Caribbean Trade Law and Development

Tag: World Trade Organization

  • WTO: Curacao to begin accession process as separate customs territory

    WTO: Curacao to begin accession process as separate customs territory

    Image by Patrice Audet from Pixabay.

    Alicia Nicholls

    World Trade Organization (WTO) Members have agreed to establish a working party for the accession of the Dutch Caribbean dependency of Curacao to the 164-member organization. This decision was made at the latest meeting of the WTO’s General Council – the WTO’s highest decision-making body in Geneva – when it met on March 3-4, 2020.

    Under the WTO Agreement, any State or separate customs territory “possessing full autonomy in the conduct of its external commercial relations and of the other matters provided for in this Agreement and the Multilateral Trade Agreements” may accede to the WTO on terms to be agreed between it and the WTO.

    Constitutionally, Curacao is a constituent country and separate customs territory within the Kingdom of the Netherlands and is part of the original membership of the Kingdom of the Netherlands to the General Agreement on Tariffs and Trade (GATT), and later the WTO. The Kingdom of the Netherlands has supported Curacao’s bid for WTO membership as a separate customs union and placed Curacao’s request on the General Council’s agenda.

    Curacao’s application for accession, which was made in October 2019, will make it among several accessions to the WTO currently on-going. According to the WTO Accessions 2019 Annual Report by the Director-General which was one of the meeting agenda items, “at the end of the year, out of the 22 ongoing accessions, 14 were considered as active, continuing their engagement with Members and/or the Secretariat”.

    With regard to The Bahamas, the only independent Caribbean country which is not yet a WTO Member, the Accessions Report 2019 noted that “the accession Working Party of The Bahamas met once and was very active until Hurricane Dorian made landfall in September, becoming the worst natural disaster in the country’s history”. The Bahamas’ accession to the WTO remains a point of contention in the country as there remains strong opposition against joining the multilateral trading body.

    Other items were discussed at the meeting which would be of interest to the Caribbean. Two Caribbean WTO representatives, Mr. Stephen Fevrier of the Permanent Mission of the Organisation of the Eastern Caribbean States (OECS) to Geneva and H.E. Mr. Chad Blackman, Ambassador of Barbados to Geneva are among the new chairpersons for WTO bodies.

    The US has resubmitted documents – a working paper and a draft General Council decision – in support of its bid to bring out changes to the way the WTO allows eligibility for special and differential treatment. The US delegation also submitted a draft General Council decision on “The Importance of Market-oriented conditions to the World Trading System”.

    The documents from the General Council Meeting may be accessed via the WTO’s documents portal.

    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.

    DISCLAIMER: All views expressed herein are her personal views and do not necessarily reflect the views of any institution or entity with which she may be affiliated from time to time.

  • USTR releases report reiterating critiques of defunct WTO Appellate Body

    USTR releases report reiterating critiques of defunct WTO Appellate Body

    Alicia Nicholls

    Any doubts on whether the United States (US) would eventually shift its stance on the now defunct World Trade Organization (WTO) Appellate Body (AB) have been quashed with the release of a report by the Office of the United States Trade Representative (USTR) reiterating the US’ longstanding grievances with the AB.

    The crux of the report may be obtained from the following paragraph:

    “the Appellate Body has repeatedly failed to apply the rules of the
    WTO agreements in a manner that adheres to the text of those agreements, as negotiated and
    agreed by WTO Members. The Appellate Body has strayed far from the limited role that WTO
    Members assigned to it, ignoring the text of the WTO agreements. Through this persistent
    overreaching, the Appellate Body has increased its own power and seized from sovereign nations
    and other WTO Members authority that it was not provided.

    The report may be accessed here.

  • WTO Appellate Body loses quorum for hearing new appeals

    WTO Appellate Body loses quorum for hearing new appeals

    Alicia Nicholls

    The World Trade Organisation’s Appellate Body – the highest arbiter of trade disputes – has lost its quorum. The terms of two of its three remaining Members expired on December 10, 2019. This means that as of December 11, the Appellate Body is no longer be able to review new appeals of panel decisions as it now lacks the minimum number of members required to do so.

    It is a day which many who have been following global trade matters have feared. For the past two years, the US has been blocking the appointment of Appellate Body members unless its concerns related to the substantive and procedural aspects of the Appellate Body’s work were addressed. Successive US administrations have raised issues with the Appellate Body, but anti-WTO sentiment intensified under the Trump Administration which has repeatedly accused the WTO of being “unfair” to the US.

    In a press conference delivered at the final WTO General Council Meeting for 2019, WTO Director-General Roberto Azevedo stated that WTO Members could not achieve consensus on a draft decision to reform the Appellate Body submitted by Ambassador David Walker of New Zealand. Ambassador Walker had been appointed earlier this year to facilitate an informal process to overcome the deadlock on Appellate Body member appointments. The draft decision was an outcome of that process.

    Mr. Azevedo emphasised that the current paralysis of the Appellate Body “does not mean that rules-based dispute settlement has stopped at the WTO”. He pointed to other mechanisms under the DSB for resolving disputes. However, he noted that most Members prefer the two-tiered system and that he would launch “more intensive, high-level consultations on how to resolve the longstanding impasse over the appointment of Appellate Body members”.

    A group of 54 mainly developing WTO members, including many Caribbean countries, released a statement in support of the rules-based multilateral trading system. Inter alia, they called the dispute settlement system of the WTO “a central element in providing security and predictability to the multilateral trading system”. They also stressed the urgency “of filling all current vacancies on the Appellate Body”.

    During the General Council Meeting held December 9-11, Members finally approved the WTO’s 2020 Budget. Members also agreed to extend the moratorium on customs duties on electronic transmissions and the initiation of “non-violation” complaints under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

    UPDATE: It has been reported that the two outgoing Appellate Body members will stay on temporarily to complete some existing appeals. 

    To watch the WTO DG’s press conference, please click 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.

    DISCLAIMER: All views expressed herein are her personal views and do not necessarily reflect the views of any institution or entity with which she may be affiliated from time to time.

  • Caribbean Trade & Development News Digest – December 1-8, 2019

    Caribbean Trade & Development News Digest – December 1-8, 2019

    Welcome to the Caribbean Trade & Development News Digest for the week of December 1-8, 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

    This week, the World Trade Organization (WTO) Members agreed to a preliminary 2020 budget, but succumbed to US demands regarding funding for the Appellate Body. According to Bloomberg, “the deal limits annual spending for appellate body members to no more than 100,000 francs, an 87% reduction from the full allotment, and caps spending by the body’s operating fund to 100,000 francs, a 95% reduction.”

    This coming week is a big week for the WTO and global trade in general. All eyes will be on the General Council meeting on December 9-11, 2019. A draft proposal on changes to the beleaguered Appellate Body will be considered by the General Council in a last ditch effort to save the WTO’s appellate jurisdiction from becoming inoperable when the terms of two of its three remaining Members expire this week. Read about the crisis here.

    On another note, the US revised and resubmitted (again) its proposal on Special and Differential Treatment for General Council consideration. Read my note on it here.

    On the Brexit front, the UK is set to hold its general elections this week, December 12, 2019. In the US-China trade war, December 15 is the date the Trump Administration set for imposition of the next round of tariffs on Chinese goods. Will the tariffs be imposed or will they be postponed again? The world watches…

    REGIONAL NEWS

    PM Mottley accepts CARICOM office space in Nairobi, Kenya

    Barbados Today: Prime Minister Mia Mottley today accepted, on behalf of her regional colleagues, space in an ultra-modern business complex in Nairobi, Kenya to be the home of a joint diplomatic mission. Read more

    As impact of climate crisis worsens, Caribbean islands see six-fold increase in number of children displaced by storms, new UNICEF report shows

    UNICEF: The estimated number of children displaced by storms and flooding in the Caribbean islands* saw a six-fold increase in the past five years, a new UNICEF report said today. Read more

    UK Expanding Regional Presence: High Commissioner

    Barbados Advocate: The United Kingdom (UK) is expanding its presence in the Eastern Caribbean.Word of this comes from British High Commissioner to Barbados and the Eastern Caribbean Her Excellency Janet Douglas. Read more

    Belize/Taiwan finalizing trade agreement

    LoveFM: Among all the projects between Belize and The Republic of China (Taiwan), the two countries are now trying to finalize a new agreement. This agreement will help Belize in exporting more products, including sugar. Read more

    US ambassador shares priority list with AMCHAM executives

    Jamaica Observer: United States Ambassador to Jamaica, Donald Tapia has reiterated that cyber security, energy, and closer US-Jamaica trade links are some of the key areas on his priority list for Jamaica. Read more

    CARICOM works to increase cooperation with the European Union

    Prensa Latina: The Caribbean Community (CARICOM) is committed today to increasing trade and services cooperation with the European Union (EU), after 11 years of the CARIFORUM-EU Economic Partnership Agreement (EPA). Read more

    Jampro encourages local companies to use services

    Jamaica Observer: President of Jamaica Promotions Corporation (Jampro) Diane Edwards is encouraging local companies to take full advantage of Jampro’s range of services to drive investment and trade in Jamaica. Read more

    CLA licensees trade $84m in cannabis since May

    Jamaica Observer: For the period May to November this year, trading among Cannabis Licensing Authority (CLA) licensees has been valued at US$629,000 (J$84.2 million). Read more

    CARICOM Special Rapporteur wants more access for Persons with Disabilities

    The Montserrat Reporter: the Caribbean Community (CARICOM) Special Rapporteur on Disability, Dr. Floyd Morris, Tuesday reiterated a call for access for Persons with Disabilities as the region joined the global community in observing International Day of Disabled Persons. Read more

    20,000 CARICOM citizens await response on cheaper airfares

    Loop St Lucia: The petition to address high intra-regional travel taxes has been signed, sealed and delivered to all CARICOM Heads of Government. Read more

    INTERNATIONAL NEWS

    WTO Members Agree on a 2020 Budget, Averting Jan. 1 Shutdown

    Bloomberg: World Trade Organization members agreed to a preliminary 2020 budget, bowing to U.S. demands to choke off funding to the alliance’s appellate body. Read more

    WTO faces crisis over settlement disputes unless Trump backs off

    The Guardian: The World Trade Organization is set to plunge into the biggest crisis in its 25-year history later this week as the climax to a long-running and bitter dispute means the Geneva-based body will cease to be able to settle disputes between its member states. Read more

    WTO tries to grapple with existing caseload before critical date next week

    CBC: The World Trade Organization (WTO) battled on Tuesday over whether to bring its Appellate Body to an abrupt halt or allow its adjudicators to settle a handful of pending cases, according to trade officials present at a meeting on the subject. Read more

    RCEP countries must pay heed to India’s concerns

    Hindu Business Line: India’s doubts on issues like exports and its economic relations with China are genuine and crucial for growth. Only when these are resolved, should India consider joining the agreement again. Read more

    China exports fall again as US trade war continues

    BBC: China’s exports fell in November as shipments to the US slowed sharply, adding to concerns about the effects of the two nations’ trade war. Read more

    U.S. trade deficit shrinks sharply; labor market tight

    Reuters: The U.S. trade deficit dropped to its lowest level in nearly 1-1/2 years in October, suggesting trade could contribute to economic growth in the fourth quarter, though a broad decline in imports hinted at a slowdown in domestic demand. Read more

    Boris Johnson refuses to rule out leaving EU on WTO terms

    The Guardian: Boris Johnson has left the door open to coming out of the EU on World Trade Organization terms next year, after his foreign secretary, Dominic Raab, said it was “absolutely” right to keep a no-deal outcome on the table in trade talks. Read more

    WTO: 163 countries agree to make changes in rules governing trade dispute resolution

    Hindu Business Line: In an unusual development on Friday, 163 countries agreed to make comprehensive changes to the rules governing the resolution of trade disputes merely to placate one member — the US — for keeping the Appellate Body afloat, trade envoys said. Read more

    Drug protections to be rolled back in USMCA, Mexico says

    Washington Examiner: A top Mexican official has claimed that protections for biologic drugs are being rolled back in the pending trade deal being negotiated by the Trump administration, an apparent compromise that could attract Democratic support at the cost of the pharmaceutical industry. Read more

    AU urges greater intra-Africa trade

    Xinhua: The African Union (AU) on Tuesday stressed the need to unlock intra-Africa trade as only less than 20 percent of goods produced in Africa currently staying within the continent. Read more

    US vows 100% tariffs on French Champagne, cheese, handbags over digital tax

    Euractiv: The US government on Monday (2 November) said it may slap punitive duties of up to 100% on $2.4 billion in imports from France of Champagne, handbags, cheese and other products, after concluding that France’s new digital services tax would harm US tech companies. Read more

    We will ‘react as one’, EU tells US over French digital tax dispute

    Euractiv: The European Commission wants to settle the latest trade dispute with the US over the French digital tax “amicably” but warned that the bloc will “react as one” if Washington slaps tariffs on Paris. Read more

    EU-Ghana endorse market access offer and schedule under Economic Partnership Agreement

    EU: The second meeting of the EPA Committee under the Interim Economic Partnership Agreement (EPA) between Ghana and the EU was held in Brussels on 29th November 2019. Read more

    Apec must press on towards free trade area of the Asia-Pacific, says Chile’s president Sebastian Pinera

    Strait Times: Apec has to continue working towards its goal of a free trade area spanning the Pacific Ocean, the outgoing chairman of the regional grouping said on Saturday (Dec 7). Read more

    APEC pledges to further cooperation in Chile year’s closing meeting

    Xinhua: Members of the Asia-Pacific Economic Cooperation (APEC) pledged to further their cooperation at the APEC Concluding Senior Officials’ Meeting (CSOM) held here on Saturday. Read more

    STRAIGHT FROM THE WTO

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