Caribbean Trade Law and Development

Category: CARICOM

  • Caribbean Trade and Development News Digest – August 22-28, 2021

    Caribbean Trade and Development News Digest – August 22-28, 2021

    Welcome to the Caribbean Trade and Development News Digest for the week of August 22-28, 2021! We are pleased to bring you the major trade and development news headlines and analysis from across the Caribbean Region and the world from the past week.

    We continue to express our solidarity with our brothers and sisters in Haiti who were affected by a 7.2 magnitude earthquake on August 14, and then by Tropical Storm Grace just days later. Even though the international media has largely moved on from the ‘story’, our Haitian brothers and sisters still need your help. Please assist by reaching out to reputable charities/aid agencies if you are so able. We also express our concern for those readers who were negatively impacted by Tropical Storm Grace and/or are in the path of Hurricane Ida. Please stay safe all.

    HIGHLIGHTS

    My Opinio Juris Piece: Will Foreign Direct Investment Help or Hinder SDG Achievement in the Caribbean?

    This week I had the pleasure of contributing a piece to the Opinio Juris Blog symposium convened by Prof. Mohsen Al-Attar and Dr. Rafael Quintero Godinez on whether FDI is a blessing or grift. You can read mine and the other great pieces in the Symposium here.

    REGIONAL NEWS

    Belize develops plan to sustainably manage dozens of finfish species

    UNCTAD: Belize’s government is collaborating with fisheries managers, scientists and fishers to develop a management plan for 47 of the nation’s most important finfish – bony fish – species. Read more

    Belize to export more cattle to Mexico in September

    Breaking Belize News: Cattle exports to Mexico will be continuing in September, this according to officials in the Ministry of Agriculture, Food Security and Enterprise (MAFSE). Read more

    Antigua and Barbuda and Indonesia sign ‘Waiver of Short Stay Visa Requirements’ agreement

    Antigua Newsroom: On Friday, 27th August, 2021, the Honourable E. P. Chet Greene, Minister of Foreign Affairs, Immigration and Trade welcomed His Excellency Priyo Iswanto, Non-Resident Ambassador Extraordinary and Plenipotentiary of the Republic of Indonesia to Antigua and Barbuda on his final tour of duty as the nation’s accredited Ambassador. Read more

    Application process for exporters goes online

    Jamaica Gleaner: Starting today, exporters applying to the Trade Board for certificates of origin will be required to do so online. This is in keeping with the decision to transition from the existing manual process to an electronic service to obtain certificates. Read more

    Jamaica Accedes To Revised Kyoto Convention

    JIS: Jamaica acceded to the International Convention on the Simplification and Harmonisation of Customs Procedures, also known as the Revised Kyoto Convention (RKC) on Saturday (August 7), thus becoming the 128th contracting party. Read more

    JMEA strong on partnerships to boost exports

    Jamaica Observer: Executive director of the Jamaica Manufacturers and Exporters Association Simara Howell has revealed that the lobby group will be developing its relationships with other local and regional organisations to better serve and boost the exports of its member companies. Read more

    Guyana and Suriname combine to expand rice and poultry exports

    Jamaica Observer: Guyana and Suriname have inked a new agreement under which they will seek to target new global markets by joint expansion of their poultry and rice sectors. The Caricom countries indicated they will be supporting each other in entering the North American, European and regional markets. Read more

    Guyana-Suriname Private Sector Business Council to be set up

    Stabroek: Guyana’s Private Sector Commission (PSC) and Suriname’s Trade and Industry Association (VSB) have announced a plan to set up a Guyana-Suriname Private Sector Business Council to strengthen economic ties and create a single market and economy between the two neighbouring countries. Read more

    Local Content, Trade and Security among issues discussed by Guyana and Suriname Leaders at high-level meeting

    Newsroom: The President said the meetings are not time-wasting meetings, but rather they are examining decisions to advance the commitments already made between the two countries. Read more

    Suriname to begin issuing licences directly to Guyanese fishermen from January 2022

    Newsroom: After years of complaints relating to the licencing of Guyanese fishermen who ply their trade in waters that belong to Suriname, Guyana and Suriname decided this week that licences will now be issued directly to Guyanese fisherman. Read more

    Caricom SG underscores importance of young people to regional integration movement

    Jamaica Observer: The Caribbean Community (Caricom) Secretary General, Dr Carla Barnett, says she is committed to young people in the region playing a meaningful role in the development of the 15-member regional integration movement. Read more

    INTERNATIONAL NEWS

    The U.S. is reviewing its trade policy with China, says USTR Katherine Tai

    CNBC: U.S. Trade Representative Katherine Tai said Tuesday the “Biden-Harris Administration and USTR are conducting a comprehensive review of U.S.-China trade policy,” according to a readout of a virtual meeting with two business associations, the U.S. Chamber China Center Advisory Board and the U.S.-China Business Council. Read more

    UK unveils post-Brexit global data plans to boost growth, increase trade and improve healthcare

    Gov.uk: The UK is today launching a package of measures to help it seize the opportunities of data to boost growth, trade and improve its public services. Read more

    UK aims to conclude Pacific trade group talks next year – FT

    Reuters: Britain aims to conclude negotiations to join the trans-Pacific trade group by the end of 2022, the Financial Times reported on Saturday, citing International Trade Secretary Liz Truss. Read more

    UK’s hopes of boosting hydrogen trade hobbled by Brexit

    Euractiv: The UK hydrogen strategy, unveiled last week (17 August), has many similarities with the EU’s own blueprint presented one year before, analysts say. But trade and regulatory cooperation between the two sides is complicated by Brexit, with the UK likely to become a rule-taker at the end of the day. Read more

    The EU’s position in world trade in figures

    EU Reporter: Find key figures about the EU’s trade with the world in our infographic: exports, imports, number of related jobs in the EU and more, Economy. Read more

    Russia, EU to start import substitution consultations on September 13 — source

    TASS: The EU believes that the Russian import substitution policy, which was a response measures to unilateral sanctions slapped on Russia by the EU and the US, runs counter to the WTO policy by giving preferences to domestic produce. Read more

    Turkey, US seek to boost bilateral trade

    Hurriyet: The top Turkish and U.S. trade officials discussed areas of cooperation and efforts to further increase the bilateral trade volume, the Turkish Trade Ministry said in a statement on Aug. 27. Read more

    Africa Can Become a Maritime Hub for Global Trade

    AllAfrica: The International Chamber of Shipping (ICS) is the world’s leading shipping organization, accounting for about 80 per cent of global merchant tonnage. An ICS study published in March this year titled Protectionism in Maritime Economies found that reducing restrictive trade policies could boost Africa’s post-COVID-19 economic recovery by billions of dollars. The interview was edited for brevity. Read more

    U.S. Trade Rep. Hints “If Unaddressed” Rights Violations “Could Affect” Ethiopia’s Future Agoa Eligibility

    Addis Ababa: United States Trade Representative Katherine Tai met virtually with Ethiopia’s Senior Policy Advisor and Chief Trade Negotiator Mamo Mihretu on August 25, according to the U.S. Department of State’s Bureau of Global Public Affairs. Read more

    Okonjo-Iweala asks developed nations to channel IMF’s SDR allocation to African countries

    The Cable: Ngozi Okonjo-Iweala, director-general of the World Trade Organisation (WTO), has asked developed countries to channel their shares of the International Monetary Fund (IMF) $650 billion special drawing rights (SDRs) to poor African nations. Read more

    India, Australia eye mini trade deal by year end

    Livemint: After a virtual meet between India’s trade minister Piyush Goyal and his Australian counterpart Dan Tehan on Thursday, both sides directed officials to speed up negotiations and to meet as often as required. Read more

    Countries must remove digital services taxes, US tells Turkey

    Daily Sabah: US Trade Representative Katherine Tai told Turkey’s trade minister it was critical that countries remove individual digital services taxes in connection with a broader multilateral agreement reached in talks led by the Organisation for Economic Co-operation and Development (OECD), her office said. Read more

    Costa Rica requests panel over export dispute

    Tico Times: Costa Rica requested the creation of an arbitration panel at the World Trade Organization (WTO) on its dispute with Panama over the blockade of the export of agricultural products, the Costa Rican Ministry of Foreign Trade announced on Monday. Read more

    MERCOSUR’s regionalisation pandemic

    IPS: While the trade agreement with MERCOSUR is still being discussed in the EU. The future of the entire bloc is at stake. 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:

  • Caribbean Trade and Development News Digest – August 15-21, 2021

    Caribbean Trade and Development News Digest – August 15-21, 2021

    Welcome to the Caribbean Trade and Development News Digest for the week of August 15-21, 2021! We are pleased to once again bring you the major trade and development news headlines and analysis from across the Caribbean Region and the world from the past week.

    We continue to express our solidarity with our brothers and sisters in Haiti who were affected by a 7.2 magnitude earthquake last week, as well as Tropical Storm Grace. The death toll at the time of this Digest’s publication was over 1900 innocent lives lost. Please donate if you can to reputable charities and organisations.

    HIGHLIGHTS

    According to the World Trade Organization’s latest Goods Trade Barometer, global merchandise trade is “continuing its robust recovery” from the shock of the COVID-19 pandemic and hit a record high in its latest reading issued on August 18. Read more here.

    ECLAC’s latest Foreign Direct Investment in Latin America and the Caribbean Report (2021) found that only five LAC countries received more foreign capital in 2020 than in 2019: Bahamas and Barbados in the Caribbean, Ecuador and Paraguay in South America, and Mexico. Access the full report here.

    Dr. Carla Barnett, the first appointed female Secretary-General of the Caribbean Community (CARICOM), took office this week following a virtual ceremony marking the occasion and in which she outlined her vision and priorities for her term. Read more here.

    UNCTAD has issued an open call for photo submissions for UNCTAD15 which will be hosted virtually by Barbados October 3-7. See the call for submissions.

    REGIONAL NEWS

    ‘Demerara Rum’ gets geographical indication recognition in EU

    Stabroek: Demerara Distillers Limited has succeeded in having its Demerara Rum geographical indication (GI) recognised and protected in the European Union (EU), a move the company’s Chairman, Komal Samaroo has described as a “major development”. Read more

    CARICOM Secretary-General donates books to University of Belize

    Breaking Belize News: As she leaves Belize’s shores for Guyana to become Secretary-General of the Caribbean Community (CARICOM), Dr. Carla Barnett is leaving behind a gift – a donation of books from her personal collection to the University of Belize Library. Read more

    July arrivals set new record for Barbados for 2021

    Barbados Today: Barbados recorded over 10,000 air passenger arrivals after months of being hard-hit by a global pandemic. For the first time since December 2020, the local tourism industry has recorded a major tourism milestone with the latest statistics from the Barbados Tourism Marketing Inc. (BTMI) suggesting a positive turn for the industry ahead of the 2021/2022 winter season. Read more

    T&T and Chile commence negotiations to expand trade

    Trinidad Guardian: Trade and Industry Minister, Senator the Honourable Paula Gopee-Scoon has expressed anticipation that the Agreement will support Trinidad and Tobago’s trade policy and eliminate non-tariff barriers. The following is a press release from the Ministry of Trade and Industry. Read more

    TTMA meets Cuba ambassador to talk trade

    Trinidad Guardian: President of the T&T Manufacturers’ Association (TTMA) Tricia Coosal has met with Cuban Ambassador Tania Diego Olite to discuss trade and other related matters. Read more

    Belize doesn’t have enough coconuts, Ministry of Agriculture looking at ways to increase production

    Breaking Belize News: If we walk around town, that is in any of the cities and towns, we see a lot of coconuts. Going by that, one would think that we have excess production. However, we don’t have enough says the Minister of Agriculture, Food Security, and Enterprise, Jose Abelardo Mai. Read more

    Belize Cabinet news: Decisions on trade licenses, medical waste, and national census

    Breaking Belize News: While COVID-19 dominated this week’s meeting of the National Executive as it has for so long, other decisions were made and announced. Read more

    More Belize trade talks with Guatemala

    Amandala: For two days last week, a delegation from the Guatemalan Republic held trade talks with the Chief Executive Officer in the Ministry of Foreign Affairs and Foreign Trade, Ambassador Amalia Mai. Read more

    JMEA wants more Caricom dollars

    Jamaica Observer: The Jamaica Manufacturers and Exporters Association (JMEA) is looking to increase its receipts from Caricom as it believes there are still opportunities within the bloc for local companies to grow while also advancing the Jamaican economy. Read more

    Communique issued after agreements between Guyana, Suriname

    Newsroom: Joint communique issued on the official visit by Guyanese President to Suriname. Read here.

    Latin America and Caribbean FDI in 2020 was the lowest since 2010, ECLAC annual report

    Mercopress: Latin America and the Caribbean received US$105.48 billion in Foreign Direct Investment, FDI, in 2020 – 34.7% less than in 2019, 51% less than the record high achieved in 2012, and the lowest since 2010, the Economic Commission for Latin America and the Caribbean (ECLAC) indicated during the presentation of the annual “Foreign Direct Investment in Latin America and the Caribbean, 2021”. Read more

    INTERNATIONAL NEWS

    UK becomes Dialogue Partner of the Association of Southeast Asian Nations

    Gov.uk: The UK has agreed a new partnership with the Association of Southeast Asian Nations (ASEAN). Read more

    Exclusive: UK eyes quick ‘interim’ trade deal with India as negotiations set to start this year

    City AM: The UK government is looking at wrapping up a quick “interim” trade deal with India, which could see tariffs slashed on products like Scotch whisky before a full agreement is in place. Read more

    Why the EU Sides with Southeast Asia in the South China Sea Dispute

    VoA: European Union members will step up their advocacy of open access to the disputed South China Sea, a key world trade route, despite Chinese claims to nearly all of it as they discuss the issue with Southeast Asian countries, analysts believe. Read more

    Economic Commission for Africa Director seeks ways to boost AfCFTA’s implementation as MSMEs consultation opens

    Africa News: The Economic Commission for Africa (ECA) and communication consultancy AUNIQUEI, with funding from the European Union (EU) today in Dakar opened a consultation with African micro, small and medium enterprises (MSMEs) on the implementation of the African Continental Free Trade Area (AfCFTA). Read more

    AfCFTA will promote made in Africa Goods — Perm Secretary

    The Guardian (Nigeria): Inauguration of the Technical Working Group of the African Continental Free Trade Area ( AfCFTA) for Agriculture and Agribusiness work stream will promote made in Africa Goods and Services. Read more

    Afreximbank restates commitment to AfCFTA implementation

    The Guardian (Nigeria): The Regional Chief Operating Officer of the African Export-Import Bank (Afreximbank), Eric Monchu Intong, has reiterated the bank’s commitment to the full implementation of the African Continental Free Trade Area [AfCFTA] as it remains the guaranteed strategy for the continent to propel economic recovery. Read more

    Swiss paper faulted for sexist headline about WTO chief

    Expatica: A media regulator faulted a Swiss newspaper on Tuesday for sexism over a headline earlier this year describing the World Trade Organization’s highly qualified new chief merely as a “grandmother”. Read more

    Toyota production cut highlights ASEAN supply chain vulnerability

    Nikkei Asia: Toyota Motor’s announcement that it will slash production next month has sparked concerns over vulnerabilities in Southeast Asia’s auto supply chain as the region grapples with new variants of the coronavirus. Read more

    Cheaper wine in the offing as Government close in on New Zealand trade deal

    Evening Standard: The Department for International Trade said imported wine, apples and honey could all see their prices slashed in a post-Brexit agreement. Read more

    GM workers in Mexico reject union in win for US free trade pact

    Al Jazeera: Workers at a General Motors Co. truck plant in Mexico voted to cancel their union contract after the U.S. initiated a dispute against conditions at the factory, a historic victory for the North American free trade agreement. 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:

  • Global tax reforms and Caribbean countries’ investment policy implications

    Global tax reforms and Caribbean countries’ investment policy implications

    Alicia Nicholls

    As of August 12, all Caribbean Community (CARICOM) Member States have now endorsed the Organisation for Economic Cooperation and Development (OECD) statement on a ‘Two-Pillar Solution to Address the Tax Challenges Arising From the Digitalisation of the Economy’ of July 1, 2021. The OECD statement, signed now by 133 member jurisdictions of the OECD/G20 Inclusive Framework, is not a fait accompli per se but has been described as a ‘conceptual agreement’ indicating their ambition for global tax reform. The stated purposes behind this latest phase of the OECD Base erosion and profit shifting (BEPS) initiative, described as ‘BEPS 2.0’, are to ensure that multinational enterprises (MNEs) “pay their fair share of tax” and to stop a “race to the bottom” in countries’ corporate tax rates. As such, pillar one of the two-pillar solution seeks to ensure a fairer distribution of profits and taxing rights among countries with respect to the biggest MNEs globally, in particular large tech companies. Pillar two – and the more controversial for our region – aims to prevent tax base erosion by setting a global minimum corporate income tax of at least 15%.

    The technical details behind this solution remain to be worked out. As the statement notes, a detailed implementation plan and the remaining issues are to be finalised by October 2021. But what does this mean for the investment policies of Caribbean countries, especially in a COVID-19 climate where foreign direct investment (FDI) will be key to sustainable economic recovery efforts?

    In its latest IIA Issues Note entitled “Recent Developments in the IIA Regime: Accelerating IIA Reform”, UNCTAD (2021) devotes several paragraphs to the possible impact that ongoing global tax reform efforts might have for international investment patterns and global and national investment policies and policy-making. UNCTAD (2021) identified several possible implications. One implication is that it would discourage multinational corporations (MNCs) from shifting profits and tax revenues to low tax-countries, and second, stop the race to the bottom among countries’ tax rates which have occurred over the past three decades.

    Let us look at these first two implications. Not all Caribbean jurisdictions have low CIT rates, but some do, particularly those which have large international business sectors. A global minimum CIT, of course, would have implications for those countries (particularly low tax and no-tax jurisdictions) whose favourable tax regimes have traditionally been a key component of their value proposition to potential and existing foreign investors. Contrary to popular opinion, it is not only small island international financial centres (IFCs) which have made a favourable tax environment part of their investment attraction strategy, but some larger countries, including in the EU, such as the Republic of Ireland and Luxembourg.

    The possible loss of business from raising their CIT to meet a possible minimum global CIT of 15% could have implications for the macroeconomic stability of countries dependent on FDI inflows, as well as possible loss of jobs. Governments would need to conduct the appropriate economic analyses to ascertain the potential impacts of raising their tax rates to meet the proposed global minimum CIT, if and when it is decided. The possible socio-economic implications must be considered and weighed.

    A third implication raised by UNCTAD (2021), and what several Caribbean countries are currently undertaking, is the need to engage in a comprehensive review of their tax incentive regimes to attract investment. Indeed, those countries whose tax rate was their main value proposition will be forced to develop other areas of competitiveness which would make them attractive to global business. This, of course, is not a negative thing and could force our countries to build other areas of competitiveness and pay greater attention to accelerating on-going investment facilitation and wider business facilitation reforms.

    A fourth issue raised by UNCTAD (2021), and which must be seriously considered, is the implications for host country obligations under international investment agreements (IIAs) signed. More specifically, should host States decide to raise their tax rates to the proposed minimum standard (once agreed), there is the possibility of legal exposure to investor-State claims brought by investors under IIAs, especially relying on nebulous clauses such as the fair and equitable treatment (FET) standard. This is a real possibility as the majority of Caribbean countries’ bilateral investment treaties (BITs) are older generation treaties with broad investor protections and few, if any, explicit provisions for State regulation in the public interest. Even where a host State ‘wins’ an ISDS dispute, the costs incurred through the need to hire (often foreign) legal representation and the negative press surrounding such a dispute might be just as harmful.  

    While the threat of possible treaty-based investor claims would not be a concern for those Caribbean countries with few or no BITs in force, those whose investment promotion strategies have historically relied on the signing of BITs should pay close attention to this possible unintended consequence as they formulate new tax regimes.

    Caribbean  IFCs are in uncharted and hostile global regulatory waters, and not for the first time. The ideal response would have been unity among affected countries to contest this latest blatant encroachment on our sovereignty, in particular, our ability to determine our own tax regimes and by extension, investment policies. However, it appears that many countries have decided that it was in their own national interests to sign on to the initiative because of the very realistic possibility of victimisation (through arbitrary blacklisting, for example) and reputational risk at a time when they are already dealing with the impact of de-risking practices by global banks. Another stated reason for joining is the prospect of influencing and shaping the developments from within. Let us hope that by having a seat at the table, we can at least ensure our voices will be heard in an initiative that is likely to be consequential for our Caribbean small island developing States at a time when we most need FDI inflows for a sustainable post-COVID-19 recovery.

    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. All views herein expressed are her personal views and should not be attributed to any institution with which she may from time to time be affiliated. You can read more of her commentaries and follow her on Twitter @LicyLaw.

  • New CARICOM SG committed to a more ‘inclusive’ community

    New CARICOM SG committed to a more ‘inclusive’ community

    Alicia Nicholls

    Newly installed Caribbean Community (CARICOM) Secretary General, Dr. Carla Barnett, has voiced her commitment towards greater stakeholder engagement for a “truly integrated, inclusive and resilient community that is driven by knowledge, excellence, innovation and productivity”. She made this pledge while outlining her vision during an installation ceremony streamed online on August 16.

    Dr. Barnett, who assumes office as CARICOM’s eighth and first appointed female Secretary General, acknowledged the many “economic, social, environmental and financial challenges” affecting lives and livelihoods in the region. She specifically outlined the issues of climate change, youth unemployment, rising crime, the need for greater food security and the issue of blacklisting by large global powers which has led to the loss of correspondent banking relations (CBRs) for many indigenous Caribbean banks. The new SG also extended condolences to the people of Antigua & Barbuda on the passing of their second Prime Minister, Sir Lester Bird, who she acknowledged as a committed regionalist. She also expressed solidarity with the people of Haiti where over 1,200 innocent lives were lost as a result of a 7.2 magnitude earthquake on August 14 and who also face the impending Tropical Storm Grace.

    Dr. Barnett implored stakeholders to reach out to the Secretariat to share their “their fears, concerns, and vision for the future of the Community and telling us how they feel they can contribute to building our Community”, as no one has all the ideas or answers so all must be involved. She further noted that “it is, therefore, incumbent on all of us to be engaged in finding solutions and taking action to overcome these obstacles in our path to a secure, viable and ultimately sustainably prosperous Community for all”.

    She made reference to the unity showed by CARICOM people during sports, culture and in times of adversity. She stated she would “build on and maintain that strength” and “will require that my team and I reach out on a regular basis to explain, to exhort, to inform, to educate so that all will feel a part of the whole that constitutes CARICOM and “I Am CARICOM” will mean much more than a catchy slogan”.

    In addition to greater stakeholder engagement, Dr. Barnett also called for new thinking “not only to solve the problems of the present but to outline new paths for the future of our integration process”, including for closing the implementation gap. She praised the work of her predecessor Ambassador Dr. Irwin Larocque of Dominica who served from 2011-2021. She noted that much has been achieved in the past 48 years, but “a lot of it is taken for granted today, to the extent that some are not even associated with the integration movement”.

    Dr. Barnett is the first Belizean national to be appointed CARICOM SG. She brings to the position a wealth of experience, including as an economist and having previously served as the first woman and the youngest person appointed as Deputy-Secretary of CARICOM (1997 -2002).

    We at the Caribbean Trade Law & Development Blog wish Dr. Barnett the very best during her tenure.

    The recording from the event may be viewed here, while the transcript from her full address is available here.

    Photo credit: CARICOM

    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. All views herein expressed are her personal views and should not be attributed to any institution with which she may from time to time be affiliated. You can read more of her commentaries and follow her on Twitter @LicyLaw.