Caribbean Trade Law and Development

Category: CARICOM

  • 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.

  • Caribbean Trade and Development News Digest – August 8-14, 2021

    Caribbean Trade and Development News Digest – August 8-14, 2021

    Welcome to the Caribbean Trade and Development News Digest for the week of August 8-14, 2021! We took a much-needed month-long vacation break and 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 at the CTLD Blog extend our deepest sympathies to our brothers and sisters in Haiti following the devastation caused by the 7.2 magnitude earthquake on August 14 which was also felt in several other islands . As of the time of this article’s publication, the earthquake has led to the loss of over 300 innocent lives.

    HIGHLIGHTS

    This week the Inter-governmental Panel on Climate Change (IPCC) Working Group 1 Sixth Assessment Report issued a dire warning about the current levels of global warming. This article from The University of the West Indies provides 10 ‘urgent takeaways’ and this other article from the University of Melbourne gives a good breakdown of the 5 key takeaway points.

    Registration for UNCTAD15 to be hosted virtually by Barbados is open. To register, please see link here.

    Coming up this week, the first appointed female SG of CARICOM will take office.

    REGIONAL NEWS

    WTO Negotiations on Fisheries Subsidies Small states need special, differential treatment for ‘workable’ solution – CARICOM

    SKNVibes: While Caribbean Community (CARICOM) Member States have welcomed the progress on the Fisheries Subsidies negotiations, they have signalled that further adjustments are required, underlining the necessity for special and differential treatment (SDT) for small developing states. Read more

    Trade Ministry: Trinidad and Tobago exported $12.5b to US in 2020

    TT Newsday: Trinidad and Tobago continued to be an important trading partner with the United States, having recorded $12.5 billion in exports for 2020, the Ministry of Trade and Industry said on Friday. Read more

    Gopee-Scoon tells India: Trinidad and Tobago open for investment

    TT Newsday: Trade and Industry Minister Paula Gopee-Scoon has said Trinidad and Tobago is open for investment. She expressed optimism that some of that investment could come from India, as efforts are being made to further strengthen economic ties between TT and India, on the journey towards a post-covid19 period. Read more

    G’town Chamber in cooperation pact with Barbados and Suriname trade bodies

    Stabroek: The Georgetown Chamber of Commerce and Industry (GCCI) recently entered into an agreement with the Barbados Chamber of Commerce and Industry (BCCI) and the Suriname Trade and Industry Association (STIA) in order to enhance trade and cooperation. Read more

    National Trade Negotiating Commission holds first Regular Meeting

    BBN: This week the National Trade Negotiating Commission (NTNC) held its First Regular Meeting at the Ministry of Foreign Affairs, Foreign Trade, and Immigration auditorium in Belmopan. Read more

    JAMPRO Pivots to Assist Producers

    JIS: Over the years, Jamaica Promotions Corporation (JAMPRO) has been assisting various companies, from different sectors, to gain access to overseas markets for their products. Read more

    New JMEA president eyes Amazon to boost exports

    Jamaica Observer: Newly appointed President of the Jamaica Manufacturers and Exporters Association (JMEA) John Mahfood is hoping to help small manufacturers to tap into a wider market by distributing their products through online channels. Read more

    New duties for T&T exports to Dominica

    Daily Express: SOME goods manufactured in Trinidad and Tobago and exported to Caricom member state Dominica will face new import duties from tomorrow, the Ministry of Trade and Industry (MTI) has confirmed. Read more

    Oil finds propel Guyana to top of CARICOM FDI table

    Stabroek: Guyana’s successive world class oil finds beginning back in May 2015 have propelled the country to the top of the list of Foreign Direct Investment recipients across the entire Caribbean Community (CARICOM) last year and second behind the Dominican Republic across the Caribbean and Latin America as a whole, according to a recently released assessment of FDI inflows into the region released earlier this month by the United Nations Conference on Trade and Development. Read more

    INTERNATIONAL NEWS

    Brexit has ‘significantly altered’ Irish-British freight traffic, report finds

    Reuters: Post-Brexit trade frictions have “significantly altered” freight traffic between Ireland and Britain and sparked a steep rise in volumes to and from Ireland and other European Union members, an Irish government agency report said on Thursday. Read more

    UK-EU monthly exports again above pre-Brexit 2020 levels

    City AM: The UK’s monthly exports to the EU were above 2020 levels for the second straight month in June, despite earlier concerns about Brexit disruption. Read more

    EU implements first animal welfare-based condition in trade agreement

    Euractiv: In an unprecedented move, the EU has included the first animal welfare-based condition in the Mercosur trade agreement, but stakeholders warned that this does not go far enough to save the controversial deal that is facing increasing opposition in Europe. Read more

    UNCTAD, IATA Extend Partnership to Facilitate Global Trade

    IATA: The International Air Transport Association (IATA) and UNCTAD have extended their collaboration to facilitate international trade, particularly e-commerce. Read more

    US Joins Services Domestic Regulation Talks

    IISD: The US announced that it will join the process on services domestic regulation at the World Trade Organization (WTO) and “support conclusion of the Initiative” by the 12th Ministerial Conference (MC12) in November. Read more

    Top U.S., South Korean trade officials discuss supply chain resiliency -USTR

    Reuters: U.S. Trade Representative Katherine Tai and South Korean Trade Minister Yeo Han-koo on Thursday discussed supply chain resiliency efforts, tackling climate change, and reform of the World Trade Organization, the USTR said in a statement. Read more

    Europe’s carbon emissions plan risks more damage to global trade regime

    East Asia Forum: The European Union (EU) recently announced its ‘Fit for 55’ plan to reduce carbon emissions by 55 per cent from 1990 levels by the end of this decade and to reach net zero carbon emissions by 2050. Read more

    Argentina among top 15 countries with most import barriers, says WTO report

    Buenos Aires: New WTO and UNCTAD technical report warns country is among those which slap the most levies on the entry of products, with Brazil next in 16th position. Read more

    New report reveals ‘sobering’ impact of China trade war on Australian exports

    6PR: A new report on the overall impact of the Beijing trade war shows the extent of the losses have been grossly understated, due to a boom in iron ore prices. Read more

    China is still falling short of meeting an agreement to reduce its U.S. trade surplus

    CNBC: China’s purchases of U.S. goods are still falling short of trade agreement levels, even as overall Chinese imports from the U.S. have surged. Read more

    China’s export slowdown in July may signal more bumps ahead

    Reuters: China’s export growth unexpectedly slowed in July following outbreaks of COVID-19 cases, while imports also lost momentum, pointing to a slowdown in the country’s industrial sector in the second half even as easing global lockdowns boost commerce. Read more

    Biden revives Trump’s Africa business initiative; focus on energy, health

    Reuters: The Biden administration on Tuesday announced a new push to expand business ties between U.S. companies and Africa, with a focus on clean energy, health, agribusiness and transportation infrastructure on the continent. Read more

    Africa-Singapore trade on the up and up in the last five years

    The Citizen: Trade between Singapore and Africa has been growing at a compound annual growth rate of over 7.6 percent over the past five years, a senior official said at the weekend. Read more

    Lomé seeks firm to update its trade development policy

    Togo First: To this end, the ministry of trade and industry issued a notice of interest to hire a firm that will handle the process. Read more

    U.S. looks to leverage African diaspora in trade with Africa

    Reuters: The Biden administration plans to tap the African diaspora in the United States to bolster trade with Africa, a U.S. official said on Wednesday, in a push to work with people who understand “social nuances” on the continent. Read more

    Rwanda to host headquarters of AU backed e-commerce platform

    The New Times: Rwanda will host the continental headquarters of Sokokuu, an e-commerce platform aimed at enhancing the role of Africa’s small and medium enterprises in inter and intra-African trade. 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: