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  • Communique from 43rd Regular Meeting of CARICOM HoGs

    Communique from 43rd Regular Meeting of CARICOM HoGs

    CARICOM Secretariat: The Forty-Third Regular Meeting of the Conference of Heads of Government of the Caribbean Community (CARICOM) was held from 3-5 July 2022.  Chair of the Conference, the President of Suriname, His Excellency Chandrikapersad Santokhi presided over the proceedings.
    Other Members of the Conference in attendance were: Prime Minister of Antigua and Barbuda, the Honourable Gaston Browne; Prime Minister of The Bahamas, Honourable Philip Davis; 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, Honourable Dickon Mitchell; President of Guyana, His Excellency Mohamed Irfaan Ali; Prime Minister of Haiti, the Honourable Ariel Henry; Premier of Montserrat,  Honourable Joseph Farrell; Prime Minister of Saint Lucia, Honourable Philip Pierre; the Prime Minister of St. Vincent and the Grenadines, Dr the Honourable Ralph Gonsalves; and the Prime Minister of Trinidad and Tobago, Dr the Honourable Keith Rowley.

    Jamaica was represented by Senator the Hon. Kamina Johnson-Smith Minister of Foreign Affairs and Foreign Trade; St Kitts and Nevis was represented by Ambassador Lionel Sydney Osborne, Ambassador to CARICOM.

    Associate Members in attendance were: Bermuda represented by Hon. Walter H. Roban Deputy Premier and Minister of Home Affairs; British Virgin Islands represented by Premier, Honourable Dr. Natalio Wheatley; and the Turks and Caicos Islands represented by Premier Honourable Charles Misick.

    OPENING CEREMONY
    The Opening Ceremony was addressed by the Chair of Conference His Excellency Chandrikapersad Santokhi, outgoing Chair Honourable John Briceño; Prime Minister of The Bahamas, Honourable Philip Davis; Prime Minister of Grenada, Honourable Dickon Mitchell; Prime Minister of Saint Lucia, Honourable Philip Pierre; Secretary-General of the Caribbean Community, Her Excellency Carla Barnett, and the Secretary-General of the United Nations, His Excellency António Guterres.

    Secretary-General Barnett underscored the need for the work of the Community to make a difference in the lives of its citizens. She said that the Conference was meeting at a time of severe global crisis in three vital areas, namely, food, energy, and finance.

    “Addressing solutions for our Region requires collective intellect and will to act together. This task is not beyond us, as we have proven time and again. Let us, therefore, once more unto the breach and make a difference in the lives of our people,” Secretary-General Barnett added.

    The United Nations Secretary-General said the meeting came at a moment of maximum peril for people and planet alike. He noted that CARICOM Member States were victims of the myth that middle-income countries did not need concessional financial support – a need that completely disregarded vulnerability to external shocks.

    He pointed to three areas of concern for consideration. He identified climate action that matches the scale and urgency of the crisis; reform of the morally bankrupt global financial system and the fight against the COVID-19 pandemic.

    The Prime Minister of The Bahamas said it was striking that so many of the Community’s most urgent struggles derived in great part from external causes. He noted that although responsibility for making the individual countries stronger and more resilient to the impact of external events lay within each government, the history of the Region made it clear that “we can have a greater impact if we also join forces and stand together.”

    “Too many times, our countries have acquiesced to the pressures of larger, more developed states. Their approach of divide and conquer has hurt us all,” he added. “The scaffolding for our regional architecture –the scaffolding for our future — is in our hands,” he said.

    The Prime Minister of Grenada noted that July 4th marked the 49th anniversary of the signing of the Treaty of Chaguaramas and provided an opportune time to pause and reflect on the many experiences in pursuit of regional integration.  “Over the last 49 years, we have had many moments of celebration coupled with moments that required solemn reflection, still all the while envisioning the future,” he said.

    The Prime Minister said he was excited and fully on board with the CARICOM 25% by 2025 Food Import bill Reduction strategy. “We must however transition to the next generation, along with new technologies and knowledge application to enhance agriculture production,” the Prime Minister said.
    He said now was a time for all the young people across the Caribbean Community. “This is your moment, where it is a Time for Action and a Time of Choosing,” he said.

    Prime Minister of Saint Lucia stated that the Russia-Ukraine war had left the entire world suffering from rising inflation, making life for most households very difficult, more so for the people of the region who were still reeling from the effects of the COVID-19 Pandemic, which brought with it business closures, loss productivity, reduced tourism arrivals and the reduction in government revenues.

    “The demands on our public health system, which we shouldered to keep our people safe and the provision of social protection and support measures for vulnerable citizens have left governments of the region with very little fiscal space to move ahead to grow their respective economies,” he added.
    The Prime Minister said that despite those dangerous winds, Saint Lucia’s faith in CARICOM remained strong and unshaken and continued to believe in the potential strength and protective shelter that CARICOM could provide.

    The Prime Minister of Belize noted that the Community should be proud that it had been able to effectively exert strong and influential leadership at the global level. He said CARICOM’s leadership on climate and on access to finance was starting to bear fruit.

    “We have a standing invitation from the G20 Presidency of Indonesia to participate in their work, which is now extended to Suriname as the Incoming Chair. The IMF’s new Resilience and Sustainability Trust — not without its imperfections— is a direct response to our advocacy. The finalisation of the multidimensional vulnerability index is within sight,” he said.

    Chair of Conference, the President of Suriname said we found ourselves at a crossroads and it was the moment, to re-assess, refocus and recommit our endeavours, to ensure sustainable development and prosperity, for the people of the Region, ultimately aimed, at leaving no one behind.

    “But we require leadership and willingness, to go for broad cooperation. To go for a creative approach. To go for innovation in our approach, for new strategies. To go, for private sector involvement. To go, for the participation of the youth,” the Chair stated.

    He proposed the establishment of a Caricom Private Equity Fund, to support Caricom Enterprises and the facilitation of Partners, to set up private equity and debt funds, in the Region, to bolster employment and growth.

    All the full statements are available at www.caricom.org.

    ORDER OF THE CARIBBEAN COMMUNITY

    During the Opening Ceremony, three outstanding CARICOM citizens were conferred with the Community’s highest award the Order of the Caribbean Community (OCC). Dame Billie Miller, former Deputy Prime Minister of Barbados; Ambassador Irwin LaRocque, former CARICOM Secretary-General; and Sir Isaac Vivian Alexander Richards, one of the greatest cricketers of all time.

    A fourth awardee was announced, Mr David Rudder, the exceptional calypsonian and he will be conferred at a later date.

    Ambassador LaRocque and Sir Vivian expressed their appreciation for being conferred with the award and Senator the Honourable Dr Jerome Walcott, who received the award on behalf of Dame Billie expressed appreciation on her behalf.

    The citations for the three who were awarded are available on www.caricom.org

    AGREEMENTS SIGNED AND RATIFIED

    Protocol to Amend Article 32 of the Revised Treaty of Chaguaramas establishing the Caribbean Community including the CARICOM Single Market and Economy (ratified by Barbados)

    Protocol to Amend the Revised Treaty of Chaguaramas establishing the Caribbean Community including the CARICOM Single Market and Economy to Allow for Enhanced Cooperation among Member States and to Address Related Issues. (ratified by Barbados; signed by Saint Lucia)

    Protocol on Public Procurement for the Caribbean Community (signed by Haiti)

    Declaration of Intent to Provisionally apply the Protocol on Public Procurement for the Caribbean Community. (signed by Haiti)

    Protocol Amending the Revised Treaty of Chaguaramas to Incorporate the Council for National Security and Law Enforcement (CONSLE) as an Organ of the Community and the CARICOM Implementation Agency for Crime and Security (IMPACS) as an Institution of the Community. (signed by Haiti)

    Agreement Establishing the Caribbean Accreditation Authority for Education in Medicine and other Health Professions. (signed by Haiti)

    HEALTH

    COVID-19

    Heads of Government acknowledged that COVID-19 still remains a pandemic with a substantial number of cases still being reported across the Region. They commended the Caribbean Public Health Agency (CARPHA)’s continued comprehensive response to COVID-19 in keeping with the Agency’s mandate.

    They also acknowledged that the impact of COVID-19 has demonstrated that, as countries advance towards recovery and resilience, a whole-of-government and society approach was needed which carefully balanced public health measures and economic recovery programmes.

    Heads of Government urged the multi-lateral financial institutions to recognise the urgent need for assistance as it is critical for Member States to strengthen social safety nets decimated by the support rendered to citizens during the COVID 19 pandemic.

    Heads of Government emphasised that this support was critical as there was genuine suffering and hardship being experienced by a significant number of people in the Region. They lamented the loss of face to face schooling time and its impact on the educational performance and all-round development of the students in the Community.

    Heads of Government emphasised responsible individual behaviours, vaccination, strengthened health systems and continued and enhanced vigilance, were all essential factors for successfully navigating through this current phase of the pandemic.

    Heads of Government recognised that measures should therefore be put in place to reduce the impact of COVID-19 taking into account the incidence of Long COVID which could result in a significant increase in chronic illness and disability that could potentially further overwhelm the health sector including its labour force, especially where countries already had a high burden of Non-Communicable Diseases (NCDs). 

    Heads of Government noted that as the health sector moved towards recovery after COVID-19, it was an opportunity to restructure health care services and public health programmes using the lessons learnt during the pandemic to respond to re-emerging and new diseases which may cause pandemics.

    Heads of Government paid tribute to Dr Douglas Slater the retiring Assistant Secretary-General Human and Social Development at the CARICOM Secretariat and thanked him for his service to the Region.

    CARICOM SINGLE MARKET AND ECONOMY (CSME)

    Heads of Government expressed disappointment at the slow pace of implementation of the CARICOM Single Market and Economy (CSME) and took immediate steps to move the process forward.
    They noted in particular the area of movement of skilled workers and in that regard agreed to definitions of and qualifications for household domestics, an agricultural worker and private security officer which are agreed categories for free movement.

    Heads of Government mandated the Secretariat to convene meetings of the Registrars of Companies and the Ministers with responsibility for companies before the end of July 2022 to elaborate the steps to enable Member States to implement the principle of mutual recognition of any company incorporated in another CARICOM Member State and report to the Conference at its meeting in September.

    Heads of Government acknowledged online solutions designed to increase efficiency in the delivery of services to the Region have been advanced. These include – the Labour Market Information System (LMIS), Online Companies Registry System (OCRS), the Community Public Procurement Notice Board (CPPNB), the CARICOM Rapid Alert System for Exchange of Information on Dangerous (non-food) Goods (CARREX) and the CARICOM Interactive Marketplace and Suspension Procedure (CIMSuPro).

    ADVANCING THE CARICOM AGRI-FOOD SYSTEMS AGENDA
    Heads of Government received an update on the progress made by the Ministerial Task Force on Food Production and Food Security (MTF) in advancing the CARICOM Agri-Food Systems Agenda to address the current food security challenges and rising food prices and to achieve the 25 by 2025 Vision – the reduction of the food import bill by 25 percent by 2025.

    They noted that a majority of Member States have developed and submitted to the MTF their national targets, which will contribute to the attainment of the 25 by 2025 targets. The MTF, through the Secretariat, has developed a reporting and monitoring tool which Member States are requested to report on monthly.

    They mandated the Council for Trade and Economic Development (COTED) to conclude, by the end of July 2022, various initiatives and programmes, aimed at the removal of Non-Tariff Barriers to Intra-Regional Trade.

    Heads of Government requested the CARICOM Private Sector Organization Inc. (CPSO) to accelerate implementation for its various agricultural investment projects.

    The MTF, working in collaboration with the CPSO, has identified 19 potential investment opportunities for displacing extra-regional agri-food imports among CARICOM Member States.

    They commended the Lead Head of Government with responsibility for Agriculture and Agriculture Development in the CARICOM Quasi-Cabinet, His Excellency Mohammed Irfaan Ali, President of the Cooperative Republic of Guyana, for the success of the CARICOM Agri-Investment Forum and Expo held in Guyana from 19-21 May 2022 and endorsed the Action Plan and Outcome Statement of the event.

    The Statement called for priority action to be centred around four main areas; Food Insecurity, Regional Transportation, Trade Barriers, and Women and Youth in Agriculture.

    Heads of Government welcomed the Draft Terms of Reference (TOR) developed by the Secretariat for the establishment of a Regional Youth in Agriculture Advisory Mechanism which was agreed upon following the Regional Youth in Agriculture Dialogue during the Forum and Expo.  This Advisory Mechanism will assist the MTF in ensuring that youth participation and inclusion is accounted for in all its efforts to achieving 25 by 2025. 

    Heads of Government endorsed and encouraged participation in the Agri-Investment Forum to be held in Trinidad and Tobago from 19-21 August 2022.

    Heads of Government commended the work of the MTF.

    TRANSPORTATION

    Heads of Government considered the Region’s need for a significantly enhanced transportation system that can bolster food security and deepen regional integration.

    Heads of Government welcomed an update from the Prime Minister of Barbados on advanced discussions with the United Arab Emirates regarding support for both a traditional ferry and fast ferry service for the Region and noted that a related proposal from the Capital Abu Dhabi is being awaited.
    Heads of Government requested the Caribbean Development Bank (CDB) to commence the proposed roadmap study on the factors needed for successfully establishing a fast ferry service for the transportation of agricultural produce – with an initial focus on trade between Guyana, Trinidad and Tobago, Grenada, and Barbados. 

    They agreed to establish a Working Group to provide oversight of the project which will include representatives from the Governments of Barbados, Grenada, Guyana and Trinidad and Tobago, as well as the CARICOM Secretariat, Caricom Private Sector Organisation (CPSO), and the CDB.

    ENERGY SECURITY

    Heads of Government considered and approved a paper on Economic Development and Energy Transition and Climate Change as its overarching strategy in advancing energy security.

    They agreed to increase focus and investment in energy security by utilising and harnessing hydrocarbon resources in the region towards reducing dependency on external resources and supplying the growing global needs arising out of the Russia-Ukraine conflict.

    Heads of Government agreed to pursue energy diversification and security through making use of significant assets in the Region with immediate existing capacity in LNG and fertiliser for agriculture.
    They also agreed to develop the renewable energy sector through building infrastructure to meet regional power generation needs.

    Heads of Government agreed, in the context of the bilateral relationship with the United States,to urge for the removal of the sanctions on Venezuela to allow for countries in the Region to benefit from the PetroCaribe initiative and for progress on the exploitation of cross-border natural gas fields between Trinidad and Tobago and Venezuela.

    CARICOM INDUSTRIAL POLICY

    Heads of Government recognising the need for urgency in the development of an Industrial Policy Strategy for the Community added Suriname, as Lead Head for Industrial Policy, to the core membership of the Prime Ministerial Sub-Committee on the CSME.

    Heads of Government agreed to establish a technical working group to focus on the implementation of the Policy and its recommendations would be considered and approved by a Ministerial Task Force (MTF) on Industrial Policy chaired by Suriname.

    HAITI

    Heads of Government received an informative update on the situation in Haiti and welcomed developments which heralded the possibility of a dialogue process taking place to resolve the protracted multidimensional crisis. They urged that this process should be pursued to ensure a Haitian-owned resolution and encouraged all stakeholders to participate

    They also welcomed the possible acceptance of international observers including CARICOM to accompany the dialogue process.

    Heads of Government expressed grave concern at the deteriorating security situation and noted the efforts of Haiti’s international partners to strengthen the capacity of the Haitian National Police. They reiterated the offer of assistance to combat the challenge.

    Heads of Government underlined the importance of a CARICOM initiative outside the existing parameters to address the situation and which could include other regional partners. In that regard, they mandated the Council for Foreign and Community Relations (COFCOR) to undertake consultations with international partners, including the African Union, the Francophonie and the Community for Latin American and Caribbean States (CELAC) to determine their readiness to assist.
    Heads of Government agreed that the Bureau of Conference expanded to include St Vincent and the Grenadines, Barbados and Jamaica should provide CARICOM leadership on Haiti.

    Heads of Government also agreed that a CARICOM fact-finding mission at high political level should take place in view of the security assurances given by the Government of Haiti.

    Heads of Government noted and supported Suriname’s hosting of a meeting of the International Partners Ministerial Level Meeting on Haiti to be held on 8 July 2022.

    Heads of Government support the renewal of the UN Office in Haiti (BINUH) as recommended by the UN Secretary General with a strengthened mandate taking into account the prevailing security situation.

    CLIMATE CHANGE

    Heads of Government acknowledged that all modelled scenarios indicate that the 1.5°C global warming level will be reached or exceeded in the near term with devastating implications for Small Island and low-lying coastal Developing States (SIDS).

    They noted that critical economic sectors and infrastructure would be severely affected by the impact of climate change. This would require considerable public and private investment and necessitate urgent access to adequate, predictable, affordable climate finance, at scale, to achieve climate resilient development.

    Heads of Government recognised, however, that the current international climate change architecture was not responsive to the urgent climate resilience requirements of CARICOM SIDS and is in immediate need of reform.

    They called for the simplification and streamlining of access criteria across donors and multilateral funds to accelerate climate finance to the Region, taking into account the unique and special circumstances of SIDS.

    Heads of Government agreed to the adoption of a two-pronged strategic Programme of Action to scale up climate finance towards building resilient economies and societies. This would entail focussed and active advocacy to secure the fair and equitable allocation of concessional finance, and a strategy for resource mobilisation.  In this regard, Heads of Government acknowledged the CDB’s Recovery Duration Adjustor model and called for the early adoption and implementation of a multi-dimensional vulnerability and resilience framework to facilitate the access of SIDS to more bilateral and multilateral concessional climate financing.

    Heads of Government further agreed that the CARICOM regional institutions operating in the climate change and climate finance space, would continue to coordinate and collaborate on key issues and emerging trends towards the formulation of a strategic approach to enhancing the Community’s access to climate finance.

    COMMUNITY GOVERNANCE

    Heads of Government discussed an initial paper on enhancing Community Governance with a view to facilitating more effective decision-making and timely follow up on the Community agenda.

    They welcomed the paper which set out a framework for addressing Governance issues in the immediate to medium term, focusing on improving the effectiveness of decision making as a critical factor in strengthening implementation.

    Heads of Government acknowledged that the role of the Organs, Bodies and Institutions was linked to the effectiveness of decision-making and implementation therefore a review of the decision-making processes in the Organs and Bodies was a critical precursor to strengthening Community governance.

    Heads of Government noted that the paper identified issues which prevented effective progress of the Organs and Bodies as well as the CARICOM Secretariat and outlined possible solutions. They also noted that there was an ongoing review of the Regional Institutions.

    Heads of Government mandated the Secretariat to implement the recommendations which did not need further authority from the Revised Treaty of Chaguaramas while consideration was being given to re-constitute the Inter-Governmental Task Force to further revise the Treaty.

    Heads of Government commended the Secretary-General for her work on the paper and mandated her to work with the Lead Head of Government for Governance in the Quasi-Cabinet to advance the process.

    SECURITY
    Heads of Government welcomed a briefing on the security situation in the Community from the CARICOM Implementation Agency for Crime and Security (IMPACS).

    They agreed to accept its recommendations and also agreed to convene a meeting of the Conference to address Crime and Violence as a Public Health issue at the earliest opportunity.

    They mandated the Council for Security and Law Enforcement (CONSLE) to lead the preparations for the Meeting along with the Council for Health and Social Development (COHSOD) and relevant public health personnel.

    Heads of Government further agreed to improve sharing of gun crime intelligence with the regional gun crime unit and to strengthen the co-operation in sharing of intelligence among law enforcement personnel of Member States.

    REPARATIONS

    Heads of Government reiterated their call for Reparations for the victims of slavery and native genocide.

    They welcomed the call by His Royal Highness the Prince of Wales for a conversation on the effects of slavery.

    Heads of Government recommitted to advancing the work of the CARICOM Reparations Commission.
    Heads of Government agreed to continue seeking the support of the African Union and the Government of India in their quest for reparations for the victims of slavery and native genocide.

    SUMMIT OF THE AMERICAS

    Heads of Government acknowledged the outcome of the Ninth Summit of the Americas which addressed health and resilience in the Americas, digital transformation, clean, sustainable renewable and just energy transition, sustainable green future, and democratic governance.   

    They were concerned, however, that its outcome did not adequately reflect issues of significance to the Community such as the post-pandemic recovery; climate financing; debt and debt financing; energy and food security; access to financing; firearms entering the CARICOM Region; and the importance of an inclusive Summit with the full participation of all the countries of the Americas.

    Heads of Government welcomed the exchange with the President of the United States to address some of their concerns. They accepted the proposal to establish immediately three joint committees to address cooperation on (i) Finance; (ii) Food Security; and (iii) Energy Security. 

    Heads of Government agreed that the work of these Committees would be monitored by the relevant Lead Heads of Government in the CARCIOM Quasi-Cabinet:  Prime Minister of Barbados, Honourable Mia Amor Mottley, for the Finance Committee; President of Guyana, His Excellency Mohamed Irfaan Ali, for the Food Security Committee; and Prime Minister of Trinidad and Tobago, Dr. the Honourable Keith Rowley, for the Energy Security Committee.

    Heads of Government agreed that the co-chairs to represent the Community on the committees were Finance:  Professor Avinash Persaud, representing the Lead Head of Government (Barbados); Food Security:  Mr. Robert Persaud, Foreign Secretary, Ministry of Foreign Affairs and International Cooperation, representing the Lead Head of Government (Guyana); and Energy Security:  Honourable Stuart Young, Minister of Energy and Energy Industries, representing the Lead Head of Government (Trinidad and Tobago).

    Heads of Government noted that the CARICOM Secretariat had also submitted to the United States an initial list of “near-term energy security, food security, and development/debt finance priorities” of CARICOM, as advanced by the Co-Chairs of the respective Committees.

    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 noted that Belize submitted its Counter Memorial to the Court on 3 June 2022.

    They noted with concern that the commitment by both countries and the Organization of American States (OAS) to design and develop a mechanism of co-operation for the Sarstoon River still remains pending and called on both countries and the OAS to redouble 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 reiterated their support for the important role of the OAS in the process aimed at resolving the dispute, arising from Guatemala’s claims on Belize; and called on the international community to continue supporting the OAS Office in the Adjacency Zone.

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

     Guyana-Venezuela Relations

    With respect to the case before the International Court of Justice concerning the Arbitral Award of 3 October 1899 (Guyana v. Venezuela), Heads noted that Guyana had submitted its Memorial on 8 March 2022, in accordance with the schedule set by the ICJ to hear the case, 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 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.

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

    ENGAGEMENT WITH THE PRIVATE SECTOR, LABOUR AND CIVIL SOCIETY

    Heads of Government welcomed presentations from the CARICOM Private Sector Organization Inc. (CPSO), the Caribbean Congress of Labour (CCL), the Caribbean Policy Development Centre (CPDC) and a representative of the Youth in keeping with their commitment to engage with all stakeholders in the integration process.

    Heads of Government congratulated in particular, the youth of the Community on their active engagement and participation in the CARICOM Youth Forum held on 24 June 2022 and agreed that a format similar to that of the Youth Forum would be used for engagement with Civil Society prior to the meetings of the Conference.

     Heads of Government supported the proposal for a Youth Summit to be held in Suriname before the end of 2022.  

    BRITISH VIRGIN ISLANDS

    Heads of Government welcomed the decision of the United Kingdom not to impose direct rule on the British Virgin Islands (BVI), an Associate Member of the Community, but are highly concerned that an Order in Council to impose direct rule on the people of the Territory has been placed on reserve that can be immediately brought into force at the United Kingdom Government’s discretion.

    Heads of Government declared that the imposition of direct rule, and the history of such imposition in the Caribbean, was never intended to deliver democratic governance or to be an instrument of economic and social development of our countries and peoples.

    Heads of Government recognised that the success and modernization of the BVI is due to the effort and initiative of its homegrown leadership.

    Heads of Government stated that the people of BVI and their duly elected representatives must be allowed every opportunity to provide good governance in the country with full transparency and accountability.

    They expressed faith in the leadership of Premier Wheatley and the Government of National Unity and commended their commitment to implement the recommendations for reform as mutually agreed by the BVI and the United Kingdom

    Heads of Government endorsed the UN Special Committee on Decolonization’s (C-24) approved draft resolution on the Question of the British Virgin Islands and will support its adoption at the next session of the UN Fourth Committee.

    They encouraged all parties concerned to approve a C-24 visiting mission to the British Virgin Islands.

    Heads of Government acknowledged that Member States will continue to support the British Virgin Islands’ decolonization process.

    FIFTIETH ANNIVERSARY

    Heads of Government look forward to the Draft Programme for the observance of the Fiftieth Anniversary of the Caribbean Community which will be prepared for their consideration before the end of 2022.

    This will allow for the inauguration of the 50th Anniversary Year in January 2023, with special events at the Thirty-Fourth Inter-Sessional Meeting of the Conference, and the main celebratory event at the 44th Regular Meeting of the Conference in July 2023.  Celebratory events are expected to take place across the Community throughout a 12-month period.

    SPECIAL GUESTS

    UN Secretary-General

    Heads of Government welcomed the United Nations Secretary-General His Excellency António Guterres for an exchange of views. They re-affirmed the importance of multi-lateralism and thanked the Secretary-General for his interest in the Region and his advocacy on issues of critical importance to Member States.

    The Secretary-General stressed that the voice of the Region was very important in the discussions around climate change as the Caribbean was on the front line of the phenomenon.

    Heads of Government welcomed the assurance of his continued support in efforts to obtain debt relief, to reform the International Financial System and towards the use of a Multi-dimensional Vulnerability Index.

    OACPSSECRETARY-GENERAL

    Heads of Government welcomed the presentation of His Excellency Georges Rebelo Pinto Chikoti, the Secretary General of the Organisation of African, Caribbean and Pacific States (OACPS), on addressing the challenges posed by shifts in the current geopolitical environment, climate change, and economic recovery from the COVID-19 pandemic.

    They noted that the new OACPS-EU Partnership Agreement has not yet been signed and that the transitional measures of the Cotonou Partnership Agreement have been further extended to June 2023.

    They emphasized the importance of intra-ACP collaboration and advocacy on the global issue of migration given the wide-spread acts of discrimination and injustice against migrants.
    Heads of Government urged the OACPS to take a leading and active role in supporting CARICOM in its quest for reparations and to obtain redress for slavery and other atrocities committed against persons of African descent.

    They agreed on the need to invest more time and effort in strengthening solidarity and cooperation to develop a common, strong stance in advocating on the issues of reparation and migration at the UN and other international fora.

    MINISTER OF STATE FOR FOREIGN AFFAIRS OF SAUDI ARABIA

    Heads of Government welcomed His Excellency Adel bin Ahmed Al-Jubeir, Minister of State for Foreign Affairs of Saudi Arabia.

    Heads of Government also welcomed the Minister’s suggestion that an institutional framework for engagements at the level of Leaders and Ministers should be established as well as a framework for investment in CARICOM.

    DATE AND VENUE OF THE THIRTY-FOURTH INTER-SESSIONAL MEETING OF THE CONFERENCE

    The 34th Intersessional Meeting of the Conference will take place in The Bahamas in February 2023.

    APPRECIATION

    Heads of Government expressed deep appreciation to the Government and people of Suriname for the generous hospitality received.

  • Webinar: Post-Summit of the Americas Assessments for the Hemisphere: A Caribbean Perspective – July 7

    Webinar: Post-Summit of the Americas Assessments for the Hemisphere: A Caribbean Perspective – July 7

    Join Global Americans and the Caribbean Policy Consortium for a conversation with David Lewis, Amparo Mercader, Richard Feinberg, and Alicia Nicholls. Panelists will discuss their assessments of the IX Summit of the Americas from a regional perspective and compare this summit to summits past. Georges A. Fauriol will offer opening remarks, and Guy Mentel will moderate the conversation.

    Date: Thursday, July 7
    Time: 10:30 A.M. EDT
    Location: Virtual (link will be sent to registrants prior to event)

    Registration

    Please register for this event here.

  • Caribbean Trade and Development News Digest – June 19-25, 2022

    Caribbean Trade and Development News Digest – June 19-25, 2022

    Welcome to our Caribbean Trade and Development News Digest covering the week of June 19-25, 2022! We are pleased to bring you the major trade and development news headlines and analysis from across the Caribbean Region and the world from the past week. We do hope you enjoy this week’s edition!

    THIS WEEK’S HIGHLIGHTS

    This week Commonwealth Heads of Government met for the first time physically in four years in Kigali, Rwanda under the theme “Delivering a Common Future: Connecting, Innovating, Transforming”. They voted, albeit by a narrow margin, in favour of a second term for incumbent Secretary General Baroness Patricia Scotland. The final communique, leaders’ statement and other declarations can be accessed here.

    UNCTAD has released a study on COVID-19 and trade and development, as well as the lessons learnt. Have a read of the report here. An agreement in principle was reached on a modernised Energy Charter Treaty.

    So what’s happening this coming week? Leaders of the Group of 7 (G7) countries are currently meeting in Germany and have so far announced a ban on the importation of Russian gold as part of a tightening of sanctions against Russian aggression in Ukraine. On June 29th, the Trade Facilitation Agreement, the first major multilateral trade agreement agreed by WTO members, celebrates its fifth year anniversary.

    This week I had the pleasure and honour of being a speaker at the Institute of Chartered Accountants of the Caribbean (ICAC) 39th Annual Conference speaking on the topic “COVID-19 and Businesses: Reflections, Impact and Options“. Read my latest blog article based on my presentation here.

    REGIONAL NEWS

    Belize Chamber BCCI President says Trade License Bill in current form is flawed

    LoveFM: The Government of Belize has put its plan for national trade license reform on hold. This came after several sectors of society, including artists and DJs, complained that the proposed legislation was unfair and badly timed. Read more

    China-Guyana, Bilateral Trade Increased To US$710 Million Last Year

    MENAFN: China’s Ambassador to Guyana, Guo Haiyan, said Monday, that bilateral trade between Guyana and China has grown steadily in recent years, increasing to some US $710 million in 2021 compared to US $500 million during the previous years. Read more

    Guyana local agro-processors to engage Antiguan buyers

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    Bajans spent millions on Guyanese products at Agrofest

    Newsroom: There was an overwhelming interest in the locally-made products at the recently concluded agro-fest in Barbados and Head of the Guyana Manufacturing and Services Association (GMSA) Rafeek Khan said that there is now a revitalised interest in improving transportation between the two countries. Read more

    Britain thanks Windrush Caribbean migrants for their contribution to the UK

    Caribbean National Weekly: Britain Wednesday paid tribute to Windrush Caribbean immigrants by unveiling a national monument to celebrate their work in rebuilding the country after World War II. Read more

    UN SG to attend CARICOM Conference

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    Barbados opens CARICOM diplomatic mission in Kenya

    Caribbean National Weekly: Barbados Foreign Affairs and Foreign Trade Minister, Dr. Jerome Walcott, has officially opened the Caribbean Community (CARICOM) diplomatic mission in Nairobi making it the first for the 15-member regional integration movement on the African continent. Read more

    Jamaica Tourism Minister Suggests Single-Visa Regime For CARICOM

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    Beyond CARICOM, Guyana registers hemispheric support for threats to food security

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    INTERNATIONAL NEWS

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    Commission unveils new approach to trade agreements to promote green and just growth

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    Food security: EU to step up its support to African, Caribbean and Pacific countries in response to Russia’s invasion of Ukraine

    European Commission: The European Commission adopted today a proposal to mobilise €600 million from the reserves of the European Development Fund to address the current food security crisis aggravated by Russia’s invasion of Ukraine. These funds will support African, Caribbean and Pacific (ACP) countries to cope with the dire situation, through humanitarian assistance (€150 million), sustainable production and resilience of food systems (€350 million) and macro-economic support (€100 million). Read more

    India, European Union resume talks for free trade agreement after over eight years

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    UK PM announces major trade initiatives to capitalise on Commonwealth Advantage

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    UK appoints new trade commissioner to lead UK-Africa trade and investment relationship

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    Rwanda: SG Launches Digital Trade Hackathon

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    USTR Tai calls U.S. tariffs on Chinese goods ‘significant’ leverage

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    US Farmers Welcome Indo-Pacific Economic Framework

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    Russia and China are brewing up a challenge to dollar dominance by creating a new reserve currency

    Business Insider: Russia is ready to develop a new global reserve currency alongside China and other BRICS nations, in a potential challenge to the dominance of the US dollar. Read more

    In unstable times, Jacinda Ardern hopes European powers can avert further crises

    Stuff.co.nz: New Zealand Prime Minister Jacinda Ardern will look to lock in a free trade agreement and push Western leaders to reduce the impacts of climate change in the Pacific in a series of meetings across Europe this week. Read more

    STRAIGHT FROM THE WTO

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  • COVID-19 and MSMEs: Two and a half years on

    COVID-19 and MSMEs: Two and a half years on

    Alicia Nicholls

    Shortly after the World Health Organisation (WHO) declared the novel coronavirus disease (COVID-19) a pandemic in March 2020, I had authored a blog piece about the outbreak’s possible impact on micro, small and medium-sized enterprises (MSMEs). I had also posited some options for MSMEs to help weather the COVID-19 storm. On June 23, I had the honour and pleasure of presenting on the topic “COVID-19 and Business: Reflection, Impact and Options” at the 39th Annual Conference of the Institute of Chartered Accountants of the Caribbean (ICAC). It is in this vein, and in recognition of the upcoming United Nations’ MSME Day on June 27th, that this ‘update’ article reflects on the impact of the COVID-19 pandemic on MSMEs two years on. Specifically, it discusses how businesses have pivoted and proposes some further options for weathering these increasingly turbulent economic headwinds.

    Setting the context

    The first confirmed COVID-19 case in a Caribbean Community (CARICOM) Member State was in Jamaica on March 10, 2020. Since then Caribbean countries, like other countries around the world, have undergone at least four or five waves of infection fueled by the initial virus and subsequently by variants.  As of June 21, 2022, there have been over 750,000 confirmed COVID-19 cases and over 13,400 confirmed deaths in CARICOM Member States according to data collected from the WHO’s COVID-19 Dashboard.

    Since the start of the pandemic, Governments have had to maintain a delicate balance. This involved implementing measures to flatten the COVID-19 curve to reduce infection and hospitalization rates, but also with the knowledge that these measures would dampen economic activity, especially tourism, the bread and butter of most of our regional economies.  At various stages and to varying degrees, governments both regionally and internationally, implemented curfews and stay-at-home orders, lockdowns, mask mandates, travel restrictions and temporary border closures. The most stringent measures were taken particularly in the first wave of the virus when we were still learning about the virus and how to cope with it and prior to the availability of an effective vaccine.

    Governments formulated protocols around social distancing requirements, temporarily banning certain ‘close contact’ activities or placing limits on the numbers of patrons for these activities. In 2020 and 2021 many Caribbean Governments also made the difficult decision to cancel their annual festivals or carnivals, which are major money earners and tourist draws, due to the risk of having such a large number of patrons. Save for some exceptions, most Caribbean countries avoided vaccine mandates and took a more persuasive approach to vaccine uptake.

    These government public health measures, while necessary for managing the epidemiological impact, negatively affected firms. In a very informative Interamerican Development Bank (IDB) study, Acevedo et al (2021) found a positive correlation between social distancing policies and the proportion of firms surveyed reporting a drop in sales. Though noting that this pattern was viewed across countries worldwide, the correlation, they argued, seemed to be stronger for countries in the Caribbean. Similarly, the International Trade Centre (ITC) in an earlier study found that 76% of surveyed firms providing accommodation and food services stated that full or partial lockdowns had strongly affected their business operations (ITC 2020).

    Business Impact  

    Two years into the pandemic, we now have a pretty useful set of data from the World Bank’s Enterprise Survey and its COVID-19 business pulse survey on how firms have been impacted globally. Based on data from 120,000 firms in over 60 countries, the World Bank found that on average, companies’ sales dropped 27% in October 2020-January 2021 from pre-pandemic levels, after plunging 45% in April to September.

    Regionally, using data from the IDB’s “Innovation, Firm Performance and Gender (IFPG)” Survey, Acevedo et al (2021) described as “substantial” the impact of the pandemic on Caribbean firms surveyed. They observed that “more than 90% of Caribbean firms surveyed reported a negative impact and a 33% on average reduction in sales” and that firms in the category of “services and retail” reported the largest decrease in sales and capacity utilization. Similar studies on the business impact of the COVID-19 pandemic have also been conducted in Suriname (Khadan 2020) and Jamaica (Tennant 2021).

    COVID-19 has had a very differentiated impact on businesses, that is, not all businesses were impacted negatively or in the same way. Globally, those businesses in so-called ‘high or close contact’ sectors– such as the tourism, hospitality, entertainment and retail sectors – were among the most impacted, especially due to the tourism shortfall and social distancing requirements (ITC 2020; Bartik et al 2020). Women and youth-led/owned firms appeared to be more significantly affected (ITC 2020). This is not because of their quality of leadership but because of the structural barriers many women and youth-led/owned firms usually face, including greater difficulty in accessing finance.

    An interesting Financial Times article on winners and losers from the pandemic showed that at January 2022 several large companies like Apple, Alphabet and Microsoft had seen significant increases in their market valuations since the start of the crisis. However, other large firms also saw non-negligible reductions. That being said, MSMEs were more significantly impacted than larger firms. In its COVID Business Impact Survey, the ITC found 55% of SMEs indicated that that the pandemic had “strongly affected” their business operations and that one out of four (26%) micro firms risked shutting down permanently within three months, whereas less than one in ten (9%) large firms were in a similar position.

    Many MSMEs at the start of the pandemic lacked functional websites or e-commerce capability or even delivery which meant they were often at a disadvantage to pivot to online shopping and service delivery. Indeed, the COVID-19 pandemic exacerbated some of the issues facing businesses, especially small businesses, such as cashflow difficulties and access to finance. Other impacts included reduced sales or loss of access to local/international markets, while also incurring increased costs, such as the need to purchase personal protective equipment (PPE) and pay for more frequent sanitization of work spaces.

    Many MSMEs were affected and continue to be impacted by supply chain disruptions. Many faced price increases from suppliers and tighter supplier payment terms, as well as longer waiting times for supplies as suppliers prioritized orders from larger purchasers.  Some businesses also faced increased costs of inputs, especially due to global supply chain disruptions and higher commodity prices.  Some businesses faced productivity losses due to staff layoffs, reduced hours and in some cases there were unfortunately business closures.

    How have businesses pivoted?

    Businesses have had to do lots of soul-searching, hunkering down and in many cases, belt-tightening. The fundamentals of sound leadership, teamwork, evidence-based business planning were key, and those which were in the fortunate position to quickly adapt through the use of technology were among those who weathered the best so far.

    Businesses implemented firm-specific COVID-19 protocols informed by national guidelines. They also looked for new clients/markets for their products. JAMPRO (the Jamaican export and investment promotion agency) was able to find new markets for Jamaican mango exporters. In some cases, businesses had to source from newer suppliers either due to supply chain disruptions or because of more favourable payment terms offered by other suppliers.

    Some new businesses sprung up to cater to new areas of demand, such as pickup and delivery. Many retailers and restaurant businesses added online shopping or booking and delivery service, which were particularly useful during the lockdowns and have been continued. Regional rum manufacturers started manufacturing and also donating rubbing alcohol and hand sanitizers when there was a shortage of these products. One of my favourite restaurants no longer gives patrons physical menus. Patrons instead use the QR scanner on their phone to scan the QR code the restaurant provides to access the menu online using the restaurant’s wifi.

    Other business responses included implementing work from home policies and adopting technology to facilitate this remote working. This led to some firms engaging in downsizing their physical space.

    While CARICOM governments lack the fiscal largesse to offer the extensive stimulus packages which larger countries were able to finance, they however provided various forms of support to businesses. These included in some cases special grants,  deferral of taxes and social security contributions, tax debt forgiveness, concessional loans and grants, temporary loan moratoria, ‘compensation’ for lockdowns, and training opportunities. However, businesses in the informal sector did not qualify for many of these support measures as eligibility often required that the applicant should be a registered business or incorporated and be able to show financial statements for a defined period. A key lesson coming out of this is that governments must make it easier for businesses to formalize. Behind every business are people with families to feed and support and where a business fails, that is at least one person who has lost an income and the ability to support herself/himself and family.

    Adapting to the new normal

    The term “new normal” has become ubiquitous in our parlance in recognition that while the worst of the pandemic appears to have passed us, COVID-19 will remain with us for quite some time. With an increase in the vaccinated population and lower infection numbers, most governments have now rolled back or even eliminated completely their Covid restrictions to kickstart economic recovery. However, the COVID-19 impact on the economy has been compounded by the Russia/Ukraine war and the sanctions imposed by the international community in response to Russia’s actions. This has further disrupted global supply chains, and led to spiralling inflation globally, higher commodity prices and product shortages and growing workers’ demands for higher wages to offset the soaring cost of living. The war has prompted the International Monetary Fund (IMF) to slash its global growth forecasts for 2022 and 2023 in its April World Economic Outlook. How can businesses continue to adapt in these increasingly turbulent times?

    First, innovation, as cliché as it sounds, is pivotal for businesses to build competitiveness. This involves prioritising research and development and market research and leveraging technology to improve day-to-day operations and customer experience. Companies worldwide are also relooking working modalities. In the UK, for example, over seventy businesses spanning a variety of industries are participating in a pilot study on a four-day working week with no cut in workers’ pay for the reduced hours.

    Second, many business support programmes appear to be under-used for a variety of reasons, including businesses’ lack of awareness of their existence or perception of their usefulness in some cases. Where possible, businesses should be on the look out for available business support and assistance offered by export promotion agencies and other business support organisations.

    Third, businesses should continue to explore new product offerings to meet new and growing areas of demand. For example, given the growing food security issues intensified by the Russia-Ukraine conflict, there are opportunities, such as, of expanding the availability of wheat flour substitutes, such as breadfruit and sweet potato flour.

    Fourth, businesses should continue to expand their markets. CARICOM businesses have preferential access to several markets thanks to the trade agreements the Community has concluded with Colombia, Costa Rica, the Dominican Republic, the European Union, the United Kingdom and Venezuela. They also have access to the United States and Canadian markets for most goods under unilateral trade preference regimes offered by those governments. Businesses which are not yet exporting and are looking to do so should take advantage of the export support programmes, such as training, workshops and other technical assistance and capacity-building programmes offered by regional export development agency Caribbean Export and national export promotion agencies and business support organisations. Additionally, sourcing locally and regionally where possible, through making use of our trade arrangements with Latin American countries, will help with building supply chain resilience.

    Fifth, cyber-security is one area on which businesses often skimp to their detriment. With more of their operations being conducted through digital means, businesses are now more exposed to hacking, malware and data breaches which, when they occur, result in a very embarrassing and dangerous situation for a business and reduces client confidence and trust.

    Sixth, if there is one thing that COVID-19 has made clear is that MSMEs need to manage risks, ensuring they have updated business continuity plans and appropriate insurance coverage.   

    Seventh, COVID-19 will be with us for some time. We know that business must go on and we must live with COVID-19, but protecting the health of employees and customers must be paramount and never sacrificed for profit.  

    Lastly, while survey fatigue is indeed a real problem, it is imperative that businesses are more open to sharing information with governments as evidence-based policy making can only be successful if there is up-to-date data. Governments cannot offer suitable business support without timely and accurate data on which to base their measures. There is also the need for continued and greater business-academia linkages such as greater internships, mentorship programmes, data-sharing and partnerships to ensure graduates are workforce ready and to assist businesses with research.

    In closing, as I had predicted in my previous article, COVID-19 has been a significant challenge for businesses, both regionally and globally. Not all businesses have been impacted the same way but MSMES have generally been more negatively impacted than larger firms. Businesses have been finding ways to adapt. Those which had the greatest capacity to incorporate technology into their daily operations and to serve customers appeared to be the ones which were better able to manage. Although we appear to be nearing (hopefully) the tail end of the pandemic, we are not yet out of the woods. Moreover, several storm clouds still loom ahead. MSMEs must continue to pivot in order to not only survive but thrive in this ‘new normal’.

    Alicia Nicholls, B.Sc., M.Sc., LL.B is an international trade specialist and founder of the Caribbean Trade Law & Development Blog. These remarks were part of an address at the 39th Annual Institute of Chartered Accountants of the Caribbean (ICAC) Virtual Conference. The author takes this opportunity to thank all frontline healthcare workers for their yeoman’s service and expresses condolences to all persons who have lost a loved one to this virus.