Caribbean Trade Law and Development

Tag: trade

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

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

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

    WHAT’S HAPPENED IN TRADE SINCE DECEMBER 2020?

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

    REGIONAL NEWS

    Re-examining Caribbean-Chinese relations

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

    Minister aiming to expand reach of Jamaica Blue Mountain Coffee

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

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

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

    Royal Caribbean will offer cruises from Barbados in December 2021

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

    Guyana signs on to new trade, investment agreement with UK

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

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

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

    Guyana, US security pact to reel in illegal fishing

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

    CARICOM could source COVID-19 vaccines from the African Union

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

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

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

    Trinidad & Tobago manufacturers support trade ministry action on cement industry

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

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

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

    Trade Ministry lists support for manufacturing

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

    Mondello: TT, US can start new chapter under Biden

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

    New CARICOM manufacturing body gets to work

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

    BVI loses access to EU funding

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

    Belize exports 16,000 lbs of chicken to CARICOM

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

    INTERNATIONAL NEWS

    What Does 2021 Hold for Global Trade?

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

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

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

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

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

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

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

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

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

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

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

    Keep tariffs on China, says outgoing US trade chief

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

    US suspends tariffs against French goods over digital service tax

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

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

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

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

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

    Canada’s international trade slows in weakening recovery

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

    After months of COVID delays, African free trade bloc launches

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

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

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

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

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

    Malawi deposits AfCFTA ratification to AU

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

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

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

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

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

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

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

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

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

    20% of UK chemicals registrations face revocation after Brexit

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

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

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

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

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

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

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

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

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

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

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

    A new administration: US sanctions trends for 2021

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

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

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

    Deadlines and Decisions for American Trade in 2021

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

    After Trump: What Will Biden Do on Trade?

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

    Creative economy to have its year in the sun in 2021

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

    STRAIGHT FROM THE WTO

    NEW ON THE CTLD BLOG

    The Caribbean Trade & Development Digest is a weekly trade news digest produced and published by the Caribbean Trade Law & Development Blog. Liked this issue? To read past issues, please visit here. To receive these mailings directly to your inbox, please subscribe to our Blog below:

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

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

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

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

    THIS WEEK’S HIGHLIGHTS

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

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

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

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

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

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

    REGIONAL NEWS

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

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

    SIB report on Belize’s economic performance

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

    Dominica’s DCPS Vows To Fight On Over Caricom Soap

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

    Trade policies top regional manufacturers’ agenda

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

    Pledge for Bajan exports to bounce back

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

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

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

    Inclusive tourism on the cards in Barbados

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

    UK to compensate victims of immigration scandal from the Caribbean

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

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

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

    INTERNATIONAL NEWS

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

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

    Trump trade chief wants WTO leadership race reopened

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

    Legislation for the UK’s independent tariff policy

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

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

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

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

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

    UK and Mexico sign trade deal

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

    UK and US in talks over mini trade deal

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

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

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

    WTO Members Delay Agreement on Fisheries Subsidies to 2021

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

    Ban on food aid restrictions blocked at WTO

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

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

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

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

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

    Mercosur debates on revising Common External Tariff

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

    Argentina assumes temporary presidency of MERCOSUR

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

    Argentina: Mercosur will address EU environment concerns

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

    Uruguayan president warns of post-pandemic protectionism at Mercosur Summit

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

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

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

    STRAIGHT FROM THE WTO

    NEW ON THE CTLD BLOG

    The Caribbean Trade & Development Digest is a weekly trade news digest produced and published by the Caribbean Trade Law & Development Blog. Liked this issue? To read past issues, please visit here. To receive these mailings directly to your inbox, please subscribe to our Blog below:

  • Caribbean Trade & Development News Digest – November 22-28, 2020

    Caribbean Trade & Development News Digest – November 22-28, 2020

    Welcome to the Caribbean Trade & Development News Digest for the week of November 22-28, 2020! We are pleased to bring you the major trade and development news headlines and analysis from across the Caribbean Region and the world from the past week.

    On November 30 each year Barbados celebrates its independence. We wish fellow readers in Barbados and all Barbadians both here and in the diaspora Happy 54th Anniversary of Independence!

    THIS WEEK’S HIGHLIGHTS

    This week, the World Trade Organization (WTO) released its World Trade Report 2020 with a focus on how governments use policies to foster digital innovation. Read the press release and access the full report here.

    While China and Australia are among the signatories to the recently signed RCEP, that has not slowed simmering diplomatic and trade tensions between the two Asia-Pacific nations as China slapped tariffs on wine imports from Australia. Read more in this Reuters story here.

    As in-person Brexit negotiations continued this week, there is some skepticism on whether at this late stage a deal is even possible before the expiration of the transition period. Read this commentary by Euronews here.

    Looking regionally, the Caricom Council on Trade and Economic Development (COTED) held a virtual meeting this week on November 27-28, 2020 .

    A Caribbean Manufacturers Association (CMA) was launched this week. Read more . The UWI, CDB and EU have collaborated to produce the first State of the Caribbean Climate Report. Access the full report here.

    At Barbados’ Virtual ‘We Gathering’ Independence event, which brought together persons from across the island and the world, Minister in the Ministry of Foreign Affairs, Jerome Walcott noted that the country will be opening three embassies in African countries next year which will have commercial attaches, as well as deepening its engagement with the Barbadian diaspora by establishing a diaspora policy and a national diaspora registry.

    REGIONAL NEWS

    Cubans Seek Alternatives after Western Union Closes

    Havana Times: Cubans are looking for new alternatives so that remittances can continue to flow from the US to Cuba via cryptocurrencies or debit cards, after Western Union closed its offices on Monday. This has been one of the hardest blows for families on both sides of the Florida Strait, reported Reuters. Read more

    Because of Trump sanctions, Western Union remittances come to an end in Cuba
    NBC: “The problem is not the closure of Western Union, but that Western Union is practically the only U.S.-to-Cuba provider of remittance payments,” said a Washington, D.C-based analyst. Read more

    New CARICOM Manufacturers’ Association formed

    Loop: Six manufacturing associations across the Caribbean have agreed to join forces under a new CARICOM Manufacturers’ Association (CMA). Read more

    CARICOM congratulates Barbados on 54th Independence Anniversary

    BarbadosToday: The Caribbean Community (CARICOM) has extended congratulations to the Government and People of Barbados on its 54th Anniversary of Independence. Read more

    Blowout Of CARICOM COVID-19 Travel Bubble – Regional Heads Squabble Over Country Classification

    Jamaica Gleaner: The contents of a recent letter from Gaston Browne, the Antigua and Barbuda prime minister, to his Barbados counterpart, Mia Mottley, appears to reflect both frustration in St John’s and long-running difficulty among Caribbean Community (CARICOM) leaders to agree and implement common policies. Read more

    Barbados and Scotland launch three-day cyber event

    BarbadosToday: The first-ever virtual trade mission between Barbados and Scotland was launched today. The two countries, determined that the global COVID-19 pandemic will not be a deterrent, are staging the three-day event to showcase products and services from both territories. Read more

    Protect our share

    Barbados Today: Caribbean Community (CARICOM)-based manufacturers have been urged to scale up their production capacity, even amid the COVID-19 pandemic, or risk losing important market share to outsiders. Read more

    New measurements legislation coming

    Barbados Today: Minister of Energy, Small Business and Entrepreneurship Kerrie Symmonds, speaking on Monday during a stakeholders’ sensitisation forum on the Bill via Zoom, said the new legislation is an important step to modernising the economy and enhancing the island’s export potential. Read more

    Gopee-Scoon: Let Caribbean pool its production resources

    Newsday: Trade Minister Paula Gopee-Scoon urged manufacturers across the Caribbean to pool resources for their mutual benefit, addressing the virtual signing ceremony of the Caribbean Manufacturers Association (CMA) on Wednesday. Read more

    Cuba and Jamaica strengthen trade ties in medical field

    Prensa Latina: Cuban and Jamaican companies from the medical sector held an entrepreneurial forum on Friday, under the auspices of the Chamber of Commerce of Cuba (CCC) and the Jamaican Embassy in Havana. Read more

    JSWIFT Exceeding Turnaround Time For Processing Trade Documents

    JIS: The Jamaica Single Window for Trade (JSWIFT) has been doing same day processing for approximately 50 to 70 per cent of documents submitted daily, thereby exceeding expectations of the online portal. Read more

    Jamaican businesses invited to participate in US virtual trade mission and networking event

    Jamaica Observer: The American Chamber of Commerce of Jamaica (AMCHAM) is partnering with the US Department of Commerce’s Commercial Service and the US Embassy in Jamaica to host a Caribbean region virtual trade mission on December 1. Read more

    Expanding and developing the Guyana economy

    Stabroek: When oil and gas production fields in Guyana are fully operational, the fossil energy sector is likely to be the predominant source of national economic activity through its direct contribution to foreign exchange earnings, government fiscal revenues, employment and labour incomes, and local purchases of goods and services. Read more

    Despite major oil discoveries World Bank still lists Guyana among poorest in South America

    Stabroek: Guyana’s multiple major oil discoveries beginning in May 2015 may have set the country on the path to realising a level of wealth not before seen in the Caribbean, but a recent World Bank Review still regards the country as being “one of the poorest in South America.” Read more

    Guyana, Suriname to deepen economic and social cooperation

    Jamaica Observer: President Irfaan Ali has pledged to deepen the bond between Guyana and neighbouring Suriname. Read more

    Guyana & Suriname sign MoU to bridge the Corentyne River

    LoopNewsCaribbean: Trade between Guyana and Suriname will soon have a new route as both governments finalised and signed a Memorandum of Understanding yesterday to construct a bridge over the Corentyne River. Read more

    Belize to benefit from new tax breaks in Chetumal

    Breaking Belize News: Тhе bоrdеrѕ аrе сurrеntlу сlоѕеd, but whеn thеу rеореn, Веlіzеаnѕ ѕhорріng іn Сhеtumаl, Quіntаnа Rоо, Мехісо wіll bеnеfіt frоm fuеl аnd tах brеаkѕ tо bе іntrоduсеd аnd ехраndеd аlоng thе ѕоuthеrn frоntіеr аѕ wеll аѕ thе nоrth, ассоrdіng tо Rеutеrѕ.  Read more

    Over 600 heads of cattle going to Mexico in December

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    STRAIGHT FROM THE WTO

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  • RCEP and Caribbean-Asian Economic Relations

    RCEP and Caribbean-Asian Economic Relations

    Photo credit: Pixabay

    Alicia Nicholls

    On November 15, 2020, fifteen Asia-Pacific countries signed the Regional Comprehensive Economic Partnership (RCEP) agreement on the sidelines of the virtually held 37th Association of South East Asian Nations (ASEAN) summit. RCEP is the first mega-regional trade agreement (MRTA) to be concluded since the Trans-Pacific Partnership (TPP) was signed in 2016. As readers would recall, the TPP was replaced by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) after the United States (US) under the Trump Administration withdrew, leaving the remaining parties scrambling to salvage the agreement. Negotiations on the other long awaited MRTA, the Trans-Atlantic Trade and Investment Partnership (TTIP) between the US and EU, ended abruptly in 2016 without a deal.

    As the centre of global economic gravity shifts eastward (and not for the first time in history), countries around the world are considering what implications and opportunities this new agreement might pose for their political, strategic and economic relations with China and the other countries in the fast-growing Asia-Pacific region.

    This article offers some preliminary thoughts on the RCEP Agreement and the small but growing Caribbean-Asian economic relationship. It argues, inter alia, that the RCEP agreement presents another reason why Caribbean Community (CARICOM) Member States should not discount Asia-Pacific countries as partners for trade, foreign direct investment (FDI) and other economic cooperation as we diversify our economies as part of COVID-19 economic recovery efforts.

    What is RCEP?

    RCEP negotiations were launched in Phnom Penh, Cambodia eight years ago on November 20, 2012, with the stated objectives, inter alia, of broadening and deepening integration to create employment, raise living standards and improve the welfare of the peoples in the region. Though not particularly ambitious in the depth of its obligations, the 20-chapter RCEP text covers trade in goods, services and investment with an up to twenty year window for liberalization.

    RCEP at a glance

    Population (market size)2.2 billion
    % of world populationAlmost 30%
    Combined GDP (US$)26.2 trillion
    % of world GDPAbout 30%
    % of global trade28%
    Source: Figures taken from RCEP Joint Leaders’ Statement of November 15, 2020. Accessible here: https://asean.org/joint-leaders-statement-regional-comprehensive-economic-partnership-rcep-2/.

    RCEP creates the world’s largest trading bloc. It comprises the 10 ASEAN Member States which are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, plus five other key Asia-Pacific powerhouses: Australia, China, Japan, South Korea and New Zealand. It will enter into force once at least six ASEAN Member States and three signatory States other than ASEAN Member States have ratified the agreement.

    RCEP is, however, missing one big player, India, which withdrew from the RCEP negotiations in November 2019 over fears of its market being flooded with cheaper Chinese goods. Cognizant of the strategic importance India’s accession would bring both politically and economically to the agreement, RCEP parties released a Ministers’ Declaration on India’s Participation in the RCEP, leaving the door open for that country to accede at a later date if it so chooses.

    Much ink has been spilt on the geopolitical implications of RCEP which is widely seen in the west as a China-backed rival to the Trans-Pacific Partnership (TPP) which had been spearheaded by the US under the Obama administration, but from which President Trump withdrew upon assuming office. China was not part of the TPP negotiations and analysts opine that RCEP will help to further cement China’s influence as an economic power in the Asia-Pacific region.

    Taiwan (Republic of China), which is still recognized by five Caribbean States (Belize, Haiti, St. Kitts & Nevis, St. Lucia and St. Vincent & the Grenadines), is also not a part of the agreement. Taipei, has to some extent, vocalized concerns about what its exclusion could mean for its exports to those countries in the agreement.

    Caribbean-Asia/Pacific relations

    CARICOM countries’ overall trade with the Asia-Pacific remains small and is mainly with China, and less so Japan and South Korea. The region lacks free trade agreements (FTAs) with any Asian or Pacific countries. Guyana’s trade agreement with China signed September 2001 is more aptly described as an economic cooperation agreement due to its predominantly best endeavour nature and lack of binding market access commitments. As such, trade between CARICOM and Asian countries is on World Trade Organization (WTO) most favoured nation (MFN) terms. This means Caribbean firms do not have preferential access to any Asian or Pacific market nor do Asian and Pacific firms have in ours.

    Although the Asia-Pacific region has become a major source of outward FDI globally, FDI inflows to the Caribbean remains mainly from the US, Europe and Canada. Among CARICOM countries, Barbados, Guyana, Jamaica, The Bahamas and Trinidad & Tobago have bilateral investment treaties with China, although not all are in force. Guyana, Jamaica and Trinidad & Tobago also have BITs with South Korea which are in force. Suriname’s BIT with Indonesia was signed in 1995 but never entered into force.

    Though Chinese FDI to the Caribbean remains small, Beijing has become a major provider of development finance in the region. Many Caribbean countries have signed memoranda of understanding (MOUs) with China under its Belt and Road Initiative (BRI). There are also various other initiatives such as the China/Caribbean Economic and Trade Forum and the CARICOM/Korea Consultation and Cooperation Mechanism, as examples.

    Similar to the Caribbean, notable heterogeneity exists among the RCEP parties in terms of culture, language, geography, religion, political systems, income levels , poverty rates, and population size. These are nuances, of course, to which Caribbean firms looking to tap into the Asian market must be sensitive.

    Five ways RCEP is of interest to the Caribbean

    Here are five ways that RCEP might be of interest to the Caribbean.

    First, RCEP marks another way in which the Asia-Pacific region is showing strategic global leadership in promoting multilateralism and a rules-based approach to trade. Both are important issues for CARICOM, especially at a time when unilateralism and protectionism appear ascendant. Admittedly, the commitments in the agreement are shallower than in the CPTPP and other similar agreements. For example, the provisions on e-commerce and on SMEs are predominantly best endeavour efforts at cooperation. In some cases, the rules just reinforce Members’ existing multilateral commitments or what exists in the existing trade agreements the Members have with each other. Nonetheless, a June 2020 study by the US-based Peterson Institute found that “RCEP could add $209 billion annually to world incomes, and $500 billion to world trade by 2030”. Moreover, the Agreement’s general review clause (Article 20.8) mandates the parties to undertake a general review of this Agreement with a view to updating and enhancing it five years after the date of entry into force of the Agreement, and every five years thereafter.

    Second, China, Japan and South Korea – the major Asian countries with which CARICOM trades – are all party to the RCEP Agreement. The benefits of RCEP to the parties extend beyond merely lowering tariffs. Although, some parties to the RCEP agreement already have FTAs with each other, RCEP will streamline customs procedures, converge rules of origin requirements and promote regulatory harmony across the fifteen parties. This will potentially reduce transaction costs for firms (including CARICOM firms) operating in the Asia-Pacific market, allowing them to only have to obtain one certificate of origin and to build more efficient supply chains within the Asia-Pacific region.

    Third, Asia is playing a growing role in the global economy and RCEP could cement this even further by accelerating that region’s COVID-19 economic recovery. With the notable exception of India, Asia-Pacific economies have generally seen a less pronounced COVID-19-induced economic contraction and have been recovering from the COVID-19 pandemic faster than the US, UK and the EU-27 – CARICOM countries’ traditional tourism source markets and trade partners. The IMF’s October 2020 Outlook forecasts ‘emerging and developing Asia’ economies to grow 6% in 2021, while ‘advanced economies’ (in which Japan is included) to grow a little more than half as fast at 3.9% in 2021. According to an IMF blog written by Ostry (2020), the Fund forecasts the Asia-Pacific region to grow by 6.9 percent in 2021, although headwinds remain ahead.

    While China alone accounts for a population over 1 billion and is now the world’s second largest economy by GDP, other Asia-Pacific countries have been rising in their economic importance. Their growing middle class present a possible tourism source market and potential consumers for Caribbean goods and services. Japan has become, for example, the major export market for Jamaican Blue Mountain coffee. Soca music and steel pan, both originating in Trinidad & Tobago, have also attracted a growing following in Japan. Reggae, a world-renowned musical genre born in Jamaica, is popular in South Korea and there are several reggae bands there. This shows that there are elements of Caribbean culture which appeal to Asian tastes, which present opportunities for creating demand for other quintessential Caribbean goods like our rums, for example.

    Besides trade and economic cooperation, possible opportunities for deepening Asia-Pacific cooperation and technical assistance exist in areas of mutual interest such as education, biomedical research, Artificial Intelligence and other spheres of technology, renewable energy, and sustainable agriculture, as examples.

    Fourth, although RCEP is just a trade agreement and not a political arrangement per se, it further strengthens the economic prowess and geopolitical significance of those participating countries on the multilateral stage, which could be to CARICOM’s benefit. RCEP might shape future trade and trading rules within Asia and could serve as a clue of what any future agreement between CARICOM and ASEAN agreement could possibly look like. It does not cover environmental and labor provisions, however.

    There is also the commitment in the Agreement to not only create an RCEP Joint Committee which is standard for FTAs, but an RCEP Secretariat (Article 18) which shows some desire by the parties for RCEP to be more than a standard FTA, but a forum for discussing rules of trade amongst themselves. In the future, RCEP as a negotiating bloc could have an influential role in the WTO, for example, in setting rules in new and emerging areas of trade. In the WTO, CARICOM has a long history of cooperating with similarly minded countries. CARICOM has also cooperated with Asian countries, inter alia, in intergovernmental and other multilateral fora, such as in the Organisation of Africa, Caribbean and Pacific States (OACPS), the Commonwealth, and the United Nations through the Alliance of Small Island States (AOSIS), on climate change. CARICOM also requested Indonesia’s assistance with combatting arbitrary blacklisting practices.

    Fifth, as CARICOM’s own regional integration movement remains stuck in neutral, RCEP, though not as ambitious as Africa’s continental free trade agreement aims to be, shows that there is still a desire for economic cooperation among larger, often more economically endowed countries than ours.

    Stepping stones across the pond

    Similar to Caribbean-China economic relations, Caribbean relations with the wider Asia-Pacific region hold promise. However, in addition to the physical distance separating the two regions, the ‘psychic distance’ between the Caribbean and the Asia-Pacific region may seem at first intimidating to some CARICOM firms, especially those with limited exporting experience or limited knowledge of the Asia market.

    On this front, the region has some underutilized resources from which it could draw to use as stepping stones to get across the pond to the Asia-Pacific market. As I have argued in a previous article, Caribbean returning scholars from China and other Asian countries are an undertapped resource whose knowledge of the language, culture and their networks could be deployed for the benefit of deepening general understanding and knowledge of the business culture of that market. The Caribbean-ASEAN Council can also be a valuable resource for Caribbean firms interested in the ASEAN and wider Asia-Pacific region.  

    Another resource at Caribbean countries’ fingertips is the region’s small Asia diaspora pocket, such as Chinese and Indians, who in some cases still retain ties with their ancestral homelands. Suriname’s Javanese diaspora are descendents of persons who came from the Indonesian island of Java (then also a Dutch colony) to work on plantations in Suriname. Suriname has leveraged this shared history to its advantage and is a member of the Islamic Development Bank, has an embassy in Jakarta (capital of Indonesia) and together has the Suriname-Indonesia Joint Commission.

    Additionally, there are English-speaking countries, such as Australia and New Zealand, and to a lesser extent Singapore and Malaysia where English is an important second language, which not only share a common language with the anglophone Caribbean but also to some extent similar laws and institutions. They could be markets in themselves for Caribbean goods and services, but could also be seen as ‘jump off’ markets to more ‘psychic distant’ markets in the wider Asia-Pacific region.

    In closing, this article sought to offer some preliminary thoughts on the RCEP agreement and what possible implications it might have for Caribbean-Asian economic relations. As Caribbean countries redouble their trade and tourism diversification efforts to pull their economies out of the COVID-19 doldrums, the region’s governments and private sector should embrace the possible economic opportunities RCEP might present for the region in terms of trade, FDI, and wider cooperation with the Asia-Pacific region.

    The full text of the RCEP agreement may be accessed here.

    Alicia Nicholls, B.Sc., M.Sc., LL.B. is a trade and development consultant with a keen interest in sustainable development, international law and trade. All views herein expressed are her personal views and should not be attributed to any institution with which she may from time to time be affiliated. You can read more of her commentaries and follow her on Twitter @LicyLaw.