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  • Caribbean Trade & Development Digest – April 8-14 , 2018

    Welcome to the Caribbean Trade and Development Digest for the week of April 8-14, 2018! We are pleased to share some of the major trade and development headlines and analysis across the Caribbean region and the World. We hope you enjoy this edition.

    REGIONAL

    Poultry producers complain to CARICOM over non-adoption of standards

    Stabroek News: Regional poultry producers have expressed concern at the non-adoption of specifications for their meat and feeds which had been developed by the standards body, CROSQ and approved. Read more

    Trinidad and Tobago judge rules homophobic laws unconstitutional
     
    The Guardian (UK): The ruling, which declared sections of the Sexual Offences Act unconstitutional, may soon lead to decriminalising gay sex. Read more 

    Canada’s PM, Justin Trudeau, meets with CARICOM States

    Breaking Belize News: This afternoon, representatives from CARICOM met with Prime Minister of Canada  Justin Trudeau to discuss trade and the situation with Venezuela. Read more 

    CARICOM Secretary General says CSME is a “work in progress”

    Nation News: The Caribbean Community (CARICOM) Secretary General , Irwin La Rocque says while the CARICOM Single Market and Economy (CSME) continues to be a work in progress, it is sufficiently advanced to be used more effectively by the regional private sector. Read more 

    CARICOM busy laying the groundwork for restructuring

    Antigua Observer: CARICOM is pressing ahead with plans to ensure the restructuring of the governance of West Indies cricket, undeterred by the International Cricket Council’s request to have Cricket West Indies president, Dave Cameron, present at any meeting between the two bodies. Read more

    Harmonised Cross Border Trade Needed for CARICOM Economic Integration

    St Kitts & Nevis Observer: Harmonised approaches to conducting trade across borders in the Caribbean and effective customs valuation are among the steps that must be taken towards full economic integration within the Caribbean Community (CARICOM). Read more 

    WTO

    Strong trade growth in 2018 rests on policy choices

    WTO: World merchandise trade growth is expected to remain strong in 2018 and 2019 after posting its largest increase in six years in 2017, but continued expansion depends on robust global economic growth and governments pursuing appropriate monetary, fiscal and especially trade policies, WTO economists said. Read more 

    WTO members discuss ways of improving the transparency of regional trade agreements

    WTO: WTO members discussed how to improve work on enhancing the transparency of regional trade agreements (RTAs) at a meeting of the Committee on RTAs on 9-10 April at the WTO. They reviewed five RTAs covering countries in Europe, Asia and Africa. The new chair of the committee, Ambassador Julian Braithwaite of the United Kingdom, presided at this first committee meeting of 2018. Read more

    China initiates WTO dispute complaint against US tariffs on steel, aluminium products

    WTO: China has requested WTO dispute consultations with the United States concerning certain US duties imposed on imports of steel and aluminium products. The request was circulated to WTO members on 9 April. Read more 

    WTO establishes two panels to rule on US lumber duties

    WTO: At the request of Canada, the WTO’s Dispute Settlement Body (DSB) agreed on 9 April to establish two panels to examine Canada’s complaints regarding anti-dumping and countervailing duties imposed by the United States on imports of Canadian softwood lumber. Read more 

    Korea files appeal against WTO panel ruling regarding Japanese food import restrictions

    WTO: Korea filed an appeal on 9 April against a WTO panel report in the case brought by Japan in “Korea — Import Bans, and Testing and Certification Requirements for Radionuclides” (DS495). The panel circulated its report on 22 February 2018. Read more 

    WTO issues panel report regarding Korean duties on pneumatic valves from Japan

    WTO: On 12 April the WTO circulated the panel report in the case brought by Japan in “Korea — Anti-Dumping Duties on Pneumatic Valves from Japan” (DS504). Read more

    INTERNATIONAL

    (New Zealand) PM looking to start EU trade negotiations

    News ZB: Trade will be top of the agenda for the PM when she meets with French President Emmanuel Macron in Paris later today. Read more

    The five biggest threats to the WTO

    Bloomberg: The World Trade Organization is facing the greatest crisis of its 23-year existence. President Donald Trump doesn’t believe the WTO can handle the problems created by China’s rapid economic ascent and is fundamentally challenging the rules that govern international trade. Read more 

    Mexico Pushes to Finish Trade Deal With EU This Month

    Bloomberg Politics: Mexican trade negotiators are pushing to finish work on an updated free-trade agreement with the European Union ahead of a trip by President Enrique Pena Nieto to the region later this month, according to three people familiar with the plan. Read more 

    IMF warns about trade war

    CNN Money: Calling on countries to steer clear of protectionism, IMF Managing Director Christine Lagarde said in a speech that the “system of open trade based on rules and shared responsibility is now in danger of being torn apart”. Read more 

    Kenya makes strong bid to host global trade chambers conference

    The Standard (Kenya): Kenya has put up a strong bid to beat its fiercest competitors, including Dubai, in hosting the largest global commerce congress in 2021. Read more

    Trump Proposes Rejoining Trans-Pacific Partnership

    New York Times: President Trump, in a sharp reversal, told a gathering of farm-state lawmakers and governors on Thursday morning that the United States was looking into rejoining a multicountry trade agreement known as the Trans-Pacific Partnership, a deal he pulled out of days after assuming the presidency. Read more

    Main-streaming blockchains in global trade

    Hindu Business Line: Distributed Ledger Technology (DLT), a concept of recording and sharing data across multiple data stores, or ledgers as they are popularly called, is an idea whose time has come. The concept of DLT was introduced through block chains in the famous paper by the elusive author known only as Satoshi Nakamoto in 2008.Read more

    More than half of the UK wants public vote on Brexit deal: survey

    Euronews: The majority of people in the UK want a “people’s vote” on the final Brexit deal, according to a new survey in which some 52% of respondents expressed support for the idea. Read more 

    Britain eyes former colonies to plug post-Brexit trade gap

    NBCNews: With Britain less than a year away from leaving the European Union, but yet to secure any new trade deals, London is eyeing former colonies for help fill its post-Brexit trading hole. Read more 

    U.S. Offers Compromise on Autos, Boosting Hopes for Nafta Deal

    Wall Street Journal: The Trump administration is hammering out a compromise on auto-industry rules at the center of the North American Free Trade Agreement, increasing the chances that the U.S., Mexico and Canada can reach a deal this spring to revise the pact. Read more 

    Brussels mulls offer of trade deal to Trump, if he drops tariff threat

    Politico: The European Commission is developing a plan to offer Donald Trump the prospect of a trade deal with the EU in exchange for a permanent exemption from U.S. steel and aluminum tariffs, according to five EU officials and diplomats. Read more 

    BONUS

    WTO Press Conference on Trade Outlook

    Audio available here.

    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.

  • Plastic Waste Emergency in Caribbean Sea: What is the Region Doing About It?

    Plastic Waste Emergency in Caribbean Sea: What is the Region Doing About It?

    Alicia Nicholls

    The 2.75 million square km Caribbean Sea’s ecological value is perhaps only outweighed by its economic value to the countries and territories, many of which are small island developing states, whose major industries and the livelihood of their populations depend on the health of the marine environment.

    A 2016 World Bank Report entitled Toward a Blue Economy: A promise for Sustainable Growth in the Caribbean estimated the total gross revenues of the Caribbean ocean economy at US$407 billion based on 2012 data. Considering only the Caribbean small island States and territories, these gross revenues were estimated at US$53 billion, equivalent to over 18 percent of the total GDP for all Caribbean Island States and Territories in 2012″, according to this report.

    Threats to the Caribbean Sea are numerous, but one of the biggest is the accumulation of plastic waste material.  The above-mentioned World Bank Report noted that the Caribbean Sea “is estimated to have relatively high levels of plastic concentrations compared with many other large marine ecosystems”.

    Major culprits are plastic shopping bags, as well as Styrofoam containers and plastic cutlery which are commonly used by street food vendors, food establishments and at festivals and parties. These materials take hundreds of years to decompose, while in the meanwhile clogging drains and being blights on the beaches and other landscape. Plastic waste is often transported through waterways into the ocean via normal rainfall or flooding, and poses serious danger to marine life and coral reefs, with knock-on effects for fisheries, food security and tourism.

    Legislative approaches

    Several countries in the Caribbean have taken steps to tackle the plastics problem. Haiti was among the first, banning the importation, marketing and sale of plastic products in 2012 by presidential decree, with mixed results.

    In 2016 Guyana banned the importation, sale and manufacture of expanded polystyrene products (styrofoam) and its regulations have served as a model for several other countries. Bans on the importation, sale and/or manufacture of various plastics have also been done in Antigua & Barbuda, Aruba, St. Vincent and the Grenadines, and the US Virgin Islands.

    In Antigua & Barbuda, for instance, the External Trade (Shopping Plastic Bags Prohibition Order) of 2017 prohibited after June 30, 2016 the importation, distribution, sale and use of shopping bags, except for those set out in the schedule. Another order, the External Trade (Import Prohibition) Order of 2017 takes a phased approach to banning certain polystyrene items, such as food service containers, utensils and the like. However, airline carriers, private charters and passenger cruise vessels are exempted from these rules. According to news reports, while larger retailers have been generally adhering to the ban, achieving compliance by some small retailers has been more challenging.

    Some other Caribbean countries are also contemplating similar measures. In 2017 the Government of Jamaica appointed a multi-stakeholder committee to make recommendations regarding plastic and Styrofoam. A petition has been launched by activists in Trinidad & Tobago for banning plastics.

    Market-based approaches 

    Market-based approaches have also been used to a limited extent, such as imposing point of sale charges for plastic bags as a disincentive to consumers. In Barbados, for example, a well-known environmental charity lobbied to have retailers charge consumers extra for plastic bags, and to encourage consumers to opt for reusable bags, with some limited success.

    Lessons Learnt So far 

    1. Strong enforcement and monitoring are needed to ensure compliance with the regulations. Under the Guyana Regulations, for example, the Environmental Protection Agency is empowered to conduct inspections and investigations to ensure compliance with the ban.
    2. Fines should be high enough to serve as a deterrent to non-compliance. In the US Virgin Islands, businesses found to be in violation are liable to a civil fine of not less than US$500 nor more than US$1,000 for each day of violation.
    3. Fines collected should be allocated towards some kind of environmental fund, environmental or waste management improvement agencies or programmes. Under the US Virgin Islands’ legislation, the monies collected are to be allocated as follows: 75 percent to the Virgin Islands Waste Management Authority; and 25 percent to the General Fund of the Treasury of the Virgin Islands.
    4. The penalty for non-compliance is generally fines or a term of imprisonment. However, community service is another option which could be used.
    5. Resistance by consumers and some business owners has delayed the implementation of the bans in some cases. Retailers incur losses from unused stock, and some consumers see the measures as an inconvenience or just another  tax. A phased approach is, therefore, preferable to allow retailers, wholesalers and the like time to get rid of as much of the stock, and shift to more environmentally-friendly products, while also giving the relevant implementing agency and civil society time to educate the public about the importance of the measures to be introduced. A possible option is also the issue of incentives, such as tax waivers for the importation of environmentally-friendly substitutes.
    6. As such, legislative and/or market-based approaches have to be married with strong stakeholder engagement, public education and sensitisation campaigns to change ingrained cultural behaviours and attitudes towards the use and disposal of plastics, to educate the public about the environmental harm caused by marine waste, to encourage public buy-in and to show persons more environmentally-friendly alternatives. To this effect, the Guyana Regulations mandate the Environmental Protection Agency to “offer guidance on, promote and encourage the utilisation of recyclable, biodegradable and other environmentally friendly products as containers, or packaging for food products”. The St. Vincent & the Grenadines Regulations also provide for the same.
    7. On-going monitoring of the impact of these measures is crucial in order to determine their effectiveness and what adjustments are needed in ensure the desired results are being  obtained. This requires conducting an adequate baseline study before the measures are implemented and collecting data on a regular basis.
    8. Besides curbing plastic consumption, another problem is proper waste management. Latin America and the Caribbean accounted for 12% of waste generation by region per year, according to a World Bank publication. According to the publication, “the total amount of waste generated per year in this region is 160 million tonnes, with per capita values ranging from 0.1 to 14 kg/capita/ day, and an average of 1.1 kg/capita/day.” Within this grouping, the largest per capita solid waste generation rates are found in the islands of the Caribbean, the Report notes. As such, encouraging individuals, households and businesses to reduce their waste, recycle and to find more environmentally sustainable ways of managing waste is vital.

    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.

  • Caribbean Trade & Development Digest – March 18-24, 2018

    Caribbean Trade & Development Digest – March 18-24, 2018

    Welcome to the Caribbean Trade and Development Digest for the week of March 18-24, 2018! We are pleased to share some of the major trade and development headlines and analysis across the Caribbean region and the World. We hope you enjoy this edition.

    REGIONAL

    CDB programme to support increased trade among CARICOM states

    St. Kitts & Nevis Observer: The Board of Directors of the Caribbean Development Bank (CDB) has approved USD$750,000 in funding for a programme that will assist the Caribbean Community (CARICOM) with strengthening intra-regional trade. Read more 

    Is Guyana ready for an oil boom?

    Eurasia Review: Guyana’s story shares many similarities with the story of the ugly duckling. One of the poorest countries in South America, it has historically been entirely dependent on oil imports. Read more 

    Catfish exports

    Stabroek (Guyana): It is incomprehensible that the government here was given notification by the US government in November, 2015 of new regulations for Siluriformes (catfish) and failed to take all of the required steps to enable continued exports from Guyana. Read more 

    North America continues to dominate imports into the TCI -Gov’t makes moves to improve trade with Caribbean neighbours

    Turks & Caicos Weekly News: The North American Free Trade Agreement (NAFTA) continues to dominate imports into the Turks and Caicos Islands, accounting for $394.1 million or 91.1 percent of the total import bill for 2017. Read more 

    What is the value of CARICOM to Curacao and Sint Maarten (and to ALL Caribbean nations)?

    St. Lucia Star: Earlier in March news broke that the Caribbean Community (CARICOM) was officially assessing the application of Curacao and Sint Maarten for associate membership. These two islands are separated by 900 km of water but they share a cultural heritage, central bank, and a view that within CARICOM a brighter future awaits them. Read more 

    Lessons from EPA must inform Post-Cotonou Agreement – Trade Expert

    Business Ghana: Mr Tetteh Hormeku, Head of Programmes at the Third World Network, has advised governments in the African, Caribbean and Pacific (ACP) countries to use lessons from the Economic Partnership Agreement (EPA) for the post-Cotonou possible framework. Read more 

    INTERNATIONAL

    Forty-four countries sign historic African Union free trade agreement

    Africa News: Forty-four African countries have signed up to a historic trade agreement aimed at paving the way for a liberalized market for goods and services across the continent. Read more

    Fiji-PNG discuss trade relations with UK post-Brexit 

    Fiji Times: The United Kingdom has begun the process of exiting the European Union (EU) and in this endeavour, it is working with the African, Caribbean, and Pacific (ACP) countries to avoid any trade disruptions, during and post-withdrawal. Read more 

    Brexit: Government still planning for no deal scenario

    The Independent: David Davis has said the Government will continue to plan for a no-deal scenario despite reaching an agreement with Brussels on the transition period last week.  Read more 

    Mercosur “blocks” talks on auto exports and government procurement contracts, claims EU

    Mercopress: European officials said this week that significant obstacles remain to a long-delayed trade deal between the European Union and Mercosur, even as South American officials expressed optimism a deal would be finalized soon. Read more

    Heatwaves, hurricanes, floods: 2017 costliest year ever for extreme weather and climate events, says UN

    Mercopress: Hurricanes, monsoon floods and continuing severe drought made 2017 the costliest year ever for severe weather and climate events, according to a new report by the United Nations weather agency launched on the eve of World Meteorological Day. Read more 

    India Hosting Mini-Ministerial meet to break WTO impasse 

    Economic Times: Taking a lead to break the impasse, India is hosting a two-day informal meeting of 50 WTO members here which would deliberate upon ways to create a positive atmosphere for carrying forward the mandate of the global trade organisation.  Read more

    G20 pushes for free trade as U.S. vows to defend national interest

    Reuters: World financial leaders pleaded for an endorsement of free trade on Monday amid worries about U.S. metals tariffs and looming trade sanctions on China, but Trump administration officials said they would not sacrifice U.S. national interests. Read more

     

    China threatens to raise tariffs on about $3 billion of U.S. imports

    Washington Post:  President Trump embarked Thursday on the sharpest trade confrontation with China in nearly a quarter-century, moving toward imposing tariffs on $60 billion in Chinese goods and limiting China’s freedom to invest in the U.S. technology industry. The Chinese government fired back hours later, threatening to hit $3 billion in U.S. goods with tariffs. Read more 

    US and South Korea Reach Agreement on Trade, Steel Tariffs

    Bloomberg: The U.S. and South Korea reached an agreement on revising the allies’s six-year-old bilateral trade deal and President Donald Trump’s plan to impose tariffs on imported steel, Treasury Secretary Steven Mnuchin said. Read more 

    EU Commission welcomes adoption of negotiating directives for a multilateral investment court

    EU: The Commission welcomes today’s adoption by the Council of the negotiating directives for a multilateral investment court, as well as the fact that for the first time the Council makes its negotiating mandate public right at the time it is adopted. Read more 

    WTO members raise concerns over US tariffs on steel and aluminium at Goods Council

    WTO: WTO members expressed concern over the United States’ imposition of higher tariffs on steel and aluminium imports and the impact they may have on the global trading system at a meeting of the Council on Trade in Goods on 23 March, the same day the new US measure came into effect. The US responded by saying that the tariffs are necessary to address the threat these imports pose to national security. Read more 

    Appellate Body issues report regarding Russian duties on vehicle imports from Germany, Italy

    WTO: On 22 March 2018, the WTO Appellate Body issued its report in the case “Russia — Anti-Dumping Duties on Light Commercial Vehicles from Germany and Italy” (DS479). Read more 

    WTO issues compliance panel report regarding US countervailing duties on Chinese imports

    WTO: On 21 March a WTO panel issued its compliance report in the dispute “United States — Countervailing Duty Measures on Certain Products from China — Recourse to Article 21.5 of the DSU by China” (DS437). 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.

  • Brexit: Provisional Transition Deal Struck between EU and UK

    Brexit: Provisional Transition Deal Struck between EU and UK

    Alicia Nicholls

    A provisional agreement has been struck between the European Union (EU) and the United Kingdom with regard to the terms of the latter’s withdrawal from the EU.

    The 129-page provisional withdrawal agreement touches on a wide number of areas from  residence, employment rights and social security systems to public procurement and cooperation in criminal and civil matters. The Agreement provides for a transition period lasting from the date of entry into force of the Agreement until 31 December 2020.

    Most of the provisions have been agreed to, with some remaining areas still subject to further negotiation. One of these unresolved areas is the Draft Protocol on Ireland/Northern Ireland.

    A key concession is that the UK will be able to negotiate trade deals with third States during the transition period.

    Some aspects of the provisional deal, however, have received some push back in the UK. A particular sore point is that UK fishing policy will continue to be Brussels-controlled during the transition period, although the agreement provides for the UK to be “consulted”.

    More details to come

    The text of the provisional agreement may be found 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.