Caribbean Trade Law and Development

Category: Trade

  • COMMUNIQUÉ ISSUED AT THE CONCLUSION OF THE FORTY-SECOND REGULAR MEETING OF THE CONFERENCE OF HEADS OF GOVERNMENT OF THE CARIBBEAN COMMUNITY (CARICOM), 5-6 JULY 2021

    CARICOM Secretariat, Turkeyen, Greater Georgetown, Guyana – Wednesday, 7 July 2021)   –   The Forty-Second Regular Meeting of the Conference of Heads of Government of the Caribbean Community (CARICOM) was held virtually on 5-6 July 2021.  Chair of the Conference, the Prime Minister of Antigua and Barbuda, Honourable Gaston Browne presided over the proceedings.

    Other Members of the Conference in attendance were: Prime Minister of The Bahamas, the Rt Honourable Dr. Hubert Minnis; Prime Minister of Barbados, Honourable Mia Amor Mottley, Q.C; MP;  Prime Minister of Belize, Honourable John Briceño; Prime Minister of Dominica, Honourable Roosevelt Skerrit; Prime Minister of Grenada, Dr. the Rt. Honourable Keith Mitchell; President of Guyana, His Excellency Dr. Mohamed Irfaan Ali; Prime Minister of Jamaica, the Most Honourable Andrew Holness; Premier of Montserrat, Honourable Easton Taylor-Farrell; Prime Minister of St. Kitts and Nevis, Dr. the Honourable Timothy Harris; Prime Minister of St. Vincent and the Grenadines, Dr. the Honourable Ralph Gonsalves; President of Suriname, His Excellency Chandrikapersad Santokhi; and Prime Minister of Trinidad and Tobago Dr. the Honourable Keith Rowley.

    Saint Lucia was represented by Ambassador to the Caribbean Community Her Excellency Elma-Gene Isaac.

    Associate Members in attendance were: Bermuda represented by Deputy Premier Honourable David Burt; Cayman Islands represented by Premier the Honourable G. Wayne Panton; and the Turks and Caicos Islands represented by Premier the Honourable Charles Missick. British Virgin Islands was represented by Deputy Premier, Honourable Dr. Natalio Wheatley.

    OPENING CEREMONY
    Secretary-General Ambassador Irwin LaRocque, immediate past Chair Dr. the Honourable Keith Rowley, Prime Minister of Trinidad and Tobago and Chair of Conference the Honourable Gaston Browne, Prime Minister of Antigua and Barbuda addressed the Opening Session.

    The speakers all addressed concerns about the on-going COVID-19 Pandemic in particular the inadequate supplies of vaccines and the risk to lives and livelihoods of not being inoculated. They also expressed solidarity with the Member States which had been affected by recent natural disasters. 

    The Heads of Government and the Secretary-General welcomed the incoming Secretary-General Dr. Carla Barnett who assumes office on August 15, 2021.

    The Secretary-General, speaking at his last Regular Meeting of the Conference, thanked the Heads of Government for their support during his tenure and expressed his pride at being allowed to serve the Community.

    Both Heads of Government praised the Secretary-General for his achievements during his tenure and spoke highly of his performance particularly during the difficult time which the Region has been experiencing.

    All the Statements are available at www.caricom.org.

    THE POLITICAL SITUATION IN HAITI
    Heads of Government received a report on the situation in Haiti from the Expert Group which they established at the 32nd Intersessional Meeting in February 2021 and agreed to issue the attached statement.

    NATURAL DISASTERS
    Heads of Government received an update on the situation in St Vincent and the Grenadines in the aftermath of the eruption of the La Soufrière volcano and the recent flooding in Guyana and Suriname. They also received a report from the countries affected by the recent passage of Hurricane Elsa, in particular Barbados, Jamaica, Saint Lucia and St Vincent and the Grenadines. 

    Heads of Government expressed their solidarity with the affected states.

    They reiterated that the need for strengthening resilience was a central theme for Member States in view of the Region’s complex multi-hazard environment. 

    Heads of Government noted that the 2021 hurricane season has already commenced with an expected eighteen named storms of which eight are forecast to become hurricanes and four major hurricanes.

    Heads of Government recognised the critical role that regional institutions have played and continue to play in the response to regional emergency events. In that regard they commended the sterling work of the Seismic Research Centre of The University of the West Indies (The UWI) in providing timely and accurate scientific advice to the Government of St. Vincent and the Grenadines with respect to the eruption of the La Soufrière volcano.

    Heads of Government expressed appreciation to the Region’s development partners for the financial and technical support which continues to be provided to the Regional Response Mechanism led by the Caribbean Disaster Emergency Management Agency (CDEMA) in support of Member States.

    Heads of Government agreed to lobby development partners for continued support in view of the ongoing response and the requirements for recovery going forward.

    COVID-19
    Heads of Government considered a range of issues emanating from a report by the Caribbean Public Health Agency (CARPHA) on the situation with respect to the COVID-19 virus. The most critical of these was the continuing need for equitable access to vaccines as well as how to treat with the emerging COVID variants.

    They expressed their determination for the Region to achieve herd immunity of 80 per cent coverage before the end of 2021 and, to this end, agreed to redouble their efforts to acquire adequate supplies of vaccines.

    Heads of Government expressed appreciation to the Prime Minister of Trinidad and Tobago, Dr. the Honourable Keith Rowley, CARPHA, and the CARICOM Secretariat for the work undertaken to acquire vaccines.

    Heads of Government further expressed appreciation to the Governments of Third States, Regional Organisations and the community of International Development Partners (IDPs) for their financial support and donations of vaccines to the Caribbean Community.

    Heads of Government thanked the United States of America for its offer of vaccines and looked forward to a speedy conclusion to the negotiations for their delivery.

    Heads of Government agreed that equity of access to COVID-19 vaccines is still of utmost importance to CARICOM Member States and as such efforts to achieve same should be pursued with PAHO/WHO, Third States, and the Facilitation Council for the Access to COVID-19 Tools (ACT) Accelerator to address this matter.

    Heads of Government mandated the CARICOM Secretariat to continue to collaborate with CARPHA, the Pan American Health Organization (PAHO), regional nursing, medical and allied health professional bodies and institutions, to identify strategies and policy guidelines to address vaccine hesitancy, using an evidence-based approach.

    Heads of Government urged that employees co-operate with employers to ensure a safe working environment either through vaccination or regular testing.

    Heads of Government emphasised the importance of citizens being inoculated so that Member States could achieve herd immunity, recognising that no one is safe until everyone is safe.

    They also mandated the CARICOM Secretariat to mobilize resources to support the implementation of communication and other initiatives to address vaccine hesitancy at the regional and national levels.

    ANTIMICROBIAL RESISTANCE
    Heads of Government recognised that Antimicrobial Resistance (AMR) is a silently expanding global threat with potentially devastating health, social and economic impacts for the Region.  
    Heads of Government noted that AMR occurs when bacteria, viruses, fungi and parasites change over time making manageable infections harder to treat with existing medicines, therefore increasing the risk of disease spreads, severe illness and death.  

    Heads of Government also recognised that the economic impact of uncontrolled AMR would be catastrophic as it places sustainable food production and safety at risk. They further noted that environmental conditions affect disease transmission and that AMR and climate change are inextricably linked and can severely impact the tourism and travel sector. 

    In response to the challenge, Heads of Government agreed to establish multi-sectoral AMR national action plans in line with the One Health approach including integrated AMR surveillance systems for the human, animal, plant and environmental sectors.

    CSME
    Heads of Government recognised that the implementation of the CSME requires the commitment of each Member State.

    They also recognised the importance of the internal mechanisms including strengthened governance and accountability structures in Member States for effective implementation.

    Heads of Government agreed that all Member States would commit to enhanced public education programmes to better inform stakeholders of the benefits of the CSME.

    Heads of Government issued a Declaration on the CSME which is attached.

    CARICOM DEVELOPMENT FUND (CDF)
    Heads of Government welcomed the appointment of Mr. Wendell Samuel of St Vincent and the Grenadines as Chair of the CARICOM Development Fund (CDF).

    TOURISM 
    Heads of Government, recognising the need to re-open economies while balancing the health and economic livelihood of Community Nationals, agreed that new protocols for health, safety, visitor management and sanitization measures were of utmost importance in encouraging the resuscitation of the sector. 

    Heads of Government received the first report on a Draft Joint Tourism Policy for CARICOM: COVID-19 Emergency Plan for the period Q3 2021 to Q4 2022 prepared by the Interim Tourism Working Group (ITWG) which they established earlier this year.

    They endorsed the recommendations of the Group with respect to building the COVID-19 Health Safety Risk Resilience and enhancing CARICOM Destination Capacity among others.
    Heads of Government agreed to consider proposals to reduce taxes on intra-regional travel for a pilot period of six months.

    Heads of Government agreed to consider the use of a Vaccination Passport for vaccinated persons travelling by air and sea, supported by a Digital Vaccination Database, possibly based on the Barbados model in the first instance.

    Heads of Government also agreed to consider proposals to create a regional travel bubble for a pilot period of six months taking account of previous lessons learnt.

    Heads of Government further agreed on the need for further consultation on the development of a harmonised Policy for cruise ships covering both vaccinated and unvaccinated persons. 

    In this regard, Heads of Government mandated the CARICOM Secretariat, in collaboration with CARPHA and other relevant regional security agencies to convene a high-level meeting with cruise lines to agree on the minimum health and safety requirement for the resumption of cruise sailing in the Caribbean.

    Heads of Government commended the work of the ITWG comprising representatives from the Caribbean Tourism Organization (CTO), Caribbean Hotel and Tourism Association (CHTA), the CARICOM Secretariat, the Organisation of the Eastern Caribbean States (OECS) Commission and the Governments of The Bahamas, Jamaica, and Saint Lucia.

    FOOD PRODUCTION AND FOOD SECURITY
    Heads of Government considered an update from the Lead Head of Government responsible for Agriculture; Agricultural Diversification and Food Security in the CARICOM Quasi Cabinet, His Excellency Mohamed Irfaan Ali, President of Guyana on the work of the Special Ministerial Taskforce (MTF) on Food Production and Food Security established at the Thirty-Second Inter-Sessional Meeting of the Conference of Heads of Government.

    Heads of Government welcomed the actions so far taken to advance the CARICOM agri-food systems agenda, including agreement by the Taskforce on terms of reference, an implementation plan, and on priority commodities for heightened investment by the regional private sector. 

    In that regard, Heads of Government welcomed the recent engagement of the Prime Ministerial Sub-Committee on the CARICOM Single Market and Economy with the Special Ministerial Taskforce and the CARICOM Private Sector Organisation Inc. (CPSO), and agreed that priority attention be accorded to the determination of the quantum of investment required and the attendant implementation timelines.

    Heads of Government also received an initial presentation on transport and logistics aspects and agreed that priority attention be given to proposals to incentivise private sector partnership in addressing transport and logistics requirements for implementation of the agri-food systems agenda and to inviting expressions of interest in this regard.

    SINGLE ICT SPACE – ROAMING CHARGES
    Heads of Government welcomed the Report on the outcome of the initial engagement with the two principal telecommunications providers in the Region on the issue of the elimination of roaming charges in the Region.

    Heads of Government endorsed the Governance Framework and the composition of the Negotiation Team led by Mr. Selby Wilson of the Caribbean Telecommunications Union (CTU) and also endorsed the projected timelines and action proposed in relation to the negotiations. 

    TAX TRANSPARENCY, BLACKLISTING AND DE-RISKING
    Heads of Government stressed that the blacklisting and de-risking phenomena remain as serious threats to the economic security of CARICOM Member States.

    Heads of Government acknowledged the excessive economic pressure exerted on CARICOM States by the European Union through the continuous inclusion of several Member States on blacklists with respect to non-cooperative tax jurisdictions and High Risk Third Countries with Strategic Anti-Money Laundering / Countering Financing of Terrorism (AML/ CFT) Deficiencies.

    Heads of Government considered issues concerning the recently announced decision by the Organisation for Economic Co-operation and Development (OECD) for a minimum global corporate tax rate and agreed to meet in special session before the end of July to discuss this matter.

    Heads of Government welcomed the efforts of the Organisation of African, Caribbean and Pacific States (OACPS) to facilitate a more transparent, inclusive and mutually beneficial relationship through dialogue and consultation within the framework of the Cotonou Partnership Agreement which links members of the OACPS to the EU.

    Heads of Government while recognising that the US Anti-Money Laundering Law (AMLA) 2020, enacted on 1 January 2021, presents a more structured risk-based approach to the conduct of correspondent banking relations, noted that it can potentially worsen the regulatory landscape for CARICOM banks.

    Heads of Government further agreed to continue efforts to strengthen their AML-CFT frameworks and will pursue a more effective engagement with the Financial Action Task Force (FATF)/Caribbean Financial Action Task Force (CFATF) and other standard setting bodies towards this end.

    ENGAGEMENT WITH PRIVATE SECTOR, LABOUR AND CIVIL SOCIETY
    Heads of Government engaged with representatives of the CARICOM Private Sector Organisation and the Caribbean Policy Development Centre (CPDC) on behalf of civil society.

    Heads of Government noted the presentations of the two organisations and the issues raised in their statements including the impact of and recovery from the COVID-19 pandemic.

    Heads of Government urged them as leaders in civil society to assist in the drive for the Region’s citizens to be inoculated against the COVID-19 virus for the Community to achieve herd immunity.

    CRIME AND SECURITY
    Heads of Government received a confidential security brief from the CARICOM Implementation Agency for Crime and Security (IMPACS). They expressed concern at the new challenges brought about by the COVID-19 pandemic.

    REVIVAL OF REGIONAL AIR TRANSPORT POST-COVID
    Heads of Government noted that the COVID-19 pandemic has devastated the tourism sector and regional air transport. 

    They mandated the Secretariat to compile a list of fees and taxes which are applicable at the Region’s airports and agreed to the convening of a Special Meeting of the Conference during the week of 12 July 2021 for urgent discussions on the matter of travel taxes. 

    Heads of Government also agreed to request the Caribbean Development Bank (CDB) to provide technical support for this effort.

    BORDER ISSUES

    Belize-Guatemala Relations
    Heads of Government received an update on the progress of Guatemala’s Territorial, Insular and Maritime Claim (Guatemala/Belize) at the International Court of Justice.

    They expressed concern that the undertaking by both countries and the Organization of American States (OAS) to engage in the design and development of a mechanism of co-operation for the Sarstoon River remains outstanding and urged both countries and the OAS to reinvigorate their efforts to this end.

    Heads of Government also urged Belize, Guatemala and the OAS to continue implementing fully the existing Confidence Building Measures. They expressed support for the crucial role of the OAS in the process aimed at resolving the dispute, arising from Guatemala’s claims on Belize; and further called on the international community to continue supporting the OAS Office in the Adjacency Zone.

    Heads of Government reaffirmed their unwavering support for the sovereignty, territorial integrity and security of Belize.

    Guyana-Venezuela Relations
    Heads of Government received an update on the most recent developments in the controversy between the Cooperative Republic of Guyana and the Bolivarian Republic of Venezuela. 

    They noted that Guyana had begun to prepare its Memorial for submission on 8 March 2022 in accordance with the schedule set by the International Court of Justice (ICJ) to hear the case on the merits of Guyana’s application concerning the validity of the Arbitral Award of 1899 and the related question of the definitive settlement of the land boundary between the two countries.

    Heads of Government reiterated their full support for the ongoing judicial process that is intended to bring a peaceful and definitive end to the long-standing controversy between the two countries and urged Venezuela to participate in the process.

    Heads of Government reaffirmed their firm and unwavering support for the maintenance and preservation of the sovereignty and territorial integrity of Guyana.

    UPDATE ON COMMISSION OF INQUIRY IN THE BRITISH VIRGIN ISLANDS
    Heads of Government reiterated support for the Government and People of the British Virgin Islands and agreed to issue the attached statement.

    INSTRUMENTS FOR ADOPTION AND SIGNATURE
    Recalling the decision taken at its Eighteenth Special Meeting to amend the definition of CARICOM national in Article 32(5) (ii) of the Revised Treaty to make it clear that paragraph 5(ii) applied to Montserrat only, Heads of Government adopted the Protocol to amend Article 32 of the Revised Treaty of Chaguaramas establishing the Caribbean Community including the CARICOM Single Market and Economy.

    Antigua and Barbuda and Montserrat signed the Protocol.

    CARIBBEAN REGIONAL POST-COTONOU DEVELOPMENT COOPERATION PROGRAMMING
    Heads of Government endorsed the priorities for Caribbean Regional Post-Cotonou Programming, identified by the Council of Ministers of CARIFORUM.

    Heads of Government agreed to expand the priorities to include Transportation and Health.

    Heads of Government also agreed that CARIFORUM internal consultations and dialogue between CARIFORUM and the European Union (EU) on a Caribbean Multi-Annual Programme, Post-Cotonou, should be intensified.

    Heads of Government further agreed that CARIFORUM should negotiate for continued access to bilateral grant resources through national Multi-Annual Indicative Programme, based on vulnerability, for those CARIFORUM States being denied access to bilateral grant resources.

    SECRETARY-GENERAL OF THE COMMONWEALTH
    Heads of Government noted the current situation regarding the renewal of the Right Honourable Patricia Scotland, Q.C., for a second term as Secretary-General of the Commonwealth.

    Heads of Government also noted that the Secretary-General has been viewed as a champion of developing countries and of the interests of small states during her tenure.

    Heads of Government expressed their broad support for the renewal of the term of office of the Secretary-General.

    SECRETARY-GENERAL OF THE CARIBBEAN COMMUNITY
    Heads of Government expressed their deep appreciation to the outgoing Secretary-General of the Caribbean Community, Ambassador Irwin LaRocque. They lauded his commitment and his hard work to advance the regional agenda despite the challenging circumstances during his tenure. They expressed the hope that his knowledge and experience would continue to be available to the Community and they wished him well in his future endeavours.

    Heads of Government welcomed the imminent succession to the post by Dr. Carla Barnett on August 15 and looked forward to working with her in continuing the quest for the sustainable development of the Community.

    DATE OF THE 33RD INTER-SESSIONAL MEETING OF THE CONFERENCE
    The 33rd Intersessional Meeting of the Conference of Heads of Government is proposed to be held in Belize on 23-24 February 2022.

    Source: CARICOM Secretariat

  • Caribbean Trade and Development News Digest – June 20 – 26, 2021

    Caribbean Trade and Development News Digest – June 20 – 26, 2021

    Welcome to the Caribbean Trade and Development News Digest for the week of June 20-26, 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.

    THIS WEEK’S HIGHLIGHTS

    According to the World Trade Organization (WTO), first quarter 2021 global merchandise trade “continued to bounce back from its collapse earlier in the pandemic, but the pace of recovery has diverged strongly across countries and regions.” Read more here.

    In its latest World Investment Report (2021) released this week, UNCTAD revealed that “foreign direct investment flows plunged globally by 35% in 2020 to $1 trillion, with fall heavily skewed towards developed economies, where FDI fell by 58%. UNCTAD predicts a recovery in 2021, but uncertainty remains. Read the full report here.

    The UK and CPTPP nations will formally commence negotiations for the UK’s accession to that trading bloc. Read more here.

    The Financial Action Task Force (FATF) held its June meetings this week. Among the outcome documents, Barbados, Jamaica, and Cayman Islands remain on its list of jurisdictions subject to increased monitoring (the FATF greylist) and Haiti was added. This and other outcome documents from the June meetings may be accessed here.

    IFC Review’s Big Debate on “Is the G7 tax initiative another form of economic colonialism”?

    I’m delighted to have been one of the contributors to IFC Review’s Big Debate on “Is the G7 tax initiative another form of economic colonialism?” Read the varying reflections of myself and others on this topic here.

    REGIONAL NEWS

    Local content requirements not restrictive to CARICOM investment

    South Florida Caribbean News: The requirements for certain levels of local content involvement in investment and development projects in Guyana should not in any way negatively impact investment by businesses from CARICOM member states which want to do business with its South American sister CARICOM member state. Read more

    Grenada’s Prime Minister spearheads CARICOM engagement with Telecoms Providers on removal of Roaming Charges

    CARICOM: Grenada’s Prime Minister, Dr. the Right Honourable Keith Mitchell is spearheading a CARICOM initiative to eliminate roaming charges for Caribbean nationals traveling within the region. Read more

    Haiti, Other CARICOM Member States on Allocation Plan for Second Tranche of Vaccines From US

    CARICOM: Haiti, and other CARICOM Member States are among countries that will receive vaccines from the 55 million doses that the United States will share through the COVAX Facility. The doses are the remainder of the 80 million that President Joe Biden had pledged to allocate by the end of June. Earlier in the month, the US had indicated its allocation plan for the first 25 million doses to be shared globally. Read more

    CDB president wants Caribbean institutions to advance regional development agenda

    Jamaica Observer: President of the Barbados-based Caribbean Development Bank (CDB), Dr Gene Leon, has proposed the formation of a regional action group, combining the strengths and capacity of key regional institutions to drive the Caribbean’s economic and social development agenda. Read more

    Cement shortage in Grenada

    Nation News: Grenada is seeking permission from the Caribbean Community (CARICOM) Council for Trade and Economic Development (COTED) to be allowed to import cement from outside of the region because the main supplier in Trinidad and Tobago is not exporting product because of reduced business activities linked to containing and controlling the spread of coronavirus (COVID-19) in the neighbouring CARICOM country. Read more

    Approximately 500 head of cattle to be exported from Belize to Mexico next week

    BBN: Next week Belizean cattle farmers will be exporting approximately 500 head of cattle to Mexico as formal cattle exports to the neighboring countries continue and as the government negotiates a partial-scope agreement with Mexico. Read more

    National strategy for commodities, especially sugar, recommended

    Demerara Waves: An International Labour Organisation (ILO)-supported study on the impact of the closure of four of Guyana’s sugar estates has recommended the crafting of a strategy to withstand market volatility of commodities and gear up the sugar industry to invest in ethanol production. Read more

    Barbados making a case for keeping corporate tax rate amid global move

    Barbados Today: Barbados is mounting a case against the introduction of a global minimum corporate tax rate that would see the island having to almost triple its current rate and lose its status as a low-tax jurisdiction. Read more

    Senator Adams: Choose to respond positively

    Barbados Advocate: One Barbados government senator believes Barbados can still profit from the international business sector regardless of the stipulations being imposed by the European Union and other international organisations. Read more

    Association of Jamaicans in China Continues to Provide Support

    JIS: Minister of Foreign Affairs and Foreign Trade, Senator the Hon. Kamina Johnson Smith, says the Association of Jamaicans in China will continue to be leveraged as an outreach mechanism, which complements the Diplomatic Mission, to serve nationals residing in the Asian country. Read more

    Honorary Investment Advisor appointed for Toronto, Canada

    JIS: JAMPRO and the Ministry of Foreign Affairs and Foreign Trade (MFAFT) have officially appointed Mr. Jerrold Johnson to be Jamaica’s Honorary Investment Advisor (HIA) for Toronto, Canada. Johnson will work to promote Jamaican investment opportunities in Toronto and will facilitate business connections to attract investment to Jamaica. Read more

    Gov’t Provides Greater Safeguards For Brand Jamaica

    JIS: The Government is providing greater safeguards for brand Jamaica on the international marketplace through passage of amendments to the Trade Marks Act in the House of Representatives on Tuesday (June 1). Read more

    Global Jamaica Diaspora Councils Operationalised

    JIS: The Global Jamaica Diaspora Council and the Global Jamaica Diaspora Youth Council have been operationalised following the establishment of working groups and the preparation of a programme to guide their work. Read more

    INTERNATIONAL NEWS

    WTO to hold key meeting of trade ministers on July 15 over fisheries subsidies

    Business Today: The aim is to conclude the negotiations soon and after that, a text is finalised so that an agreement on fisheries can be reached in the forthcoming ministerial meet of WTO in December in Geneva. Read more

    UK begins talks to join Asia-Pacific CPTPP trade treaty

    The Guardian: The UK is beginning negotiations to join a free trade alliance with Asia-Pacific countries, a key part of its attempts to pivot trade away from Europe after Brexit. Read more

    Brexit: Irish fishing fleet stages protest over EU-UK trade deal

    BBC: People working in the Irish fishing industry are protesting at Dublin Port over the impact of the Brexit deal. Read more

    What’s behind China’s anti-dumping complaint against Australia at the World Trade Organization?

    ABC (Australia): On Thursday, China’s government suddenly announced it would raise a dispute at the World Trade Organization (WTO) against Australian anti-dumping duties on three of its exports. Read more

    Building business engagement ahead of the WTO’s 12th Ministerial Conference

    ICC: ICC joined business leaders and World Trade Organization (WTO) Ambassadors to discuss and exchange ideas on ensuring the equitable distribution of COVID-19 vaccines. Read more

    WTO head says South Africa, Senegal, Rwanda and Nigeria considered as vaccine production hubs

    Reuters: Africa is working with the European Union and other partners to help create regional vaccine manufacturing hubs in South Africa, Senegal and Rwanda, with Nigeria under consideration, World Trade Organization Director-General Ngozi Okonjo-Iweala said. Read more

    Global minimum tax faces ‘long and rocky path’ to implementation after G20 endorsement

    SCMP: A new global minimum corporate tax could take up to five years to come into effect if endorsed by the Group of 20 (G20), with countries such as India likely to be beneficiaries, tax consultants say. Read more

    Taiwan, U.S. to hold long-stalled trade talks next week

    Reuters: Taiwan and the United States will hold trade talks next week, the de facto U.S. embassy in Taipei said on Friday, resuming long-stalled discussions as Washington seeks to deepen its support for the Chinese-claimed island. Read more

    Scotch whisky tariffs suspended in UK-US trade deal

    BBC: The Scotch whisky industry has welcomed the suspension of US tariffs on its products after the UK and US resolved a long-running trade row over subsidies given to Airbus and Boeing. Read more

    U.S. trade nominee urges ‘robust monitoring’ of aircraft subsidy truce with EU

    Reuters: The United States must carry out “robust monitoring” of its five-year truce with the European Union in a 17-year battle over aircraft subsidies, Jayme White, President Joe Biden’s nominee to serve as deputy U.S. Trade Representative, said on Thursday. Read more

    U.S. trade boss Tai: We will not incentivize firms to move jobs overseas

    Reuters: The Biden administration said on Monday it was working closely with the United Autoworkers union in pressing Mexico to probe alleged labor rights violations at a General Motors Co (GM.N) plant in that country, and vowed to fight for a worker-focused trade policy. Read more

    China slams‘bandit-like’ US over trade restrictions on Xinjiang firms

    SCMP: China on Friday hit out at a “bandit-like” US government after Washington banned imports of solar panel materials from a Chinese company and placed trade restrictions on four others for alleged use of forced labour in Xinjiang. Read more

    Economy Minister says Brazil has “major problem” with Argentina in MERCOSUR negotiations

    The Rio Times: The Minister also complained that international criticism of Brazil, supposedly for environmental issues, is really motivated by protectionism. Read more

    Chemical industry calls for current MERCOSUR rules to be respected in TEC revision

    The Rio Times: The joint document expresses concerns of domestic chemical firms in Brazil, Argentina, and Uruguay, which fear competition from abroad if tariffs are reduced. Read more

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  • Caribbean Trade and Development News Digest – June 6 – 12, 2021

    Caribbean Trade and Development News Digest – June 6 – 12, 2021

    Welcome to the Caribbean Trade and Development News Digest for the week of June 6-12, 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.

    THIS WEEK’S HIGHLIGHTS

    Lots of interesting developments happened this week. Where do we start? Leaders of the Group of Seven (G7) are meeting in Cornwall, United Kingdom (UK) on June 11-13, for their first in-person G7 summit since the start of the COVID-19 pandemic. Among the decisions so far has been a declaration on pandemics and a commitment to increase climate change finance contributions.

    Ahead of the Summit, US President Joe Biden and UK Prime Minister Boris Johnson agreed on a New Atlantic Charter covering US-UK bilateral and multilateral cooperation in a number of areas, including climate change and security. Access the new document and the Joint Statement by the two leaders here.

    Rebeca Grynspan of Costa Rica has been chosen to be the new head of UNCTAD, becoming the first Central American to hold the position and the first woman appointed. She will take over from interim SG Isabelle Durant. Read more here

    According to a WTO press release, WTO members have moved closer to a text-based process to address the proposals put forward by delegations aimed at improving the international response to COVID-19 and to providing equitable access for COVID-19 vaccines and medical supplies. Read here.

    US Trade Representative (USTR) Ambassador Katherine Tai outlined the Biden Administration’s “Worker-Centred Trade Policy”. Read her full remarks doing so here.

    Post-Brexit relations between the UK and the European Union (EU) remain tense as the latter has fired a warning that it would react swiftly if the UK acted alone to change post-Brexit trading arrangements for Northern Ireland. Read the full story here.

    Articles on the Proposed Global Minimum Corporate Income Tax

    I was pleased to co-author an article with Tammi Pilgrim entitled “What might the proposed global minimum corporate income tax mean for Caribbean International Financial Centres (IFCs)?”. I thank the Barbados Business Authority (the leading business magazine in Barbados) and Barbados Today for publishing.

    I also highly recommend Bruce Zagaris’ excellent recent article for Tax Notes on this same issue here.

    REGIONAL NEWS

    Caricom concerned about G7 tax initiative

    Jamaica Observer: Caribbean Community (Caricom) Secretary General Irwin LaRocque says Caribbean countries must be “concerned about the soundings” being made by the Group of Seven (G7) nations that last week announced a landmark deal that could help countries collect more taxes from big companies and enable governments to impose levies on United States tech giants such as Amazon and Facebook. Read more

    There could be greater achievements, says CARICOM SG

    Jamaica Observer: Outgoing Caribbean Community (Caricom) Secretary General Irwin LaRocque is suggesting that “another mechanism” be utilised in getting member countries to greater strengthen their existing cooperation and collaboration for the future development of the region. Read more

    Irwin LaRocque recommends other mechanism for quicker implementation of CARICOM decisions

    Dominica Online: Outgoing Secretary-General of the Caribbean Community (CARICOM), Ambassador Irwin LaRocque is proposing that another mechanism be put in place to speed up the implementation of decisions for greater achievement among countries in the region. Read more

    Campbell to CARICOM: Build resilience at front end of all future planning

    EyeWitness News: If the global COVID-19 Pandemic has taught regional countries one lesson, it would be the need for regional planners to place greater focus on building resilience at the front end of all future planning to create sustainable, preventative programmes for potential crises. Read more

    Tobacco sector generates more than 110,800 jobs in the Dominican Republic

    Dominican Today: Of the 15 products leading the Dominican Republic’s total exports during 2021, tobacco (or cigars) ranks second, trailing only gold, according to data published by the Dominican Republic’s Export and Investment Center (ProDominicana). Read more

    The US continues as the DR’s main export destination

    Dominican Today: According to data published by the Center for Exportation and Investment of the Republic Dominicana, of the 15 products that lead the total exports of the Dominican Republic during 2021, tobacco (or cigars) occupies second place, only remaining below gold (ProDominicana). Read more

    Cuba suspending cash bank deposits in dollars, citing U.S. sanctions

    Reuters: Cuba said on Thursday it would temporarily stop accepting cash bank deposits in dollars, blaming tighter U.S. sanctions that are restricting its ability to use greenbacks abroad, although it will still accept transfers. Read more

    Cuba: locally-made disposable face masks to be sold

    OnCuba: The distribution of Cuban masks will begin with health workers, while their commercialization will be carried out in establishments in freely convertible currency and in others in Cuban pesos (CUP) “at very affordable prices.” Read more

    Dominica Signs Agreement To Begin Construction Of International Airport

    News 784: A monumental signing for the Commonwealth of Dominica’s international airport took place at Windsor Park Stadium on Wednesday. The agreement saw the Government of Dominicaand Montreal Management Consultants (MMCE) move one step closer to the development and construction of the airport. Read more

    GOB Optimistic that Belize will see an Increase in Exports to Guatemala

    LoveFM: Following the formalities between the leaders and delegations for Belize and Guatemala, the official discussions began with one of the main topics being the idea of a partial scope agreement. Read more

    Antigua calls for tax cuts in airline ticket prices in region

    Jamaica Observer: Antigua and Barbuda Prime Minister Gaston Browne says the novel coronavirus pandemic has provided Caribbean governments with the opportunity to implement tax cuts for airline tickets across the region. Read more

    52nd meeting of COTED: emerging issues on regional affairs

    Jamaica Gleaner: The Council for Trade and Economic Development (COTED) of the Caribbean Community (CARICOM) held its 52nd session virtually on June 1-2. It was chaired by Jamaica’s Minister of Foreign Affairs and Foreign Trade, Senator Kamina Johnson Smith. Read more

    Vietnam, Barbados examine ways to step up bilateral cooperation

    VoV: Vietnamese Ambassador to Venezuela, and Barbados Le Viet Duyen on June 3 had an online meeting with Permanent Secretary of the Ministry of Foreign Affairs and Foreign Trade of Barbados Simone Rudder to discuss bilateral cooperative ties between the two countries. Read more

    INTERNATIONAL NEWS

    No movement: UK, EU show little sign of defusing post-Brexit row

    CNBC: Britain and the European Union showed little sign of defusing a post-Brexit trade dispute on Saturday, with both sides repeating their opposing positions even after U.S. President Joe Biden encouraged them to find a compromise. Read more

    ‘Whatever it takes’, UK’s Johnson warns EU over post-Brexit trade

    Reuters: Britain will do “whatever it takes” to protect its territorial integrity in a trade dispute with the European Union, Prime Minister Boris Johnson said on Saturday, threatening emergency measures if no solution was found. Read more

    Figures show Brexit continues to depress trade with EU

    Independent: Brexit is continuing to depress UK trade with the EU, with total imports and exports of goods in the first four months of this year down by a quarter compared to 2019, according to new official figures. Read more

    Ambassador Tai Outlined Biden’s Goal of Worker-Focused Trade Policy

    New York Times: The U.S. trade representative called for stronger worker protections in trade policy as the administration looks to curb the negative impact of globalization. Read more

    US, EU, and the unmaking of Donald Trump’s trade war

    DW: Brussels and Washington are expected to put an end to much of the trade tensions fueled by the former US president. DW takes a look at the various trade crises that have strained relations between the two allies. Read more

    EU in talks with US, UK on mutual recognition of COVID-19 travel certificates

    Euractiv: The European Commission is discussing with the United States and the United Kingdom the recognition of the COVID-19 travel certificate that will come into force in July in the EU, the European Commissioner for Justice has announced. Read more

    EU ministers approve strategy on climate change adaptation

    Euractiv: European Union environment ministers on Thursday (10 June) approved the EU’s new climate change adaptation strategy, which sets out a vision up to 2050 to make Europe resilient and “fully adapted to its inevitable impacts”. Read more

    UK-Africa Forum on Trade, Policy and Reform to examine the future of trade and avenues for policy reform

    Africa News: Invest Africa (www.InvestAfrica.com), a Pan-African business and investment platform, aims to build constructive dialogue between policy makers and business leaders from the UK and Africa during the Forum. James Duddridge MP, Minister for Africa, Emma Wade-Smith OBE, H.M. Trade Commissioner for Africa, and His Excellency Ken Ofori-Atta, Minister of Finance of the Republic of Ghana will feature in the programme. Read more

    WTO council offers hope for TRIPS vaccine proposal

    Devex: It has been more than eight months since South Africa and India’s delegations to the World Trade Organization tabled a proposal to waive intellectual property protections for COVID-19 vaccines and therapeutics. Yesterday, delegates to the global body’s Council for Trade-Related Intellectual Property Rights, or TRIPS, finally agreed to move to the next stage of text-based negotiations amid growing international support for some version of the waiver. Read more

    Argentina still resists drive to make Mercosur more flexible

    Mercopress: A top official from the Argentine Government spoke yet again against a bid from Brazil and Uruguay to make Mercosur more flexible and allow members to broker one-on-one deals with other countries or blocs. Read more

    Push to change Mercosur rules opens rift among members

    BNAmericas: The Mercosur trade bloc is confronting a rift among key members Argentina, Brazil, Paraguay and Uruguay over a potential rule change. Read more

    STRAIGHT FROM THE WTO

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  • G7 finance ministers commit to 15% global minimum corporate income tax rate

    G7 finance ministers commit to 15% global minimum corporate income tax rate

    Alicia Nicholls

    Finance ministers and Central Bank governors of the Group of 7 (G7) have committed to a global minimum tax of at least 15% on a country-by country basis. They also agreed on “the importance of progressing agreement in parallel on both Pillars and look forward to reaching an agreement at the July meeting of G20 Finance Ministers and Central Bank Governors”.

    This was one of the decisions outlined in their communique released on June 5. This development, hailed by some as ‘historic’, will form the basis of what rich countries are hoping to be a multilateral deal. The aim of a global minimum tax rate is to stop corporate tax competition among countries and discourage multinationals from shifting profits to more tax competitive jurisdictions. It should be noted that the proposed global minimum corporate tax rate of 15% falls below the average statutory income tax rate among OECD countries of 21%.

    The Finance Ministers and Central Bank Governors of the G7, met virtually on 28 May 2021. This was followed by a further meeting of Finance Ministers and Heads of major global financial institutions, the International Monetary Fund (IMF), World Bank Group, Organisation for Economic Cooperation and Development (OECD), Eurogroup, Financial Stability Board (FSB) on 4-5 June 2021.

    Read the full communique here.