Category Archives: news

Caribbean Trade and Development Digest – October 8-14, 2017

Welcome to the Caribbean Trade and Development Digest for the week of October 8-14, 2017! We are pleased to share some of the major trade and development headlines and analysis across the Caribbean region and the World. We hope you enjoy this edition.

REGIONAL

COTED approves of poultry plants to sell products within CARICOM

Jamaica Observer: Nine poultry processing plants in the region have been approved to trade among member states as the Caribbean Community (CARICOM) continues to move steadily towards increasing intra-regional and food security, the Guyana-based CARICOM Secretariat has announced. Read more

Column:Brexit’s Impact on British Overseas Territories

Bernews: An opinion column written by Paul Hare. Read more

CARICOM to push for concessionary funding during meetings with US next week

Jamaica Observer: Caribbean Community (CARICOM) countries will use “important meetings” in the United States next week to push the international community to re-think its policies regarding regional countries that are no longer eligible for concessionary loans and other forms of preferential treatment, St Lucia’s Prime Minister Allan Chastanet said on Friday. Read more

INTERNATIONAL

We’ve got the A-Team of talks, says Liam Fox

Express UK: International Trade Secretary Liam Fox has hit back at claims his negotiators don’t have enough experience to strike deals with the US and other countries post-Brexit, describing them as the “A-Team”. Read more

South Africa committed to enhancing Intra-African trade

allAfrica: President Jacob Zuma says South Africa remains committed to boosting intra-African trade, which will be equitably beneficial for all participating countries. Read more

Mexico, Canada pledge trade unity as NAFTA negotiations continue

The Hill: Mexico and Canada are vowing to continue work on the North American Free Trade Agreement (NAFTA) after an unproductive fourth round of negotiations in Washington. Read more

Japan exasperated by Trump’s trade policies

Politico: Japanese officials are expressing growing frustration with the Trump administration’s economic policies, vowing to continue striking trade deals with other countries that undercut U.S. agricultural exports rather than seek a new trade agreement with the United States. Read more

Turkey, Indonesia agree to trade talks

Anadolu Agency: Indonesian and Turkish governments on Thursday agreed to start negotiations on the Comprehensive Economic Partnership Agreement (CEPA) in November in an attempt to further strengthen economic cooperation between the two countries. Read more

Pacific Trade Advances without the US

Wall Street Journal: The Trans-Pacific Partnership trade pact is regaining momentum despite the Trump Administration’s January decision to withdraw. Representatives of the remaining 11 TPP members met last month in Japan to push for ratification as early as November in the hope that Washington will rejoin. Read more

UK and EU formally inform of post-Brexit tariff quota plan

The Guardian: Britain and the EU have formally informed members of the World Trade Organisation how they plan to split up the EU’s tariff quotas and farm subsidies after Brexit in a plan already rejected by the White House. Read more

WTO DG Azevedo tells ministers more commitment is needed to deliver success at MC11

WTO: At an informal ministerial gathering in Marrakesh on 9-10 October, hosted by Morocco and Argentina, Director-General Roberto Azevêdo told ministers that there were some promising issues on the table, but in all areas there remains a long way to go in order to deliver a successful outcome at the 11th Ministerial Conference in Buenos Aires in December. Read more

Qatar escalates UAE trade dispute

Reuters: Qatar has asked the World Trade Organization to set up a dispute panel to adjudicate on its row with the United Arab Emirates, Qatar said in a document published by the WTO on Thursday, escalating a trade complaint it lodged with the WTO in July. Read more

India and EU to look at ways to restart trade pact talks

The Economic Times: India and the European Union plan to take stock of the proposed free trade agreement negotiations next month and explore ways to put in place a framework to resume the stalled talks. Read more

Economist sees merit in Pacific trade deal (PACER Plus)

Radio New Zealand: An economist says the PACER Plus trade agreement still has benefits for smaller Pacific states, despite two of the region’s bigger economies not signing up to the deal. Read more

Pangolin trade forces Ghana to look at new wildlife laws

Sunday Times: Ghana is facing calls to update its laws on wildlife crime after fears the country has become a transit route for the illegal trade in pangolin scales. Read more

Asia-Pacific Services Trade needs more harmonised regulation

Asia Times: Preliminary research has found that it is in the best interest of Asia-Pacific services trade partners in emerging sectors to access the largest possible legal framework, and from within that framework raise the standards of membership in terms of domestic regulation harmonization. Read more

Liked this issue? To read past issues of our weekly Caribbean Trade & Development Digest, please visit here. To receive these mailings directly to your inbox, please follow our blog.

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Caribbean Trade and Development Digest – September 24-October 1, 2017

Source: Pixabay

We’re back! Welcome to the Caribbean Trade and Development Digest for the week of September 24-October 1, 2017! We are pleased to share some of the major trade and development headlines and analysis across the Caribbean region and the World. We hope you enjoy this edition.

REGIONAL NEWS

Online plaforms launched to promote regional trade, business

St Kitts & Nevis Observer: The Caribbean community’s development of a single market and economy has been given a boost with the launch of four new online platforms aimed at promoting trade and improving the ease of doing business. Read more

Services an untapped growth sector

Jamaica Information Service: Head of the Trade Agreements Implementation Unit in the Ministry of Foreign Affairs and Foreign Trade, Symone Betton-Nayo, says the services sector remains an untapped area that offers tremendous opportunity for Jamaica’s economic growth and development. Read more

INTERNATIONAL NEWS

WTO Chief Warns of Risks to Trade Peace

Financial Times: The head of the World Trade Organization has warned that the Trump administration’s blocking of the appointment of new judges to hear international disputes risks undermining a system that has kept trade wars at bay for more than two decades. Read more

Interview: Pacific Alliance tackles non-tariff trade barriers

Xinhua: Latin America’s Pacific Alliance is looking to do away with non-tariff obstacles to trade between its members Chile, Colombia, Mexico and Peru, according to a top Peruvian businessman. Read more

Cross-border rail links: the spark to ignite intra-African trade?

International Railway Journal: Trade between African nations is considered one of the continent’s great untapped economic opportunities, but poor cross-border connectivity continues to hinder growth. Keith Barrow reports from Cape Town on the potential role for rail in unleashing intra-African trade. Read more

Philippines revives plan to join Trans-Pacific Partnership

Philstar Global: The Philippines is reviving its plan to join the Trans-Pacific Partnership (TPP) even as the mega-trade deal pushes through without the US, the Department of Trade and Industry said. Read more

Britain caught in cross fire of trade spat between Boeing and Bombadier

The Globe and Mail: Britain, caught in the crossfire of a damaging trade dispute between airplane makers Boeing Co. and Bombardier Inc., said on Sunday it would fight to protect thousands of jobs put at risk in Northern Ireland. Read more

Ciobo chases Mexico free-trade deal

The Australian: Trade Minister Steven Ciobo will lead a business delegation to ­Mexico to open new opportunities for Australian companies as free-trade talks progress for a new Latin American free-trading bloc.  Read more

The US made the global trade rules it claims are unfair

The South China Morning Post: If trade conflict erupts between China and the United States in the coming year, it will certainly not be for want of both sides trying to keep the peace. Read more

Ireland hopes to boost exports under Japan-EU Agreement

Japan Times: Ireland hopes to boost exports to Japan under an economic partnership pact the European Union and Japan reached a broad agreement on in July, Irish Deputy Prime Minister Frances Fitzgerald said in a recent interview. Read more

Zambia Commerce Minister saddened by low intra-African trade

Lusaka Times: MINISTER of Commerce, Industry and Trade Margaret Mwanakatwe has called for concerted efforts in boosting intra-Africa trade. Read more

Liked this issue? Read past issues of our weekly Caribbean Trade & Development Digest, please visit here. To receive these mailings directly to your inbox, please follow our blog.

The Trump Presidency – Implications and Opportunities for Caribbean IFCs

Alicia Nicholls

On March 31, 2017 I was a panellist representing FRANHENDY ATTORNEYS at the Barbados International Business Association (BIBA) Barbados International Business Forum 2017 entitled “Is the Barbados International Business Sector Under Attack?” held at the Lloyd Erskine Sandiford Centre in Barbados.

I was on the second panel which discussed the topic “The Trump Presidency – Implications and Opportunities for IFCs“. My esteemed fellow panellists were Jeremy Stephen, Economist and UWI Lecturer, Lisa Cummins, Executive Director of UWIConsulting and Cadian Dummond, Attorney at Law. The discussion was expertly moderated by Melanie Jones, Partner at Lex Caribbean Attorneys-At-Law.

I spoke to the possible implications of the Trump Presidency in regards to de-risking, FATCA and visa restrictions.

For those who missed the panel discussion and have expressed interest in my remarks, please find a copy of same in powerpoint form here. Enjoy!

For more on past presentations I have done, please see news and announcements.

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. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

 

 

“What’s Next for NAFTA?” FITT Trade Elite Chat Recap

Alicia Nicholls

Last Thursday I was a panellist for the Forum for International Trade Training’s (FITT) Trade Elite Twitter Chat on “What’s Next for NAFTA” – the North American Free Trade Agreement which comprises the United States (US), Canada and Mexico.

My fellow panellists were Horacio Lopez-Portillo, a Partner at Vazquez, Tercero and Zepeda in Mexico City,  John Boscariol, Partner and leader of the International Trade and Investment Law Group at McCarthy Tetrault LLP in Toronto, Joy Nott, the President and CEO of the Canadian Association of Importers and Exporters (I.E. Canada) in Toronto and  Paola Viviana Murillo, the Founder and Director of Latincouver. The moderator was Jon Yormick, Special Counsel for Phillips Lytle LLP.

The topic is timely in light of new US President Donald Trump’s sustained criticism of NAFTA and his call for a renegotiation of the over two-decades old agreement. The discussion focused on issues surrounding the strengths and weaknesses of NAFTA in its current dispensation, whether there was the need for a NAFTA 2.0, whether other more modern free trade agreements like the recently concluded EU-Canada Comprehensive Economic and Trade Agreement (CETA) could serve as useful models for a NAFTA 2.0,how  issues such as e-commerce, labour, services and the environment should be addressed, and how much blame should really be placed on NAFTA for job losses.

Please feel free to read FITT’s recap of the robust discussion on their website here. Further information on FITT’s past and upcoming Tradeelite Chats can also be found in the FITT website at the previous link.

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. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

Caribbean Trade & Development Digest – November 20-December 3, 2016

Photo source: Pixabay

Caribbean Trade Law & Development is pleased to share some of the major trade and development headlines and analysis across the Caribbean region and the World for the weeks of November 20-December 3, 2016. 

For past issues of our weekly Caribbean Trade & Development Digest, please visit here.

To receive these mailings directly to your inbox, please follow our blog.

REGIONAL

Belize Senate criticises Belize-Guyana Trade Pact

7 News Belize: One of the motions which we didn’t get a chance to tell you about, was a resolution tabled by the Government. It authorizes the Barrow Administration to ratify a Framework agreement between the Governments of Belize and Guyana for bilateral cooperation.Read more

IDB Loan will support economic developent and foreign trade in Guyana

Caribbean News Now: Guyana will improve its public infrastructure and promote economic diversification and foreign trade with a US$9 million Inter-American Development Bank (IDB) loan that will help strengthen the economy and stimulate exports and investments. Read more

Guyana seeking to register Demarara as Geographical Indication

Stabroek: The Commercial Registry here has received applications for Demerara Sugar, Demerara Molasses and Demerara Rum. Minister of Foreign Affairs Carl Greenidge said that recapturing the name provides opportunities for producers to obtain market recognition. Read more

ExporTT Chairman: T&T must improve trade with EU

Trinidad Guardian: Incoming chairman of ExporTT Ashmeer Mohammed said the agency is committed to improving trade with the European Union (EU) and arresting the current decline in trade between T&T and the EU. Read more

Region’s exports fall five percent

Trinidad Guardian: The Economic Commission for Latin America and the Caribbean’s (Eclac) annual report Latin America and the Caribbean in the World Economy 2016 shows that the foreign trade dynamics of the region are having their worst performance in eight decades. Read more

Illicit Cigarette Trade Booming

LoopJamaica: The illicit cigarette trade now accounts for a fifth of the local market, according to cigarette distributor Carreras Limited. Read more

Entities partner to grow exports

JIS: Four private- and public-sector bodies have signed a memorandum of understanding (MOU), agreeing to work together to grow national exports to US$2.5 billion by 2020. Read more

Belize and Jamaica squash “beef” over patties

Breaking Belize News: On November 17, Jamaica’s Minister of Industry, Karl Samuda successfully met with Minister of Trade and Commerce, Tracey Panton, in Guyana during the 43rd meeting of CARICOM’s Council for Trade and Development. Read more

Jamaica, EU discuss moving EPA to full implementation

Jamaica Observer: Minister of Foreign Affairs and Foreign Trade Kamina Johnson Smith, in highlighting the concerns of the Jamaica’s private sector about the challenges faced in accessing the European Union markets, said that Jamaica’s strength and advantages in its services sectors would be greatly unlocked if there was a special visa regime between CARIFORUM and European Union (EU) countries. Read more

Kenya: President Roots for Increased Trade between Kenya, Latin America & the Caribbean

allAfrica: President Uhuru Kenyatta has called for increased trade between Kenya, the Latin America and Caribbean regions.Read more

INTERNATIONAL

Maersk Line to Acquire Hamburg Süd

Maersk Line: Maersk Line and the Oetker Group have reached an agreement for Maersk Line to acquire Hamburg Süd, the German container shipping line. The acquisition is subject to final agreement and regulatory approvals. Read more

OPEC Reaches Oil Output Reduction Agreement

Global Trade Magazine: The thirteen members of the Organization of Petroleum Exporting Countries (OPEC) meeting in Vienna, reached an agreement yesterday to reduce oil output by 1.2 million barrels a day beginning next month. Read more

China says its will promote trade deals regardless of TPP, RCEP Direction

Reuters: China said it will actively participate in bilateral and multilateral trade deals, with the goal of deepening reform and opening up its economy, regardless of the direction the Trans Pacific Partnership (TPP) or the China-backed Regional Comprehensive Economic Partnership (RCEP) might take. Read more

Singapore leads global trade ranking for the fifth time

SBR:  Its domestic market is rated as world’s most open.Singapore topped the Global Enabling Trade Report 2016 once again.  Read more

EU-Georgia Free Trade Deal Boosting Trade Flows

Tax News: Trade flows between Georgia and the EU increased 16 percent in 2015, the first full year since the Deep and Comprehensive Free Trade Area (DCFTA) was provisionally applied.The EU-Georgia Association Agreement, which includes a DCFTA, was provisionally applied from September 2014. It fully entered into force on July 1, 2016. Read more

Sanders to introduce US ‘Outsourcing Tax’ Legislation

Tax News: US Senator Bernie Sanders has stated his intention to introduce legislation into Congress that would impose an “outsourcing tax” on companies moving jobs out of the United States, as well as stripping them of their US tax breaks and benefits. Read more

China urges U.S. to abide by WTO anti-dumping agreement

Reuters: China on Friday urged the United States to abandon a surrogate country approach it uses to calculate anti-dumping measures against Chinese exports, as a related clause in China’s World Trade Organization (WTO) deal is set to expire. Read more

MEPs reject call for Court Review of CETA

Tax News: The European Parliament has rejected a request by 89 Members of European Parliament to refer the EU-Canada Comprehensive Economic and Trade Agreement to the European Court of Justice for an opinion.  Read more

China, New Zealand To Upgrade FTA

Tax News: The launch of negotiations to upgrade the existing China-New Zealand free trade agreement (FTA) was announced on November 21, following a meeting between Chinese Commerce Minister Gao Hucheng and New Zealand’s Trade Minister Todd McClay at the Asia-Pacific Economic Cooperation Summit in Lima. Read more

Next Round of RCEP Negotiations in Jakarta Dec 5

Economic Times: The single-tier system of duty relaxation under the proposed mega trade deal RCEP will be the central issue to be discussed at the next round of negotiations of 16 countries, including India and China, in Jakarta from December 5. Read more

WTO chief says no indication Trump wants to take US out of WTO

Reuters: World Trade Organization chief Roberto Azevedo said on Thursday he had no indication that U.S. President-elect Donald Trump wanted to withdraw the United States from the global trading body. Read more

NEW ON CARIBBEAN TRADE LAW & DEVELOPMENT

President-elect Trump’s trade team takes shape: What implications for the Caribbean?

Happy Independence! Tribute to Barbados at 50

Dominica Ratifies WTO Trade Facilitation Agreement

WTO Panel Rules Tax Incentive to Boeing a Prohibited Subsidy

Fidel Castro; Friend to the Caribbean & Anti-Imperialist Hero

TPP: Trump to withdraw from the Agreement on Day One

For past issues of our Caribbean & Trade Development Digest, please visit here. To receive these mailings directly to your inbox, please follow our blog.

 

FATF congratulates Guyana on AML/CFT Improvements

Alicia Nicholls

At its recently held plenary session on October 19-21, 2016, the Paris-based Financial Action Taskforce (FATF) congratulated Guyana on the “significant progress” the country has made in addressing the deficiencies in its framework for anti-money laundering/combatting the Financing of Terrorism (AML/CFT).

Background

Since its establishment in 1989, FATF has sought to protect the integrity of the global financial system from threats posed by money-laundering (ML), terrorist financing (TF) and the financing of proliferation of weapons of mass destruction. Its main role is setting and promoting standards on these areas and its 40 plus 9 Recommendations are the international standards for AML/CFT and the financing of the proliferation of weapons of mass destruction. FATF’s work is complemented by the nine FATF-style regional bodies, including the 27-member Caribbean Financial Action Task Force (CFATF), of which Guyana has been a member since 2002.

The AML/CFT Mutual Evaluation is a peer review process to evaluate each member country’s level of compliance with FATF’s Recommendations. These reviews are concerned not just with the jurisdiction’s technical compliance with the recommendations but also now with the effectiveness of the country’s AML/CFT systems.

CFATF was very critical of Guyana’s technical compliance with the FATF recommendations in its third round Mutual Evaluation report dated July 2011. Inter alia, the reviewers had highlighted several deficiencies in the Anti-Money Laundering and Countering of the Financing of Terrorism (AML/CFT) Act 2009, the  lack of statistics, staffing shortages and limited staff training. As a result, the country was placed on expedited follow-up and required to report every Plenary. Due to internal political wrangling over the proposed bill’s content, for many sittings Guyana’s legislature could not pass the proposed amended AML legislation.

This inaction, however, had several negative consequences. Starting in May 2013, CFATF had named Guyana among its list of jurisdictions with strategic AML/CFT deficiencies that had not made sufficient progress in addressing them and had warned that if Guyana did not take specific steps by November 2013, not only would it call upon its members to consider implementing counter measures to protect their financial systems from the ongoing ML/TF risks emanating from Guyana but would consider referring the country to the FATF International Cooperation Review Group (ICRG) which analyses the AML/CFT threats from high-risk jurisdictions.

After Guyana had failed to meet the agreed timelines in the action plan, the regional watch body followed through on its threat in its public statement released May 2014 in which it called on its Members to “consider implementing further counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Guyana”.

That language may sound extreme to the reader considering that Guyana is not an international financial centre and any AML/CFT lapse is unlikely to cause even a ripple in the global financial system. Regulatory costs are burdensome for cash-strapped small states which often lack the financial resources and the human resource capacity to meet all the requirements. What little technical assistance is given is often not adequate. As countries which are not members of FATF Caribbean countries also have little say in the regulatory framework or agenda which are often slanted towards the interests of advanced economies.

However, these important inequities aside, a sound AML/CFT framework is important for countries, especially those with porous borders and which are dependent on foreign investment and foreign trade. Having a reputation for a deficient AML/CFT framework could make it difficult for an FDI-dependent country to attract new investment as some parent companies may prohibit the establishment of subsidiaries in a country with a deficient AML/CFT regime. It also increases the country’s risk profile which would make financial transactions and relationships with businesses and persons in that country subject to enhanced due diligence due to the higher level of perceived risk, increasing the chances of its local banks losing their foreign correspondent banking relationships and  thereby restricting its access to the global trade and financial systems.

Guyana’s progress to date

Since coming to power in 2014, the new government in Guyana has been able to implement several reforms to improve the country’s level of compliance with FATF recommendations. These changes have been well-documented in this article by Anand Goolsooran. However, some of those identified in CFATF’s 10th Follow Up Report released June 2016 include the passing of the AML/CFT (Amendment) No.2 Act 2015 in January 2016 and  of the AML/CFT (Amendment) Act No. 15 of 2016 in May 2016 and the issuance of AML/CFT Directives and Guidelines.

As a result, the CFATF assessors concluded as follows:

Guyana has significantly improved its overall level of compliance and most importantly Guyana has fully addressed the core and key Recommendations. While Guyana satisfies the criteria for application to exit the follow-up process, it is still in the FATF ICRG process which it needs to complete first. As such it is recommended that Guyana stay in enhanced follow-up and be required to report on continuing implementation to the next Plenary in November 2016

In mid-September 2016, the visiting FATF/ICRG delegation praised Guyana’s progress towards bringing its framework in compliance with FATF recommendations.  As of October 2016, Guyana is no longer subject to FATF’s on-going global AML/CFT compliance process.  Guyana will continue to work with CFATF to address the outstanding issues with the goal to exit the CFATF follow-up process.

The outcomes of the FATF October 2016 Plenary session may be viewed here.

Alicia Nicholls, B.Sc., M.Sc., LL.B. is a trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

Belize accepts TRIPS Amendment

Alicia Nicholls

Belize has become the latest member of the Caribbean Community (CARICOM) to accept the amendment to the World Trade Organisation’s (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) which seeks to improve poorer members’ access to affordable medicines.

This  amendment to the TRIPS Agreement formalises and makes permanent the waiver provided by paragraph 6 of the Doha Declaration on TRIPS and Public Health, known as the “Paragraph 6 System” in 2003. The amendment was approved by the WTO General Council on December 6, 2005, and permits exporting countries to grant compulsory licenses for the manufacture and export of pharmaceutical products to poorer countries.

The protocol is not yet in force and will only enter into force upon acceptance by two-thirds of the WTO’s membership. The original deadline for acceptance was December 1, 2007 but has been extended to December 31  2017 by the General Council in November 2015.

So far the following CARICOM countries have accepted the amendment: Grenada (2015), St. Kitts & Nevis (2015), St. Lucia (2016), Trinidad & Tobago (2013).

More from the WTO’s press release here.

Alicia Nicholls, B.Sc., M.Sc., LL.B. is a trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

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