Caribbean Trade Law and Development

Category: Caribbean

  • Caribbean Trade & Development Digest – October 27- November 2, 2019

    Caribbean Trade & Development Digest – October 27- November 2, 2019

    Welcome to the Caribbean Trade & Development News Digest for the week of October 27-November 2, 2019! 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.

    THE WEEK’S HIGHLIGHTS

    ASEAN held its 35th Summit in Thailand on November 2-3. The chair’s statement may be read here. Any hopes of a RCEP deal before the end of this year appear to have been dashed. Read more

    On the Brexit front, the EU has given the UK an extension until January 31st. The UK will also hold a general election on December 12.

    CARICOM representatives will meet in Barbados on Monday, November 4 to discuss the CARICOM Single Market and Economy (CSME). There will also be a Public Town Hall on the CSME that evening.

    REGIONAL NEWS

    Regional consultation on CSME

    BarbadosToday: As Barbados leads efforts to ensure that the CARICOM Single Market and Economy (CSME) is implemented in the region, a special stakeholders’ conference on the subject will take place on Monday, November 4. Read more

    CCJ to give CSME ruling within ‘reasonable time’

    Jamaica Observer: The Caribbean Court of Justice (CCJ) says it will give an opinion “within a reasonable time” as it concluded hearing arguments in the request for an advisory opinion by the Caribbean Community (CARICOM) that could have implications for the CARICOM Single Market and Economy (CSME) that allows for the free movement of goods, skills, labour and services across the region. Read more

    Bahamas’ $75 Million Spiny Lobster Fishery Has Been Set Back Years In The Wake Of Hurricane Dorian

    Forbes: Hurricane Dorian, which battered the Bahamas between September 1st and 3rd 2019, has devastated the islands’ $75 million Caribbean spiny lobster fishery. Read more

    CCJ grappling with advisory opinion on whether CARICOM states can opt out of free movement categories

    Stabroek News: The Caribbean Court of Justice (CCJ) yesterday held the first of two hearings, its first ever advisory opinion proceedings, which concern whether a member state of the Caribbean Community (CARICOM), may opt out of a decision of the Conference of Heads of Government to extend the class of workers allowed to move work freely across CARICOM, and the legal effect of such opting out. Read more

    Central Bank exploring ‘early introduction’ of digital currency on Abaco post-Dorian

    EyeWitnessNews: The Central Bank is exploring whether to bring about an early introduction of digital Bahamian currency on Abaco to enable rapid financial service recovery Central Bank Governor John Rolle said yesterday. Read more

    Barbados exploring ways to widen trade with CARICOM countries

    RJRNews: Barbados is exploring opportunities for development in a wide range of areas in Guyana and Suriname as it responds to a call to deepen trade between member countries of CARICOM. Read more

    Bartlett calls for investment beyond hotel rooms

    Jamaica Observer: Minister of Tourism, Edmund Bartlett has made a call for investment in the tourism industry to go beyond the development of hotel rooms and other infrastructure. Read more

    INTERNATIONAL NEWS

    Global trade: for the people, by the people – Why the world still needs a rules-based trading system

    Medium: For those of us interested in trade issues and global trade sustainability, the World Trade Organization (WTO) Public Forum , held yearly at the WTO Secretariat in Geneva, Switzerland is THE place to be in early October. Read more of this article by trade lawyer Magda Theodate here.

    Angela Merkel calls for ‘fresh attempt’ at EU-India trade deal

    Deutsche Welle: German Chancellor Angela Merkel wrapped up her trip to India with the announcement of a billion-euro investment into green projects in the country. Merkel placed climate change at the center of her talks in India. Read more

    Trade between Iran, EU at nearly €3.5b in 8 months

    Tehran News: According to the latest data provided by the statistical office of the European Union, Eurostat, the trade between Iran and the EU nations has decreased by 75 percent compared to last year’s same period in which the figure stood at €14.292 billion. Read more

    Indonesia reviewing terms of EU trade deal as WTO palm oil spat brews: vice foreign minister

    Reuters: Indonesia’s vice foreign minister Mahendra Siregar said Jakarta is reviewing a draft trade deal with the European Union in the run-up to filing a complaint against the trading bloc with the World Trade Organization (WTO) over use of palm oil in biofuels. Read more

    World’s biggest trade deal to be delayed to 2020: Draft ASEAN statement

    Channel News Asia: The signing of the world’s largest trade pact will likely be kicked back to 2020, according to a draft statement by Southeast Asian leaders, delaying a deal craved by China to offset a painful tariff war with the US. Read more

    Brexit: Johnson agrees to Brexit extension – but urges election

    BBC: Labour has “run out of excuses” to oppose an early election, Boris Johnson has said, as MPs vote on whether to back his call for a December poll. Read more

    Pelosi Calls USMCA ‘Easiest Trade Deal,’ Could Get Vote in 2020

    Bloomberg: House Speaker Nancy Pelosi said President Donald Trump’s new Nafta agreement is the “easiest trade deal that we’ve ever done.” Read more

    Trump ends trade benefits for Cameroon over ‘persistent human rights violations’

    Washington Post: President Trump said he will soon ax Cameroon from a trade program that allows African countries to sell goods to the United States on a duty-free basis, citing “persistent human rights violations” in a letter to Congress on Thursday. Read more

    UK set for 12 December general election after MPs’ vote

    BBC: The UK is set to go to the polls on 12 December after MPs backed Boris Johnson’s call for an election following months of Brexit deadlock. Read more

    ASEAN summit grapples with US-China trade war

    Deutsche Welle: Southeast Asian leaders have gathered in Bangkok for a three-day summit expected to be dominated by trade. ASEAN members are trying to finalize a China-backed plan to create the world’s biggest free trade area. Read more

    RCEP ministers fail to reach agreement

    Bangkok Post: Ministers from 16 Asia-Pacific nations failed to reach an agreement on creating the world’s largest free trade area at their meeting on Friday, a Thai negotiator suggested, but some are optimistic about the chances of a deal by year-end. Read more

    China may impose $3.58 billion in annual trade sanctions on U.S.: WTO panel

    Reuters: A World Trade Organization (WTO) panel said on Friday that China was entitled to slap compensatory sanctions on U.S. imports worth $3.579 billion annually for the U.S. failure to remove anti-dumping duties – roughly half the amount China had sought. Read more

    WTO panel rejects India’s arguments

    Business Standard: Exporters can rest assured that there is no threat to the Advance Authorisation Scheme, Duty Drawback Scheme and four specified entries under DFIS. 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:

  • US Request for CBERA Waiver Extension Approved by WTO General Council

    US Request for CBERA Waiver Extension Approved by WTO General Council

    Alicia Nicholls

    The World Trade Organization (WTO)’s General Council on October 16, 2019 approved the request by the United States (US) for a further extension of the waiver for the trade preferences it extends to certain Caribbean countries pursuant to the Caribbean Basin Economic Recovery Act (CBERA) of 1983 and its subsequent amendments.

    The CBERA is a major legislative component of the Caribbean Basin Initiative, a unilateral preferential programme operated by the US since the 1980s which extends duty-free treatment for most goods from beneficiary countries entering the US with the view to promoting economic development in the beneficiary countries. The programme is non-reciprocal as these countries are not required to extend similar treatment to US goods.

    Initially, the programme also included the Dominican Republic and several Central American countries as well, but these ceased being beneficiaries after entering into free trade agreements (FTAs) with the US.

    Seventeen Caribbean countries and territories currently benefit from the programme. These are: Antigua and Barbuda, Aruba, The Bahamas, Barbados, Belize, Curaçao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago, and the British Virgin Islands. Haiti also enjoys additional benefits under the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006, the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008, and the Haitian Economic Lift Program Act of 2010.

    Because the US only extends this preferential treatment to a select group of countries, the programme would be in violation of the non-discrimination principles undergirding the WTO, most specifically, paragraph 1 of Article I of the WTO’s General Agreement on Tariffs and Trade (GATT) which speaks to Most Favoured Nation treatment. The US has, therefore, had to request waivers of its obligations under paragraph 1 of Article I of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and paragraphs 1 and 2 of Article XIII of the GATT 1994 in order to maintain the programme.

    The US first obtained a waiver under the GATT (precursor to the WTO) in 1985 and obtained subsequent waivers under the WTO. The previous waiver decision of May 5 2015 would have expired on December 31, 2019 . The current WTO waiver decision extends the waiver until September 2025.

    In the preamble to its decision, the General Council listed several factors it took into consideration. Among these were:

    • the exceptional situation of the CBERA and CBTPA beneficiary countries, and the stated objective of the CBERA as amended to assist the trade and economic development and recovery of Caribbean Basin countries by encouraging the expansion of productive capacity in those countries in response to more liberal access and to new trading opportunities;
    • the preferential treatment provided under the CBERA as amended will not alter benefits provided under the US Generalized System of Preferences to other developing countries; that the duty-free treatment provided under CBERA should not prejudice the interests of other Members not benefiting from such treatment, and that it is expected that the extension of such duty-free treatment will not cause a significant diversion of United States imports of products eligible under CBERA originating in Members who are not beneficiary countries;
    • assurances given by the United States that it will promptly enter into consultations, on request, with any interested Member with respect to any difficulty or matter that may arise as a result of the preferential treatment provided under the CBERA as amended.

    Under the waiver, the US is required to submit to the General Council an annual report on the implementation of the trade-related provisions of the CBERA with a view to facilitating the annual review provided for in paragraph 4 of Article IX of the WTO Agreement. It is also required to promptly notify the General Council of any trade-related measure taken under CBERA, in particular, any changes in the designation of beneficiary countries, as well as any modification being considered in the list of eligible products and the duty-free treatment provided. The US is also required to give the General Council all the information it may deem appropriate relating to such action. The United States is additionally required to consult with regard to any modification being considered in the list of eligible products

    In September, the US International Trade Commission recently released its biennial report on the programme’s operation. The report found that overall, the US’ total imports from CBERA countries grew from $5.8 billion in 2017 to $6.1 billion in 2018. This translates to an increase of 4.7 percent. Turning specifically to US imports under the CBERA programme, those grew from $1.5 billion in 2017 to $1.7 billion in 2018, an increase of 9.1 percent. US imports under CBERA accounted for 27.8 percent of all imports from CBERA beneficiaries.

    The waiver decision may be found on the WTO’s document’s 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.

  • Caribbean Trade & Development Digest – October 13-19, 2019

    Caribbean Trade & Development Digest – October 13-19, 2019

    Welcome to the Caribbean Trade & Development News Digest for the weeks of October 13-19, 2019! 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.

    THE WEEK’S HIGHLIGHTS

    The EU and UK announced they had negotiated a new Brexit deal whose full text may be found here. The deal is yet to receive UK parliamentary approval and instead the UK House of Commons voted to delay Brexit again. PM Boris Johnson sent a letter to Brussels seeking a delay. However, the UK government will seek a meaningful vote on the deal tomorrow, Monday. Catch up on the latest Brexit developments here.

    REGIONAL NEWS

    Marriott Acquires Elegant Hotels in Barbados, Boosting All-Inclusive Offering

    Travel Market Report: Marriott has agreed to buy Elegant Hotels Group in a $130.1 million deal, as it looks to grow its all-inclusive portfolio in the Caribbean. Read more

    J’can Company B&D Gains From US-China Trade War – Grows Lobster Sales As Conch Ban Bites Into Income

    Jamaica Gleaner: With US$185 billion worth of duties being slapped on American exports to China in retaliation for US imposition of US$550 billion in tariffs on Chinese goods, leading seafood exporter, Kingston-based B&D Trawling Limited is ramping up volumes of live and frozen lobster sales into that Asian market at a significantly lower tariff than its US competitors. Read more

    Caribbean Export signs three MOUs to support the Caribbean’s export growth

    Jamaica Observer: At the recently held 4th staging of the Cariforum-European Union (EU) Business Forum in Frankfurt, Germany; three memorandum of understandings (MOUs) were signed between the Caribbean Export Development Agency and key stakeholders in Europe. Read more

    Trinidad Tourism Ltd: Tourism sector set to grow in 2020

    LoopTT: For the new fiscal year 2019/2020, Tourism Trinidad Limited’s (TTL) is aiming to increase visitor arrivals to 380,000, a 7 percent increase on the previous year’s figures. Read more

    TSTT raises over $2.7 b on US roadshow

    Trinidad & Tobago Guardian: A US$400 mil­lion 10-year bond of­fered by the Telecom­mu­ni­ca­tions Ser­vices of Trinidad and To­ba­go (TSTT) has been “sig­nif­i­cant­ly over-sub­scribed” the T&T Guardian has learned. Read more

    Facilitation of business improving in Barbados

    Barbados Today: Following recent rounds of Social Partnership talks, the private sector says it is pleased with progress being made by Government to address the vexing issue of business facilitation. Read more

    OECS/ITC workshop proving a success

    Antigua Observer: Stakeholders involved in the ongoing regional business excellence seminar have voiced their pleasure with the developments, noting in particular, the shared business experiences and solutions. Read more

    Mastercard Enters Jamaica, Targets Unbanked

    Jamaica Gleaner: It’s been roughly a month since technology company Mastercard settled into its new office space in New Kingston, but discussions are already ongoing to have the company doubling users of electronic payment systems across Jamaica over the next three years. Read more

    Former Diplomat Cites ‘Corruption Of EDF Resources In Saint Lucia’ In Open Letter

    St Lucia Times: See full letter to the editor. Read more

    Business, Consumer Confidence in Jamaica Dips In Third Quarter

    Jamaica Gleaner: Business confidence dipped in the third quarter of 2019 as firms have second thoughts about their positive expectations for the economy over the next year. Read more

    Jamaica Lobbies US On Correspondent Banking Relationships

    Caribnews NY: Jamaica will continue to lobby the United States to take the lead in legitimizing licensed cannabis growers and processors in the correspondent banking relationships with US banks, Industry, Commerce, Agriculture, and Fisheries, Minister Audley Shaw, has said. Read more

    Caribbean countries looking to take advantage of ACP-EU accord

    Jamaica Observer: As the 79-member African, Caribbean and Pacific (ACP) countries negotiate a post-2020 relationship with the European Union (EU), culture is being presented as an untapped sector that can contribute to the further development of the region. Read more

    INTERNATIONAL NEWS

    China’s developing country status brings it few benefits in the WTO

    East Asia Forum: Whether China is a ‘developing’ or ‘developed’ country for the purposes of the World Trade Organization (WTO) matters a lot to US President Donald Trump. Trump ignited a new front in the US–China trade war in July 2019 by tweeting that the world’s richest nations are masquerading as developing countries to get special treatment. Read more

    UK’s independent seat at WTO to include Channel Islands

    Gov.uk: The UK has today (Thursday 17 October) notified the World Trade Organization (WTO) that it will extend its WTO membership to include the Channel Islands. Read more

    Growing the Fiji Australia trade

    FBCNews: “For a small open economy like Fiji, our government agencies and policies aim to be pro-enterprise and pro-innovation. We are committed to working with our businesses to achieve these outcomes.” These were the remarks by the Minister for Industry, Trade and Tourism Premila Kumar, while speaking at the 25th Australia-Fiji Business Council Forum in Brisbane last week. Read more

    RCEP explained: The 16-country free-trade agreement that India may sign

    The News Minute: While countries have been negotiating since 2013, India has also been facing opposition from multiple domestic industries. Read more

    What’s Really in the Trade Deal Trump Announced With China

    New York Times: The partial trade deal hasn’t been signed and some details still have to be negotiated, but it could help some American firms. Read more

    South Africa gets behind China’s defence of multilateral trade

    South China Morning Post: Chinese Foreign Minister Wang Yi says the two countries should work together to oppose protectionism. Read more

    Russia Steps Up Its Game in Africa

    Moscow Times: The inaugural Russia-Africa summit shows Putin’s growing influence on the continent. Read more

    STRAIGHT FROM THE WTO

    NEW ON THE CTLD BLOG

  • Caribbean Trade & Development Digest – October 6-12, 2019

    Caribbean Trade & Development Digest – October 6-12, 2019

    Welcome to the Caribbean Trade & Development News Digest for the weeks of October 6-12, 2019! 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.

    THE WEEK’S HIGHLIGHTS

    The WTO held its annual Public Forum. This year’s theme was ‘Trading Forward: Adapting to a Changing World’. The 2019 World Trade Report was also released.

    Commonwealth Trade Ministers met on October 10 and have called on world leaders to reject protectionism and reform the WTO. The communique may be read here.

    With just two weeks to go before the UK’s scheduled departure from the EU, Brexit talks between the UK and EU remain at a stalemate despite a weekend of intense negotiations. Read more

    REGIONAL NEWS

    EU slaps 5-year tariff on Trinidad & Tobago fertilisers

    Newsday: This follows a European Commission (EC) final ruling on October 8, based on a complaint by Fertilizers Europe in June last year, claiming TT, Russia and the US were dumping product, resulting in material injury to European producers. Read more

    Antigua drops demand for LIAT shares

    Barbados Today: In an abrupt move, Prime Minister Gaston Browne has declared that he has told Prime Minister Mia Mottley that Antigua and Barbuda has found $40 million to pump in LIAT and no longer wants to buy Barbados’ shares in the cash-strapped carrier, Antigua Newsroom has reported. Read more

    Caribbean trade ministers want end to protectionist policies, reform of WTO

    Jamaica Observer: Caribbean Community (Caricom) trade ministers have joined their counterparts from the Commonwealth in calling for an end to trade protectionism and an urgent reform of the World Trade Organisation (WTO), which sets the global rules for international trade. Read more

    Barbados Car imports feel ASYCUDA pinch

    Barbados Today: The inability to clear vehicles at the Bridgetown Port as a result of issues with the ASYCUDA World system is threatening to put the brakes on Barbados’ largest importer of electric vehicles. Read more

    Drought lands “major blow,” but CARICOM and Belize sugar will be protected

    Breaking Belize News: Last week key sectors of agriculture and aquaculture along with trade from across the Caribbean met in Belize simultaneously for a full week. Read more

    CARICOM countries on alert for major diseases affecting pigs and bananas

    Breaking Belize News: A pair of deadly diseases poses imminent risk to two key industries, according to the Council for Trade and Economic Development (COTED), which wrapped up its meeting in Belize on Friday. Read more

    Health Minister Highlights Negative Effects Of Illicit Trade In Tobacco Products

    JIS: Minister of Health and Wellness, Dr. the Hon. Christopher Tufton, says the growing illicit trade in tobacco products is a clear and present danger to public health in the Caribbean and the rest of the world. Read more

    Jamaica Competitiveness Ranking Dips

    Jamaica Gleaner: Jamaica, which suffers from high crime and lack of export-led growth, slipped by one spot in competitive rankings, according to the Global Competitiveness Report 2019, published this week by World Economic Forum, or Weforum. Read more

    TTCSI welcomes 2020 Budget incentives for export businesses

    LoopTT: Government’s prioritisation of the expansion of exports has found favour with the Trinidad and Tobago Coalition of Services Industries (TTCSI). Read more


    INTERNATIONAL NEWS

    RCEP trade ministers’ talks end in impasse

    Financial Express: No joint statement will be issued, as certain key issues are yet to be resolved, even after two days of intense negotiations on October 11 and 12, according to one of the sources. Read more

    Staying out of RCEP trading bloc will only isolate India: Piyush Goyal

    Livemint: In a clear indication of India’s intentions ahead of the final ministerial meeting of the Regional Comprehensive Economic Partnership (RCEP) grouping on Saturday, trade minister Piyush Goyal on Thursday defended the free trade agreement among the 16 economies, holding that India cannot remain isolated in a globalized world. Read more

    Asean nations to exchange trade documents via ASW by year-end

    Business Mirror: The Philippines and seven other members of the Association of Southeast Asian Nations (Asean) will exchange customs and trade-related documents over a platform that is intended to facilitate cargo clearance and economic integration of Asean countries by year-end. Read more

    US-China trade deal: What it is, is not and may become

    The Hill: The U.S.-China trade agreement outlined on Friday is an act of cooperative rivalry. It brings immediate value to both sides while deferring strategic questions about future relations between the world’s two superpowers. Read more

    WTO is in crisis and Europe Must Step Up

    Bloomberg: The World Trade Organization is in crisis and needs reform to play its global role effectively, according to the trade minister of Finland, which currently holds the rotating European Union presidency. Read more

    International Chamber of Commerce issues recommendations to reform global trade

    ICC: Recognising the challenges, criticism and unprecedented pressure faced by the World Trade Organization (WTO) system, the International Chamber of Commerce (ICC) has unveiled a groundbreaking set of recommendations to guide the future of international trade. Read more

    WTO urges quick ban on harmful fisheries subsidies

    France24: The World Trade Organization on Tuesday called for countries to speed up talks aimed at hammering out an agreement on banning harmful fisheries subsidies. Read more

    Asia-Pacific needs the WTO to stay relevant in an increasingly uncertain world

    South China Morning Post: To walk along the autumn shoreline of Lake Geneva to the headquarters of the World Trade Organisation (WTO), kicking fallen conkers from horse chestnut trees, is to occupy a steady, constant world light years away from the conflicts and challenges addressed by the many United Nations institutions settled there for the past 70 years. Read more

    UK Trade minister Truss backs WTO reform before Brexit

    Euronews: British trade secretary Liz Truss said she opposed protectionism but backed U.S. President Donald Trump’s calls to reform the World Trade Organization (WTO). Read more

    STRAIGHT FROM THE WTO

    NEW ON CTLD BLOG