Caribbean Trade Law and Development

Category: Caribbean

  • A sustainable future for SIDS necessitates an ambitious outcome at COP21

    Alicia Nicholls

    Over the next two weeks (November 30 to December 11), leaders and delegates from over 190 countries are gathered in Paris, France for the 21st Conference of the Parties (COP21) of the United Nations Framework Convention on Climate Change (UNFCCC), with the aim of achieving a legally binding multilateral agreement on climate change.

    For small island developing states (SIDS), which are already suffering the adverse effects of climate change, the stakes are particularly high. The importance of climate change to the post 2015 development agenda has been reflected by its inclusion as Goal 13 of the Sustainable Development Goals. Failure to act on climate change has implications not just for the economies, societies and survival of SIDS, but will undermine their achievement of many of the sustainable development goals, including poverty reduction.

    Vulnerabilities

    SIDS are not the only countries affected by climate change. However, while combined their contribution to global greenhouse gas (GHG) emissions is minuscule, they are among the most vulnerable to the adverse manifestations of climate change. The geographical vulnerabilities of small states, such as their geographic location, small land masses, concentration of human settlements and major infrastructure along coastal and low-lying areas and dependence on limited industries, enhance their vulnerabilities to rising sea levels, ocean acidification, coral bleaching, more frequent and destructive weather events and changing precipitation patterns.

    Several SIDS, including those of the Caribbean Community (CARICOM), are already experiencing beach erosion, more devastating hurricanes, flooding and longer droughts. The situation is even direr in lowlying islands and atolls in the Pacific like Kiribati which face displacement of coastal communities because of rising sea levels.

    Sustainable Development Goals and Climate Change

    Addressing climate change has been made part of the post-2015 development agenda. SDG 13 mandates states to take urgent action to combat climate change and its impacts. The targets under goal 13 include strengthening resilience and adaptative capacity to climate-related hazards and natural disasters, integrating climate change measures in policy frameworks, improving education and awareness, promoting mechanisms for raising capacity for effective climate change planning in LDCs and SIDS and implementing developed countries’ commitment of mobilizing jointly $100 billion annually by 2020 to address the needs of developing countries.

    Climate change poses not only an existential threat to SIDS but also to their ability to meet sustainable development goals. Longer droughts as a result of changing precipitation patterns diminish crop yields and hurt livestock which in turn diminish the livelihoods of farmers and the families which depend on small plots of land for income and food. Low agricultural yields means reduced food production which has an impact on nutrition and food security, with implications for the achievement of SDG 2 – zero hunger. For subsistence farmers, income from surplus yields is used to finance household expenses and education of children. Loss of homes and livelihood from cyclones, droughts and floods has an impact on the eradication of poverty (SDG 1 – no poverty). In many poorer countries, women make up the majority of small farmers and are the ones required to fetch water for their families, highlighting the gendered impact of climate change which affects the achievement of SDG 5 – gender equality.

    The oceans are the lifeblood of SIDS, whether through fisheries or as part of their tourism product. Ocean acidification due to oceanic uptake of CO2, warming seas and coral bleaching cause fish to migrate to more favourable waters resulting in lower fish yields and loss of aquatic biodiversity (SDG 14 – life below water). This in turn leads to loss of income for fishermen, glass bottom boat operators and entire coastal communities which depend on marine biodiversity and fish catches for food and income, again with implications for poverty reduction (SDG 1). Another alarming aspect of climate change is saltwater intrusion into freshwater aquifers which limits the availability of fresh water for human consumption, farming and other economic activities and will undermine the achievement of SDG6 – clean water and sanitation.

    Speaking of the achievement of SDG9 – industry, innovation and infrastructure, the major economic drivers in SIDS tend to be tourism, agriculture, fisheries, which are climate sensitive industries. In Grenada an entire nutmeg harvest was devastated by Hurricane Ivan in 2005. Major infrastructure in many islands, such as hotels, road networks, electrical power plants and such, are concentrated along coastal areas which can become inundated by rising sea levels and destroyed by hurricanes.  Destruction or damage of these ports of entry impact on their ability to receive tourists, which is crippling for economies dependent on tourism.

    Aside from these impacts on economic growth and sustainability, infrastructure and livelihood, the loss of human life is one of the greatest threats. One only needs to consider the devastation by Tropical Storm Erika in Dominica and the loss of life to see that the impact is indeed real. According to the Rapid Damage and Impact Assessment, the damage and loss has been estimated at US $483 million which is equivalent to 90 percent of Dominica’s GDP.

    The scale of the problem

    Climate change has been one foreign policy area on which CARICOM countries have been steadfastly united. They have participated keenly in climate change negotiations and have submitted their intended nationally determined contributions (INDCs) setting out their post-2020 country commitments. A taskforce on climate change was also established.

    Previous attempts by the global community to achieve an internationally accepted binding agreement for the reduction of GHG emissions have left a lot to be desired. The Kyoto Protocol, adopted in Kyoto, Japan in 1997 and entered in force in 2005, is the first multilateral treaty requiring countries to cut their GHG emissions. However, the US, currently the second largest  emiter, never ratified the Agreement and China  (currently the largest emiter) and India, were exempted from the emission cuts because they were not major emiters during the period of industrialisation. Moreover, the emission cut targets of 5.2% under Kyoto are not enough.

    The inertia of the world’s major emiters on substantially cutting emissions and on achieving an ambitious binding agreement so far on climate change has had devastating consequences. The World Meteorological Organisation reported that concentrations of carbon dioxide increased at their fastest rate for 30 years in 2013. Moreover, a World Bank scientific report published in 2012 found that the world is heading towards a temperature increase of 4 degrees celsius by the turn of the century if current emission levels remain. A recent report by the IPCC further reiterated this. Such an increase would be catastrophic for SIDS.

    The current global position for emissions reduction is for limiting temperature increase to no more than 2 degrees above pre-industrial levels. However, any long term temperature increase by 1.5 degrees Celsius over pre-industrial levels will have a devastating impact on SIDS. As such, countries of the Alliance of Small Island States (AOSIS), including CARICOM, have been pushing the “1.5 to Stay Alive” campaign to raise awareness and support for cuts which will limit the increase to no more than 1.5 degrees.

    Moreover, the current level of actual financing provided by developed nations to meet the adaptation needs of small states has been woefully inadequate.

    CARICOM negotiating position

    The Rt. Hon Dr. Kenny Anthony, Prime Minister of St. Lucia, has lead responsibility for climate change for CARICOM.

    In a press conference given by Dr. Anthony, CARICOM’s negotiating position was articulated. It re-emphasises the position taken in the Community’s  Declaration for Climate Action issued pursuant to regular meeting of CARICOM Heads of Government in Barbados in July of this year. As stated by Dr. Anthony, CARICOM is advocating for:

    the retention of the principal of special circumstances and unique vulnerability of SIDS;

    five-year review cycles of green house gas emission reduction targets with the first review to take place prior to 2020, to allow for the adjustments necessary to achieve the goal of 1.5 degrees;

    recognition of loss and damage (the irreversible, slow onset impacts of climate change to which it is not possible to adapt, example sea-level rise and ocean acidification) as a critical issue for SIDS and the development of a mechanism to address this element, treated separately from adaptation;

    support for REDD+ (efforts to reduce emissions from deforestation and forest degradation and the sustainable management of forests);

    adequate provisions for adaptation to help Caribbean countries reduce their vulnerability to effects of climate change and develop great climate resilience where possible; and

    commitment by developed countries to take the lead in scaling up the provision of adequate, predictable and new sources of financing for mitigation, adaptation, loss and damage, and for technology support.

    The threat of climate change to the livelihoods, economies and very existence of SIDS cannot be understated. World leaders in their various statementsleading up to the conference have all recognised that COP 21 represents a critical development juncture where adaptative and corrective action can still be taken towards charting a new course towards a climate friendly sustainable future. However the window of opportunity for avoiding an environmentally catastrophic global temperature increase of 4 degrees Celsius is closing.

    A comprehensive, legally binding agreement with ambitious and substantive commitments on emissions reductions to reduce the global temperature increase to no more than 1.5 degrees over pre-industrial levels, which provides binding commitments for technology transfer, capacity building and adequate financial support for adaptation of SIDS and other vulnerable countries and communities to climate change and which recognises the vulnerability and differentiated responsibility of small states and LDCs will help reverse this. The hope of SIDS for a sustainable future depends on what action or inaction world leaders take over the next few days.

    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. Please note that the views expressed in this article are solely hers. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

  • 24th Commonwealth Heads of Government Meeting Concludes in Malta

    Alicia Nicholls

    Heads of Government of the Commonwealth Caribbean joined other leaders of the 53-state Commonwealth Group of Nations for the 24th Commonwealth Heads of Government Meeting in Malta on November 27-29. The meeting was held under the theme “The Commonwealth: Adding Global Value” and comes in the aftermath of the terrorist attacks in Paris and immediately precedes the 2015 United Nations Climate Change Conference (COP21).

    The agenda focused on the following themes: peace and security, human rights and good governance, migration, sustainable development, small states, climate change, trade, youth, gender quality and women’s empowerment, public health, current situations, movement of Commonwealth citizens, Commonwealth collaboration and the election of the new Secretary General.

    Outcomes

    Baroness Patricia Scotland was elected the 6th and first female Secretary General of the Commonwealth. It was agreed that Guyana would be one of the member governments to serve on the Commonwealth Ministerial Action Group (CMAG) for the next two years.

    The final communiqué released by the leaders includes several noteworthy points of specific importance to the Commonwealth Caribbean, and other small island developing states. The leaders also released a separate statement on climate change.

    Climate Change

    • Developed Commonwealth countries committed to assisting in mobilizing US$100 billion per year by 2020 to address the adaptation and mitigation needs of developing countries.
    • A Commonwealth Climate Finance Access Hub has been established to build the capacity of Commonwealth small and other climate vulnerable states to access climate finance with regional support.

    Trade & Freedom of Movement

    • A voluntary Commonwealth Trade Finance Facility was launched to increase trade and investment finance, in particular for small and other developing economies with limited access to trade finance.
    • Leaders acknowledged a proposal for a “Commonwealth Advantage” under which Commonwealth governments will consider measures to enhance access to each others’ countries more easily and for longer in keeping with their national legislation and international obligations regulating visa policies. A working group has already been working on this.

    Peace & Security

    • Commonwealth leaders recognized the growing trend of recruitment of youth persons by extremist groups as fighters, including from some Commonwealth countries.
    • Leaders renewed their commitment to implement and support national strategies to counter these threats, including the need to address recruitment and radicalization of youth via the internet and Commonwealth programmes to raise awareness and prevent young people from falling victim to radicalization and terrorism.
    • They called upon all member governments to implement their obligations under the UN Security Council Resolution 2178(2014) on foreign terrorist fighters in full and to join or fully implement the Arms Trade Treaty.

    Border Disputes in Guyana and Belize

    • The leaders endorsed the outcome statement of the Commonwealth Ministerial Group on Guyana following its meeting in September 2015, and reaffirmed their “unequivocal support for the maintenance and safeguarding of Guyana’s sovereignty and territorial integrity”.
    • They also welcomed the signing of thirteen cooperation agreements between Belize and Guatemala and reiterated their full support for the sovereignty and territorial integrity of Belize.

    Small States

    • A Commonwealth and Maltese government-funded Small States Centre of Excellence will promote the interests of small states and provide targeted capacity building programmes and other support.

    The full statements may be accessed here:

    Commonwealth Leaders’ Statement on Climate Change 

    Final Communique 

    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. Please note that the views expressed in this article are solely hers. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

  • Intra-Commonwealth trade projected to increase to $1 trillion by 2020

    This week the Commonwealth of Nations released its Commonwealth Trade Review 2015 entitled “The Commonwealth in the Unfolding Global Trade Landscape: Prospects Priorities Perspectives”. The report which was released ahead of the Commonwealth Heads of Government meeting in Malta this week details the trade performance and trends in the 53-state voluntary grouping and discusses prospects for future intra-Commonwealth trade. The Commonwealth comprises a diverse set of countries, most of which are former British colonies. It includes developing and developed countries, as well as small states and land locked states.

    Though not a trading bloc, trade amongst Commonwealth states is already substantial and growing. Intra-Commonwealth trade has grown almost 10% annually since 1995 and was estimated at $592 billion in 2013. It is projected to reach over 1 trillion in 2020.The report emphasises that there is scope for more intra- Commonwealth trade due to the historical ties, shared values, long established trade, familiar administrative and legal systems, use of the English language mostly and strong diasporic communities.

    Commonwealth Trade

    Some key points from the report:

    • Total combined Commonwealth exports of goods and services were $3.41 trillion in 2013 and accounted for 14.6% of global exports in that year.
    • Developing Commonwealth states increased their share of Commonwealth exports from 36% in 2000 to over 50% in 2013. This expanded share was attributed mainly to Asian countries which comprise 4/5 of total Commonwealth developing country exports in 2013.
    • Merchandise exports comprised 76% of all Commonwealth exports while the remaining 24% is services exports

    Commonwealth Caribbean Trade

    Caribbean states, along with Pacific states, comprise the majority of small states in the Commonwealth. The report reveals that:

    • Total Commonwealth Caribbean exports in 2013 comprised only 1.14% of total Commonwealth exports of goods and services and 2.25% of total Commonwealth developing country exports of goods and services.
    • Commonwealth Caribbean exports have grown from 14 billion in 2000 to 39.1 billion in 2013 and are forecasted to reach 41.2 billion in 2015.
    • Trinidad & Tobago accounted for 60% of all Commonwealth Caribbean goods and services exports in 2013, with its total exports of goods and services reaching 24.7 billion in 2013. The other top Commonwealth Caribbean exporters were Jamaica, the Bahamas and Barbados.
    • Intra-Caribbean exports account for 55 per cent of Caribbean members’ intra-Commonwealth exports, while developed countries accounted for 40% and developing countries was 25% in 2013.
    • Services accounted for 60% of Commonwealth Caribbean countries’ exports in 2013 and were dominated mainly travel trade, followed by transport and other business services.

    Other major points made in the report:

    • Commonwealth small states’ share in world trade has declined from over 0.7% in 1980 to just 0.46% in 2011, with loss of preferences being a major factor. Small states are also faced with declining export orientation of their economies; export GDP ratio of small states has fallen while it has risen globally. This is compounded by the numerous competitiveness challenges small states face, including their small domestic markets, unfavourable geographical location.
    • China has grown as a major trading partner in the Commonwealth, with Commonwealth States exports to China increasing from 19 billion in 2000 to 268 trillion in 2013, while Commonwealth states’ imports from China have grown from $16 billion in 2000 to $359 in 2013.
    • The report also mentions the many opportunities which exist within the Commonwealth for enhancing trade and suggests ways in which developing countries can improve their trade performance. These include through the use of trade preferences, aid for trade, addressing the implementation gap, promoting the role of private sector and the global trade support architecture.

    The full report is available on the official website of the Commonwealth here.

  • The WTO Trade Facilitation Agreement and Caribbean Small Island Developing States: Challenges and Opportunities

    Alicia Nicholls

    Getting raw sugar from a sugar factory in Guyana or Suriname to supermarkets and kitchens half-way across the world involves many different customs processes and paperwork. The World Trade Organisation’s Trade Facilitation Agreement seeks to cut the red tape and reduce the transaction costs and delays in the movement, release and clearance of goods across borders through the harmonisation, simplification and acceleration of customs procedures.

    Trade facilitation, along with investment, competition policy and government procurement, was one of the four “Singapore Issues” which developing countries were opposed to including in the multilateral negotiation agenda at the 5th WTO Ministerial in Cancun in 2003. However, negotiations on trade facilitation were eventually launched in 2004 (pursuant to Annex D of the July Package) with the “aim to clarify and improve” relevant aspects of trade facilitation articles under the GATT 1994″ in order to speed up the movement, release and clearance of goods, including goods in transit.

    After nearly ten years of negotiations, the TFA was concluded at the 9th WTO Ministerial Conference in Bali, Indonesia in 2013. It is the only multilateral trade agreement to be concluded so far out of the deadlocked Doha Development Round and the first since the WTO was established twenty years ago.  A separate Protocol of Amendment was adopted by WTO members on November 27, 2014 to insert the TFA into Annex 1A of the WTO Agreement.

    The TFA will enter into force once two-thirds of the WTO’s 161 states (as at April 2015) ratifies the agreement. So far of the only 52 countries which have already ratified the agreement, Trinidad & Tobago and Belize are the only countries of the Caribbean Community (CARICOM) to have done so, while Mauritius is the only other SIDS worldwide to have done so. A report published by UNCTAD in September 2014 on the status of implementation revealed that though a priority, trade facilitation is a major challenge for developing countries and least-developed countries (LDCs) and that some of the major barriers to implementation are lack of resources and of legal frameworks.

    Caribbean Economies are trade dependent

    Trade facilitation is important for Caribbean economies which have a high dependence on trade. Limited natural resources and lack of scale make most Caribbean SIDS (with the exception of Trinidad & Tobago) highly dependent on imported food, fuel and medicines, while their export profiles are characterised by a narrow range of exports and export markets. They have limited participation in global value chains and face declining terms of trade.

    Smaller Caribbean SIDS have largely diversified from economic dependence on mono-crop agriculture to services trade, mostly tourism and/or financial services. However, the major commodities exporters in the region (Trinidad & Tobago and the mainland countries of Guyana, Suriname and Belize) rely on exports ranging from oil and natural gas in Trinidad & Tobago and Belize, to aluminium, rice and raw sugar in Guyana and Suriname.

    Importance of Trade Facilitation

    Despite market access opportunities created by trade agreements, a major complaint for Caribbean SIDS exporters, especially small and medium sized enterprises (SMEs), have been the cumbersome hurdles they face when seeking to export to foreign markets. These hurdles include not just complex customs procedures but also stringent sanitary and phyto-sanitary standards (SPS) and technical barriers to trade (TBTs), these latter two are covered in other WTO agreements (i.e. the SPS and TBT Agreements).

    Customs procedures vary by country. By standardising and simplifying customs procedures, reforms pursuant to the TFA can enhance access and predictability for Caribbean SIDS exporters in foreign markets and promote export diversification.

    As the industrial action by customs officials in Barbados earlier this year showed, customs delays can negatively impact businesses and consumers. These delays can stem from the time taken to process applications for obtaining import or export licenses to the length of time for barrels and containers to clear ports.The quicker goods clear customs the quicker they can reach businesses and consumers for use as inputs or as final goods. Efficient customs release and clearance is particularly important for time-sensitive perishable products such as fruit and meats. Loss of perishable goods equals lost revenue to businesses.

    Transparent customs procedures and rules can also limit the opportunity for corruption by officials at checkpoints. Moreover, as import duties are still important revenue sources for Caribbean SIDS, modernisation of customs collection procedures can facilitate increased tariff revenue collection.

    The Agreement

    The TFA is divided into 3 sections: general provisions, special and differential treatment provisions for developing country members and least-developed country members (LDCs) and institutional arrangements and final provisions.

    It provides binding obligations in relation to procedures for pre-arrival processing, electronic payment, procedures allowing the release of goods prior to the final determination of customs duties, taxes, fees and charge, a risk management system for customs control, post-clearance audits, establishment and publication of average release times, procedures to allow expedited release of at least goods entered through air cargo facilities and procedures for releasing perishable goods within the shortest possible time.

    Provisions requiring publication and availability of information (such as applied rates and import/export restrictions) on the internet and for allowing traders and “other interested parties” the opportunity for comment and if necessary consultations before introducing or amending laws of general application to trade in goods, aim to promote transparency. While this latter provision may sound like an invasion of policy space, developing countries should take advantage of this provision to have their say on proposed policies by developed countries which might have an impact on their exporters.

    The Agreement also includes some ‘best endeavour” provisions, such as encouraging members to use relevant international standards in their formalities and procedures and to establish a single window for traders. The Agreement further provides for the establishment of a permanent WTO committee on trade facilitation and member states are required to designate a national committee to facilitate domestic coordination and implementation of the provisions of the Agreement.

    Special and Differential Treatment

    The TFA presents numerous benefits for Caribbean SIDS. However, Caribbean governments’ capacity to implement these trade facilitation reforms varies considerably as evidenced by the difference in their Category A notifications.

    The special and differential treatment provisions in Section II of the Agreement take this into account by linking countries’ commitments to their capacity to implement them. Moreover, LDCs will only be required to undertake commitments to the extent consistent with their individual development, financial and trade needs or their administrative and institutional capabilities.

    These flexibilities are based on the modalities that had been agreed in Annex D of the July 2004 Framework Agreement and paragraph 33 of and Annex E of the Hong Kong Ministerial Declaration. Developing countries and LDCs are to receive assistance and support for capacity building to implement the provisions of the Agreement in accordance with their nature and scope.

    Developing and LDC countries are required to categorise each provision of the Agreement  based on their individual implementation capacity, with Category A being those measures they can implement by the time the Agreement comes into force (or within one year after  for LDCs), Category B being those which they will implement after a transitional period following the Agreement’s entry into force and Category C meaning those which require capacity building support for implementation after a transitional period after the Agreement’s entry into force. Most Caribbean SIDS, including Barbados, have now submitted their Category A notifications.

    Trade Facilitation Facility

    A key developmental element of the TFA, the Trade Facilitation Facility (TFF) was established in July 2014 to provide assistance to developing countries and LDCs to ensure “no WTO member is left behind”. The TFF is to provide assistance in helping them assess their capacity to implement the TFA, by maintaining an information sharing platform to assist with the identification of possible donors , providing guidance on the implementation of the TFA through the development or collection of case studies and training materials,  undertaking donor and recipient match-making activities and providing project preparation and implementation grants related to the implementation of TFA provisions in cases where efforts to attract funding from other sources have failed.

    According to the World Trade Report 2015, once it enters into force, the TFA is expected to reduce total trade costs by up to 15 per cent in developing countries.

    Status of Implementation

    At the recently concluded COTED meeting in Georgetown, Guyana, CARICOM members reported on their status of TFA implementation. However, this status information has not been made public. Despite this, the Organisation for Economic Cooperation and Development (OECD) has a ‘compare your country on trade facilitation performance’ portal which allows for comparing countries on trade facilitation indicators.

    Looking at Barbados’ performance for instance, Barbados “matches or exceeds the average performance of high income countries in the areas of fees and charges and simplification and harmonisation of documents”, with performance improving in appeal procedures and automation. However, some ground was lost in information availability and internal border agency cooperation.

    Implementation Challenges

    Trade facilitation reforms can be beneficial to Caribbean SIDS.  This does not mean however that there will not be significant implementation challenges, particularly the infrastructure costs related to technology and equipment, and administrative, human resource and training costs. There will also be costs associated with raising private sector awareness. These costs are not just one-time costs but are recurring.  In light of competing resource demands and their limited access to concessionary loans these costs will not be easy for cash-trapped Caribbean SIDS which already have high debt to GDP ratios.

    The flexibilities in the Agreement allow states  to implement the provisions in accordance with their capabilities and there are aid for trade initiatives such as the European Development Fund of which Caribbean SIDS have been taking advantage in varying degrees.  Other challenges for implementation include limited human resource capacity and the need to reform existing laws and regulations to give effect to obligations.

    Surveys of developing countries and LDCs conducted by the WTO found that trade facilitation remains a high priority for developing countries. For Caribbean SIDS there certainly has been some interesting developments on this front. The governments of several Caribbean states have openly stated their countries’ firm commitment to trade facilitation and their recognition of its potential for economic growth.

    Trinidad & Tobago was recently approved for a $25 million loan from the Inter-American Development Bank (IDB) to help strengthen the country’s Single Electronic Window for Trade and Business Facilitation Project (TTBizLink). With the aim of becoming a logistics hub, Jamaica has recently established a Trade Facilitation Task Force. Technical assistance and aid for trade facilitation are also included in the EC-CARIFORUM Economic Partnership Agreement, which includes a protocol on mutual administrative assistance in customs matters.Moreover, in Barbados’ latest Trade Policy Review 2014 WTO members noted the considerable progress the country made with respect to the adoption of trade-facilitation measures. Recently, the island  also amended its Customs Act to allow for post-clearance audits.

    Taking full advantage of the technical assistance, aid and capacity building assistance under the TFF will be key for Caribbean SIDS in their implementation efforts.

    The Case of Mauritius 

    As the Indian Ocean island of Mauritius was the first SIDS to ratify the Agreement, it provides useful lessons for Caribbean SIDS. Seizing the opportunity to boost its competitiveness, Mauritius has received assistance from the International Trade Centre and UNCTAD, including for the establishment of the Mauritius National Trade Facilitation Committee. One can read about the Mauritius experience here.

    Conclusions

    Despite the high costs and challenges of implementation, trade facilitation reforms pursuant to the WTO TFA have the potential to bring many benefits to Caribbean SIDS. By streamlining the flow of cross-border trade, the ratification and speedy implementation of the TFA by Caribbean SIDS and their trade partners will allow Caribbean exporters to capitalise on the market access openings available in foreign export markets, thereby boosting Caribbean SIDS’ export competitiveness and GDP growth, with spillovers for income and job creation. However, regional exports will still need to meet SPS and technical standards which for many exporters still remain significant barriers to trade.

    Ratification and full implementation  of the TFA by all CARICOM states could also improve Caribbean regional integration by easing transaction costs of exporting across CARICOM states. Implementing these reforms also send a strong signal to the business community of these countries’ commitment to improving their business environment.

    Full realisation of the benefits of the TFA will not be automatic and the degree will largely be contingent on the pace and depth of implementation of the Agreement by  Caribbean governments and their trading partners and on stakeholder buy-in. Stakeholder holder consultation and strong coordination between public and private actors will be crucial for the formulation of implementation plans and the monitoring and assessment of the impact of the reforms. In this regard, lessons can be learnt from the Mauritius experience. Trinidad & Tobago and Belize have already made the step by ratifying  the Agreement. It is hoped that other Caribbean SIDS will soon follow suit.

    The full text of the Trade Facilitation Agreement is available 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. Please note that the views expressed in this article are solely hers. You can also read more of her commentaries and follow her on Twitter @LicyLaw.