Caribbean Trade Law and Development

Category: Trade

  • Caribbean Trade & Development News Digest – November 24 – 30, 2019

    Caribbean Trade & Development News Digest – November 24 – 30, 2019

    Welcome to the Caribbean Trade & Development News Digest for the week of November 24-30, 2019! 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

    At the WTO’s Dispute Settlement Body meeting on 22 November, some 117 WTO members have again called for a launch of the process for filling vacancies on the Appellate Body, which is currently at three members and is set to lose 2 other members when their terms end on December 10. If this happens, the WTO AB will no longer have a quorum to hear appeals. Read more here.

    On 27 November the WTO held a conference to mark the 30th anniversary of the Trade Policy Review Mechanism (TPRM). Read more here. The WTO also held its fourth Natural Disasters and Trade symposium on 29 November. Read more here.

    And lastly, it would be remiss of me if I did not say Happy Independence to my country Barbados which celebrated its 53rd year of independence on November 30! Barbados, as you may know, will be co-hosting the UNCTAD XV quadrennial with the United Arab Emirates in October, 2020.

    REGIONAL NEWS

    Government launches Belize’s 1st National Investment Policy and Strategy

    Breaking Belize News: Тhе Gоvеrnmеnt оf Веlіzе (GОВ) thrоugh thе Міnіѕtrу rеѕроnѕіblе fоr Іnvеѕtmеnt, Тrаdе аnd Соmmеrсе, ВЕLТRАІDЕ аnd thе САRІСОМ Dеvеlорmеnt Fund (СDF) wіll lаunсh thе Веlіzе Nаtіоnаl Іnvеѕtmеnt Роlісу аnd Ѕtrаtеgу (NІРЅ) оn Моndау, Dесеmbеr 2, 2019, аt 10 аm аt thе Веѕt Wеѕtеrn Віltmоrе Рlаzа іn Веlіzе Сіtу. Read more

    Why the WTO Appellate Body Crisis Matters to the Caribbean

    CARICOM Today: The Appellate Body (AB) of the World Trade Organization (WTO) – the final court charged with hearing appeals on points of law at the WTO – faces an existential crisis. On 10 December 2019, the terms of two of its remaining three members – the quorum needed to adjudicate an appeal – will expire. Read more

    Guyana commits to direct flights from C’bean to Africa

    News Room: The Governments of Guyana and Ghana Friday morning signed an Air Services Agreement, paving the way for direct flights between the two countries. Read more

    Barbados ‘ready for Brexit EPA’, says Husbands

    Barbados Today: Barbados is ready to take full advantage of an Economic Partnership Agreement (EPA) with post-Brexit Britain, Minister of Foreign Trade Sandra Husbands has declared. Read more

    Barbados, Ghana explore business opportunities

    Joy Online: Trade and investment relations between Ghana and Barbados has received a further boost with the signing of a partnership agreement between an indigenous Ghanaian firm and its counterpart from Barbados. Read more

    Ghana: Govt Completes Recruitment of 120 Nurses for Barbados

    AllAfrica: The Ministry of Health (MOH) has completed the recruitment processes to send the first batch of 120 qualified nurses to work in the Caribbean nation of Barbados. Read more

    Bridgetown and Tema sign agreement establishing sister-port

    Joy Online: Ghana and Barbados on Friday, November 15, 2019, signed an agreement establishing a sister-port relationship between the two cities to facilitate the expansion of trade between the two countries, especially trade transiting through Barbados from Ghana and onward to other Caribbean and Latin America destination ports. Read more

    Ghana, Barbados sign agreement to boost e-commerce

    Ghanaweb: In its quest to facilitate the expansion of trade and investment between Ghana and Barbados, an indigenous Ghanaian firm and its counterpart from Barbados have signed a partnership agreement to boost e-commerce within the two countries. Read more

    US Envoy Says Jamaica Ready For Greater Investment Flow From The North; Hails Improvements In Local Economy

    Jamaica Gleaner: The United States envoy in Jamaica says the prospects for greater investments by his country on the island have never been better, pointing to major improvements in the local economy and efforts by the government to make it easier to do business. Read more

    Jamaica Re-Elected To Powerful Category C Of IMO Council

    Jamaica Gleaner: Jamaica was re-elected to Category C of the Council of the International Maritime Organization (IMO), confirming the island’s position at the centre of international maritime legislature. Read more

    Exclusive: Caribbean officials linked to diplomatic passport sale

    Al Jazeera: Politicians in the Caribbean are said to be involved in a corrupt trade of diplomatic posts in exchange for money, an Al Jazeera investigation has revealed. Read more

    COTED decision a lifeline for CARICOM sugar

    Jamaica Observer: Directors of the Sugar Association of the Caribbean (SAC) are due to meet in early December to reflect on the 49th Meeting of The Council for Trade and Economic Development (COTED) outcomes, which agreed to the incremental enforcement of tariffs on imported white sugar as and when the region produces it. Read more

    No 40% CARICOM tariff on white sugar until regional producers can supply – Dookhoo

    Stabroek: The Council for Trade and Eco-nomic Development (COTED) of CARICOM will not erect a 40% common external tariff (CET) against extra-regional white sugar until regional producers are able to supply the quantity and quality needed by regional manufacturers for their food and beverages operations. Read more

    INTERNATIONAL NEWS

    Top Japan negotiator says it is not considering signing RCEP trade pact without India

    Strait Times: Japan is not considering signing a regional trade pact without India at this juncture, the top Japanese negotiator said on Friday (Nov 29), ahead of a series of diplomatic exchanges in the coming weeks that include a visit to Delhi by Prime Minister Shinzo Abe. Read more

    China small manufacturers’ rising exports to Africa help offset plunging sales to US amid trade war

    South China Morning Post: Growing optimism is spreading among some small Chinese manufacturers in sectors ranging from car parts to textiles, as a spike in exports to countries involved in the Belt and Road Initiative is starting to offset a portion of lost demand from the United States due to the trade war. Read more

    General election 2019: Second Brexit referendum will be needed unless a majority is won, report says

    iNews: The Conservatives have said a second referendum is off the table, but academics believe it’s their only option unless they win a majority. Read more

    With the WTO Appellate Body Becoming Dysfunctional on December 11, What Happens to Pending Appeals and Other Open Issues?

    WITA: There was another WTO Dispute Settlement Body (“DSB”) meeting on November 22, 2019. In addition to the normal agenda item of receiving reports and comments by other members on the status of implementation of recommendations on disputes where reports had previously been adopted by the DSB, there were a number of other agenda items, one of which was not addressed. Read more

    Japan indicates efforts on to address India’s concerns over RCEP

    Economic Times: Japan on Sunday gave clear indications that efforts were on to make India join the ambitious Regional Comprehensive Economic Partnership (RCEP), saying all member countries of the grouping were committed to address New Delhi’s concerns. Read more

    Rwanda’s port – creating a hub for Intra-African trade

    Euronews: One of the largest dry ports (30 hectares) in-land in Africa is working towards a different kind of management system to create a faster and more efficient process for its customers. It means landlocked countries will be free from market-barriers. Read more

    ITFC seeks to boost Arab-Africa trade

    GTR: The International Islamic Trade Finance Corporation (ITFC) has committed to a credit facility agreement worth US$100mn with the African Export-Import Bank (Afreximbank). Read more

    New move to boost trade between Ireland and Africa

    Irish Times: Plans are afoot to increase the value of two-way trade between the Republic of Ireland and Africa to at least €5 billion by 2025. Read more

    AfCFTA: Boosting intra-regional trade in goods and services

    Business Report: According to new research from Baker McKenzie and Oxford Economics – AfCFTA’s $3 trillion (R44.18trln) Opportunity: Weighing Existing Barriers against Potential Economic Gains – many opportunities for increasing intraregional trade exist in Africa, in goods and services. Read more

    Morocco, Turkey Launch Negotiations to Save Free Trade Agreement

    Morocco World News: Turkey and Morocco appear to have launched negotiations to maintain their in-question Free Trade Agreement with the aim of “rebalancing” trade terms and satisfying both parties. Read more

    South Korea’s export decline suggests no easing up on world trade slump yet

    Business Times: South Korea’s exports, a closely watched bellwether for world trade, fell more than expected in November, dealing a blow to nascent optimism that a prolonged slump in global demand may be bottoming out. Read more

    Japanese and South Korean trade officials to hold export control talks in December

    The Japan Times: Senior trade officials from Japan and South Korea will meet next month to discuss Tokyo’s tightened controls on tech-related exports to its neighbor, trade minister Hiroshi Kajiyama said Friday. Read more

    USMCA: Ratification is getting there but ‘difficult issues’ remain

    Financial Post: The push to ratify a new North American trade pact is “getting there” Mexico’s top negotiator says, though some “difficult issues” remain as U.S. Democrats continue to insist on stronger labour enforcement. Read more

    U.S., Canada, Mexico Meet to Push for Final Agreement on USMCA

    Bloomberg: The White House pushed Wednesday to wrap final negotiations with Democrats on President Donald Trump’s top legislative priority, the U.S.-Mexico-Canada Agreement, in meetings with top Mexican and Canadian officials. Read more

    Lower trade barriers helped faster economic and wage growth in Latin America, IDB report

    Mercopress: Latin America and Caribbean region saw faster economic and wage growth thanks to a lowering of trade barriers, a new report by the Inter-American Development Bank shows. The study also provides policy recommendations to ensure the region is better positioned to take advantage of trade liberalization and make its benefits more tangible to citizens. Read more

    Making EU trade deals work for citizens

    EUObserver: As global trade disputes increase, protectionism is on the rise, and climate protection becomes a mainstream political objective, trade is becoming an increasingly political topic. 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:

  • Barbados Lower House passes UK-CARIFORUM Bill

    Barbados Lower House passes UK-CARIFORUM Bill

    Alicia Nicholls

    On Tuesday, November 26th, the Barbados House of Assembly at its 57th sitting debated and passed the Economic Partnership Agreement Bill, 2019. Barbados signed the UK-CARIFORUM EPA in March 2019, and this week’s debate was part of the domestic ratification process. The bill is now before the Senate – the Upper Chamber of the country’s bicameral legislature. Once the bill is passed by the Senate and assented to by the Governor-General, it will have the force of law domestically in Barbados.

    The UK-CARIFORUM EPA was the result of technical discussions entered into between the UK Government and CARIFORUM (CARICOM plus the Dominican Republic) countries to roll over the provisions of the EU-CARIFORUM EPA. This was to ensure that CARIFORUM goods and services would continue to benefit from preferential access to the UK market once the UK formally leaves the EU and the EU-CARIFORUM EPA no longer applies to UK-CARIFORUM trade. To date, the UK has completed 19 similar ‘continuity’ agreements cover 49 countries and territories, and accounting for just over 8% of its total trade.

    Leading off the debate, Minister in the Ministry of Foreign Trade, the Hon. Sandra Husbands, M.P., noted that the loss of preferential access to the UK market post-Brexit would have negatively impacted Barbados’ exports to the UK – one of Barbados’ top trading partners. She highlighted that Barbados’ major exports to the UK were sugar and rum, optical parts, condiments, mauby and biscuits. She drew attention to the important role played by the Barbadian diaspora in the UK. She also highlighted that preserving UK-Barbados trade was key to ensuring continued employment in these sectors in Barbados.

    Minister Husbands further lamented the very modest impact the EU-CARIFORUM EPA has had on UK-CARIFORUM trade, and UK-Barbados trade in particular. She contrasted Barbados and CARICOM’s limited performance with that of the Dominican Republic which has seen much greater trade and investment flows with the EU following the EPA.

    The presentation by Minister in the Ministry of Foreign Trade, the Hon. Sandra Husbands, MP. and the ensuing debate may be watched here:

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

    DISCLAIMER: All views expressed herein are her personal views and do not necessarily reflect the views of any institution or entity with which she may be affiliated from time to time.

  • Caribbean Trade & Development News Digest – November 17-23, 2019

    Caribbean Trade & Development News Digest – November 17-23, 2019

    Welcome to the Caribbean Trade & Development News Digest for the week of November 17-23, 2019! 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

    World merchandise trade is expected to remain below trend into the fourth quarter of 2019, according to the WTO’s latest Goods Trade Barometer. Read more here. The WTO’s new Trade Monitoring Report issued on 21 November shows that G20 economies from mid-May to mid-October 2019 introduced import-restrictive measures covering an estimated USD 460.4 billion worth of traded merchandise, a 37% increase: Read more.

    At the 38th Session of the ACP-EU Joint Parliamentary Assembly held November 17-21 in Kigali, Rwanda, parliamentarians from the European and ACP parliaments agreed on several resolutions. Read more here.

    CARICOM trade ministers met in Georgetown, Guyana, 18-19 November, for the 49th Regular Meeting of the Council for Trade and Economic Development (COTED). Read more here. A delegation from CARICOM also held a roundtable discussion with the US Congress on the issue of de-risking on November 19.

    REGIONAL NEWS

    US Congress Roundtable on de-risking in the Caribbean hailed a success

    CARICOM: Representatives of the governments of the 15-nation Caribbean Community (CARICOM) had a fully-attended Roundtable meeting on Tuesday November 19 with members of the U.S. Congress and senior representatives of major U.S. banks, concerning the effects of de-risking and the withdrawal of correspondent banking relations (CBRs). Read more

    UWI hosts Caribbean-China trade, investment symposium

    Guyana Chronicle: The University of the West Indies (UWI) Cave Hill Campus held a symposium titled “Exploring New Horizons in Caribbean-China Trade and Investment Relations” on Tuesday at the Errol Barrow Centre for Creative Imagination (EBCCI). Read more

    T&T manufacturers say seeking to tap all opportunities here

    Stabroek News: The Trinidad and Tobago Manufacturers’ Association (TTMA) led a Trade Mission to Guyana, from Wednesday to today, to engage in mutual trade with Guyanese companies. Read more

    Decisiveness, alacrity needed to confront challenges – COTED Chair

    CARICOM: Ministers with responsibility for Trade and Foreign Relations, in the Region began a two-day Meeting in Georgetown, Guyana, on Monday, against the background of difficult circumstances – trade, economic and environmental – facing the Caribbean Community (CARICOM). Read more

    Cops to receive training on trade-based money laundering

    LoopTT: Police Commissioner Gary Griffith met with Programme Officer of the Cybercrime and Anti-Money Laundering Section of the United Nations Office on Drugs and Crime (UNODC), Yevheniy Umanets. Read more

    JAMPRO pledges $1m in support of Kingston Creative

    Jamaica Observer: The Jamaica Promotions Corporation (JAMPRO) on Wednesday pledged $1million in support of Kingston Creative, a movement aimed at promoting culture and the regeneration of downtown Kingston. Read more

    Jamaica Customs updates items not requiring trade licenses

    Jamaica Observer: The Jamaica Customs Agency (JCA) has published a list of items which no longer require import or export licences from the Trade Board. Read more

    Minerals Sector Contributes 2.7 Per Cent To GDP

    JIS: Minister of Transport and Mining, Hon. Robert Montague, says in 2018, the minerals sector contributed some 2.7 per cent to Gross Domestic Product (GDP), while earning some US$1.3 billion. Read more

    Jamaica And China To Focus On Increasing Trade

    JIS: Prime Minister, the Most Hon. Andrew Holness, says Jamaica and China will focus on increasing trade, particularly in getting more Jamaican goods into the Chinese market. Read more

    Process to support CARICOM use of Jamaica’s new skills certificate completed — Johnson Smith

    Jamaica Observer: Minister of Foreign Affairs and Foreign Trade Kamina Johnson-Smith says Jamaica, during the 49th meeting of the Caribbean Community (CARICOM) Council for Trade and Economic Development (COTED) in Georgetown, Guyana, completed the process to support the use of the country’s new higher-security skill certificate. Read more

    The Organisation of Eastern Caribbean States (OECS) joins GGGI as its 34th Member and 1st Regional Integration Member

    OECS: The Organisation of Eastern Caribbean States (OECS) became the 34th Member of the Global Green Growth Institute (GGGI) after formally submitting its Instrument of Accession. The OECS is also the first regional integration organisation to become a member of GGGI. Read more

    Securing Economic Integration: The importance of intraregional trade

    OECS: Intraregional trade is a critical component of the OECS integration process. Significant strides have been made over the years to secure the foundation for a thriving common market – resulting in the successful establishment of the Eastern Caribbean Economic Union in January, 2011. Read more

    Barbados commercial expo in Belize

    LoveFM: Barbados Investment and Development Corporation and Belize’s Ministry of Investment, Trade and Commerce brought the Barbados Commercial Mission to Belize Expo. Today ten companies from Barbados were represented at the expo. Read more

    Some CARICOM countries want amendment to Common External Tariff for certain products

    Kaiteur News: The Council for Trade and Economic Development (COTED) has been receiving a concerning number of requests for the suspension of the region’s common external tariff (CET) for certain products. This is according to the Chair of the 49th meeting of the Council, Francine Baron. Read more

    CARICOM delegation discussing corresponding banking in the US

    Jamaica Observer: Antigua and Barbuda Prime Minister Gaston Browne is leading a Caribbean Community (CARICOM) delegation to the United States to participate in a roundtable discussion on de-risking and correspondent banking. Read more

    After trade deal, unhealthy foods flowed into Central America, Dominican Republic, study finds

    Buffalo University: The research highlights the importance of studying ties between trade and diet. Read more

    Icecream making to return to Bim

    Barbados Today: Iconic ice cream brand BICO will once again be made in Barbados come February after a decade of overseas production in several countries, BICO Ltd’s executive director Edwin Thirlwell, announced Tuesday. Read more

    INTERNATIONAL NEWS

    The WTO Faces a New Threat From Trump, This Time Over Its Budget

    Bloomberg: The Trump administration on Friday criticized the World Trade Organization’s compensation structure for appellate body members, laying out a case for potentially blocking the institution’s budget and effectively halting its work starting next year. Read more

    Twenty-second UNCTAD-OECD Report on G20 Investment Measures

    UNCTAD: The joint UNCTAD-OECD Report reveals that investment policy making in G20 members has slowed down further during the reporting period (mid-May to mid-October 2019). Only a few G20 Members took investment policy action, and the number of measures was low. Read more

    Beijing signs 197 Cooperation documents on Belt & Road Construction

    Belt and Road News: China has Signed 197 Cooperation documents on Belt & Road Construction with 137 Countries and 30 International organisations by the end of October 2019, Meng Wei, the Spokeswoman for the National Development and Reform Commission (NDRC), said at a Press Conference in Beijing. Read more

    ACP-EU : Agreement on climate change, migration and post-Cotonou

    European Parliament: MEPs and African, Caribbean and Pacific MPs agreed on climate change, migration, sustainable growth and the post-Cotonou agreement. Read more

    ACP-EU : Agreement on climate change, migration and post-Cotonou

    European Sting: During the 38th session of the Joint Parliamentary Assembly (JPA), which took place from 17 to 21 November in Kigali (Rwanda), Members of the European Parliament and their counterparts from 78 African, Caribbean and Pacific (ACP) countries debated and adopted several resolutions. Read more

    Need for a progressive EU-ACP partnership to address common global challenges

    Euractiv: The international scenario is rapidly changing, but not necessarily in a positive way. That’s why there is a need for a progressive partnership between the European Union and the Africa-Caribbean-Pacific countries, writes MEP Carlos Zorrinho. Read more

    Rwanda: Senate President Urges Lawmakers to Reflect Deeply on Global Issues

    AllAfrica: Senate President Dr Augustin Iyamuremye on Tuesday told delegates at the ongoing 38th session of the ACP-EU joint parliamentary assembly in Kigali that they must seize the opportunity, to reflect deeply on regional and global issues. Read more

    EU-Singapore trade agreement enters into force

    EU: On 21 November 2019, the EU-Singapore trade agreement entered into force. This means, among other benefits, that Singapore will now remove all remaining tariffs on EU products, provide new opportunities for EU services’ providers, ensure legal protection for 138 iconic European food and drink products (known as Geographical Indications), as well as remove regulatory obstacles to trade in key sectors. Read more

    WTO dispute settlement and the Appellate Body crisis: Insider perceptions and Members’ revealed preferences

    Vox: The WTO dispute settlement system is in crisis, endangering the future of the organisation. The proximate reason for alarm is the dwindling number of Appellate Body (AB) members, the result of the US blocking new appointments as the terms of sitting members expire. Read more

    Expert analysis: Africa’s free trade area – where are we now?

    GTR: The African Continental Free Trade Area (AfCFTA), launched in 2018 and now in its operational phase, is a landmark deal that aims to bring together 54 African countries with a combined population of more than 1 billion people and a combined GDP of over US$3tn. Read more

    Global Goods Trade Hit by Tensions and Rising Tariffs, WTO Says

    Bloomberg: Global trade in goods will likely remain below trend through the current quarter due to heightened tensions and rising tariffs in key sectors, according to a World Trade Organization report. Read more

    Japan’s Lower House approves trade deal with U.S.

    Japan Times: The Lower House signed off Tuesday on a trade deal with the United States that cuts tariffs on farm and industrial products, taking a step toward its entry into force next year. Read more

    The US–Japan trade deal: small agreement, broad implications

    East Asia Forum: The recent announcement of the US–Japan Trade Agreement (USJTA) must have come as a surprise to many in Japan given its unusual expeditiousness. The agreement was concluded just six months after negotiations began — a dramatic contrast to the EU–Japan Economic Partnership Agreement which took more than five years to achieve. Read more

    Japan’s exports post worst fall in 3 years as shipments to U.S., China drop

    Reuters: Japan’s exports tumbled at their quickest pace in three years in October, threatening to tip the trade-reliant economy into recession as weakening demand from United States and China darkened the outlook. Read more

    Donald Trump’s block on WTO judges creates ‘doomsday scenario’ for world trade disputes

    South China Morning Post: The world will not end on December 10, yet for many who have spent their careers within the global trading oversight system, the date has apocalyptic consequences. Read more

    Germany’s Merkel urges more investment in Africa

    RFI: Speaking at the third G20 Compact with Africa Summit in Berlin, German Chancellor Angela Merkel has urged more businesses to invest in Africa. But two years after its launch, experts say the compact has failed to reassure investors. Read more

    Global trade umpire: the next casualty of Trump’s tariff war?

    Reuters: U.S. President Donald Trump has upended the global trade order with a slew of tariffs on economic rivals: now, Washington has redoubled its efforts to paralyze the very body designed to settle such disputes. Read more

    Developing Global Free Trade: Linking China’s BRI with Mercosur, South America

    China Daily Briefing: Chinese President Xi Jinping has just returned from Brazil where he attended the annual meeting of the BRICS nations in Brasilia. With the Presidents and Prime Ministers from India, Russia, and South Africa also all attending, the scene has been set for Russia’s stint as the BRICS Chair in 2020, which is just six weeks away. Read more

    Beijing tariff demands may expand U.S.-China ‘phase one’ trade deal significantly

    Reuters: A “phase one” trade deal between the United States and China was supposed to be a limited agreement that would allow leaders from both countries to claim an easy victory while soothing financial markets. Read more

    EU defies Boris Johnson and declares UK will only get a ‘bare-bones’ trade deal or a no-deal Brexit next year

    Business Insider: The European Union’s trade chief has declared that Boris Johnson will only get a “bare-bones” trade deal next year — or none at all. Read more

    Eurobarometer survey: Majority of EU citizens positive about international trade

    EU: The results of a special Eurobarometer survey published today by the European Commission show that 60% of Europeans feel that they personally benefit from international trade, 16 percentage points more than 10 years ago at the time of the previous poll. Read more

    European Union launches WTO trade dispute against Colombia’s unfair duties on frozen fries

    EU: The EU has today brought a dispute to the World Trade Organization (WTO) against unlawful anti-dumping measures imposed by Colombia on frozen fries from Belgium, Germany and the Netherlands. Read more

    EU-Singapore free trade agreement comes into force

    Strait Times: The landmark trade agreement between the European Union and Singapore, which removes nearly all Customs duties between the two jurisdictions, comes into force today. 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:

  • Sustainable Infrastructure Investment Indispensable for Caribbean Competitiveness and Growth

    Sustainable Infrastructure Investment Indispensable for Caribbean Competitiveness and Growth

    Alicia Nicholls

    Earlier this week, Barbadians experienced something that for many of us was a lifetime first – two consecutive days of island-wide electrical blackouts. While this phenomenon has made international news, it should be noted that such occurrences are very rare in Barbados, a country which has long boasted of a high level of human development which belies its small size.  It should also be remembered that similar events have happened in much more resource-endowed countries.

    According to information released by the island’s lone electrical company, the Emera-owned Barbados Light & Power Company (BL&P), the blackout was caused by an unfortunate combination of aging equipment and bad fuel. The blackout also had several spinoff effects. It led to water outages in many parts of the island due to the reliance of the Barbados Water Authority’s pumps on electricity. Moreover, some customers also had issues with their mobile service perhaps due to the heavy reliance on data caused by the unavailability of wifi.

    In the aftermath of ‘powergate’ in Barbados, there will be much discussion about the impact the two-day blackout has had on productivity, private sector profits and the Barbadian economy. What it reiterates, though, is that sustainable public and private infrastructure investment is indispensable for Caribbean competitiveness, trade and growth.

    Sustainable Infrastructure

    From the roads on which we drive, the ports and airports, the telecommunications network on which we depend for our daily communications, sanitation networks and the like, infrastructure comprises the physical building blocks of our countries. Infrastructure, for example, is what helps to connect suppliers with consumers, and exporters with foreign markets. It is needed for our daily work, play and comfort. Spillovers for the economy include increased productivity, economic inclusion, job creation and growth.

    Increasingly, owing to the need to build climate resilience, the conversation is turning towards sustainable infrastructure. CRC Research defines sustainable infrastructure as “the designing, building, and operating of these structural elements in ways that do not diminish the social, economic and ecological processes required to maintain human equity, diversity, and the functionality of natural systems.”

    The need for sustainable infrastructure is mentioned throughout the Sustainable Development Goals which comprise the United Nations’ Agenda 2030. For example, SDG 9 speaks to building resilient infrastructure. A report produced by The Economist magazine also highlighted the critical role of infrastructure in achieving sustainable development.

    Sustainable Infrastructure key to building competitiveness

    It is little wonder, therefore, why infrastructure is among the indicators of a country’s competitiveness, as seen with the World Economic Forum (WEF)’s Global Competitiveness Index. Countries, such as Singapore, New Zealand and Denmark, which rank high on that index, as well as on the World Bank’s Doing Business Index, almost always score high for their infrastructure. Jamaica, which currently leads the region in ease of doing business, has, among other things, made substantial investments in improving its infrastructure. The Transjamaica Roadway and the new Single Window for trade are two examples.

    Capital expenditure projects, such as for the upgrading of port facilities, hospitals and road infrastructure, are often costly for cash-strapped governments. As such, many governments turn to multilateral development agencies for loans for infrastructure development. It is also why the China-initiated Belt and Road Initiative (BRI) has become so attractive to many governments, including some in the Caribbean, which have signed Memoranda of Understanding with China on this.

    Private sector has role to play

    However, it is not only Governments which have a role to play in ensuring sustainable infrastructure. Private sector entities are increasingly taking over functions once believed to be the domain of the State, including the provision of utilities. As such, these private entities also have a duty to ensure that they continuously invest in upgrading their infrastructure in order to meet international best practices for efficiency and environmental sustainability. To do otherwise would be detrimental to the customers which rely on them, as well as the economy and society as a whole.

    Alicia Nicholls, B.Sc., M.Sc., LL.B. is an international trade and development consultant. Read more of her commentaries here and follow her on Twitter at Licylaw.