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  • Caribbean Trade & Development News Digest – December 9-14, 2019 – Christmas Edition

    Caribbean Trade & Development News Digest – December 9-14, 2019 – Christmas Edition

    Welcome to our final Caribbean Trade & Development News Digest for the year 2019! We are happy to bring you the major trade and development headlines and analysis from across the Caribbean Region and the world from the week of December 9-14, 2019! We do hope that you have enjoyed our Digests over the past year!

    THIS WEEK’S HIGHLIGHTS

    Several major trade developments happened this week. It is quite a mouthful so let us go one by one, starting with the bad and ending with the good:

    The bad

    One sad development is that as of December 11, the WTO’s Appellate Body no longer has the quorum required to hear new appeals to panel decisions. It was later reported that the two outgoing Appellate Body members will stay on temporarily to complete some existing appeals. Read more here.

    The WTO Director-General’s annual report to the TPRB of trade-related developments shows that between mid-October 2018 and mid-October 2019, the trade coverage of import-restrictive measures implemented by members was estimated at USD 747 billion – the highest trade coverage recorded since October 2012. Read the full news item here.

    On the COP25, the climate talks have ended with a compromise. Read here

    The good

    Some good news is that the WTO’s General Council at its last meeting for the year has approved the WTO’s budget for 2020 and extended two important moratoria related to customs duties on electronic transmissions and the initiation of “non-violation” complaints under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Read more here.

    Additionally, the Trump Administration finally struck a deal with congressional Democrats on changes to the USMCA – the agreement to replace NAFTA. This should hopefully clear the path for US domestic ratification of the deal which was originally signed in November 2018 and whose amended version was signed by the three countries this week. Read the Protocol of Amendment here.

    The 9th ACP Summit of Heads of State and Government was held this week in Nairobi, Kenya from December 9-10. The ACP has been renamed the Organisation of Africa, Caribbean and Pacific States (OACPS).

    Turning to Brexit, the British electorate has given the ruling Conservative Party a decisive win. Does this mean a clear path forward now for Brexit? Maybe or maybe not. Read my commentary on it here!

    On the US-China trade war front, the US and China have announced completion of a ‘phase one’ trade deal. As such, the anticipated December 15, US tariffs on Chinese goods have not been implemented.

    REGIONAL NEWS

    CARICOM countries to benefit from global e-mobility programme

    Dominica News Online: Three Caribbean Community (CARICOM) countries are to benefit from a new Global Environment Facility (GEF) global e-mobility programme that has been launched at the ongoing United Nations Climate Change Conference (COP25). Read more

    UWI Strengthening Canada-Caribbean Relations

    UWI: Vice-Chancellor of The University of the West Indies (The UWI), Professor Sir Hilary Beckles is pleased to announce that the proposal for the establishment of the Canada-Caribbean Institute (CCI) was approved at a meeting of the University Finance and General Purposes Committee UFGPC) on October 30, 2019. Read more

    Barbados ‘may seek WTO ease’ on milling competition

    Barbados Today: Competition is heating up among the regional flour mills, threatening the milling industry in Barbados and the wider region, the industry and commerce minister said today, suggesting that Barbados ought to appeal to global trade arbiter for protection against extra-regional suppliers. Read more

    WTO: Are we in or out?

    EyeWitness News: The country’s World Trade Organization (WTO) accession has effectively come to a standstill, the nation’s chief negotiator has confirmed. Read more

    Social Media ‘Untruths’ Impact Bid To Join Wto

    The Tribune: The Bahamas’ bid to attain full World Trade Organisation (WTO) membership has been made harder by the spread of untruths on social media, the Government’s top negotiator has argued. Read more

    Wto: Bahamas May Have To Open Reserved Industries

    The Tribune: The Bahamas may have to open some of the 16 industries reserved solely for local ownership to foreign competition in becoming a full WTO member, the government’s top negotiator is warning. Read more

    Bahamas must flip approach to WTO

    The Tribune: The Bahamas should go “full steam ahead” in pursuing World Trade Organisation (WTO) membership through a private sector-driven approach that improves competitiveness, an attorney is arguing. Read more

    Belarus and Barbados establish diplomatic ties

    Belarus News: Permanent Representative of Belarus to the UN Valentin Rybakov and Permanent Representative of Barbados to the UN Henrietta Elizabeth Thompson signed a joint communique to establish diplomatic relations between the countries, BelTA learned from the press service of the Belarusian Ministry of Foreign Affairs. Read more

    Action Being Taken To Make The Export Of Goods And Services Easier

    JIS: State Minister for Industry, Commerce, Agriculture and Fisheries, Hon. Floyd Green, says the Government is working to make the export of local goods and services easier, by reducing the associated costs and processes. Read more

    South Holland Council is working on trading links with Jamaica

    Spalding Today: Officials have been forging closer relationships for trading produce between South Holland and Jamaica. Read more

    AMCHAM Jamaica signs MoU with US Embassy

    Jamaica Observer: United States Ambassador to Jamaica, Donald Tapia today signed a Memorandum of Understanding (MoU) with the American Chamber of Commerce of Jamaica (AMCHAM Jamaica) cementing the business relationship between the two organisations. Read more

    CARICOM and AFRICA – The Ties That Bind

    New York CaribNews: We are pleased to see the furtherance of collaboration between Africa takes another step with the opening of a CARICOM Office in Nairobi, Kenya. The Pan African movement of decades ago promoted the cultural heritage and historic ties and one that should also involve economic development. Read more

    Jampro Eyes Threefold Export Sales Growth For Max III Companies

    Jamaica Gleaner: Jampro president Diane Edwards is ­expecting the third cohort of companies selected for the Export Max programme to triple their export sales through their participation in the initiative. Read more

    Africa to open air and sea for trade with Caribbean and Pacific

    Star: The ninth African, Caribbean and Pacific (ACP) ended in Nairobi on Tuesday, with 79 countries pledging to promote inter Africa trade against unfair global trade practices. Read more

    79-member ACP now Organisation of African, Caribbean and Pacific States

    Jamaica Observer: The African, Caribbean and Pacific (ACP) Group yesterday ended a two-day summit here, agreeing to rename the 45-year-old organisation as the Organisation of African, Caribbean and Pacific States (OACPS). Read more

    INTERNATIONAL NEWS

    WTO chief: ‘Months’ needed to fix disputes body

    BBC: Director General of the World Trade Organisation Roberto Azevedo says it will take “a few months” to fix its main body for settling trade disputes. Read more

    What’s in the U.S.-China ‘phase one’ trade deal

    Reuters: The United States and China have agreed on the terms of a “phase one” trade deal that reduces some U.S. tariffs on Chinese goods while boosting Chinese purchases of American farm, energy and manufactured goods and addressing some U.S. complaints about intellectual property practices. Read more

    US, Mexico, Canada sign USMCA trade deal

    DW: Canada, Mexico and the United States have reached an agreement on a revised North American free trade pact. The deal, seen as a replacement for the 25-year-old NAFTA, is the result of more than two years of wrangling. Read more

    New North America Trade Deal Seen as Template for Deals to Come

    WSJ: USMCA’s provisions could find their way into other trade deals, based on Trump administration’s reworking of Nafta. Read more

    Evaluating the new USMCA

    CATO: Read the analysis from CATO Institute on the new USMCA. Read more

    ACP renamed as the Organisation of African, Caribbean and Pacific States

    Papua New Guinea Today: The 9th Summit of Africa, Caribbean and Pacific (ACP) Head of States and Government Tuesday approved the renaming of the group to be now called the Organisation of African, Caribbean and Pacific States (OACPS). Read more

    UK must be loyal on standards in return for market access – Macron

    The Guardian: Emmanuel Macron has warned Boris Johnson that the UK must remain “loyal” to EU standards post-Brexit for British companies to maintain access to the European market. Read more

    Sturgeon: Scotland wants different future from rest of UK

    BBC: SNP leader says election results made clear Scottish voters don’t want a Boris Johnson government or Brexit. Read more

    Michael Gove promises Brexit trade deal with EU by end of 2020

    Guardian: Minister says transitional arrangements will definitely stop on 31 December next year. Read more

    Election results 2019: Five big things on Boris Johnson’s to-do list

    BBC: With a substantial majority in Parliament, Boris Johnson can push ahead with his plans, confident that MPs will back them. So, what’s in the prime minister’s in-tray as he returns to work in Downing Street? Read more

    Brexit and EU trade deal are Boris Johnson’s priorities, says Michael Gove

    EU Today: The top priority of British Prime Minister Boris Johnson’s government is to leave the European Union on January 31st, and to secure a new trade deal with the EU by the end of next year, cabinet office minister Michael Gove, who is likely to be the UK’s lead trade negotiator with the EU, said on Sunday. Read more

    Europe reacts: Time frame for post-Brexit trade deal ‘is challenging’, says EU chief

    Euronews: The European Union have welcomed Boris Johnson’s thumping general election victory, calling for the Brexit deal to be ratified as soon as possible with Commission President Ursula von der Leyen stressing that “the time frame ahead of us is very challenging”. Read more

    Australian trade to be a winner in post-Brexit world, Brandis says

    The Sydney Morning Herald: Australia’s top envoy in London says political obstacles in the path of a massive free-trade agreement between Boris Johnson and Donald Trump leave Prime Minister Scott Morrison as the frontrunner to strike the world’s first post-Brexit economic deal with the United Kingdom. Read more

    ACP summit ends with adoption of resolutions to boost multilateralism

    XInhua: The ninth summit of African Caribbean and Pacific (ACP) heads of state and government ended in Nairobi on Tuesday with the adoption of resolutions to promote a rules-based international order. Read more

    WTO Appeals Judges to Stay On to Complete Several Decisions-WTO Official

    NY Times: World Trade Organization (WTO) judges will complete decisions on three pending appeals for which hearings have been held – despite the collapse of the Appellate Body earlier this week – a WTO official said on Thursday. Read more

    Experts call for integrating digital economy with AfCFTA to spur Africa’s development

    News Ghana: African experts and policymakers on Thursday called for integrating the digital economy with the Africa Continental Free Trade Area Agreement (AfCFTA) so as to harness potentials of the continental free trade pact. Read more

    Experts meet to validate African Continental Free Trade Area (AfCFTA) Business Index

    Business Ghana: The aim of the index is to provide an assessment of the extent to which businesses across Africa find trading across borders in Africa challenging, and to identify the main barriers to trade. Read more

    Cut red tape to boost trade, Uhuru urges Africa, Caribbean, Pacific states

    Business Today: President Uhuru Kenyatta has called for improvement of regulatory and institutional frameworks to promote faster economic growth among developing countries in Africa and the Caribbean. Read more

    The African Continental Free Trade Area Could Boost African Agency in International Trade

    Chatham House: The agreement, which entered into force in May, could be a major step for Africa’s role in international trade, if the continent can overcome barriers to implementation. Read more

    Uhuru seeks to review skewed EU trade agreements

    Nation: President Uhuru Kenyatta has termed current trade agreements with the European Union as largely imbalanced. Read more

    STRAIGHT FROM THE WTO

    NEW ON THE CTLD BLOG

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  • Conservatives win majority in UK election: A clear path forward for Brexit?

    Conservatives win majority in UK election: A clear path forward for Brexit?

    Alicia Nicholls

    Christmas came early for United Kingdom (UK) Prime Minister Boris Johnson and his Conservative Party as they have won the December 12 General Election – the Tories’ biggest victory in many years. It was the UK’s third general election since 2015 and the first December election since 1923.

    With the UK due to leave the European Union (EU) on January 31, 2020 after several delays, it would appear that this gives the Prime Minister the mandate he needs to finally fulfill the desires of those 52% of Britons who voted on June 23, 2016 to leave the EU. However, the only constant with the whole Brexit saga has been the unpredictability of this process which has claimed the premiership of two Prime Ministers thus far (David Cameron and Theresa May) and left the UK constantly seeking delays from the EU.

    Polls leading up to the election, as well as a BBC exit poll, had accurately predicted a decisive win for the Conservatives, with a strong swing away from Labour. The Tories picked up seats in traditional Labour strongholds, including in the north, Midlands and Wales.

    It should be remembered that lack of House of Commons support for her Brexit deal (even within her own party), particularly because of the controversial ‘backstop’ solution for the Irish border dilemma, led to the downfall of Mr. Johnson’s predecessor, Theresa May. Another reason was that the Conservatives had lost seats in the 2017 snap election she had called, and had no longer enjoyed an overall majority. However, with a clear majority now, it should be easier for Prime Minister Johnson – a Pro-Brexiteer – to get the House of Commons’ backing he needs to get his Brexit deal with the EU passed. Additionally, it also means that he should not be as dependent on the support of more extreme members of the Party who are not in favour of a close relationship with the EU post-Brexit.

    While the Conservatives and Labour were the two major parties in the election, there were other parties such as the Liberal Democrats, the Brexit Party, UKIP, the Green Party and the Scottish National Party (SNP). One hiccup, however, is the additional support gained by the SNP and what this means for the prospect of a new Scottish independence referendum. With 62% of Scots voting to remain in the 2016 referendum, Scotland was firmly in the remain camp. According to BBC reporting, SNP political leader and Scottish First Minister Nicola Sturgeon lauded her party’s strong performance in this election, noting that it sent a “very clear message” that PM Johnson lacks the mandate to take Scotland out of the EU. What may this mean for the continued unity of the United Kingdom?

    In weeks to come, many pundits will be opining on what message the British electorate was sending by handing the Conservatives such a resounding victory – were they not confident in the alternatives to the Conservatives or did they simply want to hand the Conservatives a manageable majority so they could just get on with the business of delivering Brexit? For his part, Labour leader Jeremy Corbyn has indicated he will not fight another election.

    For the Caribbean, it should be recalled that regardless of what happens now between the UK and the EU, preferential trade between CARIFORUM countries and the UK should continue uninterrupted as the UK and CARIFORUM countries have agreed to roll over the provisions of the EU-CARIFORUM EPA (which covers trade between CARIFORUM and the current EU-28). The UK-CARIFORUM EPA, which was signed in March this year, will come into effect once the UK leaves the EU.

    While all eyes have been focused on what the election result means for Brexit, it should not be forgotten that there were several core issues which also were part of the Tories’ campaign message. Immigration, which cannot be divorced from Brexit, was a big part of the Conservative platform. With Prime Minister Johnson promising to crackdown on immigration to the UK, it remains to be seen what this means for Caribbean nationals currently living in the UK or looking to emigrate there. The Windrush Scandal remains fresh in Caribbean minds.

    The Brexit chapter may not have yet reached its conclusion and it remains to be seen whether this Conservative triumph at the polls will indeed be the clear path forward for the UK’s exit from the EU, or if other stumbling blocks, such as the whole Scottish issue, will come into play.

    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 Appellate Body loses quorum for hearing new appeals

    WTO Appellate Body loses quorum for hearing new appeals

    Alicia Nicholls

    The World Trade Organisation’s Appellate Body – the highest arbiter of trade disputes – has lost its quorum. The terms of two of its three remaining Members expired on December 10, 2019. This means that as of December 11, the Appellate Body is no longer be able to review new appeals of panel decisions as it now lacks the minimum number of members required to do so.

    It is a day which many who have been following global trade matters have feared. For the past two years, the US has been blocking the appointment of Appellate Body members unless its concerns related to the substantive and procedural aspects of the Appellate Body’s work were addressed. Successive US administrations have raised issues with the Appellate Body, but anti-WTO sentiment intensified under the Trump Administration which has repeatedly accused the WTO of being “unfair” to the US.

    In a press conference delivered at the final WTO General Council Meeting for 2019, WTO Director-General Roberto Azevedo stated that WTO Members could not achieve consensus on a draft decision to reform the Appellate Body submitted by Ambassador David Walker of New Zealand. Ambassador Walker had been appointed earlier this year to facilitate an informal process to overcome the deadlock on Appellate Body member appointments. The draft decision was an outcome of that process.

    Mr. Azevedo emphasised that the current paralysis of the Appellate Body “does not mean that rules-based dispute settlement has stopped at the WTO”. He pointed to other mechanisms under the DSB for resolving disputes. However, he noted that most Members prefer the two-tiered system and that he would launch “more intensive, high-level consultations on how to resolve the longstanding impasse over the appointment of Appellate Body members”.

    A group of 54 mainly developing WTO members, including many Caribbean countries, released a statement in support of the rules-based multilateral trading system. Inter alia, they called the dispute settlement system of the WTO “a central element in providing security and predictability to the multilateral trading system”. They also stressed the urgency “of filling all current vacancies on the Appellate Body”.

    During the General Council Meeting held December 9-11, Members finally approved the WTO’s 2020 Budget. Members also agreed to extend the moratorium on customs duties on electronic transmissions and the initiation of “non-violation” complaints under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

    UPDATE: It has been reported that the two outgoing Appellate Body members will stay on temporarily to complete some existing appeals. 

    To watch the WTO DG’s press conference, please click 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.

  • Africa-Caribbean relations to deepen with a joint CARICOM diplomatic mission

    Africa-Caribbean relations to deepen with a joint CARICOM diplomatic mission

    Alicia Nicholls

    CARICOM countries will establish a joint diplomatic mission in Kenya – which for many CARICOM governments, like Barbados, will be their first diplomatic mission on the African continent. According to a press release from the Barbados Prime Minister’s Office (PMO) dated December 7, Prime Minister of Barbados, the Hon. Mia Amor Mottley, unveiled a plaque and accepted the space for the joint mission on behalf of the regional grouping.

    The joint mission will be housed in an ultra-modern business complex in the diplomatic district of Nairobi, Kenya, across the road from the United Nations’ main office in Africa.

    During the unveiling, Prime Minister Mottley stated that “this is but only one of many steps we will take in the next few months that will communicate to our people, as well as to those who are watching from outside, that this is not a fly-by-night relationship.”

    She further stated that it is a relationship ” that will be anchored deeply and which is intended to unleash people-to-people communication and cooperation and the trade and investment opportunities such that our nations can prosper by relying on each other, and not simply on those from the North Atlantic.”

    Efforts at deepening Africa-Caribbean relations

    Only a handful of Caribbean countries have a diplomatic presence on the African continent. Additionally, trade between the countries of the Africa continent and the Caribbean is small, with the Caribbean enjoying a trade surplus. According to data from ITC Trade Map, CARICOM countries exported US$449 million worth in goods to Africa in 2017, representing 2.6% of CARICOM’s total exports to the world. Whereas, the region imported US$258 million worth of goods from the continent in that same year. Africa’s exports to CARICOM only represented a mere 0.06% of its total world exports in 2017.

    However, this volume of trade is likely to increase if the current interest in deepening Africa-Caribbean economic relations continues. Earlier this year, Prime Minister Mottley led delegations to Morocco, Ghana and now to Kenya where she is attending the ACP Summit.

    During the visit of President of Ghana Nana Akufo-Addo to Barbados in June this year, Prime Minister Mottley had also announced plans by her Government to soon establish a High Commission to Ghana. In a move to facilitate travel from Africa, the Barbados government has also waived visa requirements for nationals from eight African countries.

    This year as well, President of Ghana, Nana Akufo-Addo visited Barbados and several other Caribbean countries as part of Ghana’s year of remembrance of 400 years since the start of the Trans-Atlantic slave trade. President of Kenya, Uhuru Kenyatta, also paid a visit to the region a few weeks later. During their visits, both Presidents took the opportunity to sign cooperative agreements and outline plans to further develop business and other relations between the Caribbean and their respective countries.

    In August 2019, it was announced that CARICOM and the African Union “will shortly sign a Memorandum of Understanding establishing a framework for engagement and cooperation”.

    On that note, there is currently no trade agreement between CARICOM or any African countries. Some individual Caribbean countries have bilateral investment treaties (most of which are not in force) and double taxation agreements with individual African countries.

    Joint mission to be applauded

    The promised CARICOM joint diplomatic mission should be applauded and is a good sign of CARICOM leaders’ intention to meaningfully deepen our ties with the African continent – a continent with which we share strong historical bonds, but still limited commercial ties. A joint mission allows CARICOM countries to pool their scarce financial, human and other resources – similar to what the Organisation of Eastern Caribbean States (OECS) has demonstrated with its joint missions in Geneva and Brussels.

    Need for a trade/business attache

    It is hoped that the staff of the future CARICOM joint mission to Kenya would also include some kind of trade attache or business liaison which would be instrumental in helping to promote Africa-Caribbean trade, investment and tourism.

    According to the press release, Prime Minister Mottley will, when she assumes Chairmanship of CARICOM in January 2020, work with the Kenyan Government and business community to hold the first CARICOM-Africa summit. These are indeed exciting times for Africa-Caribbean relations!

    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.