Caribbean Trade Law and Development

Category: CARICOM

  • Africa-Caribbean cooperation, regional integration and climate change action among priorities of new CARICOM chairman

    Africa-Caribbean cooperation, regional integration and climate change action among priorities of new CARICOM chairman

    Alicia Nicholls

    Within the next six months, the Caribbean Community (CARICOM) will seek to jointly host the first ever African Union-CARICOM Summit. This announcement was made again by Barbados’ Prime Minister, the Hon. Mia Amor Mottley, QC, who assumed chairmanship of the 15-member grouping from January 1, 2020 under its six month rotating chairmanship system.

    In her New Year’s Message as incoming chairperson, Prime Minister Mottley intimated that the summit should lay the foundation for tangible progress in  “direct air and sea access across the Atlantic, greater trade in goods and services, and more cultural exchanges between our regions.”

    2019 saw renewed interest in deepening Africa-Caribbean relations, with two African leaders (President Nana Akufo-Addo of Ghana and President Uhuru Kenyatta of Kenya) making official state visits to the region. In late 2019, Prime Minister Mottley accepted on behalf of CARICOM an offer of shared office space in Nairobi from the Government of Kenya for the hosting of a joint CARICOM Mission. For many CARICOM countries, such a mission would be their first on the African continent.

    Regional Integration

    Barbados has lead responsibility for the CARICOM Single Market and Economy (CSME) under the CARICOM quasi-cabinet. Many regional observers hope that the invigorated leadership provided by Prime Minister Mottley will add much needed energy to the regional integration process, especially in the aftermath of the mirror image provided by the Jamaica-commissioned Golding Report.

    Indeed, there appears to be renewed commitment by Barbados to the CSME under current leadership. Barbados became the first country to ratify the Protocol on Contingent Rights and will also be the first to offer other CARICOM nationals free access to public schools once certain requirements are met.

    Likening the regional integration process to a relay race, Prime Minister Mottley stated that Caribbean leaders “are duty bound to continue this journey across the Community whether as a collective of the whole or in twos and threes”. However, she also sought to temper unrealistic expectations, noting that the much more resource-endowed and longer-established European Union (EU) was still working on perfecting its own regional process.

    The new CARICOM Chairman outlined several priorities with regard to the regional integration process. These are: removing the obstacles to passport-free movement and facilitating movement for work where there are opportunities; advancing the process of a single domestic space for transport and communications in the region by working to provide more affordable and reliable air and sea links between our countries; to establish a single domestic rate for telecommunications and phone calls within CARICOM; and to work with the private sector and the labour movement to provide further opportunities.

    Climate Change Action

    Since taking office as Prime Minister of Barbados, Miss Mottley has made climate change one of her signature issues on the international stage. She noted the need “to pool the funds of the region in order to be able to finance our own development trajectory for sustainable development so that we may adapt to the new realities of the climate crisis”.  

    Prime Minister Mottley took over the chairmanship from St. Lucia Prime Minister, the Hon. Allen Chastanet, whose term was July 1 – December 31, 2019. Barbados’ chairmanship will last until June 30, 2020. The last time Barbados held the chairmanship was in 2015 under then Prime Minister, the Hon. Freundel Stuart.

    The new CARICOM chairman’s speech may be watched here.

    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.

  • Africa-Caribbean relations to deepen with a joint CARICOM diplomatic mission

    Africa-Caribbean relations to deepen with a joint CARICOM diplomatic mission

    Alicia Nicholls

    CARICOM countries will establish a joint diplomatic mission in Kenya – which for many CARICOM governments, like Barbados, will be their first diplomatic mission on the African continent. According to a press release from the Barbados Prime Minister’s Office (PMO) dated December 7, Prime Minister of Barbados, the Hon. Mia Amor Mottley, unveiled a plaque and accepted the space for the joint mission on behalf of the regional grouping.

    The joint mission will be housed in an ultra-modern business complex in the diplomatic district of Nairobi, Kenya, across the road from the United Nations’ main office in Africa.

    During the unveiling, Prime Minister Mottley stated that “this is but only one of many steps we will take in the next few months that will communicate to our people, as well as to those who are watching from outside, that this is not a fly-by-night relationship.”

    She further stated that it is a relationship ” that will be anchored deeply and which is intended to unleash people-to-people communication and cooperation and the trade and investment opportunities such that our nations can prosper by relying on each other, and not simply on those from the North Atlantic.”

    Efforts at deepening Africa-Caribbean relations

    Only a handful of Caribbean countries have a diplomatic presence on the African continent. Additionally, trade between the countries of the Africa continent and the Caribbean is small, with the Caribbean enjoying a trade surplus. According to data from ITC Trade Map, CARICOM countries exported US$449 million worth in goods to Africa in 2017, representing 2.6% of CARICOM’s total exports to the world. Whereas, the region imported US$258 million worth of goods from the continent in that same year. Africa’s exports to CARICOM only represented a mere 0.06% of its total world exports in 2017.

    However, this volume of trade is likely to increase if the current interest in deepening Africa-Caribbean economic relations continues. Earlier this year, Prime Minister Mottley led delegations to Morocco, Ghana and now to Kenya where she is attending the ACP Summit.

    During the visit of President of Ghana Nana Akufo-Addo to Barbados in June this year, Prime Minister Mottley had also announced plans by her Government to soon establish a High Commission to Ghana. In a move to facilitate travel from Africa, the Barbados government has also waived visa requirements for nationals from eight African countries.

    This year as well, President of Ghana, Nana Akufo-Addo visited Barbados and several other Caribbean countries as part of Ghana’s year of remembrance of 400 years since the start of the Trans-Atlantic slave trade. President of Kenya, Uhuru Kenyatta, also paid a visit to the region a few weeks later. During their visits, both Presidents took the opportunity to sign cooperative agreements and outline plans to further develop business and other relations between the Caribbean and their respective countries.

    In August 2019, it was announced that CARICOM and the African Union “will shortly sign a Memorandum of Understanding establishing a framework for engagement and cooperation”.

    On that note, there is currently no trade agreement between CARICOM or any African countries. Some individual Caribbean countries have bilateral investment treaties (most of which are not in force) and double taxation agreements with individual African countries.

    Joint mission to be applauded

    The promised CARICOM joint diplomatic mission should be applauded and is a good sign of CARICOM leaders’ intention to meaningfully deepen our ties with the African continent – a continent with which we share strong historical bonds, but still limited commercial ties. A joint mission allows CARICOM countries to pool their scarce financial, human and other resources – similar to what the Organisation of Eastern Caribbean States (OECS) has demonstrated with its joint missions in Geneva and Brussels.

    Need for a trade/business attache

    It is hoped that the staff of the future CARICOM joint mission to Kenya would also include some kind of trade attache or business liaison which would be instrumental in helping to promote Africa-Caribbean trade, investment and tourism.

    According to the press release, Prime Minister Mottley will, when she assumes Chairmanship of CARICOM in January 2020, work with the Kenyan Government and business community to hold the first CARICOM-Africa summit. These are indeed exciting times for Africa-Caribbean relations!

    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 News Digest – November 17-23, 2019

    Caribbean Trade & Development News Digest – November 17-23, 2019

    Welcome to the Caribbean Trade & Development News Digest for the week of November 17-23, 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.

    THIS WEEK’S HIGHLIGHTS

    World merchandise trade is expected to remain below trend into the fourth quarter of 2019, according to the WTO’s latest Goods Trade Barometer. Read more here. The WTO’s new Trade Monitoring Report issued on 21 November shows that G20 economies from mid-May to mid-October 2019 introduced import-restrictive measures covering an estimated USD 460.4 billion worth of traded merchandise, a 37% increase: Read more.

    At the 38th Session of the ACP-EU Joint Parliamentary Assembly held November 17-21 in Kigali, Rwanda, parliamentarians from the European and ACP parliaments agreed on several resolutions. Read more here.

    CARICOM trade ministers met in Georgetown, Guyana, 18-19 November, for the 49th Regular Meeting of the Council for Trade and Economic Development (COTED). Read more here. A delegation from CARICOM also held a roundtable discussion with the US Congress on the issue of de-risking on November 19.

    REGIONAL NEWS

    US Congress Roundtable on de-risking in the Caribbean hailed a success

    CARICOM: Representatives of the governments of the 15-nation Caribbean Community (CARICOM) had a fully-attended Roundtable meeting on Tuesday November 19 with members of the U.S. Congress and senior representatives of major U.S. banks, concerning the effects of de-risking and the withdrawal of correspondent banking relations (CBRs). Read more

    UWI hosts Caribbean-China trade, investment symposium

    Guyana Chronicle: The University of the West Indies (UWI) Cave Hill Campus held a symposium titled “Exploring New Horizons in Caribbean-China Trade and Investment Relations” on Tuesday at the Errol Barrow Centre for Creative Imagination (EBCCI). Read more

    T&T manufacturers say seeking to tap all opportunities here

    Stabroek News: The Trinidad and Tobago Manufacturers’ Association (TTMA) led a Trade Mission to Guyana, from Wednesday to today, to engage in mutual trade with Guyanese companies. Read more

    Decisiveness, alacrity needed to confront challenges – COTED Chair

    CARICOM: Ministers with responsibility for Trade and Foreign Relations, in the Region began a two-day Meeting in Georgetown, Guyana, on Monday, against the background of difficult circumstances – trade, economic and environmental – facing the Caribbean Community (CARICOM). Read more

    Cops to receive training on trade-based money laundering

    LoopTT: Police Commissioner Gary Griffith met with Programme Officer of the Cybercrime and Anti-Money Laundering Section of the United Nations Office on Drugs and Crime (UNODC), Yevheniy Umanets. Read more

    JAMPRO pledges $1m in support of Kingston Creative

    Jamaica Observer: The Jamaica Promotions Corporation (JAMPRO) on Wednesday pledged $1million in support of Kingston Creative, a movement aimed at promoting culture and the regeneration of downtown Kingston. Read more

    Jamaica Customs updates items not requiring trade licenses

    Jamaica Observer: The Jamaica Customs Agency (JCA) has published a list of items which no longer require import or export licences from the Trade Board. Read more

    Minerals Sector Contributes 2.7 Per Cent To GDP

    JIS: Minister of Transport and Mining, Hon. Robert Montague, says in 2018, the minerals sector contributed some 2.7 per cent to Gross Domestic Product (GDP), while earning some US$1.3 billion. Read more

    Jamaica And China To Focus On Increasing Trade

    JIS: Prime Minister, the Most Hon. Andrew Holness, says Jamaica and China will focus on increasing trade, particularly in getting more Jamaican goods into the Chinese market. Read more

    Process to support CARICOM use of Jamaica’s new skills certificate completed — Johnson Smith

    Jamaica Observer: Minister of Foreign Affairs and Foreign Trade Kamina Johnson-Smith says Jamaica, during the 49th meeting of the Caribbean Community (CARICOM) Council for Trade and Economic Development (COTED) in Georgetown, Guyana, completed the process to support the use of the country’s new higher-security skill certificate. Read more

    The Organisation of Eastern Caribbean States (OECS) joins GGGI as its 34th Member and 1st Regional Integration Member

    OECS: The Organisation of Eastern Caribbean States (OECS) became the 34th Member of the Global Green Growth Institute (GGGI) after formally submitting its Instrument of Accession. The OECS is also the first regional integration organisation to become a member of GGGI. Read more

    Securing Economic Integration: The importance of intraregional trade

    OECS: Intraregional trade is a critical component of the OECS integration process. Significant strides have been made over the years to secure the foundation for a thriving common market – resulting in the successful establishment of the Eastern Caribbean Economic Union in January, 2011. Read more

    Barbados commercial expo in Belize

    LoveFM: Barbados Investment and Development Corporation and Belize’s Ministry of Investment, Trade and Commerce brought the Barbados Commercial Mission to Belize Expo. Today ten companies from Barbados were represented at the expo. Read more

    Some CARICOM countries want amendment to Common External Tariff for certain products

    Kaiteur News: The Council for Trade and Economic Development (COTED) has been receiving a concerning number of requests for the suspension of the region’s common external tariff (CET) for certain products. This is according to the Chair of the 49th meeting of the Council, Francine Baron. Read more

    CARICOM delegation discussing corresponding banking in the US

    Jamaica Observer: Antigua and Barbuda Prime Minister Gaston Browne is leading a Caribbean Community (CARICOM) delegation to the United States to participate in a roundtable discussion on de-risking and correspondent banking. Read more

    After trade deal, unhealthy foods flowed into Central America, Dominican Republic, study finds

    Buffalo University: The research highlights the importance of studying ties between trade and diet. Read more

    Icecream making to return to Bim

    Barbados Today: Iconic ice cream brand BICO will once again be made in Barbados come February after a decade of overseas production in several countries, BICO Ltd’s executive director Edwin Thirlwell, announced Tuesday. Read more

    INTERNATIONAL NEWS

    The WTO Faces a New Threat From Trump, This Time Over Its Budget

    Bloomberg: The Trump administration on Friday criticized the World Trade Organization’s compensation structure for appellate body members, laying out a case for potentially blocking the institution’s budget and effectively halting its work starting next year. Read more

    Twenty-second UNCTAD-OECD Report on G20 Investment Measures

    UNCTAD: The joint UNCTAD-OECD Report reveals that investment policy making in G20 members has slowed down further during the reporting period (mid-May to mid-October 2019). Only a few G20 Members took investment policy action, and the number of measures was low. Read more

    Beijing signs 197 Cooperation documents on Belt & Road Construction

    Belt and Road News: China has Signed 197 Cooperation documents on Belt & Road Construction with 137 Countries and 30 International organisations by the end of October 2019, Meng Wei, the Spokeswoman for the National Development and Reform Commission (NDRC), said at a Press Conference in Beijing. Read more

    ACP-EU : Agreement on climate change, migration and post-Cotonou

    European Parliament: MEPs and African, Caribbean and Pacific MPs agreed on climate change, migration, sustainable growth and the post-Cotonou agreement. Read more

    ACP-EU : Agreement on climate change, migration and post-Cotonou

    European Sting: During the 38th session of the Joint Parliamentary Assembly (JPA), which took place from 17 to 21 November in Kigali (Rwanda), Members of the European Parliament and their counterparts from 78 African, Caribbean and Pacific (ACP) countries debated and adopted several resolutions. Read more

    Need for a progressive EU-ACP partnership to address common global challenges

    Euractiv: The international scenario is rapidly changing, but not necessarily in a positive way. That’s why there is a need for a progressive partnership between the European Union and the Africa-Caribbean-Pacific countries, writes MEP Carlos Zorrinho. Read more

    Rwanda: Senate President Urges Lawmakers to Reflect Deeply on Global Issues

    AllAfrica: Senate President Dr Augustin Iyamuremye on Tuesday told delegates at the ongoing 38th session of the ACP-EU joint parliamentary assembly in Kigali that they must seize the opportunity, to reflect deeply on regional and global issues. Read more

    EU-Singapore trade agreement enters into force

    EU: On 21 November 2019, the EU-Singapore trade agreement entered into force. This means, among other benefits, that Singapore will now remove all remaining tariffs on EU products, provide new opportunities for EU services’ providers, ensure legal protection for 138 iconic European food and drink products (known as Geographical Indications), as well as remove regulatory obstacles to trade in key sectors. Read more

    WTO dispute settlement and the Appellate Body crisis: Insider perceptions and Members’ revealed preferences

    Vox: The WTO dispute settlement system is in crisis, endangering the future of the organisation. The proximate reason for alarm is the dwindling number of Appellate Body (AB) members, the result of the US blocking new appointments as the terms of sitting members expire. Read more

    Expert analysis: Africa’s free trade area – where are we now?

    GTR: The African Continental Free Trade Area (AfCFTA), launched in 2018 and now in its operational phase, is a landmark deal that aims to bring together 54 African countries with a combined population of more than 1 billion people and a combined GDP of over US$3tn. Read more

    Global Goods Trade Hit by Tensions and Rising Tariffs, WTO Says

    Bloomberg: Global trade in goods will likely remain below trend through the current quarter due to heightened tensions and rising tariffs in key sectors, according to a World Trade Organization report. Read more

    Japan’s Lower House approves trade deal with U.S.

    Japan Times: The Lower House signed off Tuesday on a trade deal with the United States that cuts tariffs on farm and industrial products, taking a step toward its entry into force next year. Read more

    The US–Japan trade deal: small agreement, broad implications

    East Asia Forum: The recent announcement of the US–Japan Trade Agreement (USJTA) must have come as a surprise to many in Japan given its unusual expeditiousness. The agreement was concluded just six months after negotiations began — a dramatic contrast to the EU–Japan Economic Partnership Agreement which took more than five years to achieve. Read more

    Japan’s exports post worst fall in 3 years as shipments to U.S., China drop

    Reuters: Japan’s exports tumbled at their quickest pace in three years in October, threatening to tip the trade-reliant economy into recession as weakening demand from United States and China darkened the outlook. Read more

    Donald Trump’s block on WTO judges creates ‘doomsday scenario’ for world trade disputes

    South China Morning Post: The world will not end on December 10, yet for many who have spent their careers within the global trading oversight system, the date has apocalyptic consequences. Read more

    Germany’s Merkel urges more investment in Africa

    RFI: Speaking at the third G20 Compact with Africa Summit in Berlin, German Chancellor Angela Merkel has urged more businesses to invest in Africa. But two years after its launch, experts say the compact has failed to reassure investors. Read more

    Global trade umpire: the next casualty of Trump’s tariff war?

    Reuters: U.S. President Donald Trump has upended the global trade order with a slew of tariffs on economic rivals: now, Washington has redoubled its efforts to paralyze the very body designed to settle such disputes. Read more

    Developing Global Free Trade: Linking China’s BRI with Mercosur, South America

    China Daily Briefing: Chinese President Xi Jinping has just returned from Brazil where he attended the annual meeting of the BRICS nations in Brasilia. With the Presidents and Prime Ministers from India, Russia, and South Africa also all attending, the scene has been set for Russia’s stint as the BRICS Chair in 2020, which is just six weeks away. Read more

    Beijing tariff demands may expand U.S.-China ‘phase one’ trade deal significantly

    Reuters: A “phase one” trade deal between the United States and China was supposed to be a limited agreement that would allow leaders from both countries to claim an easy victory while soothing financial markets. Read more

    EU defies Boris Johnson and declares UK will only get a ‘bare-bones’ trade deal or a no-deal Brexit next year

    Business Insider: The European Union’s trade chief has declared that Boris Johnson will only get a “bare-bones” trade deal next year — or none at all. Read more

    Eurobarometer survey: Majority of EU citizens positive about international trade

    EU: The results of a special Eurobarometer survey published today by the European Commission show that 60% of Europeans feel that they personally benefit from international trade, 16 percentage points more than 10 years ago at the time of the previous poll. Read more

    European Union launches WTO trade dispute against Colombia’s unfair duties on frozen fries

    EU: The EU has today brought a dispute to the World Trade Organization (WTO) against unlawful anti-dumping measures imposed by Colombia on frozen fries from Belgium, Germany and the Netherlands. Read more

    EU-Singapore free trade agreement comes into force

    Strait Times: The landmark trade agreement between the European Union and Singapore, which removes nearly all Customs duties between the two jurisdictions, comes into force today. Read more

    STRAIGHT FROM THE WTO

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  • CARICOM to tackle roaming rates

    CARICOM to tackle roaming rates

    [Press Release] Caribbean Community (CARICOM) Ministers with responsibility for Information and Communication Technologies (ICT) have agreed to collectively approach the Region’s telecommunications providers to eliminate roaming charges throughout the Community. This is one of the priorities which they identified as an early benefit with respect to achieving a CARICOM Single ICT Space.

    At a Special Meeting of the Council for Trade and Economic Development (COTED) on Friday, by video-conference, the Ministers agreed that this would provide social and economic benefits to the people and to the Region.

    A number of regional and international organisations and CARICOM Youth Ambassadors also took part in the discussions.

    Chairman of the meeting, Dr the Rt Honourable Keith Mitchell, Prime Minister of Grenada and Lead Head of Government for Science and Technology including ICT, said this was an issue which would give a real boost to regional integration and had the potential to drive growth and development in the Community.

    CARICOM Secretary-General Ambassador Irwin LaRocque concurred with the sentiments of the Prime Minister and stated that this should be viewed as a low-hanging fruit in achieving the Single ICT Space which should be realised as soon as practically possible.

    The Single ICT Space will allow for harmonisation of the ICT and other legislative frameworks in CARICOM, the removal of roaming charges, the encouragement of digital entrepreneurship, equipping all CARICOM nationals as digital citizens and looking at ICT financial solutions among other regional benefits. The Ministers emphasised the importance of cyber security in underpinning the Single ICT Space.

    The Ministers agreed on a Ministerial Understanding on the Single ICT Space in which they identified priorities as: developing the ICT sector as a catalyst to foster closer regional economic integration; enhancing the competitiveness of the Region through a vibrant ICT industry; and using the Single ICT Space as a driver of the CARICOM digital economy and the transformation of key sectors.

    The Understanding notes that the realisation of the CARICOM Single Market and Economy (CSME) and the fulfilment of the United Nations Sustainable Development Goals (SDGs) can be greatly advanced by the strategic application and increased usage of ICT and applying a whole-of-government approach.

    The Ministers recognised the ICT Space could only be developed with partnership and commitment of all stakeholders in the public and private sectors, civil society and International Development Partners.

    The preceding was a press release from the CARICOM Secretariat. The photo is of Dr. the Hon. Keith Mitchell, Prime Minister of Grenada.