Caribbean Trade Law and Development

Tag: CARICOM

  • USITC Releases latest CBERA Report: Haiti, Barbados & Grenada have highest utilisation rate

    USITC Releases latest CBERA Report: Haiti, Barbados & Grenada have highest utilisation rate

    Alicia Nicholls

    On September 30, 2021, the United States International Trade Commission (USITC) released its latest report on the operation of the Caribbean Basin Economic Recovery Act (CBERA) and its impact on US industries, consumers and on beneficiary countries. Enacted in 1983 and made effective in 1984, the CBERA is one of the constituent acts under the Caribbean Basin Initiative. The CBERA allows the US President to extend to designated beneficiary countries in the Caribbean Basin non-reciprocal and unilateral duty-free or reduced duty access to the US market for a wide range of goods. The CBERA is of indefinite duration in that it has no statutory end date unlike, for instance, the other Acts. The Caribbean Basin Trade Partnership Act (CBTPA) of 2000 extended preferential treatment to textiles and apparels and was most recently renewed in October 2020 until 2030.

    The 17 CBERA beneficiaries in 2020 were as follows: Antigua and Barbuda, Aruba, The Bahamas, Barbados, Belize, British Virgin
    Islands, Curaçao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, and Trinidad and Tobago. CBTPA beneficiaries (8) in 2020: Barbados, Belize, Guyana, Haiti, Jamaica, Saint Lucia, and Trinidad and Tobago. The Haiti Economic Lift Program (HELP) Act of 2010 and Haiti Hemispheric Opportunity through Partnership Encouragement Act of 2006 and of 2008 (HOPE I & II) provide special preferences for Haiti and were extended in 2015 until 2025.

    The latest CBERA report found that “the impact of the CBERA program on the US economy and industries continued to be small in 2019 and 2020”, which it attributed to the fact that “the value of US imports under the CBERA preference program are a
    small share of total US imports”. Turning to the future effect of the CBERA program on the US economy, including on U.S. domestic industries and US consumers, the report found that the effect ” is likely to remain minimal for most products, given the relatively small volume of imports from CBERA countries that is unlikely to grow substantially”.

    The report highlighted that the top US imports under the CBERA were petroleum oils, methanol, T-shirts of cotton, sweaters of manmade fibers, and polystyrene. The five largest CBERA exporting countries over the reporting period were Trinidad & Tobago, Haiti, Guyana, Jamaica and the Bahamas. However, Haiti, Barbados and Grenada were the beneficiary countries with the highest utilisation rate (94.7%) of the programme. It is noteworthy that Barbados moved from a utilization rate of just 38.2% in 2016 (one of the lowest) to a utilization rate of 94.7% in 2020. US imports under CBERA as a share of total US imports for consumption remained small (only 0.07% in 2020), while US imports from beneficiaries that receive program preferences as a share of total US imports from beneficiary countries were 33.8% in that same year.

    The report may be accessed here.

    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.

  • Historic first CARICOM-Africa Summit – LIVE STREAM

    Historic first CARICOM-Africa Summit – LIVE STREAM

    Alicia Nicholls

    Days after the first ever United Nations (UN) International Day for People of African Descent was celebrated, there will be the first ever Caribbean Community (CARICOM)-Africa Summit! The summit, which was originally carded for July 2020, was postponed due to the COVID-19 pandemic. The rescheduled summit, which will now be held on September 7, will be hosted by the Government of Kenya and chaired by Kenyan President, His Excellency Uhuru Kenyatta under the theme “Unity Across Continents and Oceans: Opportunities for Deepening Integration”. The event will be livestreamed on CARICOM’s Youtube and Facebook pages. You can watch it below:

    CARICOM Today notes that participants will include “Heads of State and Government of the Caribbean Community and the African Union, Chairs of CARICOM and the African Union Commission, and the Africa Regional Economic Communities (RECs), the Secretaries-General of CARICOM and the Organisation of the African Caribbean and Pacific States (OACPS), and the President of Caribbean Development Bank (CDB)”.

    The summit is the latest initiative in a push on both sides of the Atlantic for closer Africa-CARICOM ties which transcend traditional historic and cultural ties towards real commercial ties and deeper economic and cultural cooperation. As I noted in a previous piece back in 2019 entitled “Africa-Caribbean Trade: What are the prospects?“, current Africa-Caribbean trade remains small, but the prospects for expanded Africa-Caribbean trade are promising given four main factors: (1) Caribbean countries’ push for export partner diversification, (2) Africa is on the rise, (3) increased Caribbean-African awareness such as the Timaya-Machel collaboration, (4) the signing of the Africa Continental Free Trade Agreement (AfCFTA). I had further argued in that piece that “since it is firms which trade and not countries, building linkages between chambers of commerce and investment promotion agencies in the Caribbean and African countries would also be key”.

    On another note, starting Monday, I am truly pleased to have co-convened this Afronomicslaw. org Blog Symposium with the brilliant Dr Ohiocheoya Omiunu (PhD) on “Prospects for Deepening Africa-Caribbean Economic Relations“! The insightful contributions to this symposium will be released daily (from Monday) and can be read on the Afronomics Law Blog. Deepest appreciation to our expert contributors for their invaluable contributions!

    The CTLD Blog wishes the organisers a successful CARICOM-Africa summit. I sincerely hope that the results go more beyond simply a lengthy communique of hortatory goals, but there will be a concrete action plan on deepening CARICOM-African ties.

    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.

  • New CARICOM SG committed to a more ‘inclusive’ community

    New CARICOM SG committed to a more ‘inclusive’ community

    Alicia Nicholls

    Newly installed Caribbean Community (CARICOM) Secretary General, Dr. Carla Barnett, has voiced her commitment towards greater stakeholder engagement for a “truly integrated, inclusive and resilient community that is driven by knowledge, excellence, innovation and productivity”. She made this pledge while outlining her vision during an installation ceremony streamed online on August 16.

    Dr. Barnett, who assumes office as CARICOM’s eighth and first appointed female Secretary General, acknowledged the many “economic, social, environmental and financial challenges” affecting lives and livelihoods in the region. She specifically outlined the issues of climate change, youth unemployment, rising crime, the need for greater food security and the issue of blacklisting by large global powers which has led to the loss of correspondent banking relations (CBRs) for many indigenous Caribbean banks. The new SG also extended condolences to the people of Antigua & Barbuda on the passing of their second Prime Minister, Sir Lester Bird, who she acknowledged as a committed regionalist. She also expressed solidarity with the people of Haiti where over 1,200 innocent lives were lost as a result of a 7.2 magnitude earthquake on August 14 and who also face the impending Tropical Storm Grace.

    Dr. Barnett implored stakeholders to reach out to the Secretariat to share their “their fears, concerns, and vision for the future of the Community and telling us how they feel they can contribute to building our Community”, as no one has all the ideas or answers so all must be involved. She further noted that “it is, therefore, incumbent on all of us to be engaged in finding solutions and taking action to overcome these obstacles in our path to a secure, viable and ultimately sustainably prosperous Community for all”.

    She made reference to the unity showed by CARICOM people during sports, culture and in times of adversity. She stated she would “build on and maintain that strength” and “will require that my team and I reach out on a regular basis to explain, to exhort, to inform, to educate so that all will feel a part of the whole that constitutes CARICOM and “I Am CARICOM” will mean much more than a catchy slogan”.

    In addition to greater stakeholder engagement, Dr. Barnett also called for new thinking “not only to solve the problems of the present but to outline new paths for the future of our integration process”, including for closing the implementation gap. She praised the work of her predecessor Ambassador Dr. Irwin Larocque of Dominica who served from 2011-2021. She noted that much has been achieved in the past 48 years, but “a lot of it is taken for granted today, to the extent that some are not even associated with the integration movement”.

    Dr. Barnett is the first Belizean national to be appointed CARICOM SG. She brings to the position a wealth of experience, including as an economist and having previously served as the first woman and the youngest person appointed as Deputy-Secretary of CARICOM (1997 -2002).

    We at the Caribbean Trade Law & Development Blog wish Dr. Barnett the very best during her tenure.

    The recording from the event may be viewed here, while the transcript from her full address is available here.

    Photo credit: CARICOM

    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.

  • Caribbean Trade and Development News Digest – June 20 – 26, 2021

    Caribbean Trade and Development News Digest – June 20 – 26, 2021

    Welcome to the Caribbean Trade and Development News Digest for the week of June 20-26, 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

    According to the World Trade Organization (WTO), first quarter 2021 global merchandise trade “continued to bounce back from its collapse earlier in the pandemic, but the pace of recovery has diverged strongly across countries and regions.” Read more here.

    In its latest World Investment Report (2021) released this week, UNCTAD revealed that “foreign direct investment flows plunged globally by 35% in 2020 to $1 trillion, with fall heavily skewed towards developed economies, where FDI fell by 58%. UNCTAD predicts a recovery in 2021, but uncertainty remains. Read the full report here.

    The UK and CPTPP nations will formally commence negotiations for the UK’s accession to that trading bloc. Read more here.

    The Financial Action Task Force (FATF) held its June meetings this week. Among the outcome documents, Barbados, Jamaica, and Cayman Islands remain on its list of jurisdictions subject to increased monitoring (the FATF greylist) and Haiti was added. This and other outcome documents from the June meetings may be accessed here.

    IFC Review’s Big Debate on “Is the G7 tax initiative another form of economic colonialism”?

    I’m delighted to have been one of the contributors to IFC Review’s Big Debate on “Is the G7 tax initiative another form of economic colonialism?” Read the varying reflections of myself and others on this topic here.

    REGIONAL NEWS

    Local content requirements not restrictive to CARICOM investment

    South Florida Caribbean News: The requirements for certain levels of local content involvement in investment and development projects in Guyana should not in any way negatively impact investment by businesses from CARICOM member states which want to do business with its South American sister CARICOM member state. Read more

    Grenada’s Prime Minister spearheads CARICOM engagement with Telecoms Providers on removal of Roaming Charges

    CARICOM: Grenada’s Prime Minister, Dr. the Right Honourable Keith Mitchell is spearheading a CARICOM initiative to eliminate roaming charges for Caribbean nationals traveling within the region. Read more

    Haiti, Other CARICOM Member States on Allocation Plan for Second Tranche of Vaccines From US

    CARICOM: Haiti, and other CARICOM Member States are among countries that will receive vaccines from the 55 million doses that the United States will share through the COVAX Facility. The doses are the remainder of the 80 million that President Joe Biden had pledged to allocate by the end of June. Earlier in the month, the US had indicated its allocation plan for the first 25 million doses to be shared globally. Read more

    CDB president wants Caribbean institutions to advance regional development agenda

    Jamaica Observer: President of the Barbados-based Caribbean Development Bank (CDB), Dr Gene Leon, has proposed the formation of a regional action group, combining the strengths and capacity of key regional institutions to drive the Caribbean’s economic and social development agenda. Read more

    Cement shortage in Grenada

    Nation News: Grenada is seeking permission from the Caribbean Community (CARICOM) Council for Trade and Economic Development (COTED) to be allowed to import cement from outside of the region because the main supplier in Trinidad and Tobago is not exporting product because of reduced business activities linked to containing and controlling the spread of coronavirus (COVID-19) in the neighbouring CARICOM country. Read more

    Approximately 500 head of cattle to be exported from Belize to Mexico next week

    BBN: Next week Belizean cattle farmers will be exporting approximately 500 head of cattle to Mexico as formal cattle exports to the neighboring countries continue and as the government negotiates a partial-scope agreement with Mexico. Read more

    National strategy for commodities, especially sugar, recommended

    Demerara Waves: An International Labour Organisation (ILO)-supported study on the impact of the closure of four of Guyana’s sugar estates has recommended the crafting of a strategy to withstand market volatility of commodities and gear up the sugar industry to invest in ethanol production. Read more

    Barbados making a case for keeping corporate tax rate amid global move

    Barbados Today: Barbados is mounting a case against the introduction of a global minimum corporate tax rate that would see the island having to almost triple its current rate and lose its status as a low-tax jurisdiction. Read more

    Senator Adams: Choose to respond positively

    Barbados Advocate: One Barbados government senator believes Barbados can still profit from the international business sector regardless of the stipulations being imposed by the European Union and other international organisations. Read more

    Association of Jamaicans in China Continues to Provide Support

    JIS: Minister of Foreign Affairs and Foreign Trade, Senator the Hon. Kamina Johnson Smith, says the Association of Jamaicans in China will continue to be leveraged as an outreach mechanism, which complements the Diplomatic Mission, to serve nationals residing in the Asian country. Read more

    Honorary Investment Advisor appointed for Toronto, Canada

    JIS: JAMPRO and the Ministry of Foreign Affairs and Foreign Trade (MFAFT) have officially appointed Mr. Jerrold Johnson to be Jamaica’s Honorary Investment Advisor (HIA) for Toronto, Canada. Johnson will work to promote Jamaican investment opportunities in Toronto and will facilitate business connections to attract investment to Jamaica. Read more

    Gov’t Provides Greater Safeguards For Brand Jamaica

    JIS: The Government is providing greater safeguards for brand Jamaica on the international marketplace through passage of amendments to the Trade Marks Act in the House of Representatives on Tuesday (June 1). Read more

    Global Jamaica Diaspora Councils Operationalised

    JIS: The Global Jamaica Diaspora Council and the Global Jamaica Diaspora Youth Council have been operationalised following the establishment of working groups and the preparation of a programme to guide their work. Read more

    INTERNATIONAL NEWS

    WTO to hold key meeting of trade ministers on July 15 over fisheries subsidies

    Business Today: The aim is to conclude the negotiations soon and after that, a text is finalised so that an agreement on fisheries can be reached in the forthcoming ministerial meet of WTO in December in Geneva. Read more

    UK begins talks to join Asia-Pacific CPTPP trade treaty

    The Guardian: The UK is beginning negotiations to join a free trade alliance with Asia-Pacific countries, a key part of its attempts to pivot trade away from Europe after Brexit. Read more

    Brexit: Irish fishing fleet stages protest over EU-UK trade deal

    BBC: People working in the Irish fishing industry are protesting at Dublin Port over the impact of the Brexit deal. Read more

    What’s behind China’s anti-dumping complaint against Australia at the World Trade Organization?

    ABC (Australia): On Thursday, China’s government suddenly announced it would raise a dispute at the World Trade Organization (WTO) against Australian anti-dumping duties on three of its exports. Read more

    Building business engagement ahead of the WTO’s 12th Ministerial Conference

    ICC: ICC joined business leaders and World Trade Organization (WTO) Ambassadors to discuss and exchange ideas on ensuring the equitable distribution of COVID-19 vaccines. Read more

    WTO head says South Africa, Senegal, Rwanda and Nigeria considered as vaccine production hubs

    Reuters: Africa is working with the European Union and other partners to help create regional vaccine manufacturing hubs in South Africa, Senegal and Rwanda, with Nigeria under consideration, World Trade Organization Director-General Ngozi Okonjo-Iweala said. Read more

    Global minimum tax faces ‘long and rocky path’ to implementation after G20 endorsement

    SCMP: A new global minimum corporate tax could take up to five years to come into effect if endorsed by the Group of 20 (G20), with countries such as India likely to be beneficiaries, tax consultants say. Read more

    Taiwan, U.S. to hold long-stalled trade talks next week

    Reuters: Taiwan and the United States will hold trade talks next week, the de facto U.S. embassy in Taipei said on Friday, resuming long-stalled discussions as Washington seeks to deepen its support for the Chinese-claimed island. Read more

    Scotch whisky tariffs suspended in UK-US trade deal

    BBC: The Scotch whisky industry has welcomed the suspension of US tariffs on its products after the UK and US resolved a long-running trade row over subsidies given to Airbus and Boeing. Read more

    U.S. trade nominee urges ‘robust monitoring’ of aircraft subsidy truce with EU

    Reuters: The United States must carry out “robust monitoring” of its five-year truce with the European Union in a 17-year battle over aircraft subsidies, Jayme White, President Joe Biden’s nominee to serve as deputy U.S. Trade Representative, said on Thursday. Read more

    U.S. trade boss Tai: We will not incentivize firms to move jobs overseas

    Reuters: The Biden administration said on Monday it was working closely with the United Autoworkers union in pressing Mexico to probe alleged labor rights violations at a General Motors Co (GM.N) plant in that country, and vowed to fight for a worker-focused trade policy. Read more

    China slams‘bandit-like’ US over trade restrictions on Xinjiang firms

    SCMP: China on Friday hit out at a “bandit-like” US government after Washington banned imports of solar panel materials from a Chinese company and placed trade restrictions on four others for alleged use of forced labour in Xinjiang. Read more

    Economy Minister says Brazil has “major problem” with Argentina in MERCOSUR negotiations

    The Rio Times: The Minister also complained that international criticism of Brazil, supposedly for environmental issues, is really motivated by protectionism. Read more

    Chemical industry calls for current MERCOSUR rules to be respected in TEC revision

    The Rio Times: The joint document expresses concerns of domestic chemical firms in Brazil, Argentina, and Uruguay, which fear competition from abroad if tariffs are reduced. Read more

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