Caribbean Trade Law and Development

Tag: african union

  • 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.

  • CARICOM and the African Union to deepen ties: Why this is a good idea!

    CARICOM and the African Union to deepen ties: Why this is a good idea!

    Alicia Nicholls

    Caribbean-African relations have become an exciting and refreshing trade space to watch in recent months. Over the past few weeks, two African leaders (Their Excellencies President Nana Akufo-Addo of Ghana and President Uhuru Kenyatta of Kenya) paid separate official visits to the Caribbean. Barbados’ Prime Minister, the Hon. Mia Amor Mottley also paid a state visit to Morocco in June 2019.

    It was also announced earlier this month that the Caribbean Community (CARICOM) would over the next year seek to deepen and formalise cooperation with its African equivalent – the African Union (AU). This article takes a brief look at why formalization of south-south cooperation and engagement between CARICOM and the African Union is a good idea.

    CARICOM and AU have more similarities than differences

    The formal relationship between the two regions has been mainly through their participation in the Africa, Caribbean, Pacific (ACP) and the Commonwealth of Nations groupings, and not directly bilateral. But change is on the horizon. In 2012, Heads of State and Government of the African Union, the Caribbean and South America concluded the Global African Summit with a declaration which outlined a plan of action for forging political, economic and social cooperation between the AU and ‘all inter-governmental entities in regions in which African Diaspora populations are part of’, which includes CARICOM.

    As I wrote in a previous article a couple of weeks ago, there is much promise for expanding and deepening economic and political relations between Africa and the Caribbean. A boost would be, of course, formal collaboration between CARICOM and the AU.

    CARICOM is an intergovernmental organization of fifteen mostly English-speaking Caribbean States and territories founded on July 4, 1973 by the Treaty of Chaguaramas (revised in 2001). It was preceded by the Caribbean Free Trade Agreement (CARIFTA) which lasted from 1968-1973 and the West Indian Federation (1958-1962). CARICOM has a collective population of approximately 18 million. Its secretariat is based in Georgetown, Guyana. Twelve CARICOM Members are currently full members of the CARICOM Single Market and Economy (CSME).

    The AU is a 55-nation pan-continental, intergovernmental organization which was officially launched in July 2002. The AU has a population of just over 1 billion. Its secretariat is in Addis Ababa, Ethiopia. The AU has launched Agenda 2063, an ambitious plan to transform the continent into a global powerhouse. There are currently eight regional economic communities considered ‘building blocks’ of the AU, and diaspora relations are also integral to the AU.

    Both CARICOM and the AU are intergovernmental organisations which encompass post-colonial States with cultural and linguistic differences, facing a myriad of challenges and varying levels of development. Both are in the process of wide-scale regional integration projects. CARICOM, for instance, is in the process of trying to consolidate its CSME. The African Continental Free Trade Agreement (AfCFTA), which was signed in March 2018 and currently has 54 signatories, seeks to create a seamless pan-African economic space. The AfCFTA came into effect in May 2019 and the process has started for the Agreement’s operationalization.

    There are, of course, differences between the two regions which may impact on the policy and negotiating positions taken in multilateral fora. For example, most CARICOM countries are services-based (mainly tourism and/or financial services) economies, with the exception of Belize, Guyana, Suriname and Trinidad & Tobago where commodities trade is important. In the mostly resource-rich African countries, however, commodities trade is king. Most Caribbean countries are Small Island Developing States (SIDS), while those in the AU include mainly landlocked and coastal continental States. The only six AU SIDS are Comoros, Guinea Bissau, Mauritius, Sao Tome e Principe and Seychelles. Moreover, 33 of the 55-member AU are classified by the United Nations (UN) as Least Developed Countries (LDCs), while Haiti is the only LDC in CARICOM.

    Despite these differences, which should not be overlooked, I believe the prospects for CARICOM/AU collaboration and engagement are very promising. Both regions can learn from each other as they seek to deepen their integration projects. There is also scope for closer Caribbean/Africa multilateral collaboration on issues of mutual interest, such as confronting the growing threat of unilateralism and protectionism; the achievement of the United Nations’ 2030 Agenda and its 17 Sustainable Development Goals (SDGs) and their targets; de-risking by global banks; climate change; reform of the World Trade Organisation (WTO); securing reparations, to name a few. Intra-regional cooperation prospects are also promising in many areas such as agriculture, education, the creative industries, renewable energy, medicine/health, the blue and green economies, sports, information and communications technology (ICTs), for example.

    Moreover, Barbados’ upcoming co-hosting of the UNCTAD 15 Quadrennial in October 2020 provides further prospects for collaboration on important multilateral trade and development issues. It is interesting to note that UNCTAD 14 was held in Nairobi, Kenya so there is the opportunity for Kenya to share with Barbados its experience in the successful hosting of the UNCTAD 14.

    Plans for Deepening CARICOM/AU ties  

    A press release issued by the CARICOM Secretariat noted that CARICOM Secretary General Ambassador Irwin LaRocque and Deputy Chair of the African Union Commission (AUC), His Excellency Kwesi Quartey, discussed the need for continued ACP solidarity in the on-going negotiations for the Post-Cotonou Agreement with the European Union (EU) and agreed to explore collaboration on multilateral areas of concern, such as climate change.

    The CARICOM press release further noted that the two leaders “took the opportunity to consider some of the areas in which their two organisations could work together including the formalisation of an institutional relationship between CARICOM and the AU to promote cooperation and to strengthen the deep bond of friendship between Africa and the Caribbean.”

    Moreover, St. Lucia Times has quoted St. Lucian Prime Minister, the Hon. Allen Chastanet, as stating that there will be a planned CARICOM and the AU Summit and the signature of a Memorandum of Understanding establishing a framework for engagement and cooperation. Prime Minister Chastanet is further quoted by this news agency as stating that “Barbados and Suriname will partner in establishing an Embassy in Ghana, while Barbados and Saint Lucia will partner in establishing an Embassy in Kenya.”

    During President Kenyatta’s visit, Barbados and Kenya have also committed to negotiating a Double Taxation Agreement and Bilateral Investment Treaty with each other, and discussed collaboration in areas such as ICTs, renewable energy, sports, the blue economy, health, education and air services. Kenya has also sought the Caribbean’s support in its bid for a seat on the UN Security Council.

    While this high-level political commitment to greater Caribbean-African engagement is needed and commendable, it is firm to firm, university to university and people to people collaboration which will transform deeper Caribbean-African relations from an aspiration to reality. An important step, therefore, will also be formalizing relations between private sector organisations, business support organizations, investment promotion agencies, universities and tourism boards in the Caribbean and Africa in order to promote Caribbean-Africa trade and investment in both traditional and emerging sectors, research and tourism. On this note, it was welcomed news that there will be commencement of engagement between the private sectors of Barbados and Kenya, as well as deeper university collaboration.

    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.