disregard for adverse WTO rulings is a troubling prospect for many reasons, but particularly for small island states’ enforcement of their trade interests. It should be noted that the Caribbean island state of Antigua & Barbuda is still awaiting compensation from the US, after many years, since winning the US-Gambling dispute. It remains to be seen whether this will ever be resolved.

    (2) Based on the arguments made in this report, I think it likely that Trump’s team will advocate for changes to be made to the WTO’s dispute settlement mechanism for their own interest.

    (3) The Administration has stated its intention to not only more aggressively go after countries the US deems to be “engaging in unfair trade practices”, but will also with equal zeal go after countries which do not sufficiently open their markets to US exports. As mentioned previously, the pursuit of countries’ trading practices which are perceived to be inimical to US interests is not new and has been US policy for years. The singling out of China in this regard came as no surprise.

    (4) The Trump administration’s criterion for whether a trade agreement is bad or good appears to be based solely on whether the US has a trade (merchandise) deficit with the country in question. This is not just a facile way of assessing the merits of a trade agreement, but also ignores services trade and investment which in many cases the US has a surplus with its trading partners.

    (5) While there are references to “free and fairer trade” throughout the report, I believe the term “zero sum” trade may be the more appropriate term to describe these proposals.

    The full report may be viewed here.

    Alicia Nicholls, B.Sc., M.Sc., LL.B., is a 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.