Caribbean Trade Law and Development

Tag: World Trade Organisation

  • Caribbean Trade & Development News Digest – November 24 – 30, 2019

    Caribbean Trade & Development News Digest – November 24 – 30, 2019

    Welcome to the Caribbean Trade & Development News Digest for the week of November 24-30, 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 HIGHLIGHTS

    At the WTO’s Dispute Settlement Body meeting on 22 November, some 117 WTO members have again called for a launch of the process for filling vacancies on the Appellate Body, which is currently at three members and is set to lose 2 other members when their terms end on December 10. If this happens, the WTO AB will no longer have a quorum to hear appeals. Read more here.

    On 27 November the WTO held a conference to mark the 30th anniversary of the Trade Policy Review Mechanism (TPRM). Read more here. The WTO also held its fourth Natural Disasters and Trade symposium on 29 November. Read more here.

    And lastly, it would be remiss of me if I did not say Happy Independence to my country Barbados which celebrated its 53rd year of independence on November 30! Barbados, as you may know, will be co-hosting the UNCTAD XV quadrennial with the United Arab Emirates in October, 2020.

    REGIONAL NEWS

    Government launches Belize’s 1st National Investment Policy and Strategy

    Breaking Belize News: Тhе Gоvеrnmеnt оf Веlіzе (GОВ) thrоugh thе Міnіѕtrу rеѕроnѕіblе fоr Іnvеѕtmеnt, Тrаdе аnd Соmmеrсе, ВЕLТRАІDЕ аnd thе САRІСОМ Dеvеlорmеnt Fund (СDF) wіll lаunсh thе Веlіzе Nаtіоnаl Іnvеѕtmеnt Роlісу аnd Ѕtrаtеgу (NІРЅ) оn Моndау, Dесеmbеr 2, 2019, аt 10 аm аt thе Веѕt Wеѕtеrn Віltmоrе Рlаzа іn Веlіzе Сіtу. Read more

    Why the WTO Appellate Body Crisis Matters to the Caribbean

    CARICOM Today: The Appellate Body (AB) of the World Trade Organization (WTO) – the final court charged with hearing appeals on points of law at the WTO – faces an existential crisis. On 10 December 2019, the terms of two of its remaining three members – the quorum needed to adjudicate an appeal – will expire. Read more

    Guyana commits to direct flights from C’bean to Africa

    News Room: The Governments of Guyana and Ghana Friday morning signed an Air Services Agreement, paving the way for direct flights between the two countries. Read more

    Barbados ‘ready for Brexit EPA’, says Husbands

    Barbados Today: Barbados is ready to take full advantage of an Economic Partnership Agreement (EPA) with post-Brexit Britain, Minister of Foreign Trade Sandra Husbands has declared. Read more

    Barbados, Ghana explore business opportunities

    Joy Online: Trade and investment relations between Ghana and Barbados has received a further boost with the signing of a partnership agreement between an indigenous Ghanaian firm and its counterpart from Barbados. Read more

    Ghana: Govt Completes Recruitment of 120 Nurses for Barbados

    AllAfrica: The Ministry of Health (MOH) has completed the recruitment processes to send the first batch of 120 qualified nurses to work in the Caribbean nation of Barbados. Read more

    Bridgetown and Tema sign agreement establishing sister-port

    Joy Online: Ghana and Barbados on Friday, November 15, 2019, signed an agreement establishing a sister-port relationship between the two cities to facilitate the expansion of trade between the two countries, especially trade transiting through Barbados from Ghana and onward to other Caribbean and Latin America destination ports. Read more

    Ghana, Barbados sign agreement to boost e-commerce

    Ghanaweb: In its quest to facilitate the expansion of trade and investment between Ghana and Barbados, an indigenous Ghanaian firm and its counterpart from Barbados have signed a partnership agreement to boost e-commerce within the two countries. Read more

    US Envoy Says Jamaica Ready For Greater Investment Flow From The North; Hails Improvements In Local Economy

    Jamaica Gleaner: The United States envoy in Jamaica says the prospects for greater investments by his country on the island have never been better, pointing to major improvements in the local economy and efforts by the government to make it easier to do business. Read more

    Jamaica Re-Elected To Powerful Category C Of IMO Council

    Jamaica Gleaner: Jamaica was re-elected to Category C of the Council of the International Maritime Organization (IMO), confirming the island’s position at the centre of international maritime legislature. Read more

    Exclusive: Caribbean officials linked to diplomatic passport sale

    Al Jazeera: Politicians in the Caribbean are said to be involved in a corrupt trade of diplomatic posts in exchange for money, an Al Jazeera investigation has revealed. Read more

    COTED decision a lifeline for CARICOM sugar

    Jamaica Observer: Directors of the Sugar Association of the Caribbean (SAC) are due to meet in early December to reflect on the 49th Meeting of The Council for Trade and Economic Development (COTED) outcomes, which agreed to the incremental enforcement of tariffs on imported white sugar as and when the region produces it. Read more

    No 40% CARICOM tariff on white sugar until regional producers can supply – Dookhoo

    Stabroek: The Council for Trade and Eco-nomic Development (COTED) of CARICOM will not erect a 40% common external tariff (CET) against extra-regional white sugar until regional producers are able to supply the quantity and quality needed by regional manufacturers for their food and beverages operations. Read more

    INTERNATIONAL NEWS

    Top Japan negotiator says it is not considering signing RCEP trade pact without India

    Strait Times: Japan is not considering signing a regional trade pact without India at this juncture, the top Japanese negotiator said on Friday (Nov 29), ahead of a series of diplomatic exchanges in the coming weeks that include a visit to Delhi by Prime Minister Shinzo Abe. Read more

    China small manufacturers’ rising exports to Africa help offset plunging sales to US amid trade war

    South China Morning Post: Growing optimism is spreading among some small Chinese manufacturers in sectors ranging from car parts to textiles, as a spike in exports to countries involved in the Belt and Road Initiative is starting to offset a portion of lost demand from the United States due to the trade war. Read more

    General election 2019: Second Brexit referendum will be needed unless a majority is won, report says

    iNews: The Conservatives have said a second referendum is off the table, but academics believe it’s their only option unless they win a majority. Read more

    With the WTO Appellate Body Becoming Dysfunctional on December 11, What Happens to Pending Appeals and Other Open Issues?

    WITA: There was another WTO Dispute Settlement Body (“DSB”) meeting on November 22, 2019. In addition to the normal agenda item of receiving reports and comments by other members on the status of implementation of recommendations on disputes where reports had previously been adopted by the DSB, there were a number of other agenda items, one of which was not addressed. Read more

    Japan indicates efforts on to address India’s concerns over RCEP

    Economic Times: Japan on Sunday gave clear indications that efforts were on to make India join the ambitious Regional Comprehensive Economic Partnership (RCEP), saying all member countries of the grouping were committed to address New Delhi’s concerns. Read more

    Rwanda’s port – creating a hub for Intra-African trade

    Euronews: One of the largest dry ports (30 hectares) in-land in Africa is working towards a different kind of management system to create a faster and more efficient process for its customers. It means landlocked countries will be free from market-barriers. Read more

    ITFC seeks to boost Arab-Africa trade

    GTR: The International Islamic Trade Finance Corporation (ITFC) has committed to a credit facility agreement worth US$100mn with the African Export-Import Bank (Afreximbank). Read more

    New move to boost trade between Ireland and Africa

    Irish Times: Plans are afoot to increase the value of two-way trade between the Republic of Ireland and Africa to at least €5 billion by 2025. Read more

    AfCFTA: Boosting intra-regional trade in goods and services

    Business Report: According to new research from Baker McKenzie and Oxford Economics – AfCFTA’s $3 trillion (R44.18trln) Opportunity: Weighing Existing Barriers against Potential Economic Gains – many opportunities for increasing intraregional trade exist in Africa, in goods and services. Read more

    Morocco, Turkey Launch Negotiations to Save Free Trade Agreement

    Morocco World News: Turkey and Morocco appear to have launched negotiations to maintain their in-question Free Trade Agreement with the aim of “rebalancing” trade terms and satisfying both parties. Read more

    South Korea’s export decline suggests no easing up on world trade slump yet

    Business Times: South Korea’s exports, a closely watched bellwether for world trade, fell more than expected in November, dealing a blow to nascent optimism that a prolonged slump in global demand may be bottoming out. Read more

    Japanese and South Korean trade officials to hold export control talks in December

    The Japan Times: Senior trade officials from Japan and South Korea will meet next month to discuss Tokyo’s tightened controls on tech-related exports to its neighbor, trade minister Hiroshi Kajiyama said Friday. Read more

    USMCA: Ratification is getting there but ‘difficult issues’ remain

    Financial Post: The push to ratify a new North American trade pact is “getting there” Mexico’s top negotiator says, though some “difficult issues” remain as U.S. Democrats continue to insist on stronger labour enforcement. Read more

    U.S., Canada, Mexico Meet to Push for Final Agreement on USMCA

    Bloomberg: The White House pushed Wednesday to wrap final negotiations with Democrats on President Donald Trump’s top legislative priority, the U.S.-Mexico-Canada Agreement, in meetings with top Mexican and Canadian officials. Read more

    Lower trade barriers helped faster economic and wage growth in Latin America, IDB report

    Mercopress: Latin America and Caribbean region saw faster economic and wage growth thanks to a lowering of trade barriers, a new report by the Inter-American Development Bank shows. The study also provides policy recommendations to ensure the region is better positioned to take advantage of trade liberalization and make its benefits more tangible to citizens. Read more

    Making EU trade deals work for citizens

    EUObserver: As global trade disputes increase, protectionism is on the rise, and climate protection becomes a mainstream political objective, trade is becoming an increasingly political topic. Read more

    STRAIGHT FROM THE WTO

    NEW ON THE CTLD BLOG

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  • WTO: Trade tensions could sabotage global trade growth momentum

    WTO: Trade tensions could sabotage global trade growth momentum

    Alicia Nicholls

    The World Trade Organisation (WTO) has predicted that global merchandise trade growth will remain strong in 2018 and 2019, but has cautioned that this momentum is contingent on the policy choices taken by governments.

    This forecast was disclosed by WTO Director General, Roberto Azevedo, in a press conference held last week. According to Mr. Azevedo, global merchandise trade grew an estimated 4.7% in 2017 and is forecast by WTO economists to grow 4.4% in 2018 and by a more modest, 4.0% in 2019.

    He noted that trade volume growth in 2017 was the most robust since 2011, with Asia being responsible for much of the recovery. He noted that South and Central America and the Caribbean made a positive contribution for the first time since 2013 due to Brazil’s economic recovery. The ratio of trade growth to GDP growth will be slightly lower in 2018 at 1.4 in 2018, down from 1.5 in 2017. Commercial services trade experienced strong growth in 2017 after two years of lacklustre growth.

    The escalating global trade tensions, particularly between the US and China, cast a shadow over the forecast, as Director-General Azevedo strongly cautioned that continued positive trade growth could be “quickly undermined” if Governments turned to trade restrictive policies and engaged in retaliation. Mr. Azevedo pointedly stated that “a cycle of trade retaliation is the last thing the world economy needs”, noting that trade tensions may already be impacting business confidence and investment decisions. He further warned that missteps on trade and monetary policy “could undermine economic growth and confidence”.

    In an appeal to WTO Member States to resort to the rules-based system as opposed to unilateral action, Mr. Azevedo added that “pressing trade problems confronting WTO Members is best tackled through collective action”.

    The full WTO press release 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.

     

  • ACP Trade Ministers demand ‘concrete outcomes’ at upcoming WTO MC11

    ACP Trade Ministers demand ‘concrete outcomes’ at upcoming WTO MC11

    Alicia Nicholls

    Trade ministers and other representatives from the 79-member Africa, Caribbean and Pacific (ACP) countries added their voices to demands for ‘concrete outcomes’ at the upcoming World Trade Organisation’s Eleventh Ministerial Conference (WTO MC11). Preparations for the upcoming WTO MC11 was one of several topics discussed by ACP trade representatives at their 20th ACP Ministerial Trade Committee meeting held in Brussels on 18-19 October last week.

    According to the press release from the meeting, the ACP representatives  reiterated the need for a development-friendly and robust MC11 work programme which recognized differences between developed, developing and least developed countries and whose outcomes were aligned with the Sustainable Development Goals (SDGs).

    Reaffirming their commitment to the multilateral trading system, they also called for “inclusiveness, consensus and transparency in all WTO decision-making processes, as well as careful framing of any reform evaluation of the WTO to ensure that the interests of all countries are protected”. Guyana was chosen to be the spokesperson for the ACP Group at the Ministerial which will take place in Buenos Aires December 10-13, 2017.

    In a speech delivered at the ACP meeting, the WTO’s Director General, Roberto Azevedo, acknowledged the important role ACP countries have played in shaping the WTO’s work.

    Mr. Azevedo gave a brief status report on the WTO’s preparatory work for the upcoming Ministerial Conference, lauding the ACP countries for being at the “forefront” of these discussions. He noted that although there were some positive signs, the many gaps to bridge meant that there was still much work ahead with respect to the negotiations.  He further reiterated that in order to achieve concrete results in Buenos Aires, “more focused engagement and negotiation will be required to quickly identify areas of convergence”.

    In the meeting which was chaired by the Hon. Carl Greenidge, Vice President and Minister of Foreign Affairs of the Cooperative Republic of Guyana, ACP trade representatives also focused on several  other topics of importance to ACP countries’ trade, including enhancing trade among ACP countries and trade issues with the European Union (EU).

    The ACP press release also notes that ACP representatives have committed to “increased integration, unity and solidarity” among ACP countries, including taking more “joint ACP approaches to trade and development”.

    The press release from the ACP can be read here.

    The WTO Director-General’s full speech can be read 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. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

  • WTO Trade Facilitation Agreement: Why is it important for Caribbean Small States?

    WTO Trade Facilitation Agreement: Why is it important for Caribbean Small States?

    Alicia Nicholls

    History was made on February 22nd when the World Trade Organisation (WTO) Trade Facilitation Agreement (TFA) finally came into force. Coming into effect some four years after its conclusion at the WTO’s 9th Ministerial held in Bali, Indonesia in 2013, the TFA is a momentous achievement for the world, but also a plus for Caribbean small States which, like other developing countries, stand to benefit the most from the Agreement’s full implementation. Indeed, WTO economists estimate that full implementation of the TFA “could reduce [global] trade costs by an average of 14.3% and boost global trade by up to $1 trillion per year.”

    Economic growth was one of the three broad themes discussed at the 28th Intersessional Meeting of the Heads of Government of the Caribbean Community (CARICOM) held in Georgetown, Guyana last week. Trade, both intra- and extra-regional, is an important contributor to economic growth, employment and poverty reduction. CARICOM Secretary-General Irwin Larocque recalled that the Community “has identified the CARICOM Single Market and Economy (CSME) as the best vehicle to promote our overall economic growth and development”.

    However, despite trade accounting for between 54-135% of Caribbean countries’ GDP according to World Bank data, the region’s share in global trade has been on a decline. Export performance and investment attraction remain lacklustre. Market and product diversification remain limited. Moreover, according to the last Caribbean Trade and Investment Report published in 2010, although intra-CARICOM merchandise trade was gaining momentum, it still only comprised “a minute portion of total CARICOM trade”.

    Trade Facilitation can improve Caribbean trade

    There is no one factor which explains the region’s declining trade performance or the still limited intra-CARICOM trade. For instance, a 2015 Compete Caribbean study noted that except for three countries, customs and trade regulations were found not to be a significant obstacle for doing business. With regard to intra-regional trade, high transportation costs remain one of the biggest barriers. However, with regard to extra-regional trade, a 2013 World Bank Report highlighted the low customs performance of Caribbean countries’ despite their high trade openness.  Another World Bank report noted that port handling charges in the Caribbean “can be two to three times higher than in similar ports in other regions”.

    Unnecessarily burdensome border procedures and costly border fees make it difficult for exporters to access other markets, even where trade agreements or preferential arrangements exist. This is made even more difficult in cases where customs and other administrative procedures are opaque and rely largely on paper-based processes as opposed to electronic payments and e-documents. While large firms can invest the time, human and financial resources in navigating complex border rules and procedures in other markets, small-and medium sized enterprises (SMEs)’s often lack this luxury. Add in a foreign language, and it gets even more complicated. Improving trade facilitation can help boost Caribbean countries’ competitiveness, while facilitating policies and support structures can assist Caribbean firms’ access to regional and international markets. After all, States do not trade, firms do.

    The TFA addresses one of the biggest constraints of SMEs seeking to do business internationally through the simplification, harmonisation and modernisation of customs procedures, while also fostering transparency and reducing transaction costs. The TFA includes provisions aimed at facilitating the release and clearance of goods through customs, requires States to publish rules and procedures and to establish contact points for enquiries, facilitates border agency cooperation, provides procedures for appeal and review and disciplines for fees and penalties, inter alia.

    Developed countries have committed to implementing all of the provisions of the Agreement upon its entry into force, which means accessing those markets should be easier at least from a customs standpoint. Like other WTO developing country and Least Developed Country (LDC) Member States, Caribbean countries’ implementation of the TFA will be based on their ability to do so. Member States are allowed to schedule their commitments for the Agreement’s provisions into three categories: A, B, C, with category A commitments being those which the Member State can implement upon the Agreement’s entry into force (or within one year of entry into force for an LDC). Importantly for Caribbean countries, they will also have access to the Trade Facilitation Agreement Facility which was established to assist developing countries and LDCs in their implementation efforts.

    In a world with increasingly globalised supply chains, the smooth flow of trade across borders is important for improving Caribbean countries’ competitiveness and ability to participate in Global Value Chains (GVCs). Implementing the reforms pursuant to the TFA can also be beneficial for intra-regional trade, through the harmonisation of customs procedures.

    Trade facilitation has other benefits as well, as noted in the WTO study on this issue. An improved trade and investment climate increases the attractiveness of a country for foreign direct investors. Moreover, transparent customs procedures reduce the opportunity for customs fraud and corruption, and improves revenue collection. It should be noted that not only are foreign direct investment inflows critical for Caribbean economies, but customs and other import taxes remain an important revenue source for many Caribbean governments.

    Trade Facilitation Measures in the Caribbean

    The encouraging news is that several Caribbean countries have begun trade facilitation reforms, including improvements in port infrastructure and simplification of customs procedures in recent years. As was noted in the World Bank’s Doing Business Report – 2017, Antigua & Barbuda removed the requirement of a tax compliance certificate for import customs clearance, while Grenada streamlined its import document submission procedures.  Haiti has allowed the submission of supporting documents online under its SYDONIA electronic data interchange system.

    Trinidad & Tobago was among the first countries to ratify the TFA, while Belize, Guyana, Grenada, Jamaica, St. Kitts & Nevis, St. Lucia and Dominica have also ratified the Agreement. Trinidad & Tobago (in regards to advance rulings) and the Dominican Republic (has not yet ratified the TFA) and Jamaica (authorised traders) are among several countries which have been identified as case studies in the implementation of trade facilitation measures.

    With the help of a loan from the Inter-American Development Bank (IDB) Barbados (which has not yet ratified the TFA) has introduced an Electronic Single Window, part of a wider competitiveness programme. Through its Global Logistics Initiative, Jamaica is seeking to take advantage of its location in one of the world’s busiest shipping lanes to become the premier logistics node within the Americas. However, in light of increased competition from other parts of the world, particularly for global investment flows, there is the need for the region to increase the pace of its trade facilitation reforms.

    What is next?

    Given the benefits that the at-the-border and behind-the-border reforms pursuant to the TFA can have for regional SMEs and for facilitating Caribbean trade, it is hoped that other Caribbean countries will ratify the Agreement. For those which have not yet done so, ratification of the Agreement could serve as a powerful signal to investors of their commitment to trade and business facilitation.

    Caribbean countries should move expeditiously to develop and implement national strategies for trade facilitation. This would involve assessing their country’s readiness to implement the various provisions of the TFA through identifying capacity gaps and implementation needs, on which basis they will categorise the provisions and make their notifications. Implementation capacity, of course, varies from one country to another. Caribbean countries should also continue to make use of technical and financial assistance and capacity building support for the implementation of the measures.

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