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Welcome to the Caribbean Trade & Development Digest for the week of June 17-23, 2018! We are happy to bring the trade and development headlines and analysis from across the Caribbean Region and the world from the past week.

REGIONAL

The major regional trade headlines this week focused on the debate  and adoption in the Jamaica House of Representatives of the Report of the Commission to Review Jamaica’s Relations within the CARICOM and CARIFORUM Networks (commonly referred to as the Golding Report after its chairman, former Jamaican Prime Minister, the Hon. Bruce Golding).

Golding Report Headlines

These headlines may be found here:

Jamaica House of Representatives Adopts Report on CARICOM

JIS: The House of Representatives on Tuesday (June 19) adopted the Report of the Commission to Review Jamaica’s Relations within the CARICOM and CARIFORUM Frameworks. Read more 

Jamaica will Continue Relations with CARICOM– PM Holness

JIS: Prime Minister Andrew Holness has reiterated that Jamaica will continue its relationship with the CARICOM. Read more 

Does Caricom need a WTO-type dispute-resolution system?

Jamaica Observer: It cannot be gainsaid that an effective dispute-settlement system is required in any regional trade agreement to ensure the legitimacy of the trade arrangement. Read more 

Jamaica PM Supports Review of CARICOM Contribution Scale

St. Kitts & Nevis Observer: Jamaica’s Prime Minister Andrew Holness has embraced the Bruce Golding-led Caribbean Community (CARICOM) Review Commission’s proposal for greater equity in the assessment and calculation of fees payable to the CARICOM Secretariat and agencies by member states. Read more

Jamaica Isn’t Accepting Recommendation to Give CARICOM Ultimatum on CSME Implementation

Caribbean360: Jamaica’s Parliament has adopted the report of the commission set up to review the country’s relations within the Caribbean Community (CARICOM), but Prime Minister Andrew Holness says government will not insist on the five-year timeline for the implementation of the CARICOM Single Market and Economy (CSME), as recommended in the document. Read more

Minister Shaw Calls for Fair and Rigorous Application of Revised Treaty of Chaguaramas

JIS: Minister of Industry, Commerce, Agriculture and Fisheries, Hon. Audley Shaw, says that the provisions of the Revised Treaty of Chaguaramas must be applied fairly and rigorously in order to result in increased economic development in the region. Read more

Other Regional Headlines 

EU – African, Caribbean and Pacific countries future partnership: Council adopts negotiating mandate

EU: On 22 June 2018, the Council adopted the negotiating mandate for the future agreement between the EU and the African, Caribbean and Pacific (ACP) countries. Read more

EU and 79 ACP Countries Aim at New Partnership to Address Global Challenges

InDepthNews: The heads of state or government of the 28 EU member states, constituting the European Council, have authorized the European Commission to open negotiations for a new partnership agreement with 79 countries in Africa, the Caribbean and the Pacific (ACP). The Group’s Secretary-General Dr. Patrick I. Gomes has greeted the decision. Read more

(Trinidad) Exports up, imports down

Newsday (T&T): T&T Exports rose by 11 per cent in the last quarter of 2017, while imports decreased by 1.5 per cent, year on year, the latest data from the Central Bank has shown, and as expected, the uptick in the energy sector is the reason. Read more 

Fewer Jamaicans Denied Entry to T&T

JIS: The number of Jamaicans being denied entry into Trinidad and Tobago (T&T) continues to decline. Read more 

More engagement needed between CARICOM and Caribbean Diaspora 

South Florida Caribbean News: Guyana’s Ambassador to the United States Dr. Riyad Insanally has suggested that there be a more structured process of engagement between the Caribbean Diplomatic Caucus  in Washington DC and the Caribbean diaspora to ensure that efforts to advance the cause of the region and its people are well defined and co-ordinated. Read more 

Implications for the Caribbean… as US imposes tariffs on steel, aluminium

The Guardian: The Trump administration imposed tariffs on steel and aluminium imports from Canada, Mexico, and the European Union effective June 1, 2018. The implementation of the tariffs are designed to protect the US steel and aluminium industry from foreign producers that undercut domestic prices. Read more

City chamber launches trade councils with India, Canada and Cuba

Stabroek: The Georgetown Chamber of Commerce and Industry (GCCI) yesterday launched three trade facilitation councils in efforts to operationalize memoranda of understanding (MoU) signed with Cuba, India and Canada. Read more 

Cuba Seeking Trade, Investment from Wider Caribbean

St Kitts & Nevis Observer: Businesses in Jamaica and the wider Caribbean are being encouraged to explore opportunities for trade and investment with Cuba. Deputy Minister of Foreign Affairs for Cuba, Rogelio Sierra Diaz, said his Government is seeking to widen cooperation with countries in the region under its foreign investment law. Read more 

T&T reaffirms trade ties with Cuba

Sunday Express: Minister of Trade and Industry Paula Gopee-Scoon recently met with Cuba’s Vice Minister of Foreign Affairs Rogelio Sierra Diaz to discuss, among other things, opportunities for increased trade with Cuba. Trinidad and Tobago is currently Cuba’s largest Caricom trading partner, recording 80 per cent of trade in the region. Read more 

INTERNATIONAL

It was another rollercoaster week in international trade policy news. Norway added itself to the growing list of countries challenging the US’ steel and aluminium duties. Meanwhile, the tariff war between the US, EU and China continued to escalate. 

Norway initiates WTO dispute complaint against US steel, aluminium duties

WTO: Norway has requested WTO dispute consultations with the United States regarding US duties on certain imported steel and aluminium products. The request was circulated to WTO members on 19 June. Read more 

NAFTA’s fate could change timing of 2019 federal election: expert

Global News: An expert on Canada-U.S. relations says he could see Prime Minister Justin Trudeau triggering a federal election earlier than planned next year if the trade war with the United States continues to escalate and NAFTA falls to pieces. Read more

Negotiators must redouble efforts as clock ticks on NAFTA

The Hill: After a short cooling off period, the North American Free Trade (NAFTA) negotiators need to redouble efforts to forge an agreement this summer that all three countries find beneficial. Read more 

WTO members intensify discussions on standards

WTO: WTO members continued their three-year review of the Technical Barriers to Trade (TBT) Agreement, proposing ideas on how to improve implementation of the Agreement at a TBT committee meeting on 19-21 June. Read more 

Brexit: PM urged to speed up no-deal Brexit plans

BBC: Theresa May must prepare to exit the EU with no deal to have “real leverage” in Brexit negotiations, a letter from 60 politicians and business figures says. Read more

US unveils new veto threat against WTO rulings

CGTN: The United States ramped up its challenge to the global trading system on Friday, telling the World Trade Organization that appeals rulings in trade disputes could be vetoed if they took longer than the allowed 90 days. Read more

Commission reports on progress in trade talks with Chile and Mercosur

EU: As part of its commitment to a transparent trade policy, the Commission today published reports from the latest negotiating rounds with Chile and Mercosur. Read more 

EU and New Zealand launch trade negotiations

EU: Today, in the capital of New Zealand, Wellington, Commissioner for Trade Cecilia Malmström and New Zealand’s Minister for Trade David Parker officially launched talks for a comprehensive and ambitious trade agreement. Read more 

EU adopts rebalancing measures in reaction to US steel and aluminium tariffs

EU: The European Commission adopted today the regulation putting in place the EU’s rebalancing measures in response to the US tariffs on steel and aluminium. The measures will immediately target a list of products worth €2.8 billion and will come into effect on Friday 22 June. Read more

EU Pushes for a Revamp of the World Trade Organization

Bloomberg: European Union leaders plan to push for improvements in the way the World Trade Organization operates, saying it’s important to uphold the global commercial order amid “growing” tensions prompted by U.S. President Donald Trump’s tariffs. Read more 

Liked this issue? To read past issues of our weekly Caribbean Trade & Development Digest, please visit here. To receive these mailings directly to your inbox, please follow our blog.

Welcome to the Caribbean Trade & Development Digest for the week of June 10-16, 2018! We are happy to bring the trade and development headlines from across the Caribbean Region and the world from last week:

REGIONAL

‘Tremendous Anxiety” over (Bahamas) WTO Accession

The Bahamas Tribune: The Chamber of Commerce’s chairman yesterday warned there was “tremendous anxiety” over the WTO accession amid the absence of analysis on its likely impact. Read more 

CSME necessary; Consultation raises concerns over architecture

CARICOM: Stakeholders at the just-concluded Stakeholder consultation on the CARICOM Single Market and Economy (CSME) agree that there is value in, and benefits to be derived from the CSME. Read more 

ECLAC chief calls for ‘new narrative’ on international cooperation for C’bean development

Jamaica Observer: The Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), Alicia Bárcena, has called for a “new narrative” on international cooperation for the region’s development. Read more 

CARICOM, Cuba to strengthen cooperation

Jamaica Gleaner: The Caribbean Community (Caricom) and the Government of Cuba have both pledged to continue to strengthen relations in matters related to trade and the arts. Read more 

Jamaica, other CARICOM countries to benefit from new Mexico-FAO initiative

Jamaica Observer:  At least 14 Caribbean Community (CARICOM) countries will design multiple projects to mobilise resources from international sources allowing them to improve the resilience and adaptation of their agriculture, food systems and rural communities to change climate. Read more

Blame Governments, not CARICOM

Barbados Today: Blaming the Caribbean Community (CARICOM) Secretariat for the gaps in implementation of the CARICOM Single Market and Economy (CSME) is unfair, former Prime Minister of Jamaica Bruce Golding has argued. Read more 

Integrity Commissions of Guyana, other Caribbean countries want corruption on CARICOM agenda

Demerara Waves: Guyana’s Integrity Commission is among several other similar bodies in the Caribbean that have called on the 15-nation Caribbean Community (CARICOM) to put  graft and corruption on their agenda and craft Commissioner harmonised legislation to tackle the scourge. Read more 

CARICOM unhappy with single market and economy system

New Amsterdam News: Leaders, former leaders and top officials from across the Caribbean assembled in Guyana last week to review the state of play, progress and problems associated with the decades-old Caribbean Single Market and Economy system, and most said the slow pace of implementation was frustrating them terribly. Read more 

Minister Greene pleased with CARICOM meeting

Antigua Observer: Foreign Affairs, Immigration and Trade Minister Chet Greene is pleased with the outcome of a CARICOM Council meeting for Trade and Economic Development (COTED) in Guyana, which concluded yesterday. Read more

New fund launched to assist CARPHA deal with outbreaks and health emergencies

Jamaica Observer: A fund has been launched to provide financial support and assistance to the Trinidad-based Caribbean Public Health Agency (CARPHA) to manage outbreaks and emergencies with health and humanitarian consequences across the risk management cycles. Read more 

INTERNATIONAL

WTO chief warns of global downturn if trade dispute escalates 

The Economic Times: If the trade conflict between the United States and other countries intensifies, it could negatively impact the global economy and there are indications this is already happening, the head of the World Trade Organization warned in newspaper. Read more 

Opportunities beckon as Singapore and Rwanda ink agreements

The Straits Times: More business and investment opportunities are under way for Singapore and Rwanda, as both countries signed a bilateral investment treaty (BIT) and an air services agreement (ASA) on Thursday. Read more 

India moves ahead with tariffs on US goods

CNN Money: The country has proposed hiking tariffs on 30 US products in order to recoup trade penalties worth $241 million, according to a revised World Trade Organization filing. Read more 

USTR Issues Tariffs on Chinese Products in Response to Unfair Trade Practices

EU-Mercosur Trade Talks Resume in Montevideo, Though 2018 Timeframe Remains Unclear

ICTSD Bridges: Trade negotiators for the EU and Mercosur resumed formal talks last week, with officials announcing “constructive progress” thereafter while stopping short of announcing a timeframe for concluding the long-awaited trade deal. Read more 

American businesses brace for pain from trade fight with China

CNN Money: President Donald Trump’s tariffs on Chinese goods are intended to help American companies that have been hurt by Beijing’s industrial policies. But in the short term, at least, many American businesses may be the ones feeling pain. Read more 

Japan enacts law to ratify Trans-Pacific trade deal

Nikkei Asian Review: The Japanese Diet on Wednesday enacted a law to ratify the 11-nation Trans-Pacific Partnership free trade deal, moving a step closer to completing domestic procedures. Read more 

Colombia has made request to join Pacific trade pact: Mexico

Reuters: Colombia has formally requested permission to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Mexico’s Economy Minister Ildefonso Guajardo said on Friday. Read more

Liberals (Canada) table legislation to ratify Trans-Pacific free trade deal

CBC: The Liberal government introduced legislation Thursday to ratify a free trade deal with 10 other Pacific nations that it says would see Canada get preferential access to some of the biggest and fastest-growing economies in the Asia-Pacific region. Read more 

Australia to start free trade agreement negotiations with the EU

Bloomberg: Australia will begin negotiations with the European Union on a free-trade agreement covering a market with 500 million people and worth $17.3 trillion, making it one of the country’s biggest potential deals. Read more 

Italy won’t ratify EU free-trade deal with Canada: farm minister

Reuters: Italy will not ratify the European Union’s free trade agreement with Canada, its new agriculture minister said on Thursday, ratcheting up an international trade spat and potentially scuppering the EU’s biggest accord in years. Read more

NAFTA talks to continue in tense atmosphere

CNBC: The U.S. and Canada agreed on Thursday to continue negotiating a new NAFTA deal, amid a tense trade environment that includes an announcement Friday of new U.S. tariffs on China. Read more 

EU and Mercosur complete latest talks

EU: The Parties achieved progress on several issues such as services and exchanges were constructive overall but there is still work to be done, notably on cars and car parts, geographical indications, maritime transport and dairy. Read more 

WTO members focus on subsidies for fishing in overexploited stocks at June meetings

WTO: WTO members in the Negotiating Group on Rules on 11-14 June held their second cluster of meetings on fisheries subsidies this year, where they exchanged views and information on subsidies for fishing in overexploited stocks.  Read more 

EIF symposium looks at how to make trade more inclusive for LDCs

WTO: Representatives from 42 least-developed countries (LDCs) met at the first Global Forum on Inclusive Trade for LDCs taking place at the WTO on 13-14 June 2018 to seek ways to further integrate the world’s poorest countries into the multilateral trading system. Read more 

Trade Policy Review: Colombia

WTO: The fifth review of the trade policies and practices of Colombia took place on 12 and 14 June 2018. Read more 

Merkel and leaders of six multilateral agencies call for enhanced global cooperation

WTO: German Chancellor Angela Merkel hosted a meeting with the heads of six multilateral agencies on 11 June in Berlin to discuss ways to foster international economic cooperation to address global challenges and improve the prospects for inclusive and sustainable growth. Read more 

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Photo credit: 3D graphics image by Quince Creative

Alicia Nicholls

Foreign Direct Investment (FDI) inflows to Small Island Developing States (SIDS) rose to $4.1 billion in 2017, representing the second consecutive year of growth and buoyed by an 9% increase in inflows to the ten Caribbean SIDS which grew to $2.7 billion. This is according to the United Nations Conference on Trade and Development (UNCTAD) in the recently released 2018 edition of its World Investment Report.

Although the majority of countries in the region saw declines in FDI inflows, robust increases in Barbados (+25 per cent to $286 million), Saint Kitts and Nevis (+50 per cent to $127 million), and Trinidad and Tobago (from -$17 million in 2016 to $179 million in 2017) were responsible for the growth of 9%.

In total $5 billion in FDI flowed to the Caribbean subregion in 2017. The Dominican Republic was the main recipient of these flows ($3.6 billion) thanks to trade-related investments and its telecommunications and energy sectors, and to a lesser extent, a modest increase in free trade zone activity, UNCTAD Reports. Inflows to Haiti tripled to $375 million, which though still modest may be a sign of positive things to come as several infrastructure and other projects are in the pipeline.

UNCTAD cautioned, however, that FDI inflows to SIDS remain fragile and noted that several projects previously announced had not yet come to fruition. The intergovernmental body further noted that while policy developments to facilitate renewable energy projects were positive, the concentration of these might mean not all SIDS would reap the benefits.

Outflows

Four Caribbean countries also led SIDS globally with regard to FDI outflows, despite those countries each seeing declines in outflows. The Bahamas topped with outflows of $132.3 million, despite a 63.1% decline. In second place was Trinidad & Tobago which saw outflows of $84.2 (-143.6%). The Indian Ocean SIDS of Mauritius was third place ($61.5m, an increase of 1020%). In fourth and fifth place were Jamaica ($42.7m representing a 80% decline) and St. Lucia ($22.1m and a 208.1% decline).

Regional and global contexts

In the wider Latin America and Caribbean region, economic recovery buoyed an 8% increase in FDI inflows to $151 billion, reflecting the first increase in six years but still well below levels in 2011 during the commodities boom. Moreover, UNCTAD further tempered its prospects for FDI in Latin America and the Caribbean in 2018 due to macroeconomic and policy uncertainties.

The global scene is also much more subdued. Global FDI flows dropped 23% in 2017, a three-year low owing to a drop in cross-border mergers and acquisitions and despite growth in global trade and GDP. UNCTAD noted this negative outlook was of concern to policy makers, especially given the importance of FDI to many emerging economies’ sustainable industrial development.

FDI flows to developed economies were $712 billion, representing a fall of one third. FDI flows to developing economies, which accounted for 47% of global FDI inflows, up from 36% in 2016, remained steady rising to $671 billion in 2017.

The full report may be viewed 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.