Caribbean Trade Law and Development

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  • WTO: Curacao to begin accession process as separate customs territory

    WTO: Curacao to begin accession process as separate customs territory

    Image by Patrice Audet from Pixabay.

    Alicia Nicholls

    World Trade Organization (WTO) Members have agreed to establish a working party for the accession of the Dutch Caribbean dependency of Curacao to the 164-member organization. This decision was made at the latest meeting of the WTO’s General Council – the WTO’s highest decision-making body in Geneva – when it met on March 3-4, 2020.

    Under the WTO Agreement, any State or separate customs territory “possessing full autonomy in the conduct of its external commercial relations and of the other matters provided for in this Agreement and the Multilateral Trade Agreements” may accede to the WTO on terms to be agreed between it and the WTO.

    Constitutionally, Curacao is a constituent country and separate customs territory within the Kingdom of the Netherlands and is part of the original membership of the Kingdom of the Netherlands to the General Agreement on Tariffs and Trade (GATT), and later the WTO. The Kingdom of the Netherlands has supported Curacao’s bid for WTO membership as a separate customs union and placed Curacao’s request on the General Council’s agenda.

    Curacao’s application for accession, which was made in October 2019, will make it among several accessions to the WTO currently on-going. According to the WTO Accessions 2019 Annual Report by the Director-General which was one of the meeting agenda items, “at the end of the year, out of the 22 ongoing accessions, 14 were considered as active, continuing their engagement with Members and/or the Secretariat”.

    With regard to The Bahamas, the only independent Caribbean country which is not yet a WTO Member, the Accessions Report 2019 noted that “the accession Working Party of The Bahamas met once and was very active until Hurricane Dorian made landfall in September, becoming the worst natural disaster in the country’s history”. The Bahamas’ accession to the WTO remains a point of contention in the country as there remains strong opposition against joining the multilateral trading body.

    Other items were discussed at the meeting which would be of interest to the Caribbean. Two Caribbean WTO representatives, Mr. Stephen Fevrier of the Permanent Mission of the Organisation of the Eastern Caribbean States (OECS) to Geneva and H.E. Mr. Chad Blackman, Ambassador of Barbados to Geneva are among the new chairpersons for WTO bodies.

    The US has resubmitted documents – a working paper and a draft General Council decision – in support of its bid to bring out changes to the way the WTO allows eligibility for special and differential treatment. The US delegation also submitted a draft General Council decision on “The Importance of Market-oriented conditions to the World Trading System”.

    The documents from the General Council Meeting may be accessed via the WTO’s documents portal.

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

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

  • CARICOM Heads, Ministers agree on COV19 Protocol

    CARICOM Heads, Ministers agree on COV19 Protocol

    CARICOM Secretariat – A regional protocol establishing minimum standards for dealing with the COVID19 virus was agreed to by CARICOM Heads of Government and Ministers of Health at the 8th Special Emergency Meeting in Barbados on Sunday. The protocol is critical to avoid an outbreak of panic and fear in the Region.

    The meeting was attended by the Pan American Health Organisation (PAHO), Caribbean Public Health Agency (CARPHA), Caribbean Disaster Emergency Management Agency (CDEMA), CARICOM Implementation Agency for Crime and Security (IMPACS) and representatives of the leadership of the Cruise Ship industry and their representative bodies, the Florida Caribbean Cruise Associate (FCCA) and the Cruise Lines International Association (CLIA).

    The capacity to manage an outbreak was identified as an area of concern. Accordingly the Meeting agreed to establish an expanded Bureau of Heads of Government to continue discussions with the travel and tourism industry, regional Financial Institutions, International Financial Institutions and the private sector with respect to the marshalling of resources to augment the region’s capacity to deal with a possible outbreak. Against that background, the meeting asked CARPHA and PAHO to assist by conducting a gap analysis of Member States’ capacities.

    The protocol, drafted by CARPHA following two emergency meetings of the CARICOM Ministers of Health last week, allows for individual states to place additional measures if they so require. 
    Chair of the Caribbean Community (CARICOM) the Honourable Mia Mottley, Prime Minister of Barbados, emphasised that the leaders were prepared to protect the Region’s “vital national and regional interest at all times. We must act together to get through this,” the Prime Minister said referring to the Community’s response to the virus.

    The Protocol defines roles and responsibilities of all parties and seeks to ensure that there is effective communications between CARICOM governments and the cruise line industry with respect to decisions so that there would be a common understanding.

    The meeting also recognised that the existing Regional Response Mechanism co-ordinated by CDEMA was already on alert and was actively undertaking scenario planning in partnership with CARPHA, PAHO, IMPACS and Member States’ emergency management agencies and Chief Medial Officers.

    CDEMA would also provide guidance and share best practices to Member States in their approach to managing an outbreak. A draft framework document has already been shared with regional partners and all CDEMA participating states and this will be built upon.

     The cruise industry officials confirmed that they have been doing their part in screening passengers and stated they were willing to work with the established protocol.

    The officials said they greatly appreciated the commitment and expertise of their partners in CARICOM, PAHO, CARPHA, CEDEMA, and IMPACS as everyone works together in their mutual interest of providing the highest degree of safety and health for passengers, crew and the destinations visited.

    They said screening procedures and protocols for prevention, surveillance and response are integral to industry operations. The cruise officials added that clear and practical protocols throughout the Region are essential and look forward to continued co-operation with all stakeholders. They urged everyone to align with the guidance and procedures from the World Health Organisation (WHO) and other global medical experts.

    They expressed their gratitude for Prime Minister Mottley’s leadership and initiative in convening what was a productive meeting.

    The preceding was a press release from CARICOM. To watch the press conference following the Special CARICOM Heads of Government Meeting on COVID-19 please see below:

  • Can Novel Coronavirus ‘COVID-19’ impact the Caribbean?

    Can Novel Coronavirus ‘COVID-19’ impact the Caribbean?

    UPDATE: Several Caribbean countries have now reported cases of COVID-19.

    Alicia Nicholls

    Let me preface this brief article by stating that to date there has as yet been no confirmed case of COVID-19 – the official name given to the novel coronavirus – in any English-speaking Caribbean country. This, nonetheless, does not deny the region’s vulnerability to the shockwaves of the virus’ increasing global spread and concomitant potential impact on global trade, travel and the global economy, on a whole. Besides the possible human impact, Caribbean small open economies – reliant on tourism and trade for our ‘bread and butter’- could be severely impacted by the current outbreak.  

    Global impact to date

    The COVID-19 virus, which is suspected to have originated with bats, was first reported in Wuhan Province, China in December 2019. At the end of January 2020, the World Health Organisation (WHO) – the United Nations (UN) specialised agency in charge of public health matters – declared the outbreak of COVID-19 to be a ‘Public Health Emergency of International Concern’ and issued a set of Temporary Recommendations. According to the latest press briefing of February 28, 2020 by Director General of the WHO, “outside of China, there are now 4351 cases in 49 countries, and 67 deaths”. Further, the WHO has increased its assessment of the risk of spread and the risk of impact of COVID-19 to “very high at a global level”.

    Last week, coronavirus fears caused stock markets to suffer their worst crash since the financial crisis, while the International Energy Agency (IEA) has predicted that reduced Chinese demand for crude oil will lead to the first quarterly decline in global oil demand in over a decade. China – the worst affected country to date by the virus – is expected to see a slowing in its GDP growth to 5.6%, according to the International Monetary Fund (IMF).

    Potential Impact on the Caribbean

    While there has not yet been any confirmed case of COVID-19 in the Caribbean, the Caribbean Public Health Agency (CARPHA) has upgraded the risk of COVID-19 transmission from low to “moderate to high”.

    Of major concern to the majority tourism-dependent countries of the Caribbean is that cases of the disease have appeared in our major tourist markets – the United States, United Kingdom, and parts of Continental Europe which have direct flights to the region.  Naturally, the biggest concern is the possible loss of life, particularly for those persons with impaired immune systems, if the virus outbreak reaches the region. The virus’ estimated 1% fatality rate makes it deadlier than the flu, which is known to kill hundreds of thousands each year. Aside from the very real human impact, there is also the economic impact that could arise from loss of productivity, businesses’ loss of revenue and reduced output.

    It should be noted, however, that even if the virus outbreak does not directly reach the region, we could possibly still be impacted negatively. For example, even though the Caribbean is currently COVID-19 free, the spread of ‘fake news’ may deter persons from travelling to the region, robbing these countries of potential tourist arrivals and needed foreign exchange. This has implications for countries like Barbados, for example, which in January this year launched a year-long home-coming called “WeGathering” which encourages its diaspora to come back to the island.

    Another potential channel of impact for import-dependent Caribbean countries is from the interruption of global supply chains and impact on commodities prices. The outbreak is already having an impact on global shipping. One possible ‘benefit’ for oil-importing Caribbean countries is the slump in oil demand and reduction in oil prices, but this may negatively impact oil exporting countries like Trinidad & Tobago and now Guyana.

    This, of course, is not the first nor will it be the last public health threat the Caribbean has faced. Readers would recall SARS (another type of coronavirus) outbreak, as well as the mosquito-borne diseases of Chikungunya and Zika several years ago. However, Caribbean leaders have rightly taken the COVID-19 threat seriously. Regional governments have so far adopted different responses to the threat, with policy responses ranging from quarantining to banning of travelers originating from outbreak countries, and in some cases, denying entry to cruise ships with cases of persons exhibiting symptoms of respiratory illness. CARICOM Heads of Government have called an emergency meeting in Barbados on March 1, to discuss the latest developments.

    Both regionally and globally, cooperation among governments and with international agencies will be key to mitigating the virus’ spread and its economic impact.  In a joint statement by the WHO and UN World Tourism Organisation (UNWTO), the two agencies called for cooperation and argued that tourism’s response “needs to be measured and consistent, proportionate to the public health threat”.

    Similar sentiments were made by IMF Managing Director, Kristalina Georgieva to the G20 on the economic impact of COVID-19. The Managing Director noted while various scenarios could occur, under the IMF’s current baseline scenario “global growth for 2020 would be about 0.1 percentage points lower” than the 3.3 percent global growth the IMF forecast in January. She further advised that “global cooperation is essential to the containment of the COVID-19 and its economic impact, particularly if the outbreak turns out to be more persistent and widespread.”

    Caribbean officials will be forced to play the delicate balancing act between not overreacting and exacerbating the situation, but also seeking to do their utmost best to protect public safety within the limits of their public health infrastructure and capacity.  Timely communication with the public on, for example, their pandemic preparedness, will be necessary.

    We as citizens also have our part to play by observing hygiene best practices to prevent or mitigate the virus’ spread should it reach our region. Moreover, in light of the potential for “fake news”, it is incumbent that citizens be discerning about our information sources and rely only on official sources such as the WHO and associated regional bodies like CARPHA and PAHO.

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

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

  • WTO Reform High on US President’s Trade Policy Agenda for 2020

    WTO Reform High on US President’s Trade Policy Agenda for 2020

    Alicia Nicholls

    Reform of the World Trade Organization (WTO) remains a high priority on United States (US) President Donald Trump’s ‘America-First’ Trade Agenda. This was confirmed in the recently released 2020 Trade Policy Agenda and 2019 Annual Report of the President of the United States on the Trade Agreements Program by the Office of the United States Trade Representative (USTR).

    Among the priorities listed for the President’s 2020 trade agenda is that the Administration “will push for a WTO that reflects current economic realities and strengthens free-market economies”. Readers would recall, for example, that last year the US stepped up its campaign advocating the introduction of criteria-based eligibility requirements, as opposed to the current and longstanding practice of self-selection as a developing country. In early February of this year, the US revised its list of developing and least-developed countries for purposes of US countervailing duties law.

    In December last year, the WTO’s Appellate Body became defunct following some two years of US blocking of appointments and reappointments to the once seven-member body over allegations of judicial overreach by the WTO’s highest arbiter of trade disputes. Earlier this month, the USTR released a report reiterating some of its criticisms of the Appellate Body’s operation.

    Consistent with the Administration’s stance, this present report has argued that “a number of features at the WTO reflect out-of-date assumptions and do not reflect current realities”.

    So what are the US priorities for WTO reform this year? The report notes that in addition to addressing the Appellate Body, the US will seek a new fisheries agreement, a digital commerce agreement, enforcing notifications obligations, and seeking reform of “special and differential treatment” for “developing” countries. It will also advocate for “other changes at the WTO that will have the WTO working for its Members.”

    The report further states that “the United States will also explore a broader reset at the WTO”. It notes, for example, that “the WTO currently locks-in outdated tariff determinations that no longer reflect deliberate policy choices and economic realities. ” As a result, it argues, “countries that have large economies that have developed significantly over the past two decades continue to maintain very high bound tariff rates, far in excess of the rates applied by the United States or to which the United States is bound”. It will also seek more plurilateral agreements.

    Other trade policy priorities outlined in the 300-plus page document are: pursuing trade agreements that benefit all Americans and enforcing US trade agreements and trade laws vigorously.

    Bearing in mind that this is a presidential election year in the US, it is likely the Trump Administration will use its ‘progress’ on WTO reform and other ‘wins’ like the recently updated NAFTA (renamed to the USMCA) and the Phase One trade deal with China as examples of a trade policy that puts Americans first in its bid to support the President’s re-election. This will definitely be a space to closely watch in coming months.

    The full USTR report may be accessed here.

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

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