Caribbean Trade Law and Development

Tag: WTO

  • Caribbean Trade & Development News Digest – January 1-11, 2020

    Caribbean Trade & Development News Digest – January 1-11, 2020

    Happy New Year! Welcome to our first Caribbean Trade & Development News Digest for the year 2020! We trust you all had an enjoyable holiday season! We are happy to bring you the major trade and development headlines and analysis from across the Caribbean Region and the world for the first two weeks of 2020!

    There will be much to watch in trade this year so we look forward to you following the developments with us from week to week.

    HIGHLIGHTS

    The beginning of the year saw US-Iran tensions hit a boiling point. These tensions have simmered somewhat, and oil prices, which rose but not as high as expected, have since lowered in light of the ease in tensions.

    Global growth is set to rise by 2.5% this year, a small increase from 2.4% in 2019, as trade and investment gradually recover. This is according to the World Bank’s semi-annual Global Economic Prospects released January 2020.

    Regionally, on January 1, 2020, Barbados’ Prime Minister the Hon. Mia Amor Mottley took over the chairmanship of the Caribbean Community (CARICOM) under that organisation’s rotating chairmanship system. Read more here.

    A three-day CARICOM workshop was held this to discuss World Trade Organization (WTO) issues. It was hosted by the SRC and WTI in Barbados and attended by ambassadors, technocrats and other high-level trade professionals.

    A significant oil discovery has been made offshore another CARICOM Member State. This time, it is Suriname. Read here. Also recall that Guyana is now an oil producing nation.

    REGIONAL NEWS

    Caricom raises external tariffs on pasta, cement

    Newsday TT: CARICOM’s Council for the Trade and Economic Development (COTED) has increased the common external tariff (CET) on pasta and cement for one year. It came into effect on January 1. Read more

    Food, drink labelling to change

    Barbados Today: Makers of packaged food and drink products may be required to have front-of-package nutrition labels by year end, Barbados TODAY has learned. But manufacturers are said to be concerned that having to revamp their labels could come at a major cost with business still slow in a tight economy. Read more

    Two faces of WTO emerge at meeting

    Barbados Today: Even as the world’s major economic powers abandon the global rules-based system in ongoing trade feuds, an international think tank’s advisor has urged officials here and in the region not to give up on the World Trade Organisation (WTO). Read more

    Walcott insists multilateral trade must benefit all

    Barbados Today: Multilateral trade must redound to the benefit of all, regardless of size. Minister of Foreign Affairs and Foreign Trade, Senator Dr Jerome Walcott, made this declaration at a three-day CARICOM workshop held to discuss World Trade Organization (WTO) issues at the Savannah Beach Hotel, recently. Read more

    Poultry investor halts $7-$8 million investment over WTO uncertainty

    Eyewitness News (Bahamas): A poultry investor said yesterday it has put ‘on hold’ its $7-$8 million investment until the government makes clear its position going forward on the World Trade Organization (WTO). Read more

    Guyana rice exports valued at more than US$200 million

    Jamaica Observer: The Guyana Rice Development Board (GRDB) said it recorded a 20 per cent increase in revenue after exporting more than half a million tonnes of paddy, rice and rice by-products last year. Read more

    CARICOM needs united voice on global issues

    Barbados Advocate: If it has not been done already, the Caribbean Community and Common Market (CARICOM) states have to devise a strategy for the global political and economic tensions and developments which continue to characterize the world in which we live. Read more

    CARICOM countries need to prepare for fallout of US and Iran situation

    St Lucia News Online: A sug­ges­tion that CARI­COM heads meet as soon as pos­si­ble, and come up with a strat­e­gy to deal with any pos­si­ble fall­out or dan­ger­ous sce­nar­ios, re­sult­ing from the re­cent dé­tente be­tween the Unit­ed States and Iran. Read more

    CARICOM heads chided for lack of sports investment

    Caribbean Life News: Caribbean heads of governments have been accused of not keeping pace with their sportsmen and women because the politicians are failing to provide facilities to support athletes consistent with their worldwide successes. Read more

    Will the EU care about the Caribbean after Brexit?

    The Voice: It’s not just Britain’s attitude towards its former colonies that may change with its geopolitical divorce. Lyndon Mukasa says the European Union’s position is also of growing interest. Read more

    UK expands its presence in Commonwealth countries

    Barbados Advocate: THE United Kingdom’s representation in the Commonwealth countries of the Eastern Caribbean has expanded over the last year. Read more

    Venezuela remains one of Guyana’s biggest rice buyers, despite no PetroCaribe deal

    Demerara Waves: Venezuela is Guyana’s biggest rice market, accounting for 34 percent or 177,682 tonnes of all that grain exported to several Latin American countries the Guyana Rice Development Board (GRDB) said in a statement. Read more

    INTERNATIONAL NEWS

    Oil rises as US-Iran conflict eases, focus turns to trade deal

    CNBC: Oil prices rose slightly on Monday as investors shift their focus away from easing Mideast tensions to this week’s scheduled signing of an initial U.S.-China trade deal which could boost economic growth and demand. Read more

    Brexit: MPs give final backing to Withdrawal Agreement Bill

    BBC: MPs have given their final backing to the bill that will implement the UK government’s Brexit deal. The Commons voted 330 to 231 in favour of the Withdrawal Agreement Bill and it will now pass to the House of Lords for further scrutiny next week. Read more

    Grassley pins blame for USMCA holdup on impeachment

    Politico: Senate Finance Chairman Chuck Grassley on Friday blamed House Speaker Nancy Pelosi for holding up passage of the new North American trade pact after she held off sending the articles of impeachment to the Senate. Read more

    IMO 2020: New Shipping Fuel Requirements Enter Into Force

    Hellenic shipping news: January 1, 2020 marked the implementation of the new sulphur oxide limit for shipping fuel imposed by the International Maritime Organisation under the MARPOL Convention, often referred to as IMO 2020. Read more

    US-China Trade War Seen as Boosting Vietnam Growth

    VoA: Vietnam has been a beneficiary of the China-U.S. trade war, enjoying a boost in services and exports that should drive economic growth to 7% this year, HSBC economist Yun Liu said last week. But she said the country remains vulnerable to economic risks including trade protection and inflation. Read more

    Brexit: EU ‘won’t be rushed’ on trade deal, says Simon Coveney

    BBC: The EU “will not be rushed” on a trade deal with the UK after Brexit, according to Ireland’s deputy PM. Boris Johnson says a deal can be agreed by the end of 2020 and has included a pledge in his Brexit bill not to extend any transition period to secure one. Read more

    Europe, Scotland and Brexit – what next?

    EU Observer: Last month’s UK general election will undoubtedly be remembered for the Conservative Party’s historic victory and the long-awaited clarity on Brexit. Yet the vote was not uniform across the UK. In Scotland, the Scottish National Party (SNP) secured an even more emphatic result, taking 47 of the nation’s 59 Westminster seats. Read more

    Here’s how the WTO can help address plastic pollution

    World Economic Forum: Trade plays a central role in plastic pollution and in the global plastics economy. Amid impressive and multiplying efforts across the globe to address plastic pollution, however, the relevance of trade to the production, consumption and disposal of plastics has been underestimated. Read more

    What to Expect in the January 2020 Session of UNCITRAL Working Group III on ISDS Reform

    IISD: In January 2020, Working Group III (WG III) of UNCITRAL will convene in Vienna to work on possible ISDS reform. 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:

  • 10 Trade Policy Developments to watch in 2020

    10 Trade Policy Developments to watch in 2020

    Alicia Nicholls

    Happy New Year! It is both a new year and a new decade, but several stories we were following in 2019 have spilled over into 2020. 2019 started off as a year of uncertainty and volatility with increased trade restrictive measures and slowing global merchandise trade growth and foreign direct investment (FDI) flows.

    Towards the end of 2019 some positive developments occurred and so 2020 does present some potential bright spots, such as the likely ratification of the US-Mexico-Canada (USMCA) Agreement, a now definitive date for Brexit and what appears to be an initial US/China deal.

    There are many things which are likely to impact global trade in 2020, including geopolitical developments, technological advancements, data privacy rules, climate change and the growing demand for more environmentally-friendly goods and services. All of these have the potential to either positively or negatively impact, inter alia, freight rates, supply chains and firms’ import, export and investment decisions, and on a wider scale, the global economy.

    While this is not meant to be an exhaustive list, here are the top ten trade developments we will be watching in 2020:

    1. WTO Reform

    The WTO is celebrating its 25th year of existence, but is also facing several challenges which threaten to undermine some seventy years of a rules-based multilateral trading system. Key this year to watch will be whether there will be a solution to the now defunct Appellate Body, and whether there will finally be a conclusion to the fisheries subsidies negotiations which again failed to yield an agreement last year. The US also continues to argue for a revamping of the current system of eligibility for Special & Differential Treatment. The 12th WTO Ministerial Conference will be held in Nur-Sultan, Kazahstan in June 2020, and will therefore be one of the organisation’s most important ministerial meetings to watch.

    2. Brexit

    After several missed deadlines for leaving the European Union (EU), the decisive victory handed to the Conservatives in the December 12, 2019 snap United Kingdom (UK) election meant that Prime Minister Boris Johnson was able to get parliamentary approval of his deal with the EU. The UK is now on track to leave the current 28-member grouping on January 31, 2020. Some political and economic uncertainty remains, however, especially with the stronger electoral performance of the Scottish National Party (SNP). Will the Scottish opposition to leaving the EU undermine the unity of the UK and will there be yet another Scottish independence referendum? What kind of post-Brexit trade agreement will the UK and EU eventually negotiate?  

    3. Trade Wars: US/China and Japan/South Korea

    After a year of continued touch and go negotiations and escalating tensions between the US and China, a ‘Phase One’ trade deal, which was announced in December 2019, will be signed January 15, 2020. The text of the Agreement has not yet been released, but it reportedly contains chapters on intellectual property, technology transfer, agriculture, financial services, unfair currency practices, trade expansion and dispute resolution. Under the agreement, China has agreed to increase imports from the US, and the US has deferred implementing the List 4B Section 301 tariffs which were to have come into effect on December 15, 2019 and decreased some of the List 4A tariffs.

    Receiving much less attention is the Japan-South Korea trade tensions which escalated in summer 2019 with fears that it could have harmed the global economy. The two Asian economic behemoths have had a challenging political history, but tensions flared up in July 2019 when Japan restricted the export of three chemicals (fluorinated polyamides, photoresists, and hydrogen fluoride) to South Korea. Japan is the major exporter of these chemicals which are needed in the production of semi-conductors and display screens – top export products for South Korea. Senior-level negotiations between the two countries were held in December and there appears to be some de-escalation in tensions.

    4. US Presidential Election

    Without doubt, the inauguration of President Donald Trump in 2017 saw a radical shift in the US’ trade and foreign policy. At this stage, it is unclear who the democratic nominee will be. However, trade policy is likely to be a major issue in the US election campaign, and even among the current democratic contenders there are some differences in their approaches to trade policy.

    What is certain, however, is that a Trump re-election in November 2020 would entail four more years of economic nationalism, a continued retreat from multilateralism, undermining of the rules-based multilateral trading system, and climate change denial.

    4. Regional Trade Agreements: USMCA, RCEP and AfCFTA

    After much uncertainty about the fate of the US-Mexico-Canada Agreement (USMCA) – the agreement which seeks to update and replace the NAFTA – a revised agreement was eventually signed in December 2019. It will need to be ratified by each of three parties in order to enter into force.

    Another agreement to watch will be the Regional Comprehensive Economic Partnership (RCEP) whose negotiations began in 2012. At the Bangkok Summit in November 2019, it was announced that the text has been agreed. Although India pulled out of the RCEP negotiations, it appears that the remaining fifteen parties are on track to sign the Agreement in 2020.

    Phase II negotiations on the operationalisation of the Africa Continental Free Trade Agreement (AfCFTA) will begin in 2020 and will focus on investment, competition policy and intellectual property.

    5. IMO shipping fuel standards

    The United Nations International Maritime Organisation (IMO) Low Sulphur Regulation comes into effect January 1, 2020. From this date, the IMO requires all shipping companies to reduce their sulphur emissions by 85%. The sulphur in fuel oil must be reduced to 0,50 from 3,50% for all sea-going vessels. This is an important move for reducing shipping emissions, although concerns have been raised about the possible freight rate increases.

    6. ACP-EU Post-Cotonou Negotiations

    The Cotonou Agreement – the partnership agreement which sets the framework for cooperation between the European Union (EU) on the one hand, and the countries of the ACP (renamed to the Organisation of the African, Caribbean and Pacific Group of States (OACPS) – is due to expire in 2020. The Cotonou Agreement was signed in 2000 and revised in 2010. Negotiations on a successor agreement will continue into 2020.

    7. Second Review of the EU-CARIFORUM EPA

    2020 would make it twelve years since the EU-CARIFORUM EPA has been provisionally applied between the EU and CARIFORUM countries. The second review on the implementation and impact of the EPA is currently on-going and consultations were held in 2019. The first EPA review in 2014 found that the EPA had not led to a significant increase in CARIFORUM exports to the EU, and there was still implementation work to be still done on both ends. The results of the second review will be important to gauging what additional progress has been made.

    8. Pending CCJ Advisory Opinion on freedom of movement

    The Caribbean Court of Justice (CCJ) will this year deliver its first advisory opinion pursuant to Article 212 of the Revised Treaty of Chaguaramas (RTC) on the circumstances under which it is lawful for CARICOM Member States to “opt-out” of CARICOM Heads of Government decisions that involve fundamental objectives of the Community. Last year the Court held a two-day hearing where it heard oral submissions. The ruling will be critical to clarifying Community law on opt-outs.

    9. UNCTAD XV – October 2020

    All eyes will be on Barbados and the United Arab Emirates in October 2020 when the two nations will co-host the UNCTAD XV quadrennial. This will be a good opportunity for Barbados to help influence the trade and development agenda for the next four years, highlighting issues such as climate change and small States issues.

    10. COP26 Climate Talks

    2020 is a ‘make or break’ year for climate action. By most measures, the UNFCCC COP25 was a disappointment despite being the longest UN climate talks on record. Agreement on Paris Agreement Article 6 (carbon markets) and common timeframes, for instance, remains elusive and has been pushed back again to COP26. It should be noted that 2020 is the year when parties are expected to undertake their first global stocktake under the Paris Agreement and ratchet up their climate ambition by submitting more ambitious nationally determined contributions (NDCs). Climate change both impacts and is impacted by trade. As such, these talks will be key to follow.

    As usual, we at the CTLD Blog will be monitoring these developments. We welcome you to follow them with us by reading our weekly Caribbean Trade & Development News Digests. You can subscribe here to receive the mailings directly to your inbox:

    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 9-14, 2019 – Christmas Edition

    Caribbean Trade & Development News Digest – December 9-14, 2019 – Christmas Edition

    Welcome to our final Caribbean Trade & Development News Digest for the year 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 week of December 9-14, 2019! We do hope that you have enjoyed our Digests over the past year!

    THIS WEEK’S HIGHLIGHTS

    Several major trade developments happened this week. It is quite a mouthful so let us go one by one, starting with the bad and ending with the good:

    The bad

    One sad development is that as of December 11, the WTO’s Appellate Body no longer has the quorum required to hear new appeals to panel decisions. It was later reported that the two outgoing Appellate Body members will stay on temporarily to complete some existing appeals. Read more here.

    The WTO Director-General’s annual report to the TPRB of trade-related developments shows that between mid-October 2018 and mid-October 2019, the trade coverage of import-restrictive measures implemented by members was estimated at USD 747 billion – the highest trade coverage recorded since October 2012. Read the full news item here.

    On the COP25, the climate talks have ended with a compromise. Read here

    The good

    Some good news is that the WTO’s General Council at its last meeting for the year has approved the WTO’s budget for 2020 and extended two important moratoria related to customs duties on electronic transmissions and the initiation of “non-violation” complaints under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Read more here.

    Additionally, the Trump Administration finally struck a deal with congressional Democrats on changes to the USMCA – the agreement to replace NAFTA. This should hopefully clear the path for US domestic ratification of the deal which was originally signed in November 2018 and whose amended version was signed by the three countries this week. Read the Protocol of Amendment here.

    The 9th ACP Summit of Heads of State and Government was held this week in Nairobi, Kenya from December 9-10. The ACP has been renamed the Organisation of Africa, Caribbean and Pacific States (OACPS).

    Turning to Brexit, the British electorate has given the ruling Conservative Party a decisive win. Does this mean a clear path forward now for Brexit? Maybe or maybe not. Read my commentary on it here!

    On the US-China trade war front, the US and China have announced completion of a ‘phase one’ trade deal. As such, the anticipated December 15, US tariffs on Chinese goods have not been implemented.

    REGIONAL NEWS

    CARICOM countries to benefit from global e-mobility programme

    Dominica News Online: Three Caribbean Community (CARICOM) countries are to benefit from a new Global Environment Facility (GEF) global e-mobility programme that has been launched at the ongoing United Nations Climate Change Conference (COP25). Read more

    UWI Strengthening Canada-Caribbean Relations

    UWI: Vice-Chancellor of The University of the West Indies (The UWI), Professor Sir Hilary Beckles is pleased to announce that the proposal for the establishment of the Canada-Caribbean Institute (CCI) was approved at a meeting of the University Finance and General Purposes Committee UFGPC) on October 30, 2019. Read more

    Barbados ‘may seek WTO ease’ on milling competition

    Barbados Today: Competition is heating up among the regional flour mills, threatening the milling industry in Barbados and the wider region, the industry and commerce minister said today, suggesting that Barbados ought to appeal to global trade arbiter for protection against extra-regional suppliers. Read more

    WTO: Are we in or out?

    EyeWitness News: The country’s World Trade Organization (WTO) accession has effectively come to a standstill, the nation’s chief negotiator has confirmed. Read more

    Social Media ‘Untruths’ Impact Bid To Join Wto

    The Tribune: The Bahamas’ bid to attain full World Trade Organisation (WTO) membership has been made harder by the spread of untruths on social media, the Government’s top negotiator has argued. Read more

    Wto: Bahamas May Have To Open Reserved Industries

    The Tribune: The Bahamas may have to open some of the 16 industries reserved solely for local ownership to foreign competition in becoming a full WTO member, the government’s top negotiator is warning. Read more

    Bahamas must flip approach to WTO

    The Tribune: The Bahamas should go “full steam ahead” in pursuing World Trade Organisation (WTO) membership through a private sector-driven approach that improves competitiveness, an attorney is arguing. Read more

    Belarus and Barbados establish diplomatic ties

    Belarus News: Permanent Representative of Belarus to the UN Valentin Rybakov and Permanent Representative of Barbados to the UN Henrietta Elizabeth Thompson signed a joint communique to establish diplomatic relations between the countries, BelTA learned from the press service of the Belarusian Ministry of Foreign Affairs. Read more

    Action Being Taken To Make The Export Of Goods And Services Easier

    JIS: State Minister for Industry, Commerce, Agriculture and Fisheries, Hon. Floyd Green, says the Government is working to make the export of local goods and services easier, by reducing the associated costs and processes. Read more

    South Holland Council is working on trading links with Jamaica

    Spalding Today: Officials have been forging closer relationships for trading produce between South Holland and Jamaica. Read more

    AMCHAM Jamaica signs MoU with US Embassy

    Jamaica Observer: United States Ambassador to Jamaica, Donald Tapia today signed a Memorandum of Understanding (MoU) with the American Chamber of Commerce of Jamaica (AMCHAM Jamaica) cementing the business relationship between the two organisations. Read more

    CARICOM and AFRICA – The Ties That Bind

    New York CaribNews: We are pleased to see the furtherance of collaboration between Africa takes another step with the opening of a CARICOM Office in Nairobi, Kenya. The Pan African movement of decades ago promoted the cultural heritage and historic ties and one that should also involve economic development. Read more

    Jampro Eyes Threefold Export Sales Growth For Max III Companies

    Jamaica Gleaner: Jampro president Diane Edwards is ­expecting the third cohort of companies selected for the Export Max programme to triple their export sales through their participation in the initiative. Read more

    Africa to open air and sea for trade with Caribbean and Pacific

    Star: The ninth African, Caribbean and Pacific (ACP) ended in Nairobi on Tuesday, with 79 countries pledging to promote inter Africa trade against unfair global trade practices. Read more

    79-member ACP now Organisation of African, Caribbean and Pacific States

    Jamaica Observer: The African, Caribbean and Pacific (ACP) Group yesterday ended a two-day summit here, agreeing to rename the 45-year-old organisation as the Organisation of African, Caribbean and Pacific States (OACPS). Read more

    INTERNATIONAL NEWS

    WTO chief: ‘Months’ needed to fix disputes body

    BBC: Director General of the World Trade Organisation Roberto Azevedo says it will take “a few months” to fix its main body for settling trade disputes. Read more

    What’s in the U.S.-China ‘phase one’ trade deal

    Reuters: The United States and China have agreed on the terms of a “phase one” trade deal that reduces some U.S. tariffs on Chinese goods while boosting Chinese purchases of American farm, energy and manufactured goods and addressing some U.S. complaints about intellectual property practices. Read more

    US, Mexico, Canada sign USMCA trade deal

    DW: Canada, Mexico and the United States have reached an agreement on a revised North American free trade pact. The deal, seen as a replacement for the 25-year-old NAFTA, is the result of more than two years of wrangling. Read more

    New North America Trade Deal Seen as Template for Deals to Come

    WSJ: USMCA’s provisions could find their way into other trade deals, based on Trump administration’s reworking of Nafta. Read more

    Evaluating the new USMCA

    CATO: Read the analysis from CATO Institute on the new USMCA. Read more

    ACP renamed as the Organisation of African, Caribbean and Pacific States

    Papua New Guinea Today: The 9th Summit of Africa, Caribbean and Pacific (ACP) Head of States and Government Tuesday approved the renaming of the group to be now called the Organisation of African, Caribbean and Pacific States (OACPS). Read more

    UK must be loyal on standards in return for market access – Macron

    The Guardian: Emmanuel Macron has warned Boris Johnson that the UK must remain “loyal” to EU standards post-Brexit for British companies to maintain access to the European market. Read more

    Sturgeon: Scotland wants different future from rest of UK

    BBC: SNP leader says election results made clear Scottish voters don’t want a Boris Johnson government or Brexit. Read more

    Michael Gove promises Brexit trade deal with EU by end of 2020

    Guardian: Minister says transitional arrangements will definitely stop on 31 December next year. Read more

    Election results 2019: Five big things on Boris Johnson’s to-do list

    BBC: With a substantial majority in Parliament, Boris Johnson can push ahead with his plans, confident that MPs will back them. So, what’s in the prime minister’s in-tray as he returns to work in Downing Street? Read more

    Brexit and EU trade deal are Boris Johnson’s priorities, says Michael Gove

    EU Today: The top priority of British Prime Minister Boris Johnson’s government is to leave the European Union on January 31st, and to secure a new trade deal with the EU by the end of next year, cabinet office minister Michael Gove, who is likely to be the UK’s lead trade negotiator with the EU, said on Sunday. Read more

    Europe reacts: Time frame for post-Brexit trade deal ‘is challenging’, says EU chief

    Euronews: The European Union have welcomed Boris Johnson’s thumping general election victory, calling for the Brexit deal to be ratified as soon as possible with Commission President Ursula von der Leyen stressing that “the time frame ahead of us is very challenging”. Read more

    Australian trade to be a winner in post-Brexit world, Brandis says

    The Sydney Morning Herald: Australia’s top envoy in London says political obstacles in the path of a massive free-trade agreement between Boris Johnson and Donald Trump leave Prime Minister Scott Morrison as the frontrunner to strike the world’s first post-Brexit economic deal with the United Kingdom. Read more

    ACP summit ends with adoption of resolutions to boost multilateralism

    XInhua: The ninth summit of African Caribbean and Pacific (ACP) heads of state and government ended in Nairobi on Tuesday with the adoption of resolutions to promote a rules-based international order. Read more

    WTO Appeals Judges to Stay On to Complete Several Decisions-WTO Official

    NY Times: World Trade Organization (WTO) judges will complete decisions on three pending appeals for which hearings have been held – despite the collapse of the Appellate Body earlier this week – a WTO official said on Thursday. Read more

    Experts call for integrating digital economy with AfCFTA to spur Africa’s development

    News Ghana: African experts and policymakers on Thursday called for integrating the digital economy with the Africa Continental Free Trade Area Agreement (AfCFTA) so as to harness potentials of the continental free trade pact. Read more

    Experts meet to validate African Continental Free Trade Area (AfCFTA) Business Index

    Business Ghana: The aim of the index is to provide an assessment of the extent to which businesses across Africa find trading across borders in Africa challenging, and to identify the main barriers to trade. Read more

    Cut red tape to boost trade, Uhuru urges Africa, Caribbean, Pacific states

    Business Today: President Uhuru Kenyatta has called for improvement of regulatory and institutional frameworks to promote faster economic growth among developing countries in Africa and the Caribbean. Read more

    The African Continental Free Trade Area Could Boost African Agency in International Trade

    Chatham House: The agreement, which entered into force in May, could be a major step for Africa’s role in international trade, if the continent can overcome barriers to implementation. Read more

    Uhuru seeks to review skewed EU trade agreements

    Nation: President Uhuru Kenyatta has termed current trade agreements with the European Union as largely imbalanced. 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:

  • 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.