The United States International Trade Commission (USITC) has released its twenty-fourth biennial report entitled “Caribbean Basin Economic Recovery Act: Impact on US Industries and Consumers and on Beneficiary Countries“.
Seventeen Caribbean countries and territories currently benefit from duty-free access to the US market for many of their goods under the Caribbean Basin Economic Recovery Act (CBERA), one of the major pieces of legislation under the Caribbean Basin Initiative.
The 150-page report dated September 2019 covers the period 2017-2018, but focuses mainly on data and developments from 2018.
Below are some of the key findings from the report:
The report found that overall, the US’ total imports from CBERA countries grew from $5.8 billion in 2017 to $6.1 billion in 2018. This translates to an increase of 4.7 percent. Turning specifically to US imports under the CBERA programme, those grew from $1.5 billion in 2017 to $1.7 billion in 2018, an increase of 9.1 percent. US imports under CBERA accounted for 27.8 percent of all imports from CBERA beneficiaries.
It should be noted, however, that these increases were primarily due to higher U.S. imports of methanol (mainly from Trinidad & Tobago) and of textiles and apparel (mainly from Haiti).
The report found that the CBERA’s impact on the U.S. economy “generally was negligible in 2017–18 and is likely to remain so”. According to the report, this is primarily because U.S. imports under CBERA comprise just 0.07 percent of total U.S. imports from the world.
By contrast, the report noted that CBERA “continues to have a positive impact on a number of Caribbean Basin countries”. It singles out in particular Haiti as the “the greatest beneficiary of CBERA trade preferences in recent years” due primarily to more flexible rules of origin for apparel that country enjoys compared to other beneficiaries.
It also found that CBERA has encouraged the development of niche product manufacturing in several other countries. The examples of polystyrene from The Bahamas and fruit juice from Belize were cited.
Alicia Nicholls, B.Sc., M.Sc., LL.B., is an international trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @LicyLaw.
DISCLAIMER: All views expressed herein are her personal views and do not necessarily reflect the views of any institution or entity with which she may be affiliated from time to time.
Welcome to the Caribbean Trade & Development News Digest for the weeks of September 15-October 5, 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 weeks.
HIGHLIGHTS
The India-CARICOM Leaders’ Summit was held on the sidelines of the 74th session of the UN General Assembly. Read more about the meeting here.
The WTO has cut its global trade growth forecast again. World merchandise trade volumes are now expected to rise by only 1.2% in 2019, substantially slower than the 2.6% growth forecast in April. Read the full outlook here.
In the latest installment of the 15 year Boeing-Airbus saga between the US and the EU, a WTO arbitrator on October 2 authorised the US to impose tariffs up to $7.5 billion worth of European exports annually in retaliation for illegal government aid to Airbus. Read the full ruling here.
With just three weeks to go before the UK is officially due to leave the EU, the UK PM Boris Johnson has made a new Brexit proposal regarding the Ireland-Northern Ireland border issue. Read the proposal here.
REGIONAL NEWS
India, CARICOM agree to create task force for trade, diversification
LoopTT: The meeting concluded with a decision to create a joint India/CARICOM task force which will develop and implement concrete plans to further advance trade and facilitate diversification in the region. Read more
No change
Barbados Today: The UK’s Department for International Trade (DIT) in Bridgetown Barbados hosted a trade and investment reception to stimulate increased business opportunities between the UK and Caribbean markets. Read more
Antigua and Barbados to continue talks over sale of LIAT’s shares
Barbados Today: The Government of Antigua and Barbuda said that it intends to keep discussions going with Barbados with a view over the sale of the latter’s shares in the regional airline, LIAT, despite reports from other regional media houses that negotiations between both countries has fallen through. Read more
Caribbean governments urged to take a collective approach to marijuana
LoopSLU: St Vincent and the Grenadines Minister of Agriculture, Saboto Caesar is calling for Caricom and the Organisation of Eastern Caribbean States (OECS) to take a collective approach to the development of standards governing the negotiation of cannabis trade agreements for their member states. Read more
CARICOM Sugar stakeholder engagement meeting held in Belize
Breaking Belize News: Minister of Investment, Trade and Commerce, Tracy Panton, Minister of Agriculture, Godwin Hulse and the CARICOM Secretariat hosted sugar stakeholders from across the Caribbean Community at the Best Western Plus Biltmore Plaza in Belize City on October 2nd, 2019. Read more
CARICOM and Central America make common cause on fish
Breaking Belize News: The fishing communities of the Caribbean and Central America are meeting this week in Belize City to seek joint action on facing the problems affecting both. Read more
Holness Reiterates Call For Concessionary Financing For CARICOM
The Gleaner: Jamaica yesterday reiterated a call for concessionary financing for Caribbean Community (CARICOM) countries, saying that the present policy was severely hampering the socio-economic growth of the 15-member regional grouping. Read more
Local Chamber of Commerce members meet with Indian High Commissioner
Antigua Observer: On Monday 16th September 2019, a delegation of the local Chamber of Commerce held high-level discussions with the newly-appointed Indian High Commissioner to CARICOM, Dr. K.J. Srinivasa and his second in command, Mr. R.K. Perindia, on their first official visit since the High Commissioner’s recent posting. Read more
INTERNATIONAL NEWS
UK response to WTO ruling on Airbus
UK.gov: The UK is confident that it has fully complied with WTO rulings in the Airbus dispute. Read more
WTO members engage in exploratory talks on market access for environmental services
WTO: WTO services negotiators debated market access issues relating to environmental services based on a new communication tabled by Australia, Canada, Mexico, New Zealand and Switzerland at an informal meeting of the Council for Trade in Services in Special Session held on 30 September 2019. Read more
Brexit: We can do a deal if EU is willing – Johnson
BBC: Boris Johnson has claimed his Brexit proposals have picked up support in Parliament as he urged the European Union to compromise. Read more
EAEU signs free trade agreement with Singapore under Armenian chairmanship
Emerging Europe: The Eurasian Economic Union (EAEU), the Russian-led economic alliance of Armenia, Belarus, Kazakhstan and Kyrgyzstan, has signed a free trade agreement with Singapore during the annual summit of the Supreme Eurasian Council, the organisation’s executive body in Yerevan, the Armenian press has reported. Read more
High-level meeting in Peru takes aim at illegal wildlife trade
CGTN: The jaguar, the largest cat in the Americas, is the emblem of a new initiative to combat the illegal trade in the continent’s wild animals. The iconic but threatened predator has a key role in the ecosystem but also tremendous cultural significance for the peoples of the Americas. Read more
Nigeria, South Africa Seal 32 Trade Pacts
AllAfrica: Nigeria and South Africa, yesterday, signed 32 bilateral agreements and memoranda of understanding covering trade and industry, science and technology, defence, agriculture and energy, thus expanding Africa’s deepest trade relationship. Read more
WTO in ‘critical situation’, EU warns
Euractiv: EU member states discussed on Tuesday (1 October) how to address the “critical situation” of the World Trade Organisation, as the US continues to block the renovation of its appellate body, key for the functioning of the institution. Read more
Welcome to the Caribbean Trade & Development News Digest for the weeks of September 8-14, 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
Prime Minister of Barbados, the Hon. Mia Amor Mottley, delivered the prestigious 16th Raul Prebisch Lecture. Prime Minister Mottley’s theme was ‘Invisible yet Indispensable’. The full lecture may be watched here.
UNCTAD held its first UN Trade Forum, with climate change as the major focal point. This week also marked the twenty-fifth anniversary of the conclusion of the Uruguay Round which culminated in the formation of the World Trade Organization (WTO).
On a personal note, I had the pleasure and honour of being a panelist at the 3rd annual BITT Conference ‘Central Bank meets Blockchain‘. I spoke on the potential benefits of BITT’s proposed blockchain-enabled Caribbean Settlement Network (CSN) for facilitating intra-regional payments and trade, regional integration and development. Kudos to my fellow panelists, to the moderator and to the BITT team on an informative and well-executed conference!
L-R – John Williams (CEO, Cave Shepherd Group of Companies), Racquel Moses (CEO, Caribbean Climate Smart Accelerator), Marla Dukharan (Chief Economist of BITT and moderator of the panel), Alicia Nicholls (Trade Specialist, UWI) and Geoffrey Scott (Executive Director, ICBL).
REGIONAL NEWS
Barbados leader urges moral leadership to tackle climate crisis
UNCTAD: Prime Minister of Barbados, Mia Amor Mottley, challenged the world to reinvent the international order and do better by small island states that are on the frontlines of the climate crisis, fighting for their survival in a war they did not start. Read more
Hefty bill for pork imports
Barbados Advocate: A Government official is gravely concerned with the fact that millions of dollars are being spent on importing pork into Barbados. Read more
JAMPRO targeting Latin America for Jamaican exporters
Loop Jamaica: To increase Jamaican exporters’ access to Latin American and Caribbean (LAC) markets, Jamaica’s trade and investment promotions agency, JAMPRO, will be leading a delegation of 6 companies to the LAC Flavors trade exhibition in Cali, Colombia. Read more
Digitally transforming the Eastern Caribbean
World Bank: The Caribbean has been at the forefront of the resilience-building agenda. For countries in the region, most of them Small Island States located in the path of strong and recurrent hurricanes, climate change adaptation is a matter of survival. The passage of Hurricane Dorian in 2019 is a stark reminder of this vulnerability. Read more
Region good for trade
Newsday: Trade and Industry Minister Paula Gopee-Scoon believes the region has evolved to transform its economies to some extent away from traditional sectors into the production of high value-added goods. Read more
Bahamas suspends immigration crackdown
Jamaica Observer: The Bahamas Government says it has suspended the crackdown on illegal migrants in the Abacos and Grand Bahama, as the death toll from the passage of Hurricane Dorian a week ago climbed to 45. Read more
Dr. Rowley goes to Washington
Trinidad Express: Within 24 hours of his arriving in Washington DC, Prime Minister Dr Keith Rowley met with a number of high-ranking members of the United States Congress on Thursday. Read more
Caricom Silent While Refined Sugar Quarrel Rages
Jamaica Gleaner: It might be working feverishly behind the scenes to cool tempers and iron out differences as it normally does in these matters, but the secretariat for regional trade bloc Caricom is not saying anything publicly about the running battle between regional sugar producers on the one hand, and manufacturers and national governments. Read more
Greater ties with CARICOM-Africa Trading Partners
Barbados Advocate: The changing nature of the world economy is demanding that there be greater co-operation between Barbados and its Caribbean Community trading partners as well as with African countries. Read more
Trump admin won’t give temporary protected status to Bahamian victims of Hurricane Dorian
CNBC: The status would have let Bahamians work and live in the U.S. until it is deemed safe to return home. Read more
Trade issues too distant from climate issues, says Vaz
Jamaica Observer: Jamaica has called on member countries of the World Trade Organization (WTO) to include the cost associated with climate change in any discussion on international trade. Read more
The Rum Market In The UK Could Grow By 8.8% In Coming Years
The Voice: Caribbean Rum is one of the preferred drinks of the British, a fact reflected in the market, which is expected to grow in the UK by 8.8% in coming years. Revenue in the rum segment for 2019 amounts to nearly £1 million. Read more
INTERNATIONAL NEWS
All 16 nations set for final RCEP deal: Australian negotiator
The Hindu: Amidst conflicting signals from the government over whether India will join the Regional Comprehensive Economic Partnership (RCEP) this year, Australia’s lead negotiator for the 16-nation free trade agreement (FTA) says all countries have “committed” to completing talks in time for the RCEP summit on November 1. Read more
Mexico may be an unexpected winner of the US-China trade war
CNBC: China and the United States are disrupting trade in much of the world with their trade war — but Mexico may be a winner. Read more
Wary of China in RCEP, India looks for bilateral deals amid mounting trade deficit
Business Today: In 2018-19, India had trade deficit with 11 out of 20 RCEP countries. In 2017-18, it had a trade deficit of $104 billion with all RCEP countries; more than half of this ($57.86 trillion) was with China. Read more
A Latin American Brexit? Analysing Brazil’s threat on Mercosur
Buenos Aires Times: Jair Bolsonaro has said Brazil could leave Mercosur if Argentina, the second-largest economy in the customs union, pivots to the left after presidential elections in October. But how feasible is such a break? Read more
South Korean Duties on Japanese Valves Violate Rules, WTO Finds
Bloomberg: The World Trade Organization on Tuesday ruled for a second time that South Korea’s anti-dumping duties on Japanese valves violate international trade rules, according to a decision published on the WTO website. Read more
Trump Advisers Consider Interim China Deal to Delay Tariffs
Bloomberg: Trump administration officials have discussed offering a limited trade agreement to China that would delay and even roll back some U.S. tariffs for the first time in exchange for Chinese commitments on intellectual property and agricultural purchases, according to five people familiar with the matter. Read more
WTO on brink of crisis due to inaction over dispute-settlement reforms, Birmingham warns
Sydney Morning Herald: Trade Minister Simon Birmingham has warned inaction over reform of the World Trade Organisation’s dispute-settlement system has taken the body to the brink of crisis. Read more
A New Phase in Japanese-South Korean Relations as Trade Becomes Weapon in Political Row
Nippon: Japanese and South Korean relations entered a new phase when the Japanese government announced on July 1 that it was going to “normalize” its export control measures, in effect curbing its trade with South Korea. The move linked a political conflict between the two countries with the economy in a way that has not been seen before. Read more
Trade rep sends responses on revised NAFTA deal to Democrats
Politico: U.S. Trade Representative Robert Lighthizer on Wednesday formally responded to House Democrats’ concerns about the new North American trade agreement, marking a step forward in negotiations between the Trump administration and Capitol Hill. Read more
Britain agrees post-Brexit trade deal with southern Africa
Reuters: Britain has agreed a deal with six southern African countries including South Africa, the continent’s most developed economy, that will ensure continuity of trade conditions after Brexit, the British High Commission in South Africa said on Wednesday. Read more
New EU trade commissioner is Phil Hogan
BBC: Irishman Phil Hogan has been named as the EU’s new trade commissioner. His appointment was announced at a press conference by the incoming head of the European Commission, Ursula von der Leyen. Read more
Trump poised to hit EU with billions in tariffs after victory in Airbus case
Politico: The United States has gotten the green light to impose billions of euros in punitive tariffs on EU products in retaliation for illegal subsidies granted to European aerospace giant Airbus. Read more
Countries dependent on commodities should diversify economies to survive climate crisis, says UN report
UNCTAD: Economic and export diversification is the best response to the challenges posed by climate change in developing countries that depend on commodities, according to UNCTAD’s Commodities and Development Report 2019. Read more
Welcome to the Caribbean Trade & Development News Digest for the weeks of August 18-31, 2019! We do apologise again for the delay in last week’s digest and are happy to bring you the major trade and development headlines and analysis from across the Caribbean Region and the world from the past two weeks.
We also extend our best wishes and prayers to our brothers and sisters in the northern Caribbean and the US facing Hurricane Dorian.
HIGHLIGHTS
WTO reform was one of the topics for discussion at the recently held G-7 Leaders Meeting in Biarritz, France. See G-7 speech by WTO DG on why WTO reform is an opportunity to tackle inequalities.
On the Brexit front, things took another turn for the bizarre as Prime Minister Boris Johnson requested the prorogation of Parliament until October 14, 2019.
The Amazon rainforest has been experiencing wildfires drawing the attention of the international community. It may also have implications for the EU-Mercosur trade agreement.
REGIONAL NEWS
St Kitts-Nevis records 13-year-low in exports to US in June 2019
WICNews: The value of goods and services exported from St Kitts and Nevis to the United States hit a 13 -year low for the month of June this year, 2019. Read more
Caribbean is a leading importer of US goods – US diplomat
Jamaica Observer: The Caribbean which is described as the “third border” of the United States, is a leading trade partner in terms of United States exports to the region and as the largest importer of Caribbean goods, a United States diplomat has said. Read more
Local fishermen encouraged to meet counterparts in Tobago
Barbados Today: A team of Barbadian fishermen could soon be headed to Tobago for discussions on fishing, with the expectation this could lead to the end of a years-old fishing dispute. Read more
Jamaica government labs upgraded to analyse salt, fat in foods
Jamaica Observer: For the first time, Jamaica will have the capacity to analyse the sugar, salt and fat content of food products. Read more
Cuba Seeks to Expand Ties with China
St Kitts & Nevis Observer: The director general of Bilateral Affairs of the Cuban Ministry of Foreign Affairs, Emilio Lozada, began this Monday a working visit to China, the Cuban Foreign Ministry reported in Havana. Read more
Secretary General of ACP urges Caribbean to negotiate new agreement with Britain post Brexit
Antigua Observer: According to CANA, the Secretary General of the African, Caribbean and Pacific (ACP) Group, Dr. Patrick I Gomes, says it will be in the Caribbean Community (CARICOM) countries favour to quickly negotiate new trade agreements with the United Kingdom as it moves to leave the European Union. Read more
Barbados UN Ambassador’s Keynote Address at CTO Conference
St Kitts & Nevis Observer: It is wonderful to be in the Caribbean, in the beautiful country of St Vincent and the Grenadines, amongst brothers and sisters who are responsible for the leadership and management of our region’s premier foreign exchange earner. Read more
Rice exports dip but earnings up during first half of 2019 –GRDB
Stabroek: Despite a dip in rice exports within the first six months of the year as compared to 2018, the Guyana Rice Development Board (GRDB) says more revenue has been earned during the same period by way of the sale of higher-value products. Read more
Economic Times: The Finance ministry has initiated a review of India’s free trade agreement framework to assess the impact of such pacts on the overall economy. The view has been gaining ground among policymakers and industry that these free trade agreements (FTAs) brought little tangible benefit to India, while helping the partner country. Read more
UK and South Korea sign ‘continuity trade agreement’
BBC: The UK has signed a “continuity” trade agreement with South Korea, allowing businesses to keep trading freely after Brexit. Read more
Over 100 stakeholder consultations on proposed RCEP in last 6 years: Commerce Ministry
Hindu Business Line: The Commerce Ministry, on Saturday, said over 100 stakeholder consultations have been held on the mega free trade agreement RCEP in the last 6 years. Read more
AfCFTA is game-changer for Africa’s socio-economic development – ECA
Ghanaweb: Dr Joseph Atta-Mensah, Principal Policy Advisor, Macroeconomics and Governance Division, Economic Commission for Africa (ECA) has described the African Continental Free Trade Area (AfCTFA) agreement as the game-changer for Africa’s socio-economic development. Read more
As Ghana prepares to host the African Continental Free Trade Area (AfCFTA) secretariat it organises a High-Level Policy Dialogue on Harnessing the benefits of the AfCFTA for a Ghana beyond Aid
Africa News: The Ministry of Trade and Industry and the Ministry of Foreign Affairs and Regional Integration and, in partnership with the Economic Commission for Africa and the African Union Commission (AUC), are organising a High-Level Conference on AfCFTA from 19-21 August 2019, at the Accra International Conference Centre, Accra, Ghana focsuing on Harnessing the benefits of the African Continental Free Trade Area (AfCFTA) for a Ghana beyond Aid. Read more
Emmanuel Macron says he will block EU trade deal with Brazil over Amazon forest fires
Independent: France will block an EU trade deal with Brazil and its neighbours over the country’s handling of fires in the Amazon rainforest, a spokesperson for Emmanuel Macron has said. Read more
Bloomberg: Group of Seven leaders hold their final day of talks in Biarritz, France, with U.S. President Donald Trump holding out the prospect of a meeting with Iran’s leader and signaling fresh trade talks with China. Read the developments in real time. Read more
Remarks by President Donald Tusk before the G7 summit in Biarritz, France
EU: First of all, let me express my best wishes to the President of the European Commission, Jean-Claude Juncker. I always attended G7 summits with Jean-Claude, and I must say I will miss him in Biarritz. Read more
WTO reforms should be wholistic and comprehensive
Moneycontrol: Commerce and Industry Minister Piyush Goyal on August 22 made a case for wholistic and comprehensive reforms of the World Trade Organisation (WTO) without ignoring the ground realities, especially the stark inequality among developed and developing nations. Read more
The crucial role of a WTO appeals court
The Hill: Imagine there were no Supreme Court, and questions about fundamental issues such as free speech, religious freedom and equal protection were left up to various lower courts to decide. Read more
What’s at Stake and at Risk in U.S.-Japan Trade Talks
Bloomberg: More than two years after U.S. President Donald Trump walked away from a regional Asia-Pacific trade agreement, the U.S. and Japan — the world’s largest and third-largest economies — are negotiating a deal of their own. Both sides say they are very close to a deal. Read more
RCEP: India wants auto-trigger mechanism to curb import surges
Hindu Business Line: To protect domestic industry against surge in imports once tariffs are brought down under the proposed Regional Comprehensive Economic Partnership (RCEP) pact, India has suggested an auto trigger method that would automatically increase import levies once shipments cross a given threshold limit. Read more
Petition handed in opposing Switzerland-Mercosur trade deal
Swissinfo: A 65,000-strong petition has been handed into federal authorities in Bern demanding the cancellation, or significant revision, of a trade deal between EFTA – of which Switzerland is part – and the Mercosur trade bloc. Read more
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