Caribbean Trade Law and Development

Tag: trade policy

  • Caribbean Trade & Development News Digest – August 11 -17, 2019

    Caribbean Trade & Development News Digest – August 11 -17, 2019

    Welcome to the Caribbean Trade & Development News Digest for the week of August 11-17, 2019! We are happy to bring you the major trade and development headlines and analysis from across the Caribbean Region and the world from the past week.

    HIGHLIGHTS

    ECLAC’s Foreign Direct Investment in the Latin America and Caribbean Report 2019 revealed that while FDI to the entire LAC region increased by 13.2% in 2018 versus 2017, in the Caribbean, inflows shrank by 11.4% due to lower investment in the Dominican Republic ($2.535 billion dollars, -29%). Read the report here.

    The WTO has also reported that the growth of world merchandise trade volumes is likely to remain weak in the third quarter of 2019 according to that organization’s Goods Trade Barometer, released on 15 August. Read more

    It was announced that the UN will be hosting its first ever Trade Forum on September 9-13, 2019 and will be entitled “SDGs and Climate Change”.

    REGIONAL NEWS

    New Customs Act (2019) to promote Jamaica’s socio-economic development

    Jamaica Observer: Arising from a decision of Cabinet in 2017, the Jamaica Customs Agency (JCA) was tasked with the responsibility to develop a new legislative framework which would further promote business opportunities for Jamaica, particularly in the areas of shipping, logistics and international trade. Read more

    Eel Export Tax Jumps from 42¢ to $16.00 per kg

    Haiti Sentinel: A memorandum from the Ministry of Agriculture, Natural Resources and Rural Development (MARNDR) dated August 12, 2019 stated that “from now on, the export costs of the eels are set at 1,500 gourdes ($15.77 [USD]) per kilogram.” Read more

    Haiti and Dominican Republic Teaming Up against Cocoa Cultivation Threat

    Haiti Sentinel: Haiti and the Dominican Republic, together with representatives of the private sector of both countries, are working to define and apply a common strategy to prevent an eventual occurrence of moniliasis, a disease that attacks cocoa crops. Read more

    Green welcomes mapping of Jamaica’s cultural, creative industries

    Jamaica Observer: Minister of State in the Ministry of Industry, Commerce, Agriculture and Fisheries, Floyd Green, says the Mapping of Cultural and Creative Industries in Jamaica will increase the awareness of the island’s resources and give an accurate valuation of the industries. Read more

    Belize Minister of Investment leads delegation visit to Taiwan

    Breaking Belize News: Minister of State for Investment, Tracy Panton, and an accompanying delegation visited the Republic of China (Taiwan) this week as one of several activities commemorating the 30th anniversary of Belize and Taiwan’s diplomatic relationship. Read more

    Delays at the Port costing Barbados government

    Barbados Today: Goods imported into Barbados take four times as long as they do in neighbouring St Lucia to be cleared, the head of the Port of the Bridgetown has revealed, complaining of the cost of the delay to Government. Read more

    Belize and Republic of China (Taiwan) strengthening ties through new agreement

    Breaking Belize News: Today, the Government of Belize (GOB) and the Government of the Republic of China (Taiwan) (RoC) signed a Letter of Intent (LOI) to engage in the negotiation of a Partial Scope Agreement (PSA) geared towards formalizing trade relations between the two countries. Read more

    The Bahamas’ Ease of doing business committee satisfied with improvements

    The Nassau Guardian: Chair of the National Ease of Doing Business Committee (EODB) Lynn Holowesko said the committee is very pleased with many of the policies introduced in the 2019/2020 budget aimed at improving the business climate in the country, particularly surrounding immigration, conveyance valuations and estate planning. Read more

    Customs Fraud Fighting Initiative Launched in The Bahamas

    The Bahama Journal: The Bahamas Customs Department and Deputy Prime Minister Peter Turnquest introduced the new online portal Click2 Clear, which is designed to protect against customs fraud. Read more

    Guyana working closer with India to build solar energy capacity

    Kaieteur News: The Head of State noted that the relations between the two countries continue to be enhanced by high-level engagements between officials of both states as Guyana would have signed and ratified the Framework Agreement of the International Solar Alliance in January 2018 under his tenure. Read more

    Chastanet Meets With US Delegation

    The Voice: St Lucia Prime Minister met with representatives of the US House of Representatives. Read more

    CBU President calls for preservation of indigenous broadcasters

    RJR: President of the Caribbean Broadcasting Union (CBU), Gary Allen has expressed the need for a sincere commitment to the preservation of indigenous broadcasters in recognition of the integral role they play in social and economic development. Read more

    Sugar Association of the Caribbean wants governments to tax sugar coming outside of CARICOM

    Breaking Belize News: The Sugar Association of the Caribbean (SAC) is calling for Caribbean Community (CARICOM) nations to place Common External Tariffs (CETs) on white sugar imported from outside the region to strengthen the regional market. Read more

    EU releases food for Haiti in response to food crisis

    Jamaica Observer: The European Union (EU) has released €9 million in humanitarian aid to Haiti, in response to the deteriorating food and nutrition situation in the French-speaking Caribbean Community (Caricom) member state. Read more

    T&T Prime Minister envisions one border for region as Carifesta begins

    LoopTT: Carifesta XIV opened on Friday night with Trinidad and Tobago Prime Minister Dr Keith Rowley calling for regional unity. Read more

    Time to Fully Implement CSME

    Trinidad Guardian: If ever there was op­por­tu­ni­ty and ne­ces­si­ty for Cari­com coun­tries to ful­ly im­ple­ment the 30-year old Cari­com Sin­gle Mar­ket and Econ­o­my, the “sub­dued glob­al eco­nom­ic ac­tiv­i­ty and glob­al trade” of the present makes it the right “Time for Ac­tion.” Read more

    Caricom’s Assistant Secretary General, CSME is not a dream

    Trinidad Guardian: The CARI­COM sin­gle mar­ket and econ­o­my (CSME) and CARI­COM is not a fan­ta­sy but a con­crete sit­u­a­tion that is mov­ing for­ward. This is ac­cord­ing to CARI­COM’s As­sis­tant Sec­re­tary-Gen­er­al in the Di­rec­torate for Trade and Eco­nom­ic In­te­gra­tion, Joseph Cox. Read more

    Water Scarcity May Be New Way of Life for Caribbean, St. Kitts and Nevis Minister warns

    CARICOM: Minister of Public Infrastructure, Honourable Ian “Patches” Liburd, says that climate change related challenges such as floods, sea level rise, drought and extreme weather conditions are the new norm for the Caribbean. Read more

    INTERNATIONAL NEWS

    Ottawa announces $1.75-billion compensation for dairy farmers to offset impact of trade deals

    Financial Post: Agriculture minister says Liberals are committed to no longer cede market share in the dairy sector in future international free trade negotiations. Read more

    Australian Government releases list of items the EU wants protected in free trade deal

    News.au: Australian cheesemakers could be dealt a major blow as the European Union targets the naming rights to some of the most popular products. Read more

    Cambodia-European Union trade deal is on the chopping block

    Al Jazeera: Accusations of human rights abuse by the Cambodian government may force the end of a preferential trade agreement. Read more

    Brazil’s Guedes threatens to quit Mercosur if populist opposition wins Argentina election

    Reuters: Brazil will pull out of the Mercosur trade bloc if the opposition party wins Argentina’s presidential elections later this year and closes the economy with protectionist policies, Brazil’s Economy Minister Paulo Guedes said on Thursday. Read more

    US retailers to rely on Vietnam amidst exits from China’s textile industry

    Singapore Business Review: Vietnam’s textile sourcing rose 13% YoY in Q1 2019.Vietnam is expected to benefit the most from plans by US retailers to diversify production to other manufacturing hubs and reduce reliance on China for their textile needs, according to a Fitch Solutions report. Read more

    India’s export basket skews towards services, pulls down trade deficit

    Livemint: India’s export basket is undergoing a silent transformation, a trend that explains why the services sector, which accounts for about half of India’s gross domestic product (GDP), is doing better than other segments of the economy. Read more

    US-China trade war hits Africa’s cobalt and copper mines with 4,400 jobs expected to vanish

    South China Morning Post: The US-China trade war is partly to blame for Anglo-Swiss mining giant Glencore’s move to shut a cobalt mine in the Democratic Republic of Congo and copper mining shafts in Zambia, with the probable loss of about 4,400 jobs, analysts say. Read more

    China Makes Up US Trade War Deficit by Buying from ASEAN, Belt and Road Countries

    China Briefing: China is balancing the US trade slowdown with more bilateral trade with ASEAN and Belt and Road Initiative countries. Read more

    US-UK trade pact ‘won’t pass Congress if Good Friday deal undermined’

    Euronews: There is no chance that a trade agreement between the United States and Britain will pass Congress if Brexit undermines the Good Friday peace accord between Ireland and Northern Ireland, US House Speaker Nancy Pelosi said on Wednesday. Read more

    UK ‘first in line’ for US trade deal, says John Bolton

    BBC: The UK is “first in line” for a trade deal with the US, President Trump’s national security adviser has said. John Bolton said the US supported a no-deal Brexit and added Washington would propose an accelerated series of trade deals. Read more

    Norway Freezes Support For Amazon Fund: EU/Brazil Trade Deal At Risk? – Analysis

    Eurasia Review: Ola Elvestrun, Norway’s environment minister, announced Thursday that it is freezing its contributions to the Amazon Fund, and will no longer be transferring 300 million Norwegian Krone (US$33.2 million) to Brazil. Read more

    Nigerian Traders Seek National Assembly’s Ratification of AfCFTA Agreement

    AllAfrica: The National Association of Nigerian Traders (NANTS) has advised the National Assembly to urgently ratify the African Continental Free Trade Area (AfCFTA) agreement to ensure its speedy implementation. Read more

    Ghana is best entry point for foreign investors to Africa – Trade Minister

    Ghanaweb: Alan Kyerematen, Minister of Trade and Industry, has said that Ghana is the best entry point for foreign investors to do business in Africa because of its investor-friendly policies. Read more

    Sadc launches Business Council

    The Chronicle: Southern African Development Community (Sadc) has officially launched a new Business Council, an over-arching regional private sector platform aimed at increasing collaboration with the public sector and accelerating regional economic development and industrialisation. Read more

    Brexit: judge fast-tracks challenge to stop Johnson forcing no deal

    The Guardian: Hearing in Edinburgh to block suspension of parliament backed by more than 70 MPs. Read more

    EU’s Juncker tells Britain: no-deal Brexit will hurt you the most

    EURACTIV: A no-deal Brexit would hurt Britain more than the rest of Europe no matter how much Prime Minister Boris Johnson’s government pretends otherwise, outgoing European Commission President Jean-Claude Juncker said in remarks published on Saturday (10 August). Read more

    US and Britain discuss trade deal that could take effect on 1 November

    EURACTIV: Britain and the United States are discussing a partial trade accord that could take effect on 1 November, the day after Britain is due to leave the European Union, a senior Trump administration official said on Tuesday (13 August). Read more

    Trump threatens to pull out of WTO

    WTO: At the site of an under-construction petrochemicals plant in Monaco, Pa., for a speech Tuesday that was to be about energy policy, Trump said that the United States has been taken advantage of by WTO member states, especially China, for too long — and it was about to stop. Read more

    ‘India, China No Longer Developing Nations, Will Not Let Them Take Advantage’: Trump Flays WTO Status

    News 18: Earlier in July, Trump asked the WTO to define how it designates developing-country status, a move apparently aimed at singling out countries like China, Turkey and India which are getting lenient treatment under the global trade rules. Read more

    India’s seafood exports to EU to be hit after Vietnam-EU free trade pact

    Hindu Business Line: India’s seafood exports to the European Union is set to drop sharply this year after its biggest competitor Vietnam signed a free trade agreement (FTA) with the European Bloc in July that helps it export products to the EU without any customs duty, according to the Maharashtra region head of the seafood exporters body. Read more

    US-China trade war — The unlikely European winners

    Deutsche Welle: The imminent US tariffs on Chinese goods are expected to throw up some unexpected winners in Europe, a study shows. The gains for the European countries are only likely to increase if China chooses to retaliate. Read more

    European Commission proposes adjustments to the existing safeguards for steel

    EU: The Commission today presented a proposal for adjustments to the existing safeguard measures for steel. Read more

    South Korea hits back at Japan in WW2 dispute

    BBC: South Korea has said it will take Japan off its favoured trade partners’ list. Read more

    WTO NEWS

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  • Caribbean Trade & Development News Digest – May 19-25, 2019

    Caribbean Trade & Development News Digest – May 19-25, 2019

    Welcome to the Caribbean Trade & Development News Digest for the week of May 19-25, 2019! We are happy to bring you the major trade and development headlines and analysis from across the Caribbean Region and the world from the past week.

    THIS WEEK’S TRADE HIGHLIGHTS

    On the Brexit front, the biggest, but not entirely shocking news for the week was the announcement by UK Prime Minister Theresa May that she will be stepping down from office on June 7, 2019. Her full resignation speech may be viewed here.

    The OECD in its latest Economic Outlook noted the impact of the global trade tensions on the global economy. Access the press release and the report here.

    Looking regionally, Trinidad & Tobago this week underwent its 4th WTO Trade Policy Review. Read more here.

    REGIONAL TRADE NEWS

    Barbados approves importation of medical cannabis

    Caribbean News Now: The ministry of health and wellness has approved five medicinal marijuana drugs submitted by the drug formulary committee to be placed on the National Drug Formulary. The drugs will be imported by the Barbados Drug Service. Read more

    Grenada real estate resale changes spur CBI market freehold, leasehold, trust certificates qualify for resale

    Caribbean News Now: The government of Grenada’s re-alignment of the minimum investment requirement for the real estate option (for certain developments) of the country’s citizenship by investment (CBI) program from US$350,000 to US$220,000 has spurred the market, say experts. Read more

    Caribbean leaders will lead on climate resilience – PM Mitchell in CNN opinion

    CARICOM Today: Grenada and other Small Island Developing States are on the front line in the war against climate change. Although hurricanes are no stranger to the Caribbean, the overwhelming scientific evidence of how extreme weather conditions are worsening due to global warming shows that we need to take the signals that our Earth is sending us seriously. Read more

    BELTRAIDE hosts 1st SHEMentors Networking Event

    Breaking Belize News: The Belize Trade and Investment Development Service (BELTRAIDE) through support from the Regional Center of Promotion for MSME (CENPROMYPE) is hosting a women’s mentorship networking event today in Belize city. Read more

    Minister of Trade speaks on expansion of Freezone

    LoveFM: The Corozal Freezone has not really been the “talk of the town,” and, in fact, is in dire need of some TLC. The Freezone has not been forgotten, however, as there are big plans in the making to not only expand but also to revamp it. Minister of Trade, Tracy Taegar-Panton, met with the Freezone’s board of director last Friday, and today, she told us more about what was discussed. Read more

    EU Statement at the 4th Trade Policy Review of Trinidad and Tobago, 22 May 2019

    EU: On behalf of the European Union I would like to welcome Trinidad and Tobago’s Delegation, led by H.E. Senator the Honourable Paula Gopee-Scoon, Minister of Trade and Industry and the Discussant, H.E. Mr. Michael Gaffey (Ireland), for his introductory words. Read more

    Trade and Industry advocates for small economies at the WTO

    MTI: Minister of Trade and Industry, Senator the Honourable Paula Gopee-Scoon expressed a need for the World Trade Organisation (WTO) to adopt a pragmatic approach that takes due cognizance of the unique issues of Small and Vulnerable Economies (SVEs). Read more

    Stop The Wto ‘Scare Tactics’

    Tribune242: Carey Leonard, the former Grand Bahama Port Authority (GBPA) in-house counsel, told Tribune Business there was plentiful evidence from elsewhere in the Caribbean to prove that small businesses and ‘Mom and Pop’ stores “will not be wiped out” upon this country becoming a World Trade Organisation (WTO). Read more

    Exporting Caribbean fashion

    Newsday: Young fashion designers from TT, Grenada, Jamaica, Antigua and Barbuda, Barbados, St Lucia and Tortola – to name a few – have been brought together for the Fashion and Contemporary Design Accelerator, which participants said left them feeling empowered and ready to contribute to building a stronger regional fashion industry. Read more

    UNCTAD holds training in Belize

    LoveFM: The United Nations Conference on Trade and Development, UNCTAD, is in the country holding a one-week workshop to assist with the implementation of the Trade Facilitation Agreement. The Trade Facilitation Agreement will provide for a smoother and more efficient movement of goods. Read more

    Jamaica representing the Caribbean in global food fraud fight

    Loop Jamaica: Jamaica is the only Caribbean country to be included in an International Atomic Energy Agency (IAEA) five-year research project that is geared at assisting countries in combatting fraud in high-value food products, such as premium honey, coffee and speciality rice varieties. Read more

    Over 42,000 Caribbean nationals overstayed their non-immigrant US visas

    Caribbean News Now: Acting Homeland Secretary, Kevin Mc Aleenan revealed that over 42,000 Caribbean nationals from across the region overstayed their non-immigrant visas and stayed in the US between October 2017 and September 2018. This figure is contained in the US Department of Homeland Security’s (DSH) fiscal year 2018 entry/exit overstay report. Read more

    US Senators submit act to facilitate agricultural exports to Cuba

    Caribbean News Now: US Senators John Boozman and Michael Bennet submitted a draft bill to remove restrictions to private financing for US agricultural exports to Cuba. Read more

    Building Bonds

    Barbados Advocate: The Association of Barbados-China Friendship (ABCF) has been launched in an effort to create and strengthen the bond between Chinese and Barbadians. During the launch, which took place at the Hilton Resort Barbados on Thursday night, President of the ABCF Dr. Delisle Worrell noted that it is a “people-centred organisation with an emphasis on facilitating personal contacts between Barbadians and Chinese”. Read more

    Region lags global shipping trends

    Barbados Today: Barbados and the Caribbean appear to be lagging behind most of the world in using the global postal system’s Express Mail Service (EMS) to boost exports through e-commerce and small package deliveries, experts said here today. Read more

    INTERNATIONAL NEWS

    Rare Earths, the U.S.-China Trade War and Your Phone

    Washington Post: U.S. President Donald Trump’s threat to cut off the supply of chips and processors to Huawei Technologies Co. is hitting China’s biggest tech company where it hurts – its dependence on other nations for the semiconductors and software in smartphones and networking gear. So when Chinese President Xi Jinping showed up days later at a rare earths processing plant, many observers saw a message in the visit: the U.S. has its own tech vulnerabilities, too. Read more

    EU-ACP Pleased With Negotiations For Successor To Cotonou Agreement

    Jamaica Gleaner: The European Union says a new accord to replace the Cotonou Agreement that currently governs its relationship with the African, Caribbean and Pacific (ACP) Group is “taking shape”. Read more

    79-Nation Group’s Head Explains Vital Tasks Ahead Until ACP-EU Accord Expires

    IndepthNews: As talks progress on future relations between 79 African, Caribbean and Pacific (ACP) Group of States and the European Union in the aftermath of historic Cotonou Agreement due to expire in February 2020, Secretary-General Dr. Patrick Ignatius Gomes has spelt out vital tasks ahead. Read more

    Nigeria to Join Africa Free Trade Zone, Trade Minister Says

    Bloomberg: Nigeria will sign the Africa Continental Free Trade Agreement as soon as President Muhammadu Buhari approves an impact-assessment report he asked for, the country’s trade minister said. Read more

    The Impact of US-China Trade Tensions

    IMF Blog: US-China trade tensions have negatively affected consumers as well as many producers in both countries. The tariffs have reduced trade between the US and China, but the bilateral trade deficit remains broadly unchanged. Read more

    National Consultative Forum On the African Continental Free Trade Area – Experts to Discuss Corruption and the Challenge of Economic Transformation in Southern Africa

    All Africa: The Economic Commission for Africa Office for Southern Africa (ECA-SA) in partnership with the Ministry of Commerce, Trade and Industry, African Union Commission (AUC), are co-organising a National Consultative Forum; “National Consultative Forum on the African continental free trade area: Opportunities and Challenges for Zambia” from 23rd – 24th May 2019, at Mulungushi Conference in Lusaka, Zambia. Read more

    EU WARNED: Brussels told to be READY for no deal Brexit – ‘Britain will do just fine!’

    Express: THE European Union has been warned if it does not renegotiate the Brexit deal then Britain will instead “thrive and prosper” under a no deal scenario, political commentator Nile Gardiner has warned. Read more

    The world’s biggest shipping company warns Trump’s China tariffs are hammering global trade

    Business Insider: AP Moller-Maersk warned the recent escalation of the trade war could push growth in global container trade to the lower end of its forecast of 1% to 3% for 2019. Read more

    What next for Brexit Britain as May announces resignation as PM?

    Al Jazeera: The country’s future and whether or not it will leave the EU are thrown into further uncertainty after May resigns. Read more

    One-third of EU firms hit hard by US-China trade war

    Deutsche Welle: The ongoing trade tensions between the world’s two largest economies and tit-for-tat tariffs have adversely affected the fortunes of many European companies in China, a new survey reveals. The outlook remains gloomy. Read more

    EU trade tsar on US: ‘We hope we don’t impose tariffs on each other’

    Euronews: As EU-US trade ties remain shaky under the constant threat of tit-for-tat tariffs and rumblings of a trade war, Euronews sat down with EU trade tsar Cecilia Malmstrom to talk about the state of play. Read more

    EU, China, Thailand seek to join WTO consultation over India’s ICT products tariff
    Business Today: According to a communication of EU, China, and Thailand to the World Trade Organisation (WTO), these countries claimed that they have a substantial interest in the trade of information and communication technology (ICT) goods and in joining the consultation process. Read more

    US-China trade war hurts workers with lower salaries the most, WTO director says

    CNBC: An intensifying trade war between the U.S. and China is negatively impacting every country in the world, according to the director-general of the World Trade Organization (WTO), with workers earning lower salaries most likely to be hit the hardest. Read more

    Dispute over WTO reforms could paralyse it, says Canada
    Business Live: Absence of US and China at the latest round of talks to renew the world trade body dashes hopes of urgent action. Read more

    India on US watch list for currency practices

    Economic Times: The US has added India to its monitoring list for currency practices and macroeconomic policies, alleging undervaluation in its currency. Read more

    China’s coming slowdown opens doors to expanding African trade with India

    The Africa Report: Charles Robertson, chief economist at Renaissance Capital, argues that slower Chinese growth will not necessarily be detrimental for Africa, as Indian trade and investment is likely to increase. Indian demand for raw materials is likely to benefit the Democratic Republic of Congo (DRC), Guinea and Zambia, he says. Read more

    India reports trade deficit with 11 RCEP members in FY 2018-19

    Business Standard: The trade gap with Brunei, Japan, and Malaysia has increased to $0.5 billion, $7.1 billion and $3.8 billion, respectively in the last fiscal. It was $0.4 billion, $6.2 billion and $3.3 billion in 2017. Read more

    Malaysia to strengthen trade, investment ties with Brazil

    Malay Mail: Malaysia and Brazil will continue to focus on expanding bilateral trade and investment ties.This is alongside the possibility of having a free trade agreement between Malaysia and Mercosur, an economic and political bloc comprising Argentina, Brazil, Paraguay and Uruguay. Read more

    Canada, U.S. reach deal to continue pork trade if swine fever is detected

    Global News: In the event of an outbreak of African swine fever in Canada or the U.S., pork products from disease-free areas will still be allowed to flow across the border.An agreement reached between the two countries is intended to limit the economic impact of a possible outbreak of ASF, an illness that has led to the deaths of a million pigs in China but has not been detected in Canada or the U.S. Read more

    Mexico’s Lopez Obrador says confident USMCA will be ratified

    Reuters: Mexico’s President Andres Manuel Lopez Obrador said on Thursday he was confident the United States-Mexico-Canada-Agreement would be ratified, increasing trade in the North American region. Read more

    Turkey halves tariffs on 22 US imports to reciprocate Washington move

    Daily Sabah: Turkey has decided to reduce additional duties on some U.S. imports in response to a similar United States move to halve tariffs on Turkish steel imports, the trade minister said on Wednesday. Read more

    Chinese AI firms hunker down as reports indicate they are next on US export hit list

    The Edge Markets: iFlytek executive Hu Yu may have spoken too soon, when he made a positive comparison of his company to Huawei Technologies during a new product launch in Shanghai earlier this week. Read more

    WTO NEWS

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  • Accelerating Gender Mainstreaming in CARICOM Trade Policy

    Accelerating Gender Mainstreaming in CARICOM Trade Policy

    Dr. Jan Yves Remy and Alicia Nicholls

    While we can all agree that trade offers the potential for inclusive and sustainable growth in small Caribbean states, deployment of a successful trade strategy requires recognition and ultimately monitoring of its differentiated impacts on women and men. Despite immense strides made in empowering women, they remain under-represented in global trade and are disproportionately affected by international competition and technological changes.

    On the occasion of International Women’s Day 2019, we highlight the link between trade and gender and make the case that accelerating gender mainstreaming in trade policies of CARICOM Member States promotes not just gender equality, but inclusive growth as well.

    Gender Equality and Development Nexus

    Under the United Nations Sustainable Development Goal 5, the international community has committed to achieving gender equality and empowering all women and girls by 2030. Not only is enhancing women’s equality and economic empowerment a human right, but the removal of legal and other barriers to women’s economic inclusion has a multiplier effect in the economy due to women’s dual role as caregivers and economic actors. World Bank research has found that women invest up to 90% of their income in their families, with positive spill-overs for their communities and the economy. A recent Mckinsey Global Institute Report found that advancing women’s equality could add $12 trillion to global GDP by 2025.

    Despite this compelling data, and although they account for half of the world’s working age population, women remain under-represented in international trade on account of their unequal access to factors of production and inbuilt gender biases. A recently released World Bank Report entitled “Women Business and the Law 2019” found that out of 187 countries globally, women had equal legal rights to men in only 6.

    Gender and Trade Nexus

    Trade policies are not necessarily gender neutral: they impact women and men differently at both the country and sectoral levels. Recognizing this, a policy of “gender mainstreaming” aims to promote gender equality by integrating gender considerations in the preparation, design, implementation and monitoring of policies.

    Trade creates opportunities for women’s empowerment by creating both employment and business opportunities, but it can also alienate them. For example, while e-commerce can improve women’s access to foreign markets, increased competition through trade liberalisation can displace and marginalize women in agriculture. Because they are both caregivers and economic actors, women often have less time on average than men to engage in entrepreneurial and exporting activities. At the same time, their access to market information is often lower due to fewer networks and lower education levels. Knowing this, ex ante gender-based analysis can assist policymakers to avoid negative gender impacts of policies that they implement.

    A number of international institutions have developed programmes to increase women’s inclusion in trade. For instance, the International Trade Centre (ITC) has created a She Trades electronic platform; and the World Trade Organization (WTO), at its Buenos Aires Ministerial Conference in 2017, adopted a Joint Declaration on Trade and Women’s Economic Empowerment. Regionally, the Caribbean Export Development Agency’s Women Empowered Through Export (We-Xport) initiative supports Caribbean businesswomen looking to export for the first time or to increase their goods and services exports.

    But there is still lots to do in CARICOM. Despite the fact that CARICOM Member States are signatory to a plethora of international treaties aimed at the empowerment of women, their trade policies are to a large extent being enacted and maintained in the absence of evidence and data that is timely, comparable and sex-disaggregated. Mainstreaming gender into CARICOM countries’ trade and development policy-making would help to ensure that initiatives under the CARICOM Single Market and Economy (CSME) and CARICOM’s trade negotiations with third parties are gender-sensitive. It is, therefore, a welcome development that Belize’s recently launched National Trade Policy (2019-2030) incorporates gender equality as a cross-cutting issue. Another praiseworthy development is that in February 2019, it was announced that national consultations were underway on a draft CARICOM Regional Gender Equality Strategy to advance gender equality and equity and the empowerment of women and girls in each of the fifteen CARICOM Member States.

    How can CARICOM Member States promote Gender Mainstreaming in Trade?

    Based on the above, we recommend the following ways in which CARICOM’s trade policies may be more gender-sensitive:

    • Mainstreaming gender in the design and implementation of National Trade Policies. Belize’s new National Trade Policy can serve as a good model;
    • Gender sensitivity training of key technocrats charged with formulating, implementing and monitoring trade and economic policies and their gendered impact. Gender-based policy making and monitoring will require greater resource allocation to the agencies charged with gender affairs;
    • Enlisting the assistance of civil society and the private sector in designing trade policies and measuring their impact;
    • Increasing specific programmes in Member States’ aimed a promoting women’s entrepreneurship and export activities through capacity-building, improving their access to finance and to trade information;
    • Promoting greater inclusion of gender provisions in CARICOM’s free trade agreements (FTAs). The most far-reaching of these FTAs like the Canada-Chile and Chile-Uruguay FTAs, contain dedicated trade and gender chapters. CARICOM’s trade agreements, however, are generally sparse on gender provisions;
    • Continued lobbying of regional policy makers to honour the commitments they have made both regionally and internationally to promote gender equality, particularly their reporting and gender mainstreaming commitments.

    International Aid for Trade programming is becoming increasingly gender-focused. With foreign donors increasingly making gender an important plank of their aid strategies, CARICOM governments seeking development assistance are increasingly under pressure to include gender considerations. However, gender mainstreaming is not just about ensuring CARICOM Member States meet their international treaty obligations or increase their access donor to funding. When properly implemented, gender-sensitive trade policies promote women’s empowerment, eradicate poverty and foster inclusive growth.

    Dr. Jan Yves Remy is the Deputy Director of the University of the West Indies, Cave Hill’s Shridath Ramphal Centre for International Trade Law, Policy & Services. Alicia Nicholls is an international trade and development consultant and contributing author to the UWI SRC’s Trading Thoughts column.

  • Trade Takeaways from Trump’s Second State of the Union Address

    Trade Takeaways from Trump’s Second State of the Union Address

    Photo source: Pixabay

    Alicia Nicholls

    Last night (February 5, 2019), United States (US) President, Donald J. Trump, delivered his second State of the Union (SOTU) address before a joint session of the US Congress. The President highlighted his administration’s progress on his campaign promises, including on immigration, trade, tax policy, infrastructure and national security. This article takes a brief look at the trade takeaways from the SOTU.

    The Context

    President Trump came to office with the promise, inter alia, of effecting a seismic shift in US trade policy. America, Trump argued, was being taken advantage of by other countries, while “unfair” trade deals were leading to the outsourcing of American jobs to the detriment of American workers and the American economy.

    An underlying theme of President Trump’s SOTU address last night was that of “promises made, promises kept”. The President reminded viewers of his campaign promise “to defend American jobs and demand fair trade for American workers”, while highlighting the achievements made thus far.

    Much of President Trump’s trade policy actions have been done through executive actions utilising legislation like the Trade Act which empower the President to take certain trade-related action, such as raising tariffs. Indeed, in just two years, the Trump presidency has heralded a decidedly mercantilist turn in US trade policy, marked by increased unilateral action (even against traditional US allies, such as Canada and the EU), the US’ withdrawal from the Trans-Pacific Partnership Agreement, the renegotiation of the tripartite North American Free Trade Agreement (NAFTA), more aggressive action against China, coupled with threats of withdrawal from the WTO and blockage of appointments/re-appointments of WTO Appellate Body members.

    Main Trade Takeaways from SOTU

    However, in his address, President Trump focused exclusively on trade policy achievements regarding increased enforcement of US trade laws and the renegotiation of NAFTA. Below are the takeaways:

    US-China Trading Relations

    China has been the principal target of President Trump’s trade policy actions, leading to an escalation in trade tensions between Washington and Beijing which, according to the major multilateral institutions, are already negatively impacting global trade flows and dampening the outlook for the global economy.

    In 2018, the Trump administration imposed tariffs on $250 billion worth of Chinese goods, to which Beijing retaliated with tariffs on $110 billion worth of US goods. Although those parties threatened to impose further tariffs, they made a truce on the sidelines of the G20 Summit in December 2018 not to impose any further tariffs for a 90-day period while trade talks resumed between them. Since the start of the truce, two sets of face-to-face trade talks have been held between the two economic behemoths.

    While President Trump proudly boasted that America is “now making it clear to China that after years of targeting our industries, and stealing our intellectual property, the theft of American jobs and wealth has come to an end”, he further noted that he and Chinese President Xi were working on a new trade deal. The President, however, reiterated that any US-China trade deal “must include real, structural change to end unfair trade practices, reduce our chronic trade deficit, and protect American jobs”.

    From NAFTA to USMCA

    In his SOTU address, President Trump noted that “to build on our incredible economic success, one priority is paramount – reversing decades of calamitous trade policies”. To this effect, one of the President’s major trade policy campaign promises was the renegotiation of NAFTA, an agreement which he derided as a “historic blunder” in his SOTU address.

    This renegotiation was accomplished last year with the signing of a replacement agreement called the US-Mexico-Canada (USMCA) Agreement. Some of the major changes include the requirement that 75 percent (up from 62.5 percent under NAFTA) of an automobile’s contents needs to be made in North America for it to qualify for duty-free treatment, greater access to the Canadian dairy market for US farmers, an extension of the terms of copyright protection, stronger labour provisions, a sunset clause and provision for review of the Agreement every six years.

    The USMCA was signed in November 2018, but is awaiting ratification by the three parties. However, some Democrats have raised issues with the Agreement. President Trump encouraged Congress to ratify the USMCA, in order to “bring back our manufacturing jobs in even greater numbers, expand American agriculture, protect intellectual property, and ensure that more cars are proudly stamped with our four beautiful words: “Made in the USA.”

    United States Reciprocal Trade Bill

    President Trump also made a strong appeal to Congress to pass the United States Reciprocal Trade Bill (HR 764), “so that if another country places an unfair tariff on an American product, we can charge them the exact same tariff on the same product that they sell to us”.

    The US Reciprocal Trade Bill, was introduced in the House on January 24, 2019, by Republican representative from Wisconsin’s 7th District, Sean Duffy (R-WI), who is currently the ranking Member of the Financial Services Subcommittee on Housing & Insurance.

    Inter alia, the Bill provides that if the President determines that the rate of duty or non-tariff barriers imposed by a foreign country on a particular US good is “significantly higher ” than the rate of duty or non-tariff barriers imposed by the US on that same good imported from that country, the President is empowered to take several actions, including imposing a rate of duty on imports of that good that is equal to that imposed by that country.

    The Bill currently has 19 co-sponsors. According to Representative Duffy’s press release, the proposed legislation would give the President “more flexibility in responding to foreign tariffs on U.S. products” and “the tools necessary to pressure other nations to lower their tariffs and stop taking advantage of America”.

    If passed, the Bill will, however, likely be challenged by affected countries through the WTO’s dispute settlement system. However, it should be noted that its successful passage by Congress is not guaranteed. Firstly, the Democrats are the majority in the House of Representatives since January 2019, some of whom have openly criticised Trump’s protectionist trade policies. Secondly, and more importantly, some members of Congress, including some Republicans, are already proposing bi-partisan legislation to limit the President’s authority to unilaterally impose trade restrictions for national security purposes.

    In the House, for example, Representative Mike Gallagher (R-Wi-8) introduced H.R.940 to amend the Trade Expansion Act of 1962 to impose limitations on the authority of the President to adjust imports that are determined to threaten to impair national security, and for other purposes. Meanwhile, in the Senate, for example, Senator Mike Lee (R-UT)  introduced the Global Trade Accountability Act (S 177), which would amend the Trade Act of 1974 to require congressional approval of unilateral trade action. The House version (HR 723) was introduced by Representative Warren Davidson (R-OH-8).

    However, the passage of any of these proposed bills limiting the President’s trade policy powers are not a sure bet either. Even if passed by both Congressional chambers, the bill would almost certainly be vetoed by the President, and would require a two-thirds majority in each house to override a presidential veto, which is not an easy feat.

    The big takeaway

    The big takeaway is that President Trump is convinced that his mercantilist trade policy is delivering for the American people, a fact he evidences by the increase in jobs and economic growth. Indeed, a fact sheet  was released by the White House on the same day highlighting the President’s trade policy achievements.

    However, his trade policies have come at the cost of increased trade tensions, alienating traditional US allies and creating an impending crisis in the WTO’s Appellate Body whose membership is now down to three – the minimum number of members required to hear an appeal.

    Several WTO members have already initiated complaints against certain of President Trump’s trade measures, and/or have raised issues during the US’ most recent Trade Policy Review (TPR).

    However, barring some Congressional limit on Presidential trade policy powers, the current trade policy approach is likely to continue for the remainder of the Trump Presidency.

    The full transcript of the President’s SOTU Address may be viewed here.

    Alicia Nicholls, B.Sc., M.Sc., LL.B., is an international trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @LicyLaw.