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Trade Watch
This page was last edited on: Tuesday, March 16, 1999 07:14:40 PM
BANANAS CONTINUE TO DOMINATE THE MEDIA
Reaction to the US action to require Customs bonds on the importation of selected EU
imports continued to dominate the media last week. The US has insisted that it was
acting within it rights when it decided to begin withholding liquidation on EU imports in
the bananas case. Much has been made by the US that "duties have not been
imposed" but most observers agree that the effect of the Customs requirement is
equivalent to the actual tax being in place.
A special meeting of the General Council was held on March 8th at which WTO member states
aired their views, but had no authority to take any decision in the case. The EU said it
requested the meeting to urge other countries to condemn the United States for its
decision to begin withholding liquidation on imports of selected EU products valued at
over $500 million.
The Director General of the WTO released a carefully worded statement calling for
consultation, noting that a recommendation was expected from the Arbitrators in just a few
weeks He said "We have given to the same individuals the task of
arbitrating the level of suspension and the consistency of the new EU measures with the
rules of the WTO. In the next few weeks, we will have both determinations...... The
rule-based system is working and will continue to work, even if there are different
interpretations about some important aspects related to the banana issue".
According to the director, the WTO must better clarify the systemic issues concerning the
differences between the two parties over the relationship between Article 21.5 and Article
22 which deal with compensation and timing. The DSB will begin examination of these issues
at a first meeting on the 16 March.
In an effort to present the Caribbean side, the Eastern Caribbean States Embassies in
Brussels on Friday released a note "Setting the Record Straight" which will be
circulated to TRADEWATCH recipients. RETURN TO TOP
EU ADOPTS NEW LATIN AMERICA
POLICY FOR THE 21ST CENTURY
The European Commission says it is giving a fresh impetus to political, economic and trade
co-operation through adoption of a new Communication on its relations with Latin America
(LA). The Communication (policy document) aims at setting out the main themes for
reflection relating to future relations between the EU and Latin America before the next
Summit at Rio de Janeiro (28-29 June), which will be the first meeting to bring together
the Heads of State and Government of the EU, LA and the Caribbean. The Communication
defines political, economic and commercial co-operation.
According to the Communication, the Summit offers a unique opportunity to emphasise the
specific features of the European approach towards the sub-continent of LA and to define
the pillars of EU relations with their partners :
Political and strategic issues: The aim is to establish a mutually advantageous strategic
partnership enabling both regions to put across their views more effectively in
international forums and multilateral organisations.
Economic and trade issues: The desired objective is the smooth integration of different
regions' economies into the global economy, while supporting economic and political
reforms to help reduce social tensions, consolidate domestic markets and thereby boost
resistance to financial upheavals.
Co-operation: In what remains a fundamental area of Europe's strategy, the objective is to
maximise the impact of the resources mobilised and focus them on the less-developed
countries and agreed priorities.
It notes that EU-Latin America relations have developed rapidly and fruitfully, passing
through three stages: priority on development co-operation; moves to foster economic
partnership; and, the present stage, which is rooted in a regional approach and observance
of democratic principles and human rights.
In the case of economically more developed partners such as Mercosur, Chile and Mexico,
the emphasis has been on strengthening economic ties and substantially developing
political dialogue. With Central America and the Andean Community, there has, in contrast,
been an emphasis on strengthening development co-operation and preferential access to
European markets.
In 1995 the EU adopted a strategy to strengthen this partnership in the period 1996-2000
in a way that was supposed to take account of the diversity of Latin America. This
communication paid scant attention to the special situation of the Caribbean ACP members.
This latest communication will need to be examined in that regard. RETURN TO TOP
SECOND ACS SUMMIT IN THE
DOMINICAN REPUBLIC IN APRIL
The Second Summit takes place in Santo Domingo, the Dominican Republic, on April 16 and
17. The First ACS Summit was held in Port of Spain in August 1995. The first working
session will consider the ACS's progress over the past four years, after which several
presentations on various topics will be made by Member States. Heads will also hold a
private meeting on April 17 to allow for a frank and full exchange of ideas. It is
expected that Heads will issue their Declaration of Santo Domingo which will outline their
vision for the next phase of the development of the ACS.
A First Preparatory Meeting for the Second Summit was convened at the ACS Secretariat in
Port of Spain, on February 22 and 23. A draft agenda for the Summit was approved at
that meeting and it was agreed that the first topic on the agenda would include an
assessment of the implementation of the Plan of Action on Tourism, Trade and Transport
issued by the Port of Spain Summit. It was also agreed that a specific section under
this heading would be devoted to the establishment of a Caribbean Sustainable Tourism Zone
(STZ). It is expected that Heads will adopt the Agreement on the Sustainable Tourism Zone
after a Memorandum of Understanding (MOU) for the establishment of this Zone is signed by
Foreign Ministers at the Second Extraordinary Meeting of the ACS Ministerial Council to
take place in Santo Domingo on March 26. ACS Members are also working towards the
declaration of the Caribbean Sea as a Special Area in the context of Sustainable
Development.
The third item on the draft agenda, the Meeting agreed, would be Consultation and
Concerted Action in International Fora with specific reference to the June 1999 Latin
American and Caribbean/European Summit in Rio de Janeiro. RETURN TO TOP
US TRADE POLICY IN 1999 AND
PREPARATION FOR NEW ROUND
U.S. trade policy must address traditional concerns such as barriers to exports and
agricultural subsidies, as well as a whole new set of issues, according to the President's
annual trade policy agenda report.
Among the new issues are market transparency and bribery and corruption, making trade
negotiations and institutions responsive to rapid changes in science, technology and
commerce and advancing environmental protection and internationally-recognised core labour
standards, according to the "1999 Trade Policy Agenda and the 1998 Annual Report of
the President of the United States on the Trade Agreements Program" released March 9.
"We will seek concrete steps toward the Free Trade Area of the Americas; we will push
forward APEC's (Asia-Pacific Economic Cooperation) liberalisation efforts in the
Asia-Pacific; seek new areas of consensus and market-opening with Europe through the
Transatlantic Economic Partnership; host the first-ever Ministerial Conference in
Washington this spring to promote our trade relations with Africa; and promote regional
economic integration in the Middle East" and "The United States will
continue to use the dispute settlement procedures strategically to enforce U.S. rights
under the WTO agreements."
Meanwhile, speaking on the U.S. objectives in the new round of global trade negotiations
which begins late this year, Ambassador Rita Hayes, Deputy U.S. Trade Representative and
U.S. Permanent Representative to the World Trade Organisation (WTO) said the United States
will seek "expedited" talks in a wide range of areas. "These
negotiations will have clearly defined time-tables and expectations, so that we no longer
would have to wait six or eight years for a completion of the round," said Hayes, in
a March 9 speech to the American International Club in Geneva.
The new round is to be launched at the WTO Ministerial Conference meeting November
30-December 3 in Seattle.
In agriculture, "we envision a broad reduction in tariffs, the elimination of export
subsidies, and further reductions in trade-distorting domestic supports linked to
production," Hayes said. For services, the United States seeks "specific
commitments for broad liberalisation and market access in a range of sectors, including
but not limited to audiovisual services, construction, express delivery, financial
services, professional services, telecommunications, travel and tourism, and others."
For institution building, Hayes said the new round should include commitments for greater
transparency in WTO functions, particularly dispute settlement. It should also include
"capacity building" in developing countries to help them implement their WTO
commitments and better coordination with the International Labour Organisation, the
international financial institutions and other global institutions, she said.
Prior to the Seattle meeting, and at the meeting itself, Hayes said the United States
seeks to move forward a number of other important initiatives. These include measures on
"information technology, extension of duty free cyberspace, building consensus on the
Asia-Pacific Economic Cooperation sectors and transparency in government procurement
practices." RETURN TO TOP
WTO COMMITTEE COMPLETES
REVIEW OF HEALTH-RELATED AGREEMENT
The WTO agreement on food safety and animal and plant health issues has helped to defuse
potential disputes, to improve trading relations between countries, and to help countries
be better informed about each others' food safety concerns says the WTO's Sanitary and
Phytosanitary (SPS) Measures Committee.
In a report on the agreement's implementation, the Committee emphasised that the agreement
is still a new framework for dealing with regulations and actions related to food safety
and animal and plant health.
Developing countries have raised concerns however about the operation of SPS. They
say they lack the money and the people to deal with the complex and scientific SPS issues
such as adopting international standards. They also have difficulties in participating in
the development of these standards.
Although the SPS Agreement says developing countries are to be given more time to adjust
so that they can continue to export, the committee said it had no information how this
provision was being implemented. Moreover, although the agreement makes provision
for the committee to recommend changes to the agreement, no such recommendation was made
in this report.
Considering the variety of SPS measures faced daily based exporters in developing
countries in access developed markets, the absence of a specific focus on these problems
is surprising.
The report is the outcome of a review of the first three and half years of the WTO
Agreement on Sanitary and Phytosanitary Measures. Sanitary measures deal with animal
health and food safety issues. Phytosanitary measures do the same for plants.
The SPS Agreement came into being on 1 January 1995 with the creation of the WTO.
The agreement attempts to strike a balance between consumer protection and avoiding
the use of food safety and animal and plant health as disguised trade protectionism.
It says governments' measures should be based on science and should not
discriminate among foreign sources of supply. It encourages the use of international
standards. RETURN
TO TOP
LEADERS ISSUE
DECLARATION OF ANTIGUA
Following their one-day summit on March 11 leaders of the United States, Central America
and the Caribbean reaffirmed common values and goals ranging from greater cooperation in
the anti-drug fight to continued solidarity in the wake of recent natural disasters.
The Declaration of Antigua, issued by the presidents of Costa Rica, El Salvador,
Guatemala, Honduras, Nicaragua, the United States and the Dominican Republic, and the
Prime Minister of Belize, focused on the rebuilding process following last year's
devastating hurricanes.
They stressed that such transformation should build on the social, democratic and economic
strides made over the past decade, and cited the need to enhance democracy, strengthen the
rule of law and national reconciliation, foster transparency, expand trade and investment
opportunities, and numerous other long-standing goals.
The declaration also expresses thanks for the United States' role in bringing emergency
relief to the region, and for supporting bilateral and multilateral initiatives to relieve
external debts and pave the way for new investments in the region. RETURN TO TOP
FCC
CHAIRMAN VOWS TO FIGHT REGULATION OF INTERNET
The chairman of the U.S. Federal Communications Commission (FCC), William E. Kennard, has
vowed to block attempts to regulate the Internet as long as he is commission chairman.
"Let me say this as clearly as I can: as long as I am chairman of the FCC, we
will not regulate the Internet," Kennard said in a speech to the Legg Mason
securities company March 11 in Washington.
Kennard said regulation of the Internet, which he called "the fastest growing
communications tool in the history of the world," would stifle development of
"robust competition" in the telecommunications marketplace. He specifically
ruled out imposition of long-distance telephone charges on Internet access.
The FCC chairman said he will act on a Supreme Court ruling in January to look at ways to
deregulate local telephone markets in order to increase competition among suppliers of
Internet access.
The full text of his speech is available from TRADEWATCH upon request. RETURN TO TOP
Requests for additional information on any of the items in the
newsletter should be
directed to Vaughn Renwick, Programme Manager Economic Integration & Trade
Policy, email: vrenwick@carib-export.com
Caribbean Export (Caribbean Export Development Agency) provides a wide range of
business development and market research services to Caribbean enterprises. It is
an agency of the Forum of Caribbean States (CARIFORUM) and is supported by
those governments and the European Union.
In Barbados: Tel: 246 436 0578, fax: 246 436 9999, email: info@carib-export.com
In the Dominican Republic: Tel: 809 547 2005, fax: 809 547 7532, email:
c.export@codetel.net.do
CARICOM PREPARES TO RESUME FTA TALKS WITH THE DOMINICAN REPUBLIC
CARICOM trade officials met last week in Trinidad to agree on the list of products which
would be excluded from the CARICOM - Dominican Republic Free Trade Agreement. The
final list is expected to be submitted to CARICOM Heads meeting in their intersessional
meeting in Suriname this week. The objective of the meeting was to substantially
reduce the size of the list to bring more into line with that of the Dominican Republic.
This is important because the list is supposed to be a common list and items it
will be equally excluded from free trade in both markets. The list will also contain
some items for which free trade will be introduced on a phased basis.
TRADEWATCH understands that the list was reduced at the CARICOM meeting, while concerns
remains over some sensitive products. Recent news reports have hinted that the
Dominican Republic itself may have a somewhat revised list when it next meets with
CARICOM, reflecting some of its special concerns.
Once the issues surrounding the agreement on free trade in goods has been resolved, the
parties will be turning their attention to the host of other issues to be dealt with
before the full FTA can be said to be operational. These include primarily
negotiations relating to the free trade in services, but as well other linked issues
relating to proposed agreements on intellectual property rights, dispute settlement
procedures and a double taxation treaty among others. Key among these should be the
setting up of the CARICOM/Dominican Business Forum which is expected to drive private
sector involvement in the Agreement. RETURN TO TOP
DOMINICAN REPUBLIC & MEXICO AGREE TO STRENGTHEN TIES
The Dominican Republic and Mexico have agreed to strengthen their bilateral economic,
trade and investment ties, with a particular emphasis in the energy, tourism and air
transport sectors according to a report in DR1 of the outcome of the Second Meeting of the
Dominican-Mexican Bilateral Commission recently concluded in Mexico City. The Commission
was created by the two countries last June with a view to strengthening ties between the
two countries through regular dialogue. This second meeting of the Commission was headed
by Dominican Republic Foreign Minister Eduardo Latorre and Mexican Foreign Minister
Rosario Green.
Among the agreements signed were new cooperation agreements on agriculture, health and
social security, as well as information exchanges on phytosanitary regulations and on
agricultural research and training programs in the education area. An agreement was also
reached on information exchange regarding drug trafficking and related subjects like
organised crime, money laundering and illegal arms shipments. The Dominican delegation
also delivered new proposals for projects to be funded under the San José Agreement.
Among the Dominican proposals is to create a special Investment Fund using Agreement money
that would target tourism projects in the DR. RETURN TO TOP
STUDY RECOMMENDS OPENING UP US COMMERCIAL ACTIVITY IN CUBA
According to a report published in January by the Council on Foreign Relations, more
contact, continuing humanitarian aid, help for an evolving economy, and careful attention
to specific U.S. policy needs are the best blueprint for U.S. efforts to "contribute
to rapid, peaceful, democratic transition in Cuba while safeguarding the vital interests
of the United States." The Council, a New York-based research
institution, sponsored the Cuba study, which was conducted by an independent task force
comprised of both liberal and conservative experts and headed by William Rogers and
Bernard Aronson, both former assistant secretaries of state for Western Hemisphere affairs
The report recommends initial steps to open up U.S. commercial activity on the island.
The recommendations would allow businesses that support Cuba's emerging private
sector -- distribution centres for food and medical products, and cultural enterprises --
to be licensed and operate in Cuba. There would be stronger consensus in favour of
substantial private investment when U.S. businesses in Cuba can hire and pay workers
directly, observe internationally-recognised worker rights of free association, and
provide their goods and services to Cuban citizens, the report asserts.
The reports makes other wide-ranging recommendations relating to academic, professional,
and official exchanges, respect for international copyright, patent, and trademark
regimes, direct commercial flights and mail service, increasing spending limits on
licensed travellers to Cuba and expansion of U.S. consular services in Cuba as well as a
series of specific suggestions on humanitarian issues and increased official
counternarcotics cooperation.
The publication of this report follows closely on the Clinton's administration 1998
initiatives on Cuba as well as another series of proposals put forward recently by a group
of ex-congressmen to increase U.S. contact with Cuba. RETURN TO TOP
NEW
ROUND SHOULD PUT EMPHASIS ON FACTORS THAT WILL DOMINATE ECONOMIC DEVELOPMENT IN THE 21ST
CENTURY
WTO Director General Renato Ruggiero speaking in Brussels to the European Parliament last
week said agriculture cannot again be allowed to become the predominant issue of the new
Round. "By focussing too much on traditional issues, we risk overlooking how much the
world economy has changed since the Uruguay Round and how important the new issues have
become to developing and developed countries alike. I would like to point out that in a
new Round we will have to put more emphasis on the factors that will dominate economic
development and the global economy in the twenty-first century - especially new
technologies and services" said Ruggiero.
The WTO is now at the end of the first phase of the preparations for the Ministerial
Meeting. The second phase, from February to July, will centre on specific proposals
from WTO Members to prepare recommendations to Ministers about the future work programme.
While the WTO is committed to negotiations in important areas such as services,
agriculture, and aspects of intellectual property, Ruggiero says there is now a growing
consensus in favour of a substantial and ambitious multilateral Round, though it should be
said that not all countries - especially not all developing countries - are guided by the
same vision.
According to Ruggiero, the active participation of developing countries will be essential
to the launching and success of such a Round. Developing and least developed countries now
make up almost four fifths of the WTO's membership. Politically this system will not
be able to move ahead confidently through its next Ministerial Conference and into the
next century without these countries sharing in the belief that new negotiations are
warranted and in their economic interests. He told the Parliament that "... a new
vision which embraces not only capital movements and trade liberalisation, not jut labour
standards, but also social safety nets, environmental, health, education - especially the
role of new technologies - poverty elimination, cultural diversity, and the reduction of
inequalities as subjects which must be embraced in an improved concept of global economic
management." RETURN TO TOP
WTO
DISCUSSES GEOGRAPHICAL INDICATIONS
A new proposal from the United States and Japan on geographical indications was discussed
in the Council on Trade-Related Aspects of Intellectual Property Rights (TRIPS), the body
administering the WTO's intellectual property agreement, on 17 February 1999.
Geographical indications the use of place names, or words associated with a place, to
identify the origin, type and quality of a product.
The US-Japanese joint proposal is the second to be submitted to the TRIPS Council. The
first, discussed at previous meetings, came from the European Union.
Both proposals being discussed are for a multilateral system for notifying and registering
protected geographical indications for wines and spirits. Under the EU's proposal
which is more comprehensive than the other, products accepted for registration would be
protected in all WTO member countries, although the method each country uses would follow
its existing practice. The EU already has in place an extensive European system of
geographical indications. As an issue it has featured prominently in the ongoing
EU-South Africa free trade negotiations in relation to use by South Africa of the names
Port and Sherry.
Several developing countries want a system that would cover not only wines and spirits but
extended to include other products. In the Caribbean, some states already have national
legislation on geographical indications and it is clearly an issue to be studied both in
terms of continued access to markets and protecting our traditional products.
The TRIPS Council will continue to discuss this issue at its next meeting in April.
Another two countries are said to be preparing their own proposals. RETURN TO TOP
MULTILATERAL AND REGIONAL TRADE SEMINAR PLANNED FOR JUNE
An advanced training course for government officials on Multilateral and Regional Trade
Issues for the Americas will be held June 28th to July 9th at Georgetown University Campus
in Washington
The two week course will address key issues of regional and multilateral trade talks.
Course sessions will be taught by a mix of trade analysts and practitioners drawn from the
Georgetown University faculty, the WTO, the OAS Trade Unit, subregional organisations such
as CARICOM, SIECA and MERCOSUR, as well as law firms and think tanks. One course will be
offered in Spanish and a subsequent course in English.
The course will be open to candidates who are from member states of the OAS or officials
from regional institutions with responsibilities in trade policy and/or economic
integration. Preference will be given to those candidates from the smaller economies
in the Americas. Applications forms are available at OAS Offices in Member States,
and on request from the OAS Trade Unit or Georgetown University Centre for Latin American
Studies. RETURN
TO TOP
Y2K LIABILITY LAW
INTRODUCED
USIA reports that a bi-partisan group of congressmen has introduced legislation to contain
the legal battles in response to problems related to the Y2K computer failure, according
to a press statement released by the office of Congressman David Dreier. The lawmakers say
their bill will serve as an incentive for U.S. business to work to solve Y2K related
problems rather than concentrating their efforts on protecting themselves from lawsuits.
Observers anticipate that many businesses that experience problems will attempt to
sue other companies for compensation.
The legislation announced February 23 apparently attempts to contain the expected
litigation by imposing requirements not usually applicable in similar civil court
proceedings. The proposed bill would set certain limits for action between defendants and
plaintiffs; encourage mediation; limit legal fees; and limit monetary damages. RETURN TO TOP
-------------------------------------------------------
Welcome to the TRADEWATCH newsletter from Caribbean Export. TRADEWATCH
aims to inform and update recipients on a wide variety of trade and economic issues
of importance to the region and forms part of our trade advocacy activities.
Text will normally be sent in-message. If at any time you wish to be removed from
the
mailing list please let us know. Any comments on the content and readability of the
documentation is appreciated. We also welcome suggestions for additions or
corrections to our mailing list.
Requests for additional information on any of the items in the newsletter should be
directed to Vaughn Renwick, Programme Manager Economic Integration & Trade
Policy, email: vrenwick@carib-export.com
Caribbean Export (Caribbean Export Development Agency) provides a wide range of
business development and market research services to Caribbean enterprises. It is
an agency of the Forum of Caribbean States (CARIFORUM) and is supported by
those governments and the European Union.
In Barbados: Tel: 246 436 0578, fax: 246 436 9999, email: info@carib-export.com
In the Dominican Republic: Tel: 809 547 2005, fax: 809 547 7532, email:
c.export@codetel.net.do
For More Information Contact:
Kamer van Koophandel & Fabrieken, Suriname
Mr. J.C. de Miranda Straat 10
Tel: +(597) 473527
FAX: +(597) 470802
Internet: chamber@sr.net
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