Caribbean Trade Law and Development

Tag: CARICOM

  • COMMUNIQUÉ ISSUED AT THE CONCLUSION OF THE THIRTY-SECOND INTERSESSIONAL MEETING OF THE CONFERENCE OF HEADS OF GOVERNMENT OF THE CARIBBEAN COMMUNITY, 24-25 FEBRUARY 2021

    COMMUNIQUÉ ISSUED AT THE CONCLUSION OF THE THIRTY-SECOND INTERSESSIONAL MEETING OF THE CONFERENCE OF HEADS OF GOVERNMENT OF THE CARIBBEAN COMMUNITY, 24-25 FEBRUARY 2021

     (CARICOM Secretariat, February 25, 2021) The Thirty-Second Intersessional Meeting of the Conference of Heads of Government of the Caribbean Community (CARICOM) was held virtually on 24-25 February 2021.  The Prime Minister of Trinidad and Tobago, Dr. the Honourable Keith Rowley chaired the proceedings.

    Other Members of the Conference in attendance were: Prime Minister of Antigua and Barbuda, Honourable Gaston Browne; Prime Minister of Barbados, Honourable Mia Amor Mottley, Q.C; MP;  Prime Minister of Belize, Honourable John Briceño; Prime Minister of Dominica, Honourable Roosevelt Skerrit; Prime Minister of Grenada, Dr. the Rt. Honourable Keith Mitchell; President of Guyana, His Excellency Dr Mohamed Irfaan Ali; President of Haiti, His Excellency Jovenel Moïse; Prime Minister of Jamaica, the Most Honourable Andrew Holness; Premier of Montserrat,  Honourable Easton Taylor-Farrell; Prime Minister of St Kitts and Nevis, Dr the Honourable Timothy Harris; Prime Minister of Saint Lucia, Honourable Allen Chastanet;  Prime Minister of St. Vincent and the Grenadines, Dr. the Honourable Ralph Gonsalves and  President of Suriname, His Excellency Chandrikapersad Santokhi.

    The Bahamas was represented by Honourable Darren Henfield, Minister of Foreign Affairs.
     Associate Members in attendance were: Bermuda represented by Deputy Premier Honourable Walter Roban and the British Virgin Islands represented by Premier, Honourable Andrew Fahie;

    OPENING

    Chair of the Conference of Heads of Government Prime Minister of Trinidad and Tobago, Dr. the Honourable Keith Rowley, immediate past Chair Prime Minister of St. Vincent and the Grenadines, Dr. the Honourable Ralph Gonsalves and Secretary-General Ambassador Irwin LaRocque delivered statements at the opening of the meeting.
    The statements are available at www.caricom.org

    COVID-19 AND ITS IMPACT ON THE REGION

    Heads of Government discussed the impact of the Covid-19 Pandemic on Member States and agreed to issue the attached statement.


     CARICOM ECONOMIC RECOVERY AND TRANSFORMATION (CERT)

    Heads of Government received an update from the Prime Minister of Barbados, Honourable Mia Amor Mottley, on the CARICOM Economic Recovery and Transformation (CERT) Programme which includes securing immediate liquidity enhancements to begin the process of economic revitalization; debt refinancing; measures to protect the balance of payments and boost regional production.  

    Heads of Government reiterated their call for a new allocation of Special Drawing Rights to boost global liquidity; the conversion of COVID-related debt into long-term, low-interest loans; and the use of a multi-dimensional universal vulnerability index and vulnerability criteria to determine access to concessional funding by small middle income States.

    Heads of Government also established a small team to be led by the Honourable Prime Minister of Barbados and comprising the Vice President of Guyana as well as representation from the Organisation of Eastern Caribbean States (OECS) and Trinidad and Tobago to undertake a resource mobilization roadshow.


    CARICOM SINGLE MARKET AND ECONOMY

    Heads of Government expressed continuing concern about the progress made and the outstanding actions still required to advance implementation of the CARICOM Single Market and Economy (CSME) particularly to support economic recovery in the face of the debilitating impact of COVID 19.

    Heads of Government reaffirmed the critical role of the CSME in the Region’s strategy for sustained economic growth, to build economic resilience by developing the capacity to withstand both external and internal shocks to the Community

    They agreed to review urgently the entire consultation and decision-making processes at all levels in the effort to establish the most effective strategy for effecting increased levels of implementation. They also agreed that an immediate step towards achieving implementation would be led by the Lead Head of Government with responsibility for the CSME, Prime Minister Mia Mottley.

    Heads of Government mandated the Council for Finance and Planning (COFAP) to meet urgently no later than end of March 2021, to resolve the outstanding issues and reach agreement with respect to the CARICOM Financial Services Agreement (CFSA), the Regional Securities Market, the Community Investment Policy and Credit Reporting.

    Heads of Government urged the removal of non-tariff barriers to trade among Member States and the simplification of administrative procedures for free movement of people in order to boost economic output.

    They stressed the urgent need to address and resolve those critical issues that impede the benefits of the CSME being enjoyed by all, particularly the private sector on which the Region is depending to fuel the recovery of its economies and which needed to be fully engaged at both the national and regional levels.

    Heads of Government also urged the Special Council for Trade and Economic Development (COTED)-ICT to expedite the establishment of the Single ICT Space together with access to reduced roaming rates and enhanced access to broadband as well as to examine the feasibility of establishing a Single Regional Telecommunications Regulator for the consideration of the Forty-Second Meeting of the Conference in July 2021. This would be fundamental to advance the digital economy.

    Heads of Government recognising that the Multilateral Air Services Agreement (MASA) is now in effect, instructed the Special COTED (Transportation) to work with Member States to take the action necessary for an effective air transportation system. The Council was also instructed to follow up on the initiatives aimed at building maritime capacity especially for transportation of agricultural produce.

    Heads of Government directed that to develop further maritime transportation and support intra-regional cargo, a study be undertaken to review the status of existing port facilities in Member States; this with a view to determining those requiring update to their facilities.


    CARICOM Development Fund (CDF)

    Heads of Government reiterated the important role of the CARICOM Development Fund (CDF) to the social and economic advancement of the Community. They noted that in the context of the dire fiscal, economic and social circumstances facing Member States arising from the impact of the COVID-19 pandemic, the CDF should be positioned to provide support to Member States’ post-pandemic recovery efforts.

    Heads of Government therefore agreed to a further one-year extension to the CDF’s second contribution and subvention cycle to 30 June 2022.

    They recognised the potential impact of funding shortfalls and protracted payment delays on Member States’ programmes and the CDF’s liquidity, financial sustainability and capacity to fulfil its mandate.

    Heads of Government instructed the CDF to continue its efforts at mobilising funds from international development partners (IDPs) and other agencies to assist in replenishing the capital fund of the CDF.  They further instructed the CDF to submit a proposal to the Council for Finance and Planning for the issuance of a Growth and Resilience Bond to support the economic recovery and transformation of Member States.


    Commission on the Economy

    Heads of Government accepted the Final Report (“Caribbean 9:58”) of the CARICOM Commission on the Economy, comprising of a group of eminent regional and international experts who provided advice on implementable solutions to build resilience and return CARICOM economies to a path of sustainable growth and development.  The Report contained a Prologue which set out a 12-Point Action Plan in Response to the COVID-19 Global Pandemic.

    Heads of Government decided that the CARICOM Secretariat will work with the Commission to review the recommendations so that the relevant Community Organs can formulate Implementation Plans for the consideration of the Forty-Second Regular Meeting of the Conference in July 2021.

    Heads of Government agreed to the early publication and circulation of the Report in order to facilitate a region-wide debate on the recommendations within the context of the economic challenges and prospects for the Community.  The regional debate will be facilitated by the Chairman and Members of the Commission.

    Heads of Government expressed their appreciation to the Chairman and Members of the Commission for their work in producing an incisive and strategic Report.


    ADVANCING THE REGIONAL AGENDA ON FOOD AND NUTRITION SECURITY

    Heads of Government welcomed the presentation by the Lead Head of Government responsible for Agriculture; Agricultural Diversification and Food Security in the CARICOM Quasi Cabinet, His Excellency Mohammed Irfaan Ali, President of Guyana.

    They commended the President of Guyana on the work done in developing the proposed strategies as set out in the paper entitled: “Advancing the CARICOM Agri-Food Systems Agenda; Prioritising Regional Food and Nutrition Security”.

    Heads of Government acknowledged that the situation of food security in the Caribbean Community remained a major challenge, now exacerbated by the COVID-19 pandemic. They noted issues with accessibility to healthy foods, disruptions in production and productivity and to global supply chains, as well as vulnerability to climate change and barriers to intra-regional trade.

    Heads of Government noted that the Region’s food import bill continued to rise and called for more investment in agriculture and food production.

    Heads of Government endorsed the development of the agri-food system strategy through strategic partnership with regional private sector bodies to promote commercialization of the sector and supported the implementation of policy recommendations in that regard.

    Heads of Government urged the Member States to consider to allocate a specific percentage of locally produced agricultural products to be procured through the public procurement systems within Member States.

    Heads of Government urged Member States to commit to a targeted percentage allocation of public spending in the Food and Agriculture Sector and to the harmonisation of sanitary and phytosanitary standards across the Region to address barriers to intra-regional trade.

    Heads of Government agreed to the establishment of a Special Ministerial Task Force on Food Production and Food Security which would work closely with the private sector on an Action Plan to follow-up and monitor implementation of the strategy.


    JOINT TOURISM POLICY

    Heads of Government deliberated on the framework for a Joint Tourism Policy for CARICOM (JTPC) to address the impact of the COVID-19 Pandemic on the Region’s tourism industry which has been particularly affected in terms of revenues, employment, foreign exchange retention and currency stability.

    Heads of Government noted that the Community is the most tourism and travel dependent region in the world and had mandated the development of the Policy led by an Interim Tourism Working Group.

    Heads of Government endorsed the framework and agreed to an iterative approach in developing the policy. They agreed that initially there would be an Emergency Tourism Plan with a subsequent more detailed policy and strategy being developed by the third quarter of 2021.

    Heads of Government also endorsed the development of a Tourism Reserve Fund which would be financed by a levy contributed by a coalition of willing Member States.

    Heads of Government commended the work of the Interim Tourism Working Group (ITWG) comprising representatives from the Caribbean Tourism Organization (CTO), Caribbean Hotel and Tourism Association (CHTA), the CARICOM Secretariat as well as representatives of the Organisation of the Eastern Caribbean States (OECS) Commission and the Government of Saint Lucia.


    ENGAGEMENT WITH THE PRIVATE SECTOR, LABOUR AND CIVIL SOCIETY

    Heads of Government engaged with representatives of the CARICOM Private Sector Organisation and the Caribbean Policy Development Centre (CPDC) on behalf of civil society.

    They exchanged views on the CARICOM Single Market and Economy and proposals to boost the agriculture sector in particular.

    Heads of Government welcomed the commitment by the CPSO to support fully the regional agenda on Food and Nutrition Security and to work closely with the Special Ministerial Task Force on Food Production and Food Security established by the Conference.

    They welcomed the commitment by the CPDC to becoming a more meaningful partner going forward.

    SECURITY ISSUES

    Heads of Government received a report from the Council for National Security and Law Enforcement (CONSLE). They also received a security brief on areas of concern to the Region from the CARICOM Implementation Agency for Crime and Security (IMPACS).

    Heads of Government agreed to convene as soon as possible a High-level Summit of Member States and regional multi-sectoral partners on violence as a public health issue.


    REPARATIONS

    Heads of Government received a report from the Prime Ministerial Sub-Committee on Reparations (PMSCR) and recommitted to support and advance the issue.

    They commended the CARICOM Reparations Commission (CRC) on the significant outreach activities undertaken and the global impact of its work to-date.

    Heads of Government urged Member States to engage actively youth and the creative community to increase public awareness and commitment as well as build a broad-based coalition in support of reparatory justice at the national and regional levels.

    Heads of Government agreed to seek collaboration with the African Union (AU), to co-sponsor a proposed Summit with European Heads of Government.  They also mandated the Secretariat to examine the modalities for convening a Summit on Reparations with the AU.

    They agreed that the Chair of the PMSC would collaborate with the CRC to mobilise technical assistance to develop a concept paper on the design, purpose and management of a proposed International Development Fund (IDF).

    Heads of Government congratulated Professor Sir Hilary Beckles, Chairman of the CARICOM Reparations Commission, on being conferred with the Dr. Martin Luther King Jr. Global Award in January 2021.

    COMMUNITY RELATIONS; Haiti; British Virgin Islands

    Heads of Government discussed the situation in Haiti and issued the attached statement.

    Heads of Government discussed the situation in the British Virgin Islands and issued the attached statement.


    BORDER ISSUES

    Belize-Guatemala Relations

    Heads of Government were informed of the progress of Guatemala’s Territorial, Insular and Maritime Claim (Guatemala/Belize) at the International Court of Justice and noted that Guatemala has filed its Memorial and that Belize has until June 2022 to submit its Counter Memorial.

    Heads of Government urged Belize, Guatemala and the OAS to continue implementing fully the existing Confidence Building Measures.

    Heads of Government recalled that both countries and the OAS had committed to design a mechanism of co-operation for the Sarstoon River and called on them to redouble their efforts to this end.

    They recognised the significant role of the OAS in the process aimed at resolving the dispute, and called on the international community to increase support for the OAS Office in the Adjacency Zone.

    Heads of Government reiterated their unequivocal support for the sovereignty, territorial integrity and security of Belize.


    Guyana-Venezuela Relations

    Heads of Government welcomed the decision made by the International Court of Justice (ICJ) on December 18, 2020, that it has jurisdiction to entertain the Application filed by Guyana on March 29, 2018 and noted that it paves the way for the ICJ to consider the merits of the case concerning the Arbitral Award of 3 October 1899 (Guyana v. Venezuela). Heads of Government expressed their disappointment over the rejection by Venezuela of the decision of the Court.

    Heads of Government reiterated their concern over the issuance of decree No 4.415 on January 7, 2021, which claimed for Venezuela sovereignty and exclusive sovereign rights in the waters and seabed adjacent to Guyana’s coast. The subsequent illegal interception and detention, in the Exclusive Economic Zone of Guyana, of two Guyanese registered fishing vessels and their crew members by a Venezuelan naval vessel on January 21, 2021 were condemned.

    Heads of Government noted with satisfaction that the cumulative effort of the region contributed to the unconditional release by Venezuela of the fishing vessels and crews.

    Heads of Government expressed their full support for the ongoing judicial process that is intended to bring a peaceful and definitive end to the long-standing controversy between the two countries and urged Venezuela to participate in the process.

    Heads of Government remained very concerned about the threatening posture of Venezuela and reaffirmed their consistent support for the maintenance and preservation of the sovereignty and territorial integrity of Guyana.


    CARICOM US RELATIONS

    Heads of Government exchanged views on CARICOM relations with the United States of America in the context of the change in Administration in the US and emphasised that the country remains one of the Community’s most important external relationships.

    Heads of Government agreed that every effort would be made to engage the new US Administration at all levels once sufficient groundwork has been laid. Efforts should also be made to build on existing formal initiatives such as the US-Caribbean Strategic Act and active platforms of engagement on energy, trade, security, education, disaster management and resilience.

    They called for greater cooperation on firearms including locating an ATF officer in the Southern Caribbean along with a Homeland Security Investigations Officer.  Heads of Government reaffirmed their commitment in the fight against Trafficking in Persons (TIP) and agreed to a démarche articulating their concerns with the modalities of the TIP Report.

    They underlined the importance of engaging also with the US Congress and its specialised committees. This would allow for engagement on issues of interest such as blacklisting, correspondent banking, access to concessional financing and other security issues.

    They also urged the Community to broaden its outreach beyond USA state-to-state institutions to include academia, labour, the private sector, think tanks and the Caribbean diaspora whose advocacy could be of assistance in advancing the Region’s interests.

    Heads of Government welcomed the early indications from the US that there would be greater emphasis on the fight against climate change, an issue of existential importance to the Community.


    DATE OF THE FORTY-SECOND REGULAR MEETING OF THE CONFERENCE

    The Prime Minister of Antigua and Barbuda will assume the Chair of the Conference for the six-month period commencing 1 July 2021.  The 42nd Regular Meeting will be held from 5 – 6 July 2021

    STATEMENT BY THE CARIBBEAN COMMUNITY ON HAITI
    Heads of Government expressed their deep concern over the deteriorating political situation and the deepening public anxiety over citizen security in Haiti.

    They took note of the Report of the United Nations Secretary General of 11 February 2021 and of the comments therein on the political and governance issues.

    Heads of Government underlined the importance of respect for the rule of law and constitutional processes as laid out in the CARICOM Charter of Civil Society, and the primary responsibility of the government to this end.

    They called on the political actors to engage in dialogue to reach consensus on the way forward and establish an enabling environment for the conduct, as quickly as possible, of the elections to renew the lapsed Legislative and Local Government Institutions.

    Heads of Government look forward to the conduct of free and fair Presidential Elections, in accordance with the Constitution of Haiti.

    25 February 2021

    STATEMENT BY THE CARIBBEAN COMMUNITY ON
    COMMISSION OF INQUIRY IN THE BRITISH VIRGIN ISLANDS
    Heads of Government received a letter from the Premier of the British Virgin Islands which apprised of the announcement on 18 January 2021 of a Commission of Inquiry (COI) “to establish whether there is evidence of corruption and abuse of office or other serious dishonesty” in the British Virgin Islands. The COI was ordered by the then sitting Governor.

    Heads of Government are cognisant of the disquiet that has arisen among the people of the British Virgin Islands about the establishment of the COI.  Further, the Heads of Government are dismayed at the manner in which the COI was established with no consultation, or prior communication, between the UK government and the duly-elected government of the British Virgin Islands.

    Heads of Government noted the strongly-expressed concerns on this matter by the British Virgin Islands government, which concerns are also shared by other Associate Members of the Community.


    25 February 2021

    STATEMENT BY THE CARIBBEAN COMMUNITY ON ACCESS TO COVID-19 VACCINES
    The Caribbean Community (CARICOM) is dissatisfied and deeply concerned about the inequitable access to vaccines for Small Developing States like those of the Community.

    CARICOM calls for equitable access to vaccines in order to curb the impact of the pandemic, to protect our citizens and bolster the economy.  As the virus does not discriminate, access to vaccines should not be discriminatory, with a few countries dominating the market with their resources and their volumes.  Heads of Government noted that to date, even countries with the funds to purchase, have been unable to procure and receive vaccines through commercial arrangements, given the relatively small volumes which they seek.

    Member States noted that although they have all signed on to the highly valued and appreciated COVAX Facility, the only vaccines received in the region to date were through the generosity of the Prime Minister of India, Narendra Modi, who has donated 170,000 vaccines to Barbados and Dominica through bi-lateral arrangements. CARICOM commends Prime Minister Modi for his generosity, which it is understood, will be continued. They also thanked Barbados and Dominica for having shared their initial supplies which were received from India.

    Member States further noted that while the COVAX Facility will provide up to 20 percent of Members’ needs, this limited supply will not allow us to attain the regional herd immunity, so necessary to fuel the resilient recovery that we are seeking.  Heads of Government therefore call for a mechanism that allows smaller countries to have access to sufficient vaccines at the earliest juncture, if action is to be put behind the oft-repeated phrase that “no-one is safe until everyone is safe”.

    Other initiatives, such as procurement through the African Union’s African Medical Supplies Platform (AMSP), as well as bilateral arrangements, are being pursued by some Member States with the support of CARICOM.  We commend the government of the Republic of South Africa and the African Union, for having carved out an allocation for CARICOM countries.

    We urge developed countries, and especially those in our neighbourhood whose populations travel frequently to our region, and who host our largest diaspora populations, to make some available to the Community, initially as an interim supply given the immediacy of the need. CARICOM has taken a decision to write to the governments of some traditional partners on the matter.



    Attention is also needed at the multilateral level and to this end, the Community has called on the World Health Organization (WHO) to convene a Global Summit to address urgently equitable access to COVID-19 vaccines, particularly for developing countries, which should be held in the context of the World Health Organization’s ACT-A Facilitation Council.

    25 February 2021

  • A Conversation with Prime Minister of the Republic of Trinidad and Tobago and Chairman of CARICOM Keith Rowley

    A Conversation with Prime Minister of the Republic of Trinidad and Tobago and Chairman of CARICOM Keith Rowley

    Please join the Atlantic Council on Friday, February 26, from 10:00-10:30 a.m. EST / 11:00-11:30 a.m.  AST, for a conversation with Prime Minister of Trinidad and Tobago Keith Rowley, on “Re-Setting US-Caribbean Relations.”

    The Prime Minister will be speaking in his role as the current Chair of the Caribbean Community (CARICOM) which will have just concluded its intersessional Heads of Government Meeting. The conversation will launch the work of the Adrienne Arsht Latin America Center’s new Caribbean Initiative. 

    The programme is as follows:

    Dr the Honourable Keith Christopher Rowley
    Prime Minister of the Republic of Trinidad and Tobago
    &
    Chairman of the Caribbean Community (CARICOM)

    In conversation with
    ​​​​Jason Marczak
    Director, Adrienne Arsht Latin America Center
    Atlantic Council

    Introduction by

    Frederick Kempe
    President & CEO
    Atlantic Council

    Closing by

    Melanie Chen
    Board Director
    Atlantic Council

    COVID-19 has highlighted a new iteration of great power competition in vaccine distribution and commercialization. The pandemic brings to the forefront why the future of the Caribbean — with a population of almost 50 million – is critical for the United States. Tied together by geography and history, Prime Minister Keith Rowley will speak about the region’s global challenges and how resetting US-Caribbean relations can contribute to hemispheric security and prosperity.

    This live event is part of the Atlantic Council Front Page event series, our premier ideas platform spotlighting global leaders who are championing constructive solutions to global challenges. To participate, please register below. Once you have registered, you will receive a confirmation email with information on how to join via zoom.

    To participate in the Q&A with Prime Minister Rowley, please submit questions on twitter using the hashtag #ACFrontPage and following @AtlanticCouncil. To ask questions in advance, please email Wazim Mowla at wmowla@atlanticcouncil.org.

  • The need for a CARICOM Trade and Development Strategy

    The need for a CARICOM Trade and Development Strategy

    Alicia Nicholls

    Last week the European Union (EU), one of the Caribbean Community (CARICOM)’s largest and key trading partners, released a communication outlining what would be the elements of the EU’s new trade strategy over the medium term.

    This article discusses the elements of the new EU trade strategy, but does so as a backdrop to explain why a similar exercise by CARICOM, as well as a comprehensive review of CARICOM’s existing trade agreements, is long overdue.

    The elements of the new EU trade strategy

    The EU has indicated that in light of new internal and external challenges, which include its more sustainable growth model, it will be formulating a new trade policy. According to the Commission’s communication, the EU needs a new trade policy strategy which “will support achieving its domestic and external policy objectives and promote greater sustainability in line with its commitment of fully implementing the UN Sustainable Development Goals”.

    The new ‘open, sustainable and assertive’ trade policy would be based on what the Commission has termed ‘Open Strategic Autonomy’. This concept is defined in the EU communication as follows: “Open strategic autonomy emphasises the EU’s ability to make its own choices and shape the world around it through leadership and engagement, reflecting its strategic interests and values”.

    The communication outlines the core objectives of what will be the EU’s new trade policy for the medium term. These are (1) supporting the recovery and fundamental transformation of the EU economy in line with its green and digital objectives; (2) shaping global rules for a more sustainable and fairer globalization and (3) increasing the EU’s capacity to pursue its interests and enforce its rights, including autonomously where needed.

    While the document notes that multilateralism and open trade remain central tenets of the EU’s trade strategy, it strongly hints at the possibility of the EU taking unilateral action on enforcing its rights against what it terms ‘unfair trade practices’. It is likely this assertive tone is aimed at China and the US, in particular.

    To deliver on the objectives of its new trade strategy, the Commission has indicated that it would focus on several deliverables, including “reinforcing the EU’s focus on implementing and enforcing trade agreements, and ensuring a level playing field for EU businesses”.

    Considering the EU’s recognition that the majority of global growth is expected to take place outside of the EU in the coming years, it is not surprising that another deliverable for its new trade policy outlined in the communication is “deepening the EU’s partnerships with neighbouring, enlargement countries and Africa”. The Caribbean is not among the regions prioritized. While it could be argued that this is because of the longstanding relationship between the EU and CARIFORUM under the EU-ACP relationship, many African countries are part of the long-standing EU-ACP relationship as well.

    One of the things the African region has over the Caribbean and why so many countries, including China and now those in the Caribbean, are making greater overtures towards the African continent, is that Africa is clearly one of the new hotspots for global growth. Some African countries, like Rwanda for example, are becoming shining examples of post-conflict growth and development. Moreover, Africa’s growth prospects will be boosted with the African Continental Free Trade Agreement (AfCFTA) which came into effect January 1, 2021 and is currently being operationalized. Meanwhile in the Caribbean, with the exception of Guyana which has benefited from its new oil exporter status, growth among our countries remains lacklustre, beset by several shocks, with the COVID-19 pandemic being one of the latest.

    The need for a CARICOM trade and development strategy

    The EU’s announcement of its new trade strategy made me wonder, and not for the first time, does CARICOM have a trade and development strategy? After several inquiries, I am none the wiser as I am yet to see any public document which outlines a comprehensive CARICOM trade and development strategy.

    Some individual CARICOM Member States, for example Belize, Jamaica and Trinidad & Tobago, have clearly outlined and documented trade policy/strategy documents which can be easily found with a simple Google search. But there is a need for a comprehensive and clearly articulated region-wide strategy for trade and development. Why? Quite simply, we are stronger when we are unified. Among the objectives of the Community outlined under Article 6 of the Revised Treaty of Chaguaramas is the enhanced coordination of Member States’ foreign and foreign economic policies. Enhanced coordination does not mean a requirement to consolidate, but it stems from a recognition that the region is stronger on any given matter of a foreign policy or foreign economic policy nature when our approach is unified. In much the same way, a unified approach on a regional trade and development strategy would be beneficial to the region.

    There was a CARICOM Strategic Plan for the period 2015-2019, which was the first of its kind and which outlines a strategy for repositioning CARICOM, including its trade and investment relations. However, there is no publicly available information, as far as I am aware, on whether the goals under this plan have been achieved or whether its operation was even assessed. Will there be another five year strategic plan? One is certainly needed given the changing realities our countries confront.These are questions that should be easily answered by being able to look on CARICOM’s website.

    A comprehensive CARICOM trade and development strategy is especially important now that it is pellucidly clear that the overreliance on a single sector for economic activity, employment and foreign exchange, which is tourism for most of us, remains a perilous development strategy. It has long been recognised that there is a need to not only diversify our trade through higher value-added goods and services, but expand links with non-traditional partners, such as China, African countries, India and countries of the Middle East. How can our existing trade agreements with current major partners be leveraged to support our goals of export diversification and expansion? Do we need trade agreements with some of our newer partners? How can we better utilise economic diplomacy and our diasporas as part of our trade strategy?

    Any CARICOM trade strategy must be clearly undergirded by the region’s strategic development objectives, and logically linked to an industrial policy. It must complement and not be divorced from strategies to promote MSME growth and internationalization or diaspora engagement. Of course, formulating such a strategy would be an involved process and should involve extensive consultations with key stakeholders both at the regional and national levels, including the private sector, civil society and ordinary citizens. Much could be learned from the process of how the EU does its consultations.

    This brings me to another critique, the lack of transparency which remains a problem in our region. It is not good enough that those of us who follow trade know more about what goes on in other regions, especially the EU through its excellent website and other communications infrastructure, than what happens in CARICOM.

    Although CARICOM has introduced some commendable outputs like its use of social media, weekly video summary of what is happening in the Community and its summary of business news across the region, it would also be helpful to see more substantive information on what is discussed in COTED and COFCOR meetings. The issues discussed in these meetings have an impact on the ordinary CARICOM citizen and it is regrettable that often there are no communiques released after these meetings or where there are, the information usually appears generic with little substance.

    Need for review of CARICOM’s trade agreements

    Lastly, there is also the need for a comprehensive evaluation of the region’s trade agreements in much the same way as I called for a review of our existing bilateral investment treaties in a previous article. CARICOM has partial scope agreements with Colombia, Venezuela and Cuba. It has free trade agreements (FTAs) with the Dominican Republic and Costa Rica.  The CARIFORUM-EU Economic Partnership Agreement is CARICOM’s first FTA with a developed country partner, and the CARIFORUM-UK EPA rolls over the provisions of this agreement to cover CARIFORUM-UK trade now that the UK has exited the EU. Most CARICOM countries also benefit from non-reciprocal preferential market access for their goods to the Canadian market through CARIBCAN and to the United States (US) through the Caribbean Basin Initiative. Individual CARICOM countries also have partial scope agreements, often with neighbouring countries in South or Central America.

    Unfortunately, most of the data on the utilization of these agreements are via reports published by our partners, and not through our own publicly available independent studies. In the case of the Caribbean Basin Initiative, we have to rely on the biennial reports published by the United States International Trade Commission (USITC) for data on the operation of that programme.

    In the case of the CARIFORUM-EU EPA, it is through the review reports commissioned by the European Commission . The most recent European Commission report on the monitoring of the EPA, though noting some progress with implementation, highlights several remaining implementation deficits. It also shows that the Agreement remains underutilized and that in some cases, there is limited awareness by firms of the existence of the Agreement and the opportunities thereunder. This is despite the many sensitization workshops, seminars and literature conducted and disseminated on the EPA. Why is this? And how can it be fixed?

    An excellent study by McClean and Khadan of 2014, which was published by the Economic Commission for Latin America and the Caribbean (ECLAC), found that the situation of under-utilisation is endemic with all of the region’s trade agreements. A key paragraph from the study is deserving of particular attention:

    In spite of the various trade agreements negotiated, CARICOM export performance has not
    improved significantly and there has been little movement up the value chain, particularly since
    subregional economies have been unable to transform their production systems in order to take
    advantage of the market access opportunities provided by these trade arrangements. In addition,
    production and exports of Caribbean goods are extremely specialized and along with its services sectors
    have been declining in competitiveness. (McClean & Khadan 2014)

    Is it not time that CARICOM conduct its own public review of the operation of its trade agreements to empirically ascertain the reasons for the poor utilisation by regional firms of its trade agreements, but also whether these agreements are making any contribution to regional development? Larger countries and regions, like the EU and US, do periodic review of their agreements. I see no reason why we should not be doing the same. Moreover, any report from such a review should be made publicly available.

    In summary, the EU’s recognition of the need to rethink its trade strategy in light of changing economic and geopolitical developments and its more sustainable growth model reiterates why a similar exercise is long overdue in 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.

  • What’s Happened in Trade since December 2020?

    What’s Happened in Trade since December 2020?

    Alicia Nicholls

    Happy New Year to all of our readers! Since our last Caribbean Trade & Development News Digest was published near the end of December 2020, some major trade developments have occurred. If you missed any of these developments, we will bring you up to speed with the top ones in this article!

    UK-EU begin trading under new trade arrangements

    The United Kingdom (UK) and European Union (EU) received the Christmas present they both wanted. On Christmas Eve (December 24) 2020, political agreement was reached on their future trading terms before the Brexit transition period deadline of December 31, 2020. The deal averts the no-deal scenario, that is, trading on World Trade Organization (WTO) Most Favoured Nation (MFN) terms. Such a scenario would have caused, among other things, the reintroduction of tariffs. This would have been disastrous for both parties, and is a circumstance both sides sought to avoid at all costs, even as contingency plans were put in place in case of the worst case scenario.

    The new EU-UK Trade and Cooperation Agreement covers not just trade and investment, but also deals with issues such as competition policy, fisheries, State aid, tax transparency, among other areas of mutual interest. January 31, 2021 marked the start of the EU-UK’s new trading arrangement. Of course, implementation of the new arrangements have not been without their kinks, including border delays due to the reintroduction of customs checks.  

    The UK-CARIFORUM EPA, which rolls over the provisions of the EU-CARIFORUM, now governs trade between the UK and CARIFORUM countries. The EU-CARIFORUM EPA, of course, remains in effect as between CARIFORUM countries and the remaining EU-27. It remains to be seen what practical impact the new EU-UK trading arrangement may have on CARIFORUM’s trade with the EU and UK respectively, including on supply chains.

    Trading under AfCFTA begins

    Originally slated for July 1, 2020, but delayed due to the COVID-19 pandemic, trading under the Africa Continental Free Trade Agreement (AfCFTA) has officially started from January 1, 2021. A special ceremony marking the Start of Trading was held to mark this historic occasion and the recording may be viewed here.

    The AfCFTA is a landmark trade agreement comprising 54 African countries, with an integrated population of 1.3 billion people and a combined GDP of US 3.4 trillion. It is second only to the WTO as the world’s largest trade agreement. While full implementation of the AfCFTA is not expected for some time, it is expected to help boost economic development on the continent.

    A recent PWC report highlights the ways the AfCFTA could assist African countries in their COVID-19 economic recovery. These include providing the opportunity to reconfigure supply chains, allowing for greater intra-regional sourcing of goods, such as pharmaceuticals, thereby reducing dependence on third countries.

    CARICOM-Africa relations continue to develop and it was announced that the African Union (AU) has offered CARICOM access to approved COVID-19 vaccines from a shipment the AU recently secured.

    EU-China reach agreement in principle on Comprehensive Agreement on Investment (CAI)

    On December 30, 2020, it was announced that the EU and China had reached agreement in principle on the text of a Comprehensive Agreement on Investment (CAI). While the text does not appear to be public as yet, the agreement is said to cover market access for EU and Chinese investors respectively, sustainability commitments and provision for State-to-State resolution of disputes arising under the agreement. The EU and China also commit to try to complete negotiations on investment protection and investment dispute settlement within two years of the agreement’s signature.

    US Section 301 investigations on Vietnam currency valuation and on DSTs

    In December, the US Department of the Treasury designated Vietnam as a currency manipulator. According to the USTR, Vietnam currently enjoys a $55 billion dollar merchandise trade surplus with the US, but a $1.2 billion services trade deficit. In the report on its Section 301 investigation of Vietnam’s acts, policies, and practices related to currency valuation, the USTR concluded that in their totality, they were “unreasonable and burden or restrict US commerce”, but stopped sort of recommending punitive tariffs.

    On the digital services tax front, the USTR has suspended retaliatory duties on French luxury goods, until further notice, which were scheduled to have taken effect on January 6, 2021. On another note, the USTR’s section 301 investigations on digital services taxes adopted by several other countries, including Italy, India and Turkey, found that these countries had placed “unreasonable or discriminatory and burdens or restricts U.S. commerce” but did not recommend any retaliatory action as yet.

    A new direction for US trade policy?

    On January 20, Joseph R. Biden will be sworn in as the 46th president of the US, and it is widely anticipated that this will herald a change from the outgoing administration’s often chaotic trade policy.

    In a key note speech delivered last week, Katherine Tai, the nominee for United States Trade Representative (USTR), provided some idea of the incoming Biden administration’s trade policy priorities, of which China and the USMCA remain foremost. Notable was that there was no mention in Ms. Tai’s speech of the WTO, including the current impasse on the appointment of a Director-General or the Appellate Body crisis. However, further information on the Biden administration’s trade policy priorities and disposition will be gleaned when the USTR releases its report on the President’s trade agenda, expected sometime in February.

    Without doubt, domestic issues, such as COVID-19 vaccine roll-out and economic recovery, are expected to absorb much of the administration’s policy agenda within the first 100 days. Biden has proposed a $1.9 trillion-dollar stimulus package to combat the COVID-19 pandemic and its economic fall-out. Climate change is also one of the policy priorities and Biden has indicated that the US will rejoin the Paris Climate Agreement.

    Despite the outgoing Trump administration’s limited cooperation with the President-elect’s transition team, fate appears to have dealt Biden some fortune on the legislative front. With both Houses of Congress controlled by Democrats (albeit a slim majority in the case of the Senate), Biden should have some breathing space to get his policy agenda enacted, at least for the first two years of his administration.

    US redesignates Cuba as a State Sponsor of Terrorism

    The outgoing Trump administration’s State Department has redesignated Cuba as a state sponsor of terrorism (SST) for allegedly “repeatedly providing support for acts of international terrorism in granting safe harbor to terrorists”. Cuba had been delisted in 2015 under the Obama Administration as part of that administration’s attempts to normalize US-Cuba relations. However, the US’ illegal and unwarranted economic, commercial and financial embargo on Cuba, which requires Congressional action to remove, remains.

    The redesignation of Cuba as a SST is just the latest of several actions taken over the course of the Trump administration, which has seen a hardening of the US’ policies against the island nation. This included, for example, ending the suspension of Title III of the Helms-Burton Act. With regard to the trade implications of Cuba’s redesignation, which is extraterritorial in application, it penalises persons and countries engaging in certain trade with Cuba, bans defense exports and sales, and imposes certain controls on exports of dual use items.

    In a strong statement condemning this unilateral action taken by the administration, the Caribbean Community (CARICOM) argued that “Cuba’s international conduct does not in any way warrant that designation.” CARICOM also unequivocally condemned it as a “further attack on the country adversely affects its international standing and its social, human and economic development”.

    US President-elect Joe Biden, who had been the VP under the Obama administration and part of the efforts at rapprochement, has been critical of the Trump Administration’s handling of Cuba affairs. It remains to be seen what will be his administration’s approach to Cuba policy.

    Post-Cotonou Agreement Text faces opposition by some EU Member States

    Towards the end of last year, the EU and the Organisation of African, Caribbean and Pacific States (OACPS) announced political agreement on the text of a deal to succeed the Cotonou Agreement which was meant to have expired in December 2020. The post-Cotonou agreement is not a trade deal; trade between the EU and the OACPS is covered by the various Economic Partnership Agreements (EPAs). It is, however, the overarching framework for EU-OACPS relations and, therefore, covers EU-OACP cooperation on a variety of political and social issues.

    A Devex exclusive report released last week revealed that some EU states, particularly Poland and Hungary, expressed reservations with the proposed text, especially on the treatment of issues such as sexual education issues and migration and mobility.

    WTO Developments

    According to Bloomberg WTO reporting, in its final General Council meeting for the year held December 16-17, 2020, WTO members approved the WTO’s budget for 2021 and also decided that a Special General Council meeting will be held earlier this year to determine where and when the next Ministerial Council will be held. However, the US maintained its veto on the selection of Dr. Ngozi Okonjo-Iweala as the new Director-General. It remains to be seen whether the Biden administration will maintain the US’ current objection.

    The African Union, Cuba and African Union’s proposal on strengthening the WTO for promoting development and inclusivity was also one of the agenda items. At the meeting, WTO Members were unable to agree on the proposal advanced by several developing country members on amending the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement to facilitate developing countries’ access to COVID-19 vaccines. This week, the countries proposing the amendment released their responses to WTO Members’ questions on their proposal.

    In other developments, India was the first WTO Member to have its Trade Policy Review for 2021. Costa Rica has requested WTO dispute consultations with Panama regarding measures affecting strawberries, dairy products, meat products, pineapples and bananas.

    Caribbean Community (CARICOM) developments

    From January 1, 2021, Prime Minister of Trinidad & Tobago, the Hon Dr. Keith Rowley, has assumed chairmanship of CARICOM under its six-month rotating chairmanship. He took over from then outgoing chairman, the Hon. Dr. Ralph Gonsalves, Prime Minister of St. Vincent & the Grenadines. Dr. Rowley’s statement as incoming Chair may be viewed here.

    CARICOM has already had a busy start to the year. According to a press release from the Community, the Heads of Government last week held their 13th Special Emergency Meeting of the Conference and under Prime Minister Rowley’s chairmanship. Among other things, they received an update on the Caribbean Economic Recovery and Transformation (CERT) Plan.  

    CARICOM IMPACS and the Small Arms Survey signed a Memorandum of Understanding to Reduce Gun Violence in the Caribbean, including support efforts to improve CARICOM Member States’ to prevent the illicit circulation of small arms and light weapons.

    The CARICOM Committee of Ambassadors also met later last week and among other things, reviewed plans for the Thirty-Second Inter-Sessional Meeting of the Conference of Heads of Government slated for 23-24 February 2021. The Community Council of Ministers also convened to, inter alia, advance preparations for the Intersessional Meeting and to approve the CARICOM Secretariat’s Budget for the financial year 2021-22.

    The Secretariat has since the start of the year already released separate statements condemning the US’ designation of Cuba as a State Sponsor of Terrorism and repudiating any Venezuelan aggression in the escalating Guyana-Venezuela border dispute. The latter statement was in response to a statement released by the Maduro Government on January 7, announcing the creation of a so-called “Territory for the development of the Atlantic Façade” in the disputed Essequibo region of Guyana over which Venezuela has repeatedly claimed as part of its territory. An interesting development is that the Brazilian Government has expressed support for Guyana in the matter.

    In its statement demanding greater equality in COVID-19 vaccine dissemination, CARICOM has called for a global summit in the context of the World Health Organisation’s (WHO) ACT-A Facilitation Council to discuss equitable access and distribution of the COVID-19 vaccines.

    Now you are all caught up! We look forward to continuing to follow these developments and more throughout the course of what promises to be a critical year for trade.

    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.