Caribbean Trade Law and Development

Category: Trade

  • UK Government Loses Article 50 Brexit Appeal; Parliamentary Vote Needed

    UK Government Loses Article 50 Brexit Appeal; Parliamentary Vote Needed

    Alicia Nicholls

    In its ruling made shortly after 9:30 GMT this morning, the United Kingdom’s Supreme Court by a majority of 8 to 3 dismissed the Government’s appeal against a High Court decision that ruled that the Theresa May-led government must attain parliamentary consent before invoking the EU’s exit clause (Article 50 of the Treaty on European Union – Lisbon Treaty). A second issue which the court was called on to give its ruling upon was whether consultation with the devolved legislatures (e.g: Scotland, Wales, Northern Ireland) was required before Article 50 was triggered.

    In a judgment written by the 8 justices in majority and delivered by Lord Neuberger (President of the Supreme Court), the Court held that section 2 of the European Communities Act of 1972 Act did not allow the Government to trigger Article 50 without parliamentary authority.

    The main reasons for the Court’s decision were, inter alia, as follows:

    • Section 2 of the European Communities Act makes EU law another source of UK law which can override domestic law and will remain so unless and until Parliament decides otherwise.
    • Once the UK leaves the EU and as such is no longer party to the EU treaties, not only will UK domestic law have changed but the rights enjoyed by UK residents granted through EU law will be affected.
    • Under the UK constitution, parliamentary legislation is required for any fundamental changes to the UK’s constitutional arrangements. Withdrawal from the EU treaties would be such a fundamental change as it would cut off the source of EU law. The justices reiterated that there is “a vital difference between variations in UK law resulting from changes in EU law, and variations in UK law resulting from withdrawal from the EU Treaties”.
    • Parliamentary authority is needed because withdrawal from the EU would remove some existing domestic rights of UK citizens.
    • In regards to the June 23rd 2016 referendum, the Court held that “its legal significance is determined by what Parliament included in the statute authorising it, and that statute simply provided for the referendum to be held without specifying the consequences.”

    On the second issue under consideration, the Court unanimously held that the Government is not compelled to consult the devolved Parliaments.

    The Court’s ruling is final and it was a decision which was much more expected than the results of the June 23rd Brexit result which precipitated it. It should be emphasised that this ruling was on the legal question of whether the Government could make the Article 50 notification using its prerogative powers and not on the political question of whether Brexit should occur. It is also one of several legal challenges which have been filed since the Brexit vote decision.

    In brief remarks following the ruling, the Attorney General, Jeremy Wright, said the Government will comply with the ruling. Even before the ruling, the Government had indicated that in case it lost the appeal, it would present a short Brexit bill to minimise the need for lengthy amendments and debate that would jeopardise Prime Minister May’s end of March timeline for making the Article 50 notification. Once the Article 50 notification is received, the UK and EU would have two years to negotiate a withdrawal agreement, with an extension only possible if agreed to. EU countries had indicated that they would not be engaging in any informal negotiations with the UK prior to the latter’s Article 50 notification.

    In her long-awaited  speech last week in which she outlined her 12-point Brexit plan, Mrs. May confirmed that the UK would be pulling out of the single market (a move dubbed a “hard Brexit”) but also indicated that Parliament would be given the chance to vote on the final withdrawal deal negotiated with the EU.

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

  • President Trump signs executive order pulling US out of TPP

    President Trump signs executive order pulling US out of TPP

    Alicia Nicholls

    With the stroke of a pen, newly inaugurated United States president, Donald J. Trump, today made good on one of his least controversial campaign promises; withdrawing his country from the 12-country Trans-Pacific Partnership (TPP) agreement via an executive order.

    The Agreement, which was signed by the US and eleven other Pacific-rim participants in February 2016, was intended to be a high standard agreement and was significantly WTO-plus in its provisions. While hailed by big business for its ambitiousness, several aspects made the agreement significantly unpopular with civil society groups and increasingly some politicians which criticised the secrecy under which the negotiations took place, the implications of its intellectual property rights provisions for access to medicines, the choice of the longstanding investor-state dispute settlement mechanism for settlement of investor claims against states, inter alia.

    Another criticism was that in absence of significant progress in the WTO Doha Round (which is now all but declared dead) it would set new standards and rules for 21st century global trade given that the parties account for 40% of the global economy and a third of global trade. It would turn the non members into standard-takers without having the chance to have been at the negotiating table. Mr Trump’s criticism of the agreement,however, was simply that it would kill American jobs.

    Although President Barack Obama had championed the agreement and had pushed unsuccessfully for its ratification by congress, TPP was a rare point on which there was consensus by then candidates Republican, Donald Trump and Democrat, Hillary Clinton who both criticised its possible implications for US manufacturing and jobs. During the campaign, Mr. Trump had likened the agreement to rape of the country. Previously Mrs. Clinton had called it the “gold standard” but later said she was against the final outcome.

    The move is a politically beneficial one for President Trump as it ticks off one of his most popular campaign promises and makes him look like a hero for American workers. It also gets him bipartisan support and will likely improve his approval ratings which have been the lowest for an incoming president.

    Mr. Trump’s move also signals that he aims to stick to his “America first” trade policies. In upcoming days Mr. Trump also signalled his intention to start renegotiation of the North American Free Trade Agreement with partners Canada and Mexico to secure a better deal for American workers. Among other proposals, Mr. Trump has restated his threat to impose a border tax on imports from US companies which outsource jobs overseas. The withdrawal of the US from the TPP also raises questions about the future of yet another mega regional trade agreement, the Trans-Atlantic Trade and Investment Partnership Agreement (TTIP) currently under negotiation between the US and the EU.

    Mr. Trump will be meeting with UK Prime Minister Theresa May on Friday to discuss, inter alia, UK-US post-Brexit trade relations. Unlike his predecessor, President Trump has indicated that the UK will not be at the back of the queue for a free trade agreement with the US. However, in contrast to Mr. Trump’s neo-mercantilist views, Mrs. May has enthusiastically reiterated her support of free trade and free markets, indicating last week her intention for the UK to become a global leader of free trade.

    President Trump has indicated he will seek to negotiate bilateral agreements with those individual TPP countries with which the US does not yet have an FTA. With regard to the future of TPP, the views of the other countries are mixed. Japanese Prime Minister Shinzo Abe previously indicated that TPP without the US was meaningless. Malaysia indicated it would go the bilateral route while Australia indicated it would try to salvage the agreement. A major geopolitical concern raised by foreign policy analysts about the US’ withdrawal is that it misses an opportunity for the US to increase its influence in the Asia-Pacific region, leaving an opening for China which was not a party to TPP. However, negotiations on RCEP, to which China is party and seen as a rival to TPP, have also been slow.

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

  • WTO Ministers hold Informal Meeting on Davos Sidelines

    Alicia Nicholls

    On January 20, 2017 Ministers and other high-level officials from twenty-nine (29) World Trade Organisation (WTO) member countries held an informal gathering on the sidelines of the World Economic Forum’s 47th Annual Meeting which took place last week in the beautiful ski resort town of Davos, Switzerland.

    The attending ministers hailed from Asia, Africa, the US, European Union and Latin America, but none from the Caribbean. The meeting was chaired by Switzerland’s Federal Councillor, Johann Schneider-Ammann and involved discussion of the on-going negotiations before the WTO and the upcoming 11th WTO Ministerial which will take place this December in Buenos Aires, Argentina.

    According to notes taken by the Chair, Ministers stressed the key role of the rules-based multilateral trading system, the priority of working towards further integration into world trade of developing countries, the importance of trade as an engine for growth and development,inter alia. They also identified several issues for further work in the lead up to the Buenos Aires Ministerial, including domestic support in agriculture, fisheries subsidies, special and differential treatment and a permanent solution for public stockholding for food security issues. The Ministers also identified several “new” issues for discussion.

    Trade has been high on the political agenda due in the main to a growing popular backlash in western countries. As noted by Director-General Azevedo, some positive news is that the WTO’s Trade Facilitation Agreement will ever closer to coming into force, with only 3 more ratifications needed. Nigeria delivered its instrument of ratification during the Davos Meeting, while member state of the Caribbean Community, St. Vincent and the Grenadines, also recently ratified the Agreement.

    In attendance was also the WTO Director General, Roberto Azevedo whose remarks  after the ministerial gathering may be viewed here. The Director-General noted that there was need for better domestic policies to support persons who had lost their jobs but also reinforced that attacking trade was not the answer. In reference to the increasing speculation of a looming trade war between Trump’s US and China, Mr. Azevedo cautioned that trade wars and protectionism would destroy jobs and urged “everyone to show caution and leadership. We must avoid talking ourselves into a crisis.”

    Earlier this week, UK Prime Minister Mrs. Theresa May in her Davos Speech reiterated her desire for Britain to be a global leader in free trade and free markets.

    The Personal Concluding Remarks by the Chair, Federal Councillor Johann N. Schneider-Ammann, Switzerland can be found on the WTO’s website here.

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

  • Caribbean Trade and Development Digest – January 15-21, 2017

    Caribbean Trade and Development Digest – January 15-21, 2017

    Source: Pixabay

    Welcome to the Caribbean Trade and Development Digest for the week of January 15-21, 2017 where we share some of the major trade and development headlines from across the Caribbean and the world.

    And what a week it was! UK Prime Minister May has finally announced her Brexit plan and the UK Supreme Court announced it will deliver its ruling in the Article 50 Brexit Appeal this coming Tuesday. Globalisation took centre-stage at the Annual World Economic Forum meeting in Davos, while  top of mind was the inauguration of US President Donald Trump who was sworn in as the US’ 45th president, and that’s just the tip of iceberg!

    Below we present the major headlines. For past issues of our weekly Caribbean Trade & Development Digest, please visit here.

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    REGIONAL HEADLINES

    CARICOM optimistic of Trump’s vision

    Trinidad Guardian: Caribbean states are hoping America’s new Donald Trump administration – taking over from today – will continue trade and security arrangements as well as other structures which have traditionally been in force between Caricom and the US. Read more 

    Dominican Republic applies definite AD on Chinese rebar 

    Steel Orbis: Dominican Republic’s Commission for Trade Defense announced it has applied a definite anti-dumping ad valorem duty on Chinese rebar. Read more

    Commerce nominee Ross; No position on Cuban embargo

    Washington Examiner: Wilbur Ross, the banker-turned-investor and President-elect Donald Trump’s pick to head the Commerce Department, told a Senate hearing Wednesday that he has no position yet on handling trade with Cuba. Read more 

    Call for CARICOM agency to vet CIP applications

    Antigua Observer: The head of a well-known citizenship advisory firm is making a call for Caribbean Citizenship by Investment Programmes (CIPs) to vet applicants through Caricom’s Joint Regional Communications Centre (JRCC). Read more 

    Airbnb and Curacao sign tourism agreement

    Curacao chronicle: Today, Curaçao’s Minister of Economic Development, Eugene Rhuggenaath and the Minister of Finance, Kenneth Gijsbertha, on behalf of the government, signed an important agreement with Airbnb that will help to promote Curaçao as world-class tourist destination. Read more 

    UWI Lecturer calls for better CARICOM trade under Trump

    Trinidad Guardian: A UWI lecturer is calling on T&T and other Caricom member states to establish a united proposal to improve and further develop trade and other relations with the United States under US President-elect Donald Trump, who takes office on Friday. Read more

    Trade and investment agreement signed between Curacao and the Dominican Republic

    Caribbean news now: An agreement was signed last Tuesday in the office of the consul of the Dominican Republic in Curacao; between ADECK; the Association of Small and Medium size business in Curacao and the Dutch Chamber of Commerce in the Dominican Republic.Read more

    Full, frank discussion needed on CSME says Barbados PM Stuart 

    Caricom Today: Prime Minister Freundel Stuart believes the time has come to have “full and frank discussions” on the CARICOM Single Market and Economy (CSME). Read more 

    UN adviser for new consortium to bolster Haiti’s long term recovery 

    Caricom Today: A senior United Nations adviser has called for a new “consortium” of donors to bolster Haiti’s long-term recovery. Read more

    Jamaica confident about reviving pork exports to CARICOM 

    Jamaica Gleaner: Jamaica’s meat companies are weighing a resumption of pork exports to Caribbean neighbours, but say it all depends on the reception from government agencies throughout the region and the harmonisation of standards. Read more 

    INTERNATIONAL

    Fiji Signs newest version of the MSG Free Trade Agreement

    Fiji Sun: FIji Prime Minister Voreqe Bainimarama has signed the Melanesian Spearhead Group Free Trade Agreement. Read more 

    Donald Trump is sworn in as president

    New York Times: Donald John Trump was inaugurated as the 45th president of the United States on Friday, ushering in a new era that he vowed would shatter the established order and reverse a national decline that he called “this American carnage.” Read more

    Ross prefers inking bilateral trade agreements

    The Hill: Commerce Secretary-designate Wilbur Ross echoed Donald Trump’s call for bilateral trade deals instead of larger agreements where he says the United States tends to lose out. Read more 

    WTO chief Warns against stumbling into trade wars

    Irish Times: The world should be wary of stumbling into trade wars that would destroy jobs, World Trade Organisation director general Roberto Azevedo said on Friday. Read more

    Chinese President Xi Jinping: No one can win a trade war

    CNN Money: “Many of the problems troubling the world are not caused by economic globalization,” Xi said Tuesday at the World Economic Forum in Davos. “Whether you like it or not, the global economy is the big ocean you cannot escape from.” Read more

    New Zealand and Sri Lanka to consider Free Trade Agreement

    Reuters: New Zealand and Sri Lanka will open diplomatic posts in each other’s nations and are considering a free trade agreement, the Pacific country’s trade minister said on Friday. Read more 

    Indian Cabinet approves Trade Agreement negotiations with Peru

    Economic Times (India): The Indian Cabinet has approved holding negotiations for a trade agreement with Peru. Read more 

    EU and US publish TTIP state of play assessment

    EU: On 18 January Trade Commissioner Cecilia Malmstrom and United States Trade Representative Michael Froman published a joint assessment of the progress made in negotiations for a Transatlantic Trade and Investment Partnership (TTIP) since negotiations started in July 2013. Read more 

    US Chamber of Commerce warns Trump on Trade

    CNBC: Washington needs to trade with foreign markets if it wants to boost domestic growth, the U.S. Chamber of Commerce warned on Monday. Read more 

    PM May Defines “Brexit means Brexit”

    FRANHENDY: Today, in an address which lasted just over forty minutes, former ‘Remainer’, Prime Minister Theresa May,added some content and context to her well-worn maxim: brexit means brexit. Read more 

    China’s Xi warns of Dangers of Trade War

    VOA: Chinese President Xi Jinping warned governments of the dangers of a trade war while speaking at the World Economic Forum in Davos, Switzerland on Tuesday. Read more 

    Ottawa Weeks away from starting free-trade talks with China

    The Globe & Mail: The Trudeau government is weeks away from an inaugural round of talks on a free-trade agreement with China as it presses ahead a central objective in its plan to deepen ties with the world’s second-largest economy. Read more 

    Azevedo welcomes call in Davos for progress at the WTO; urges caution on protectionism

    WTO News: Attending the World Economic Forum in Davos, WTO Director-General Roberto Azevêdo welcomed the strong desire shown by ministers and the private sector for new negotiated outcomes to be delivered at the WTO’s Ministerial Conference in Buenos Aires in December this year. Read more 

    Nigeria ratifies the Trade Facilitation Agreement 

    WTO News: Nigeria has ratified the Trade Facilitation Agreement (TFA), making it the 107th WTO member to do so. Only three more ratifications from members are needed to bring the TFA into force. Read more 

    United States files WTO complaint against Canada over measures affecting the sale of wine in stores 

    WTO News: On 18 January the United States notified the WTO Secretariat that it requested WTO dispute consultations with Canada regarding measures maintained by the Canadian province of British Columbia governing the sale of wine.Read more 

    Free trade talks already under way with range of non-EU countries 

    Sky News: Article 50 has yet to be signed but already Theresa May has laid out her negotiating lines and has said that informal talks are already taking place about Britain’s future trade relations with the rest of the world. Read more 

    France’s Hollande criticises protectionism as “worst response”

    Reuters: France’s President Francois Hollande on Saturday criticized protectionism and with his Chilean counterpart said that Europe would look to strengthen ties with Latin America, speaking a day after U.S. President Donald Trump took office. Read more

    RCEP more relevant now more than ever

    New Strait Times:When American President-elect Donald Trump called the Trans-Pacific Partnership (TPP) agreement a “disaster” and vowed to pull out of it as soon as he took office, the international media almost instantaneously pronounced the TPP dead. Read more 

    Malaysia’s move if TPPA falls through

    The Star: Should the Trans-Pacific Partnership Agree­ment (TPPA) fall through, Malaysia may look into the possibility of pursuing bilateral free trade agreements (FTAs) with TPP members, said International Trade and Indus­try Minister Datuk Seri Mustapa Mohamed. Read more 

    Djibouti-Ethiopia railway carries hope for Pan-African trade

    Financial Times: Great article by FT discussing the prospects that the Djibouti Ethiopia railway will have for Pan-African trade. Read more 

    Britain must relax immigration rules for Australians if it wants a free trade deal, says High Commissioner to UK

    Independent: Australia will seek ‘greater access’ for its businesspeople before reaching a post-Brexit trade agreement with the UK, says Alexander Downer. Read more

    Free trade agreement with India a “high priority” for Canada

    The Star: Federal Liberal Infrastructure Minister Amarjeet Sohi, fresh off a trade promotion trip to India, says a free-trade agreement with India “is high priority for our government.” Read more 

    Wallonia parliament holds third hearing on EU-Vietnam free trade agreement

    Vietnam Net: The parliament of Belgium’s Wallonia region held the third hearing on the European Union-Vietnam Free Trade Agreement (EVFTA) on January 19.  Read more 

     

     

    BONUS

    Time to solve intra-Africa trade challenges

    The New Times (Rwanda): In a CNBC televised debate in Davos, Switzerland, President of Rwanda, Paul Kagame has challenged African countries to solve intra-Africa trade challenges. Read the article here and WATCH VIDEO

    NEW ON CARIBBEAN TRADE LAW & DEVELOPMENT

    5 Main Points from PM May’s Davos Speech

    TTIP: Joint US-EU State of Play Report Published

    UK Supreme Court to deliver ruling in Article 50 Brexit Appeal next Tuesday

    Why PM May’s “Hard Brexit” Choice is no surprise

    President Obama Ends Three Special Parole Programs for Cuban Migrants

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