1	Caribbean Priorities in Aid for Trade AITIC/ICDF Seminar on Trade Related Assistance in the Caribbean Region Bay Gardens Beach Resort, St. Lucia, June 15-17, 2009 Natallie Rochester Services Analyst Caribbean Regional Negotiating Machinery nrochester@crnm.org/ www.crnm.org
2	Intra-Caribbean Trade Coordination Caribbean SVEs in the WTO: Antigua & Barbuda, Barbados, Belize, Cuba, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, St. Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago ** (The Bahamas is in the process of WTO Accession) Coordinated approach to AfT to support CARICOM Regional Integration agenda Wider Caribbean approach at CARIFORUM-EPA level General CARIFORUM coordination includes Cuba
3	Snapshot of Caribbean Economies Mix of high income (ATG, BHS, BRB,TTO), upper middle (BLZ,CUB,DMA, GRD, JAM,KNA,LCA, VCT), lower middle (DR,GUY), low income/LDC (HTI) (World Bank April 2009) High trade openness Low & stagnant GDP Growth rates Highly indebted Largely dependent on services, esp. tourism (except Guyana, TT, DR, Haiti) Narrow range of goods exports Mainly small island states except Belize, Guyana, Suriname which are low-lying coastal
4	Caribbean Trade Relations World Trade Organisation (The Bahamas in the process of accession) Several Caribbean countries are non-resident (Belize, Guyana, Suriname) OECS represented at the regional level in Geneva CARIFORUM-EC EPA CARICOM FTA with Costa Rica cover services; others goods only - Cuba, Colombia, Venezuela CARICOM to start negotiations with Canada in 2009 CARICOM ongoing discussion with US on trade & investment DR has FTAs with US (very ambitious), Panama, and negotiating with Canada since October 2007 Intra-regional trade: CARICOM Single Market and Economy, CARICOM-DR FTA, CARICOM-Cuba
5	Process of Defining Caribbean Trade Priorities Similar effort under the FTAA Hemispheric Cooperation Programme – preparation for & participation in negotiations, implementation of trade agreements Coordination at the WTO level (ACP, SVEs, ad hoc Groups for specific negotiations) Meetings of CARICOM, CARIFORUM, ACS,OECS Technical Working Groups on Development & Specific Trade Disciplines National level development plans, export strategies etc. Industry level analysis and advocacy
6	The Objectives of Aid for Trade Aid for Trade should aim to help developing countries, particularly LDCs, to build the supply-side capacity and trade-related infrastructure that they need to assist them to implement and benefit from WTO Agreements and more broadly to expand their trade The Director-General was invited “to consult with Members as well as with the IMF and World Bank, relevant international organisations and the regional development banks with a view to reporting to the General Council on appropriate mechanisms to secure additional financial resources for Aid for Trade, where appropriate through grants and concessional loans”. (WTO Hong Kong Ministerial Declaration, December 2005) Interventions that improve capacity to benefit from trade expansion and integration into the world economy (Joint WTO/IDB/OECD Background Paper on Aid for Trade, WT/COMTD/AFT/W/13, June 2009)
7	WTO/OECD Self Assessment Questionnaires Circulated December 2008 by the IDB 12 options for AfT priorities under the broad headings (i) trade policy and regulation (ii) economic infrastructure (iii) building productive capacity (iv) other priorities 14 Caribbean countries responded Responses sent to the WTO and OECD Countries view the responses as indicative Second Global Review of AfT scheduled for July 6-7, 2009 , Geneva
8	Caribbean Responses to WTO/OECD Self Assessment Questionnaires (WT/COMTD/AFT/W/13)
9	Caribbean Specific Aid for Trade Priorities Trade policy and regulations Analysis, development, negotiations & facilitation Implementation of Trade Agreements Building productive capacity Private Sector Development Competitiveness Network Infrastructure Trade related infrastructure (Transportation) Infrastructure networks Other Regional Integration and Cooperation Adjustment Costs of Trade Liberalisation
10	Caribbean Specific Aid for Trade Priorities – Possible activities Trade policy and regulations Analysis, development, negotiations & facilitation Impact assessment of possible negotiating positions Improve data collection systems Business facilitation e.g market intelligence, business to business matching Implementation of Trade Agreements Doha Round obligations (new & clarification of existing rules) – services, fisheries subsidies disciplines, Tariff liberalisation (NAMA, Agriculture), IP, trade remedies (new legislation, institutions, notification requirements etc) Coherence with EPA Implementation agenda Building productive capacity Private Sector Development /Competitiveness small scale/artisanal fishing - assistance in improving efficiency in harvesting, processing and marketing value chain analysis for agro products as a basis for improving value addition returns to producers for domestic, regional and global markets diversification of the tourism product Better domestic regulation – clear registration, certification procedures
11	Caribbean Specific Aid for Trade Priorities – Possible activities for support Network Infrastructure Trade related infrastructure (Transportation) Needed to facilitate increased productive capacity Must be integrated and multi-modal Infrastructure networks E-commerce platforms & training in their use Other Regional Integration and Cooperation Harmonisation of regimes for improved efficiency Adjustment Costs of Trade Liberalisation Adjustment to preference erosion Adjustment to new tariff Implementation of new rules on trade & trade-related issues
12	Potential Role for Aid for Trade in Meeting Caribbean Trade Related Needs Reduce need for new loans for increasing trade capacity Improve regulatory framework for trade through trade ‘mainstreaming’ Support for regional integration – political and economic Improve systems needed for intra-regional trade Increase developing country participation in the global economy through increased trade capacity Mitigate debt effect by increasing income from trade
13	Aid for Trade Flows to the Caribbean Antigua and Barbuda, Barbados, Belize, Trinidad and Tobago, St. Vincent & Grenadines, and Cuba) received more than 80 per cent of their aid in productive capacity building (listed in declining order) St. Lucia, Guyana, Suriname, Dominican Republic, and Grenada received 50-70 per cent in productive capacity building. Haiti, Jamaica, and Dominica received more AFT for economic infrastructure than productive capacity building (Source: WTO, WT/COMTD/AFT/W/13, based on OECD Creditor Reporting System)
14	Aid for Trade Flows to the Caribbean
15	Priority Areas for Improving AfT Implementation and Effectiveness Caribbean responses: Better predictability of AfT funding Stronger donor focus on local capacity development Greater input in design of interventions
16	Concerns Related to the AfT approach Definitional issues have not really been resolved, but analysis on general TRA being credited to AfT process & used as basis for AfT Actions WTO/OECD targeting lower income & LDC, most Caribbean countries outside of these categories on paper but need assistance Not clear what new funds/resources will be committed – futile to repackage, countries losing confidence in partners Responses to the questionnaires should be treated as indicative and not a static set of needs; more in-country consultations seem to be needed Risk that needs are being tailored to suit donor programmes
17	Conclusions Terms of AfT as a distinct concept needs to be defined Caribbean countries are vulnerable and require trade-related assistance under AfT Most Caribbean countries are not the primary target beneficiaries for AfT Priority areas are complementary & need concurrent efforts Caribbean countries should lead in defining specific needs & activities & getting stakeholder support for these Caribbean interaction with donors on AfT needs harmonisation to avoid overlap from different levels of intra-Caribbean coordination & inefficient use of resources
18	Next Steps - Ensuring Tangible Benefits for the Caribbean from AfT Seek clear commitment to new resources for AfT for the Caribbean for specific types of activities Conduct value chain analysis to assess opportunities in the global market Identify specific priority sectors and projects for a regional ‘Roadmap’ Institute enabling policies for priority sectors Compare national approaches, experience sharing e.g. developing legislation Monitor donor assistance and drive donor coordination Ensure effectiveness of interventions through: (i) Feasibility assessment (ii) Timeliness of execution Monitor trade trends & progress and impact of interventions at the Caribbean level