Caribbean Trade Law and Development

Tag: WTO

  • 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

    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:

  • US Revises and Resubmits Draft Proposal on Special & Differential Treatment at WTO

    US Revises and Resubmits Draft Proposal on Special & Differential Treatment at WTO

    Alicia Nicholls

    On November 25, 2019, the US recirculated a Draft General Council Decision entitled “Procedures to Strengthen the Negotiating Function of the WTO” for consideration by the World Trade Organization’s General Council – that organisation’s highest decision-making body – at its upcoming December 9-11, 2019 meeting.

    Background

    In recent times, the ability of WTO Members to self-designate as ‘developing countries’, and thereby be eligible for special and differential treatment under the WTO’s agreements, has become increasingly contentious. Thus far, the European Union (EU), Canada, the US and Norway have tabled proposals, which to varying degrees, call for a rethinking or reforming of the current eligibility model for special and differential treatment in the WTO. Developing countries, on the other hand, argue for a retention of the eligibility status quo, while noting that the focus should be on the Doha mandate of ensuring effectiveness of special and differential treatment.

    Earlier this year, the US took the call for reform a step further by not only tabling a lengthy paper in which it argued that self-designation risks condemning the WTO to institutional irrelevance, but followed this up with a draft General Council decision in which it proposed four non-cumulative, exclusionary criteria which would, if approved and implemented, exclude a large number of developing countries from eligibility from special and differential treatment in current and future WTO negotiations.

    Recall also that on July 26, 2019, United States (US) President Donald Trump signed a memorandum on reforming developing country status in the World Trade Organization (WTO). This memorandum mandated the United States Trade Representative (USTR) to secure changes to the current method of WTO members’ eligibility for special and differential treatment (S&DT) in the WTO. Failing this, it outlined specific steps the USTR should take.

    The resubmitted proposal

    The resubmitted proposal dated November 25, 2019 has been slightly amended. It still proposes four exclusionary and non-culminative criteria which, if approved and implemented, would preclude Members meeting any of the criteria from eligibility for special and differential treatment in current or future WTO negotiations or under any of the Agreements coming out of such negotiations. However, criteria three and four have been amended as follows (see bold text):

    i. A WTO Member that is a Member of the Organization for Economic Cooperation and Development (OECD), or a WTO Member that has begun the accession process to the OECD;
    ii. A WTO Member that is a member of the Group of 20 (G20);
    iii. A WTO Member that the World Bank has classified as a “high income” country for the three consecutive years immediately prior to the date of this decision or classifies as a “high income” country for a third consecutive year or any three consecutive years thereafter; or
    iv. A WTO Member that accounts for no less than 0.5 per cent of global merchandise trade (imports and exports) for the three consecutive calendar years immediately prior to the date of this decision or for a third consecutive year or any three consecutive years thereafter.

    It also added that “Nothing in this Decision precludes a Member seeking to address particular needs during a current or future WTO negotiation” .

    It is no secret that the US’ main targets are larger emerging economies, such as China and India, which continue to self-designate as developing countries. Indeed, the first two criteria are hardly problematic as a country which is an OECD or G20 member, or is acceding to the OECD, would have a level of economic clout that makes the argument for special and differential treatment unpalatable. Additionally, criterion 4 is meant to capture a number of emerging economies with shares of world merchandise trade of 0.5 percent or more.

    But much like the original proposal, criterion 3 of this revised proposal still unfortunately manages to potentially capture a few small States which really are deserving of special and differential treatment.

    Currently, four Caribbean countries (Antigua & Barbuda, Barbados, St. Kitts & Nevis and Trinidad & Tobago), and small States like Brunei Darussalam and Seychelles, which are presently classified as “high income” countries by the World Bank for lending purposes could potentially still be excluded from special and differential treatment if they have been classified by the World Bank as “high income” for a third consecutive year or any three consecutive years thereafter .

    The “high income” and the “upper middle income” classifications, have always been problematic for the Caribbean because they rely primarily on GNI per capita, an ineffective measure of development. It has been on this ineffective criterion that some Caribbean countries have been excluded from much needed concessionary financing.

    Introducing such a criterion into the WTO for the basis of determining development level would only continue this injustice. It would also be manifestly ‘anti-development’ because it would exclude these small countries from accessing flexibilities, such as longer transition times and technical assistance, needed in order to meet their WTO commitments under future WTO agreements.

    Moreover, these countries are too small to have any appreciable ability to affect or distort global trade. Perhaps it may be best to either remove the “high income” criterion from the US proposal, or at the very least, link it with another criterion like criterion four.

    On another note, the General Council will also, inter alia, be considering a draft decision on the functioning of the Appellate Body in a last ditch effort to save the WTO’s appellate jurisdiction.

    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.

  • Why the WTO Appellate Body Crisis Matters to the Caribbean

    Why the WTO Appellate Body Crisis Matters to the Caribbean

    Dr. Jan Yves Remy and Alicia Nicholls, SRC

    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. Their positions will not be filled if the current United States (US) blockage of appointments continues. This means that new appeals of panel decisions will not be heard after that date.  

    Given Caribbean countries’ limited and ‘checkered’ experience with the WTO dispute settlement (DS) system, it is tempting for the region to be blasé about the current impasse. However, as has been chronicled elsewhere, it is the smallest WTO Members that most need a functioning legal DS system to safeguard their interests when the powerful break the rules.

    In this latest SRC Trading Thoughts, we examine the possible “doomsday” scenario impending at the WTO and explain why Caribbean countries should be concerned by what portends if the AB no longer exists at the WTO.

    Read the full article here.

  • Caribbean Trade & Development News Digest – November 10-16, 2019

    Caribbean Trade & Development News Digest – November 10-16, 2019

    Welcome to the Caribbean Trade & Development News Digest for the week of November 10-16, 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

    The BRICS held their 11th Summit on November 14th in Brasilia, Brazil. Have a read of the summit declaration here.

    Coming up this week, Ministers of Trade in the Caribbean Community (CARICOM) will gather in Georgetown, Guyana, 18-19 November, for the 49th Regular Meeting of the Council for Trade and Economic Development (COTED).

    REGIONAL NEWS

    Check to see if CARICOM still relevant to Guyana

    Stabroek: The Georgetown Chamber of Commerce and Industry (GCCI) believes Guyana must review its place in CARICOM and decide whether it is beneficial to remain part of the block, and that the country should leverage the looming opportunities in the petroleum sector to secure better trade arrangements with sister States. Read more

    The Bahamas on the road to recovery

    UNDP: Catastrophic winds and storm surge have long since receded in the Bahamas, but the devastation caused by this summer’s Category Five Hurricane Dorian, the strongest in the country’s history, has left the islands staggering. Read more

    CDB, CARICOM in Pact to Expand Single Market

    St Kitts & Nevis Observer: The Caribbean Development Bank (CDB) and the Caribbean Community (CARICOM) have signed a memorandum of understanding (MoU) that will seek to facilitate regional integration and the expansion of the CARICOM Single Market and Economy (CSME). Read more

    Caricom sugar producers want 40% CET on imports

    Trinidad Daily Express: The Caribbean sugar industry is at a crossroads. Free market pressures, operational inefficiencies and sugar producers’ inability to meet manufacturers’ demand for refined white sugar have been a major source of frustration, resulting in an over-reliance on extra-regional sugar imports. Read more

    CARICOM SG calls for more affordable disaster insurance

    Stabroek: Secretary-General of the Caribbean Community (CARICOM) Irwin LaRocque wants the cost of natural disaster insurance to be more affordable. Read more

    INTERNATIONAL NEWS

    28 developing nations back India on OECD tax proposal

    Livemint: A group of 28 developing nations has backed India’s opposition to a set of new global rules for taxing tech giants being brokered by the Organisation for Economic Cooperation and Development. Read more

    BRICS Leaders Call for ‘Urgent’ Need to Reform UN, WTO, IMF to Address Issues of Developing Countries

    News18: Emphasising on their commitment to shape a more fair, just, equitable and representative multipolar international order, BRICS leaders underlined the imperative that international organisations be fully driven by member states and promote the interests of all. Read more

    BRICS summit condemns protectionism and pledges to overcome challenges faced by multilateralism

    Mercopress: Five of the biggest emerging economies railed against protectionism on Thursday as they vowed to overcome “significant challenges” facing multilateralism, in a swipe at US tariffs and unilateral action. Read more

    Pacific States to meet in Fiji

    Pacific Scoop: From 19 to 21 November, government officials from the Pacific region, together with the President of the Human Rights Council, Coly Seck of Senegal, and other representatives from Small Island Developing States (SIDS), will gather in Nadi, Fiji to explore ways to strengthen the participation of SIDS in the 47-member Council aiming to improve human rights conditions in their countries and in the region. Read more

    WTO rejects most of India’s claims against US steel duties

    Al Jazeera: The World Trade Organization also said the United States must bring a legislative provision into line with WTO rules. Read more

    U.S. Raises Prospect of Blocking Passage of WTO Budget

    Bloomberg: The Trump administration ratcheted up its pressure on the World Trade Organization by raising the possibility of blocking the approval of the institution’s biennial budget and effectively halting its work starting next year. Read more

    WTO members warn on post-Brexit market access

    RTE: World Trade Organization members have demanded compromises from the EU and Britain to ensure foreign businesses do not lose market access in post-Brexit trade. Read more

    Here’s What It Means to Be a WTO Developing Country

    WashingtonPost: President Donald Trump says it’s not fair for China to receive preferential trade benefits as a developing nation at the World Trade Organization. Trump’s argument is that China — the largest economy in the world after the U.S. — should not enjoy the kind of preferential trade treatment that’s really intended to bolster much poorer nations. Read more

    Australia and others ask for Brexit trade compensation

    BBC: Countries including Australia have asked for trade compensation from the UK and the EU over Brexit disruption. Read more

    Fifteen countries including Brazil, asking for trade compensations from UK/EU Brexit disruption

    Mercopress: Countries including Australia have asked for trade compensation from the UK and the EU over Brexit disruption. Fifteen countries, including the US, India and New Zealand, have been setting out Brexit concerns at a World Trade Organization (WTO) meeting in Geneva. Read more

    European Union launches WTO trade dispute against Colombia’s unfair duties on frozen fries

    EU: The EU has today brought a dispute to the World Trade Organization (WTO) against unlawful anti-dumping measures imposed by Colombia on frozen fries from Belgium, Germany and the Netherlands. Read more

    Jack Ma Sees E-Commerce as Africa’s Big Business Opportunity

    Bloomberg: Jack Ma, the co-founder of Alibaba Group Holding Ltd., said African entrepreneurs will find countless opportunities in e-commerce, logistics and e-payments as the continent prepares for the start of a free-trade deal. Read more

    Feature: Xi spearheads closer China-LatAm cooperation for common prosperity

    XInhua: China and Latin America sit on the opposite sides of the globe, but the formidably vast Pacific Ocean that separates them did not stop them from sharing a long history of exchanges. 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: