Caribbean Trade Law and Development

Author: caribbeantradelaw

  • Caribbean Trade & Development News Digest – March 1-7, 2020

    Caribbean Trade & Development News Digest – March 1-7, 2020

    Happy Women’s Day! Welcome to the Caribbean Trade & Development News Digest for the week of March 1-7, 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 outbreak has intensified, with the number of reported cases now surpassing 100,000. With over 80,000 cases to date, China – where the virus first originated in December 2019 – remains the most affected country. South Korea, Iran and Italy have also seen a high number of cases. Coronavirus fears continue to negatively impact stock markets and global shipping.

    According to a recently published technical note by UNCTAD, COVID-19 has not only led to a slowdown in manufacturing in China, but “is disrupting world trade and could result in a $US50 billion decrease in exports across global value chains”. Read more

    The WTO’s General Council met this week. Among other things, Members agreed to launch a Working Party for the accession of Curacao as a separate customs territory.

    REGIONAL NEWS

    St. Lucia to launch new National Export Strategy

    NYCaribNews: The St. Lucia government will launch the island’s five- year National Export Stagey (NES) that it says provides a roadmap to the growth and development of the export sector. Read more

    Expect to feel the effect of coronavirus in the next two months

    The Guardian (TT): The lo­cal busi­ness com­mu­ni­ty is brac­ing for the im­pact of the coro­n­avirus, from the im­ple­men­ta­tion of con­ti­nu­ity plans to lo­cat­ing al­ter­nate sup­pli­ers to ad­just­ing busi­ness mod­els; lo­cal play­ers are work­ing ve­he­ment­ly to en­sure their sur­vival as in­ter­na­tion­al ex­perts warn “the worst is yet to come.” Read more

    CARICOM diplomats to Chair two WTO bodies

    CARICOM: Representatives from two CARICOM Member States have been identified to Chair World Trade Organisation (WTO) bodies. Read more

    Business urged to partner with Government on the SDGs

    Barbados Today: With Government preparing for a comprehensive review of its progress in achieving the United Nations 2030 Sustainable Development Goals (SDGs), Foreign Minister Senator Jerome Walcott has challenged businesses to do more to join the effort. Read more

    Cruise ships divert as Caribbean countries implement coronavirus travel bans

    Miami Herald: Two Carnival Cruise Line ships are redrawing Caribbean itineraries this week as several countries tighten travel restrictions to prevent the spread of the novel coronavirus, COVID-19. Read more

    Pakistan Eager To Trade With Jamaica – I Will Strongly Push For A Head-Of-State Visit – High Commissioner Khan

    Jamaica Gleaner: If Pakistan High Commissioner to Jamaica Dr Asad Khan has his way, Jamaica could shortly be on the list of countries for the next visit by President Arif Alvi or Prime Minister Imran Khan. Read more

    INTERNATIONAL NEWS

    How making trade faster and easier empowers women around the world

    World Economic Forum: International women’s day is an opportunity to reflect on solutions to achieving gender equality goals. One such route to women’s empowerment is by providing opportunities for women to trade and ensuring that the benefits of trade facilitation reform – making trade faster, easier and more cost-effective – reach women around the world. Read more

    Barnier warns of grave differences between EU and UK in trade talks

    The Guardian: EU negotiator sets out main obstacles to deal, including rights convention and fishing. Read more

    Coronavirus outbreak has cost global value chains $50 billion in exports

    UNCTAD: The slowdown of manufacturing in China due to the coronavirus (COVID-19) outbreak is disrupting world trade and could result in a $US50 billion decrease in exports across global value chains, according to estimates published by UNCTAD on 4 March. Read more

    Coronavirus COVID-19 wipes $50 billion off global exports in February alone, as IMF pledges support for vulnerable nations

    UN: In remarks made at a joint press conference with the head of the World Bank Group, the IMF Managing Director, Kristalina Georgieva, said that the UN-backed global funds would make up the shortfall, in effect, by offering to inject around $50 billion into low-income and emerging market nations, pending requests for support. Read more

    East African nations projected to earn $1.8 billion from AfCFTA

    CGTN Africa: Eastern African nations are anticipated to earn 184 billion shillings (about 1.8 billion U.S. dollars) in welfare gains from the successful implementation of the Africa Continental Free Trade Area (AfCFTA), says a United Nations report released on Thursday. Read more

    Commodity economies face their own reckoning due to covid-19

    Economist: Now, as the shock of the covid-19 pandemic works its way through the world’s new, tangled economic plumbing, commodity-dependent economies find themselves exposed. Read more

    Covid-19 Threatens Global Trade, Hits Shipping Industry Hard

    Hellenic Shipping News: Since the outbreak of Coronavirus (nCovid-19) in China, trade especially shipping which has been the most affected sector around the world as the international shipping industry is responsible for the carriage of around 90 per cent of the world’s trade. Read more

    Coronavirus: Fear returns to stock markets

    BBC: Global stock markets have fallen sharply as investors continue to worry about the broader economic effects of the coronavirus. Read more

    Coronavirus: Eight charts on how it has shaken economies

    BBC: The coronavirus outbreak, which originated in China, has infected tens of thousands of people. Its spread has left businesses around the world counting costs. Read more

    Von der Leyen sees ‘momentum’ for improving EU-US relations

    Euractiv: European Commission President Ursula von der Leyen said on Thursday (5 March) “there might be momentum” for improving the EU’s relationship with the US, but it remained unclear when she will present a trade offer to US President Donald Trump to avoid further tariffs. Read more

    Africa urged to mobilize FDIs to expand intra-African trade

    KBC: African states have been urged to be open to foreign direct investment from African countries as well as adopt regional concepts of local content to boost intra African trade in readiness for theroll out of the African continental free trade agreement in three months. Read more

    Brexit: Preparations cost government more than £4bn says watchdog

    BBC: Government departments spent more than £4bn on preparations for leaving the EU, says the public spending watchdog. Read more

    ‘Virus’ of US unilateralism threatens WTO

    Hindu Business Line: The US’ persistent efforts to deny special and differential treatment to developing countries has destabilised the institution. Read more

    The U.S.-India trade deal fell through. What happens now?

    Washington Post: The United States and India failed to produce a trade agreement, although there were repeated hints that the two sides were racing to complete the deal. Read more

    India blocks first request by EU at WTO for dispute panel on ICT import duties

    Hindu Business Line: India has blocked a first request from the European Union for the establishment of a dispute panel to rule on tariffs imposed by New Delhi on certain information and communication technology (ICT) goods including mobile phones, cameras, headphones and earphones at the World Trade Organisation (WTO). Read more

    UK statement to the WTO Trade Negotiations Committee

    Gov.uk: The UK’s Ambassador to the WTO and UN in Geneva, Julian Braithwaite, delivered a statement to the WTO Trade Negotiations Committee on 2 March 2020. Read more

    Brazil, Argentina representatives meet over trade concerns

    BN Americas: A delegation led by Argentina’s head of congress, Sergio Massa, visited Brazilian counterparts in a sign of slowly thawing relations between the countries. Read more

    Indonesia still deserves special treatment in global trade: Economists

    Jakarta Post: Indonesia still deserves special treatment in global trade despite the United States recently taking the archipelago off its list of developing countries, local economists have said. 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:

  • WTO: Curacao to begin accession process as separate customs territory

    WTO: Curacao to begin accession process as separate customs territory

    Image by Patrice Audet from Pixabay.

    Alicia Nicholls

    World Trade Organization (WTO) Members have agreed to establish a working party for the accession of the Dutch Caribbean dependency of Curacao to the 164-member organization. This decision was made at the latest meeting of the WTO’s General Council – the WTO’s highest decision-making body in Geneva – when it met on March 3-4, 2020.

    Under the WTO Agreement, any State or separate customs territory “possessing full autonomy in the conduct of its external commercial relations and of the other matters provided for in this Agreement and the Multilateral Trade Agreements” may accede to the WTO on terms to be agreed between it and the WTO.

    Constitutionally, Curacao is a constituent country and separate customs territory within the Kingdom of the Netherlands and is part of the original membership of the Kingdom of the Netherlands to the General Agreement on Tariffs and Trade (GATT), and later the WTO. The Kingdom of the Netherlands has supported Curacao’s bid for WTO membership as a separate customs union and placed Curacao’s request on the General Council’s agenda.

    Curacao’s application for accession, which was made in October 2019, will make it among several accessions to the WTO currently on-going. According to the WTO Accessions 2019 Annual Report by the Director-General which was one of the meeting agenda items, “at the end of the year, out of the 22 ongoing accessions, 14 were considered as active, continuing their engagement with Members and/or the Secretariat”.

    With regard to The Bahamas, the only independent Caribbean country which is not yet a WTO Member, the Accessions Report 2019 noted that “the accession Working Party of The Bahamas met once and was very active until Hurricane Dorian made landfall in September, becoming the worst natural disaster in the country’s history”. The Bahamas’ accession to the WTO remains a point of contention in the country as there remains strong opposition against joining the multilateral trading body.

    Other items were discussed at the meeting which would be of interest to the Caribbean. Two Caribbean WTO representatives, Mr. Stephen Fevrier of the Permanent Mission of the Organisation of the Eastern Caribbean States (OECS) to Geneva and H.E. Mr. Chad Blackman, Ambassador of Barbados to Geneva are among the new chairpersons for WTO bodies.

    The US has resubmitted documents – a working paper and a draft General Council decision – in support of its bid to bring out changes to the way the WTO allows eligibility for special and differential treatment. The US delegation also submitted a draft General Council decision on “The Importance of Market-oriented conditions to the World Trading System”.

    The documents from the General Council Meeting may be accessed via the WTO’s documents portal.

    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.

    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.

  • CARICOM Heads, Ministers agree on COV19 Protocol

    CARICOM Heads, Ministers agree on COV19 Protocol

    CARICOM Secretariat – A regional protocol establishing minimum standards for dealing with the COVID19 virus was agreed to by CARICOM Heads of Government and Ministers of Health at the 8th Special Emergency Meeting in Barbados on Sunday. The protocol is critical to avoid an outbreak of panic and fear in the Region.

    The meeting was attended by the Pan American Health Organisation (PAHO), Caribbean Public Health Agency (CARPHA), Caribbean Disaster Emergency Management Agency (CDEMA), CARICOM Implementation Agency for Crime and Security (IMPACS) and representatives of the leadership of the Cruise Ship industry and their representative bodies, the Florida Caribbean Cruise Associate (FCCA) and the Cruise Lines International Association (CLIA).

    The capacity to manage an outbreak was identified as an area of concern. Accordingly the Meeting agreed to establish an expanded Bureau of Heads of Government to continue discussions with the travel and tourism industry, regional Financial Institutions, International Financial Institutions and the private sector with respect to the marshalling of resources to augment the region’s capacity to deal with a possible outbreak. Against that background, the meeting asked CARPHA and PAHO to assist by conducting a gap analysis of Member States’ capacities.

    The protocol, drafted by CARPHA following two emergency meetings of the CARICOM Ministers of Health last week, allows for individual states to place additional measures if they so require. 
    Chair of the Caribbean Community (CARICOM) the Honourable Mia Mottley, Prime Minister of Barbados, emphasised that the leaders were prepared to protect the Region’s “vital national and regional interest at all times. We must act together to get through this,” the Prime Minister said referring to the Community’s response to the virus.

    The Protocol defines roles and responsibilities of all parties and seeks to ensure that there is effective communications between CARICOM governments and the cruise line industry with respect to decisions so that there would be a common understanding.

    The meeting also recognised that the existing Regional Response Mechanism co-ordinated by CDEMA was already on alert and was actively undertaking scenario planning in partnership with CARPHA, PAHO, IMPACS and Member States’ emergency management agencies and Chief Medial Officers.

    CDEMA would also provide guidance and share best practices to Member States in their approach to managing an outbreak. A draft framework document has already been shared with regional partners and all CDEMA participating states and this will be built upon.

     The cruise industry officials confirmed that they have been doing their part in screening passengers and stated they were willing to work with the established protocol.

    The officials said they greatly appreciated the commitment and expertise of their partners in CARICOM, PAHO, CARPHA, CEDEMA, and IMPACS as everyone works together in their mutual interest of providing the highest degree of safety and health for passengers, crew and the destinations visited.

    They said screening procedures and protocols for prevention, surveillance and response are integral to industry operations. The cruise officials added that clear and practical protocols throughout the Region are essential and look forward to continued co-operation with all stakeholders. They urged everyone to align with the guidance and procedures from the World Health Organisation (WHO) and other global medical experts.

    They expressed their gratitude for Prime Minister Mottley’s leadership and initiative in convening what was a productive meeting.

    The preceding was a press release from CARICOM. To watch the press conference following the Special CARICOM Heads of Government Meeting on COVID-19 please see below:

  • Can Novel Coronavirus ‘COVID-19’ impact the Caribbean?

    Can Novel Coronavirus ‘COVID-19’ impact the Caribbean?

    UPDATE: Several Caribbean countries have now reported cases of COVID-19.

    Alicia Nicholls

    Let me preface this brief article by stating that to date there has as yet been no confirmed case of COVID-19 – the official name given to the novel coronavirus – in any English-speaking Caribbean country. This, nonetheless, does not deny the region’s vulnerability to the shockwaves of the virus’ increasing global spread and concomitant potential impact on global trade, travel and the global economy, on a whole. Besides the possible human impact, Caribbean small open economies – reliant on tourism and trade for our ‘bread and butter’- could be severely impacted by the current outbreak.  

    Global impact to date

    The COVID-19 virus, which is suspected to have originated with bats, was first reported in Wuhan Province, China in December 2019. At the end of January 2020, the World Health Organisation (WHO) – the United Nations (UN) specialised agency in charge of public health matters – declared the outbreak of COVID-19 to be a ‘Public Health Emergency of International Concern’ and issued a set of Temporary Recommendations. According to the latest press briefing of February 28, 2020 by Director General of the WHO, “outside of China, there are now 4351 cases in 49 countries, and 67 deaths”. Further, the WHO has increased its assessment of the risk of spread and the risk of impact of COVID-19 to “very high at a global level”.

    Last week, coronavirus fears caused stock markets to suffer their worst crash since the financial crisis, while the International Energy Agency (IEA) has predicted that reduced Chinese demand for crude oil will lead to the first quarterly decline in global oil demand in over a decade. China – the worst affected country to date by the virus – is expected to see a slowing in its GDP growth to 5.6%, according to the International Monetary Fund (IMF).

    Potential Impact on the Caribbean

    While there has not yet been any confirmed case of COVID-19 in the Caribbean, the Caribbean Public Health Agency (CARPHA) has upgraded the risk of COVID-19 transmission from low to “moderate to high”.

    Of major concern to the majority tourism-dependent countries of the Caribbean is that cases of the disease have appeared in our major tourist markets – the United States, United Kingdom, and parts of Continental Europe which have direct flights to the region.  Naturally, the biggest concern is the possible loss of life, particularly for those persons with impaired immune systems, if the virus outbreak reaches the region. The virus’ estimated 1% fatality rate makes it deadlier than the flu, which is known to kill hundreds of thousands each year. Aside from the very real human impact, there is also the economic impact that could arise from loss of productivity, businesses’ loss of revenue and reduced output.

    It should be noted, however, that even if the virus outbreak does not directly reach the region, we could possibly still be impacted negatively. For example, even though the Caribbean is currently COVID-19 free, the spread of ‘fake news’ may deter persons from travelling to the region, robbing these countries of potential tourist arrivals and needed foreign exchange. This has implications for countries like Barbados, for example, which in January this year launched a year-long home-coming called “WeGathering” which encourages its diaspora to come back to the island.

    Another potential channel of impact for import-dependent Caribbean countries is from the interruption of global supply chains and impact on commodities prices. The outbreak is already having an impact on global shipping. One possible ‘benefit’ for oil-importing Caribbean countries is the slump in oil demand and reduction in oil prices, but this may negatively impact oil exporting countries like Trinidad & Tobago and now Guyana.

    This, of course, is not the first nor will it be the last public health threat the Caribbean has faced. Readers would recall SARS (another type of coronavirus) outbreak, as well as the mosquito-borne diseases of Chikungunya and Zika several years ago. However, Caribbean leaders have rightly taken the COVID-19 threat seriously. Regional governments have so far adopted different responses to the threat, with policy responses ranging from quarantining to banning of travelers originating from outbreak countries, and in some cases, denying entry to cruise ships with cases of persons exhibiting symptoms of respiratory illness. CARICOM Heads of Government have called an emergency meeting in Barbados on March 1, to discuss the latest developments.

    Both regionally and globally, cooperation among governments and with international agencies will be key to mitigating the virus’ spread and its economic impact.  In a joint statement by the WHO and UN World Tourism Organisation (UNWTO), the two agencies called for cooperation and argued that tourism’s response “needs to be measured and consistent, proportionate to the public health threat”.

    Similar sentiments were made by IMF Managing Director, Kristalina Georgieva to the G20 on the economic impact of COVID-19. The Managing Director noted while various scenarios could occur, under the IMF’s current baseline scenario “global growth for 2020 would be about 0.1 percentage points lower” than the 3.3 percent global growth the IMF forecast in January. She further advised that “global cooperation is essential to the containment of the COVID-19 and its economic impact, particularly if the outbreak turns out to be more persistent and widespread.”

    Caribbean officials will be forced to play the delicate balancing act between not overreacting and exacerbating the situation, but also seeking to do their utmost best to protect public safety within the limits of their public health infrastructure and capacity.  Timely communication with the public on, for example, their pandemic preparedness, will be necessary.

    We as citizens also have our part to play by observing hygiene best practices to prevent or mitigate the virus’ spread should it reach our region. Moreover, in light of the potential for “fake news”, it is incumbent that citizens be discerning about our information sources and rely only on official sources such as the WHO and associated regional bodies like CARPHA and PAHO.

    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.

    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.