Caribbean Trade Law and Development

Tag: Brexit

  • Caribbean Trade & Development Digest – October 27- November 2, 2019

    Caribbean Trade & Development Digest – October 27- November 2, 2019

    Welcome to the Caribbean Trade & Development News Digest for the week of October 27-November 2, 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.

    THE WEEK’S HIGHLIGHTS

    ASEAN held its 35th Summit in Thailand on November 2-3. The chair’s statement may be read here. Any hopes of a RCEP deal before the end of this year appear to have been dashed. Read more

    On the Brexit front, the EU has given the UK an extension until January 31st. The UK will also hold a general election on December 12.

    CARICOM representatives will meet in Barbados on Monday, November 4 to discuss the CARICOM Single Market and Economy (CSME). There will also be a Public Town Hall on the CSME that evening.

    REGIONAL NEWS

    Regional consultation on CSME

    BarbadosToday: As Barbados leads efforts to ensure that the CARICOM Single Market and Economy (CSME) is implemented in the region, a special stakeholders’ conference on the subject will take place on Monday, November 4. Read more

    CCJ to give CSME ruling within ‘reasonable time’

    Jamaica Observer: The Caribbean Court of Justice (CCJ) says it will give an opinion “within a reasonable time” as it concluded hearing arguments in the request for an advisory opinion by the Caribbean Community (CARICOM) that could have implications for the CARICOM Single Market and Economy (CSME) that allows for the free movement of goods, skills, labour and services across the region. Read more

    Bahamas’ $75 Million Spiny Lobster Fishery Has Been Set Back Years In The Wake Of Hurricane Dorian

    Forbes: Hurricane Dorian, which battered the Bahamas between September 1st and 3rd 2019, has devastated the islands’ $75 million Caribbean spiny lobster fishery. Read more

    CCJ grappling with advisory opinion on whether CARICOM states can opt out of free movement categories

    Stabroek News: The Caribbean Court of Justice (CCJ) yesterday held the first of two hearings, its first ever advisory opinion proceedings, which concern whether a member state of the Caribbean Community (CARICOM), may opt out of a decision of the Conference of Heads of Government to extend the class of workers allowed to move work freely across CARICOM, and the legal effect of such opting out. Read more

    Central Bank exploring ‘early introduction’ of digital currency on Abaco post-Dorian

    EyeWitnessNews: The Central Bank is exploring whether to bring about an early introduction of digital Bahamian currency on Abaco to enable rapid financial service recovery Central Bank Governor John Rolle said yesterday. Read more

    Barbados exploring ways to widen trade with CARICOM countries

    RJRNews: Barbados is exploring opportunities for development in a wide range of areas in Guyana and Suriname as it responds to a call to deepen trade between member countries of CARICOM. Read more

    Bartlett calls for investment beyond hotel rooms

    Jamaica Observer: Minister of Tourism, Edmund Bartlett has made a call for investment in the tourism industry to go beyond the development of hotel rooms and other infrastructure. Read more

    INTERNATIONAL NEWS

    Global trade: for the people, by the people – Why the world still needs a rules-based trading system

    Medium: For those of us interested in trade issues and global trade sustainability, the World Trade Organization (WTO) Public Forum , held yearly at the WTO Secretariat in Geneva, Switzerland is THE place to be in early October. Read more of this article by trade lawyer Magda Theodate here.

    Angela Merkel calls for ‘fresh attempt’ at EU-India trade deal

    Deutsche Welle: German Chancellor Angela Merkel wrapped up her trip to India with the announcement of a billion-euro investment into green projects in the country. Merkel placed climate change at the center of her talks in India. Read more

    Trade between Iran, EU at nearly €3.5b in 8 months

    Tehran News: According to the latest data provided by the statistical office of the European Union, Eurostat, the trade between Iran and the EU nations has decreased by 75 percent compared to last year’s same period in which the figure stood at €14.292 billion. Read more

    Indonesia reviewing terms of EU trade deal as WTO palm oil spat brews: vice foreign minister

    Reuters: Indonesia’s vice foreign minister Mahendra Siregar said Jakarta is reviewing a draft trade deal with the European Union in the run-up to filing a complaint against the trading bloc with the World Trade Organization (WTO) over use of palm oil in biofuels. Read more

    World’s biggest trade deal to be delayed to 2020: Draft ASEAN statement

    Channel News Asia: The signing of the world’s largest trade pact will likely be kicked back to 2020, according to a draft statement by Southeast Asian leaders, delaying a deal craved by China to offset a painful tariff war with the US. Read more

    Brexit: Johnson agrees to Brexit extension – but urges election

    BBC: Labour has “run out of excuses” to oppose an early election, Boris Johnson has said, as MPs vote on whether to back his call for a December poll. Read more

    Pelosi Calls USMCA ‘Easiest Trade Deal,’ Could Get Vote in 2020

    Bloomberg: House Speaker Nancy Pelosi said President Donald Trump’s new Nafta agreement is the “easiest trade deal that we’ve ever done.” Read more

    Trump ends trade benefits for Cameroon over ‘persistent human rights violations’

    Washington Post: President Trump said he will soon ax Cameroon from a trade program that allows African countries to sell goods to the United States on a duty-free basis, citing “persistent human rights violations” in a letter to Congress on Thursday. Read more

    UK set for 12 December general election after MPs’ vote

    BBC: The UK is set to go to the polls on 12 December after MPs backed Boris Johnson’s call for an election following months of Brexit deadlock. Read more

    ASEAN summit grapples with US-China trade war

    Deutsche Welle: Southeast Asian leaders have gathered in Bangkok for a three-day summit expected to be dominated by trade. ASEAN members are trying to finalize a China-backed plan to create the world’s biggest free trade area. Read more

    RCEP ministers fail to reach agreement

    Bangkok Post: Ministers from 16 Asia-Pacific nations failed to reach an agreement on creating the world’s largest free trade area at their meeting on Friday, a Thai negotiator suggested, but some are optimistic about the chances of a deal by year-end. Read more

    China may impose $3.58 billion in annual trade sanctions on U.S.: WTO panel

    Reuters: A World Trade Organization (WTO) panel said on Friday that China was entitled to slap compensatory sanctions on U.S. imports worth $3.579 billion annually for the U.S. failure to remove anti-dumping duties – roughly half the amount China had sought. Read more

    WTO panel rejects India’s arguments

    Business Standard: Exporters can rest assured that there is no threat to the Advance Authorisation Scheme, Duty Drawback Scheme and four specified entries under DFIS. Read more

    STRAIGHT FROM THE WTO

    NEW ON THE CTLD BLOG

    The Caribbean Trade & Development Digest is a weekly trade news digest produced and published by the Caribbean Trade Law & Development Blog. Liked this issue? To read past issues, please visit here. To receive these mailings directly to your inbox, please subscribe to our Blog below:

  • Theresa May’s Resignation: What are the implications?

    Theresa May’s Resignation: What are the implications?

    Renaldo Weekes, Guest Contributor

    In 2016, the United Kingdom (UK) held the now famous ‘The United Kingdom European Union (EU) Membership referendum’ in which it voted to leave the EU. Due to then-Prime Minister David Cameron’s resignation over the result of the referendum, Theresa May became the Conservative party leader and concomitantly, Prime Minister of the United Kingdom of Great Britain and Northern Ireland. What followed was a tumultuous few years as Mrs. May tried to negotiate a deal that would satiate the country and the House of Commons.

    As she came to realise, however, this was no easy task. Disagreements over whether there should be a clean break from the EU with no deal, trading on World Trade Organization (WTO) rules, or a deal that would tie the UK to the EU in some form ensued. When a deal was finally crafted, Members of Parliament (MPs) from all across the Commons, including those in May’s own Conservative party, showed their displeasure for it as they rejected it three times. Though she tried to secure some changes, the EU effectively ruled that out. Fed up with the situation, many of her cabinet members began to resign and many MPs started calling for her own resignation as well.

    Amidst of all this, Theresa May argued that her deal was the best deal they could get and that she would not resign. That, however, did not last long. In an effort to persuade the Commons to support her deal, she promised she would resign if they voted for it. That was not enough, however, and now she has finally announced on Friday, May 25, 2019, that she will resign as Conservative party leader on June 7 and subsequently, Prime Minister of the UK. All problems do not end with Theresa May, however. In fact, some new ones now arise. One must ask what Theresa May’s resignation means for the Brexit withdrawal deal and the United Kingdom’s trade policy with other countries.

    A New Prime Minister and a new deal?

    Theresa May’s resignation has sparked a competition for leadership of the Conservative party and the UK as a whole. This means that all conservative MPs who were dissatisfied with May’s handling of Brexit now have the chance to correct all of her wrongs. At first, it may seem as though the party may choose one of the many vocal, hardline Brexiteers who wish to see a no-deal scenario, such as former Foreign Secretary Boris Johnson, to become the next Prime Minister since those hardliners are often credited as obstructing the passing of May’s deal. However, we must not forget that the Conservative Tory party is also made up of persons who wish to have a close relationship with the EU or even to remain in the Union. Those varying stances have all played a part in why May’s deal has been rejected. They all agreed on what they didn’t want but must now agree on what they want. Some Tory MPs have publicly said that will oppose the selection of someone like Mr. Johnson as his plans for a no-deal Brexit are too reckless.

    Let us consider a scenario where a no-deal supporter became the Prime Minister. Presumably, he may just rip up the deal and choose to exit the EU on WTO terms. This is next to impossible, however, as the House of Commons has already rejected a no-deal scenario under Theresa May. It is far less likely that those opposed to a no-deal withdrawal will change their minds just because of a new face. Especially if that new face is acting more ideological than pragmatic. If a no-deal scenario were to succeed, it would create massive disruption to operations and supply of goods as many businesses have deep ties within the EU that help them to survive. There will be an eventual recovery but how long will that recovery take? Would it really be wise to risk financial stability for the sake of satisfying an ideological point?

    What about a deal-supporting Conservative? There are many MPs who want to leave the EU with a deal but they differ on what they want in the deal. Some want an arm’s length relationship in the deal while others want to be as close as possible to the Union with a customs union or what has been dubbed as the common market 2.0. Though those scenarios would be more preferable than a no-deal, the House has also rejected those through the series of indicative votes that it held in late March and early April. On the face of it, no matter what the new Prime Minister brings, it may suffer the same fate as May’s deal. Of note though, is the margin by which each indicative vote failed. In the second round of indicative votes, the customs union vote tabled by ‘europhile’ Tory Kenneth Clarke, lost by only 3 votes; the lowest margin. The new Prime Minister who knows how to play politics better than Theresa May may able to swing people to the customs union provided that it is his or her preferred option.

    Forgetting Brexit entirely?

    Other options such as holding a second referendum and revoking article 50 are also desired by some but that may not be the wisest thing to consider at this time. The public will perceive that the Government is holding a new referendum simply because the first one produced an undesired result. Revoking article 50 goes directly against what the people voted for. Avoiding Brexit may be the desired outcome for some, but the public upheaval that may arise through the methods of trying to stop it may not be worth it. Implementing these options with support from the House and the public will be quite laborious. 

    The EU’s role in the deal

    Amidst of all this, no matter what the new Prime Minister puts forward, he or she still has to deal with the EU. The EU has made clear that they will not change the current deal. There is no more room for tweaks or changes, especially relating to the contentious Irish backstop that seeks to prevent a hard border between Northern Ireland and the Republic of Ireland. If a new Prime Minster believes that he or she can sway the EU to remove the backstop or any other restrictive conditions then he or she is sorely mistaken. It will be especially difficult to renegotiate the deal so late into the timeline with someone who may be hostile toward the EU. By all means, however, the EU will welcome anyone willing to build its current relationship with the UK. It will be easier to renegotiate the deal in that regard. The EU will also still be wary of crafting any kind of deal considering that the House has effectively ruled out all options on the table.

    The United Kingdom’s Trade policy with other Countries

    It is quite clear that Brexit will shape who becomes the next Conservative leader and the next Prime Minister but there are other trade policy issues that exist beyond Brexit. With a change in leadership and subsequent change in team, other world leaders must now adapt to what could be a change in trade policy approach. There could be a new Prime Minister who is more of a hardliner as it relates to overall trade policy or someone who has a softer approach. This will be of special interest to leaders like United States (US) President Donald Trump who wishes to renegotiate the US’ trade deals with other world leaders that he considers as conciliatory parties. This may not be much of a big concern, however, as a change in leadership is normal as this happens whenever there is a general election.

    Additionally, a Conservative is a Conservative. There may be no real major policy changes for the country as a whole. The relationship between the UK and the EU is also one that is unlike other relationships the UK has and issues surrounding Brexit will be far more complex than normal trade relationships. Others may claim that the EU is being a bully as it is merely concerned for its own sustainability.

    Conclusion

    Considering that all surrounding factors remain the same, those being Parliament’s and the EU’s stubbornness, and the fact that practically speaking, there are no changes that can be made unless they seek to bring the UK and the EU closer together, the new Prime Minister has to be one that looks at the situation in a pragmatic way rather than ideological. He or she must also be able to play politics. Though the legal relationship is what really matters, people must be sold on the idea that this is the best possible deal rather than simply being told it is the best. Whoever the new Prime Minister is, one can only hope they can achieve these things and solve the current Brexit problem rather than exacerbate it or even create new ones. The Conservatives must realize that Britain’s future, Brexit and beyond, is in their hands.

    Renaldo Weekes is a holder of a BSc. (Sociology and Law) who observes international affairs from his humble, small island home. He has keen interest in how countries try to maneuver across the international political and legal stage. Read his other postings here.

  • Caribbean Trade & Development Digest – April 7 – 13, 2019

    Caribbean Trade & Development Digest – April 7 – 13, 2019

    Welcome to the Caribbean Trade & Development Digest for the week of April 7-13, 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.

    HIGHLIGHTS

    In this week’s highlights, the United States Trade Representative (USTR) released a list of Products for Tariff Countermeasures in Response to Harm Caused by EU Aircraft Subsidies. In response, the EU has indicated it aims to put tariffs on $12 billion of US exports.

    In Brexit news, the EU granted the Theresa May UK Government a six month extension to October 31, 2019. Read more here.

    Trade was a major topic looming over the IMF/World Bank Spring Meetings held this week. The IMF released its April Outlook in which it noted a deceleration in global growth on the back of several factors, including rising trade tensions. Read the Outlook here. Also watch the panel discussion on “How Trade can promote growth for all” here.

    The 12th Annual Update on WTO Dispute Settlement, which provided an overview and discussion on WTO dispute settlement cases and developments in 2018, was held this week. Watch the playback here!

    REGIONAL NEWS

    Trade between GCC, Latin America and the Caribbean hit $16.3b in 2018

    Gulf News: Trade flows between GCC countries and Latin America and the Caribbean (LAC) reached $16.3 billion (Dh59.86 billion) in 2018, while the UAE remained a top trading partner in the Gulf region for LAC countries, according to a new report conducted by Inter-American Development Bank (IDB) in cooperation with the Dubai Chamber of Commerce and Industry. Read more 

    Consumer and Business Confidence Up in Jamaica

    Caribbean360: Consumer and business confidence in the economy have recorded increases for the first quarter of 2019. Read more

    Jamaica deepens ties with China

    Jamaica Observer: The Government yesterday signed a Memorandum of Understanding with the People’s Republic of China on that country’s Belt and Road Initiative (BRI), to deepen cooperation and partnership between the two nations for economic development. Read more

    Guatemala’s Fishing Trade Spells Trouble for Belize

    The Reporter: An investigation into Guatemala’s thriving shark fishing industry reveals serious concerns for our country and fisherfolk. In February 2019, a team of investigative journalists from The Reporter traveled to southern Belize, then to Guatemala to evaluate the number and scope of sharks, fish and other marine species poached from Belizean waters and exported to Guatemala. Their findings were startling and it was discovered that this issue has deep roots. Read more 

    The Dominican Republic opens plant species and variety registration office

    Fresh Plaza: The Ministry of Agriculture opened the Plant Species and Varieties Registration Office (OREVADO), which seeks to guarantee the institutional framework for people who want to develop new varieties of vegetable crops, innovate in the transfer of technology or invest in production, i.e. breeders. Read more 

    Dominican Republic leads Caribbean economies

    Global Finance: The economy of the Dominican Republic is set to surpass its regional neighbors this year, notching the highest growth in the Caribbean region. The DR has been gaining attention for its ability to maintain steady robust economic growth. In 2018, GDP rose by 7%, and the latest report by the country’s central bank says all industries are expanding—and that its free-trade zones in particular are drawing investment. Read more

    Atlantic International Bank maintains innocence in US Federal Trade Commission accusations but faces international ramifications

    LoveFM: Atlantic Bank International is currently unable to process wire transfers, in and out, for its overseas customers who are in need of Belize currency. The stoppage in this service is the direct result of the Bank of New York issuing a ban against Atlantic Bank International after the US Federal Trade Commission has roped in Atlantic Bank International as an ally in the Sanctuary Bay multi-million-dollar scheme that saw several US investors lose money in a project that never came to fruition. Read more

    CDB Grant Stirs Up Fuss About Regional White Sugar

    Jamaica Gleaner: The April 2 announcement of a more than US$97,000 gift from the Caribbean Development Bank, CDB, to Caricom for a study on plantation white sugar has Jamaican manufacturing representatives lining up on different sides of the hot-button issue. Read more 

    Govt to build nation’s quality standards system – Sutherland

    Barbados Today: “Government considers this goal as urgent, and of very
    high priority, in our efforts to enhance the national competitiveness of our local micro-small and medium size (MSMEs) businesses, industries and the promotion of fair trade,” he said. Read more 

    CARICOM vital to regional development: Grenada’s new envoy

    Caribbean News Service: CARICOM has been an indispensable force, says new envoy. Read more 

    Call for Caribbean to speak out

    Barbados Today: The Minister for tourism has issued a call for the Caribbean to take a defiant stand against the international community’s imposition of standards on small states – even as his own Government was racing to comply with new financial reporting rules set by a global watchdog. Read more

    US report names several Caribbean nations as “major money laundering” centres

    Caribbean News Now: In the latest US International Narcotics Control Strategy Report (INCSR), volume two dedicated to money laundering, the report lists all major Caribbean and Central American countries as “Major Money Laundering Jurisdictions” for the year 2018: Antigua and Barbuda, Aruba, The Bahamas, Barbados, Belize, British Virgin Islands, Cayman Islands, Colombia, Costa Rica, Cuba, Curacao, Dominica, Dominican Republic, El Salvador, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, St Kitts and Nevis, Saint Lucia, St Vincent and the Grenadines, St Maarten, Suriname, Trinidad and Tobago and Venezuela. Read more 

    INTERNATIONAL NEWS

    Argentine Elections Could Narrow Brazil’s Mercosur Reform Path

    Stratfor: Brazilian President Jair Bolsonaro’s push to reform the trade policy of the Common Market of the South (Mercosur) risks collapsing without the support of Argentina. Read more

    Ambassadors pave the way for EU-US trade talks, despite French opposition

    Euractiv: Europe is set to start trade talks with the US after ambassadors gave their green light on Thursday (11 April) to a proposed mandate for the European Commission to conduct the negotiations on behalf of the 28 EU member countries. Read more

    EU27 is now free to hold summits without the UK

    Euractiv: The EU27 will be free to hold official Council meetings and make decisions without the UK despite the country still being a member of the Union, in a move seen as a success for France’s President Macron, who led calls for the restrictions. Read more

    Tokyo and Washington finally set to kick off trade talks as American farmers fume over poor Japan access

    Japan Times: This week, negotiators from Japan and the United States will meet in Washington to address something that U.S. President Donald Trump considers to be long overdue: trade negotiations to open the Japanese market to more American goods. Read more

    China-US trade deal could threaten Beijing’s other trading partners, IMF says

    South China Morning Post: Any trade deal between China and the United States must comply with multilateral rules, as not doing so may create economic risks for the Asian nation’s other major trading partners, the International Monetary Fund said. Read more 

    South Korea WTO appeal succeeds in Japanese Fukushima food dispute

    Reuters: South Korea won the bulk of its appeal on Thursday in a dispute at the World Trade Organization over import bans and testing requirements it had imposed on Japanese seafood in the wake of the 2011 Fukushima nuclear disaster. Read more 

    China has good reasons to join Pacific Trade pact, but obstacles remain

    The Strait Times: If China joined a massive Pacific trade deal, it could create hundreds of billions of dollars in extra income and spur domestic reforms, say analysts, but signing up would be far easier said than done. Read more 

    China, US could win big on no-deal Brexit: UN

    France24: If Britain leaves the EU without a deal, the bloc and Britain’s smaller trading partners stand to lose big, but Beijing and Washington could reap huge benefits, the UN said Tuesday. In a fresh report, the UN Conference on Trade and Development (UNCTAD) examined what repercussions it would have for Britain’s trading partners if the country crashes out of the European Union without a deal. Read more 

    Commission releases detailed information on requirements for EU goods exported to the UK in case of a hard Brexit

    EU: The European Commission has included in its Market Access Database detailed information on the rules that the UK would apply on its imports from the EU in the event of a hard Brexit. It is based on information made publicly available by the United Kingdom authorities. Read more

    EU foreign investment screening regulation enters into force

    EU: The new EU framework for the screening of foreign direct investments has officially entered into force on 10 April 2019. The new framework is based on proposal tabled by the European Commission in September 2017 and will be instrumental in safeguarding Europe’s security and public order in relation to foreign direct investments into the Union. Read more

    India reduces trade deficit with China by $10 billion in FY19

    CNbcTV: India’s trade deficit with China fell by $10 billion to $53 billion in FY19 on the back of lower imports, officials told CNBC-TV18. The downtick in the merchandise trade gap was also aided by new market opportunities arising out of the US-China trade war in the neighbouring nation. Read more 

    India’s trade ministry says no legal basis to ban e-cigarette imports

    Economic Times: India’s trade ministry says it cannot impose a ban on electronic cigarette imports as there is no legal basis for doing so, an internal government memo viewed by Reuters shows, in a boost for those looking to tap into the country’s growing vaping market. Read more 

    Africa’s new free trade area faces bumpy road to full implementation

    Global Trade Review: The Gambia has become the 22nd nation to ratify the African Continental Free Trade Area (AfCFTA), the number required for the agreement to take effect. While this marks a significant step towards the continent’s ambition to create a single market, the free trade area will face a bumpy road to full implementation. Read more 

    Why no-deal Brexit could be a win for South Africa

    Business Tech: A no-deal Brexit could damage smaller economies trading with the United Kingdom (UK) – but bring substantial gains for China and other trading partners such as South Africa. Read more 

    A US-EU trade war would be a political and economic mistake, says French finance minister

    CNBC: With global growth already slowing down, starting a trade war now between the U.S. and the European Union would be both a political and economic mistake, French Finance Minister Bruno Le Maire said Thursday. Read more 

    Brexit: UK and EU agree delay to 31 October

    BBC: European Union leaders have granted the UK a six-month extension to Brexit, after late-night talks in Brussels. The new deadline – 31 October – averts the prospect of the UK having to leave the EU without a deal on Friday, as MPs are still deadlocked over a deal. Read more

    EU Commission split on fertiliser anti-dumping duties

    Independent: A serious spat involving two arms of the EU Commission has erupted over attempts by the fertiliser industry to have anti-dumping duties imposed on liquid urea ammonium nitrate (UAN). Read more 

    EU-U.S. Trade War Escalates Over Disputed Aviation Subsidies

    Bloomberg: The European Union is preparing retaliatory tariffs against the U.S. over subsidies to Boeing Co., significantly escalating transatlantic trade tensions hours after Washington vowed to hit the EU with duties over its support for Airbus SE. Read more

    Report to Congress on China’s Engagement with Latin America and the Caribbean

    The following is the April 11, 2019 Congressional Research Service Insight report, China’s Engagement with Latin America and the Caribbean. Read more 

    EU aid increases, bucking global trend

    Euractiv: Development aid spending by EU members saw a slight increase to $87 billion in 2018 (€77 billion) compared to 2017, according to new data published by the Organisation for Economic Co-operation and Development (OECD). Read more 

    WTO NEWS

    VACANCY: Young Professionals Programme – Apply by April 15, 2019

    The WTO Young Professionals Programme was launched in 2016 as an opportunity for qualified young professionals from developing and least-developed countries that are members of the WTO to enhance their knowledge regarding WTO and international trade issues. Read more 

    WTO’s Trade Policy Review Mechanism turns 30

    The WTO marked on 12 April the 30th anniversary of the Trade Policy Review Mechanism (TPRM), which over the last three decades has contributed to ensuring and facilitating the smooth functioning of the multilateral trading system by enhancing the transparency of WTO members’ trade policies. Read more 

    Registration opens for screening of second compliance panel meeting in “EC — Large Civil Aircraft”

    At the request of the parties in the dispute “European Communities and Certain Member States — Measures Affecting Trade in Large Civil Aircraft: Recourse to Article 21.5 of the DSU by the European Union and Certain Member States” (DS316), the panel has decided to invite officials of WTO Members and Observers, and the general public, to view a recording of its substantive meeting with the parties and consenting third parties. The public viewing will take place at the WTO headquarters in Geneva on 13 May 2019. Read more 

    DG Azevêdo: rules-based trading system is “irreplaceable” but must be ready to evolve

    At a speech delivered to the Peterson Institute in Washington DC on 11 April, Director-General Roberto Azevêdo underlined the critical importance of the WTO to the stability and predictability of the global trading system. At the same time “it is clear that the WTO has to be better, faster and more responsive” to the challenges facing the organization and the system as a whole. Read more 

    WTO hosts closing ceremony of Model WTO 2019

    Over 70 students from around the world came to the WTO’s headquarters on 11 April for the conclusion of Model WTO 2019, a week-long simulation of WTO negotiations organized by a group of students from the University of St. Gallen with the support of the WTO. Read more

    WTO establishes panel to review Turkish duties on Thai air conditioners

    At a meeting of the Dispute Settlement Body (DSB) on 11 April, WTO members agreed to Thailand’s request for the establishment of a dispute panel to rule on duties levied by Turkey on imported Thai air conditioners. Members also considered Russia’s request for a panel regarding European Union anti-dumping duties on Russian steel products and formally adopted the compliance panel and Appellate reports in the EU’s complaint against US subsidies for Boeing. Read more

    Appellate Body issues report regarding Korean restrictions on Japanese food imports

    On 11 April the Appellate Body issued its report in the case brought by Japan in “Korea — Import Bans, and Testing and Certification Requirements for Radionuclides” (DS495). Read more

    WTO, IMF and World Bank leaders stress vital role of trade in reducing poverty

    Director-General Roberto Azevêdo joined with IMF Managing Director Christine Lagarde and World Bank CEO Kristalina Georgieva on 10 April to argue for renewed efforts to leverage trade as a force to reduce poverty. DG Azevêdo argued that the current trade tensions could undermine recent progress in tackling poverty. “We cannot afford to go down this path,” he said. The three leaders were speaking at a joint WTO-IMF-World Bank event in Washington DC titled “Beyond Uncertainty: Leveraging Trade to Reduce Poverty”, held alongside the World Bank-IMF Spring meetings. Read more 

    EU initiates WTO dispute complaint against Turkish measures affecting pharmaceuticals

    The European Union has requested dispute consultations with Turkey regarding various requirements imposed by Turkey on the production, import and approval for reimbursement, pricing and licensing of pharmaceutical products. The request was circulated to WTO members on 10 April. Read more 

    Trade Policy Review: Samoa

    The first review of the trade policies and practices of Samoa takes place on 10 and 12 April 2019. The basis for the review is a report by the WTO Secretariat and a report by the Government of Samoa. Read more 

    CTLD BLOG NEWS

    Read my latest article with Dr. Jan Yves Remy, Deputy Director of the University of the West Indies’ Shridath Ramphal Centre for International Trade Law, Policy & Services exploring the issue of special and differential treatment in the World Trade Organization from a Caribbean perspective Special and Differential Treatment at the WTO: A Caribbean Perspective.

    The Caribbean Trade & Development Digest is a weekly trade news digest published by the Caribbean Trade Law & Development Blog. Liked this issue? To read past issues, please visit here. To receive these mailings directly to your inbox, please follow our blog.

  • UK-CARIFORUM Economic Partnership Agreement: What does it all mean?

    UK-CARIFORUM Economic Partnership Agreement: What does it all mean?

    Alicia Nicholls

    On March 22, 2019, the United Kingdom of Great Britain and Northern Ireland (UK) and nine of the fifteen States comprising the Caribbean Forum (CARIFORUM), a subgroup of the African, Caribbean and Pacific (ACP) countries, signed the CARIFORUM-UK Economic Partnership Agreement (CARIFORUM-UK EPA)  which seeks to ensure that the current trade preferences between the UK and CARIFORUM remain after the UK’s departure from the European Union (EU).

    This makes CARIFORUM one of nine trading partners with which the UK has to date successfully concluded a trade continuity agreement. This development has been widely welcomed by businesses and private sector associations in the Caribbean. But why was the CARIFORUM-UK EPA necessary and what does it provide for?

    The CARIFORUM-UK EPA is between the United Kingdom of Great Britain and Northern Ireland on the one hand, and the fifteen CARIFORUM States (Antigua & Barbuda, The Bahamas, Barbados, Belize, the Commonwealth of Dominica, The Dominican Republic, Grenada, The Republic of Guyana, Jamaica, St. Kitts & Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname and Trinidad & Tobago), on the other.

    Nine of the CARIFORUM countries (Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, St. Kitts & Nevis, St. Lucia and St Vincent and the Grenadines) signed the Agreement on March 22, 2019 at a signing ceremony in Castries, St. Lucia. Two other CARIFORUM States, Trinidad & Tobago and the Dominican Republic, signed on April 1, 2019 and on April 4, 2019, respectively. The remaining CARIFORUM States have indicated they will sign shortly.

    Why is the CARIFORUM-UK EPA necessary?

    The UK is currently due to leave the EU on April 12, 2019, unless a further extension to June 30, 2019 requested this week by the UK government is granted by the EU-27.  Until the UK officially leaves the EU, the UK’s trade relations with the fifteen CARIFORUM countries remain governed by the CARIFORUM-European Union Economic Partnership Agreement (CARIFORUM-EU EPA) which was signed and has been provisionally applied since 2008.

    The CARIFORUM-EU EPA provides for the asymmetric liberalization of trade between the EU and CARIFORUM States. This includes duty-free and quota-free goods access, preferential access for services providers and investors, and protection for intellectual property. It also includes disciplines relating to government procurement and competition, for example, as well as extensive development cooperation provisions.

    When the UK ceases to be an EU member, the CARIFORUM-EU EPA will continue to apply between CARIFORUM States and the remaining EU-27. However, the UK will no longer be party to any of the EU’s trade agreements with third parties, including the CARIFORUM-EU EPA. In the absence of a trade continuity agreement, trade between the UK and CARIFORUM would revert to World Trade Organization (WTO) Most Favoured Nation (MFN) rules. This would have implications for businesses, services providers and investors in the UK and CARIFORUM States dependent on the preferential market access provided for by the CARIFORUM-EU EPA.

    A great summary of current CARIFORUM-UK economic relations may be found in the report prepared by the Secretary of State for International Trade for the UK Parliament. According to statistics from the UK Office of National Statistics (ONS) cited in that report, total goods and services trade between the UK and CARIFORUM States (excluding Haiti) accounted for 0.2% of total UK trade and was £2.5 billion in 2017.

    Although there has been a steady decline in CARIFORUM-UK trade over time, the UK currently remains the main market for CARIFORUM exports to the EU. For example, it is a major market for Caribbean rum, banana and sugar exports. Additionally, the UK remains an important source market for tourists to the Caribbean and in the case of Barbados, remains that country’s largest source market for tourist arrivals and real estate foreign direct investment (FDI).

    To avoid any disruption in trade and to create some modicum of certainty for UK and CARIFORUM businesses and consumers once the UK leaves the EU, the UK and CARIFORUM promptly commenced dialogue on the conclusion of a trade continuity agreement that would replicate the provisions of the CARIFORUM-EU EPA, to the extent possible.

    What does the CARIFORUM-UK Agreement include?

    The CARIFORUM-UK EPA, whose main text comprises seventy-six pages, replicates to the extent possible, the text of the CARIFORUM-EU EPA. The previously mentioned Parliamentary Report provides an excellent synopsis of the Agreement, including the necessary differences between the CARIFORUM-UK EPA and CARIFORUM-EU EPA.

    Where necessary, the CARIFORUM-UK EPA has removed and replaced references to the EU in the text,  provided for the continuation of time-bound periods, as well as limited the territorial scope of the Agreement to the CARIFORUM States and to the United Kingdom, its Crown Dependencies and Gibraltar.

    The CARIFORUM-UK EPA will only take effect once the UK has left the EU. Similar to the CARIFORUM-EU EPA, the CARIFORUM-UK EPA provides for provisional application which allows it to be provisionally applied before all the parties have done the necessary domestic ratification steps to allow for the Agreement’s entry into force.

    Additionally, the CARIFORUM-UK EPA provides a safeguard in the event of a ‘no-deal’ Brexit. A non-legally binding MoU between the UK and participating CARIFORUM countries aims to stop the gap between the date the CARIFORUM-EU EPA ceases to apply to the UK until the date when the CARIFORUM-UK EPA takes effect. Under this MoU, the parties will use their best endeavours to bring the CARIFORUM-UK EPA into effect as between them within three months of the MoU’s coming into effect, during which time the UK will apply the tariff schedule laid out under the CARIFORUM-UK EPA to those CARIFORUM States which have signed both the CARIFORUM-UK EPA and the MoU. So far, the UK has signed an MoU with the original nine CARIFORUM signatories and another MoU with Trinidad & Tobago.

    Since the CARIFORUM-EU EPA’s signature in 2008, many developments have impacted on rule-making in trade agreements. Like the CARIFORUM-EU EPA, the CARIFORUM-UK Agreement includes mechanisms for monitoring the Agreement’s implementation, as well as a revision clause allowing for the parties to broaden or amend the Agreement, including the possibility of bringing the UK’s British Overseas Territories within the scope of the Agreement.

    The institutions under the CARIFORUM-EU EPA have been replicated in the CARIFORUM-UK EPA. For example, it establishes a Joint CARIFORUM-UK Council responsible for the Agreement’s implementation and operation, as well as a CARIFORUM-UK Trade and Development Committee to assist the Joint Council. Two joint institutions (namely, the Special Committee on Agriculture and Fisheries and the Technical Sub-Committee on Development Cooperation), which had been established after the CARIFORUM-EU EPA’s signature, are directly included through dedicated articles in the CARIFORUM-UK EPA’s text.

    What does it all mean?

    As of the date of this article’s publication, the UK still remains an EU member. The original Brexit Day (March 29, 2019) has passed and the extension date of April 12, 2019 is fast approaching. In light of British MPs’ rejection of the Draft Withdrawal Agreement for the third time and no clear consensus among MPs on what they believe the future EU-UK relationship should be, the UK Government has asked for a further extension to June 30, 2019. As it stands, the threat of a ‘no-deal’ Brexit still remains a real possibility.

    In light of the current Brexit chaos, CARIFORUM countries’ conclusion of a trade continuity agreement with the UK was a prudent move to preserve continuity and certainty for our businesses, consumers and investors. The CARIFORUM-UK EPA will only take effect once the UK leaves the EU and until such time, CARIFORUM-UK trade relations will remain covered by the CARIFORUM-EU EPA. Indeed, it could be regarded as an insurance policy of sorts – providing peace of mind and only used if and when needed.

    The text of the CARIFORUM-UK Economic Partnership Agreement may be found  online here, while the Parliamentary Report which provides a good synopsis 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.