Caribbean Trade Law and Development

Tag: Caribbean

  • Caribbean Trade and Development News Digest – February 14 – 21, 2021

    Caribbean Trade and Development News Digest – February 14 – 21, 2021

    Welcome to the Caribbean Trade and Development News Digest for the week of February 14-21, 2021! We are pleased to bring you the major trade and development news headlines and analysis from across the Caribbean Region and the world from the past week.

    THIS WEEK’S HIGHLIGHTS

    It’s official! Dr. Ngozi Okonjo-Iweala is the new WTO Director General-elect and will assume office on March 1. A well-respected and world-renowned development economist, Dr. Okonjo-Iweala will not only become the seventh person to head the WTO, but makes history as the first female and first person from Africa in the role. Noteworthy as well is that Isabelle Durant is now acting Secretary General of UNCTAD. This means that all three of the major organisations focused on global trade – the WTO, UNCTAD and ITC – are now headed by women! To read the statement by Dr. Okonjo-Iweala to a special session of the WTO’s General Council, click here.

    The evaluation report on the CARIFORUM-EU Economic Partnership Agreement for the period 2008-2018 has been made public and can now be accessed here.

    This week the EU also released a communication outlining the elements that will comprise its new “open, sustainable and assertive trade strategy” in the mid-term. Read more about it here.

    The US has officially rejoined the Paris Climate Agreement, 107 days after the Trump Administration pulled the country out of the pact. Read my article on this here.

    Coming up this week will be the 32nd Inter-Sessional Meeting of CARICOM Heads of Government.

    REGIONAL NEWS

    Trade case filed by Belize against Federation withdrawn from Caribbean Court of Justice

    St Kitts & Nevis Observer: Minister of International Trade et al, the Honourable Wendy Phipps, said diplomacy and negotiations by the Attorney General’s Chambers and the Office of the Solicitor General, St. Kitts and Nevis has been successful in having the Government of Belize, through its Ministry of International Trade, withdraw the recent case from the Caribbean Court of Justice (CCJ). Read more

    SKNLP: Brown sugar price to rise by 40% in St Kitts and Nevis

    WIC News: The government led by Harris announced in parliament on Thursday 18 February 2021 that the government has now applied a 40% tax on imported brown sugar, which will significantly increase costs for people, alleged St Kitts and Nevis Labour Party (SKNLP) in its statement. Read more

    Cabinet approves $50m export booster

    TT Guardian: Cabinet has approved a TT$50 million export booster initiative for the manufacturing sector, the objective of which is to promote exports of manufactured goods. Read more

    No improvements until Customs, industry on same page

    TT Newsday: If the ease of doing business in this country is to improve, facilities involved in the trade, such as Customs, must be on the same page as the industries driving the economy.. This was one of the major takeaways from Amcham’s latest webinar titled Ease of Doing Business – Trade Modernisation on Monday. Read more

    Gopee-Scoon: Steel, feed prices will go down, hopefully

    TT Newsday: Trade minister Paula Gopee-Scoon is hopeful that, as the worldwide demand for items such as steel and key ingredients used to make feed normalises, so will their prices. Read more

    Trade Ministry allocates $20m for SME certification

    TT Newsday: The Trade Ministry, in conjuction with the TT Manufacturers’ Association and ExporTT, on Tuesday launched the National Export Booster Initiative, a suite of 16 programmes to enhance export promotion, capacity building and institutional strengthening within the manufacturing sector. Read more

    Trade Licence Unit modernising operations

    LoopTT: Moving from paper to digital, the Trade Licence Unit (TLU) of the Ministry of Trade and Industry has achieved a significant milestone in its modernisation efforts to further improve T&T’s trade and business environment. Read more

    The Power of Partnership! Local Cocoa and Chocolate Cluster Program Takes Steps to Revolutionize the Industry

    ExportTT: Ubergreen Organics Ltd. is the lead organisation of a newly formed Organic Fine Cocoa and Chocolate Cluster. One of its main goals is to increase excellence and quality within the industry through partnership. Read more

    CET for Panadol not approved

    TT Newsday: Minister of Trade and Industry Paula Gopee-Scoon has said suspension of the Common External Tariff was sought on hundreds of items, but Panadol was not approved. Read more

    Global testing standards goal set for next year

    Barbados Today: Export-oriented businesses in Barbados, Dominica and St Kitts and Nevis will be offered globally standardised testing at domestic laboratories as early as next year, says Daniel Best, Director of Project Department at the Caribbean Development Bank (CDB). Read more

    Developing Barbados’ yachting sector

    BGIS: The development of Barbados’ yachting sector could see the creation of new jobs and possibilities. Minister of Maritime Affairs and the Blue Economy, Kirk Humphrey, made this revelation as he disclosed that Government was preparing to take a paper to Cabinet on yachting to improve the sector. Read more

    CARICOM-Canada foreign ministers discuss post COVID-19 economic recovery

    St Kitts & Nevis Observer: Caribbean Community (CARICOM) Foreign Ministers met virtually on February 19 with their Canadian counterpart, the Hon. Marc Garneau, in the first virtual CARICOM-Canada Meeting of Foreign Ministers. St. Kitts and Nevis was represented by Foreign Minister, the Honourable Mark Brantley. Read more

    CARICOM is preparing a joint policy on tourism

    Prensa Latina: The countries of the Caribbean Community (CARICOM) are currently working on outlining a joint tourism policy in order to revive this key sector for the region’s economies. Read more

    CARICOM insists on equitable distribution of vaccines

    Cayman Compass: As regional neighbours begin the distribution of COVID-19 vaccines, 14 independent CARICOM states have insisted, in a resolution adopted Wednesday, on the equitable distribution of doses. Read more

    CARICOM asks WHO to host meeting on COVID vaccine distribution

    Nation News: The 15-member Caribbean Community (CARICOM) Thursday reiterated its call for the World Health Organisation (WHO) to host an international summit on distribution of the coronavirus (COVID-19) vaccine. Read more

    Prime Minister Minnis leads CARICOM meeting on Joint Tourism Policy

    CARICOM: Prime Minister the Most Hon. Dr. Hubert Minnis chaired the First Meeting of the Prime Ministerial Sub-Committee on Tourism to discuss the development of a Joint Tourism Policy for CARICOM. Read more

    Connecting & Collaborating: Establishing New Business Relationships

    Now Grenada: Address by Prime Minister of Grenada Dr The Rt Hon. Keith Mitchell at the Virtual Caribbean Business Forum – Connecting & Collaborating: Establishing New Business Relationships, 17 February 2021. Read more

    OECS to facilitate high-level WTO fisheries workshop

    MENAFN: With the support of the Pew Charitable Trusts (Pew) and the International Institute for Sustainable Development (IISD), the Organisation of Eastern Caribbean States (OECS) Commission will be convening a high-level workshop on the ongoing World Trade Organization (WTO) fisheries subsidies negotiations on February 24-25, 2021. Read more

    Regional forum on supply chain management

    Barbados Today: Global trade is in flux, and Caribbean companies are facing huge risks. The big question is: How will they plan for future disruptions, and adapt to more agile systems? To answer this, The University of the West Indies (The UWI) Five Islands Campus, in Antigua and Barbuda, will be hosting “Supply Chain Management and Logistics in a Post-COVID-19 Caribbean” on Monday, February 22, 2021, from 6:30 p.m. to 8:30 p.m. (Eastern Caribbean time). Read more

    INTERNATIONAL NEWS

    Building back better requires more women in international trade

    Globe and Mail History is being made as Nigeria’s Ngozi Okonjo-Iweala becomes the first woman and first African to ever lead the 26-year-old World Trade Organization (WTO). As the world grapples with how to “build back better,” a female director-general steering the global trading ship sends a powerful message: The world needs better trade outcomes and trade needs women on board. Read more

    Brexit: Are freight exports to the EU back to normal?

    BBC: The government says the volume of freight exports from Great Britain to the European Union has returned to normal, in spite of the new post-Brexit barriers to trade with the EU, and restrictions related to the pandemic. Read more

    Ports feel the chill as trade re-routes around Brexit Britain

    Guardian: In Holyhead, traffic has fallen 50% as hauliers stymied by Brexit find their way from Ireland to France without entering the UK. Read more

    The EU says it’s going to get tough on trade — and that could have ramifications for U.S., China

    CNBC: The European Union will take a new approach to international trade, recognizing that it’s time to stand up for itself after challenging times with countries like the U.S. Read more

    How European businesses are adapting to Brexit

    BBC: It’s been almost two months since the UK’s post-Brexit free trade deal with the EU came into effect. Under the new rules, European companies must directly pay UK sales tax, or VAT, on sales under £135 (€155; $190), so they now have to register and file quarterly declarations with the UK authorities. Other changes include customs declarations and additional paperwork. So how have they adapted so far and what impact have the changes had? Read more

    EU puts WTO at centre of greener trade reform push

    Reuters: The European Union put reform of the World Trade Organization at the heart of its trade strategy for the next decade on Thursday, saying global rules on commerce must be greener, take more account of state subsidies and be enforced. Read more

    EU trade chief warns Biden over ‘Buy American’ push

    Politico.EU: Valdis Dombrovskis says EU will track whether US is straying outside WTO commitments. Read more

    Here’s why China’s trade deal with Mauritius matters

    World Economic Forum: 2021 marks the start of two important trade policy developments in Africa. Firstly, the African Continental Free Trade Agreement (AfCFTA) has been signed by 54 of 55 African Union member states and ratified by 31 so far. Read more

    India, Mauritius trade agreement receives green light from Cabinet

    New Indian Express: In such agreements, the two trading partners cut or eliminate duties on a host of products besides liberalising norms to promote services trade. Read more

    RCEP free trade deal will have no major impact on US soybean, corn exports to China: USDA

    Hellenic Shipping News: The Regional Comprehensive Economic Partnership, the world’s largest free trade pact that China joined in late 2020 and which will likely take effect from mid-2021, will not have any major impact on US soybean and corn exports to China in the near future, the US Department of Agriculture said Feb. 17. Read more

    Canada, Indonesia Trade Talks Begin for Comprehensive Economic Partnership Agreement

    ASEAN Briefing: On January 11, 2021, Canada’s Minister of Small Business, Export Promotion, and International Trade, Mary Ng, announced that the country has launched public consultations on a Comprehensive Economic Partnership Agreement (CEPA) with Indonesia. Read more

    Wamkele Mene: ‘AfCFTA is going to be difficult but we’ve got to do it’

    The Africa Report: The AfCFTA secretary general talks to The Africa Report about the continental trade bloc’s January launch, forging value chains and diplomatic challenges ahead. Read more

    Private sector firms join push for AfCFTA agenda

    The East African: Private sector lobbies in Africa’s six regional trading blocs have formed the African Business Council, a continental umbrella body to spearhead the business agenda for the African Continental Free Trade Area (AfCFTA). Read more

    Six Reasons why Africa’s new free trade area is a global game changer

    Namibia Economist: Launched on 1 January, the AfCFTA is an exciting game changer. Currently, Africa accounts for just 2% of global trade. And only 17% of African exports are intra-continental, compared with 59% for Asia and 68% for Europe. Read more

    Nigeria AfCFTA committee begins sensitisation on new trade agreement

    Business a.m.: The National Action Committee on the African Continental Free Trade Area (AfCFTA) has flagged off a nationwide awareness and sensitisation tour targeted at placing Nigeria in a favourable position in the AfCFTA agreement. Read more

    How the AfCFTA impacts China-Africa trade relations

    CNBC Africa; The African Continental Free Trade Area agreement which launched operations on the 1st of January this year aims to accelerate intra-African trade and boost Africa’s trading position in the global market. Read more

    Ukraine, Japan start to negotiate free trade agreement

    Kyiv Post: Ukraine has started negotiating a free trade agreement with Japan with the aim of abolishing most import duties to strengthen their economic ties. 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:

  • The Real Economic Costs of Inefficient Institutions and Political Systems in the Caribbean

    The Real Economic Costs of Inefficient Institutions and Political Systems in the Caribbean

    Guest Contribution by The Inclusive Agenda

    “The future of growth and prosperity of the region must be underpinned by efficient, well-functioning, transparent institutions.”

    Perry Douglas, The Inclusive Agenda

    In mid-2020, Alan McIntosh, founder of Emerald Investments, sent a letter to the Prime Minister of Barbados in which he advised people not to invest in Barbados.  The letter appeared soon after the Prime Minister of Barbados the Hon. Mia Mottley appeared in a Business Post article, and on TV promoting increasing economic links between Ireland and her country.  Mottley also appeared on Irish radio and numerous other forms of media to talk about her “work from Barbados” initiative.

    Perry Douglas of The Inclusive Agenda

    Copies of the letter were also sent to multiple media outlets in the UK, “The Times”, “The Independent”, “Sunday Independent Ireland” and more, and of course, the story made its way onto social media: Twitter and Facebook, building all kinds of narratives along the way. 

    Therefore, what could possibly motivate a wealthy European investor, and highly respected businessman, to write such a letter? 

    From what the letter says, McIntosh made a US$2.5M investment in a Barbados hotel project about four years ago. He then ended up filing an action against Hotelier Peter Odle, for breach of contract, the individual he loaned the money to.  The investment was in relation to “The Sands Barbados” hotel, led by Mr. Odle.  Emerald Investments started formal legal action in 2018 against Odle, who had signed a personal guarantee.  

    This letter clearly reflects McIntosh’s exacerbation with the situation:  “I am an Irish investor who invested in Barbados, and I wish I’d never done so. Unless changes are made to the legal system in Barbados, I would urge no one to invest in Barbados, either commercially or to buy a condo, holiday home or even take a holiday there. Why? The legal system is not fit for foreign investment or even to settle minor disputes promptly.”

    McIntosh went on to say: “I have waited for the court system to allow me due process, and after almost three years have seen no progress in the courts whatsoever.”

    “My advice to anyone contemplating investing in Barbados is: “Do not Do It.”   

    Now, imagine for a moment, that you are a potential investor in the UK or elsewhere in the world, or even a potential vacationer to Barbados, other Caribbean islands, with thoughts of making a business investment, purchasing a vacation home, or condo? 

    After hearing that “the legal system is not fit for foreign investment,” and said by a multi-millionaire businessman, co-founder of Irelands biggest home builder, Cairn Homes, owner of the Radisson Hotel at Dublin Airport, the Fleet Hotel in Dublin City centre, and numerous other property holdings.  It would defy logic or common sense for one not to heed such a dire warning, and from such a credible source. You might ask yourself, how am I supposed to stand a chance as a small investor, if this powerful and sophisticated businessman can’t even get a day in court to settle a basic commercial dispute?

    The story reached Canada, the US, Europe, even Asia and Africa.  In the digital age, all stories are global. 

    Of particular note, the story was also published on “AfricaBrief”, a digital business and investment news platform in Africa.  It so happens that Mottley is trying to court wealthy African’s to invest in Barbados. This story is a blow to her efforts because wealthy African investors traditionally look to move their capital out of the inefficient, corrupt home jurisdictions, into safe and reliable ones. The reason why countries like Canada and the UK continue to experience robust property investment markets, via wealthy Asian, African, and Indian investors particularly, is because these destinations are seen as safe, stable counties with transparent and effective governing and legal institutions.  Country-specific risk scenarios are a primary factor in investment decisioning; perception, real or imagined, about corruption or lacking legal institutions, drive negative investment narratives. 

    Potential investors take in that information subconsciously through media then make really consequential decisions, consciously, based on the subconscious information they’ve processed.  This is how bias is formed and opportunity lost if no counter-narrative is actively applied in the information age.

    Negative stories in the digital era often take on a life of their own, permeating exponentially, killing opportunity and economic growth without anyone being the wiser. If governments in the Caribbean are not mindful of the economic impacts of the information/misinformation age, they risk the long-term prosperity of their nations.

    The future of growth and prosperity of the region must be underpinned by efficient, well-functioning, transparent institutions.  Strong and inclusive institutions are the hallmarks of prosperous societies in the promotion of global trade and commerce.  Gaining foreign investor confidence is something all societies must do, both the developed and developing ones.

    According to the World Bank, weak political, economic and legal institutions lead to countries operating with high levels of inefficiencies, unable to function, or prosper, which causes suffering for its society foremost. For emerging market economies, inefficiencies drive corruption and can lead to an uneven distribution of wealth as small businesses face unfair competition from larger companies or business people, with established yet dubious connections with government officials.  Resources are inefficiently allocated to friends/companies that otherwise would not be qualified to win government contracts, opportunities, or business facilitation, had it not been for relationships with officials. This crony capitalism holds back innovation and entrepreneurship and stifles younger, more educated and talented entrepreneurs from coming up.  Wealth then tends to concentrate with the very few and much older “elites” in the society, and the nation remains stuck in a perpetual economic loop of underdevelopment, never reaching its full economic potential.

    In 2018, Commonwealth Secretary-General Patricia Scotland said: “Corruption is poisonous, corrosive, vicious and an enemy of sustainable development. It destroys people’s confidence in their leaders, their politicians and their country.”  However, currently, five Caribbean countries – the Bahamas, Barbados, St Vincent and the Grenadines, Dominica and St. Lucia – rank amongst the 50 least corrupt countries in the world (out of 180), according to Transparency International’s 2017 Corruption Perceptions Index.  So, the news is not bad.

    Therefore, without a coordinated response from the government, its leaders are essentially leaving the reputation and economic growth of their countries, not to fact, but to narratives on the internet.

    One of the main reasons, Mr. McIntosh has gone to such lengths, is his dismay with the system, not being able to get his case heard in a reasonable time in the Barbados court system.  This then fuels his perception that the Barbados political system is inherently corrupt and that Barbadian hotelier, Peter Odle, is being purposefully protected by friends in high places.  Odle’s personal friend does happen to be Prime Minister Mottley.  So, it is merely a logical connect-the-dots mental process for McIntosh, and other investors watching from afar.  We really don’t know if these perceptions are true or not; however, that does not matter.  If not countered, perception becomes the prevailing reality!  Furthermore, it exacerbates the problem when we learn that in September 2020, Mottley appointed Odle as Chairman of the Barbados Port Authority, (BPI)—a clear patronage appointment, for a friend who helped her in the election.    

    McIntosh has also made it clear in the letters he’s written to PM Mottley, that he is not asking Mottley to use her influence towards a favourable outcome for him.  He simply seeks to advocate for himself in bringing to the PM’s attention, the state of her legal system, and how it is a negative factor for those considering Foreign Direct Investment (FDI) in Barbados.  Mottley not responding simply hurts Barbados and the broader CARICOM region’s FDI climate.

    In 2019, Foreign Direct Investment (FDI) in the Caribbean, declined 7.8%, which represents a precipitous decline from its highest historical value reached in 2012.  Furthermore, the impact of the current COVID-19 crisis has caused a profound reduction in FDI in 2020 and is expected to continue to fall further by at least another 10%, in 2021.  Therefore, it is not helpful when these types of stories get out and are not countered.  These stories only reinforce bias, preconceived notions, perceptions, and stereotypes of Black people and the region as corrupt and backwards. 

    To help sustain and stimulate FDI in Caribbean markets, as a base, strong, efficient, active, and transparent institutions must bolster the recovery and future growth agendas.  Research shows that FDI is the most critical factor in economic expansion for any society, particularly for developing Small Island States (SIS).  SIS without mature, robust, localized global capital markets—building investor confidence becomes even more paramount to a viable future growth existence.  If negative public discourse around foreign investors’ losing money, due to local business people hiding behind systems of corruption, or inefficient institutions, and an indolent legal system, this then becomes the prevailing narrative, which investors make decisions off of.

    Programs like Citizenship by Investment (CBI,) for example, a program Grenada and other Caribbean states currently operate, have been plagued with an abundance of shady characters over the many years.

    Major media outlets have produced non-flattering documentaries about CBI programs throughout the region, a blow to the reputations of these SIS.  According to the Economist, the “defenders of the schemes insist that criminals seeking a bolthole are the exception and that they are making great strides in imposing stricter due diligence standards. The vast majority of their customers, they argue, are honest, respectable people with a legitimate hankering.”

    Nevertheless, after looking into it, we couldn’t find any reasonably positive CBI story online.

    Therefore, the big risk, and future priority towards a positive growth curve trajectory for the region, is the un-branding of the region away from the narrative as a haven for illegal, unscrupulous, criminals.  We must control our own narrative, write our own stories, otherwise, others will write them for us.  The well-written story that needs to be told going forward should be about well-intentioned, legit investors like Allan McIntosh, Emerald Investments, honestly investing in the region, finding the place efficient, well managed, with strong public institutions that build investor confidence.  The story should also go on to say, that McIntosh makes good money on his investments, and creates meaningful amounts of jobs, the enterprise becomes a responsible corporate citizen, contributing to climate change mitigation, specific to the region, and investing in education and skills training programs to prepare the next generation for the future-of-work.

    In an era of digital transformation, the world is increasingly competing for limited global investment dollars.  Unless the region can become savvier at controlling information and communication narratives, in its favour, valuable investment dollars will end up elsewhere. 

    Leadership, from islands like Barbados, about public occurrences like the McIntosh/Odle saga, which finds itself closely associated with the Prime Minister, cannot go unaddressed.  For example, on social media or in public discourse in the investor community abroad, the story/narrative going around is that Peter Odle is notorious for using political relationships to protect himself from numerous lawsuits.  We, of course, do not know if these narratives are true or not, nor can they be substantiated in real-time, but that’s the nature of social media, and if you don’t have your own media strategy in place or story to tell, your image becomes whatever narrative emerges online.  Salacious, headline-grabbing stories get more attention and go on to create further unwanted narratives.

    This fundamentally works against the efforts of the PM, for example, who is whole-heartedly trying to sell Barbados to the world, with her “work from Barbados” scheme.     

    However, in the end, while the big boys fight it out publicly, the little guys bear the economic brunt.

    I would think it critical and responsible for government to understand precisely, how the new digital playing field works, and that everything comes back to economics in the end.  Digital message control and business image strategies are now an essential discipline in order to carve out your place in the digital universe.  To have a long-term sustainable economy for the benefit of the people, you must adapt to globalization, and promote your country to the world, this is how the wealth of nations grow.

    Perry C. Douglas is an Entrepreneur and Innovator…for Inclusive Caribbean Economies. Read more of his work at his blog The Inclusive Agenda: http://theinclusiveagenda.blogspot.com.

    The views and opinions expressed herein are solely those of the guest author and are not necessarily representative of those of the Caribbean Trade Law & Development Blog.

  • Caribbean Trade & Development News Digest – January 1-16, 2021

    Caribbean Trade & Development News Digest – January 1-16, 2021

    Happy New Year! Welcome to the first Caribbean Trade and Development News Digest for 2021! We do hope that you had a great start to the year so far. We are pleased to bring you the major trade and development news headlines and analysis from across the Caribbean Region and the world from January 1 – 16, 2021.

    WHAT’S HAPPENED IN TRADE SINCE DECEMBER 2020?

    Since our last digest was published near the end of December 2020, some major trade developments have occurred, including on the Brexit, AfCFTA and other fronts. If you missed them, then catch up on these developments in my update article here.

    REGIONAL NEWS

    Re-examining Caribbean-Chinese relations

    Global Americans: Too often, United States government officials and scholars have characterized China’s relationship with Caribbean nations as a one-way affair in which the former, as a malign foreign actor, takes advantage of the latter, a small and weak group of states. Read more

    Minister aiming to expand reach of Jamaica Blue Mountain Coffee

    Jamaica Observer: Minister of Agriculture and Fisheries Floyd Green is aiming to expand the reach of the Jamaica Blue Mountain Coffee brand internationally and increase production of coffee locally. Read more

    Yvor Nassief | The Ongoing Caricom Soap Saga – Dominican Producer Outlines Concerns With Jamaican Soap Imports & Exports

    Jamaica Gleaner: The recent press coverage of the decision by the Caribbean Community (Caricom) Council for Trade and Economic Development (COTED) that companies in Jamaica are not eligible to receive certificates of origin for their soap exports, thereby not enjoying duty-free access to Caricom, is one-sided and contains inaccuracies and misrepresentations. I seek to clarify some of these. Read more

    Royal Caribbean will offer cruises from Barbados in December 2021

    Royal Caribbean Blog: Royal Caribbean announced it will begin offering roundtrip cruises from Barbados at the end of 2021 on Grandeur of the Seas. Read more

    Guyana signs on to new trade, investment agreement with UK

    Jamaica Observer: Guyana has officially signed on to the new agreement that will govern trade and investment between the United Kingdom and the CARIFORUM group of countries following the UK’s exit from the European Union. Read more

    US takes sterner action against Exxon’s Chinese partner in Guyana, unlikely to affect local operations

    Stabroek: The Trump administration in its waning days took another swipe at China and its biggest firms yesterday including ExxonMobil’s Guyana partner, CNOOC for alleged misdeeds in the South China Sea. Read more

    Guyana, US security pact to reel in illegal fishing

    Stabroek: A defence partnership agreement was signed yesterday between Guyana and the United States and it is expected to ensure increased safeguards against illegal fishing in this country’s waters. Read more

    CARICOM could source COVID-19 vaccines from the African Union

    Jamaica Observer: The Caribbean Community (Caricom) has been offered access to approved COVID-19 vaccines from a shipment recently secured by the African Union. Read more

    Guyana holds talks on difficulties exporting agri, poultry products to T&T

    Newsroom: Guyana on Friday convened a virtual Joint Ministerial Trade and Agricultural Meeting with Trinidad and Tobago to discuss market access difficulties experienced by Guyana when exporting agricultural and poultry products to the twin-island republic. Read more

    Trinidad & Tobago manufacturers support trade ministry action on cement industry

    Trinidad Guardian: The Trinidad and Tobago Manufacturers Association (TTMA) has come out in support of recent moves by the Ministry of Trade and Industry to ensure fair trade practices in the cement industry. Read more

    Trinidad & Tobago Gov’t gets to work on reviving manufacturing sector

    Loop TT: The Ministry of Trade and Industry said it’s encouraged by emerging signs of resurgence in the manufacturing sector as noted in the Central Bank of Trinidad and Tobago’s (CBTT) December Monetary Policy Announcement. Read more

    Trade Ministry lists support for manufacturing

    TT Newsday: Government remains committed to the well-being and expansion of the local manufacturing sector as well as ongoing and future collaborations with the private sector, the Trade and Industry Ministry said in a statement on Friday. Read more

    Mondello: TT, US can start new chapter under Biden

    TT Newsday: Days ahead of the swearing-in of Joe Biden as new US president next Wednesday, outgoing US ambassador Joseph Mondello hoped TT and the US could use the change to strengthen their relationship. Read more

    New CARICOM manufacturing body gets to work

    Barbados Today: A new regional manufacturers association has been launched in the Caribbean Community (CARICOM) to help promote regional manufacturers. The founding members are the Barbados Manufacturers’ Association (BMA), the Dominican Manufacturers’ Association, the Guyana Manufacturers’ and Services Association, the Jamaica Manufacturers’ and Exporters Association, the St Lucia Manufacturers’ Association and the Trinidad and Tobago Manufacturers’ Association. Read more

    BVI loses access to EU funding

    BVI News: The BVI and other British Overseas Territories will no longer have access to any future funding for sustainable development from the European Union as the UK’s Brexit deal took effect on January 1, 2021. Read more

    Belize exports 16,000 lbs of chicken to CARICOM

    Amandala: On December 23, Belize exported its first-ever shipment of poultry products to the CARICOM region. The Ministry of Foreign Affairs, Foreign Trade, and Immigration, in partnership with the Ministry of Agriculture, announced that 16,000 pounds of chicken cuts were exported to Grenada. Read more

    INTERNATIONAL NEWS

    What Does 2021 Hold for Global Trade?

    Brink News: How will the expected economic recovery impact trade? Will the Biden administration maintain current President Donald Trump’s tariffs on China? Has globalization been fundamentally altered by the pandemic? BRINK invited Nicolas Lamp, a global trade expert based at the Faculty of Law of Queen’s University Canada, to share his thoughts on what trends to expect in 2021. Read more

    Air travel down 60 per cent, as airline industry losses top $370 billion: ICAO

    UN: The International Civil Aviation Organization (ICAO) said on Friday, that as seating capacity fell by around 50 per cent last year, that left just 1.8 billion passengers taking flights through 2020, compared with around 4.5 billion in 2019. That adds up to a staggering financial loss to the industry of around $370 billion, “with airports and air navigation services providers losing a further 115 billion and 13 billion, respectively”, said ICAO in a press statement. Read more

    Biden aims for new course on trade, breaking with Trump and Democratic predecessors

    WP: It may not take long for President-elect Joe Biden to distinguish his trade policy from his predecessor’s “America First” approach. Read more

    U.S.-China trade war has cost up to 245,000 U.S. jobs: business group study

    Reuters: U.S. President Donald Trump’s trade war with China has caused a peak loss of 245,000 U.S. jobs, but a gradual scaling back of tariffs on both sides would boost growth and lead to an additional 145,000 jobs by 2025, a study commissioned by the U.S.-China Business Council (USCBC) shows. Read more

    US-China trade war deal reaches first anniversary as bilateral mistrust hits ‘all-time high’

    SCMP: One year after signing, China lags far behind in its purchases of American goods and the trade imbalance with the US has grown. Read more

    Exclusive: UK eyes adding climate provisions in US trade talks to woo Joe Biden

    City A.M: The UK will try to add new provisions on climate change and environmental standards in US trade negotiations in a bid to woo incoming President Joe Biden. Trade secretary Liz Truss wants to build on current negotiations with the Donald Trump administration and potentially add things like enhanced protections on air pollution and corporate transparency on climate change to coax Biden’s team to the negotiating table. Read more

    Keep tariffs on China, says outgoing US trade chief

    CNA: Outgoing US President Donald Trump’s trade chief on Monday (Jan 11) urged President-elect Joe Biden to maintain tariffs imposed on China, arguing that they have shifted the balance of power in Washington’s favour. Read more

    US suspends tariffs against French goods over digital service tax

    Reuters: US had proposed tariffs on $1.3bn worth of French goods in retaliation for French tax on tech firms. Read more

    France wants suspension of ‘poisonous’ U.S.-Europe trade spat

    Financial Post: The European Union and the incoming administration of U.S. President-elect Joe Biden should suspend a trade dispute to give themselves time to find common ground, France’s foreign minister said in remarks published on Sunday. Read more

    UPDATE 1-USTR says Vietnam’s currency actions ‘unreasonable’ but holds off on tariffs

    Reuters: The Trump administration on Friday said Vietnam’s actions to push down the value of its currency are “unreasonable” and restrict U.S. commerce, but is not taking immediate action to impose punitive tariffs. Read more

    Canada’s international trade slows in weakening recovery

    Bloomberg: Canada’s merchandise trade deficit remained at historically elevated levels in November, as exports and imports slowed amid a weakening global recovery. Read more

    After months of COVID delays, African free trade bloc launches

    Al Jazeera: After months of delays caused by the COVID-19 pandemic, the African Continental Free Trade Area launches, but full implementation of the historic pact may take years. Read more

    INTERVIEW | What Africa must do to make the AfCFTA work – Trudi Hartzenberg

    African Newspage: Trudi Hartzenberg is the executive director of the Stellenbosch, South Africa-based Trade Law Centre (TRALAC), focused on improving capacity in trade governance in Africa. Hartzenberg, who currently serves on the World Trade Organization (WTO) Chairs Advisory Committee is also a member of the Committee for Development Policy (CDP), a subsidiary of the United Nations Economic and Social Council (ECOSOC). Read more

    AfCFTA: Three details to note as the largest free-trade agreement kicks off in Africa

    Face2Face Africa: Headquartered in Accra, Ghana, the African Continental Free Trade Area (AfCFTA) is now officially the largest free trade area by the number of participating countries since the founding of the World Trade Organization (WTO) in 1995. Read more

    Malawi deposits AfCFTA ratification to AU

    Xinhua: Malawi on Friday deposited its Africa Continental Free Trade Area Agreement (AfCFTA) ratification instrument to the African Union (AU) Commission as the number of African countries bound by the continental free trade pact grows. Read more

    African Business Council applauds the start of trading on the basis of the African Continental Free Trade Area (AfCFTA)

    Africa News: On 1 January 2021, at the launch of the start of trading on the basis of the AfCFTA, the Pan-African Private Sector, under the umbrella body of the African Business Council (AfBC), issued a press statement in support of this initiative. In it, the AfBC acknowledged that the start of trading under the AfCFTA presents enormous business opportunities for the Pan-African Private Sector, SMEs, Women and Youths as the continent takes this bold move towards Boosting Intra-African Trade. Read more

    UK refused deal on post-Brexit travel for musicians, says Barnier

    Politico: Amid growing uproar in the U.K. over post-Brexit travel for touring musicians, Michel Barnier, the EU’s chief negotiator, said the British government had rejected a clear offer from Brussels to carve out a special deal for performers. Read more

    UK trade minister seeks early meeting with U.S. trade czar on whisky tariffs

    Reuters: British trade minister Liz Truss said on Thursday she was seeking an early meeting with U.S. President-elect Joe Biden’s pick to be his trade czar, Katherine Tai, to discuss tariffs on Scottish whisky. Read more

    Post-Brexit customs systems not fit for purpose, say meat exporters

    BBC: UK meat exporters have claimed post-Brexit customs systems are “not fit for purpose”, with goods delayed for hours, sometimes days, at the border. Read more

    20% of UK chemicals registrations face revocation after Brexit

    Euractiv: Around 20% of registrations from UK-based companies to the European Union’s REACH chemicals database have not been transferred to EU companies and will be revoked after 31 March 2021, according to the European Chemicals Agency (ECHA). Read more

    Exclusive: European Commission battles to sell post-Cotonou deal at home

    Devex: After last month’s long-awaited “political deal” on a new agreement with 79 African, Caribbean, and Pacific countries, the European Commission is now facing another hurdle: its own member states. Read more

    EU trade official wants swift engagement with Biden on aircraft, digital taxes, WTO

    Reuters: The European Union is looking to engage quickly with the Biden administration to resolve major trade irritants, including disputes over digital taxes and commercial aircraft subsides, EU Director General for Trade Sabine Weyand said on Friday. Read more

    EU trade official wants swift engagement with Biden on aircraft, digital taxes, WTO

    Nasdaq: The European Union is looking to engage quickly with the Biden administration to resolve major trade irritants, including disputes over digital taxes and commercial aircraft subsides, EU Director General for Trade Sabine Weyand said on Friday. Read more

    Forget Brexit, the most important trade deal in 2021 is in Africa

    Euractiv: While the UK splinters away from the European Union, Africa is uniting under a landmark free trade agreement, making it one of the largest since the establishment of the World Trade Organization (WTO), writes Debisi Araba. Read more

    Interview: Global trade system reform vital to economic recovery, says Australian economist

    Xinhua: The reform of the global trade system is significant for the world’s recovery from the COVID-19 pandemic and long-term economic growth, a senior Australian economist has said. Read more

    A new administration: US sanctions trends for 2021

    GTR: A raft of new US sanctions guidance and designations made 2020 a challenging year for banks involved in trade finance, yet the overall value of financial penalties handed out was low. GTR speaks to legal experts about recent enforcement trends, the challenges facing trade finance lenders, and the likely impact of the incoming Biden administration. Read more

    China’s cross-border e-commerce plays vital role in global trade amid pandemic

    CGTN: China’s cross-border e-commerce is becoming the latest driving engine for the country’s foreign trade, which gained great momentum last year in a time of COVID-19 recessions. Read more

    Deadlines and Decisions for American Trade in 2021

    US Chamber: As the pandemic and recession hopefully begin to give way to vaccines and recovery in 2021, the U.S. Chamber’s International Affairs Division is focused on the issues that will dominate international economic policy in the months ahead. Read more

    After Trump: What Will Biden Do on Trade?

    Council on Foreign Relations: President Trump disrupted U.S. trade policy in the name of better deals. President-Elect Biden proposes a combination of stronger domestic investment and better coordination with allies. Read more

    Creative economy to have its year in the sun in 2021

    UNCTAD: Here’s why the UN has dedicated a whole year to the creative economy and its critical role in promoting sustainable development, especially in a post-coronavirus world. 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:

  • Caribbean Trade and Development News Digest – December 13-19, 2020 – CHRISTMAS EDITION

    Caribbean Trade and Development News Digest – December 13-19, 2020 – CHRISTMAS EDITION

    Season’s Greetings! Welcome to the final Caribbean Trade and Development News Digest for the year 2020. We are pleased to bring you the major trade and development news headlines and analysis from across the Caribbean Region and the world from the past week – December 13-19, 2020.

    Thank you for your readership of this Digest over the past year and we take this opportunity to wish you and your families a very Merry Christmas and a happy, healthy and prosperous 2021!

    THIS WEEK’S HIGHLIGHTS

    With entrenched differences still existing, WTO members failed to meet their 2020 deadline for reaching an agreement on eliminating harmful subsidies for illegal, unreported and unregulated fishing which contribute to overfishing. Negotiations will continue into 2021. Read more here.

    Negotiations between the EU and UK on a post-Brexit deal will continue this Monday after another deadline (this Sunday) was missed. The talks are hung up on three main issues: fishing, ‘leveling the playing field’ and governance. Read more here.

    The UK has taken steps to formalise its independent tariff policy to be applied from January 1, 2021. Importantly, of interest to Caribbean sugar exporting countries, Britain is to allow 260,000 T of tariff-free raw sugar imports. Read more here.

    Australia has signalled it will ask the WTO to settle its dispute with China on the latter’s imposed tariffs of 80.5% on Australian barley. China, which is the largest importer of Australian barley, has justified its anti-dumping duties on Australian barley by accusing Australia of subsidising its barley farmers. Read more here.

    WHAT WE’RE READING – AMBASSADOR BERNAL’S NEW BOOK!

    Next year we will be adding a new section to the Blog entitled “What we’re reading” where we will highlight newly released books of a trade and development nature, particularly those with a Caribbean or small State focus. This week we are pleased to be reading the new book by renowned Caribbean scholar, trade expert and author Professor the Hon. Ambassador Dr. Richard Bernal entitled “Corporate versus National Interest in US Trade Policy: Chiquita and Caribbean Bananas”. In this latest book, Ambassador Bernal not only details how Chiquita Brands International was able to influence the Clinton Administration to challenge the EU on its preferential import regime for ACP bananas, but how this move was actually inimical to the US’ national security interests given the negative impact it had on Caribbean banana-exporting countries. Like his previous four books, Ambassador Bernal’s latest work is a must-read for any student or practitioner of trade policy and may be purchased here.

    REGIONAL NEWS

    FATF removes The Bahamas from the list of Jurisdictions under Increased Monitoring

    FATF: The FATF now de-lists The Bahamas from the list of Jurisdictions under Increased Monitoring. The Bahamas is therefore no longer subject to the FATF’s increased monitoring process. The Bahamas will continue to work with CFATF to improve further its AML/CFT regime. Read more

    SIB report on Belize’s economic performance

    Amandala: Merchandise exports for the period January to October 2020 totaled just over $325 million, down 9.9 percent or $35.9 million from the same period last year, when total domestic exports were valued at $360.9 million. Read more

    Dominica’s DCPS Vows To Fight On Over Caricom Soap

    Jamaica Gleaner: Dominica Coconut Products Successors Limited, DCPS, has confirmed that it is contemplating legal action to press its claim that the duty-free importation into Jamaica of noodles or chips from which soaps are made is illegal. Read more

    Trade policies top regional manufacturers’ agenda

    Stabroek: Business communities across CARICOM are likely to be waiting with bated breath to determine whether last month’s establishment of a new CARICOM Manufacturers Association (CMA) will serve as an eventual precursor to the building of sturdier bridges among member countries of the regional movement in the areas of manufacturing and trade. Read more

    Pledge for Bajan exports to bounce back

    Barbados Today: An all-out effort will be made to boost Barbadian exports in 2021, the minister for manufacturing has promised. Read more

    Visitor arrivals a fraction of “normal” seasonal arrivals, says airport official

    Barbados Today: Barbados can expect close to 20,000 visitors to fly into the island this month, significantly down from its monthly average of well over 200,000. Read more

    Inclusive tourism on the cards in Barbados

    Barbados Today: Come January next year, the Ministry of Tourism is expected to engage in a national consultation in an effort to map out a new “inclusive and sustainable” tourism product for Barbados. Read more

    UK to compensate victims of immigration scandal from the Caribbean

    Loop News Barbados: Britain will step up compensation for thousands of long-term UK residents originally from the Caribbean who were wrongly caught up in a government drive to reduce illegal immigration, officials said Monday. Read more

    Launching Paris – A CARICOM Moment of Ambition: Snapshots of Member States Nationally Determined Contributions

    CARICOM: Several Caribbean Community Member States showcased their ambitions to further address climate change at a CARICOM Moment of Ambition event held on the eve of the fifth anniversary of the adoption of the Paris Agreement, on Friday 11 December 2020. Read more

    INTERNATIONAL NEWS

    OACPS Ministers endorse new OACPS-EU Partnership Agreement, proposals on Fisheries and the EU Blacklist at 111st session of the Council of Ministers

    OACPS: Meeting virtually on 14, 15 and 17 December 2020, the Council of Ministers of the Organisation of African, Caribbean and Pacific States (OACPS) approved eight decisions and two resolutions on key issues affecting its Member States (MS) and pertaining to the administrative and financial management of the Organisation during the 111th session of the OACPS Council of Ministers. Read more

    Trump trade chief wants WTO leadership race reopened

    BBC: The US has suggested that the process to find a new Director-General of the World Trade Organization (WTO) needs to be reopened, in what would be an unprecedented move. Read more

    Legislation for the UK’s independent tariff policy

    Gov.uk: From the 1 January 2021 the UK Global Tariff will replace the EU’s Common External Tariff as the UK’s Most Favoured Nation tariff – the framework it will use to trade independently outside of free trade agreements. Read more

    U.K.’s Johnson to Visit India in January as Trade Talks to Start

    Bloomberg: U.K. Prime Minister Boris Johnson will visit India in January to try to boost ties, with talks on a free-trade agreement due to start next year. Read more

    Taking China to the World Trade Organisation plants a seed. It won’t be a quick or easy win

    ABC (Australia): Australia is reportedly ready to initiate its first litigation against China at the World Trade Organisation. China has this year taken punitive action against imports of Australian coal, wine, beef, lobster and barley. Read more

    UK and Mexico sign trade deal

    Gov.uk: The UK has today (Tuesday 15 December) signed a trade deal with Mexico, locking in tariff-free trade and other benefits for British businesses and consumers. Read more

    UK and US in talks over mini trade deal

    BBC: The outgoing US administration is in talks with the UK to try to seal a mini-deal to reduce trade tariffs, Donald Trump’s trade chief has said. US Trade Representative Robert Lighthizer told the BBC he was hopeful for a deal that could see punitive tariffs on Scottish whisky lowered. Read more

    What are Australian-style and Canadian-style Brexit trade deals?

    The Conversation: Negotiations for a post-Brexit trade deal between the European Union and the UK have been ongoing since March. Both have until the end of the Brexit transition period – December 31 – to strike a free trade deal. If no agreement is reached, the UK-EU trading partnership will be governed by World Trade Organization (WTO) rules. Read more

    WTO Members Delay Agreement on Fisheries Subsidies to 2021

    IISD: World Trade Organization (WTO) members did not conclude negotiations on an agreement on curbing harmful fisheries subsidies by the 2020 deadline. A new schedule for meetings in 2021 is being developed, with the aim of bringing “this negotiation to the finish line.” Read more

    Ban on food aid restrictions blocked at WTO

    Reuters: World Trade Organization members were at odds on Friday over a proposal that would ban countries from restricting food aid deliveries, potentially complicating the response to a feared COVID-fuelled humanitarian catastrophe next year. Read more

    We’re proud of what we’ve done, says Trump’s trade chief

    BBC: He rarely talks to the media, but mindful of the legacy of four years of ripping up the international trade system, he told the BBC he had fundamentally reoriented the trade system towards working Americans, and that President Trump’s successor would not now change this sceptical stance to slow down and reverse globalisation. Read more

    Trade deal: Hope ‘early harvest’ proposition of India will be accepted by UK, says Piyush Goyal

    Economic Times: Commerce and Industry Minister Piyush Goyal on Thursday hoped that the UK would accept India’s ‘early harvest’ proposition within the framework of a larger free trade agreement, which both the countries are working towards. Under an early harvest arrangement, two trading partners significantly reduce or eliminate customs duties on a limited number of goods with a view to promoting trade. Read more

    Mercosur debates on revising Common External Tariff

    ANBA: Brazil’s FM said in a meeting of the highest-level agency of the bloc that revising its CET is a priority and will benefit international trade and investments. Read more

    Argentina assumes temporary presidency of MERCOSUR

    Radio Cadena Agramonte: In a speech in which he opted for more and better Southern Common Market (MERCOSUR), Argentine President Alberto Fernández called today to overcome the globalization of indifference and build the universalization of solidarity. Read more

    Argentina: Mercosur will address EU environment concerns

    AP: South America’s Mercosur countries will address environmental concerns raised by the European Union that have stalled ratification of a free trade deal between the two trade blocs, Argentina’s foreign minister said Monday. Read more

    Uruguayan president warns of post-pandemic protectionism at Mercosur Summit

    XinhuaNet: Countries should be wary of turning to protectionist trade measures in a bid to shore up their pandemic-hit economies, Uruguay’s President Luis Lacalle Pou said on Wednesday. Read more

    Asean to accelerate digital integration for period of post-COVID economic recovery

    Khmer Times: To boost regional recovery in the post-COVID 19 era, Asean should accelerate its digital integration, which has the potential to generate a $1 trillion uplift in gross domestic product (GDP) by 2025, said Dr Aladdin D. Rillo, deputy secretary-general for Asean Economic Community, at an online panel. 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: