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  • Caribbean Trade & Development News Digest – November 24 – 30, 2019

    Caribbean Trade & Development News Digest – November 24 – 30, 2019

    Welcome to the Caribbean Trade & Development News Digest for the week of November 24-30, 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 past week.

    THIS WEEK’S HIGHLIGHTS

    At the WTO’s Dispute Settlement Body meeting on 22 November, some 117 WTO members have again called for a launch of the process for filling vacancies on the Appellate Body, which is currently at three members and is set to lose 2 other members when their terms end on December 10. If this happens, the WTO AB will no longer have a quorum to hear appeals. Read more here.

    On 27 November the WTO held a conference to mark the 30th anniversary of the Trade Policy Review Mechanism (TPRM). Read more here. The WTO also held its fourth Natural Disasters and Trade symposium on 29 November. Read more here.

    And lastly, it would be remiss of me if I did not say Happy Independence to my country Barbados which celebrated its 53rd year of independence on November 30! Barbados, as you may know, will be co-hosting the UNCTAD XV quadrennial with the United Arab Emirates in October, 2020.

    REGIONAL NEWS

    Government launches Belize’s 1st National Investment Policy and Strategy

    Breaking Belize News: Тhе Gоvеrnmеnt оf Веlіzе (GОВ) thrоugh thе Міnіѕtrу rеѕроnѕіblе fоr Іnvеѕtmеnt, Тrаdе аnd Соmmеrсе, ВЕLТRАІDЕ аnd thе САRІСОМ Dеvеlорmеnt Fund (СDF) wіll lаunсh thе Веlіzе Nаtіоnаl Іnvеѕtmеnt Роlісу аnd Ѕtrаtеgу (NІРЅ) оn Моndау, Dесеmbеr 2, 2019, аt 10 аm аt thе Веѕt Wеѕtеrn Віltmоrе Рlаzа іn Веlіzе Сіtу. Read more

    Why the WTO Appellate Body Crisis Matters to the Caribbean

    CARICOM Today: The Appellate Body (AB) of the World Trade Organization (WTO) – the final court charged with hearing appeals on points of law at the WTO – faces an existential crisis. On 10 December 2019, the terms of two of its remaining three members – the quorum needed to adjudicate an appeal – will expire. Read more

    Guyana commits to direct flights from C’bean to Africa

    News Room: The Governments of Guyana and Ghana Friday morning signed an Air Services Agreement, paving the way for direct flights between the two countries. Read more

    Barbados ‘ready for Brexit EPA’, says Husbands

    Barbados Today: Barbados is ready to take full advantage of an Economic Partnership Agreement (EPA) with post-Brexit Britain, Minister of Foreign Trade Sandra Husbands has declared. Read more

    Barbados, Ghana explore business opportunities

    Joy Online: Trade and investment relations between Ghana and Barbados has received a further boost with the signing of a partnership agreement between an indigenous Ghanaian firm and its counterpart from Barbados. Read more

    Ghana: Govt Completes Recruitment of 120 Nurses for Barbados

    AllAfrica: The Ministry of Health (MOH) has completed the recruitment processes to send the first batch of 120 qualified nurses to work in the Caribbean nation of Barbados. Read more

    Bridgetown and Tema sign agreement establishing sister-port

    Joy Online: Ghana and Barbados on Friday, November 15, 2019, signed an agreement establishing a sister-port relationship between the two cities to facilitate the expansion of trade between the two countries, especially trade transiting through Barbados from Ghana and onward to other Caribbean and Latin America destination ports. Read more

    Ghana, Barbados sign agreement to boost e-commerce

    Ghanaweb: In its quest to facilitate the expansion of trade and investment between Ghana and Barbados, an indigenous Ghanaian firm and its counterpart from Barbados have signed a partnership agreement to boost e-commerce within the two countries. Read more

    US Envoy Says Jamaica Ready For Greater Investment Flow From The North; Hails Improvements In Local Economy

    Jamaica Gleaner: The United States envoy in Jamaica says the prospects for greater investments by his country on the island have never been better, pointing to major improvements in the local economy and efforts by the government to make it easier to do business. Read more

    Jamaica Re-Elected To Powerful Category C Of IMO Council

    Jamaica Gleaner: Jamaica was re-elected to Category C of the Council of the International Maritime Organization (IMO), confirming the island’s position at the centre of international maritime legislature. Read more

    Exclusive: Caribbean officials linked to diplomatic passport sale

    Al Jazeera: Politicians in the Caribbean are said to be involved in a corrupt trade of diplomatic posts in exchange for money, an Al Jazeera investigation has revealed. Read more

    COTED decision a lifeline for CARICOM sugar

    Jamaica Observer: Directors of the Sugar Association of the Caribbean (SAC) are due to meet in early December to reflect on the 49th Meeting of The Council for Trade and Economic Development (COTED) outcomes, which agreed to the incremental enforcement of tariffs on imported white sugar as and when the region produces it. Read more

    No 40% CARICOM tariff on white sugar until regional producers can supply – Dookhoo

    Stabroek: The Council for Trade and Eco-nomic Development (COTED) of CARICOM will not erect a 40% common external tariff (CET) against extra-regional white sugar until regional producers are able to supply the quantity and quality needed by regional manufacturers for their food and beverages operations. Read more

    INTERNATIONAL NEWS

    Top Japan negotiator says it is not considering signing RCEP trade pact without India

    Strait Times: Japan is not considering signing a regional trade pact without India at this juncture, the top Japanese negotiator said on Friday (Nov 29), ahead of a series of diplomatic exchanges in the coming weeks that include a visit to Delhi by Prime Minister Shinzo Abe. Read more

    China small manufacturers’ rising exports to Africa help offset plunging sales to US amid trade war

    South China Morning Post: Growing optimism is spreading among some small Chinese manufacturers in sectors ranging from car parts to textiles, as a spike in exports to countries involved in the Belt and Road Initiative is starting to offset a portion of lost demand from the United States due to the trade war. Read more

    General election 2019: Second Brexit referendum will be needed unless a majority is won, report says

    iNews: The Conservatives have said a second referendum is off the table, but academics believe it’s their only option unless they win a majority. Read more

    With the WTO Appellate Body Becoming Dysfunctional on December 11, What Happens to Pending Appeals and Other Open Issues?

    WITA: There was another WTO Dispute Settlement Body (“DSB”) meeting on November 22, 2019. In addition to the normal agenda item of receiving reports and comments by other members on the status of implementation of recommendations on disputes where reports had previously been adopted by the DSB, there were a number of other agenda items, one of which was not addressed. Read more

    Japan indicates efforts on to address India’s concerns over RCEP

    Economic Times: Japan on Sunday gave clear indications that efforts were on to make India join the ambitious Regional Comprehensive Economic Partnership (RCEP), saying all member countries of the grouping were committed to address New Delhi’s concerns. Read more

    Rwanda’s port – creating a hub for Intra-African trade

    Euronews: One of the largest dry ports (30 hectares) in-land in Africa is working towards a different kind of management system to create a faster and more efficient process for its customers. It means landlocked countries will be free from market-barriers. Read more

    ITFC seeks to boost Arab-Africa trade

    GTR: The International Islamic Trade Finance Corporation (ITFC) has committed to a credit facility agreement worth US$100mn with the African Export-Import Bank (Afreximbank). Read more

    New move to boost trade between Ireland and Africa

    Irish Times: Plans are afoot to increase the value of two-way trade between the Republic of Ireland and Africa to at least €5 billion by 2025. Read more

    AfCFTA: Boosting intra-regional trade in goods and services

    Business Report: According to new research from Baker McKenzie and Oxford Economics – AfCFTA’s $3 trillion (R44.18trln) Opportunity: Weighing Existing Barriers against Potential Economic Gains – many opportunities for increasing intraregional trade exist in Africa, in goods and services. Read more

    Morocco, Turkey Launch Negotiations to Save Free Trade Agreement

    Morocco World News: Turkey and Morocco appear to have launched negotiations to maintain their in-question Free Trade Agreement with the aim of “rebalancing” trade terms and satisfying both parties. Read more

    South Korea’s export decline suggests no easing up on world trade slump yet

    Business Times: South Korea’s exports, a closely watched bellwether for world trade, fell more than expected in November, dealing a blow to nascent optimism that a prolonged slump in global demand may be bottoming out. Read more

    Japanese and South Korean trade officials to hold export control talks in December

    The Japan Times: Senior trade officials from Japan and South Korea will meet next month to discuss Tokyo’s tightened controls on tech-related exports to its neighbor, trade minister Hiroshi Kajiyama said Friday. Read more

    USMCA: Ratification is getting there but ‘difficult issues’ remain

    Financial Post: The push to ratify a new North American trade pact is “getting there” Mexico’s top negotiator says, though some “difficult issues” remain as U.S. Democrats continue to insist on stronger labour enforcement. Read more

    U.S., Canada, Mexico Meet to Push for Final Agreement on USMCA

    Bloomberg: The White House pushed Wednesday to wrap final negotiations with Democrats on President Donald Trump’s top legislative priority, the U.S.-Mexico-Canada Agreement, in meetings with top Mexican and Canadian officials. Read more

    Lower trade barriers helped faster economic and wage growth in Latin America, IDB report

    Mercopress: Latin America and Caribbean region saw faster economic and wage growth thanks to a lowering of trade barriers, a new report by the Inter-American Development Bank shows. The study also provides policy recommendations to ensure the region is better positioned to take advantage of trade liberalization and make its benefits more tangible to citizens. Read more

    Making EU trade deals work for citizens

    EUObserver: As global trade disputes increase, protectionism is on the rise, and climate protection becomes a mainstream political objective, trade is becoming an increasingly political topic. Read more

    STRAIGHT FROM THE WTO

    NEW ON THE CTLD BLOG

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  • Barbados Lower House passes UK-CARIFORUM Bill

    Barbados Lower House passes UK-CARIFORUM Bill

    Alicia Nicholls

    On Tuesday, November 26th, the Barbados House of Assembly at its 57th sitting debated and passed the Economic Partnership Agreement Bill, 2019. Barbados signed the UK-CARIFORUM EPA in March 2019, and this week’s debate was part of the domestic ratification process. The bill is now before the Senate – the Upper Chamber of the country’s bicameral legislature. Once the bill is passed by the Senate and assented to by the Governor-General, it will have the force of law domestically in Barbados.

    The UK-CARIFORUM EPA was the result of technical discussions entered into between the UK Government and CARIFORUM (CARICOM plus the Dominican Republic) countries to roll over the provisions of the EU-CARIFORUM EPA. This was to ensure that CARIFORUM goods and services would continue to benefit from preferential access to the UK market once the UK formally leaves the EU and the EU-CARIFORUM EPA no longer applies to UK-CARIFORUM trade. To date, the UK has completed 19 similar ‘continuity’ agreements cover 49 countries and territories, and accounting for just over 8% of its total trade.

    Leading off the debate, Minister in the Ministry of Foreign Trade, the Hon. Sandra Husbands, M.P., noted that the loss of preferential access to the UK market post-Brexit would have negatively impacted Barbados’ exports to the UK – one of Barbados’ top trading partners. She highlighted that Barbados’ major exports to the UK were sugar and rum, optical parts, condiments, mauby and biscuits. She drew attention to the important role played by the Barbadian diaspora in the UK. She also highlighted that preserving UK-Barbados trade was key to ensuring continued employment in these sectors in Barbados.

    Minister Husbands further lamented the very modest impact the EU-CARIFORUM EPA has had on UK-CARIFORUM trade, and UK-Barbados trade in particular. She contrasted Barbados and CARICOM’s limited performance with that of the Dominican Republic which has seen much greater trade and investment flows with the EU following the EPA.

    The presentation by Minister in the Ministry of Foreign Trade, the Hon. Sandra Husbands, MP. and the ensuing debate may be watched 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.

  • COP25 climate talks: What’s at stake?

    COP25 climate talks: What’s at stake?

    Alicia Nicholls

    Caribbean representatives will shortly join their international counterparts in Madrid, Spain, from December 2-13, 2019 for the 25th meeting of the Conference of the Parties – the decision making body of the United Nations Framework Convention on Climate Change (UNFCCC).

    Climate change is the greatest threat facing the planet, and for many low-lying small island developing States (SIDS), coastal cities and communities, it is an existential one.  In recognition of the climate crisis, leaders from over 190 countries signed the historic Paris Climate Change Agreement in 2015 at the end of COP21 in Paris. Inter alia, they agreed to the ambitious but important goal of keeping global average temperature increases to well below 2 degrees Celsius above pre-industrial levels and to pursue efforts towards a 1.5 degrees Celsius ceiling.

    To achieve this goal, the Agreement’s framers recognised that the world needed to reach global peaking of greenhouse gas (GHG) emissions as soon as possible.  However, with emissions still rising, countries’ levels of climate action and ambition remain too feeble to address the severity of the climate crisis. A significant increase in both at COP25 will be needed if the world is to avert the impending climate disaster.   

    World climate action/ambition still off-track

    The just released United Nations Environment Programme (UNEP) Emissions Gap Report 2019 showed that GHG emissions “continue on an upward trajectory and reached a record high of 55.3 GtCO2e in 2018”. The report found that G20 members, which account for 78 per cent of global GHG emissions, are collectively “on track to meet their limited 2020 Cancun Pledges”.  But, it noted that “seven countries are currently not on track to meet 2030 NDC commitments, and for a further three, it is not possible to say”. The report concluded that greater action by G20 members “will be essential for the global mitigation effort”.

    Making reference to the “large” emissions gap, the Emissions Gap Report further indicated that “in 2030, annual emissions need to be 15 GtCO2e lower than current unconditional Nationally Determined Contributions (NDCs) imply for the 2°C goal, and 32 GtCO2e lower for the 1.5°C goal”. This means the level of ambition in countries’ NDCs – their national commitments for reducing emissions and pursuing adaptation – remains too low to meet the Paris goal. As such, countries will need to agree to deeper emissions cuts in a shorter time frame.

    What will be discussed at COP25?  

    Even in its planning stages, COP25 has already faced and overcome two potential ‘crises’. Firstly, Chile assumed COP25 chairmanship after Brazil reneged on its offer to chair the event, shortly following the election of then incoming President Jair Bolsonaro. Secondly, weeks leading up to the event, Spain stepped in as the host nation after mass civil unrest caused the Chilean government to abandon hosting both the COP25 and an APEC trade summit. As such, the event will be chaired by Chile but held in Madrid. The President-designate of COP25 will be Her Excellency Carolina Schmidt of Chile.

    At COP24 in Poland last year, parties completed the majority of the implementation rules and guidelines of the Paris Agreement – the so called ‘Rulebook”. At COP25, they will continue deliberations to allow for the Agreement’s full operationalization. Key on the agenda to be resolved is establishing rules for implementing Article 6 of the Paris Agreement which pertains to market-based tools for limiting GHGs, such as international carbon markets.  Due to the sensitivity of this issue, the parties were unable to agree on ‘Article 6 rules’ at the COP24 and deferred the issue to COP25.

    Developing countries will, in particular, be concerned about climate finance critically needed for their mitigation and adaptation efforts. The parties at COP25 will also review the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts.   

    Importantly, a goal of COP25 will be ramping up global climate ambition in advance of 2020 – when countries have committed to submitting their revised NDCs and their long-term low GHG emissions development strategies.

    On this note, it would not be lost on participants that the US, the highest producer of GHG emissions on a per capita basis, has formally withdrawn from the Paris Agreement. While the US’ withdrawal will not take effect until November 2020, the Trump Administration has in the interim been reversing environmental regulations, including those enacted under the former Obama Administration.

    To date, the US is the only country to have withdrawn from the Paris Agreement. Other major emitters such as China (the world’s largest producer of GHG emissions on an absolute basis), the EU and India have not followed suit. Indeed, incoming president of the EU executive Commission, Ursula von der Leyen, plans to make the EU “the world’s first climate-neutral continent” by 2050 and has promoted a European Green Deal.

    Although the Trump administration has been reversing federal level environmental regulations, several US states, cities and businesses have maintained their commitment to climate action under America’s Pledge Initiative. According to the America’s Pledge Initiative, these represent “65% of the US population and 68% of the economy”. While this is some comfort, the potential absence of the world’s second largest emitter from the Agreement is a political setback for ratcheting up climate action at a time when the stakes are ever higher.

    Stakes remain high

    The Intergovernmental Panel on Climate Change (IPCC) Special Report on Global Warming of 1.5°C published in 2018 found that human activity has already caused the earth to warm by 1 degree Celsius. Though a point five degree difference may sound negligible, the IPCC report found that even a 2 degree Celsius increase in warming could cause catastrophic impacts. The IPCC also more recently published two other special reports highlighting the real impact of climate change on land, and on the ocean and cryosphere.

    There has been a noticeable increase in the number of climate-related events and disasters internationally, be it droughts, flooding, record wild fires or faster than expected melting of the polar ice caps. These events have affected several countries around the world. But, it must be emphasized, while SIDS contribute the least to climate change (together accounting for less than 1% of global emissions), they are among the most negatively affected by the adverse impacts of climate change. Indeed, rising sea levels are already negatively affecting our fragile coastlines.

    The recent IDB assessment on the effects and impact of Hurricane Dorian in the Bahamas estimated damages at $2.5 billion, and losses at $717.3 million, with most of the damage confined to the Abaco Islands and to a lesser extent, Grand Bahama. According to the IDB report, there were 67 confirmed deaths and 282 missing persons as of 18 October 2019. This is by no means an isolated incident. As sea surface temperatures increase, scientists predict more intense hurricanes.  

    Climate change has already caused shifts in weather patterns with implications for food security and access to water. Besides the human impact, it also threatens the tourism, manufacturing and agriculture industries, which are the economic building blocks, to varying extents, of most of our Caribbean economies.   

    Debate in silos

    On another note, the debate on climate change and trade is still to a large extent occurring in silos. The Paris Agreement does not touch on trade, which is not only a contributor to climate change, but can and has been impacted by climate change. Similarly, trade officials are not among the negotiators at climate talks.

    However, the World Trade Organisation, the global regulator of international trade, has since April 2018 hosted three Natural Disasters and Trade symposia, and will on November 29 host its fourth. With financing from the Permanent Mission of Australia to Geneva, three research studies focused on the macro-economic impacts on disaster-affected countries and the trade issues arising in the disaster response, recovery and resilience-building. The country studies were Nepal, the Caribbean (Dominica and St. Lucia) and The Pacific (Fiji, Tonga and Vanuatu).

    Barbados’ co-hosting of the UNCTAD XV quadrennial conference in October next year is the perfect opportunity to keep climate action high on the trade and development agenda and to bring these two disciplines together.

    In conclusion

    Nearly four years after world leaders gathered at COP21 and negotiated and signed the historic Paris Agreement, levels of climate action and ambition do not match the severity of the impending climate crisis. Certainly, governments, businesses, households, and individuals all have their role to play in reducing their emissions footprint. But it is imperative for governments to set the policy tenor by enacting environmental legislation, and creating an enabling environment for the adoption of renewable energy and climate-friendly practices, products and services. With COP25 a mere week away, what the world needs right now is urgent and coordinated action to step up mitigation and adaptation efforts and accelerate the shift to a climate-friendly and resilient future.

    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.

  • Why the WTO Appellate Body Crisis Matters to the Caribbean

    Why the WTO Appellate Body Crisis Matters to the Caribbean

    Dr. Jan Yves Remy and Alicia Nicholls, SRC

    The Appellate Body (AB) of the World Trade Organization (WTO) – the final court charged with hearing appeals on points of law at the WTO – faces an existential crisis. On 10 December  2019, the terms of two of its remaining three members – the quorum needed to adjudicate an appeal – will expire. Their positions will not be filled if the current United States (US) blockage of appointments continues. This means that new appeals of panel decisions will not be heard after that date.  

    Given Caribbean countries’ limited and ‘checkered’ experience with the WTO dispute settlement (DS) system, it is tempting for the region to be blasé about the current impasse. However, as has been chronicled elsewhere, it is the smallest WTO Members that most need a functioning legal DS system to safeguard their interests when the powerful break the rules.

    In this latest SRC Trading Thoughts, we examine the possible “doomsday” scenario impending at the WTO and explain why Caribbean countries should be concerned by what portends if the AB no longer exists at the WTO.

    Read the full article here.