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  • Belize v Trinidad & Tobago: Caribbean Court of Justice dismisses claim for lack of evidence

    Belize v Trinidad & Tobago: Caribbean Court of Justice dismisses claim for lack of evidence

    Alicia Nicholls

    In its ruling delivered on February 1, 2022, the Caribbean Court of Justice (CCJ) has dismissed the original jurisdiction claim filed by Belize against Trinidad & Trinidad over the latter’s alleged failure to apply the Common External Tariff (CET) on extra-regional imported brown sugar.

    In its claim filed on September 30, 2020, Belize contended that Trinidad & Tobago had over the period November 2018-July 2020 failed to apply the CET rate of 40% on extra-regional imported brown sugar from Honduras and Guatemala. This, Belize argued, had adversely impacted prices and sales made by Belize Sugar Industries Ltd, a State-owned entity which exports sugar to Trinidad & Tobago. In light of this alleged breach by Trinidad & Tobago of the Revised Treaty of Chaguaramas, Belize sought declarations and damages.  Inter alia, Trinidad & Tobago argued in its defense that it had not allowed for the importation of brown sugar from Guatemala and Honduras without applying the CET of 40% on that item.

    In dismissing Belize’s claim, the CCJ cited “severe shortcomings” in the evidence offered by Belize, in respect of the alleged failure of Trinidad and Tobago to apply the CET, and that these shortcomings “were not cured by reference to circumstantial evidence”.

    In its nearly fifty page judgment, the CCJ also took time to reaffirm and reiterate the importance of the obligation on Member States to impose and maintain the CET on the importation of extra-regional goods. Simply put, a CET refers to the uniform tariff rates applied by members of a customs union against imports from third countries, that is, non-parties to the customs union. Such a measure protects the exports of the members of the customs union within the union and aim to make them more competitive vis-à-vis products outside the customs union. Article 82 of the RTC requires member states to establish and maintain the CET, while Article 83 outlines the only ways in which the CET on an item may be altered or suspended.

    Citing its previous case law on the matter, the CCJ emphasized that the CET was a “fundamental pillar” in the establishment of the CARICOM Single Market and Economy (CSME) and its importance in encouraging and promoting the production of goods within the community.

    With regard to the specific case at hand, the CCJ noted at paragraph 122 of the judgment as follows:

    “In the present circumstances, this Court re-emphasises the importance of maintaining the CET especially in respect of a product such as brown sugar which is of demonstrable importance to Member States such as Belize which manufactures that product. No one disputes that Belize has made very significant investment in its agricultural sector in general and in sugar cultivation and production specifically. The CET does not guarantee producers of sugar in Belize an assured market, but those producers are entitled to the protection of the market that the tariff is intended to provide.”

    Additionally, the CCJ went on to urge the Community “to superintend the conclusion of the Monitoring Mechanism for Sugar as quickly as possible to ensure that the benefits intended to ensure to the regional sugar producers are not frustrated and impaired”.

    The CCJ in its original jurisdiction has compulsory and exclusive jurisdiction to hear and determine disputes concerning the interpretation and application of the RTC between Member States parties and between the Member States parties and the Community.

    The full judgment may be read here.

  • Caribbean Trade and Development News Digest – January 23-30, 2022

    Caribbean Trade and Development News Digest – January 23-30, 2022

    Happy New Year to all readers! Welcome to our first Caribbean Trade and Development News Digest for the year, covering the week of January 23-30, 2022! We’re back from our much needed and restful extended holiday hiatus and 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.

    The year has started amidst much uncertainty with escalating geopolitical tensions (e.g: US/Russia over Ukraine) and the spread of the Omicron variant of COVID-19, global supply chain disruptions, worsening climate concerns, lingering Brexit issues and longstanding issues to be resolved in the WTO among the issues we’ll be following this year.

    We do hope you enjoy this week’s edition!

    THIS WEEK’S HIGHLIGHTS

    The Second Colombia-CARICOM summit took place on January 28, 2022. The Declaration of Barranquilla coming out of the summit may be accessed here.

    A recently released joint study by the World Bank and the WTO highlighted the key role played by trade in reducing poverty but noting that further measures are needed to support developing countries’ use of trade as a tool for growth. Read more here.

    In its annual report entitled ‘Preliminary Overview of the Economies 2021’, ECLAC has called 2022 a year of major challenges for growth, job creation and tackling the pandemic’s social toll. Read more here.

    His Excellency Paul Kagame, President of the Republic of Rwanda, and Commonwealth Secretary-General, The Rt. Hon. Patricia Scotland, have today announced the week of 20 June 2022 as the new date agreed with member countries for the Commonwealth Heads of Government Meeting (CHOGM). Read more here.

    REGIONAL NEWS

    Brazil wants to team Guyana and Suriname oil and gas in a regional energy corridor

    Mercopress: Brazil is betting strongly to become the main player in the development of oil and gas production in its northeast corner, where the state of Amapá shares proximity with French Guiana, Suriname, and Guyana, these two of which are set to become significant players in the hydrocarbons business. Read more

    Belize co-chairs successful Colombia-CARICOM Ministerial Summit

    BBN: Оn Јаnuаrу 28, Міnіѕtеr оf Fоrеіgn Аffаіrѕ оf Веlіzе Еаmоn Соurtеnау аnd Соlоmbіаn соuntеrраrt Маrtа Luсíа Rаmírеz со-сhаіrеd thе ѕесоnd Соlоmbіа-САRІСОМ Міnіѕtеrіаl Ѕummіt іn Ваrrаnquіllа, Соlоmbіа. Read more

    Dominica’s remote work program named best in the Caribbean

    Loop News Caribbean: Dominica’s digital nomad programme ranked 28th in the world and first in the Caribbean. Read more

    Export Barbados assists breadfruit exporters

    Barbados Today: Export Barbados (BIDC) has come to the assistance of breadfruit exporters Shawn Holder of Holder’s Food & Exports and Erasmus Alfred of E&C Marketing. Read more

    Caribbean nation of Saint Vincent exports first cargo of medical cannabis

    Reuters: Saint Vincent and the Grenadines has exported a cargo of 110 pounds (49.8 kilos) of medical cannabis after receiving a license for export to Germany, according to official announcements and a local official familiar with the matter. Read more

    Jamaica to sign MOU on tourism development with Spain

    Travel Daily News: Jamaican Tourism Minister, Hon. Edmund Bartlett, has announced that Jamaica and Spain will craft a memorandum of understanding to collaborate on various aspects of tourism development and economic transformation. Read more

    Duque wants Caricom to be of help in cases of natural disasters

    Mercopress: Colombian President Iván Duque Friday announced his intention to create a Regional Solidarity Fund, in order to serve the population in terms of health and in case of natural disasters. He made those remarks at the II Ministerial Summit of the Caribbean Community in Barranquilla. Read more

    INTERNATIONAL NEWS

    AfCFTA members conclude negotiations on rules of origin to enhance free trade

    Xinhua: Member states of the African Continental Free Trade Area (AfCFTA) concluded on Saturday their negotiations on rules of origin, a move expected to further reduce tariffs on original goods within the African continent. Read more

    Navigating Trade & Business One Year Post Brexit

    GT: The economic and social dislocation caused by the pandemic has made it difficult sometimes to distinguish between the impact of Brexit only versus that of COVID 19. However, this article seeks to describe, as far as possible, how Brexit has affected the business and regulatory environment across the full range of areas covered by Steptoe and Johnson practices so far, and to identify issues of potential future concern for companies. Read more

    Brexit, two years on – so far, so bad

    Investment Monitor: 31 January marks the two-year anniversary of the UK’s official withdrawal from the EU. Investment Monitor examines how hard Brexit has hit the UK economy so far. Read more

    OECD takes first step in accession discussions with Argentina, Brazil, Bulgaria, Croatia, Peru and Romania

    OECD: The OECD Council decided today to open accession discussions with six candidates to OECD Membership – Argentina, Brazil, Bulgaria, Croatia, Peru and Romania. This follows careful deliberation by OECD Members on the basis of its evidence based Framework for Consideration of Prospective Members and the progress made by the six countries since their first respective requests for OECD membership. Read more

    Charts: China promised Trump it would buy an additional $200 billion worth of US exports — but only met 60% of the trade deal target

    Business Insider: China failed to meet its side of the bargain in a trade deal it struck with former President Donald Trump in January 2020. Read more

    U.S. lawmakers urge USTR to expand tariff exclusions on Chinese goods

    Reuters: A bipartisan group of more than 140 U.S. lawmakers called on U.S. Trade Representative Katherine Tai to immediately revive and expand a tariff exclusion process on Chinese goods to help U.S. manufacturers. Read more

    The 5G-airlines crisis was mostly averted. Here’s what happened – and what we still don’t know

    CNN: Potentially abysmal air travel interruptions were narrowly avoided this week when wireless carriers made a last-minute change to their planned 5G rollout in response to fears that new cell service towers could interfere with a key component on passenger jets that allows them to safely land in low visibility conditions. Read more

    Taiwan, Canada to start talks on investment agreement

    Reuters: Taiwan and Canada have agreed to start talks on an investment protection agreement, both governments said on Monday, part of the Chinese-claimed island’s efforts to boost ties with fellow democracies in the face of growing pressure from Beijing. Read more

    Huge uncertainties still surround US trade policy

    East Asia Forum: Donald Trump’s presidency signalled a decisive US retreat from free and open trade and leadership of the multilateral trading system that had fostered unprecedented trade and economic growth for over 70 years. Read more

    EU initiates WTO dispute complaint regarding Chinese restrictions on trade with Lithuania

    WTO: The European Union has requested WTO dispute consultations with China concerning alleged Chinese restrictions on the import and export of goods, and the supply of services, to and from Lithuania or with a link to Lithuania. The request was circulated to WTO members on 31 January. Read more

    A New Trust to Help Countries Build Resilience and Sustainability

    IMF: A proposed $50-billion trust fund could help low-income and vulnerable middle-income countries build resilience to balance of payments shocks and ensure a sustainable recovery. Read more

    Global Shipping Costs Are Moderating, But Pressures Remain

    IMF: Shipping costs soared over the past year as consumers unleashed pent-up savings to buy new merchandise while the pandemic continued to snarl the world’s supply chains. Container rates have more than quadrupled since the start of the pandemic, with some of the biggest gains concentrated in the first three quarters of last year. Read more

    Canada joins Mexico’s official complaint arguing U.S. violating trade pact over auto parts provision

    CBC: Canada is joining Mexico’s official complaint today requesting a dispute settlement panel to resolve a claim that the U.S. is violating the new NAFTA by insisting on a stricter interpretation of a key provision on auto parts. Read more

    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:

  • Statement by CARIFORUM Council of Ministers on Ex Post review of CARIFORUM-EU EPA

    Press release: The Council of Ministers of CARIFORUM wishes to put on record, the Region’s concerns with a number of ‘findings’ of the Study commissioned by the European Commission, the “Ex-post Evaluation of the EPA between the EU and its Member States and the CARIFORUM Member States”. As a region, we are particularly troubled that in spite of the detailed concerns raised by our senior officials in writing, this document remains in the public sphere, including on the official site of our partner under this Agreement. It is being regarded by some as an accurate assessment of the operation of the Agreement.

    The Report claims that the objective of the evaluation was to determine the extent to which the CARIFORUM-EU EPA has been implemented. The Report also claims that the evaluation reflects equally, the state of implementation of the EPA by the two Parties: CARIFORUM and the EU. In reality, however, the analysis used was not equally robust for both Parties, resulting in glaring weaknesses in the evaluation itself.

    Specifically, the evaluation and the Report appear to have approached the implementation efforts of the EU Party with a presumption of compliance. The evaluation shows scant regard for CARIFORUM’s concerns, including those regarding procedural and regulatory barriers to the EU market, such as the EU visa requirements, which continue to impact effective mode 4 access to the EU market, especially for cultural and professional services.

    On the other hand, there are numerous instances of scathing but unfounded, general statements which portray a general negative view of CARIFORUM and a presumption of non-compliance by CARIFORUM with its implementation obligations. One example of this is the ‘finding’ that several CARIFORUM States do not have an independent judicial system that can provide preliminary injunctions and final rulings regarding intellectual property rights. There are also instances where the authors, in the absence of evidence, resort to asserting possible non-compliance.

    In addition to being patently imbalanced, the number of inaccuracies in the Report, at the expense of CARIFORUM, is unacceptable. In the absence of any specific analysis or provision of evidence to support, CARIFORUM is branded non-compliant, even in circumstances where the observations are not applicable to all CARIFORUM States. For example, the Report states in bold text that ‘several’ CARIFORUM countries maintain export duties and quantitative restrictions, but goes on to identify two States where restrictions may exist.

    The Report also boasts numerous examples of conclusions being drawn, and findings presented which are not supported by the literature/data review in the evaluation itself. For instance, even where the Report states clearly that the relevant information was not received and/or reviewed, there was yet the pronouncement of non-compliance or “possible” non-compliance by CARIFORUM.

    The Council of Ministers of CARIFORUM acknowledges that the Study was conducted by independent consultants on behalf of the European Commission, and that CARIFORUM Senior Officials engaged both the Commission and the Consultants to have issues addressed. However, it is important that CARIFORUM places its position on record, and more so, as the Report is being inaccurately cited in some quarters as “the joint five-year review mandated under the CARIFORUM-EU EPA.” In actuality, the Second-Five Year Review of the CARIFORUM-EU EPA, which was scheduled to take place in 2020 had to be postponed on account of the COVID-19 pandemic and the two Sides are in consultation on its scheduling later this year. Indeed, Senior Officials from both sides continue to be engaged in the preparatory work at the technical level.

    CARIFORUM looks forward to the second review of the CARIFORUM-EU EPA, in particular given the key finding of the first review that CARIFORUM States had not yet started to reap the anticipated benefits of the Agreement. In this regard, CARIFOURM hopes that the upcoming Review will address the need for the EU to build greater awareness of the EPA among EU operators, including border/regulatory agencies, to curtail the barriers experienced by CARIFOURM States, particularly for the trade in services.

    End Note: The commitment to engage in the five-yearly reviews of the EPA is found in the Joint Declaration (EPA Article 5) under which the Parties have undertaken to comprehensively review the EPA every five years in order to determine the impact of the Agreement, including the costs and consequences of implementation.

  • Caribbean Trade and Development News Digest – October 31 – November 6, 2021

    Caribbean Trade and Development News Digest – October 31 – November 6, 2021

    Welcome to the Caribbean Trade and Development News Digest for the week of October 31-November 6, 2021! We are pleased to bring you the major trade and development news headlines and analysis from across the Caribbean Region and the world from the past week.

    THIS WEEK’S HIGHLIGHTS

    The United Nations Framework Convention on Climate Change (UNFCCC) Twenty-sixth Conference of the Parties (COP26) is underway in Glasgow, Scotland, UK. Read this round-up report by The Guardian on what (little) has been achieved so far.

    European Commission President von der Leyen and United States President Biden agreed on October 31 to start discussions on a Global Arrangement on Sustainable Steel and Aluminium. Read more

    The Caribbean Court of Justice this week began hearing claims by Belize that Trinidad & Tobago failed to apply the common external tariff (CET) duty of 40% on brown sugar imported from outside of the Caribbean Community (CARICOM) from November 2018-June 2020 in breach of the Revised Treaty of Chaguaramas, a claim which Trinidad & Tobago denies. The hearing was live streamed and the recording may be watched here.

    This week it was my pleasure and honour to be one of the key note speakers at the 2nd Annual Caribbean Future Summit 2021 organised by Global Startup EcoSystem where I spoke on “Disruptive Human Capital Development and Trade in a Post-Pandemic Era”. Other key note speakers included Jamaican Minister Hon. Audley Shaw, Barbadian Minister Hon. Dwight Sutherland, as well as CEOs, entrepreneurs and influencers from across the Caribbean. I thank the organisers for the kind invitation and for a very well-organised and interesting conference.

    REGIONAL NEWS

    Belize no longer seeking compensation from Trinidad and Tobago over sugar imports tiff

    Newsday: Belize will no longer seek compensation from Trinidad and Tobago for allegedly failing to apply the common external tariff (CET) tax on brown sugar imported from outside the region from November 2018-June 2020. Read more

    Belize Resumes Shipment of Corn to Guatemala Under Revitalized PSA

    Channel 5 News: A consignment of grain destined for Guatemala City departed from the Cayo District this morning, signaling the resumption of trade in corn between Belize and Guatemala. Read more

    Jamaican pineapple farmers gain access to Barbados

    Jamaican Observer: A release from the Ministry of Agriculture and Fisheries outlined that “With effect from October 29, 2021, Jamaica now has access to export pineapples (fruit) commercially to Barbados.” Read more

    Diaspora making strong contribution to Jamaica’s recovery

    JIS: Minister of Industry, Commerce, Agriculture and Fisheries, the Hon. Audley Shaw says Jamaica has started to show strong signs of recovery due to relations with the diaspora and retrievals in the services of goods-producing industries. Read more

    Barbados may trade in building materials with Guyana – Duguid

    Barbados Today: Barbados is seeking assistance from Guyana in the provision of certain types of construction materials to build houses here, Minister of Housing Dr William Duguid said on Monday. Read more

    Barbados still top choice for Canadian investors

    Barbados Today: Barbados continues to be a top choice jurisdiction for investment by Canadians. This assurance has come from High Commissioner to Barbados and the Eastern Caribbean, Lilian Chatterjee. During her recent address to the Global Business Week 2021 Conference, hosted by BIBA, the Association for Global Business in Barbados and its strategic partners, High Commissioner Chatterjee noted that the island was still within the top 5 jurisdictions in the world for Canadian investment. Read more

    Trade has role in assisting with climate change solutions

    Barbados Today: Trade has to be part of the climate change solution and countries need to cooperate on how to achieve adaptation and mitigation instead of working in silos. Read more

    CDB Proposes a Resilience-Adjusted GNI Measure for Small Island Developing Economies to Access Concessional Finance

    CDB: The Caribbean Development Bank (CDB) has proposed a resilience-adjusted Gross National Income (GNI) measure for Small Island Developing States (SIDS) to access concessional finance. Read more

    INTERNATIONAL NEWS

    Key Takeaways from COP26 Week 1

    CTV: All eyes have been on Glasgow, Scotland as the first week of the UN climate conference known as COP26 draws to a close. The conference was delayed by a year because of the coronavirus pandemic, and is set to run until Nov. 12. Read more

    China’s trade with world surges ninefold after 20 years in WTO

    Nikkei Asia: In the 20 years since joining the World Trade Organization, China has increased its foreign trade by ninefold, vaulting ahead of the U.S. to become the top player, but little progress has been made on reforming entrenched state-owned enterprises. Read more

    USTR Tai and Commerce Minister Goyal to take ‘comprehensive look’ at bilateral trade ties

    Economic Times: US Trade Representative Katherine Tai and Union Commerce and Industry Minister Piyush Goyal have agreed to take a “comprehensive look” at ways to expand the bilateral trade ties and also shared perspectives on how to reach “meaningful outcomes” at the upcoming WTO Ministerial Conference. Read more

    EU could shelve Brexit trade deal if UK triggers article 16, Irish minister warns

    The Guardian: Simon Coveney accuses British government of ‘deliberately forcing breakdown’ in negotiations over Northern Ireland. Read more

    Biden eyes Western front to China in EU tariff agreement

    The Hill: President Biden has ramped up efforts to repair the U.S.-European Union trade relationship and form a united Western front against China with a recent deal to ease Trump-era steel and aluminum tariffs. Read more

    China’s Oct trade surplus with the United States at $40.75 bln

    Reuters: China’s trade surplus with the United States was $40.75 billion in October, Reuters calculations based on customs data showed on Sunday, down from $42 billion in September. 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: