FRANHENDY Attorneys in association with The Anchor Group & Innovate LSO presents a Webinar on the BREXIT Impact on International Business & Financial Services Sector. Please see further details below:
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FRANHENDY Attorneys in association with The Anchor Group & Innovate LSO presents a Webinar on the BREXIT Impact on International Business & Financial Services Sector. Please see further details below:
Register here.
These are some of the major trade and development headlines and analysis across the Caribbean region and the world for the week of February 28- March 5, 2016 :
Biofuel Manufacturer to invest US$95 million in Jamaica plant by 2017
South Florida Caribbean News: As renewable energy demands increase globally, biofuel developer Benchmark Renewable Energy LLC has officially announced plans to develop a large scale bio-ethanol operation in Jamaica. Read more
Barbados passport tops Caribbean passports in ease of visa-free travel
Caribbean Trade Law & Development: Barbados has the best passport among Caribbean countries. This is according to Henley & Partners’ recently published Visa Restrictions Index 2016 in which Barbados has topped Caribbean countries in the ease of which its citizens/passport holders can cross international borders. Read more
US airlines sign up for commercial flights to Cuba
CNN Money: American Airlines, Alaska Airlines, Delta Air Lines, Southwest Airlines, United Airlines and JetBlue have all submitted applications to the U.S. government to fly commercial flights to Cuba. Read more
T&T facing downgrade by Moody’s Investors
Trinidad Express: For the second time in two years, Trinidad and Tobago is facing a downgrade by international credit ratings agency Moody’s Investors Service. Read more
Strike hits Guyana’s sugar industry
Caribbean360: A day after declaring that Guyana’s first crop sugar target was on track to be met, the Guyana Sugar Corporation (GuySuCo) has been hit by strike action. Read more
Barbados & St. Lucia Negotiating Agreement
CARICOM Today: The Governments of Barbados and St. Lucia have decided to proceed to the negotiation and conclusion of an agreement establishing the maritime boundary between the two States. Officials from the two States met in Barbados from March 1 to 4, 2016 and prepared the draft text of a maritime boundary delimitation agreement. Read more
India files dispute against the US over non-immigrant temporary working visas
WTO: On 3 March 2016, India notified the WTO Secretariat that it has initiated a WTO dispute proceeding against the United States regarding measures imposing increased fees on certain applicants for two categories of non-immigrant temporary working visas into the US, and measures relating to numerical commitments for some visas. Read more
Commodity prices signal market bottom
Financial Times: When news of the highest crude stocks since the Great Depression hit oil traders’ screens on Wednesday, those expecting another rush of sell orders were in for a surprise. Read more
Paraguay becomes second South American nation to ratify the Trade Facilitation Agreement
WTO: Paraguay has become the second South American nation to ratify the WTO’s new Trade Facilitation Agreement (TFA). Eladio Loizaga, Paraguay’s Minister of Foreign Affairs, presented his country’s instrument of acceptance to WTO Deputy Director-General Yi Xiaozhun on 1 March. Read more
EU, Canada Revise Investment Protections in Trade Deal
ICTSD: The EU and Canada announced on Monday that they have revised the investment protection terms in their bilateral trade pact, with the new version now including an investment court system that Brussels is hoping to pursue in other trade agreements – including with the US. Read more
Barclays Africa ‘s trade finance future uncertain
Global Trade Review: Barclays Africa’s trade and export finance future will be in the hands of the bank’s next majority shareholder after Barclays reduces its 62.3% stake to around 20% over the next two to three years. Read more
US Imposes 266 percent tariffs on some Chinese steel imports
Wall Street Journal: The Department of Commerce Tuesday imposed preliminary duties on imports of cold-rolled steel, used to make auto parts, appliances and shipping containers, from seven countries including China, whose steelmakers were slapped with a massive tariff. Read more
US President Obama’s Trade Agenda – 2016
Barbados’ Passport Tops Caribbean Passports in Ease of Visa-free Travel
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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. You can also read more of her commentaries and follow her on Twitter @LicyLaw.
Alicia Nicholls
Jamaica can boast of being ranked as the easiest place to do business among countries of the English-speaking Caribbean, according to the World Bank’s Doing Business Report 2016. Jamaica has an overall rank of 64 out of 189 economies surveyed in the report, improving seven places from a ranking of 71 last year. Jamaica was not only the highest ranked of the English speaking Caribbean countries but was second only to Puerto Rico (57) out of all Caribbean countries. Jamaica was also the only Caribbean economy ranked among the ‘top 10 improvers’ in terms of performance on the Doing Business indicators in 2014/2015.
Now in its 13th year of publication, the 2016 edition of the Report entitled ‘Measuring Regulatory Quality and Efficiency’ ranked 189 economies globally on the ease of doing business based on 10 indicators which measure and benchmark regulations which pertain to local small to medium-size enterprises throughout their life cycle. The indicators were: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Although presented in the economy profiles, labor market regulation indicators are not included in the aggregate ease of doing business ranking this year.
On two of the indicators Jamaica ranked among the top 10 economies globally, namely ‘ease of starting a business’ (9) and ‘getting credit’ (7, tied with Puerto Rico). Its lowest rankings were in regards to ‘trading across borders’ (146), ‘paying taxes’ (146) and ‘registering a property’ (122).
Several reforms introduced by Jamaica during the 2014/2015 period were deemed to have made business easier including, streamlining internal procedures for starting a business, implementing a new workflow for processing building permit applications, by encouraging taxpayers to pay their taxes online, introducing an employment tax credit, just to name a few. However, the introduction of a minimum business tax, the raising of the contribution rate for the national insurance scheme paid by employers and increased rates for stamp duty, the property tax, the property transfer tax and the education tax were viewed less favourably.
The average ranking of Caribbean economies on the ease of doing business was 104. After Jamaica (9), the next three top regional performers were St. Lucia (77), Trinidad & Tobago (88) and Dominica (91). Haiti had the lowest rank among CARICOM countries (182), followed by Grenada (135) and St. Kitts & Nevis (124). Of note is Barbados which slipped 3 places from 116 in last year’s ranking to 119 in the 2016 ranking, making it the fourth lowest ranked CARICOM economy by ease of doing business. In regards to the region as a whole, the Report commended the region’s continued “remarkable progress” on reforms to resolve insolvency, including the new insolvency laws adopted by Jamaica and St. Vincent & the Grenadines.
It should be noted that although no Caribbean country made it into the top 50 economies on the list, the region did well compared to most SIDS globally, with the notable exception of Mauritius which ranked a laudable 32. On average the Caribbean region ranked highest on ‘getting electricity’ (74), ‘starting a business’ (87) and ‘enforcing contracts’ (90), while scoring lowest in ‘registering property’ (144), ‘resolving insolvency’ (114), ‘paying taxes’ (112) and ‘getting credit’ (112). However, individual countries’ performance on each of these indicators showed great variance.
While it has its limitations, the Doing Business Report, a flagship report of the World Bank, remains one of the best comparative measures of countries’ business environments. After all, it touches on many of the indicators which companies consider when seeking to invest in a foreign market. As such these rankings are and should be used by countries across the region as a guide to measure the success of their regulatory reforms, identify strengths and weaknesses of their business environments, and compare their countries’ business environment ranking regionally, globally and over a time period as they compete which each other for global investment inflows. While Jamaica’s over all performance is praiseworthy, what these rankings demonstrate is that there still remains great room for improvement if Caribbean countries are to become globally competitive as choice destinations for doing business.
The full Doing Business 2016: Caribbean States Regional Profile may be accessed here, while the full Doing Business Report 2016 is available 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.
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