Caribbean Trade Law and Development

Category: Trade

  • Caribbean Trade and Development News Digest – February 20-26, 2022

    Caribbean Trade and Development News Digest – February 20-26, 2022

    Welcome to our Caribbean Trade and Development News Digest covering the week of February 20-26, 2022! 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 do hope you enjoy this week’s edition!

    THIS WEEK’S HIGHLIGHTS

    One of the biggest news developments this week was the announcement that the long overdue 12th Ministerial Conference of the World Trade Organization, after successive postponements due to the COVID-19 pandemic, will be held the week of June 13 in Geneva, Switzerland. Read more here.

    CARICOM countries signed the St George’s Declaration – Towards the Reduction of Intra CARICOM Roaming Charges with two of the telecommunication providers in the Caribbean. Read more here

    Coming up this week will be the 33rd Inter-sessional meeting of the CARICOM Heads of Government. Read more here.

    REGIONAL NEWS

    CARIFORUM talks trade

    Barbados Today: Trade between the Caribbean Community (CARICOM) and the European Union (EU) remains a top priority, officials from the EU Commission have assured. Read more

    Ukraine Crisis | Russian invasion on agenda for CARICOM meeting

    Jamaica Gleaner: Foreign Affairs and Foreign Trade Minister Kamina Johnson-Smith has indicated that Russian military action is on the agenda for discussion at the upcoming CARICOM heads of government meeting. Read more

    PM Briceno Comments on the Upcoming SICA-CARICOM Joint Summit

    LoveFM: Hundreds of leaders and officials are expected to land on Ambergris Caye next week for the SICA-CARICOM Joint Summit. It is a 3-day event that Belize is hosting. Prime Minister John Briceno told Love News that such a meeting is way overdue and will serve to strengthen relations in trade and other aspects. Read more

    DR begins building border wall with Haiti

    Barbados Today: The Dominican government on Sunday began building a wall that will cover almost half of the 392-kilometre (244 miles) border with Haiti, its only land neighbor, to stop irregular migration and the smuggling of goods, weapons and drugs. Read more

    The many questions of governance in the metaverse

    Newsday: It was clear from the start of the conversation about the role of governance and national sovereignty in the metaverse, that there were far more questions than answers. Read more

    St. Kitts & Nevis to ban single use plastics

    Travel Pulse: St. Kitts and Nevis, the two-island nation that is quickly becoming a popular Caribbean cruise destination, has announced plans to ban single-use plastics in the near future. Read more

    INTERNATIONAL NEWS

    WTO chairpersons for 2022

    The WTO General Council, on 24 February 2022, noted the consensus on a slate of names of chairpersons for WTO bodies. Read more

    Members updated on progress to further integrate small economies into world trading system

    WTO: At the General Council meeting of 23 February 2022, the Chair of the Committee on Trade and Development (CTD), Ambassador Muhammad Mujtaba Piracha of Pakistan, outlined his efforts in working with members to advance the discussions under the WTO’s Work Programme on Small Economies. Read more

    UK and Singapore sign new innovative digital trade deal

    Gov.uk: The International Trade Secretary lands in Singapore to sign a groundbreaking digital trade deal. Read more

    Global disruptions to trade about to get worse

    Bloomberg: With Russia’s invasion of Ukraine early Thursday, energy costs are soaring, stocks are plunging, Western sanctions are being sharpened, and central bankers already worried about inflation face additional drags from weaker consumer confidence and bigger potential shocks to fragile European economies. Read more

    West to cut some Russian banks off from Swift

    BBC: The EU, US and their allies have agreed to cut off a number of Russian banks from the main international payment system, Swift. Read more

    White House Lays Out Broad Changes to Address Supply-Chain Shortfalls

    Wall Street Journal: The administration says ‘we need to have some ambition’ with measures aimed at improving the flow of goods over the long term. Read more

    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:

  • CARICOM Heads to tackle wide range of issues at Meeting in Belize

    CARICOM Heads to tackle wide range of issues at Meeting in Belize

    (CARICOM Secretariat, Turkeyen, Greater Georgetown, Guyana – Friday, 25 February 2022)  –  Caribbean Community (CARICOM) Heads of Government will deliberate on several major issues, including the Region’s post-pandemic economic recovery, when they gather on San Pedro in Belize for their Thirty-Third Inter-Sessional Meeting on 1-2 March 2022.

    The Meeting, under the Chairmanship of Prime Minister Mr. John Antonio Briceño of Belize, is also expected to address advancing the implementation of the CARICOM Single Market and Economy (CSME), regarded as the Region’s most practical option for responding to current economic challenges, and building a more resilient Caribbean Community.

    The situation in Member State Haiti, including the current political impasse and security and socio-economic challenges, will also be examined. Heads will also discuss the regional security situation including any new challenges from the period of the pandemic.

    The Meeting is expected to advance the CARICOM Agri-Food systems agenda with recommendations for regional food and nutrition security.  The Heads are also expected to engage representatives of the Private Sector, Labour and Civil Society.

    Climate Change, an existential threat to Caribbean small island and low-lying States is also before the Meeting, which will assess the outcomes of COP26 – the last global Climate Change conference in Glasgow, and begin to outline the Region’s plan of work for COP27.

    The Meeting begins on Tuesday at 9:00 a.m. Belize Time with an Opening Session which will be addressed by Secretary-General Dr. Carla Barnett; Out-Going Chairman Prime Minister Mr. Gaston Browne of Antigua and Barbuda; and the Chairman, Prime Minister Briceño.  There will be a Closing Press Conference on Tuesday at 5:00 p.m. Belize Time. 

    This will be the first in-person CARICOM Heads of Government Inter-Sessional Meeting for the Secretary-General and new Deputy-Secretary General Dr. Armstrong Alexis who took up their positions last August and November respectively.  Two new Assistant Secretaries-General – Ambassador Donna Forde who heads the Foreign and Community Relations Directorate and Ambassador Wayne McCook who heads the Single Market and External Trade Directorate, are also attending their first Heads of Government Meeting.

    Following the Inter-Sessional Meeting, CARICOM Heads of Government will join their Central American counterparts for the Fourth CARICOM-SICA summit on 3 March, also on San Pedro, Belize, where the two Regions will seek to build on common interests and challenges, including the current pandemic and Climate Change.  United Nations Secretary-General Antonio Guterres is expected to address the gathering.

    Editor’s Note:
    CARICOM Secretary-General Dr. Carla Barnett provided a preview of the major issues in this interview:   https://vimeo.com/681489890

  • Caribbean Trade and Development News Digest – February 13-19, 2022

    Caribbean Trade and Development News Digest – February 13-19, 2022

    Welcome to our Caribbean Trade and Development News Digest covering the week of February 13-19, 2022! 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 do hope you enjoy this week’s edition!

    THIS WEEK’S HIGHLIGHTS

    In its Global Trade Update published February 17, UNCTAD reports that in 2021, world trade in goods remained strong and trade in services finally returned to its pre-COVID-19 levels. Read more here.

    The British Chambers of Commerce’s latest survey has found that 71% of UK exporters say the post-Brexit UK-EU trade deal has been negative for business. Read more here.

    Barbados, Guyana and Suriname held bilateral and trilateral talks on the sidelines of the International Energy Conference hosted in Guyana this week. Read this report from Barbados’ Nation News here and this report from the Guyana Ministry of Foreign Affairs and International Cooperation here.

    In a statement released this week on the escalating tensions along the Ukraine-Russia border, the Caribbean Community (CARICOM)noted its deep concern about the ongoing developments and called on “all parties involved to act responsibly and with self-restraint and responsibility to avoid destabilisation in that region”. Read the statement here.

    The Caribbean Court of Justice (CCJ) has become the first court in the region to be accepted into the prestigious International Consortium for Court Excellence (ICCE). Read the full media release here.

    REGIONAL NEWS

    Caribbean Community to expand definition of who is a CARICOM national

    BBN: Саbіnеt hаѕ ѕіgnіfіеd іtѕ аррrоvаl tо аmеndmеntѕ tо Аrtісlе 32 оf thе Rеvіѕеd Тrеаtу оf Сhаguаrаmаѕ іn rеlаtіоn tо thе іѕѕuе оf thе сurrеnt іmрlісаtіоnѕ оf whо іѕ а САRІСОМ nаtіоnаl. Read more

    CARICOM ICT ministers approve plans to fast-track digital transformation

    Searchlight: Ministers of ICT on Friday, February 11 unanimously approved the CARICOM Secretariat-led action plans to accelerate the Region’s digital transformation. The Secretariat presented the plans to the Ministers at a special meeting of the Council for Trade and Economic Development (COTED) on ICT which was held virtually, a release from the secretariat said. Read more

    CDB launches Belize Trade Program

    Amandala: The Caribbean Development Bank (CDB), in partnership with the Ministry of Foreign Affairs, Foreign Trade, and Immigration, launched the bank’s Belize Trade Program and Economic Partnership Agreement (EPA)/CARICOM Single Market Economy (CSME) Standby Facility Projects this past Thursday. Read more

    Survey: How Citizenship by Investment Programmes of Caribbean benefit Europe

    WIC: Brussels based media organisation, Press Editorials released a report on citizenship by investment programme of Caribbean islands. Read more

    Exports rise in St Vincent & the Grenadines

    Jamaica Observer: Food exports from St Vincent and the Grenadines (SVG) increased during the first month of 2022, signalling an evident recovery in the agriculture sector, following the severe impact of La Soufriére volcano eruptions in 2021. Read more

    Belize, Mexico hold Ministerial Meeting to discuss advancement of formal trade agreement

    BBN: Belize and Mexico held a virtual high-level ministerial meeting on Wednesday to advance discussions for a trade agreement between the two countries. Read more

    Dominica signs contract to drill geothermal wells

    Nation news: Dominica has signed a multi-million dollar agreement with an Iceland-based company to drill two wells as the island continues with its efforts to develop its geothermal energy sector. Read more

    Argentina leader and Barbados PM agree on cooperation

    Barbados Today: Argentina’s President Alberto Fernández has ended a one-day working visit to Barbados after holding discussions with Prime Minister Mia Mottley and leaders of the Organisation of Eastern Caribbean States (OECS). Read more

    Region’s largest hybrid power plant to open in Barbados

    Barbados Today: Barbados is to become the home of the largest hybrid power plant in the Caribbean, which will supply thousands of homes with electricity from solar and locally produced green hydrogen. Read more

    Barbados and KSA explore the scope for sustainable tourism development

    Barbados Today: On Friday, February 18, Minister of Tourism and International Transport and Leader of Government Business in the Senate, Senator, Lisa Cummins, welcomed a delegation from the Kingdom of Saudi Arabia (KSA), headed by Ahmed Al-Khateeb, Minister of Tourism and Chairman of the Saudi Fund for Development, for a series of bilateral discussions centered around tourism development in Barbados. Read more

    Policies In Place To Develop And Maintain Trade And Foreign Relations

    JIS: Governor-General, His Excellency, the Most Hon. Sir Patrick Allen, says the Government continues to execute policies and activities to develop and maintain Jamaica’s trade and foreign relations for national recovery and development. Read more

    Guyanese-Trinidadian joint venture

    Demerara Waves: A joint venture logistics company between Roraima Airways and the Trinidad-headquartered RAMPS Logistics have teamed up to form the majority Guyanese-owned Arapaima Logistics which has already sealed a deal to ship 10,000 coconuts to the United States (US), officials said Saturday. Read more

    INTERNATIONAL NEWS

    Governments Weigh New Global Treaty on Plastics and Sustainable Development

    IISD: From 28 February-2 March 2022, the United Nations Environment Assembly is holding a historic meeting (UNEA 5.2) that will discuss a mandate to create the world’s first plastics treaty, an international law aimed at reducing plastic pollution worldwide. Read more

    USTR Releases Annual Report on China’s WTO Compliance

    USTR: The Office of the United States Trade Representative today released its annual “2021 Report to Congress on China’s WTO Compliance,” laying out the Biden Administration’s assessment of China’s membership in the World Trade Organization. Read more

    U.S. considers expelling Nicaragua from trade pact over crackdowns

    NBC: The Biden administration is considering trying to expel Nicaragua from a lucrative regional free trade pact — or allocate its valuable sugar quota to another country in Central America — to retaliate against President Daniel Ortega’s crackdown on his opponents, according to a U.S. official. Read more

    EU-AU summit: New commitments, old realities

    Africanews: At the just-concluded summit in Brussels, the EU announced several packages of support to bolster health, pandemic recovery, education, and stability, but cautious optimism from African leaders was palpable. Read more

    COVID-19 amplifies urgency for effective intra-Africa trade, economic recovery

    Independent (Uganda): The ongoing COVID-19 pandemic has amplified the sense of urgency in Africa’s quest towards effective and timely implementation of intra-Africa trade and economic recovery, experts have argued. Read more

    Jacob Rees-Mogg: New Brexit minister promises to cut red tape

    BBC: The minister for Brexit opportunities has urged firms struggling with red tape to write to him, while on a visit to the UK’s biggest container port. Read more

    Trade Secretary secures major trade bloc milestone ahead of Asia visit

    UK.gov: The UK has today [18 February 2022] reached a major milestone to join what the International Trade Secretary has hailed ‘one of the largest and most exciting free-trading clubs in the world’. Read more

    US Indo-Pacific Strategy Short on Trade Incentives, Experts Say

    VOA: A major initiative to strengthen and cement America’s ties with Asia and counterbalance China’s expanding influence lacks robust trade incentives that are viewed as politically perilous in the United States, where protectionist sentiment runs high, experts told VOA. Read more

    What the Ambassador Bridge and other ‘freedom convoy’ blockades mean for Canada-U.S. trade

    The Conversation: Trade between Canada and the United States was hampered for almost a week by the blockade of the Ambassador Bridge at the Windsor-Detroit border as part of the so-called freedom convoy protest. Read more

    Canada says USMCA panel finds U.S. solar tariffs violate trade pact

    Reuters: Canada prevailed on Tuesday in a challenge to U.S. solar panel tariffs under the trade pact between Canada, the U.S. and Mexico, its trade minister said on Tuesday, ahead of planned talks with Washington over the dispute. Read more

    EU launches WTO dispute against China

    Reuters: The European Union launched a legal challenge against China at the World Trade Organization on Friday, arguing that Chinese courts were preventing European companies from protecting their telecom technology patents. Read more

    EU ministers to back Lithuania in China trade battle

    Euractiv: France, which holds the EU’s rotating presidency, said on Sunday (13 February) that the European Union would firmly back its fellow member Lithuania in its brewing trade war with China. Read more

    EU trade ministers discuss vaccines with WTO chief

    EU Reporter: The French Presidency hosted an informal council of EU trade ministers in Marseille today (14 February). Ministers met with WTO Director General Ngozi Okonjo-Iweala to discuss trade issues, including vaccines. Read more

    Foreign Ministers of Argentina, Uruguay highlight bilateral increasing trade

    Mercopress: Argentina’s Foreign Minister Santiago Cafiero Tuesday in Buenos Aires with his Uruguayan counterpart Francisco Bustillo to discuss a 33% increase in bilateral trade, among other issues. Read more

    Asia Pacific trade booms despite COVID curbs: ADB

    Al Jazeera: Asian Development Bank President Masatsugu Asakawa says harsh pandemic restrictions are now ‘more difficult to justify’. Read more

    Taiwan to keep canvassing support for CPTPP bid: Cabinet

    Focus Taiwan: The government will continue to seek support from the member states of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) for Taiwan’s own entry into the trade pact, Premier Su Tseng-chang (蘇貞昌) said Saturday. Read more

    Vietnam key beneficiary of RCEP: Singaporean bank

    Phnom Penh Post: Vietnam is likely to be a key beneficiary of the Regional Economic Comprehensive Partnership (RCEP) regarding tariff reductions and foreign direct investment, Singapore’s leading consumer bank DBS said in a recent report. Read more

    ASEAN FMs reiterate commitment to ensure full, effective implementation of RCEP agreement

    Khmer Times: Foreign ministers of the Association of Southeast Asian Nations (ASEAN) have reiterated their commitment to ensure the full and effective implementation of the Regional Comprehensive Economic Partnership (RCEP) agreement, which took effect on January 1, Cambodian Foreign Minister Prak Sokhonn said. Read more

    China, New Zealand ratify upgraded FTA

    Global Times: China and New Zealand have ratified an upgraded version of their long-standing free trade agreement, which is expected to inject more vitality into the two economies. It marks an important step in implementing the free trade agreement (FTA) upgrade strategy, experts and businesspeople said. Read more

    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:

  • CARICOM-Colombia Trade: Prospects for Deepening?

    CARICOM-Colombia Trade: Prospects for Deepening?

    Alicia Nicholls

    On January 28, 2022, the Caribbean Community (CARICOM) and the Republic of Colombia successfully concluded their Second Ministerial Summit. Trade and investment, especially in the context of the existing CARICOM-Colombia partial scope agreement, was among the areas highlighted in the summit’s outcome document, the Declaration of Barranquilla. This just concluded summit provides an opportune moment for exploring the prospects for deepening CARICOM-Colombia trade in a context where CARICOM Member States have prioritised export diversification as part of their post-COVID-19 economic recovery efforts.

    CARICOM comprises 15 Member States (14 independent countries and 1 British Overseas Territory) with a combined population of about 16 million. Despite linguistic and cultural differences, Colombia presents an attractive market to CARICOM for at least five main reasons. First, it is the fourth largest economy in Latin America with a GDP of US$271.3 in 2020. Second, while there are income disparities, Colombia is one of the most prosperous economies in Latin America and became a member of Organisation for Economic Cooperation and Development in April 2020. Third, Colombia represents a market of over 50 million people and is a member of the Andean Community, a free trade area comprising Bolivia, Peru and Ecuador. Fourth, ECLAC estimates GDP growth of 9.5% in Colombia in 2021, following a contraction of 6.8% in 2020. Colombia is ranked by the World Bank as an Upper Middle Income Economy. Fifth, Colombia is one of the countries with which CARICOM has a trade agreement in place.

    Existing CARICOM-Colombia trade

    According to International Trade Centre (ITC) Trade Map data, Colombia enjoys a trade surplus with CARICOM, meaning that it exports more to CARICOM than it imports. Colombia exported US$596 million in goods from CARICOM in 2020, while importing $128 million from the bloc in that same year, resulting in a balance of trade $468 million in favour of Colombia. However, trade between Colombia and CARICOM has dropped significantly from 2019 figures when Columbia exported US$1,289 million to, and imported US$142 million in goods from the region.

    Colombia and CARICOM’s trade with each other only account for a small percentage of their total trade with the world respectively and has declined sharply since 2020. The top goods traded between CARICOM and Colombia were concentrated, falling mainly under minerals/fuels, fertilisers, organic chemicals, sugars and confectionary and electrical machinery. 

    Anecdotally, it is known that some limited services trade exists between CARICOM and Colombia, such as educational services and tourism/travel services for example. However, as data on services trade between CARICOM and Colombia were difficult to obtain, the focus will be on existing goods trade.

    There is, therefore, scope for not only expanding existing levels of trade between CARICOM and Colombia but also diversifying the existing products traded, including expanding trade in services, such as tourism/travel services, cultural/creative services, professional services, education and energy services.

    CARICOM-Colombia Trading Framework

    CARICOM and Colombia signed the Agreement on Trade, Economic and Technical Cooperation (referred to here as the CARICOM-Colombia partial scope agreement) on July 24, 1994 and which entered into force among 12 out of the 15 CARICOM Member States.

    The agreement takes into account the different levels of development between CARICOM Member States and Colombia. As such, the agreement initially provided for non-reciprocal access to the Colombian market. A Protocol amending the agreement in 1998 allowed for reciprocity. This Protocol outlines the list of goods eligible for duty-free trade. CARICOM Member States which are classified as Less Developed Countries for the purposes of the Revised Treaty of Chaguaramas are not required to give preferential access to Colombia goods. These are the OECS countries and Belize.

    To this author’s knowledge, there are no bilateral investment treaties between Colombia and CARICOM countries and although there had been mention of an intention by Barbados under the previous government to negotiate a tax treaty with Colombia, no tax treaty exists between Colombia or any CARICOM Member State. It is known that over the years there have been some bilateral trade missions that have taken place between Colombia and some Caribbean countries.

    Future steps

    It is recognized that the Ministerial Summit is a high-level forum where higher level issues and broad areas of commitments will be discussed. Trade and investment were among the several areas for cooperation explicitly referred to in the Declaration of Barranquilla. Indeed, the Declaration recognized the 28th anniversary of the establishment of official relations between Colombia and CARICOM through the signing of the CARICOM-Colombia PSA. It also noted that the agreement “should be an instrument for economic and commercial reactivation. They also “reaffirm the importance of an active agenda, that allows the current commercial Agreement to be adapted to new global trends and incorporate new disciplines and products to encourage greater participation by companies in foreign trade, allowing for the comprehensive and further deepening of economic and commercial relations”. They invited the Bahamas, Haiti and Suriname, which are not currently signed on to the agreement, to explore their incorporation into the PSA.

    Of particular interest was the statement in the Declaration of Barranquilla where it highlighted “the interest of some countries in creating bilateral agreements with Colombia on trade and investment matters and, in line with the above, urge these countries to establish working groups to explore such bilateral trade approaches.” CARICOM countries would have to consider if it is in their interests to pursue these agreements on a bilateral basis, as opposed to continuing to build on and expand the existing CARICOM-Colombia PSA.

    However, it is firms which trade and not countries. Both CARICOM Member States and Colombia will need to assess what are the levels of interest among CARICOM and Colombia businesses in each other’s markets, the level of awareness of the CARICOM-Colombia PSA among the respective business communities, the current barriers faced and what mechanisms  governments could put in place to help businesses overcome these barriers. A good mechanism for doing this is the CARICOM-Colombia Joint Council on Trade, Economic and Business Cooperation established by the CARICOM-Colombia PSA and which is responsible for the administration of this Agreement and consisting of representatives of Colombia and CARICOM. It would also be interesting to know whether the CARICOM-Colombia Business Council as provided for in Article 20 of the PSA has met over the years and what has it accomplished so far.

    In summary, Colombia presents an interesting and promising market for CARICOM countries. This will be a space to watch as CARICOM countries intensify their export diversification efforts.

    Alicia Nicholls, B.Sc., M.Sc., LL.B. is a trade and development specialist and founder of the Caribbean Trade Law Blog www.caribbeantradelaw.com.