Caribbean Trade Law and Development

Tag: caribbean community

  • CARICOM DECLARATION ON REDEDICATION TO CSME IMPLEMENTATION

    Heads of Government of the Caribbean Community
    ST JOHN’S DECLARATION
    ON REDEDICATION TO CSME IMPLEMENTATION
    WE, the Heads of Government of the Caribbean Community (CARICOM), meeting virtually on 5-6 July 2021 for the Forty-Second Regular Meeting of the Conference of Heads of Government of CARICOM;

    Recognising that the commitments made in our 2018 ST ANN’S DECLARATION ON THE CARICOM SINGLE MARKET AND ECONOMY (CSME) to inter alia, take action at the national level to advance the regional integration agenda, have for the most part not materialised;

    Reiterating our conviction that CARICOM integration and particularly the CSME continue to be important for the growth and development of the Member States of CARICOM especially in the face of the debilitating impact of the COVID-19 pandemic which has absorbed the focus of Member States  over the past fifteen months and more;

    Conscious of the vastly different economic environment that is currently prevailing;

    DECLARE:
    We have all individually and collectively recommitted to take all action necessary to ensure timely and effective implementation of the CSME, especially in light of the challenges of the current demanding environment.

    We have agreed that achieving full implementation of the CSME would require immediate specific action by the Organs and Bodies of the Community, Cabinets and Ministries of Member States, stakeholders (particularly the private sector) and the CARICOM Secretariat.
    We have agreed to have regular inclusion of the CSME as an item on the Agenda of Cabinet meetings.

    We have also agreed to give specific and focused attention to ensuring that our governance and accountability mechanisms and structures at the national and regional levels are made sufficiently robust for effecting the required CSME implementation including a greater oversight role for our Ambassadors to CARICOM.

    We have endorsed the COTED decision to convene a special session on CSME implementation before its next regular meeting in November 2021 to agree on other specific actions proposed for immediate implementation by the various stakeholders towards ensuring full implementation of CSME provisions and to approve an overall Action Plan for CSME implementation.

    Source: CARICOM Secretariat

  • What lies ahead for the incoming CARICOM Secretary-General?

    What lies ahead for the incoming CARICOM Secretary-General?

    Photo credit: CARICOM (Photo of incoming CARICOM SG, Dr. Carla Barnett)

    Alicia Nicholls

    On August 15, 2021, Dr. Carla Barnett will formally assume office as the eighth Secretary-General (SG) of the forty-eight year old Caribbean Community (CARICOM). Although Ambassador Lolita Applewhaite briefly acted as SG during the period January-August 2011, Dr. Barnett will be the first female and Belizean to be appointed to this position. She was selected unanimously by the Conference of Heads of Government at a virtual special meeting held on May 11, and succeeds regional stalwart Ambassador Irwin Larocque of Dominica whose second term is coming to an end.

    Dr. Barnett joins a growing pantheon of distinguished women to lead international trade organisations and groupings at a time of mounting global uncertainty. A well-respected economist, she will be at the helm of the Caribbean’s foremost regional bloc which is fighting a number of proverbial fires of both endogenous and exogenous origin. This article discusses what lies ahead for the incoming CARICOM SG and some ways in which she might be able to make a difference within the confines of her position.

    The role of the SG

    The CARICOM SG heads the CARICOM Secretariat based in Georgetown, Guyana as outlined in Article 23 of the Revised Treaty of Chaguaramas (RTC). Article 24(2) of the RTC provides, inter alia, that the SG is the Chief Executive Officer of the Community. He or she is not an all-powerful figure, however. The SG’s role is primarily administrative as it is the Conference of the Heads of Government that is not just the supreme organ of the Community but determines and provides policy direction to the Community as per Article 12 (1) &(2) of the RTC.

    Among the tasks assigned to the SG under Article 23 is to make an annual report to the Conference on the work of the Community. The tasks outlined in Article 24(2) of the RTC include, for instance, that the SG represents the Community. It also assigns to the SG various other functions broadly associated with implementing Community decisions and achieving Community objectives. His or her functions throughout the RTC are often exercised in conjunction with, or on the direction of the competent organs or the Conference.

    The SG is supposed to be independent in the exercise of his or her functions. That is, Article 23(4) forbides the SG and staff from seeking or receiving instructions from any Government of the Member States or from any other authority external to the Community in the performance of their duties.

    There is also the ‘soft power’ that the SG holds. For instance, the SG is tasked under Article 26 with assisting the Community Council in collaboration with competent authorities of the Member States to establish and maintain an efficient system of consultations at the national and regional levels in order to enhance the decision-making process in the Community. Under Article 191, disputant Member States can also use the good offices of a third party, including the SG, to settle their dispute, for example.

    The road ahead

    Dr. Barnett will be assuming office at a time of unprecedented social and economic challenges for the Community – some endogenous and others exogenous in origin, some longstanding and others of newer vintage. She will be heading an intergovernmental organization whose Member States are all classified as Small Island Developing States and whose pre-COVID-19 realities included generally low growth rates, limited export diversification, a rising incidence of chronic non-communicable diseases (NCDs) and high vulnerabilities to macroeconomic and weather-related shocks. Member States continue to battle the climate crisis, arbitrary blacklisting from metropolitan countries in the areas of tax and anti-money laundering/terrorist financing (AML/CFT) matters, border disputes, and the list goes on.

    These longstanding issues are further compounded by the COVID-19 pandemic, which brings with it the attendant issue of access inequalities caused by richer nations’ hoarding of COVID-19 vaccines and placing export restrictions on needed medical supplies. While it is hoped that the worst of the health crisis provoked by the COVID-19 pandemic will be over by August, it is evident that the economic and social effects will be with us for some time. All independent CARICOM Member States, with the exception of newly oil-rich Guyana, saw economic contractions in 2020. Unemployment and under-employment, especially among the youth, remains a chronic problem, while crime remains a concern. COVID-19 has given greater urgency to regional calls for debt forgiveness and expanded criteria for access to concessional financing.

    CARICOM as an organisation itself confronts enduring issues which have been well-documented in a lengthy list of reports and studies, including the 1992 ‘Time for Action’ Report of the Ramphal Commission, the Golding Report commissioned by the Government of Jamaica and the recently released draft report of the CARICOM Commission on the Economy.  There are persistent concerns over CARICOM’s implementation deficit, the suitability of its current governance model and its ‘top down’ approach, the need for greater transparency of CARICOM’s work, enhanced and meaningful engagement of ordinary citizens and civil society, and even questions over CARICOM’s continued relevance. While the sentiment is a bit unfair, the average man or woman on the street is generally of the opinion that CARICOM either does ‘nothing’ or decisions made do not meaningfully impact livelihoods

    How can the SG make a difference?

    The power to make the bold and transformative change that CARICOM needs does not rest with the SG, but with the Member States themselves. However, an SG with a strong vision and the necessary technical and soft skills can parlay these into helping to effect the change so greatly needed.  Dr. Barnett brings to the post an impressive resume  of qualifications, expertise and experience which make her well-suited and equipped for tackling the enormity of the tasks ahead. She is a well-respected economist who has held several key ministerial positions in the Belizean government and in financial institutions in that country, including former deputy governor of the Belize Central Bank. She was also a former Deputy Secretary-General of CARICOM.

    It is timely that Dr. Barnett will be taking office when the draft report of the CARICOM Commission on the Economy has been published. The report outlines the findings of an eminent group comprised of both regional and extra-regional luminaries and headed by noted economist and finance expert Prof. Avinash Persaud. The Commissioners propose a 12-point plan.

    Unlike the process with the selection of the World Trade Organization (WTO)’s Director-General where we had the benefit of successive statements and videos in which the candidates outlined their visions for the WTO and answered questions publicly on their plans and positions, there is regrettably no similar publicly accessible exercise for the CARICOM SG.

    However, in scouring the internet, I was able to come across a few articles which give some insight into Dr. Barnett’s vision. In the press release announcing Belize’s nomination of Barnett, she is quoted as stating her vision for CARICOM as follows:

    “a Caricom that the ordinary woman and man will defend because they feel the impact in their daily lives through economic and social advancement that comes from community action”.

    Based on this statement, it is clear that Dr. Barnett supports greater citizen involvement and engagement in the regional process and the need for enhanced community action for economic and social impact that permeates down to the man or woman on the street.

    There are some ways in which the new SG can make a difference, such as to the extent possible, promoting greater transparency of the Secretariat’s operations, the status of Member States’ implementation of decisions and the availability of up-to-date disaggregated statistics. For instance, what is the status of each Member States’ implementation of decisions made? This information should be in reports easily accessible by the public.

    The new SG can find ways to improve engagement, awareness and interest by the ordinary CARICOM citizen in the work of CARICOM and the opportunities the regional integration process present. With few exceptions, such as the CSME Townhalls or by following CARICOM’s website or social media, there are limited  opportunities for the average CARICOM citizen to learn what is happening in regional bodies or have their voices heard in regional decision-making. Even so, improvements can be made in what and how the information is disseminated and the channels through which it is done.

    As I conclude, I wish to applaud the excellent work being done by the CARICOM Youth Ambassadors. I particularly want to highlight the two Barbadian ambassadors Java Sealy and Meagan Theobalds, who have hit the ground running in continuing the work of their successors to raise the profile of CARICOM among the youth who are the inheritors of this region. The unquenchable enthusiasm and passion of young persons like these two is needed for any organization or regional movement to thrive and advance. As such, the establishment of a CARICOM Young Professionals Programme, similar to those offered by other organisations around the world, would be a value-added to CARICOM and perhaps something the incoming SG could champion.  

    Alicia Nicholls, B.Sc., M.Sc., LL.B. is a trade and development consultant with a keen interest in sustainable development, international law and trade. All views herein expressed are her personal views and should not be attributed to any institution with which she may from time to time be affiliated. You can read more of her commentaries and follow her on Twitter @LicyLaw.

  • Belizean Dr Carla Barnett will be next CARICOM Secretary-General

    Belizean Dr Carla Barnett will be next CARICOM Secretary-General

    Belizean Dr. Carla Barnett has been unanimously selected by CARICOM Heads of Government to be the next Secretary-General of the Caribbean Community (CARICOM). She will make history by becoming both the first Belizean and first woman to be appointed to this position. The Caribbean Trade Law & Development Blog congratulates Dr. Barnett and wishes her every success during her tenure.

    Read the statement from the Heads of Government here.

  • CARICOM-Private Sector Engagement Requires Sustainable Development as its ‘Guide Star’

    CARICOM-Private Sector Engagement Requires Sustainable Development as its ‘Guide Star’

    Alicia Nicholls

    The novel coronavirus virus disease (COVID-19) pandemic has reiterated the need for Caribbean Community (CARICOM) Member States to not only diversify their economies and trading partners, but to deepen intra-regional integration as part of their economic recovery and sustainable development efforts. The astronomical term ‘guide star’ – the star used by a telescope to keep focus on a celestial object as the telescope moves – is a useful reference in seeking to contextualise the promise of a more structured CARICOM-private sector relationship in assisting in the region’s integration, trade and post-COVID-19 recovery.

    As recognized by the Addis Ababa Action Agenda on financing for development, the private sector is an important driver of growth, economic activity and job creation and can, therefore, be a valued development partner to governments in the formulation of policies and mobilisation of resources for achieving the 17 United Nations Sustainable Development Goals (SDGs) and their 169 targets. To achieve this, the private sector must move from being a mere passive actor which is simply informed of government policy, to a more active actor consulted on and involved in policy dialogue, but not in a way that encourages corruption or rent-seeking behaviour.  

    On December 3, 2020, CARICOM took further steps towards a structured relationship with the region’s private sector through the signing of a Memorandum of Understanding (MOU) with the recently formed CARICOM Private Sector Organisation (CPSO) for achievement of the CARICOM Single Market and Economy (CSME). This article discusses why these recent developments are both laudatory and encouraging, but that sustainable and inclusive development, and not merely CSME achievement, should be the ‘guide star’ for this relationship if it is to redound to the benefit of the region’s people on a whole.

    The new CPSO and the CARICOM-CPSO MOU

    Institutionalisation of a CARICOM- private sector relationship has been mooted on previous occasions and more recently, was one of the recommendations (recommendation 31) made in the Report of the Commission to Review Jamaica’s Relations within the CARICOM and CARIFORUM Frameworks (the Golding Report). The most recent ground work for the establishment of a regional body to facilitate more structured engagement between CARICOM and the regional private sector was laid at a meeting of regional private sector officials in June 2019. A year later on June 2, 2020, the CPSO was incorporated as a non-profit in Barbados, where it is presently headquartered.

    On October 29, 2020,  the CPSO was designated as a CARICOM associate institution, establishing a formal functional relationship with CARICOM. The MOU, whose text is thankfully available on the CARICOM website, establishes a mechanism “for substantive and effective cooperation” between CARICOM and the CPSO in pursuit of a fully implemented CSME. As such, the scope of the parties’ cooperation will be on achieving elements of the CARICOM work programme conducive to the goals of the CSME which seeks to transform CARICOM from a single market to a single economy in which there is free movement of goods, services, skills, capital and the right of establishment.

    Without doubt, the private sector’s active involvement is a necessary precondition for the successful implementation and monitoring of the CSME. Under the MOU, the CPSO will have the opportunity to participate in meetings of the Organs of the Community as an Observer and may be invited by CARICOM to participate in Committees, Working Groups and Technical Teams established by the Organs of the Caribbean Community. According to the press release announcing the MOU, the CPSO has already been engaging in several important CSME-related regional discussions.

    However, CPSO’s involvement in meetings does not entail a right to vote or to prevent consensus, which likely seeks to ensure that decision-making remains the purview of the government representatives and there is no undue special interest influence on decision-making. The MOU also provides for the appointment of a Joint Technical Team comprising representatives of the CARICOM Secretariat and the CPSO Technical Secretariat, and for working groups to be established for the furtherance of the MOU’s objectives.

    Potential benefits of a more structured CARICOM-private sector relationship

    There are several potential benefits which this push towards institutionalization of greater private sector engagement could have for enhancing the CSME more specifically, and trade and sustainable development more broadly. While it is governments which negotiate and sign trade agreements, it is firms which must convert this market access on paper into market penetration in practice. The private sector’s knowledge, expertise and experience are important for identifying priorities for CSME implementation, providing feedback on what aspects of the CSME are not working optimally and what barriers they face in regional markets. Additionally, any attempt to flesh out a regional export development strategy, trade policy or industrial policy requires active private sector involvement and engagement in their formulation, implementation and monitoring if these policies are to be effective.

    Policy-making at the national and regional level must be sensitive to and account for the diversity within the region’s private sector. The bigger firms of some Member States, such as Trinidad & Tobago, Jamaica and to a lesser extent Barbados, tend to be more experienced in exporting than those of some smaller Member States. It should not just be the larger firms – those whose operations often expand beyond the region – whose views are represented by the CPSO in its dealings with CARICOM organs and bodies. The voice of smaller firms like the micro-firms must also be represented and taken into account. Regional policy making should also appreciate the unique challenges facing women-owned enterprises, such as the difficulty in accessing financing on equal terms as male-owned enterprises, as well as those businesses owned by vulnerable groups, such as the youth and indigenous peoples.

    Private sector engagement will also be necessary for informing regional business and investment climate reforms. Despite some noteworthy business climate reforms, especially by Jamaica, ease of doing business remains a problem in many Caribbean countries. Where ranked, no CARICOM Member States ranks within the top fifty countries on World Bank’s Doing Business Index or the World Economic Forum’s Global Competitiveness Index. Besides improving ease of doing business at the national level, many of the Golding Report’s recommendations, such as the need for greater harmonization of laws and procedures, would also be beneficial for regional firms seeking to expand within the region by improving the predictability, transparency and ease of the regional business and investment environment.

    Up-to-date and disaggregated CARICOM-wide trade and FDI data, as well as data on the region’s private sector remains a perennial problem. Private sector firms in the region do not always like to participate in data collection surveys, either because of distrust of what the data will be used for or they fail to see the importance of such exercises, which makes data collection difficult. It is hoped that a structured CARICOM-private sector relationship through the CPSO could lead to better data collection and availability regionally – data which could help inform business decisions and national and regional policy making.

    Although the extent of formal CARICOM-CPSO cooperation under the MOU is limited to the CSME,  there are other development areas such as public health, climate action, gender equality, finance (including the blacklisting issue) and such like, where more structured private sector involvement in regional discussions could be beneficial. It could be that the framers of the MOU see the CSME as an initial priority, but intend to amend the MOU, as provided for under its amendment clause, to expand the areas of CARICOM-CPSO cooperation at a later date.

    If the general public is to trust that this closer CARICOM-private sector relationship will redound to the interest of the public and not special interests, transparency is key. It is therefore regrettable that, despite some improvement, there is still limited detailed information provided to the public on CARICOM meetings held, decisions taken and the status of the implementation by Member States of certain initiatives.

    Conclusion

    Without doubt, a dynamic, engaged and informed private sector is a necessary condition for expanding Caribbean trade and deepening regional integration with the aim of boosting growth and development. The private sector, which itself has been impacted by COVID-19, will be an invaluable partner in charting the region’s economic recovery post-COVID-19. The CPSO’s creation, its status as an associate institution of CARICOM and the MOU’s signature are promising initiatives for strengthening the institutional mechanisms for private sector consultation in the regional policy making process. That this will lead to regional development is, however, not a fait accompli but a work in progress. It will require commitment by both sides, including trust by the private sector that these initiatives are more than ‘pomp and show’, but that CARICOM Heads of Government see the private sector as a credible partner whose views they will take into account in charting the region’s future development trajectory.

    Greater information on the CPSO’s mission, composition and work would be welcomed, including the nature of its relationship and level of cooperation with other region-wide private sector associations such as the Network of Caribbean Chambers of Commerce (CARICHAM), the Caribbean Hotel and Tourism Association (CHTA), the Caribbean Network of Service Coalitions, the Caribbean Poultry Association and the newly formed CARICOM Manufacturers’ Association. Hopefully, these disparate regional private sector organisations will not work in silos but will cooperate and collaborate with each other on areas of mutual interest. If it has not already done so, CPSO should also establish links with cross-regional private sector associations, such as the Caribbean Chamber of Commerce in Europe (CCCE), the Caribbean-ASEAN Council (CAC) and the American Caribbean Chamber of Commerce (ACCC), which can be valuable sources of market information, networks and expertise on current and potential export markets.

    It is hoped that this structured CARICOM-CPSO relationship towards CSME achievement will evolve into one of mutual trust and information-sharing between regional governments and the regional private sector in the interest not of a few, but one which places sustainable and inclusive development as its ‘Guide Star’.  

    Alicia Nicholls, B.Sc., M.Sc., LL.B. is a trade and development consultant with a keen interest in sustainable development, international law and trade. All views herein expressed are her personal views and should not be attributed to any institution with which she may from time to time be affiliated. You can read more of her commentaries and follow her on Twitter @LicyLaw.