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  • CARICOM Private Sector Organisation and Caribbean Community sign MOU to support Regional Growth and Development

    CARICOM Private Sector Organisation and Caribbean Community sign MOU to support Regional Growth and Development

    PHOTO CAPTION:  CARICOM Secretary-General Ambassador Irwin LaRocque (l) and CPSO Chairman Mr Gervase Warner signing the MOU

    GEORGETOWN, Guyana, December 4, 2020 – The CARICOM Private Sector Organisation on Thursday signed a Memorandum of Understanding with the Caribbean Community to cooperate on the full implementation of the CARICOM Single Market and Economy (CSME), regarded as the most viable platform for supporting the Region’s growth and development.

    CARICOM Secretary-General Ambassador Irwin LaRocque signed on behalf of the Community and Chairman Mr Gervase Warner signed for the CPSO in the virtual ceremony.

    The CPSO is the latest Associate Institution of CARICOM, having been so designated on the 29 October 2020. Its status is recognition of the need for more structured engagement between the Community and the Private Sector and Labour to achieve economic development and full realisation of regional integration.

    Barbados Prime Minister Mia Mottley, the Lead Head of Government in the CARICOM Quasi-Cabinet for the CSME, laid the foundation for the CPSO’s formation at a meeting of regional private sector officials in Barbados in June 2019.  The private sector representatives were subsequently invited, along with representatives of the regional labour movement, to the CARICOM Heads of Government Meeting in July 2019, at which they signalled that progress was being made towards the establishment of the regional body.  They confirmed to the Heads of Government at their 31st Inter-sessional Meeting in Barbados in February 2021, that the CPSO had been established as a non-profit organisation with Headquarters in Barbados.

    The CARICOM Secretary-General, in congratulating the CPSO, said while the CARICOM Treaty provides the administrative framework to create the single market and economy, it is the regional stakeholders, such as the private sector who will give practical meaning to it by making use of the opportunities provided.

    He noted that significantly, the MOU gives the CPSO Observer Status at Meetings of the Community’s Organs and Bodies on matters related to the CSME. It also creates a follow-up mechanism, through a joint technical committee drawn from the CARICOM and CPSO Secretariats. The Committee is mandated to meet quarterly to keep track of the programme and to review and report back to the CARICOM Secretary-General and the CPSO Chairman and subsequently to the CARICOM Heads of Government.

    The Secretary-General noted the pro-active efforts of the CPSO, which has already found itself on regional committees established by the Community including; the Committee on Mergers and Acquisitions policy; the E-Commerce Committee; the Committee on Front of Label Packaging; the sub-committee on the Food Security Plan; and the CET and Rules of Origin sub-committee.

    He praised the CPSO’s work on the development of its “Twenty-Five by 2025” document in which it lists priority areas for investment  in the Region in response to concerns about the Region’s significant food import bill. This he expects to lead to  an implementable Plan of Action.  

    “The CPSO also submitted to us a risk assessment on how to reopen our economies in this difficult time of COVID-19 which was disseminated to all Member States,” the Secretary-General noted.
    Mr Warner express confidence that the private sector’s collaboration with the Community will help to realise the Region’s development goals.

    “We are confident that the goodwill that has been engendered and the cooperation fostered, and the resources applied to the fulfilment of the MOU, will set us unmistakably on the path of accelerated development for our Region and in particular towards the achievement of the goal of full implementation of the CSME,” the CPSO Chairman said.

    The preceding was a press release from the CARICOM Secretariat.

  • Caribbean Trade & Development News Digest – November 22-28, 2020

    Caribbean Trade & Development News Digest – November 22-28, 2020

    Welcome to the Caribbean Trade & Development News Digest for the week of November 22-28, 2020! 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.

    On November 30 each year Barbados celebrates its independence. We wish fellow readers in Barbados and all Barbadians both here and in the diaspora Happy 54th Anniversary of Independence!

    THIS WEEK’S HIGHLIGHTS

    This week, the World Trade Organization (WTO) released its World Trade Report 2020 with a focus on how governments use policies to foster digital innovation. Read the press release and access the full report here.

    While China and Australia are among the signatories to the recently signed RCEP, that has not slowed simmering diplomatic and trade tensions between the two Asia-Pacific nations as China slapped tariffs on wine imports from Australia. Read more in this Reuters story here.

    As in-person Brexit negotiations continued this week, there is some skepticism on whether at this late stage a deal is even possible before the expiration of the transition period. Read this commentary by Euronews here.

    Looking regionally, the Caricom Council on Trade and Economic Development (COTED) held a virtual meeting this week on November 27-28, 2020 .

    A Caribbean Manufacturers Association (CMA) was launched this week. Read more . The UWI, CDB and EU have collaborated to produce the first State of the Caribbean Climate Report. Access the full report here.

    At Barbados’ Virtual ‘We Gathering’ Independence event, which brought together persons from across the island and the world, Minister in the Ministry of Foreign Affairs, Jerome Walcott noted that the country will be opening three embassies in African countries next year which will have commercial attaches, as well as deepening its engagement with the Barbadian diaspora by establishing a diaspora policy and a national diaspora registry.

    REGIONAL NEWS

    Cubans Seek Alternatives after Western Union Closes

    Havana Times: Cubans are looking for new alternatives so that remittances can continue to flow from the US to Cuba via cryptocurrencies or debit cards, after Western Union closed its offices on Monday. This has been one of the hardest blows for families on both sides of the Florida Strait, reported Reuters. Read more

    Because of Trump sanctions, Western Union remittances come to an end in Cuba
    NBC: “The problem is not the closure of Western Union, but that Western Union is practically the only U.S.-to-Cuba provider of remittance payments,” said a Washington, D.C-based analyst. Read more

    New CARICOM Manufacturers’ Association formed

    Loop: Six manufacturing associations across the Caribbean have agreed to join forces under a new CARICOM Manufacturers’ Association (CMA). Read more

    CARICOM congratulates Barbados on 54th Independence Anniversary

    BarbadosToday: The Caribbean Community (CARICOM) has extended congratulations to the Government and People of Barbados on its 54th Anniversary of Independence. Read more

    Blowout Of CARICOM COVID-19 Travel Bubble – Regional Heads Squabble Over Country Classification

    Jamaica Gleaner: The contents of a recent letter from Gaston Browne, the Antigua and Barbuda prime minister, to his Barbados counterpart, Mia Mottley, appears to reflect both frustration in St John’s and long-running difficulty among Caribbean Community (CARICOM) leaders to agree and implement common policies. Read more

    Barbados and Scotland launch three-day cyber event

    BarbadosToday: The first-ever virtual trade mission between Barbados and Scotland was launched today. The two countries, determined that the global COVID-19 pandemic will not be a deterrent, are staging the three-day event to showcase products and services from both territories. Read more

    Protect our share

    Barbados Today: Caribbean Community (CARICOM)-based manufacturers have been urged to scale up their production capacity, even amid the COVID-19 pandemic, or risk losing important market share to outsiders. Read more

    New measurements legislation coming

    Barbados Today: Minister of Energy, Small Business and Entrepreneurship Kerrie Symmonds, speaking on Monday during a stakeholders’ sensitisation forum on the Bill via Zoom, said the new legislation is an important step to modernising the economy and enhancing the island’s export potential. Read more

    Gopee-Scoon: Let Caribbean pool its production resources

    Newsday: Trade Minister Paula Gopee-Scoon urged manufacturers across the Caribbean to pool resources for their mutual benefit, addressing the virtual signing ceremony of the Caribbean Manufacturers Association (CMA) on Wednesday. Read more

    Cuba and Jamaica strengthen trade ties in medical field

    Prensa Latina: Cuban and Jamaican companies from the medical sector held an entrepreneurial forum on Friday, under the auspices of the Chamber of Commerce of Cuba (CCC) and the Jamaican Embassy in Havana. Read more

    JSWIFT Exceeding Turnaround Time For Processing Trade Documents

    JIS: The Jamaica Single Window for Trade (JSWIFT) has been doing same day processing for approximately 50 to 70 per cent of documents submitted daily, thereby exceeding expectations of the online portal. Read more

    Jamaican businesses invited to participate in US virtual trade mission and networking event

    Jamaica Observer: The American Chamber of Commerce of Jamaica (AMCHAM) is partnering with the US Department of Commerce’s Commercial Service and the US Embassy in Jamaica to host a Caribbean region virtual trade mission on December 1. Read more

    Expanding and developing the Guyana economy

    Stabroek: When oil and gas production fields in Guyana are fully operational, the fossil energy sector is likely to be the predominant source of national economic activity through its direct contribution to foreign exchange earnings, government fiscal revenues, employment and labour incomes, and local purchases of goods and services. Read more

    Despite major oil discoveries World Bank still lists Guyana among poorest in South America

    Stabroek: Guyana’s multiple major oil discoveries beginning in May 2015 may have set the country on the path to realising a level of wealth not before seen in the Caribbean, but a recent World Bank Review still regards the country as being “one of the poorest in South America.” Read more

    Guyana, Suriname to deepen economic and social cooperation

    Jamaica Observer: President Irfaan Ali has pledged to deepen the bond between Guyana and neighbouring Suriname. Read more

    Guyana & Suriname sign MoU to bridge the Corentyne River

    LoopNewsCaribbean: Trade between Guyana and Suriname will soon have a new route as both governments finalised and signed a Memorandum of Understanding yesterday to construct a bridge over the Corentyne River. Read more

    Belize to benefit from new tax breaks in Chetumal

    Breaking Belize News: Тhе bоrdеrѕ аrе сurrеntlу сlоѕеd, but whеn thеу rеореn, Веlіzеаnѕ ѕhорріng іn Сhеtumаl, Quіntаnа Rоо, Мехісо wіll bеnеfіt frоm fuеl аnd tах brеаkѕ tо bе іntrоduсеd аnd ехраndеd аlоng thе ѕоuthеrn frоntіеr аѕ wеll аѕ thе nоrth, ассоrdіng tо Rеutеrѕ.  Read more

    Over 600 heads of cattle going to Mexico in December

    Breaking Belize News: Тhе trаdе оf lіvеѕtосk bеtwееn Веlіzе, Мехісо, аnd Guаtеmаlа, ѕtаllеd іn thе lаttеr dауѕ оf thе Dеаn Ваrrоw аdmіnіѕtrаtіоn, hаѕ bееn rеvіvеd іn еаrnеѕt bу ѕuссеѕѕоr Јоhn Вrісеñо аnd hіѕ Міnіѕtеr оf Аgrісulturе аnd Еntеrрrіѕе, Јоѕе Маі. Read more

    CDB, IMPACS and OECS partner to establish maritime single window

    Menafm: A maritime single window will be established in the Eastern Caribbean in the upcoming months says director of the projects department at the Caribbean Development Bank (CDB) Daniel Best. Read more

    Working together vital

    Barbados Advocate: The challenges faced this year have highlighted the importance of closer integration and collaboration to help ensure that fragile regional economies can more effectively absorb and rebound from external shocks. Read more

    Grenada and Georgia sign Visa Waiver Agreement

    NowGrenada: Grenada‘s Ambassador and Permanent Representative to the United Nations, Her Excellency Keisha A McGuire, and her Georgian counterpart, His Excellency Kaha Imnadze, Ambassador and Permanent Representative of Georgia to the United Nations, executed agreements that would waive visa requirements, allowing nationals of Grenada and Georgia to travel between the 2 countries without a visa for stays not exceeding 90 days. Read more

    Security forces start planning for UNCTAD 15

    BarbadosToday: Members of the local and regional security cluster for the UNCTAD 15 Conference recently stepped up their preparation for the Conference with a training exercise at the Headquarters of the Regional Security System (RSS) at Paragon, Christ Church. Read more

    INTERNATIONAL NEWS

    Global tariff relief on medical goods urged by group of nations

    Livemint: The European Union said it would join forces with countries including Canada and Japan to push fellow World Trade Organization members to ease tariffs on medical equipment needed to fight Covid-19, the latest effort to bolster supply chains amid the pandemic. Read more

    China slaps tariffs of up to 212% on Australian wine imports

    CNN Business: Australian winemakers have been dealt a huge blow from China as tensions continue to spiral between the two countries. Read more

    PM warns economic challenges lie ahead as China’s wine tariffs hit

    The Sydney Morning Herald: Prime Minister Scott Morrison has warned of more economic challenges ahead, saying the age of certainty enjoyed before the coronavirus pandemic was an aberration with more disruption caused by global competition likely to feature in coming years. Read more

    China increases coal import quotas but Australia likely to be excluded

    The Guardian: China’s foreign ministry has warned Australia to handle the bilateral relationship with “mutual respect and equality” after it imposed “devastating” tariffs of up to 212% on Australia wines. Read more

    Australia prepares to escalate action against China to World Trade Organization over barley tariffs

    ABC (Australia): As tension grows over Beijing’s massive tariffs on Australian wine, the Federal Government is continuing with plans to take China to the World Trade Organization over barley exports. Read more

    Ngozi Okonjo-Iweala: how global and local experience would play out in WTO top job

    The Conversation: The global economy faces profound uncertainties, particularly in the face of the COVID-19 pandemic. In addition, faith in the efficacy of international bodies such as the World Trade Organisation (WTO) has been weakened by a power struggle between China and the US. Read more

    UK, France sign new deal to stop illegal migration across Channel

    Reuters: Britain and France signed a new agreement to try to stop illegal migration across the Channel on Saturday, upping patrols and technology in the hope of closing off a dangerous route used by migrants to try to reach the UK on small boats. Read more

    How close to a Brexit trade deal are we?

    BBC: With only just over a month to go before the transition period ends, the rumour mill keeps churning relentlessly. Runes are read out loud, and potential – though never confirmed – compromise solutions are leaked to the hungry UK media (the European press is rather more preoccupied by Covid-19 and Christmas plans).

    Brexit talks restart in person in London as clock ticks down

    Al Jazeera: Negotiators meet in last-ditch bid to secure deal before the UK’s transition period with the EU ends on December 31. Read more

    Last-ditch Brexit trade talks resume amid growing EU scepticism

    The Guardian: Michel Barnier has told bloc he is prepared for four more days of make-or-break negotiations. Read more

    UK-EU trade deal would avoid years of acrimony, says funds industry

    Reuters: A trade deal between Britain and the European Union would help open the door to cross-border financial services from January and avoid years of acrimony, industry officials said on Monday. Read more

    British, Irish prime ministers discuss EU trade negotiations

    Reuters: British Prime Minister Boris Johnson spoke with Irish Taoiseach Micheal Martin on Friday evening and discussed progress in UK-EU trade negotiations, the UK government said, at a time when differences remained with the EU on a Brexit trade deal. Read more

    Mercosur/EU trade deal: “time is pressing,” cautions Uruguay

    Mercopress: Uruguayan foreign minister Francisco Bustillo leaves this week for Spain the first of a round of European countries ahead of the coming Mercosur summit to be held next month, under the presidency of Uruguay. Finalizing the Mercosur/European Union trade agreement is the focus of the trip. Read more

    Europe ‘cannot afford’ to bow out of Mercosur agreement, says academic

    Euractiv: The crisis of multilateralism, driven by the competition between the US and China, and a lukewarm push from the current leaders of the EU and Mercosur, explains why the agreement between these two blocks is such a challenge, analysts say. Read more

    Ottawa unveils funding for poultry and egg farmers hurt by free-trade deals

    CBC: Canadian egg and poultry farmers who’ve lost domestic market share due to two recent free-trade agreements will soon have access to $691 million in federal cash, Canada’s agriculture minister announced Saturday. Read more

    EU Parliament Backs Lobster Deal And EU-US Mini Trade Pact

    VOANews: The European Union parliament on Thursday approved a mini trade deal with the United States, which includes the elimination of customs duties on U.S. lobster imports. The passage with 638 votes for, 45 against and 11 abstentions was the last major political step for the deal to come into effect. Read more

    Commons considers Bloc bill to end dairy concessions in trade deals

    CBC: When Canadian trade negotiators begin talks with the United Kingdom next year on a permanent bilateral trade deal, their hands could be tied when it comes to offering any future dairy, egg or poultry concessions — if Parliament passes a new private member’s bill that saw its first hour of debate on Tuesday. Read more

    New regional trade deals to help China ‘sustain its advantages’ in global supply chains

    CNBC: China is set to remain a key player in global supply chains, thanks to a combination of factors ranging from the coronavirus pandemic to new trade agreements. Read more

    Africa to welcome e-commerce to speed up trade

    Menafm: A virtual import and export meeting and exhibition opened on Tuesday, November 24, with the Zambian government advising African countries to welcome e-commerce in order to speed up trade. Read more

    AfCFTA: African Finance Ministers to discuss payments system for trade bloc

    Nairametrics: The African Union is set to discuss the launch of a payment system for the African Continental Free Trade Area (AfCFTA). Read more

    AfCFTA Secretariat rolls out ‘vision’ initiative

    Ghanaweb: With barely two weeks left to the Extraordinary Summit of African Union Heads of State on 5th December, 2020, ahead of the expected start of trading under AfCFTA on 1st January 2021, the AfCFTA Secretariat is pleased to announce AfCFTA Vision, an Initiative in partnership with the Sankoree Institute, an affiliate of AfroChampions. Read more

    Why India Refused to Join the World’s Biggest Trading Bloc

    Foreign Policy: On Sunday, Nov. 15, 15 Asian nations representing nearly a third of the global economy signed the Regional Comprehensive Economic Partnership (RCEP), forming the world’s biggest trading bloc. But one Asian economic giant was missing: India. Despite protracted negotiations, New Delhi refused to join the accord. Read more

    PM Modi, Johnson discuss ‘ambitious roadmap’ for India-UK ties in next decade

    Hindustan Times: A Downing Street spokesperson said Prime Minister Narendra Modi and UK’s Boris Johnson discussed joint efforts to find treatments and vaccines for coronavirus and welcomed the collaboration between the two countries’ leading scientists. Read more

    Dombrovskis: Deep and comprehensive trade deal with the US ‘not feasible’

    Euractiv: European Commission executive vice-president, Valdis Dombrovskis, believes that Joe Biden’s victory will bring a fresh start to the EU-US relations. But there are limits, as he considers that it would not be feasible to try again to negotiate a deep and comprehensive trade deal like the TTIP, he told EURACTIV in an interview on Wednesday (25 November). Read more

    France is pushing ahead with its tax on US Big Tech after a 10-month standoff with Trump, setting the stage for a trade war over makeup and handbags

    Business Insider: France has demanded US tech giants pay its new 3% digital services tax, in a re-escalation of a trade war with the White House that was put on hold in January. Read more

    STRAIGHT FROM THE WTO

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  • RCEP and Caribbean-Asian Economic Relations

    RCEP and Caribbean-Asian Economic Relations

    Photo credit: Pixabay

    Alicia Nicholls

    On November 15, 2020, fifteen Asia-Pacific countries signed the Regional Comprehensive Economic Partnership (RCEP) agreement on the sidelines of the virtually held 37th Association of South East Asian Nations (ASEAN) summit. RCEP is the first mega-regional trade agreement (MRTA) to be concluded since the Trans-Pacific Partnership (TPP) was signed in 2016. As readers would recall, the TPP was replaced by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) after the United States (US) under the Trump Administration withdrew, leaving the remaining parties scrambling to salvage the agreement. Negotiations on the other long awaited MRTA, the Trans-Atlantic Trade and Investment Partnership (TTIP) between the US and EU, ended abruptly in 2016 without a deal.

    As the centre of global economic gravity shifts eastward (and not for the first time in history), countries around the world are considering what implications and opportunities this new agreement might pose for their political, strategic and economic relations with China and the other countries in the fast-growing Asia-Pacific region.

    This article offers some preliminary thoughts on the RCEP Agreement and the small but growing Caribbean-Asian economic relationship. It argues, inter alia, that the RCEP agreement presents another reason why Caribbean Community (CARICOM) Member States should not discount Asia-Pacific countries as partners for trade, foreign direct investment (FDI) and other economic cooperation as we diversify our economies as part of COVID-19 economic recovery efforts.

    What is RCEP?

    RCEP negotiations were launched in Phnom Penh, Cambodia eight years ago on November 20, 2012, with the stated objectives, inter alia, of broadening and deepening integration to create employment, raise living standards and improve the welfare of the peoples in the region. Though not particularly ambitious in the depth of its obligations, the 20-chapter RCEP text covers trade in goods, services and investment with an up to twenty year window for liberalization.

    RCEP at a glance

    Population (market size)2.2 billion
    % of world populationAlmost 30%
    Combined GDP (US$)26.2 trillion
    % of world GDPAbout 30%
    % of global trade28%
    Source: Figures taken from RCEP Joint Leaders’ Statement of November 15, 2020. Accessible here: https://asean.org/joint-leaders-statement-regional-comprehensive-economic-partnership-rcep-2/.

    RCEP creates the world’s largest trading bloc. It comprises the 10 ASEAN Member States which are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, plus five other key Asia-Pacific powerhouses: Australia, China, Japan, South Korea and New Zealand. It will enter into force once at least six ASEAN Member States and three signatory States other than ASEAN Member States have ratified the agreement.

    RCEP is, however, missing one big player, India, which withdrew from the RCEP negotiations in November 2019 over fears of its market being flooded with cheaper Chinese goods. Cognizant of the strategic importance India’s accession would bring both politically and economically to the agreement, RCEP parties released a Ministers’ Declaration on India’s Participation in the RCEP, leaving the door open for that country to accede at a later date if it so chooses.

    Much ink has been spilt on the geopolitical implications of RCEP which is widely seen in the west as a China-backed rival to the Trans-Pacific Partnership (TPP) which had been spearheaded by the US under the Obama administration, but from which President Trump withdrew upon assuming office. China was not part of the TPP negotiations and analysts opine that RCEP will help to further cement China’s influence as an economic power in the Asia-Pacific region.

    Taiwan (Republic of China), which is still recognized by five Caribbean States (Belize, Haiti, St. Kitts & Nevis, St. Lucia and St. Vincent & the Grenadines), is also not a part of the agreement. Taipei, has to some extent, vocalized concerns about what its exclusion could mean for its exports to those countries in the agreement.

    Caribbean-Asia/Pacific relations

    CARICOM countries’ overall trade with the Asia-Pacific remains small and is mainly with China, and less so Japan and South Korea. The region lacks free trade agreements (FTAs) with any Asian or Pacific countries. Guyana’s trade agreement with China signed September 2001 is more aptly described as an economic cooperation agreement due to its predominantly best endeavour nature and lack of binding market access commitments. As such, trade between CARICOM and Asian countries is on World Trade Organization (WTO) most favoured nation (MFN) terms. This means Caribbean firms do not have preferential access to any Asian or Pacific market nor do Asian and Pacific firms have in ours.

    Although the Asia-Pacific region has become a major source of outward FDI globally, FDI inflows to the Caribbean remains mainly from the US, Europe and Canada. Among CARICOM countries, Barbados, Guyana, Jamaica, The Bahamas and Trinidad & Tobago have bilateral investment treaties with China, although not all are in force. Guyana, Jamaica and Trinidad & Tobago also have BITs with South Korea which are in force. Suriname’s BIT with Indonesia was signed in 1995 but never entered into force.

    Though Chinese FDI to the Caribbean remains small, Beijing has become a major provider of development finance in the region. Many Caribbean countries have signed memoranda of understanding (MOUs) with China under its Belt and Road Initiative (BRI). There are also various other initiatives such as the China/Caribbean Economic and Trade Forum and the CARICOM/Korea Consultation and Cooperation Mechanism, as examples.

    Similar to the Caribbean, notable heterogeneity exists among the RCEP parties in terms of culture, language, geography, religion, political systems, income levels , poverty rates, and population size. These are nuances, of course, to which Caribbean firms looking to tap into the Asian market must be sensitive.

    Five ways RCEP is of interest to the Caribbean

    Here are five ways that RCEP might be of interest to the Caribbean.

    First, RCEP marks another way in which the Asia-Pacific region is showing strategic global leadership in promoting multilateralism and a rules-based approach to trade. Both are important issues for CARICOM, especially at a time when unilateralism and protectionism appear ascendant. Admittedly, the commitments in the agreement are shallower than in the CPTPP and other similar agreements. For example, the provisions on e-commerce and on SMEs are predominantly best endeavour efforts at cooperation. In some cases, the rules just reinforce Members’ existing multilateral commitments or what exists in the existing trade agreements the Members have with each other. Nonetheless, a June 2020 study by the US-based Peterson Institute found that “RCEP could add $209 billion annually to world incomes, and $500 billion to world trade by 2030”. Moreover, the Agreement’s general review clause (Article 20.8) mandates the parties to undertake a general review of this Agreement with a view to updating and enhancing it five years after the date of entry into force of the Agreement, and every five years thereafter.

    Second, China, Japan and South Korea – the major Asian countries with which CARICOM trades – are all party to the RCEP Agreement. The benefits of RCEP to the parties extend beyond merely lowering tariffs. Although, some parties to the RCEP agreement already have FTAs with each other, RCEP will streamline customs procedures, converge rules of origin requirements and promote regulatory harmony across the fifteen parties. This will potentially reduce transaction costs for firms (including CARICOM firms) operating in the Asia-Pacific market, allowing them to only have to obtain one certificate of origin and to build more efficient supply chains within the Asia-Pacific region.

    Third, Asia is playing a growing role in the global economy and RCEP could cement this even further by accelerating that region’s COVID-19 economic recovery. With the notable exception of India, Asia-Pacific economies have generally seen a less pronounced COVID-19-induced economic contraction and have been recovering from the COVID-19 pandemic faster than the US, UK and the EU-27 – CARICOM countries’ traditional tourism source markets and trade partners. The IMF’s October 2020 Outlook forecasts ‘emerging and developing Asia’ economies to grow 6% in 2021, while ‘advanced economies’ (in which Japan is included) to grow a little more than half as fast at 3.9% in 2021. According to an IMF blog written by Ostry (2020), the Fund forecasts the Asia-Pacific region to grow by 6.9 percent in 2021, although headwinds remain ahead.

    While China alone accounts for a population over 1 billion and is now the world’s second largest economy by GDP, other Asia-Pacific countries have been rising in their economic importance. Their growing middle class present a possible tourism source market and potential consumers for Caribbean goods and services. Japan has become, for example, the major export market for Jamaican Blue Mountain coffee. Soca music and steel pan, both originating in Trinidad & Tobago, have also attracted a growing following in Japan. Reggae, a world-renowned musical genre born in Jamaica, is popular in South Korea and there are several reggae bands there. This shows that there are elements of Caribbean culture which appeal to Asian tastes, which present opportunities for creating demand for other quintessential Caribbean goods like our rums, for example.

    Besides trade and economic cooperation, possible opportunities for deepening Asia-Pacific cooperation and technical assistance exist in areas of mutual interest such as education, biomedical research, Artificial Intelligence and other spheres of technology, renewable energy, and sustainable agriculture, as examples.

    Fourth, although RCEP is just a trade agreement and not a political arrangement per se, it further strengthens the economic prowess and geopolitical significance of those participating countries on the multilateral stage, which could be to CARICOM’s benefit. RCEP might shape future trade and trading rules within Asia and could serve as a clue of what any future agreement between CARICOM and ASEAN agreement could possibly look like. It does not cover environmental and labor provisions, however.

    There is also the commitment in the Agreement to not only create an RCEP Joint Committee which is standard for FTAs, but an RCEP Secretariat (Article 18) which shows some desire by the parties for RCEP to be more than a standard FTA, but a forum for discussing rules of trade amongst themselves. In the future, RCEP as a negotiating bloc could have an influential role in the WTO, for example, in setting rules in new and emerging areas of trade. In the WTO, CARICOM has a long history of cooperating with similarly minded countries. CARICOM has also cooperated with Asian countries, inter alia, in intergovernmental and other multilateral fora, such as in the Organisation of Africa, Caribbean and Pacific States (OACPS), the Commonwealth, and the United Nations through the Alliance of Small Island States (AOSIS), on climate change. CARICOM also requested Indonesia’s assistance with combatting arbitrary blacklisting practices.

    Fifth, as CARICOM’s own regional integration movement remains stuck in neutral, RCEP, though not as ambitious as Africa’s continental free trade agreement aims to be, shows that there is still a desire for economic cooperation among larger, often more economically endowed countries than ours.

    Stepping stones across the pond

    Similar to Caribbean-China economic relations, Caribbean relations with the wider Asia-Pacific region hold promise. However, in addition to the physical distance separating the two regions, the ‘psychic distance’ between the Caribbean and the Asia-Pacific region may seem at first intimidating to some CARICOM firms, especially those with limited exporting experience or limited knowledge of the Asia market.

    On this front, the region has some underutilized resources from which it could draw to use as stepping stones to get across the pond to the Asia-Pacific market. As I have argued in a previous article, Caribbean returning scholars from China and other Asian countries are an undertapped resource whose knowledge of the language, culture and their networks could be deployed for the benefit of deepening general understanding and knowledge of the business culture of that market. The Caribbean-ASEAN Council can also be a valuable resource for Caribbean firms interested in the ASEAN and wider Asia-Pacific region.  

    Another resource at Caribbean countries’ fingertips is the region’s small Asia diaspora pocket, such as Chinese and Indians, who in some cases still retain ties with their ancestral homelands. Suriname’s Javanese diaspora are descendents of persons who came from the Indonesian island of Java (then also a Dutch colony) to work on plantations in Suriname. Suriname has leveraged this shared history to its advantage and is a member of the Islamic Development Bank, has an embassy in Jakarta (capital of Indonesia) and together has the Suriname-Indonesia Joint Commission.

    Additionally, there are English-speaking countries, such as Australia and New Zealand, and to a lesser extent Singapore and Malaysia where English is an important second language, which not only share a common language with the anglophone Caribbean but also to some extent similar laws and institutions. They could be markets in themselves for Caribbean goods and services, but could also be seen as ‘jump off’ markets to more ‘psychic distant’ markets in the wider Asia-Pacific region.

    In closing, this article sought to offer some preliminary thoughts on the RCEP agreement and what possible implications it might have for Caribbean-Asian economic relations. As Caribbean countries redouble their trade and tourism diversification efforts to pull their economies out of the COVID-19 doldrums, the region’s governments and private sector should embrace the possible economic opportunities RCEP might present for the region in terms of trade, FDI, and wider cooperation with the Asia-Pacific region.

    The full text of the RCEP agreement may be accessed 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. All views herein expressed are her personal views and should not be attributed to any institution with which she may from time to time be affiliated. You can read more of her commentaries and follow her on Twitter @LicyLaw.

  • Caribbean Trade & Development News Digest – November 15-21, 2020

    Caribbean Trade & Development News Digest – November 15-21, 2020

    Welcome to the Caribbean Trade & Development News Digest for the week of November 15-21, 2020! 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

    This week, the WTO celebrated its 25th anniversary of existence through a virtual event bringing together senior government officials and representatives from the private sector, civil society and intergovernmental organizations. Read more here

    The WTO’s latest Trade Monitoring Report on G20 trade measures shows a slowdown in the number and coverage of trade-restrictive and trade-facilitating measures on goods implemented by G20 countries between mid-May and mid-October 2020. Read more here.

    The UK and Canada reached a deal to roll over existing market access commitments once the UK leaves the EU and have agreed to start negotiations on a more advanced deal. Read this Bloomberg story here.

    Private sector representation within the Caribbean Community (CARICOM) is set to receive a further boost. This week, a Headquarters Agreement between Barbados and the CARICOM Private Sector Organisation (CPSO) was signed. It should be recalled that October 29, 2020 the CPSO was made an associate institution of CARICOM. Read more

    REGIONAL NEWS

    Barbados and CARICOM Private Sector Organisation Sign Headquarters Agreement

    Foreign.gov.bb: Efforts to further strengthen the CARICOM Single Market and Economy (CSME) were facilitated today, with the signing of a Headquarters Agreement between Barbados and the CARICOM Private Sector Organisation (CPSO). Read more

    Cuba, France prepare meeting of the Bilateral Economic Commission

    Prensa Latina: Both nations’ authorities have expressed at different times the will to strengthen economic-commercial ties, which on the French side is expressed in efforts of that country’s Directorate General of the Treasury and the French Agency for Development, which both encourage French entrepreneurs to negotiate with their Cuban counterparts. Read more

    Cuba Expert Says Don’t Expect Any Big Relationship Change When Joe Biden Takes Office

    CBS: The Cuba dilemma has dogged every president since Dwight Eisenhower. Former President Barack Obama made dramatic moves to reach out to the Castro regime netting little return from the Cubans. President Donald Trump rolled back those initiatives. Read more

    US organizations to seek rapprochement with Cuba

    Prensa Latina: US organizations said on Tuesday that there is an opportunity for the Biden administration to reverse Trump’s harmful policies on Cuba and adopt the normalization policy from the Obama era. Read more

    CARICOM encouraging use of electric vehicles throughout the region

    TV6TNT: The Caricom Secretariat has designated November ‘Energy Month’ and has teamed up with the Caribbean Centre for Renewable Energy and Energy Efficiency and the Technical Assistance Programme for Sustainable Energy in the Caribbean to host a virtual Electric Vehicle demonstration event tomorrow. Read more

    Real estate boost from Barbados Welcome Stamp

    Barbados Today: The northern parish of St James is currently the preferred location for individuals taking advantage of the 12-month Barbados Welcome Stamp initiative. Read more

    Study says Cayman is responsible for 16.5% of global tax losses per yr

    LoopCayman: An inaugural annual study by a UK-based global advocacy group says that the Cayman Islands is responsible for the biggest share of countries’ tax losses globally, amounting to 16.5 per cent of global tax losses or over $70 billion a year. Read more

    All-of-government approach to improve business environment, says Dunn

    Jamaica Observer: State Minister for Industry, Investment and Commerce, Dr Norman Dunn says that an “all-of-Government” approach is being employed to improve the trade and business environment. Read more

    Jamaica Coffee Commanding Smaller Share Of Japanese Market

    The Gleaner: Jamaica hopes to keep its luxury coffee exports to Japan on par with previous years, but the latest data shows its losing ground to coffee imports from richer non-coffee producing nations. Read more

    Electronic Single Window for Trade coming – President Ali

    DPI: His Excellency Dr. Mohamed Irfaan Ali has announced that an Electronic Single Window for Trade will soon be established to improve trade facilitation and the ease of doing business in Guyana. Read more

    Guyanese American Chamber of Commerce webinar

    SFCN: The recently held Guyanese American Chamber of Commerce (GACC) webinar which discussed expanding Guyanese exports to the United States offered useful information and advice to exporters from the South American republic. Read more

    Informal cattle trade back on again

    Amandala: More than thirty years ago, Belize’s cattle ranchers began supplying enough beef to meet the country’s needs, and after enabling self-sufficiency in the local meat market, the leaders of the industry began looking for markets abroad, in Mexico and Guatemala, so that they could expand their herds. Read more

    Tough times ahead in tourism

    Nation News: A veteran hotelier says COVID-19 could be the worst crisis to have ever hit the tourism sector in Barbados and it will be rough going for the next six to eight months. Read more

    INTERNATIONAL NEWS

    Wealthy countries block COVID-19 drugs rights waiver at WTO – sources

    Reuters: Wealthy nations on Friday reiterated their opposition to a proposal to waive intellectual property rules for COVID-19 drugs, three trade sources said, despite pressure to make an exception to improve access to drugs for poorer countries. Read more

    WTO sees trade rebound, but likely year-end slowdown

    Reuters: The World Trade Organization said on Friday global trade in goods had rebounded in the third quarter from COVID-19 lockdowns, but predicted a slowdown at the end of 2020. Read more

    UK secures vital rollover trade deal with Canada and agrees to start negotiating more advanced deal next year

    Gov.uk: International Trade Secretary Liz Truss has today secured an agreement for a continuity trade deal with “friend and ally” Canada. Read more

    Brexit latest: ‘Better progress’ in EU trade talks but differences still remain with time running out

    iNews: Ursula von der Leyen said there were still ‘quite some metres to the finish’ but insisted there had been ‘more movement’ on important issues. Read more

    UK, Canada could announce free trade deal within days

    Al Jazeera: The UK is negotiating several bilateral trade deals to come into force once it exits a transition arrangement with the EU at the end of the year. Read more

    WTO Members Preview Structured Discussions on Trade and Environmental Sustainability

    IISD: The second day of the World Trade Organization (WTO) Trade and Environment Week started with an event organized by Australia, Canada, Costa Rica, the EU, Mexico, New Zealand, Norway, Switzerland, and Chinese Taipei ahead of the launch of the ‘Structured Discussions on Trade and Environmental Sustainability.’ Read more

    Hong Kong strives to join regional trade deal RCEP, says Finance Secretary

    Strait Times: Hong Kong hopes to be part of the first group of economies to join the Regional Comprehensive Economic Partnership (RCEP) after the agreement takes effect, Financial Secretary Paul Chan said in a blog post on his website on Sunday (Nov 22). Read more

    Taiwan, Frozen Out of RCEP, Explores Trade Agreement Options With US

    The Diplomat: Taiwan reiterated Sunday its desire to join the CPTPP, and negotiators are in Washington this week hammering out a potential free trade agreement with the United States. Read more

    Taiwan exports set to suffer from RCEP trade deal exclusion

    SCMP: Business leaders fear Taiwan could lose its competitive edge after being left on the sidelines of the region’s largest free trading bloc, formed by China and 14 other countries. Read more

    Commission launches new complaints system to fight trade barriers and violations of sustainable trade commitments

    EU: The European Commission has today launched a new complaints system for reporting market access barriers and breaches of Trade and Sustainable Development commitments in the EU’s trade agreements and under the Generalised Scheme of Preferences. 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: