Caribbean Trade Law and Development

Tag: Caribbean

  • Deeper Caribbean trade and tourism: An aspirin for the COVID-19 ‘heart attack’?

    Deeper Caribbean trade and tourism: An aspirin for the COVID-19 ‘heart attack’?

    Alicia Nicholls

    This week, two noted International Monetary Fund (IMF) economists in a blog post entitled “Pandemic Persistence Clouds Latin America and Caribbean Recovery” aptly likened the economic fall-out emanating from the novel coronavirus disease (COVID-19) outbreak to a ‘cardiac arrest’ in Caribbean economies. This IMF post is one of several analytical pieces published by international institutions over the past months examining the pernicious economic impact of the crisis on Caribbean countries, whose mainly tourism-dependent economies have been significantly hit.

    The COVID-19 pandemic reiterates yet again the exigency of reconsidering and reconfiguring Caribbean Community (CARICOM) Members States’ integration into the global trading system. Indeed, many structural issues have long clogged the arteries of Caribbean economies, serving as risk factors for repeated economic cardiac events. Our countries generally have high merchandise trade deficits, and while we enjoy services surpluses, that services trade is predominantly tourism. In addition to the highly concentrated nature of our exports, similar concentration can be observed in our trading partners. Most of our trade occurs with the United States (US), the European Union (EU), Canada, the United Kingdom (UK) and increasingly, China. However, as a World Bank study argued, there is untapped potential for greater trade with the wider Caribbean.

    This article suggests that deepening trade and tourism with the wider Caribbean could be an aspirin to help CARICOM countries deal with the COVID-19 ‘heart attack’.

    What is the wider Caribbean?

    The term ‘Caribbean’ means varying things to different people. For us in the English-speaking Caribbean, the term ‘Caribbean’ usually connotes those countries which comprise the 15-member Caribbean Community (CARICOM), which also includes two non-anglophone Member States – Haiti and Suriname. Nonetheless, for those outside the region, the term ‘Caribbean’ is all-encompassing to include those non-CARICOM independent countries and dependent territories, such as Cuba, the Dominican Republic, the Turks & Caicos to the north and as south as the ‘ABC’ islands – Aruba, Bonaire and Curacao. One can go wider still and refer to the Caribbean Basin – all countries with a coastline which touches the Caribbean Sea, such as Colombia, Venezuela and several Central American States.  

    Deepening relations with the wider Caribbean is not a new concept or aspiration. CARICOM itself has adopted an approach of ‘open regionalism’ as codified in the Revised Treaty of Chaguaramas at Article 3(2).  CARICOM has five Associate Members, all from the wider Caribbean, namely, Anguilla, Bermuda, the British Virgin Islands (BVI), Cayman Islands and Turks & Caicos. and observer members from the non-English speaking Caribbean. Besides the Dominican Republic-CARICOM FTA, CARICOM also has trade agreements (mainly partial scope agreements) with some Caribbean Basin countries, such as Venezuela, Costa Rica, Colombia, while some individual CARICOM Member States have their own partial scope agreements, such as Belize with Guatemala and Guyana with Brazil.

    In addition, the Jamaica government has indicated its intention to deepen its trade links with the Northern Caribbean, as seen in the Golding Report and a 2018 report prepared by ECLAC on this topic at the request of the Jamaican Government. Martinique and Guadeloupe are associate members of the Organisation of Eastern Caribbean States (OECS) and Martinique is one of St. Lucia’s main tourism source markets. It should also be remembered that CARICOM countries had been among the participants of the now defunct negotiations on a Free Trade Area of the Americas (FTAA), which would have created an FTA among all countries of the Americas, except for Cuba and Venezuela for political reasons.

    Barriers impacting wider Caribbean trade

    Intra-CARICOM trade only accounts for a small percentage of CARICOM’s total trade compared with trade with external partners. While it is unknown the exact percentage of CARICOM’s total trade with the wider Caribbean, it is also likely small.

    Several reasons account for why CARICOM’s trade with the wider Caribbean remains limited. One of them is historical factors which account for the linguistic heterogeneity within the countries and territories of the region. International business scholarship shows generally that firms trade more easily with those in countries with which they share linguistic and cultural affinity, often referred to in the literature as ‘psychic distance’. Therefore, while there may be geographic proximity within the Caribbean, there is notable ‘psychic distance’ due to linguistic and cultural differences. Such differences are not non-negligible as they often make firms’ task of conducting market research on potential markets more difficult.

    A second factor to consider, also linked to historical factors, is that while there are excellent transportation links between Caribbean countries and the more traditional markets (US, UK and Europe), intra-Caribbean transportation links often leave much to be desired. It is often easier to send a package to Miami than it is to send one from Barbados to Trinidad, or even more so, from Barbados to Belize. This lack of good intra-regional transportation makes trade more expensive. Moreover, travel within the Caribbean, such as from Barbados to the Bahamas, requires passing through Miami as the easiest route.  Again, this increases the costs of plane tickets and serves as a disincentive for intra-regional trade and travel.

    A third, but no less important factor to consider, is the lack of convertibility among the region’s currencies. To complete cross-border payments, US dollars must be used which means our regional banks must use correspondent banks in order to process payments across the region. This, naturally, incurs fees. One group, the Caribbean Settlement Network is trying to fix this problem by proposing the creation of a blockchain-enabled Caribbean settlement system.

    A fourth issue is that there remain non-tariff barriers to trade, as well as other administrative barriers which often differ among countries, making it difficult for the private sector to access markets, especially if another language is involved.

    Opportunities for trade with the wider Caribbean

    Without doubt, opportunities abound for promoting greater trade within the wider Caribbean. However, as it is often said or not always remembered, it is firms which trade, not States. As such, firms will need an enabling environment if they are to find the wider Caribbean an attractive market.

    On this note, however, it is worthwhile to highlight that the Caribbean Chamber of Commerce (CARICHAM) and the Caribbean Chamber of Commerce in Europe (CCCE) include members not just from the Anglophone Caribbean but non-anglophone countries as well. This shows that there is at least some pan-Caribbean private sector interest in not just sharing ideas and collaborating but also possibly increasing trade with the wider Caribbean.

    E-commerce presents a perfect opportunity to promote greater intra-regional trade, particularly services trade. Things such as telemedicine, management consulting and other professional services can be offered online. Educational services are a big opportunity, particularly the e-teaching of foreign languages since there is demand by those countries to learn English and for our countries to learn Spanish, French and Dutch, for example. Another related opportunity relates to translation and interpretation services which can be delivered online.

    An excuse often made is that Caribbean countries’ similar export profiles means there is not much which we could trade with each other. This argument is misguided. Instead of relying so heavily on extra-regional food imports, there are opportunities for greater sourcing of food products from the wider region, such as fresh fruits and vegetables which might not be available in all islands due to costs of production or climatic factors. Jamaica, for instance, grows oranges.

    Greater air connectivity will incentivize greater intra-regional trade. However, governments must create an enabling environment for intra-regional trade. This means seriously considering the removal of the high taxes, fees and other charges they impose, which significantly adds to the cost of purchasing tickets. There is little incentive for Caribbean persons to travel within the region for leisure, unless to visit family and friends, if the cost of a ticket to Miami is much cheaper than a ticket from Trinidad & Tobago to the Turks & Caicos.  

    According to the IMF blog post previously mentioned, “Caribbean countries are dependent on tourism for anywhere between 20 to 90 per cent of GDP and employment”. With the spike in COVID-19 cases in the US and Europe, now is the time that our tourist boards should be pushing more heavily towards promoting intra-regional tourism. CARICOM currently has a travel bubble whereby persons travelling within the bubble are treated as low risk and are exempt from COVID-19 tests and mandatory quarantine.

    Intra-regional travel could help shore up our economies which are struggling to cope with the precipitous drop in arrivals and tourist spend from our main source markets due to the COVID-19 epidemic. Whether it is the Bahamas’ famous Blue Hole, Barbados’ Harrison’s Cave, Jamaica’s Dunn’s River Falls , Martinique’s Mont Pelee or St. Lucia’s signature Pitons, each Caribbean island has its own unique marvels which make it attractive not just to extra-regional tourists, but those from the region as well who would prefer to travel closer to home and to a less risky jurisdiction. As such, deeper intra-regional tourism is an opportunity well-worth exploring.

    Negotiating trade agreements would help to eliminate the tariff and non-tariff barriers which currently exist as barriers to trade with non-CARICOM Caribbean countries. A World Bank study entitled “Trade Matters: New Opportunities for the Caribbean” found that implementation of a common market would lead to significant gains for the region, and that those countries such as St. Lucia and Barbados that already have a significant portion of their exports going intra-regionally stand to benefit the most. However, it found that greater trade integration with North America or Latin America would be even greater and could be achieved by joining the NAFTA (now the USMCA). A cautionary note is that CARICOM’s trade agreements remain under-utilised as a study by McClean for ECLAC in 2015 showed. As such, it should be determined whether there is sufficient private sector interest in wider Caribbean markets to justify spending limited negotiating capital on yet another trade agreement.

    Just like heart attack patients are counselled to change their lifestyles and adopt healthier eating habits, so too must CARICOM Member States address the risk factors which increase their susceptibility to economic cardiac events. Diversifying their trade and tourism source markets by deepening such links with the wider Caribbean would be one such ‘lifestyle change’.

    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.

  • The US 2020 Presidential Elections: What’s at stake for the Caribbean?

    The US 2020 Presidential Elections: What’s at stake for the Caribbean?

    Photo source: Pixabay

    Alicia Nicholls

    On November 3, the American electorate, including Caribbean-Americans, will officially cast its vote for the next President of the United States (US). The choice is between the incumbent far right Republican president and businessman, Donald Trump, and the more centrist Democratic nominee and former Vice President (VP) in the Obama Administration, Joe Biden. Quoting data from the US Elections Project, a Reuters report of October 6, 2020 revealed that some four million Americans have already voted early, reportedly “more than 50 times the 75,000 at this time in 2016”.

    The Caribbean never features as a major foreign policy topic in US presidential campaigns, although the Venezuela crisis and China’s growing influence in the region have caused some disquiet in Washington in recent years. But while the Caribbean has ebbed and flowed in its geopolitical significance to US policymakers, we in the region are frequently glued to our television sets, or in this era, smart devices, whenever US presidential election season comes around. Quite simply, we have a vested interest in who determines US government policy making. This is because our northernly neighbour is not just a super power, the region’s largest trading partner, a provider of development assistance and our most important tourism source market. The US is also the home to the region’s largest diaspora and the main source of remittance flows to the region. Indeed, this time around, Caribbean people have another reason to be invested in this election cycle; Joe Biden’s VP nominee, current US Senator for California, Kamala Harris, is of Jamaican and Indian ancestry.

    Let me state upfront that this article is in no way intended to influence the voter choice of any reader and does not represent an official endorsement of any candidate. Instead, it aims to academically discuss some of the major issues on the ballot in this election which directly or indirectly affect Caribbean countries and the Caribbean diaspora living in the US. It seeks to do so by critically examining the policy positions of the two major party candidates, Trump and Biden, on these issues.

    The candidates’ positions vs Caribbean countries’ interests

    President Trump and former VP Joe Biden generally differ significantly in their stated approaches to issues such as foreign policy, trade, climate policy, immigration, race relations, economic policy and Cuba relations – issues of importance to the Caribbean. Both candidates’ positions can be discerned not just from their campaign promises but their records; Trump as the incumbent and Biden on his experience as President Obama’s VP and as a former long-time US Senator for Delaware.

    Foreign Policy and Trade Policy

    With respect to foreign and trade policy, President Trump has been dogged in his nativist, unilateral, neorealist and neomercantilist ‘America first’ outlook. His record includes escalating trade tensions with China, antagonizing traditional US allies, withdrawing from the Trans-Pacific Partnership (TPP), renegotiation of trade agreements like the North American Free Trade Agreement (now the US-Mexico-Canada Agreement) and the Korea-US FTA (KORUS). He also formally announced the US’ withdrawal from the World Health Organization (WHO) in the middle of a global pandemic, withdrew from the Iran Nuclear Deal, and repeatedly threatened to withdraw from the World Trade Organization (WTO) over its alleged lenient trade treatment of China. The Trump Administration’s blockage of (re)appointments of members (judges) to the WTO’s Appellate Body over longstanding US concerns with that body’s operation has led to the body’s paralysis after it no longer had a quorum needed to hear an appeal. This led some WTO Members to sign on to a temporary solution – the Multi-party Interim Appeal Arrangement (MPIA) to which the US has not committed.  

    It is, therefore, fortuitous for the region that the Trump Administration, which has insisted on reciprocity in its trade dealings with States, opted to successfully apply for another WTO waiver for the Caribbean Basin Initiative – the unilateral preferences scheme allowing duty free access to the US market for most Caribbean goods. The Caribbean Basin Trade Partnership Act (CBTPA), one of the CBI’s constituent Acts, appears on track for renewal after expiring on September 30, 2020. The Administration’s seeming support of this programme may be because the Caribbean has a large trade deficit with the US, posing no real threat to US jobs, and the programme is viewed as beneficial to US industry. Moreover, the Trump Administration has provided some technical and financial assistance to Caribbean governments in the fight against COVID-19, and the significant oil finds in Guyana have influenced deeper US government and private sector engagement with that country.

    Joe Biden, who represents a more traditional outward-looking US foreign policy orientation has extolled multilateralism, vowing that under his presidency the US would, inter alia, rejoin the Paris Agreement to which it had originally committed under his Obama/Biden administration. Biden’s views on trade, however, appear inward looking, appealing to the crucial voting bloc of blue collar workers who feel jilted by globalization. Political exigencies mean that there will likely not be the wide open-armed embrace of free trade under the Biden administration, evidenced by his pledge to prioritise nearshoring of supply chains and expansion of the ‘Buy America’ initiative. Without doubt, however, his trade policies will be more predictable and stable than his opponent’s, providing greater certainty for trading partners. Biden has also been more supportive of the WTO. This aligns with the interest of Caribbean countries which, despite its flaws, are major supporters of retaining the WTO’s two tiered dispute settlement system and of the rules-based multilateral trading system, more broadly.

    Climate Change

    This brings us to another fundamental issue for the Caribbean – the candidates’ views on climate change which presents an existential threat for our Caribbean small island developing States (SIDS). President Trump continues to deny the existence of anthropogenic (man-made) climate change despite, inter alia, a record-setting Atlantic Hurricane Season this year, and has rolled back many of the pro-environment policies enacted by his predecessors. Biden, by contrast, has a dedicated Biden Plan for Climate Change in which he pledges to ensure the US ‘achieves a 100% clean energy economy and reaches net-zero emissions no later than 2050’ and to address the disproportionate impact of climate change on vulnerable communities and investment in clean energy.

    Immigration Policy

    Another ‘big-ticket’ item for the region is the US’ immigration policy. In 2017, some 4.4 million Caribbean immigrants lived in the US, according to the Migrant Policy Institute. Although this point is almost never raised, US-Caribbean migration is not one-way, as there are American immigrants living in Caribbean countries as well. Americans also reportedly comprise the majority of applicants under Barbados’ digital nomad visa programme – the Barbados Welcome Stamp.

    Despite two of his three wives being immigrants themselves and his mother having been an immigrant from Scotland, President Trump has taken a virulent anti-immigrant stance exemplified by the infamous ‘Muslim ban’, the inhumane child separation policy at the US-Mexico border and making legal migration to the US more difficult.

    In contrast, Biden in his Immigration Plan has pledged a ‘fair and humane immigration system’ in which he promises to undo his predecessor’s harmful policies; modernize America’s immigration system; reassert America’s commitment to asylum-seekers and refugees; tackle the root causes of irregular migration and implement effective border screening. The proof, of course, will be in the implementation.

    Race Relations

    Additionally, as a region whose population is predominantly non-white, the deteriorating race relations, the rise in hate groups and institutionalized racism in the US will be of concern to the Caribbean. Widespread protests over longstanding police brutality and racial injustice came to a head this year when a video circulated showed a white police officer kneeling on the neck of an unarmed black man, George Floyd, for several minutes causing his death. This was preceded by the police killing of an innocent black woman, Breonna Taylor, in her apartment pursuant to a no-knock warrant issued for the wrong residence. Police violence is not foreign to the Caribbean community living in the US as Botham Jean, a St. Lucian expat working at international accounting firm PWC in Dallas, Texas was shot and killed in 2018 in his own apartment by an off-duty police officer who claimed to have walked into the wrong apartment and thought he was an intruder. Jean’s killer was found guilty of murder but was sentenced to only ten years’ imprisonment and is currently appealing her sentence. While President Trump has been lukewarm in his condemnation of these incidents and downplayed the existence of institutionalized racism, Joe Biden has released plans for promoting racial justice and other issues affecting the black, native American and other marginalized communities. 

    Economic Policy

    Due to the US’ economic and commercial importance in the region, the health of the US economy has direct implications for the Caribbean. President Trump campaigned on ‘bringing back American jobs’ and his first term economic plan has largely focused on tax cuts and less successfully, aggressive trade policies, raising tariffs and demanding that American multinational national enterprises (MNEs) reshore jobs from China and other countries back to the US. However, President Trump has seen slippage in his once strong public support on his handling of the economy, particularly in light of his questionable handling so far of the COVID-19 outbreak. The US Bureau of Economic Analysis (BEA) reported that the US’ real gross domestic product (GDP) decreased at an annual rate of 31.4 percent in the second quarter of 2020.

    Biden’s economic recovery plan, though not perfect, proposes expanding ‘Buy America’ campaigns, prioritizes support for small businesses, greater research and development, widening access to health care and education, improving America’s infrastructure, promoting clean energy and racial equity. Some of these proposals, which aim to create jobs and stimulate economic activity, will include spending increases adding to the US deficit and tax hikes for the wealthy, and are unlikely to be passed if Republicans control the Congress.  

    Handling of COVID-19

    The US government’s handling of the COVID-19 pandemic will be another area of concern for the region. As at October 9, 2020, the US had recorded some 214,000 COVID-19 fatalities and 7.5 million positive cases. Minority communities, which include some Caribbean diaspora communities, have been among the most affected by the outbreak. Moreover, Caribbean countries dependent on US tourist arrivals have had to play the delicate balance of encouraging US tourism while trying to protect their own citizens from the risk of COVID-19. President Trump has downplayed the virus and frequently derided mask-wearing, even after he and many of his White House staffers contracted the virus. His approach has instead focused on promoting unproven treatments.

    Biden, who has publicly supported mask-wearing, has proposed a seven-point COVID-19 plan focuses, inter alia, on testing and contact tracing, improving access to personal protective equipment (PPE), implementing national masks mandates and equitable distribution of equipment, treatments and vaccines.

    Cuba relations

    Caribbean countries have long criticized the US’ illegal and unjustified economic and trade embargo against that hispanophone nation. CARICOM has a Trade and Economic Cooperation Agreement with Cuba and the détente in US-Cuba relations under the Obama administration made trade between Cuba and the Caribbean logistically and politically easier. President Trump, however, has taken a hardline stance against Cuba, reinstituting many of the restrictions which had been rolled back during his predecessor’s second term in office.

    Biden has called for a ‘new Cuba policy’ and while he has not given specifics, probably in an effort not to alienate Cuba-American voters in Florida, he has criticized President Trump’s policy towards that country as ‘not working’. However, it is unlikely that even if he wanted, Biden would be able to end the embargo without a Democratic-controlled Congress. Three Republican Senators introduced a bill threatening Caribbean countries which accepted medical assistance from Cuba as part of their efforts to fight the COVID-19 outbreak.  

    Other issues

    Of caution, however, is that Caribbean countries should consider the harsh stance President Obama took against Caribbean international financial centers (IFCs), branding them repeatedly as ‘tax havens’. It is unclear whether Biden would continue such an approach. It was also under the Obama Administration that saw the implementation of the extraterritorial Foreign Account Tax Compliance Act (FATCA) entering into effect in 2014 which, simply put, coerced countries to sign agreements in which they committed their financial institutions to report on the assets held by US account holders in an effort to combat tax evasion by US taxpayers.

    President Obama’s initiatives in the region also focused primarily on security issues than economic development issues.  And while he signed the US-Caribbean Strategic Engagement Act of 2016 months into his final term, President Obama’s administration continued the US’ failure to amicably resolve the US-Antigua gambling dispute years after the twin-island State won its case against the US at the WTO. It remains to be seen what will be Biden’s approach to US-Caribbean relations.

    No normal election

    This is by no means a ‘normal’ US election. First, President Trump has constantly undermined confidence in the electoral process through unfounded allegations of ‘rampant’ voter fraud and a ‘rigged election’. Second, this election will be occurring in the middle of a pandemic and it is unlikely that the projected winner will be known on election night as has been traditionally the case. COVID-19 fears might also dampen voter turnout on Election Day. Third, although early voting turnout has been high, there have been reports of voter intimidation,  interference with the US Postal service, attempts to purge voter rolls in certain ‘red States’, all of which can negatively impact voter turn-out, especially among minorities. Fourth, similar to the ‘lock her up’ chants he encouraged during the 2016 campaign, President Trump has again called for his Attorney-General to indict and arrest his opponent, Joe Biden, as well as other prominent democrats. Fifth, President Trump has repeatedly refused to commit to a peaceful transfer of power if he loses the election, and coupled with his claims of voter fraud, may lead to heightened civil unrest. Therefore, while Biden has been leading in national polls for some time, his win cannot be taken as a foregone conclusion.

    In conclusion

    This article sought to show that the outcome of this high-stakes US presidential election will have non-negligible implications for US government policy making on issues consequential for Caribbean countries. While it is herein argued that the policy positions espoused by the democratic nominee appear generally better aligned with Caribbean interests, this is not to suggest, for reasons already stated, that a Biden win will automatically be a net positive for the Caribbean. Assuming a Biden victory and a peaceful transfer of power in January 2021, the extent to which Biden can advance his legislative agenda will be largely determined by whether Democrats retain their majority in the House of Representatives and can also flip the currently Republican-controlled Senate. A hostile Congress can thwart any President’s legislative agenda.  Moreover, while it is hoped that Senator Harris’ Caribbean ancestry will have a positive influence on a Biden Administration’s policy towards the Caribbean, the primary focus of the Administration will understandably be on rescuing the US economy and bringing the COVID-19 outbreak under control. Regional governments will likely still have to lobby the Administration and work with congressional allies on advancing the issues of concern to our countries. That said, a Biden Administration would, hopefully, signal the return to some semblance of stability and predictability to US policy after what could only be described as a chaotic and strange last four years.

    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.

  • Witnesses call for renewal of Caribbean Basin Trade Partnership Act at US House Hearing

    Witnesses call for renewal of Caribbean Basin Trade Partnership Act at US House Hearing

    On Thursday, September 10, 2020, the United States (US) House of Representatives’ Ways and Means Committee held a hearing to consider the renewal of the Caribbean Basin Trade Partnership Act (CBTPA), one of the constituent pieces of legislation of the Caribbean Basin Initiative.

    Five witnesses participated in the hearing. They were:

    The Honorable Hervé H. Denis, Ambassador of the Republic of Haiti, the Embassy of the Republic of Haiti

    Mr. Georges Sassine, Board Member and Former President, Association des Industries d’Haïti

    Ms. Lauren Stewart, Regional Program Director, Americas, Solidarity Center

    Ms. Beth Baltzan, Principal, American Phoenix Trade Advisory Services PLLC

    Mr. Jerry Cook, Vice President, Government and Trade Relations, Hanesbrands, Inc

    Written versions of their testimony and the recording of the hearing may be viewed on the official page here.

  • Caribbean Trade and Development News Digest – August 30 – September 5, 2020

    Caribbean Trade and Development News Digest – August 30 – September 5, 2020

    Welcome to the Caribbean Trade & Development News Digest for the week of August 30-September 5, 2020! We are back from our vacation hiatus and happy to once again bring you the major trade and development headlines and analysis from across the Caribbean Region and the world from the past week.

    So what has happened while we were on break? The term of World Trade Organization (WTO) Director General (DG) Robert Azevedo ended on August 31, 2020 following his announcement in May that he would be stepping down from the post a year early.

    The race for his successor is heating up and each of the candidates is making the rounds trying to make the case for why he or she is the best candidate to head the beleaguered WTO.

    The US and EU came to an agreement in which the EU will eliminate tariffs on imports of U.S. live and frozen lobster products and the US will reduce by 50% its tariff rates on certain products exported by the EU worth an average annual trade value of $160 million. Read the full joint statement here.

    The WTO has issued a call for papers for its new WTO Trade Economist Thematic Award. Trade experts at universities in developing countries are invited to submit case studies on the impact of the COVID-19 pandemic on trade and trade policy. The deadline is September 30, 2020. Read more here.

    This week, the US House Ways and Means Committee will hold a remote hearing to consider the renewal of the Caribbean Basin Trade Partnership Act (CBTPA).

    REGIONAL

    AAFA, trade bodies urge USTR to support CBTPA renewal

    Fibre2Fashion: The American Apparel & Footwear Association (AAFA) along with a dozen other trade bodies recently urged US trade representative Robert E Lighthizer to support Congress to renew the Caribbean Basin Trade Partnership Act (CBTPA) as soon as possible. The act, which celebrated its 20th anniversary on May 18 this year, is set to expire on September 30. Read more

    UNCTAD 15 to benefit Barbados

    Barbados Today: Barbadians are set to reap benefits from the upcoming United Nations Conference on Trade and Development (UNCTAD) 15 scheduled to take place next April. Read more

    Barbados to open embassy in Ghana

    Nation News: Minister of Health and Wellness, Lt Col Jeffrey Bostic, announced on Monday that Barbados has established an embassy in Ghana and the opening is scheduled for October. Read more

    Important Issues for CARICOM SIDS Highlighted at Ministerial Round Table

    Barbados Today: His Excellency Simon Stiell of Grenada has shared a number of important issues for CARICOM Small Island Developing States (SIDS) to be addressed as COP26 approached. The issues were shared with the Incoming COP President and his team at a Ministerial Roundtable between CARICOM Ministers and the Incoming President of the 26th United Nations Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP 26), on Thursday 27th August 2020. Twelve CARICOM Ministers attended the meeting. Read more

    Development Bank of Jamaica to assist medium-sized companies through innovation grant fund

    Jamaica Observer: The Development Bank of Jamaica (DBJ) has embarked on the implementation of a new product, the Innovation Grant Fund, to provide financial support for medium-sized companies looking to introduce or expand innovative processes, products, and/or services. Read more

    Belize to export another 241 head of cattle to Mexico

    Вrеаkіng Веlіzе Nеwѕ: ВВN hаѕ соnfіrmеd thаt ѕоmе 241 hеаd оf саttlе hаvе bееn lоаdеd іntо thrее truсkѕ іn thе vіllаgе оf Вluе Сrееk, Оrаngе Wаlk Dіѕtrісt, аnd аrе оn thеіr wау fоr ехроrt tо Мехісо. Read more

    BelizeINVEST is calling all invest service providers to join its new network

    Breaking Belize News: ВеlіzеІNVЕЅТ, а unіt оf thе Веlіzе Тrаdе аnd Іnvеѕtmеnt Dеvеlорmеnt Ѕеrvісе (ВЕLТRАІDЕ), іѕ саllіng оn іnvеѕtmеnt ѕеrvісе рrоvіdеrѕ асrоѕѕ Веlіzе tо јоіn ВЕLТRАІDЕ’ѕ Іnvеѕtmеnt Ѕеrvісеѕ Nеtwоrk (ВІЅN). Read more

    INTERNATIONAL

    Brexit: PM sets 15 October deadline for EU trade deal

    BBC: Prime Minister Boris Johnson is expected to say that if no agreement on trade between the EU and UK can be reached by 15 October both sides should “accept that and move on”. Read more

    UK Government announces new Board of Trade

    Gov.uk: The Department for International Trade has today (Friday 4 September) announced its new advisers to the Board of Trade, comprising of senior figures from business, academia and government. Read more

    Tony Abbott: Ex-Australian PM appointed UK trade adviser

    BBC: Former Australian Prime Minister Tony Abbott has been appointed as an unpaid trade adviser to the UK government. Boris Johnson rejected claims Mr Abbott was not suitable for the role, despite criticism over past comments on women, LGBT people and climate change. Read more

    Brexit: This week is ‘moment of reckoning’ for UK-EU trade deal with two sticking points remaining – Raab

    Sky News: David Frost, who will lead the UK’s post-Brexit trade talks, will meet EU chief negotiator Michel Barnier in London next week. Read more

    United Kingdom to quit Brexit trade-deal talks if no agreement with European Union by October 15

    ABC (Australia): British Prime Minister Boris Johnson has warned Britain could walk away from post-Brexit trade talks with the European Union within weeks ahead of the next crucial round of discussions. Read more

    US trade deficit soars to 12-year high

    The Hill: The trade deficit in July spiked 18.9 percent to $63.6 billion, the highest since July 2008 during the Great Recession, according to Commerce Department data released Thursday. Read more

    As WTO Members Prepare to Name a New Chief, We Must Remember the Lessons of Years Past

    IISD: It has now been seven years since the World Trade Organization (WTO) saw its top leadership position change hands and, as expected, who will be the next head of the Geneva-based institution has become the talk of the trade community. Read more

    As Roberto Azevêdo Jumps Ship from WTO to Pepsi, What Legacy Does he Leave Behind?

    The Wire: Azevedo has claimed success on issues like a Trade Facilitation Agreement aimed to cut through delays in trade. But on his watch, the WTO also failed to conclude the Doha Development Agenda. Read more

    WTO Outlines Relationships between Cross-border Mobility, COVID-19, and Global Trade

    IISD: The World Trade Organization (WTO) has issued an information note that articulates how temporary border closures and travel restrictions associated with the COVID-19 pandemic have affected goods and services trade. Read more

    Lacalle Pou says EU-Mercosur deal ‘advances’ but not at ‘expected speed’

    Buenos Aires Times: Uruguayan leader’s comments just the latest in a series indicating that momentum for the accord has slowed. Read more

    Low-Key EU Player’s New Job May Help Sell Mercosur Deal

    Bloomberg: A month before he resigned as European Union trade commissioner over an Irish coronavirus controversy, Phil Hogan made a much less publicized job announcement: appointing the first person to police the bloc’s slew of commercial agreements with the rest of the world. Read more

    Brazil/Argentina spat over non automatic import licenses delaying Mercosur bilateral trade

    Mercopress: Brazil expressed its disenchantment with the Argentine policy of delaying the approval of the so-called nonautomatic import licenses which has seen millions of dollars in sales held at the border. This situation has been increasing in recent months, in what is considered a breach of bilateral accords in the framework of Mercosur agreements, and the World Trade Organization, WTO, rules. Read more

    Top envoy says US preparing tighter oil sanctions on Venezuela

    Al Jazeera: US President Trump has ramped up sanctions on Venezuela’s state-run PDVSA, its key foreign partners and its customers. Read more

    Taiwan and US move closer to Bilateral Trade Agreement

    Nikkei Asian Review: Taiwan President Tsai Ing-wen addressed one of the primary irritants in the U.S.-Taiwan trade relationship last week by relaxing regulations on pork imports containing the steroid ractopamine. Read more

    Japan and Britain delay agreement on post-Brexit trade pact

    Japan Times: The Japanese and British governments stopped short of reaching a broad accord on a new bilateral trade deal on Friday, citing the need for further negotiations on how to handle Japanese tariffs on British blue cheese. Read more

    Africa: Duty-Free Imports Sought by U.S. Apparel Makers Would Vitiate Africa Trade – Agoa Coalition Warns Congress

    AllAfrica: The following letter was sent by the Agoa Action Coalition to the chairman of the U.S. House Ways and Means Subcommittee on Trade Earl Blumenauer (Democrat-Oregon), as well as the chairman of the full committee, Richard Neal (Democrat-Massachusetts) and ranking Committee member Kevin Brady (Republican-Texas), and ranking Trade Subcommittee member Vern Buchanan (Republican-Florida). Read more

    Africa Trade Pact’s Architects Seek to Help Offset Tariff Losses

    Bloomberg: Architects of an Africa-wide free-trade area are in talks with the African Export-Import Bank to set up an adjustment facility to offset revenue losses for countries that lower cross-border tariffs, according to the zone’s most senior official. Read more

    Turkey’s push to win over the Maghreb: The gateway to Africa

    The Africa Report: For several years, the Turks have been working to strengthen their ties with Algiers, Tunis and Rabat. This strategy is all the more crucial since Recep Tayyip Erdogan has engaged his country on several fronts in the region. Read more

    Covid-19 hits East African agri value chains

    African Business: As the African Green Revolution Forum (AGRF) kicks off on September 8, agriculture and food security will take the spotlight. While agriculture provides food and income security to more than half of the population in developing countries, the opportunities are mostly low paying with poor working conditions. Read more

    Pacific island countries band together to increase export quality

    EIF: Trade ministers in the Pacific approve the region’s first strategic framework on Quality Infrastructure. Read more

    India’s  virus  woes hit imports more than its exports

    Livemint: Between Apr and Jul, the goods imports have fallen by 46.7% to $88.9 bn. In comparison, goods exports during the same period have fallen at a much slower pace of 30.3% to $74.9 bn. Why have exports fallen at a much slower pace than imports? Mint takes a look. Read more

    India-Bangladesh trade halts after exporters allege corruption

    The Telegraph: Disruption in the trans-border trade for 2 consecutive days has resulted in a loss of nearly Rs 20 crore. Read more

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