Making Effective Use of Trade Agreements
Presentation by Pamela Coke-Hamilton
Access to Foreign Markets
• • • • • • • • CARIFORUM-EC EPA (2008) CARICOM-Costa Rica (2004) CARICOM-Cuba (2000) CARICOM-Dominican Republic (1998) CARICOM-Colombia (1994) CARICOM-Venezuela (1992) CARIBCAN (1986) CBI (1983)
Status of Agreements
• EPA – all CARIFORUM Member States expected to have completed domestic procedures to allow for provisional application of the EPA by mid December 2008 • CARICOM-DR – to discuss the implications of the regional preference provision of the EPA • CARICOM-Cuba – consideration is being given to expansion of market access provisions
US$ millions
100 150 200 250 300 350 50
Venezuela
0
CARICOM Exports to FTA Partners
Venezuela
Colombia
Colombia Dominican Republic Cuba Costa Rica
Dominican Republic
Cuba
19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07
Costa Rica
Limited Effective Market Access
Share of Imports from CARICOM in Respective Country Total Imports (%) Date of 2007 Signature of FTA Costa Rica Cuba Dominican Republic 0.24% (2004) 1.06% (2000) 0.65% (1998) 0.15% 0.76% 1.85%
Colombia
Venezuela
0.52% (1994)
0.52% (1992)
0.97%
0.19%
Utilization Rate (%) of CBI by CARICOM
45 40 35 30 25 20 15 10 5 0 2000 2001 2002 2003 2004 2005 2006 2007
16.6 33.1 34.3 32.4 29.3 34 42.8 43.3
10
Antigua & Barbuda
Bahamas
20
30
40
50
60
70
80
90
0
Barbados Belize Dominica Grenada
Guyana
2007 Utilization Rate (%) of CBI
Haiti Jamaica Montserrat St. Kitts & Nevis
St. Lucia
2007
St. Vincent & the Grenadines
Trinidad & Tobago
CARICOM
% of Imports that Benefit from CARIBCAN
Imports Under CARICAN Total imports
($CDN millions) ($CDN millions)
Year
2006 2005 2004
CARIBCAN Imports as of total imports (%) 12.4 13.5 15.4
114.7 116.7 120.9
925.8 862.0 784.1
2003
2002 2001 2000 1999 1998 1997
109.4
152.5 111.6 62.0 64.9 40.7 22.6
769.6
705.6 764.9 519.0 527.2 547.6 531.6
14.2
21.6 14.6 11.9 12.3 7.4 4.3
Canada Imports from CARICOM in 2006
Country Antigua & Barbuda Bahamas Barbados Belize MFN Free as % of Total Imports 38.42 73.25 44.28 87.68 GPT Free as % of Total Imports .. 0.00 30.65 2.02 CARIBCAN Free as % of Total Imports 20.08 20.88 21.66 0.66 Total Free as % of Total Imports 58.50 94.13 96.59 90.36
Dominica
Grenada Guyana Jamaica Montserrat St. Kitts & Nevis Saint Lucia
31.64
44.16 95.8 94.42 77.41 34 86.69
..
29.36 3.54 0.05 .. 0.11 ..
..
26.06 0.26 3.59 .. .. ..
31.64
99.58 99.59 98.06 77.41 34.11 86.69
St. Vincent/Gren.
Trinidad & Tobago Total
79.07
69.12 84.20
1.62
0.05 1.08
..
29.62 12.39
80.68
98.79 97.67
EC 27 Imports from CARIFORUM Countries (€’ millions)
Jan-Aug 2007 Antigua & Barbuda 177.3 Jan-Aug 2008 100.1
Barbados
Bahamas Belize Dominica Dominican Republic Grenada Guyana Haiti Jamaica St. Kitts & Nevis St. Lucia St. Vincent & the Grenadines Suriname
34.5
480.7 68.5 8.8 573.7 3.9 131.0 23.5 337.9 2.8 43.9 79.6 176.9
28.7
511.9 78.8 6.9 579.0 8.6 132.8 22.0 379.1 1.6 15.1 117.0 131.9
Trinidad & Tobago
657.9
1,594.8
Reasons for the Lack of Implementation
• • • • • Capacity Funding Shift of methodology – Private Sector Infrastructure Supply side constraints, etc.
Need for Implementation Mechanism
• Critical need for implementation mechanism • Currently present institutional structures extremely overwhelmed and under funded • Mechanism would implement all agreements in cohesive and coherent manner • Regional linked to National
Structure for Implementation
Executive Director
Lobbying /Political
Research
Legal
Private Sector
National Impl. Liaison
Project Fund Development
Mon.& Eval. Unit
RA
RA
RA
LA
LA
LA
PSO
PSO
PSO
T.S.
T.S.
T.S.
P.O.
P.O.
P.O.
ME.O
ME.O
ME.O
National Implementation Bodies
BS
BB
BZ
GY
HT
JM
SR
TT
OECS Member Countries
AG
DM
GD
KN
LC
VC
Potential Winners
• Tourism • Cultural/Entertainment Services • Geographical Indicators – eg Caribbean Rum, Grenadian Nutmeg, Trinidad Cocoa, • IPR – biological diversity – development of natural medicines – traditional knowledge
Example of the functionality of the mechanism
• Eg. The objective would be to increase the CARICOM’s share of the EU tourism market - # of visitors and € & £
– Need to identify target market and their current and future needs – Develop plans with countries to harmonize or sufficiently diversify industry in the region so that CARICOM countries are not in competition with each other – Ensure that development of industry is sustainable – Discuss with the private sector and individual country implementation units their needs to undertake industry development – Develop project profiles in accordance with donor requirements to submit for funding
Thank you
Pamela Coke-Hamilton Director of Trade and Tourism Organization of American States