Caribbean Trade Law and Development

Category: Trade

  • COVID-19’s Impact on Micro, Small and Medium-Sized Enterprises (MSMEs)

    COVID-19’s Impact on Micro, Small and Medium-Sized Enterprises (MSMEs)

    Deah James, B.Sc., M.Sc.

    Deah James, Guest Contributor

    The World Health Organization (WHO) classified the COVID-19 outbreak as a global pandemic in March 2020. To date, there have been over 8 million persons infected and over 400, 000 deaths worldwide as a result of the virus. Despite it being a health crisis, COVID-19 has not only taken a toll on the persons it has infected but on businesses and economies on a whole.

    In St. Vincent and the Grenadines, the effects of the virus have been no different. Most of our businesses can be categorized as micro, small and medium enterprises. And it is these businesses that are said to have been hit the hardest by the fallout from the pandemic.

    Even though they can be agile in response to the changing world, MSMEs are also susceptible to shocks such as COVID-19. This is because these businesses are vulnerable by nature. Access to finance is a primary obstacle.   

    According to the World Trade Organization (WTO), many of these enterprises depend on international trade. This is because they either export their products through direct or indirect channels or because they import the inputs needed to manufacturer their products to sell on the local markets.

    These types of businesses also account for a large portion of the employment in a country and are a major employer of women and youth.

    With the disruptions in the supply chain caused by unprecedented lockdown measures enacted to contain the spread of COVID-19, MSMEs are finding it increasingly difficult to find new suppliers, deal with price increases that have occurred and also the massive drop in demand for products in most sectors.

    To help business owners, governments have created stimulus packages with the focus on assisting with the effects of COVID 19. One such initiative by the Government of St. Vincent and the Grenadines is the expansion of the existing Promoting Youth Micro-enterprises (PRYME) programme. In addition support for business include loan forbearance, utility bill moratorium, VAT and Tax waivers and extension on filing income tax returns and for payment of motor vehicle licenses and liquor licenses.

    To show the value placed on Micro, Small and Medium Enterprises, the United Nations in April of 2017 adopted resolution 71/279 which designated June 27 as Micro, Small and Medium- sized Enterprises Day. This was done to raise public awareness of their contribution to sustainable development and global economy.

    For this year’s celebrations, the International Trade Centre (ITC) will host a WebTV programme on Wednesday June 24th entitled COVID-19: The great lockdown and its impact on Small business.

    Deah James, B.Sc., M.Sc., is an international trade and development professional with keen interest and experience in the areas of trade facilitation, sustainable development, regional integration, aid for trade and financing for development.    

    Photo credit: Pixabay

  • Webinar: Recovering and Transforming our Economies – New Legal, Regulatory and Trading Imperatives

    Webinar: Recovering and Transforming our Economies – New Legal, Regulatory and Trading Imperatives

    Today I am pleased to be moderating Webinar III in the G.O. Lynch Consultancy Inc and Associates series entitled “Post-COVID 19 Recovery & Rebuilding in the Face of Natural and Manmade Disasters“.

    Join me and the all-star panel today, June 17th at 11:00 am (EST) for our panel entitled “Recovering and Transforming our Economies – New Legal, Regulatory and Trading Imperatives” where we explore the legal, regulatory and trading imperatives as we seek to rebuild Caribbean and other small island economies post-COVID and in the face of natural and manmade disasters.

    Registration

    Register at the link here:

  • Caribbean Trade and Development News Digest – June 7-13, 2020

    Caribbean Trade and Development News Digest – June 7-13, 2020

    Welcome to the Caribbean Trade & Development News Digest for the week of June 7-13, 2020! And a Happy Father’s Day to all readers who are fathers, fathers-to-be or father figures! We are happy to bring you the major trade and development headlines and analysis from across the Caribbean Region and the world from the past week.

    THIS WEEK’S HIGHLIGHTS

    The World Trade Organization’s beleaguered Appellate Body (AB) delivered its final reports in the cases brought by Honduras and the Dominican Republic in “Australia — Certain Measures Concerning Trademarks, Geographical Indications and Other Plain Packaging Requirements Applicable to Tobacco Products and Packaging” (DS435 and DS441). Read the AB summary and report here.

    In the meantime, the race for the next WTO Director General is heating up as at least three WTO Members (Mexico, Egypt, Nigeria) have already nominated candidates to be a successor of incumbent Mr. Roberto Acevedo who announced last month that he would step down a year before his term expires.

    New UNCTAD data published on 11 June show that merchandise trade fell by 5% in the first quarter of the year and point to a 27% drop for the second quarter and a 20% annual decline for 2020. Access the report here.

    This week’s article by guest contributor Sandiford Edwards looks at building climate resilience in the Caribbean agricultural sector. Have a read here.

    On a final editorial note, this publication announces its solidarity with the movements currently taking place across the US and the world for racial equality and justice #blacklivesmatter.

    REGIONAL NEWS

    CCJ Upholds COTED Decision on Cement Tariff Increase

    CCJ: In a judgment released Wednesday, the Caribbean Court of Justice (CCJ) upheld the decision of the Council for Trade and Economic Development (COTED) to raise the tariff on “other hydraulic cement” imported into Barbados. Read more

    Belize signs revised Georgetown agreement for Organization of African, Caribbean and Pacific States

    Breaking Belize News: Belize officially signed the revised Georgetown Agreement today June 9, 2020 in Brussels, Belgium. Read more

    “Major decline in imports, slight decline in exports,” says Statistical Institute of Belize

    Breaking Belize News: Веlіzе’ѕ ехреndіturе оn іmроrtѕ drорреd bу оvеr 30 реrсеnt whіlе rеvеnuеѕ frоm ехроrtѕ wеrе dоwn bу 2.7 реrсеnt fоr thе mоnth оf Арrіl, ассоrdіng tо thе Ѕtаtіѕtісаl Іnѕtіtutе оf Веlіzе (ЅІВ). Read more

    No hindrance to commercial exports — CLA

    Jamaica Observer: The Cannabis Licensing Authority (CLA) says licence holders are not hindered in their ability to export products from Jamaica due to the non-passage of import/export legislation. Read more

    MICAF Celebrates Increase in Exports

    JIS: A number of Jamaican companies are experiencing a rise in the exportation of their products amidst the COVID-19 pandemic. The Ministry of Industry, Commerce, Agriculture and Fisheries (MICAF) congratulates manufacturers and exporters who have seized the opportunities that have arisen. Read more

    We are ready for regional exports — JMEA president

    Jamaica Observer: The Jamaica Manufacturers and Exporters Association (JMEA) says based on the growing need for more exports across the Caribbean, the productive sector stands ready to supply outside markets and replace imports where necessary. Read more

    UK aid to boost Caribbean trade

    Jamaica Observer: A plan of action to support trade in several Caribbean states was launched last week. Read more

    Economic Diplomacy Programme launched

    Jamaica Observer: JAMAICA Promotions Corporation (Jampro) and the Ministry of Foreign Affairs and Foreign Trade (MFAFT) have officially launched a new Economic Diplomacy Programme (EDP) aimed at aggressively promoting Jamaica as the ideal country for investment and trade opportunities. Read more

    INTERNATIONAL NEWS

    NZ signs first digital trade agreement

    Stuff.co.nz: New Zealand has signed the first trade agreement to focus on issues solely relating to the digital economy. The Digital Economy Partnership Agreement (DEPA) with Chile and Singapore facilitates trade by encouraging paperless trading, e-invoicing and payments, and streamlined customs procedures for parcels. Read more

    Singapore, Chile, NZ ink deal to boost digital economy cooperation

    The Straits Times: Singapore, Chile and New Zealand have signed an agreement that will bolster cooperation on issues in the digital economy. Read more

    Trade Minister ‘very disappointed’ with EU’s first offer on free trade deal

    Radio New Zealand: The first formal offer on the table from the European Union on a free trade agreement is a far cry from what New Zealand wants, but talks will continue with both parties appearing willing to strike a deal. Read more

    China Trade Surplus Surges to Record as Medical Exports Jump

    Bloomberg: China’s trade surplus surged to a record in May as exports fell less than expected, helped by an increase in medical-related sales, and imports slumped along with commodity prices. Read more

    China exports protective materials to 200 countries, regions: white paper

    XinhuaNet: China exported protective materials to 200 countries and regions from March 1 to May 31 to help them fight against COVID-19, said a white paper released Sunday by China’s State Council Information Office. Read more

    UK says intensified timetable for free trade talks agreed with EU

    Reuters: Britain said it had agreed an intensified timetable for free trade negotiations with the European Union in July as both sides try to strike an agreement by the end of the year. Read more

    UK Statement to the WTO Council for Trade in Goods – Item 9

    Gov.uk: The UK’s Ambassador to the WTO and UN in Geneva, Julian Braithwaite, delivered this statement at a meeting of the WTO’s Council for Trade in Goods on 10 June 2020. Read more

    Factbox: Who’s bidding to be next World Trade Organization chief?

    Reuters: The World Trade Organization (WTO) began the process on Monday of selecting a new director-general to replace Brazil’s Roberto Azevedo, who is stepping down a year early at the end of August. Read more

    WTO accepts nomination of Okonjo-Iweala as DG despite opposition from Egypt

    Nairametrics: WTO has acknowledged the nomination of Ngozi Okonjo Iweala, as one of the candidates for the position of the DG of the organization. Read more

    Hogan’s Run: Could Ireland’s Commissioner get the top WTO job?

    RTE: If Phil Hogan does confirm his candidacy to be head of the World Trade Organisation it will have ramifications for an incoming Irish government, which will have to send a new commissioner to Brussels, and for the new European Commission, which only formally took office on 1 December. Read more

    Brexit: Checks on EU imports to be phased-in amid coronavirus crisis

    BBC: Checks on EU goods coming into the UK will be phased in next year to give firms “time to adjust”, as ministers formally ruled out extending the Brexit transition period beyond 31 December. Read more

    Majority of Britons back Brexit extension to help beat coronavirus

    Independent: A no-deal Brexit later this year during winter and amid coronavirus would be ‘a vicious, and avoidable, combination of risks’ says Health Foundation. Read more

    Wamkele Mene: Africa is fully committed to AfCFTA despite delay to start date

    African Business Magazine: The start of trading for the Africa Continental Free Trade Area (AfCFTA) originally due to commence on 1 July 2020 has been delayed due to the Covid-19 pandemic, but in this exclusive interview with Omar Ben Yedder and Stephen Williams, its newly elected secretary-general, Wamkele Mene, stresses that the continent is still fully committed to the AfCFTA, a critical component of Africa’s recovery strategy. Read more

    How will COVID-19 impact Africa’s trade and market opportunities?

    World Bank: The COVID-19 pandemic is expected to hit African economies extremely hard. According to the World Bank biannual Africa’s Pulse report, as a result of the pandemic, economic growth in sub-Saharan Africa will decline from 2.4% in 2019 to between -2.1% and -5.1% in 2020, depending on the success of measures taken to mitigate the pandemic’s effects. This means that the region will experience its first recession in 25 years. Read more

    Africa free trade zone could launch on Jan 1, says official

    Reuters: The African Continental Free Trade Area (AfCFTA) could begin operating on January 1 next year, after the COVID-19 pandemic made its original launch date untenable, the official charged with overseeing the bloc’s establishment said on Thursday. Read more

    Thailand to consider membership of trans-Pacific trade partnership

    Reuters: Thailand has set up a committee to consider by mid-July whether the country should join a trans-Pacific free-trade agreement, as opposition parties and some business groups say membership could harm the farm and healthcare sectors. Read more

    India not ready to take up RCEP’s ‘flexible’ offer

    Hindu Business Line: India is not ready to respond any time soon to the offer made by the 15-member Regional Comprehensive Economic Partnership (RCEP) to rejoin the free trade negotiations on much easier terms than before, especially as its industry and farmers are struggling to cope with the Covid-19 crisis, according to officials. Read more

    UK to start post-Brexit trade talks with Japan

    BBC: The UK and Japan are set to begin talks on Tuesday aimed at reaching agreement on a post-Brexit trade deal. Read more

    UK seeks swift Japan trade deal and TPP membership

    Nikkei Asian Review: The U.K. is looking to accelerate trade deals with countries and blocs across Asia, as the country’s transition period for departure from the European Union is set to expire at the end of the year. Read more

    Vietnam ratifies free trade deal with EU

    Euractiv: Vietnam ratified a free trade agreement with the European Union on Monday (8 June) that will cut or eliminate 99% of tariffs on goods traded between the Southeast Asian country and the bloc, and provide Vietnam with a much-needed post pandemic boost. Read more

    Commonwealth leaders reject automatic second term for Baroness Scotland

    BBC: Commonwealth governments have rejected a fresh attempt to give the organisation’s secretary-general Baroness Scotland an automatic second term of office. Read more

    STRAIGHT FROM THE WTO

    NEW ON THE CTLD BLOG

    The Caribbean Trade & Development Digest is a weekly trade news digest produced and published by the Caribbean Trade Law & Development Blog. Liked this issue? To read past issues, please visit here. To receive these mailings directly to your inbox, please subscribe to our Blog below:

  • Agriculture Labour: Repositioning Regional Agriculture

    Agriculture Labour: Repositioning Regional Agriculture

    Sandiford Edwards, MA, MBA, ACCA

    Sandiford Edwards, MA, MBA, ACCA – Guest Contributor

    Introduction

    In the context of Small Island Developing States (SIDS) such as Caribbean countries, historically, the agriculture sector provided the single most important platform for employment, income generation and food security, and is presently still capable of driving poverty reduction especially in rural areas; through increased productivity, value addition and links to other sectors inclusive of tourism.[1]

    ‘Agriculture Employment’ or ‘Agriculture Labour’ in its traditional view has been defined as the ‘involvement of any person in connection with cultivating the soil, or with raising, harvesting any agricultural or horticultural commodity, management of livestock, bees, poultry’[2] etc. In today’s world, cognisant of advancement in cultivation and harvesting technologies, processing innovations and the proliferation of the Internet of Things, Artificial Intelligence and Big Data and the consequent impact on the agriculture sector, it is prudent to recognise that a modern and more accurate definition of agriculture labour should include professional careers along the entire agri-food value chain, covering disciplines ranging from scientist, greenhouse growing specialist, agronomist, inter alia.

    Current Agriculture Challenges

    CARICOM’s agriculture is at a critical juncture to meet the food demands and nutritional requirements of the Region, influenced by the countless incidences of agricultural output shocks emanating from climate change impacts, natural disasters, prevalence of pest and diseases, increasing food loss and food waste and increased competition for arable lands by other sectors including housing. Food systems reorientation including the supply of agriculture labour is therefore mandatory in repositioning CARICOMs agriculture in its quest to achieve improved food security.

     ‘In 2000, the CARICOM Region had an agri-food trade surplus of US $20 million or 2%. Over the last eighteen years, the regional agri-food landscape has undergone significant transformation having agri-food imports of US $3.7 billion (2018) and an annual agri-food trade deficit of just above US $2.2 billion[3].

    Between the periods 2016 to 2018, CARICOM’s total agriculture export growth in value was significantly immaterial when compared to its imports of over US$200 million for the same period (figure 1). CARICOM’s protracted trade deficit places pressure on fiscal positions of Member States and other macro-economic indicators including the ability of the Region to address its high level of unemployment especially among the youthful population and the growing health and economic cost visited to the region by the coronavirus pandemic (COVID-19).

    Figure 1 – Total Agriculture Trade

    Source: Author’s compilation

    In this regard, the improved recognition of agriculture labour within the Caribbean Community, can directly strengthen the Region’s food security and nutritional adequacy while it is also aptly positioned to: catalyse greater intra-regional travel; reduce community wide unemployment; and improve the cultural and overall regional integration process. Early harvest evidence of the regional agriculture integration process is noticeable with the agreement struck between Suriname and Barbados for the Black Belly Sheep project[4].

    International Market for Caribbean Agricultural Workers

    Globally, there appears to be a snowballing call for agriculture workers with heightened demand in the United States, Canada, United Kingdom and other parts of Europe. Evidence of the demand for agriculture workers was confirmed through an article where the suggestion was made for British nationals who have been furloughed to get involved in harvesting crops[5].

    The integration of the Caribbean into the world economy was noted to have commenced during the colonial era when the production of agricultural commodities required the exportation of labour from the metropole (mainly English working class) to the colony, to work on plantations to produce predominantly cash crops and other raw materials for export. The sugar revolution which ensued, resulted in the mass importation of African slaves to work on plantations. Following the abolition of slavery and prevailing foreign domination of the ownership of capital and other factors of production except labour, created an excess supply of semi and unskilled labour, which, if left un-utilised could have created instability and major upheavals in the colonies.

    The Region therefore began exporting labour en masse, with the exodus of migrant workers heading to the Panama Canal, the gold fields of Venezuela, banana plantations in Central America and the H-2 Programme of the United States.  

    More recently, the Commonwealth Caribbean Agricultural Workers Program (CCAWP) in Canada, that hires approximately 25,000 foreign agriculture labourer spread over 200 farms as part of a US$100 billion industry[6], has become the temporary worker programme of choice for Caribbean Agriculture Workers. The CCAWP has been placed centre stage in the Region, receiving greater prominence as global supply chains faced disruption, and the stability of food supplies threatened by ‘stay at home’ orders imposed by countries to address the threat posed by COVID-19 became acute.

    Whilst Mexico and Central America dominate the US H-2A Program[7], a number of CARICOM Member States from Jamaica (the first country to engage in the migration programme in 1966) in the north to Trinidad and Tobago in the south are participants in the CCAWP. These economies benefit from salaries repatriated by the emigrant workers.

    Revised Treaty of Chaguaramas and Free Movement of Labour

    Article 45 – Movement of Community Nationals provides the basis in Treaty where ‘Member States commit themselves to the goal of free movement of their nationals within the Community’.

    Furthermore, in Article 46, Member States have agreed, and undertake as a first step towards achieving the goal set out in Article 45, to accord to the following categories of Community nationals the right to seek employment in their jurisdictions: university graduates, media workers, sportspersons, artistes and musicians.

    Having regard to the above, and the huge vulnerability to Regional food security and nutritional adequacy, high levels of unemployment, inter alia, on the occasion of the 18th Special Meeting of the Conference of Heads of Government (HOG) of CARICOM[8], HOG have agreed to include ‘Agricultural Workers among the categories of skilled nationals who are entitled to move freely and seek employment within the Community’.

    This declaration by Heads of Government provided the legal basis for the creation of the necessary infrastructure, administrative and enabling environment for the Region to benefit from the vast pool of skilled, semi-skilled and unskilled labour available for the competitive development of its agri-food sector.

    At present, it is not yet clear whether or not the free movement regime for Agriculture Labour has become operational and if in the affirmative, the number of people who have already taken advantage of the Treaty’s provision.

    The discussion on creating a regional bread basket and having persons who are in the industry travel to provide the majority of the farm workers holds promise. The CARICOM Private Sector Organisation (CPSO), in a presentation to HOG in February 2020, articulated the benefits of the Region in focussing on the development of regional ‘agri-food corridors’ (RAC) within the CSME, and the ability of RACs to assist in reducing transactions, transport and logistics costs. The presentation further suggested that the RACs can support overriding non-tariff barriers (NTB), and can also be used to develop ‘clusters’ or investment poles that create the business to business and business to customer linkages, which is the oxygen for sustained growth and development of agri-food ventures in the CSME, ultimately yielding greater employment.

    A key feature of the RAC is premised on high volume production of selective agri-food products (corn, soy, cassava, livestock) to benefit from economies of scale. Such a philosophy will naturally lend itself to countries with larger land masses such as Belize, Guyana, Haiti, Jamaica and Suriname. CARICOM nationals from other Member States can then ultimately travel to these countries as an initial pilot to operationalise the Free Movement Regime for Agricultural workers. 

    Conclusion

    There is no denying that the current image of regional agriculture is one that is cloaked with the stigma of being pro-poor and dominated by the uneducated or citizens who are generally on the margins of society. Drawing from the parallels of the CCWAP, repositioning regional agriculture can provide the citizens of the region with improved consistency of income that can be similarly repatriated to their home states to meet the needs of their families.

    Simultaneously, other direct benefits that can be accrued can range from the increase in intra-regional travel, greater consumption of regionally produced food, increased cultural exchanges and deepening of the CARICOM spirit of ‘oneness’.

    To this end, regional leaders, the private sector, development partners, and the wider NGO community should collectively agree on a roadmap to aggressively rebrand the image of agriculture to include the modern availability of high-tech jobs to encourage greater youth involvement. Only with additional sector involvement and investment will the region be able to adopt and adapt the plethora of innovative agriculture technology that supports increased productively and profitability, necessary elements for the creation of a virtuous cycle.

    Sandiford Edwards, MA, MBA, ACCA is a Development Finance Specialist with experience in many countries in the Region.

    [1] https://www.cgap.org/blog/youth-agriculture-new-generation-leverages-technology

    [2] Hemant Singh, https://www.jagranjosh.com/general-knowledge/overview-of-agricultural-labour-1446805160-1

    [3] Patrick et al, 2020, Reducing CARICOM’s Agri-Food Imports: Opportunities for CPSO Participation, Econotech Limited.

    [4] https://www.barbadosadvocate.com/news/b’dos-partner-suriname-black-belly-sheep-operation

    [5] https://www.msn.com/en-gb/news/uknews/coronavirus-furlough-workers-urged-to-lend-a-hand-with-uk-harvest/ar-BB14jxCB?ocid=spartanntp

    [6] Budworth et al, 2017 Report on the Seasonal Agriculture Worker Program: Inter-American Institute for Cooperation on Agriculture Delegation in Canada.

    [7] https://www.ers.usda.gov/topics/farm-economy/farm-labor/

    [8] https://today.caricom.org/2018/12/04/st-anns-declaration-on-csme/