Caribbean Trade Law and Development

Tag: WTO

  • Trade Year in Review 2024: Top 5 Trade Developments

    Trade Year in Review 2024: Top 5 Trade Developments

    Alicia Nicholls

    As 2024 draws to a close and we prepare to welcome 2025 in another week or so, it is time yet again to reflect on the defining trade policy developments that shaped these past twelve months. This year unfolded against a backdrop of persistent geopolitical tensions, an escalating climate crisis, and economic uncertainty. Yet, amidst these challenges, we also witnessed a resurgence in global trade growth, some landmark trade agreements, and other notable developments, including right here in the Caribbean.

    Here are my picks for the top five trade stories that left their mark in 2024.

    1. Global Trade Hits Record High Amid Uncertain Outlook

    According to UN Trade and Development (UNCTAD) in its latest Global Trade Update, global trade will surge to an unprecedented $33 trillion in 2024, surpassing its 2022 record, and growing by 3.3% over 2023 levels. This impressive growth was driven by a robust 7% expansion in services trade, offsetting the more modest 2% growth in merchandise trade, which remains below its 2022 peak. However, the growth pattern was uneven, with developed regions taking the lead in the third quarter.

    While UNCTAD predicts a positive start to 2025, it notes that potential escalation in trade wars, geopolitical instability, and the increasing adoption of industrial policies by major economies add layers of uncertainty.

     The World Trade Organization’s (WTO) latest G20 Trade Measures report highlights a notable uptick in trade restrictions and the proliferation of climate-focused support measures by G20 countries, underscoring the complex relationship between protectionism and sustainability.

    2. Barbados Hosts Inaugural Global Supply Chain Forum

    In May, Barbados made history by co-hosting the first-ever Global Supply Chain Forum with UNCTAD. This groundbreaking event convened global leaders, experts, and stakeholders to tackle the critical issues of sustainable and resilient transport and logistics in Small Island Developing States (SIDS).

    The Forum culminated in the adoption of the Barbados Ministerial Declaration, a pivotal contribution to the Fourth International Conference on SIDS (SIDS 4) held in Antigua & Barbuda shortly thereafter. As an attendee of both events, I would like to once again extend kudos to the organisers on two very well organised events which exemplified the Caribbean region’s role in contributing to global discussion and action on key trade and development issues.

    3. WTO Director-General Ngozi Okonjo-Iweala Secures Second Term

    In November, World Trade Organization (WTO) Director-General Dr. Ngozi Okonjo-Iweala was appointed by the General Council via consensus to a second four-year term starting September 1, 2025. Her leadership comes at a critical juncture, with the WTO navigating legacy reforms and heightened trade tensions. Dr. Okonjo-Iweala’s four-year vision encompasses a WTO that delivers results, modernises to remain relevant, and capitalises on emerging trade opportunities. Her agenda includes finalising agreements on the outstanding agenda of the fisheries subsidies agreement (Fish 2) and Investment Facilitation for Development and preparing for the 14th Ministerial Conference (MC14) in Cameroon in 2026.

    4. Landmark Trade Agreements and Ongoing Negotiations

    This year saw several landmark trade agreements. The European Union and four Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay) finalized a historic deal after 25 years of negotiations. This agreement promises to deepen economic cooperation and includes provisions addressing deforestation concerns, a contentious point during talks.

    In November, Costa Rica, Iceland, New Zealand, and Switzerland signed the Agreement on Climate Change, Trade, and Sustainability, setting a precedent for integrating climate and sustainability goals into trade agreements. Meanwhile, the African Continental Free Trade Area (AfCFTA) launched its operationalization phase with five key instruments adopted, marking a significant leap for intra-African trade.

    Closer to home, Trinidad & Tobago and Curaçao advanced negotiations on a partial scope agreement, expected to conclude in 2025.

    5. Donald Trump’s Re-election and Its Trade Implications

    Campaigning on promises of reshoring manufacturing and imposing hefty tariffs, incoming US President Donald Trump’s second term is poised to once again reshape U.S. trade dynamics. He has already threatened more tariffs on China, as well as tariffs on its US-Mexico-Canada (USMCA) free trade agreement partners: Canada and Mexico. Increased US tariffs on imports from its major trading partners, and retaliatory tariffs by these trading partners could signal potential disruption to the global trade landscape.

    Trade analysts are bracing for ripple effects, including retaliatory measures and a potential pivot toward greater unilateralism. The implications for the multilateral trading system and global economic stability will undoubtedly be profound, making this a development to watch in the coming months.

    Looking Ahead

    At the CTLD Blog, we remain committed to delivering insights on the evolving trade landscape. As we bid farewell to 2024, I extend my heartfelt gratitude for your readership and engagement throughout the year. Here’s wishing you and your families a joyful holiday season and a prosperous 2025. Stay tuned as we continue to unpack the stories shaping global trade in 2025!

    Alicia Nicholls, B.Sc., M.Sc., LL.B. is an international trade and development specialist and the founder of the Caribbean Trade Law and Development Blog: www.caribbeantradelaw.com.

  • WTO Thirteenth Ministerial Conference: What’s at stake?

    WTO Thirteenth Ministerial Conference: What’s at stake?

    Alicia Nicholls

    All eyes of the trade policy world will be on the United Arab Emirates’ glistening capital city, Abu Dhabi, for the World Trade Organization (WTO)’s Thirteenth Ministerial Conference (MC 13) taking place February 27-29, 2024. Under the chairmanship of His Excellency Dr Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade, WTO members’ trade ministers and other delegates will discuss several key priority areas in hopes of securing a substantive package of outcomes which reinvigorates some confidence and strength to the WTO and the rules-based multilateral trading system which it oversees. This article takes a broad look at some of the major issues being discussed.

    Unlike other major multilateral organisations, the WTO is run by its members. Its highest decision-making body, the Ministerial Conference, comprises all of its members and meets every two years. The main exception to this was the four-year lag between the Buenos Aires Ministerial (2017) and Geneva Ministerial (2022) due largely to the COVID-19 pandemic.

    Similar to the run-up towards the last ministerial (MC 12), pressure exists for achieving concrete outcomes from this Ministerial Conference. Public commentary leading up to the ministerial has ranged the gamut from optimistic to pessimistic, especially since some issues like the TRIPS Waiver extension and agriculture appear far from reaching consensus. Significant discussions and preparatory work by delegations leading up to MC13 seek to ensure, however, that the pessimists are proven wrong. Indeed, ever-optimistic, the WTO’s formidable Director-General, Dr. Ngozi Okonjo Iweala is quoted as stating ““You know it’s always very difficult and seems like it’s not going to work…But we never say never. We are going to get it done.”

    Two new accessions

    On the bright side, the WTO will see two new accessions – Comoros and Timor Leste, the first since 2016 and which will bring its membership from 164 currently to 166. Both Comoros and Timor Leste are least developed countries (LDCs) and small island developing States (SIDS), emblematic of the importance small States in particular attach to the rules-based multilateral trading system despite its flaws. Some twenty-two other countries or separate customs territories are presently in the accession process. This lends credence to the argument that despite its shortcomings, countries still see WTO membership as desirable.

    Fisheries Subsidies Agreement

    Securing the entry into force of the Fisheries Subsidies Agreement, which was adopted at MC12 in 2022, is one priority area, as well as the second round of negotiations under that Agreement. The Agreement establishes binding multilateral rules seeking to discipline harmful fisheries subsidies which have been detrimental to the world’s fish stocks. The Agreement requires two-thirds of the WTO’s membership to deposit instruments of acceptance. Barbados, Dominica and Haiti recently deposited their instruments of acceptance this month. Indeed, Barbados’ Ambassador Matthew Wilson shared a video entitled “The Barbadian Matriarchy of Fishing” to highlight the importance of supporting small-scale and artisanal fishing in Barbados.

    E-commerce moratorium extension

    In place since 1998, the long-standing agreement among Members against imposing customs duties on electronic transmissions is due to expire unless Members agree once again to extend it. This e-commerce moratorium has been controversial as some countries argue that it has been critical for a smooth environment for digital trade. However, some developing countries are concerned about foregone customs revenue.

    Trade and development

    Development-related issues are also key on the agenda, particularly how to operationalize the development flexibilities – Special and Differential Treatment – within the WTO’s agreements. In December 2023, WTO members agreed on a draft decision to be submitted to trade ministers for approval at MC13 on further integration of small economies into the world trading system. Additionally, in January 2024, the Plastics Pollution Dialogue, comprising 76 WTO Members, reached agreement on a ministerial statement to be issued at MC13.

    Incorporation of JSI outcomes into WTO rulebook

    Since the stalemate of the Doha Development Agenda, some WTO members have turned to joint statement initiative discussions as a way to advance rule-making in the WTO in the areas of e-commerce, MSMEs, investment facilitation for development and domestic regulation in services trade. The JSI discussions have been criticized by some members, most prominently India and South Africa, as ‘illegal’ and lacking a formal mandate for the discussions. As such, the recently concluded Investment Facilitation for Development (IFD) Agreement’s incorporation as a plurilateral agreement under Annex 4 of the Marrakesh Agreement remains fraught. It would require consensus, including support from non-parties to the Agreement and from countries which oppose the JSI process. Six CARICOM Member States (Antigua & Barbuda, Barbados, Belize, Dominica, Grenada, Suriname) participated in the IFD Agreement negotiations and are among the 118 WTO members which support the Agreement.

    WTO Reform

    WTO reform has been an important agenda item, but the Doha Development Agenda stalemate and the Appellate Body crisis have reiterated the need to reform the institution’s dispute settlement function. A draft text on dispute settlement reform has elicited much discussion but there appears so far to be no way forward for the resumption of a two-tier system.

    Lots at stake

    Interestingly, the WTO’s MC13 will be taking place at the same time as the 46th Regular Heads of Government Meeting in Georgetown, Guyana, opening on Sunday, February 25. However, it is expected that at least some of CARICOM’s trade ministers will be at MC13, especially given the nature of the issues being discussed.

    In conclusion, there is a lot riding on MC13. MC13 cannot be divorced from the economic and political context in which it is occurring. For example, the fact that this is a ‘mega-election’ year with elections due in major countries, such as the US and India, for example, mean that there is added pressure on delegations to ensure that MC13 outcomes deliver for their own citizens and are politically palatable for their electorate. It is hoped that whatever the outcomes, they help to strengthen, revitalise and restore some confidence to an institution which, though not perfect, is indispensable for global trade and the wider global economy.

    Alicia Nicholls is an international trade consultant and founder of the Caribbean Trade Law & Development Blog www.caribbeantradelaw.com.

  • OECS WTO members underwent 4th WTO Trade Policy Review this week

    OECS WTO members underwent 4th WTO Trade Policy Review this week

    Alicia Nicholls

    On May 3-5, 2023, the World Trade Organisation (WTO) completed its fourth review of the trade policies and practices of the six Organisation of Eastern Caribbean States (OECS) WTO members. These are Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines. The OECS delegation was led by the Honourable Everly Paul Chet Greene, Minister of Foreign Affairs and Trade of Antigua and Barbuda, and Chair of the OECS Council of Ministers of Trade. The discussant was Her Excellency Ambassador Nadia Theodore, Permanent Representative of Canada to the WTO.

    WTO members, meeting as the Trade Policy Review Body, reviewed the WTO Secretariat’s Report and the reports from the Governments of those six countries. During the meeting, WTO members had the opportunity to seek clarity from the OECS delegation on various issues relating to their trade policies and practices. The Chairperson’s concluding remarks stated that 24 delegations had taken the floor over the two-day meeting and 169 advance written questions from 12 delegations had been submitted for the review.

    According to the chairperson’s concluding remarks, the OECS members were applauded for “the constructive role that the OECS-WTO Members play in the multilateral trading system” despite their small size. They also received praise for their open trade and investment regimes and strong support of environmental action. However, major concerns raised surrounded implementation of commitments under WTO agreements and the backlog in compliance with their WTO notifications. It was pointed out in the Secretariat report that this was likely because of capacity constraints and the fall-out from the COVID-19 pandemic.

    The OECS is a regional intergovernmental organisation and subregional integration movement in the Caribbean region which was formed in 1981 with the signing of the Treaty of Basseterre, subsequently revised. All OECS members are members of the Caribbean Community (CARICOM). Besides the six members mentioned (all six are sovereign States), it also includes a non-sovereign full member, Montserrat. These full members are part of the Eastern Caribbean Currency Union (ECCU) and therefore share a common currency, the Eastern Caribbean dollar. Its associate members are non-sovereigns: British Virgin Islands, Anguilla, Martinique and Guadeloupe.

    The TPR reports are made publicly available and are a rich source of information for trade analysts and potential investors of a country’s trade policies and its general trading and macroeconomic environment. The TPRB chairperson’s concluding remarks are released shortly after. The minutes of the meeting, as well as members questions, are also released about six weeks after the conclusion of the review.

    You can read the report and other documents here.

    Alicia Nicholls, B.Sc., M.Sc, LL.B. is an international trade specialist and founder of the Caribbean Trade Law and Development blog http://www.caribbeantradelaw.com.

  • Caribbean Trade and Development News Digest – October 15-22, 2022

    Caribbean Trade and Development News Digest – October 15-22, 2022

    Welcome to our Caribbean Trade and Development News Digest covering the week of October 15-22, 2022! 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. We do hope you enjoy this week’s edition!

    THIS WEEK’S HIGHLIGHTS

    This week (October 17-21) was World Trade and Environment week at the WTO. Throughout the week there were 17 interesting sessions on various aspects of the trade and environment nexus organised by WTO member governments, the WTO Secretariat and NGOs. Read more here.

    Coming up this week, Barbados has its fourth trade policy review at the WTO October 25 and 26. Read more here!

    REGIONAL NEWS

    BVI Premier keen on pushing agro-trade in OECS

    BVINews: Premier Dr Natalio Wheatley has expressed that the BVI should strengthen its ties with its partners in the Organisation of Eastern Caribbean States (OECS) by participating in agricultural trade, among other things. Read more

    WTO team currently in Dominica to conduct review

    Dominica News Online: A team from the World Trade Organization (WTO) is currently in Dominica to conduct a trade policy review. Read more

    OECS heads of governments commit to more functional participation in the bloc

    Antigua Observer: A number of heads of states pledged their commitment to improving the work of the Organisation of Eastern Caribbean States (OECS) when they met this week for the 72nd meeting of the OECS Authority. Read more

    Jamaica and UAE sign double taxation agreement

    CNW: The governments of Jamaica and the United Arab Emirates (UAE) have signed an agreement to avoid double taxation and the prevention of fiscal evasion with respect to taxes on income. Read more

    Jamaica poised to help certify Guyana’s food exports to US

    Demerara Waves: A Jamaican accreditation agency, which operates to United States Food and Drugs Administration (USFDA) standards, is offering to certify Guyana’s laboratories for food exports to that North American country, officials said late Thursday. Read more

    Jamaica Regulations to import and export medical ganja gazetted

    The Gleaner: Jamaica has strengthened its position as a major player in the medical ganja industry by formalising arrangements for the import, export, transit and trans-shipment of the herb to other countries that are also signatories to international drug conventions. Read more

    Six-month export revenues total US$801 million

    The Gleaner: Revenues from total exports amounted to US$801 million during the first half of 2022, between January and June, representing an increase of 2.3 per cent relative to the comparable 2021 period. Read more

    Latin America and Caribbean countries look towards India for trade diversification, experts urge dialogue

    Financial Express: “India-LAC trade nearly doubled over the past decade, reaching $42.5 billion in 2021 and there are over 160 Indian companies present in LAC with investments exceeding $30 billion, said Karin Costa Vazquez, Executive Director of the Center for African, Latin American and Caribbean Studies. Read more

    Agency coming to help Barbadian businesses get money to export

    Barbados Today: The Government of Barbados is working toward establishing an agency that will give manufacturing businesses easier access to financing to expand their operations. Read more

    Guyana, Grenada talk enhanced partnership

    Newsroom: Foreign Secretary of Guyana Robert M. Persaud recently met with Minister for Foreign Affairs, Trade and Export Development of Grenada Joseph Andall to discuss enhanced bilateral cooperation between Guyana and Grenada in several areas. Read more

    Cuba calls U.S. trade embargo a ‘hurricane’ that never ends

    Reuters: Cuba on Wednesday said the decades-old U.S. trade embargo has been causing record financial losses and untold human suffering in recent months, at a time when Cuba was also battling the effects of the COVID-19 pandemic and Hurricane Ian. Read more

    INTERNATIONAL NEWS

    ECLAC predicts economic growth will decelerate in LAC next year

    Jamaica Observer: The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) is predicting that economic growth will decelerate in Latin America and the Caribbean next year. Read more

    Rival trade bloc would lead to huge global GDP loss, says WTO boss

    Nikkei: Geopolitical tensions and the COVID-19 pandemic have prompted some governments to veer toward protectionism, but building more diverse supply chains would better serve the cause of global resilience, the chief of the World Trade Organization said in an interview. Read more

    Free trade agreement will boost intra-Africa deals, say 90pc CEOs

    Business Daily Africa: Nine in 10 African chief executives have confidence the actualisation and adoption of the free trade agreement will boost intra-African trade, a new survey shows. Read more

    Trade war tariffs have collapsed US imports of Chinese IT hardware and consumer electronics

    SCMP: Four years into the trade war, China has lost significant US market share in IT hardware and consumer electronics to Mexico and Taiwan, though its exports of low-end semiconductors have not yet been fully replaced, a new study has found. Read more

    Failure to renew key trade measure is hitting US manufacturers hard

    The Hill: As American manufacturers face mounting economic headwinds, an expired U.S. trade measure is inflicting unnecessary damage on our manufacturing sector which plays a critical role in strengthening our nation’s health and national security and historically paves the way in any economic recovery. Read more

    U.S.-India Trade Policy Forum set for November 8, modest outcomes likely

    The Hindu: The U.S.-India Trade Policy Forum (TPF) has been scheduled for November 8 in Washington DC, The Hindu has confirmed. U.S. trade officials are arriving in New Delhi next week to finalise issues for discussion , an Indian government official told The Hindu. Read more

    Three months into the Black Sea Grain Initiative: What’s been achieved — and why it’s important

    UN: Today marks three months since the signing of the Black Sea Grain Initiative – an agreement between Russia and Ukraine brokered by the United Nations and Türkiye to resume vital food exports from Ukrainian ports to the rest of the world amid the ongoing war there. Read more

    Dhaka to seek WTO’s net food importer status

    TBS News: The government has decided to apply to the World Trade Organization (WTO) for the status of a net food-importing developing country (NFIDC), which, commerce ministry officials say, will allow Bangladesh to provide subsidies on agricultural and food exports even after its LDC graduation. 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:

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