Caribbean Trade Law and Development

Author: caribbeantradelaw

  • Caribbean Hosting Global Supply Chain Forum & SIDS4 Summit

    Caribbean Hosting Global Supply Chain Forum & SIDS4 Summit

    Alicia Nicholls

    While cricket fans are glued to the upcoming International Cricket Council (ICC) Men’s T-20 World Cup, policy nerds like me have our sights set elsewhere. Over these next two weeks, the Caribbean will host two high-level international conferences gathering together delegates from across the world to discuss issues which are germane to Small Island Developing States (SIDS). In this piece, I discuss briefly what these two upcoming conferences and their themes mean for SIDS.

    Global Supply Chain Forum

    This week, May 21-24, the Government of Barbados will co-host with UN Trade & Development (formerly UNCTAD) the historic Global Supply Chain Forum. Its delegates from drawn from all over the world and include Heads of Government and other high-level political officials, experts, academics, practitioners and other stakeholders. Its high-level panels will encompass discussions on transport, logistics and trade facilitation for sustainable development.

    Issues around logistics and supply chains occupy significant importance for SIDS which due to their high dependence on international trade. Their small size, geographic isolation and climate-vulnerability also generate particular logistics and transportation challenges. As such, these panels will discuss, inter alia, practicable solutions for helping these countries better integrate into global supply chains, and to improve the sustainability, efficiency and resilience of their transportation and logistics networks.  

    Among the anticipated outcomes will be the adoption of the Barbados Ministerial Declaration on Sustainable and Resilient Transport and Logistics in SIDS which will be presented at the upcoming Fourth International Conference on Small Island Developing States (SIDS 4) conference.  

    SIDS4 Conference

    From May 27-30, Antigua & Barbuda will host the UN Fourth International Conference on SIDS (SIDS4) under the theme “Charting the Course Toward Resilient Prosperity”. In addition to the conference, there will be a number of side events, including the SIDS Global Business Network Forum 2024 immediately preceding the conference.

    In 1992, SIDS were declared a special case for environment and development at the UN Conference on Environment and Development. Barbados hosted the first Global SIDS conference in 1994. Subsequent SIDS conferences were held in Mauritius (2005) and Samoa (2014). As with each of these decennial conferences, the main outcome document will be a new Programme of Action for SIDS for the next ten years.

    Topics on the agenda include climate change, biodiversity loss, ocean conservation, disaster risk reduction, access to finance, debt sustainability, and the overall sustainable development of SIDS, according to the host government of Antigua & Barbuda. As such, yet again, the Caribbean will play a pivotal role in shaping the SIDS agenda for the next decade.

    Why it matters

    The Caribbean’s role in hosting these conferences brings both practical benefits in terms of tourism arrivals and spend, and international recognition. It places the region at the heart of global discussions and decision-making on issues crucial to SIDS, giving us a hand in crafting our fate. With the UN SDG deadline just six years away and climate challenges intensifying, these discussions are even more urgent now than ever.

    Exciting times await us! We at Caribbean Trade Law & Development will be in attendance at both and look forward to bringing you, our readers, updates from these two important events.

    Alicia Nicholls, B.Sc., M.Sc., LL.B. is an international trade consultant and founder of the Caribbean Trade Law & Development Blog www.caribbeantradelaw.com.

    Image by Pexels from Pixabay

  • An evaluation of the Exporting mode of entry of Carib Brewery into the Cuban market

    An evaluation of the Exporting mode of entry of Carib Brewery into the Cuban market

    Mala Samaroo and Natasha Gomes-George

    The aim of this research report is to evaluate the Trinidad company – Carib Brewery’s – exporting mode of entry into the Cuban market which commenced in January 2019. This research is significant because it will supply readers with a thorough examination of the exportation mode that was negotiated and utilized by Trinidad and Tobago’s Carib Brewery. Also this research will spotlight as well the possible benefits and challenges that Trinidad and Tobago’s Carib Brewery successfully managed to eliminate during the two year intense negotiations (2016 – 2018) with Cuban authorities prior to the company’s entry into the Cuban market in December 2018, after Carib Brewery officially appointed UCSA Freixent S. A. as its agent for the Cuban market. As such, the purpose of this research report will result in a better understanding of the exporting mode of entry as well as the benefits and challenges upon entering into the Cuban market.

    In Section I of the research report, general data of the organization has been gathered. Data is gathered through primary and secondary sources also. Section II of the research report, the information is gathered through the PESTLE analysis to help determine the factors that are at stake in the Cuban market. Objective of the research report is to conduct a thorough analysis that will relate the various marketing and distribution strategies of Carib Brewery into this particular market. As a result, the research report draws attention to the fact that Cubans favour Carib Brewery beverages particular Carib lager beer which comprised 45% of the market. Pricing strategy proved to be the most successful marketing and distribution strategy in the Cuban market as Carib Brewery will undoubtedly gain a competitive edge by offering their product at low affordable prices. Regarding the political factor of the PESTLE analysis, it is suggested that Carib Brewery pays special attention to tax prices as they fluctuate on a regular basis.


    Also, economically speaking, the cost of labour and raw materials tend to increase regularly, therefore this factor needs to be evaluated. More importantly, Carib Brewery utilizes recycling procedures pertaining to old bottles in order to conserve the environment. This environmental factor has proven to be an effective one thus far and can be in the Cuban market as well. In the end it is recommended that Carib Brewery export Carib products to Cuba specifically the Carib lager beer. Also, in order to boost sales, culture-specific marketing plans should be followed alongside pricing strategies. The economy pricing method should be followed as low prices can be offered; also making a name in the Cuban market is important. Lastly, it is recommended that Carib Brewery utilize the Segmentation, Targeting & Positioning (STP) Strategy as the right products will reach the correct customer.

    The full paper may be accessed here.

    The paper was authored by Mala Samaroo and edited by Natasha Gomes-George, an International Trade Development Specialist.

  • WTO Thirteenth Ministerial Conference: What’s at stake?

    WTO Thirteenth Ministerial Conference: What’s at stake?

    Alicia Nicholls

    All eyes of the trade policy world will be on the United Arab Emirates’ glistening capital city, Abu Dhabi, for the World Trade Organization (WTO)’s Thirteenth Ministerial Conference (MC 13) taking place February 27-29, 2024. Under the chairmanship of His Excellency Dr Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade, WTO members’ trade ministers and other delegates will discuss several key priority areas in hopes of securing a substantive package of outcomes which reinvigorates some confidence and strength to the WTO and the rules-based multilateral trading system which it oversees. This article takes a broad look at some of the major issues being discussed.

    Unlike other major multilateral organisations, the WTO is run by its members. Its highest decision-making body, the Ministerial Conference, comprises all of its members and meets every two years. The main exception to this was the four-year lag between the Buenos Aires Ministerial (2017) and Geneva Ministerial (2022) due largely to the COVID-19 pandemic.

    Similar to the run-up towards the last ministerial (MC 12), pressure exists for achieving concrete outcomes from this Ministerial Conference. Public commentary leading up to the ministerial has ranged the gamut from optimistic to pessimistic, especially since some issues like the TRIPS Waiver extension and agriculture appear far from reaching consensus. Significant discussions and preparatory work by delegations leading up to MC13 seek to ensure, however, that the pessimists are proven wrong. Indeed, ever-optimistic, the WTO’s formidable Director-General, Dr. Ngozi Okonjo Iweala is quoted as stating ““You know it’s always very difficult and seems like it’s not going to work…But we never say never. We are going to get it done.”

    Two new accessions

    On the bright side, the WTO will see two new accessions – Comoros and Timor Leste, the first since 2016 and which will bring its membership from 164 currently to 166. Both Comoros and Timor Leste are least developed countries (LDCs) and small island developing States (SIDS), emblematic of the importance small States in particular attach to the rules-based multilateral trading system despite its flaws. Some twenty-two other countries or separate customs territories are presently in the accession process. This lends credence to the argument that despite its shortcomings, countries still see WTO membership as desirable.

    Fisheries Subsidies Agreement

    Securing the entry into force of the Fisheries Subsidies Agreement, which was adopted at MC12 in 2022, is one priority area, as well as the second round of negotiations under that Agreement. The Agreement establishes binding multilateral rules seeking to discipline harmful fisheries subsidies which have been detrimental to the world’s fish stocks. The Agreement requires two-thirds of the WTO’s membership to deposit instruments of acceptance. Barbados, Dominica and Haiti recently deposited their instruments of acceptance this month. Indeed, Barbados’ Ambassador Matthew Wilson shared a video entitled “The Barbadian Matriarchy of Fishing” to highlight the importance of supporting small-scale and artisanal fishing in Barbados.

    E-commerce moratorium extension

    In place since 1998, the long-standing agreement among Members against imposing customs duties on electronic transmissions is due to expire unless Members agree once again to extend it. This e-commerce moratorium has been controversial as some countries argue that it has been critical for a smooth environment for digital trade. However, some developing countries are concerned about foregone customs revenue.

    Trade and development

    Development-related issues are also key on the agenda, particularly how to operationalize the development flexibilities – Special and Differential Treatment – within the WTO’s agreements. In December 2023, WTO members agreed on a draft decision to be submitted to trade ministers for approval at MC13 on further integration of small economies into the world trading system. Additionally, in January 2024, the Plastics Pollution Dialogue, comprising 76 WTO Members, reached agreement on a ministerial statement to be issued at MC13.

    Incorporation of JSI outcomes into WTO rulebook

    Since the stalemate of the Doha Development Agenda, some WTO members have turned to joint statement initiative discussions as a way to advance rule-making in the WTO in the areas of e-commerce, MSMEs, investment facilitation for development and domestic regulation in services trade. The JSI discussions have been criticized by some members, most prominently India and South Africa, as ‘illegal’ and lacking a formal mandate for the discussions. As such, the recently concluded Investment Facilitation for Development (IFD) Agreement’s incorporation as a plurilateral agreement under Annex 4 of the Marrakesh Agreement remains fraught. It would require consensus, including support from non-parties to the Agreement and from countries which oppose the JSI process. Six CARICOM Member States (Antigua & Barbuda, Barbados, Belize, Dominica, Grenada, Suriname) participated in the IFD Agreement negotiations and are among the 118 WTO members which support the Agreement.

    WTO Reform

    WTO reform has been an important agenda item, but the Doha Development Agenda stalemate and the Appellate Body crisis have reiterated the need to reform the institution’s dispute settlement function. A draft text on dispute settlement reform has elicited much discussion but there appears so far to be no way forward for the resumption of a two-tier system.

    Lots at stake

    Interestingly, the WTO’s MC13 will be taking place at the same time as the 46th Regular Heads of Government Meeting in Georgetown, Guyana, opening on Sunday, February 25. However, it is expected that at least some of CARICOM’s trade ministers will be at MC13, especially given the nature of the issues being discussed.

    In conclusion, there is a lot riding on MC13. MC13 cannot be divorced from the economic and political context in which it is occurring. For example, the fact that this is a ‘mega-election’ year with elections due in major countries, such as the US and India, for example, mean that there is added pressure on delegations to ensure that MC13 outcomes deliver for their own citizens and are politically palatable for their electorate. It is hoped that whatever the outcomes, they help to strengthen, revitalise and restore some confidence to an institution which, though not perfect, is indispensable for global trade and the wider global economy.

    Alicia Nicholls is an international trade consultant and founder of the Caribbean Trade Law & Development Blog www.caribbeantradelaw.com.

  • AI as an enabler and solution to financial crime: What I learnt from the Fintech Islands Conference 2024!

    AI as an enabler and solution to financial crime: What I learnt from the Fintech Islands Conference 2024!

    Alicia Nicholls

    In an ever more interconnected world, financial criminals are finding endlessly ingenuous and sophisticated methods of perpetuating crimes and laundering the proceeds of their criminal activity. Artificial intelligence (AI), which broadly refers to the simulation of human intelligence by machines, can be both an enabler of, but also an invaluable tool for fighting financial crime. It is, therefore, imperative for businesses to both understand the risks emanating from AI, but also the ways in which this transformative technology could help them protect themselves and their customers from financial fraudsters. I gleaned these insights from a fireside chat with finance expert, Eduardo Sanchez, Special Vice President and Head of Cyber & Intelligence (Latin America and the Caribbean) at Mastercard which I moderated during the recently held 2nd Fintech Islands Conference in Barbados on January 24-26, 2024.

    AI is already integrated in our daily lives

    To an increasing extent, AI is integrated into our daily routines to help improve our productivity and make our very busy lives much easier. Many of us professionals now use virtual assistants like Amazon’s Alexa, Apple’s Siri and Google Assistant to do mundane tasks, freeing up our time to do other things. Businesses are using AI-powered chatbots and virtual assistants to provide customer assistance in a more efficient manner, and increasingly using AI-powered algorithms to analyse vast amounts of data to observe customer behaviour and predict market trends to assist in their business planning, research and innovation. On a wider scale, AI is having a non-negligible impact in fields such as ecommerce logistics, banking and finance, telemedicine, and preventive healthcare, to name a few. In a Blog post dated January 14, 2024, IMF Chief Kristalina Georgieva called for a ‘careful balance of policies’ to ensure a positive net effect of AI on the global economy, noting that 40% of the global job market could be ‘exposed’ to the effects of AI. Indeed, there are also real ethical, privacy and other considerations emanating from the misuse of this technology by bad actors. These must be addressed if AI is to have a truly transformative impact.

    AI and financial crime

    AI can be used to imitate human sounds and images for the purpose of scamming and bribery. In March 2023, the United States (US) Federal Trade Commission (FTC) published a consumer alert warning of the use of AI tools to clone loved ones’ voices in order to scam money from their relatives, but also the use of AI-powered chatbots to perpetuate romance scams. Moreover, the release of fake AI-generated sexually explicit nude images of pop singer Taylor Swift on X (formerly known as Twitter) has generated condemnation from the White House and also prompted a bipartisan effort in the US congress to tackle this issue.

    Since machine learning algorithms can be trained to simulate human behavior, they can enable fraudsters to send out highly personalized and realistic phishing emails to unwitting persons. Take for example the spam emails we often receive purporting to be from financial institutions asking us to ‘verify’ our account data. Fraudsters can harness AI’s powerful analytical abilities to find multiple username and password combinations to hack into websites and accounts and also more quickly and efficiently analyse the sensitive customer data emanating from breaches in order to steal their identities and perpetuate scams. Moreover, AI algorithms could be used by money launderers to evade traditional systems of detecting suspicious transactions.

    AI as a solution

    While the above is quite scary, the good news is that AI is increasingly a powerful tool to fight financial crime. Regtech is becoming an important asset for financial institutions to help them assess risks, streamline and automate reporting and documentation procedures, thereby lowering their compliance costs.

    Mr. Sanchez pointed to the way that AI-driven algorithms are used by businesses like Mastercard, the world’s second largest payments platform. AI is used increasingly by businesses in fraud prevention to monitor historical patterns in a customer’s transaction behaviour and therefore raise a red flag if there is a deviation from this, triggering an alert for further investigation to determine whether fraudulent activity is indeed occurring.

    Another key take-way from my chat with Mr. Sanchez was that businesses need to consider both the risks but also the benefits AI could play in their cybersecurity efforts. Doing so not only ensures they are a step ahead of criminals, but also protects their reputations and their customers. This is important as many of us could name at least one prominent business or entity we know which has suffered a major data breach and the angst we customers felt at the potential of our sensitive data being used by the perpetrators for nefarious purposes. In an April 2023 blog piece, Barbadian-born internationally renowned cybersecurity expert Niel Harper called for the “responsible and ethical use of AI” and offered practical advice to businesses which are incorporating AI into their activities on how they could do so responsibly and ethically.

    Fintech Islands as a space for Fintech thought leadership

    Since its first iteration in 2022, the Fintech Islands Conference is fast becoming one of the ‘must-attend’ conferences in the Caribbean region for persons with an interest in fintech, allowing for a rich exchange of insights and ideas among industry gurus, regulators and policy makers from across the Caribbean and the world. I was grateful for the opportunity afforded to academics and trade policy specialists like myself who have an interest in regulatory issues to participate in these three days of interesting panels on a diversity of topics. My session on Day 1 with Mr. Sanchez of Mastercard was one of several in the AI track, but there were tracks on banking revolution, climate fintech, digital assets and web 3.0, payments innovation, modernising central banking, open finance, future of commerce and wealth building.

    This second successful staging of the Fintech Islands Conference is an important step in solidifying Barbados’ reputation as a space for world-class thought leadership and discussion of cutting-edge trends in this rapidly developing field. And why not enjoy some famous Barbadian rum, beaches, sunshine and hospitality while you are at it? I wish to extend heartfelt kudos to the conference’s visionary organisers for another informative, interesting and engaging conference and I look forward to the next edition!

    Photo credit: Matt Hamilton. Eduardo Sanchez (left), Alicia Nicholls (right)

    Alicia D. Nicholls is an international trade specialist and founder of the Caribbean Trade Law & Development Blog. She has a keen interest in foreign investment law and policy and global financial regulatory issues. Read more of her work at http://www.caribbeantradelaw.com.