rnm update - 2001-01-23

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RNM UPDATE

January 23, 2001

Prepared by the Communications Division of the Caribbean Regional Negotiating

Machinery (RNM), this electronic newsletter focuses on the RNM, tradenegotiation issues within its mandate and related activities.

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- COTED DECISIONS- CANADA-CARICOM- RNM TRAINING PROGRAMMES- UPCOMING ACTIVITIES

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COTED DECISIONS

The Tenth Meeting of CARICOM's Council for Trade and EconomicDevelopment (COTED), held in Georgetown, Guyana, on 11-12 January 2001,devoted considerable attention to a range of RNM-related subjects. The results of deliberations on five issues are summarised:

WTO submissions

Agreement was reached on the texts of negotiating proposals on Agriculture andServices on behalf of Members of the Caribbean Community for submission tothe WTO. The Agriculture proposals are enumerated in keeping with the positionthat the most secure way of achieving the transformation of small developingeconomies is through the simultaneous opening up of market access opportunities,and the provision of the technical and financial means by which these economiesmay benefit from such market openings.

The proposals on Services essentially cover negotiating guidelines andprocedures. They emphasise that adequate WTO assessment of trade in services,in keeping with Art. XIX of the General Agreement on Trade in Services(GATS), is indispensable for the proper conduct of negotiations on furtherliberalisation and to meet the objectives set out in the Agreement. Such anassessment should ascertain the extent to which commitments under GATS havecontributed to increased participation by developing countries in services trade,strengthened their domestic services capacity and improved access to distributionchannels and information networks for this group of countries.

Bananas

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COTED expressed dismay at the decision of the EU Agriculture Council to directthe Commission to prepare for a revised EU banana import regime based on theprinciple of "First Come, First Served" (FCFS), considered as totally inconsistentwith the commitment under the Cotonou Agreement "aimed at ensuring thecontinued viability of (ACP) banana export industries and the continuing outlet

for their bananas on Community market." The Commission's proposals ensureneither; they would, on the contrary, lead to the total destruction of the Caribbeanbanana industry with resultant severe economic and social damage anddislocation. The proposed system will turn the banana trade into a lottery forCaribbean growers, with the odds stacked against them and in favour of thedominant dollar traders. The Caribbean and indeed the small banana growerscannot afford such a gamble. If the EU were to opt for an FCFS based systemthen it must include appropriate provisions to ensure access and a viable return forthe ACP.

COTED reiterated that the most effective means to ensure access is through anappropriate tariff quota allocated primarily on the basis of past trade. CARICOMnotes with deep disappointment the failure of EU/US negotiations on such asolution, and strongly urged that negotiations be resumed between the EU and theUS and indeed with other key interested parties in a constructive spirit.CARICOM cannot accept a system that does not ensure continued access to theEU market on an economically viable basis.

Rice

Support was expressed for a Diagnostic Study, Strategic Plan and FinancingProposal, as prepared by the CARIFOUM Secretariat, to be financed under theCotonou Agreement's Joint Declaration on Rice, and it was agreed to mount aMinisterial Mission to the EU and the Commission to advance the Region'sconcerns and position with regard to the regional rice industry utilising thefinancial resources available under the above-mentioned Declaration.

FTAA

In discussing the Free Trade Area of the Americas process, COTED urgedMember States to review and provide feedback on the draft texts of the nineNegotiating Groups that will form the basis of the next round of negotiations,thereby giving policy direction to negotiators. The Meeting also endorsed theconvening of a technical level meeting to undertake an assessment and discuss allissues falling within the FTAA negotiations, prior to the next round.

EBA

With respect to the European Commission's 'Everything But Arms' proposal(outlined in RNM UPDATE January 12, 2001), COTED expressed deep concernthat the Commission had adopted the proposal without either prior consultation

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with the ACP or the undertaking of any impact assessments, as it was committedto do under the provisions of the Cotonou Agreement. It noted that the majorcommodities -rice, sugar and bananas- for which the Region currently enjoyspreferential access to the European Union Market would be jeopardised even withthe slightly phased (three-year) implementation for these products. COTED

agreed that Member States would initiate action without delay to mitigate anyharmful effects of the EBA on Caribbean ACP countries, while remainingconscious of the need to maintain ACP solidarity.

CANADA-CARICOM

Heads of Government and Senior Officials from 13 CARICOM countries and theDominican Republic met with Canadian Prime Minister Jean Chretien in a three-hour plenary session at Montego Bay, Jamaica, on Friday, January 19, 2001, inorder to discuss wide-ranging issues of mutual interest to both sides. The Summitresumed bilateral talks between CARICOM and Canada, that were aborted at theend of September last year due to the untimely death of former Canadian PrimeMinister Pierre Trudeau.

The principal achievement of the Summit was the agreement on a CARICOMproposal to begin exploratory work on a more mature trade relationship, buildingupon and enhancing the 1979 Trade and Economic Co-operation Agreement andthe 1986 Canada-CARICOM Agreement (CARIBCAN), which augmented it, andculminating possibly in a free trade agreement. CARIBCAN's centerpiece is theprovision for preferential, one-way, duty-free entry into the Canadian market of the vast majority of goods exported to that market by the beneficiary countries.

In the words of Prime Minister Patterson of Jamaica,the host country, theagreement "would go beyond mere trade in good. It will build on investment andtrade in services, including the new areas brought about by the information andcommunications technologies. It will cover as well such matters as Standards andcapacity building for managing the trade and economic arrangements. And therewill be many other matters of mutual interest". The Montego Bay Meeting agreedas follows:

-To Immediately establish a small Joint Working Group, composed of asmall number of experienced representatives to prepare a Framework Agreement on the scope and nature of a more mature trade and economicagreement in enhancement of existing arrangements and culminating in apossible FTA;

- The Working Group would take into account the external environmentwhich had implications for the benefits accruing to CARICOM countries,from inter alia, the Cotonou and FTAA processes, as well as the rights andobligations of WTO membership;

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- On the CARICOM side, the exploratory work would be co-ordinated bythe RNM working in close consultation with the CARICOM Secretariat,Member States and the business community;

- Draft CARICOM proposals would be presented to Governments forapproval in good time with a view to commencing the negotiations for aFramework Agreement before the meeting of the Summit of the Americasin Quebec City, April 2001.

Also high on the agenda were the Quebec City meeting and FTAA process. CARICOMHeads of Government used the opportunity of the discussion on the upcoming Summit toreiterate their call for special accommodation of the needs of the smaller economies of CARICOM in the Summit process and FTAA negotiations.

In respect of OECD 'Harmful Tax Competition' charges, Canada accepted theCaribbean¹s position that no group of countries should arbitrarily create, and try toimpose, standards of taxation and other financial rules, and that any changes in thearchitecture and modalities for taxation and exchange of information should benegotiated and resolved in a multilateral forum. Canada agreed to reflect the Caribbean'sposition within the Councils of the OECD.

RNM TRAINING PROGRAMMES

Professional Trainee (PT) Programme

As of the end of 2000 the first batch of six trainees selected for this programme hadsuccessfully completed their assignments. The programme is aimed at enhancing theRegion's trade negotiations capacity by exposing trainees to a 10-month apprenticeshipcomprising: (a) an assignment at an RNM (or affiliated) office where the Trainee wouldbe guided in trade policy and negotiations-related research and be exposed to anegotiations environment; (b) participation in at least one major trade policy/negotiationcourse; (c) a short attachment of variable duration (1-3 months) at an international ornational institution actively involved in trade negotiations, and (d) exposure to actualtrade negotiations involving the Caribbean Community.

The PT Programme is a highly important element in RNM training activities and the firstyear's exercise has exceeded all expectations. This is in part due to the willingcollaboration of institutions which have kindly hosted trainees for their attachments,organised/sponsored training courses or participated in such courses conducted by theRNM. Special thanks go to the OAS Trade Unit, IDB and its Buenos Aires arm INTAL,WTO, UNCTAD, IICA, the International Law Institute (Washington D.C.) andGeorgetown University's School of Foreign Service. The RNM wishes also toacknowledge the assistance of those CARICOM governments that facilitated placementsof trainees through accreditation to their overseas missions in Washington D.C. andGeneva.

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The current PT programme is being carried out within the framework of the RNM'sCARICOM Trade Project (CTP), funded by the UK Department for InternationalDevelopment (DFID). During 2001 additional trainees will be selected in keeping withother new projects, for which the RNM will be inviting applications.

Training Workshops

The RNM will continue its training workshops under the CRNM/IDB Regional TechnicalCooperation Project. The programme was initiated in September 1999, with the objectiveof providing CARICOM countries with the ability to participate effectively in andnegotiate multilateral, regional and bilateral trade and economic initiatives, by improvingboth the skills and knowledge base available to the region in matters relating to externaltrade negotiations. The workshops are targeted at government representatives and alsoallow for private sector and NGO participation. To date workshops have been held onGovernment Procurement, Intellectual Property Rights, Market Access and Rules of Origin, as well as Services, and two Training Workshops have been held on NegotiatingSkills.

Preparations are being made for holding two workshops in Barbados in March -- onCompetition Policy and Law from March 7-9; and the third Negotiating Skills TrainingWorkshop from March 19-23.

The first-mentioned workshop is intended to provide CARICOM participants with asound understanding of the basics of competition law and policy, and the processinvolved in implementation, both at national level and in a single market and economy.This will provide a platform upon which to build a broad understanding of thecompetition issues to be considered in international trade, including the developmentaldimensions particularly for small open economies. The workshop is designed to equipparticipants with the knowledge required for them to assist in the preparation of appropriate policies and strategies for ongoing trade negotiations.

The Negotiating Skills Workshop follows the same format as the first two suchworkshops. Participants are exposed to lectures on such subjects as Strategy Planning Aidto Negotiation; Multilateral Negotiation and Coalition Formation; and Strategies andTactics of Negotiation. They will also participate in lengthy simulated negotiationexercises, covering both bilateral and multilateral negotiations.

Further information on the Workshops or the CRNM/IDB Project is obtainable from theProject Manager, Mrs. Jacqueline Wade, at [email protected]

UPCOMING ACTVITIES

A series of national Working Sessions on Trade in Agriculture are slated for Grenada, theCommonwealth of Dominica and St. Kitts and Nevis for the period January 18-26, 2001.

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The Working Sessions are a joint effort between the OECS Trade Policy Project (OECS-TPP), the OECS Secretariat and the national governments of the OECS countries, andwill draw participants from agricultural stakeholders in the public and private sectors.The OECS-TPP is a CIDA-funded five year initiative designed to strengthen the capacityof OECS Member States to participate more effectively within the global economy.

The Trade in Agriculture Working Sessions follow on similar workshops in the area of Services, both intended to increase awareness of the international negotiating issues, andto assist in the development of positions which reflect the specific concerns of OECSStates for input into the Regional Negotiating Machinery (RNM).

Each Working Session will run for two days, beginning with the Grenada WorkingSession on January 18, followed by Dominica on January 22 and ending with the St. Kittsand Nevis Working Session on January 25. The Grenada Working Session will drawparticipants from St. Vincent and the Grenadines while the Working Sessions inDominica and St. Kitts and Nevis will involve participation from persons in St. Lucia andAntigua and Barbuda, respectively.

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Henry S. GillCommunications Director/ Team Leader CARICOM Trade Project,

Caribbean Regional Negotiating Machinery (RNM)"Windmark", First Avenue, Harts Gap,Hastings, Christ Church, BarbadosTel: (246) 430-1673Fax: (246) 228-5264http://www.caribrnm.net

* * *RNM UPDATE

February 2, 2001

Prepared by the Communications Division of the Caribbean Regional NegotiatingMachinery (RNM), this electronic newsletter focuses on the RNM, trade negotiationissues within its mandate and related activities.

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- FTAA DEVELOPMENTS- NEW U.S. ADMINISTRATION'S TRADE INITIATIVES- CARICOM-DR TRADE AGREEMENT PASSED- EBA PROPOSAL AMENDED

- FAREWELL TO SENIOR RNM OFFICIAL- NEWS BRIEFS

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FTAA DEVELOPMENTS

The Seventh Meeting of the Trade Negotiations Committee (TNC) of the FTAA took place in Lima, Peru, January 22-25, 2001. CARICOM was represented at this meeting byVice Ministers from Bahamas, Barbados, Dominica, Guyana, Jamaica and Trinidad &Tobago. Discussion was focussed mainly on issues to be dealt with at the UpcomingMinisterial to be held in Buenos Aires, Argentina in April 2001.

The treatment of differences in levels of development and size of the economies, astanding issue on the TNC agenda of particular relevance to CARICOM, was the subjectof further discussion. CARICOM reflected their concern that the treatment of differencesin levels of development and size had been uneven in the various negotiating groups. Of further concern was the apparent uncertainty that some negotiating groups had about theTNC's mandate on communication with the Consultative Group on Smaller EconomiesCGSE). In this regard, CARICOM urged the TNC to ensure that all Negotiating Groupsfulfilled their mandate with regard to communicating with the Consultative Group onSmaller Economies (CGSE).

CARICOM reminded the TNC that it had made specific proposals in all the NegotiatingGroups on matters relevant to smaller economies and these had been submitted to theCGSE. It was emphasised that it was the responsibility of the Chairs of the NegotiatingGroups to submit their reports to the CGSE and request assistance in relevant areas. Inresponse to the air of uncertainty, CARICOM proposed draft language for inclusion inthe Buenos Aires Ministerial Declaration to address the issue and ensure that previousinstructions were acted on.

Other issues of concern for CARICOM were the proposals that there be a separatenegotiating group on Financial Services, that is, to divorce this subject from the presentNegotiating Group on Services and set up a new group, and, the suggestion that thecompletion of the FTAA be accelerated from the original proposed date of 2005 to 2003.There has been no consensus on either issues but CARICOM stated it that it was not insupport of either proposals.

NEW U.S. ADMINISTRATION'S TRADE INITIATIVES

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The new U.S. Republican Administration has signalled its readiness to move forwardwith its international trade agenda. On January 22, 2001 Senator Phil Gramm tabled fourbills in the Senate:S. 136 the Fast-Track Trade Negotiating Authority Act

S. 137 the Americas Free Trade ActS. 138 the Chile NAFTA Accession ActS. 140 the UK-NAFTA Accession Act

S. 136 amends the Omnibus Trade and Competitiveness Act of 1988 to extend throughDecember 31, 2004: (1) the President's trade agreement negotiating authority; and (2)congressional fast track procedures (no amendments) to implementing bills submittedwith respect to trade agreements.

S. 137 requires the President to initiate trade agreement negotiations for a WesternHemisphere free trade area. The Act would not be applicable to Cuba unless the Presidentcertifies to the Congress that: (1) freedom has been restored in Cuba; and (2) the claimsof U.S. citizens for compensation for expropriated property have been appropriatelyaddressed. The bill further sets forth determinations the President must make about Cubabefore certifying that freedom has been restored and states that, once such certification ismade, priority be given to negotiation of a free trade agreement with Cuba. It too appliescongressional fast track procedures (no amendments) to implementing bills for tradeagreements entered under this Act.

S. 138 and 140 would authorize the President to enter into:(1) an agreement for the accession of the Chile/United Kingdom, respectively, toNAFTA; or(2) a bilateral agreement between the United States and Chile/ United Kingdom thatreduces and ultimately eliminates tariffs and other nontariff barriers to trade and providesfor the eventual establishment of a free trade area. Applies congressional fast track procedures (no amendments) to implementing bills for trade agreements entered underthis Act.

CARICOM-DR TRADE AGREEMENT PASSED

The Senate of the Dominican Republic, meeting in special session on February 1, passedthe Agreement Establishing the Free Trade Area Between the Caribbean Community andthe Dominican Republic and the protocol for its implementation. The agreement will nowpass to the Chamber of Deputies as a formality, since free trade agreements only requiresenatorial approval. The treaty is expected to be signed by President Hipolito Mejia nextweek, going into effect immediately.

The senators did not pass the Free Trade Agreement Between Central America and theDominican Republic due to objections made by the Executive Branch, the Ministry of Foreign Relations and business sectors. Approval of this Agreement is predicated on the

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outcome of further discussion of protocols with Costa Rica, Honduras and Nicaragua.

EBA PROPOSAL AMENDED

Under pressure from farm lobbies, the European Commission agreed on a modifiedversion of the "Everything But Arms" (EBA) market access proposal for goods fromLeast-Developed Countries (summarized in RNM UPDATE 0101) before submitting theproposal to the European Council.

The amendments concern the transitional periods for the phase-in of duty-free access forbananas, sugar and rice. The Commission now proposes a transition period of 2002-2006for bananas and of 2006-2008 for sugar and rice. After this period, access for theseproducts to the EU market would be completely duty- and quota-free. Before 2006, theCommission would look at ways of giving LDCs enhanced market access for sugar andrice by opening temporary special quotas. The initial proposal envisaged implementationin three progressive stages to be completed over three years.

FAREWELL TO SENIOR RNM OFFICIAL

Dr. Arnold McIntyre, who served as Lead Technical Adviser of the RNM since itsinception and Head of the Barbados office, has resigned as of the end of January to takeup a senior position at the International Monetary Fund. Dr. McIntyre was also theRegion's Alternate Spokesperson in the FTAA Consultative Group on SmallerEconomies.

In a circular letter dated January 29 to CARICOM Heads of Government, CARICOMTrade Ministers and Heads of Mission in Brussels and Geneva, RNM Chief NegotiatorSir Shridath Ramphal expressed his sense of loss for the RNM and for the Region.Explaining that Dr. McIntyre actually joined the RNM some months before he did, SirShridath referred to Dr. McIntyre as "a pioneer member of our small team, who "broughtto the RNM considerable technical expertise, both generally and quite specifically inrelation to trade and trade-related issues in the Region. He has been involved in all theareas of the RNMs main preoccupation; namely, the negotiations in Brussels, Geneva andfor the FTAA, and has won the respect of the negotiating community for the quality andarticulation of his professional contributions."The Chief Negotiator's message continued "In relation to interaction within theCaribbean, Arnold McIntyre has played a superlative role with quite uncommon personalattributes. Through him, the RNM has had intimate contacts throughout the Region at alllevels and it will not be easy to replace his combination of talents. The RNM owes him areal debt of gratitude; but so as well does the Region which the RNM serves.

I am sure that all the recipients of this message would wish in joining in sending toArnold McIntyre and his family appreciation for all he has done in the service of theRegion, and good wishes for professional satisfaction and personal happiness in all that

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lies ahead".

NEWS BRIEFS

WTO Head to meet with CARICOM LeadersThe WTO Secretariat has communicated to the RNM that Director General Mike Moorewill attend the Inter-Sessional Meeting of Heads of Government of the CaribbeanCommunity meeting in Barbados on February 14-16, 2001.

Upcoming WTO Ministerial

At an informal meeting of the WTO General Council on Tuesday, 23 January 2001 WTOMembers expressed general support for the offer of the State of Qatar to hold the FourthMinisterial Conference. All Members expressed their support in principle, though somenoted that they were yet to receive official confirmation from capitals. The Chairmanexplained that the proposed dates were 5-9 November 2001. Chile had previously soughtto host the meeting but eventually declined.

Chiquita's Bananas Suit

The US banana multinational, Chiquita, recently filed a complaint before the EU Court of First Instance, with the aim of obtaining compensation for damages allegedly worth 564million pounds sterling. This is the amount claimed to have been incurred as a result of the EU banana trade regime, as modified in January 1999. Chiquita claims that the EU'smodifications still unfairly favour ACP traditional banana producers at the expense of other producers.


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RNM UPDATE

February 13, 2001


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Special Issue: CARICOM PRESENTS AGRICULTURE PROPOSALS TO WTO

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Following approval by the Tenth Meeting of CARICOM's Council for Trade andEconomic Development (COTED), held in Georgetown, Guyana, on 11-12 January 2001,of the text of negotiating proposals on Agriculture (reported in RNM UPDATE January23, 2001), CARICOM's submission on Agriculture in the market access area waspresented on February 7 at the Fifth Special Session (February 5-7) of the WTOCommittee on Agriculture meeting at the WTO Headquarters in Geneva, Switzerland.

Agriculture is one of two major subjects of negotiation (along with Services) on theUruguay Round's "built-in agenda", which is currently being addressed. The negotiationsare being conducted in keeping with the long-term objective of achieving substantialprogressive reductions in support measures and trade protection resulting in fundamentalreform of this sector.

While emphasising CARICOM's commitment to the long-term objective of establishing afair and market-oriented agricultural trading system, the negotiating proposal identifiesthe Region's market access interest in the on-going negotiations stressing the need forappropriate time to be afforded to its preference receiving industries (banana, sugar, rice)to enable adjustment to the imperatives of a more liberalised agricultural tradingenvironment.

For non-traditional and high valued products that do not receive preferences, the proposalstresses the need for increased market access opportunities, including increases in tariff quota allocations and also improvements in the administration of tariff rate quotas(TRQs), particularly as they relate to small developing economies. This proposal hasassumed increased importance in the wake of the "first-come-first-serve" regime beingproposed by the European Union as the administration method for a new WTO-compatible banana regime.

Other important elements of the CARICOM proposal are: deeper financial and technicalsupport to small developing economies and particularly those negatively affected by theerosion of preference margins; the need for developed countries to further reduce high

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tariffs on certain types of value added and processed products; the need for developedcountries to commit to eliminating non-tariff barriers (NTBs) and to assist developingcountries in satisfying the food safety, sanitary and phyto-sanitary (SPS) requirements forthe admission of products from developing countries to developed country markets.

Another major pillar of the proposal of particular importance to countries which havefaced food import surges since the entry into force of the Agreement on Agriculture(AoA), which now governs all cross-border trade in agricultural products, has been theneed for a special agricultural safeguard to prevent against low import prices negativelyaffecting the domestic food production industries. This proposed mechanism will allowsmall developing countries under specific circumstances to increase the import duties onimports for some specified period of time. Farmers in Jamaica, Guyana and certain OECScountries have been particularly affected by food import surges that have contributed tothe contraction and, in a few instances, virtual non-production of certain food productionindustries.

The full text of CARICOM's submission is available as document G/AG/NG/W/100dated 15 January 2001 athttp://www.wto.org/english/tratop_e/agric_e/negoti_e.htm#negdocs

CARICOM Participation

The RNM's Lead Agricultural Trade Advisor, Dr. Patrick Antoine, who presented theproposal on behalf of the countries of CARICOM, expressed deep satisfaction with thesupport received from the general WTO membership. The European Union's Chief Negotiator, in support of the CARICOM proposal, commended its clarity in articulatingthe problems faced by small developing economies such as CARICOM and agreed with amajor tenet of the proposal which indicated that the circumstances of this group of countries were poorly accommodated within the existing AoA. Countries such as NewZealand, Cuba, Norway, Canada, the Unites States, Namibia and Japan also voiced strongsupport for CARICOM demands in the negotiations, communicated in the negotiatingproposal.

The resident Ambassadors of Jamaica and Barbados and the Chargé d'Affaires of Trinidad and Tobago, who were instrumental in developing and building support for theagricultural negotiating proposals, participated actively in the Meeting of the Fifth

Special Session. St. Lucia's Ambassador, who is based in Brussels, also participatedactively.

In addition to the presentation of CARICOM's negotiating proposal, the CARICOMgroup commented extensively on the proposals of other countries and groups. Jamaica'sAmbassador Ransford Smith, speaking on behalf of the CARICOM group, commentedon substantial elements of the EC Comprehensive proposals, while St. Lucia'sAmbassador Edwin Laurent undertook an analysis of the proposal by Japan. Swaziland'sproposal was one of only two tabled which articulates the importance of EU preferences

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to ACP countries. Ambassador Erskine Griffith of Barbados commented extensively onthe Swazi proposal. CARICOM also spoke to Mauritius' negotiating proposal, stronglyidentifying with a number of specific proposals on preferences and the market restrictiveeffects of "rules of origin".

The Meeting of the Fifth Special Session marks a milestone for CARICOM countries, inseveral respects. Submission to the WTO of negotiating proposals by CARICOM as agroup exemplifies what is widely regarded to be the greatest attribute of regionalgrouping among small states - the capacity to increase negotiating capacity through

jointly co-ordinated actions. The WTO agricultural negotiations are almost totally drivenby countries combining their interests into groups and alliances, such as the CARINSGroup, the EC, MERCOSUR, the ASEAN group, and the fairly recent G-11 or "LikeMinded Group" comprising countries such as Cuba, Dominican Republic, Kenya,Pakistan, among others.

The Meeting also represented what appears to be a shift in tenor by countries that havehistorically objected to non-reciprocal preferences being extended to sub-groups of developing countries. Paraguay on behalf of MERCOSUR, in commenting on theCARICOM proposal, was unusually brief in its objection to such arrangements andcommended the clarity, coherence and conceptual underpinnings of the proposal. Japanin its intervention on the CARICOM proposal, pledged additional financial and technicalassistance to support CARICOM agriculture in transitioning to a more liberalised tradingenvironment.

The Road Ahead

CARICOM will be tabling another proposal covering the other two pillars of the AoA,namely, domestic supports and export subsidies. These proposals will be discussed by agroup of CARICOM technical experts over the next two weeks and should be submittedto the WTO by the first week of March. The next Special Session of the Committee onAgriculture will be held from March 20-29, 2001 and will address outstanding proposalstabled by WTO Member countries, in addition to undertaking "stocktaking" of all theproposals tabled in the process up to that time.

As the WTO negotiations in the agriculture area move into the second phase, substantialtechnical input will be required by all WTO Members, including CARICOM. Alreadyother groups are gearing up their technical and analytical capacity to participatemeaningfully in this phase of the negotiations. CARICOM countries will have to dolikewise, if it is to safeguard its interest in critical areas of agriculture. Developing thetechnical capacity through the Agricultural Trade Negotiating Unit (ATNU) and withcollaborating research institutions in other countries must therefore constitute a priorityfor CARICOM countries in the coming months. Offers by Japan, New Zealand, Canadaand some developing countries, notably Cuba and Sri Lanka, as expressed in the WTOdiscussions, should be explored fully and without delay. Most members believe that thelength of the second stage, which will focus on an elaboration of the negotiatingproposals and interests, could last from one to two years.

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RNM UPDATE

February 22, 2001



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- CONCLUSIONS OF MEETING OF CARICOM HEADS- NEWS BRIEFS- UPCOMING EVENT

************************************************************CONCLUSIONS OF MEETING OF CARICOM HEADS

At the Twelfth Inter-Sessional Meeting of the Conference of Heads of Government of the Caribbean Community (CARICOM), which was held inBarbados, 14 -16 February, 2001, a number of important trade-related subjectswere on the agenda. These included:

CARICOM Single Market & Economy

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With a view to accelerating this process, Heads of Government directed that eachMember State and each Ministerial Council must give priority to implementationof the CARICOM Single Market and Economy (CSME). They highlighted inparticular measures to be implemented in 2001 deriving from the the SecondSpecial Consultation on the CARICOM Single Market and Economy, held in

Barbados on 20-21 November 2000.Critical among these measures are the enactment of national legislation to giveeffect to the free movement of university graduates, artistes, sports persons,musicians and media workers and the transfer of Social Security benefits; theestablishment of the programmes for the removal among Member States of restrictions on the right of establishment, the provision of services and themovement of capital; the establishment of national and regional mechanisms forthe mutual recognition of qualifications and training; the establishment of theCARICOM Regional Organisation for Quality and Standards (CROSQ), andagreement on outstanding issues relating to hassle-free travel including traveldocuments and forms.

In respect of the supporting institutional arrangements at the national and regionallevels, they agreed that at the national level, Member States would establish Inter-Ministerial Consultative Committees and would encourage the establishment of business and labour advisory committees. They established a Prime-MinisterialSub-Committee for the CSME to give impetus to its establishment and operation.The Sub-Committee would be supported by a Technical Advisory Councilcomprising members from regional institutions and civil society, private sectorand labour organisations and would be serviced by an expanded and restructuredSingle Market and Economy Unit in the Secretariat.

Regional Negotiating Machinery

The Communiqué of the Meeting stated as follows: "The Heads of Government inkeeping with their decision at their January 2001 Special Meeting in MontegoBay, undertook a preliminary review of the RNM, particularly in light of recentchanges in its staffing and of the necessity to ensure its continued effectivefunctioning in the face of intensified negotiations.

They expressed their full satisfaction and reaffirmed their commitment to theRNM.

They also commended the Chief Negotiator and his team on their sterlingperformance on behalf of the Region, in undertaking the first phase of the post-Lomé negotiations and in the ongoing FTAA and WTO negotiations. Heads of Government unanimously and unequivocally pledged their support for thecontinuation of the work of the RNM and committed themselves to itsstrengthening in order to better equip it to serve the interest of the region inseveral complex negotiations now ongoing.

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They expressed gratitude for the support given to the RNM by friendly countriesand Regional and International Institutions and urged their continuing support.

They also expressed deep satisfaction at the development of closer and more

effective collaboration between the RNM, the Council for Trade and EconomicDevelopment (COTED) and the Secretariat.

Against this background, Heads of Government agreed on specific arrangementsfor the RNM¹s 2001-2002 budget and decided on certain staff appointments."

Preparations for Third Summit of the Americas

Recalling that the Summit of the Americas process was initiated to advance theprosperity, democratic values and institutions and security of the hemispherethrough open markets, hemispheric integration and sustainable development inorder to transform the aspirations of the peoples of the Americas into concreterealities, Heads were particularly concerned at the slow pace of implementation of previous Summit mandates and at the inadequate levels of financing to give effectto their Plans of Action.

They called for the creation of a Special Facility within the relevant internationalfinancial institutions to facilitate the implementation of Summit mandates givingspecial consideration to the small and vulnerable economies of this hemisphere.

Meeting with WTO Director General

Heads of Government had a full and frank exchange of views with WTO DirectorGeneral Mike Moore. While expressing the interest of the Caribbean, as a regionof very small, highly open and trade dependent countries in an equitable, rule-based multilateral system, Heads nonetheless expressed great disappointment withthe operation of the multilateral arrangements ushered in by the Uruguay Round,which increased the imbalance and lack of consideration for the interests of developing countries as was evidenced by the processes leading up to the SeattleMinisterial Meeting and the cost of access to the dispute settlement facility.Heads also affirmed that any new round of multilateral trade negotiations shouldbe as much about development as trade liberalisation.

Heads stressed the importance of confidence building, the provision of technicalassistance to enable developing countries and small countries in particular toimplement their existing commitments and the overall review of the multilateralsystem to the creation of a climate conducive to the participation of smalldeveloping countries in future negotiations.

Heads of Government also discussed fully with the Director General theimportance of, and the threat to the vital Regional banana industry. They

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highlighted the insensitivity of the multilateral system to the contraction in theindustry and the deleterious impacts on their economies.

NEWS BRIEFS

CARICOM-DR Trade Agreement

The Chamber of Deputies of the Dominican Republic has given its symbolicapproval to the Free Trade Agreement with the Caribbean Community. TheSenate, the government institution that needed to ratify it in accordance with theConstitution, had already passed the agreement (as stated in RNM UPDATE of February 2, 2001). The accord now passes on to the Presidency for his signing,prior to it going into effect.

Haiti Criticises EU Action

The Haitian government has issued a statement describing the EU suspension of co-operation with Haiti as not having "taken due account of the process of dialogue which has been intensified in Haiti" and ignoring "all the effortsunderway in Haiti, by adopting sanctions barely a few days after the investiture of the new, democratically elected President of Haiti."

Jamaican Ambassador Chairs Geneva Grouping

Ambassador Ransford Smith of Jamaica assumed the role of Chairman of theCommonwealth Group of Developing Countries in Geneva at the Group¹s first meetingof the new year (17/01/01). He takes over from Ambassador Hamidon Ali of Malaysiawho held the post for the preceding year and a half and was instrumental ininstitutionalising technical co-operation activities which are the major focus of theGroup¹s deliberations. Ambassador Smith¹s chairmanship follows a series of similarappointments since his arrival in Geneva just over a year ago. He is the outgoingchairman of the WTO Trade and Development Committee, the ACP Group in Genevaand the Latin American and Caribbean Group (GRULAC - UNCTAD).

UPCOMING EVENT

The Trade and Investment Convention (TIC) 2001 will be held in Trinidad and Tobagofrom 12 to 15 March 2001 at the Chaguaramas Convention Centre. TIC 2001 is abusiness forum to bring together Exporters, Buyers, Distributors and Investors therebycreating opportunities for expansion of sales to markets of more than 30 millioncustomers. It will assist in the establishment of new business partnerships through JointVentures. Seminars and Conferences are planned for educating participants on doingbusiness in foreign territories, trade and investment incentives as well as on strategicmarketing. This Convention will afford interested persons the opportunity to developinvaluable trade links with companies from South America, Central America,CARICOM, North America and Europe.

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For information on registration, booth bookings and any other general informationcontact Keri Yee, Co-ordinator TIC 2001 at phone (868) 623-1029/30, (868) 625-8862;fax (868) 623-1031; e-mail: [email protected]


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RNM UPDATE

March 6, 2001


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- RNM SENIOR OFFICIAL TAKES OFFICE- CANADA-CARICOM TRADE TALKS- SUMMIT IMPLEMENTATION REVIEW GROUP (SIRG)- EUROPEAN COUNCIL APPROVES EBA PLAN- BRIEFS

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RNM SENIOR OFFICIAL TAKES OFFICE

Dr. Patrick Antoine officially took up assignment on March 1, 2001 as the RNM's LeadTechnical Adviser, and now heads the RNM's Barbados office replacing Dr. ArnoldMcIntyre. Dr. Antoine, a national of Grenada, holds a Ph.D in Economics from theUniversity of Florida. He was previously employed with the Caribbean Office of theInter-American Institute for Co-operation on Agriculture (IICA) as Head of the Policiesand Trade Programme for the Caribbean. Dr. Antoine's area of specialisation isInternational Trade Policy and Econometrics. He is presently CARICOM's LeadNegotiator on Agriculture to the FTAA negotiations and the WTO.

CANADA-CARICOM TRADE TALKS

A Joint Working Group (JWG) of CARICOM and Canadian officials will be meeting inKingston, Jamaica, on March 15 and 16 to begin talks to prepare a Framework Agreement on the scope and nature of a more mature trade and economic agreement inenhancement of existing arrangements and culminating in a possible FTA. Thisdevelopment follows agreement reached between Canadian Prime Minister Jean Cretienand CARICOM Heads of Government at Montego Bay, Jamaica, on January 19, 2001 towork towards this end.

Prior to the Kingston talks a CARICOM Exploratory Group will be meeting in Barbadoson Saturday, March 10, to develop a CARICOM strategy for the Kingston talks. TheExploratory Group comprises government officials, independent experts andrepresentatives of the CARICOM Secretariat and the RNM.

CARICOM's trade relations with Canada are conducted within the framework of CARIBCAN, an economic and trade development assistance program for theCommonwealth Caribbean countries and territories, established as a result of acommitment by Canada at the Commonwealth Heads of Government meeting in Nassauin October 1985. The main feature of CARIBCAN is the unilateral extension by Canadafrom 15 June 1986 of duty free access to the Canadian market for most commoditiesoriginating in Commonwealth Caribbean countries.

The original CARIBCAN legislation extended duty-free treatment to all commoditiesexcept textiles, clothing, footwear, luggage, handbags, leather garments, certain vegetablefibre products, lubricating oils and methanol. CARIBCAN duty-free provisions wereextended to a few additional products in February 1998. The present CARIBCANarrangement enjoys a WTO waiver until 31 December 2006. Annual two-waymerchandise trade between Canada and the region is about C$800 million and there issignificant Canadian investment in the region.

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SUMMIT IMPLEMENTATION REVIEW GROUP (SIRG)

The Government of Barbados is hosting a meeting of the FTAA Summit ImplementationReview Group (SIRG) which began on March 6. At the Miami Summit in December

1994 Heads of State and Government committed themselves to a Plan of Actioncomprising four broad objectives: Preserving and Strengthening the Community of Democracies of the Americas; Promoting Prosperity Through Economic Integration andFree Trade; Eradicating Poverty and Discrimination in Our Hemisphere; andGuaranteeing Sustainable Development and Conserving Our Natural Environment forFuture Generations. A number of "vital tasks" were identified in respect of each broadobjective.

The SIRG's mandate is to monitor Summit implementation and prepare reports forForeign Ministers which are normally considered at SIRG meetings. It provides,therefore, the forum in which information on progress of Summit-mandated activities isreported. It is also the mechanism for the negotiation of the texts of the Declaration andPlan of Action of the next Summit.

The SIRG is chaired by the government representative of the host country for the nextSummit, presently Canada. The meetings are attended by National Summit Co-ordinators of the Foreign Ministries of the 34 participating nations of the Americas.Senior representatives of the OAS, IDB, PAHO, ECLAC and the World Bank support thefollow-up actions of the governments on the commitments of the Summits and are invitedto attend SIRG meetings.

The views of hemispheric civil society are made available to the SIRG process throughopen meetings of the OAS Special Committee on Inter-American Summits Management.The Committee meets prior to the SIRG and offers country representatives an opportunityto exchange views with officials from international organizations, experts from otherinstitution and representatives of civil society on the items coming before the next SIRGmeeting.

The SIRG meets holds approximately four regular meetings plus one ministerial-levelmeeting each year.

EUROPEAN COUNCIL APPROVES EBA PLAN

In a move intended to signal the European Union's seriousness about helping the mostdisadvantaged countries to share in the fruits of trade liberalisation, the European Councilhas approved the European Commission's proposal to eliminate quotas and duties on allproducts except arms (Everything But Arms - EBA) from the world's 48 least developedcountries (LDCs). Free access for "essentially all products" is intended to take effectivefrom March 5, 2001.

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However, the liberalisation of sugar, rice and bananas will be phased in during atransition period. Duties on fresh bananas will be reduced by 20% annually starting on 1January 2002 and eliminated at the latest on 1 January 2006. Duties on rice will bereduced by 20% on 1 September 2006, by 50% on 1 September 2007 and by 80% on 1September 2008 and eliminated at the latest by 1 September 2009. Duties on sugar will

be reduced by 20% on 1 July 2006, by 50% on 1 July 2007 and by 80% on 1 July 2008and eliminated at the latest by 1 July 2009.

In order to "compensate for the delay in liberalisation for these products", the EU willoffer immediate and real market access to the 48 LDCs, through the creation of duty-freequotas for sugar and rice , based initially on the best figures for LDC exports during the1990s, plus 15%. These will increase by 15% each year during the interim period. TheCommission has pledged that it will monitor imports of rice, bananas and sugar carefullyand apply safeguard measures if necessary to prevent damaging surges. There will bemonitoring to verify respect for rules of origin, as well as anti-fraud measures. TheCommission will report to the Council in 2005 on the impact of trade within the EU andfor LDCs, as well as on African, Caribbean and Pacific countries.

The Council¹s decision is significant in view of the upcoming UN Conference on LeastDeveloped Countries which the EU will host in Brussels in May 2001, and the fourthWorld Trade Organisation Ministerial Conference, due to be held in Qatar in November.It is surmised that the EU move could prod other trade leaders to do likewise. Haiti is theonly Western Hemisphere beneficiary of this initiative.

BRIEFS

DFID Scoping Mission

Officials of the UK Department for International Development (DFID) are currently on atwo-week Caribbean mission to evaluate the requirements for possible further assistanceto the RNM and other stakeholders within CARICOM, taking into account the policiesand plans of CARICOM governments and donors. The DFID-supported CARICOMTrade Project (CTP) is intended to build RNM capacity by providing funding forcommunications, the training of negotiators, technical studies, expertise andcomputerisation. The CTP comes to an end in May 2001. The DFID team, accompaniedby the RNM's Communications Director, will be visiting a sample of five countries inorder to glean perspectives and suggestions from government officials andrepresentatives of the private sector, trade unions, NGO community, academia and othercivil society groups.

Cuba-U.S. Trade Relations

Parallel to the unfolding legislative trade agenda of the Bush Administration (oultined inRNM UPDATE Febuary 2, 2001), Democratic legislators, claiming it is time to developbusiness ties with Cuba, have introduced two bills in both the U.S. Senate and House of

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Representatives. On February 27, Senator Max Baucus sponsored the Free Trade withCuba Act (S.400) aimed at removing trade sanctions against Cuba, and the United States-Cuba Trade Act of 2001 (S.401) intended to establish normal trade relations with thatcountry. On February 28 Congressman Charles Rangel sponsored similar bills (H.R. 798and H.R. 796, respectively) in the House of Representatives. These bills have been

referred to the relevant Senate and House Committees.Push For A New WTO Round

Efforts by industrialised countries and the WTO Secretariat are intensifying to gainsupport for the launching of a new round of multilateral trade negotiations on theoccasion of the fourth WTO Ministerial scheduled for Qatar in November 2001. EUTrade Commissioner Pascal Lamy has recently announced that EU Ministers have givenhim the "necessary negotiating authority" to talk to other countries about launching a newround of global talks. Canada has been pushing for a meeting of the "Quad" (Canada, EU,Japan and the U.S.) to narrow differences regarding an agenda for such negotiations.

WTO Director General Mike Moore has sought to broaden support even further mindfulof the concerns of developing countries. In an early March address to the Pacific Forumcountries he has stated that a successful Qatar Ministerial will be one that "launches aseries of negotiations that all of us feel comfortable with, that provides enough space forall of our Members, and which ensures capacity building alongside some complexareas...". Thailand's Supachai Panitchpakdi, who will replace Mr. Moore in September2002, has adopted a fall-back position in expressing the hope that at least an outline for anew round of multilateral trade negotiations will be agreed to even if the talks cannot belaunched this year.


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RNM UPDATE

March 17, 2001



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- WTO DEVELOPMENTS- CARICOM BILATERAL TRADE DEVELOPMENTS- CANADIAN FUNDING FOR CIVIL SOCIETY- UPCOMING EVENTS

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WTO DEVELOPMENTS

Trade in Services

>From March 28-30, the Special Session of the Council for Trade in Services willbe holding a stocktaking exercise to discuss proposals submitted by Members andprovide preliminary responses to issues raised. In accordance with Article XIX of the GATS, the launch of a new round of services negotiations have begun.Member States have submitted to the Special Session of the Council on Trade inServices proposals on various issues including: elements of the new round of negotiations; negotiating guidelines and procedures; movement of naturalpersons; matters of assessment, and specific sectoral commitments. CARICOMhas notified its proposal to the Special Session.

As of March 10, sector proposals received by the WTO encompassed Business,Professional, Audiovisual, Construction, Distribution, Education, Energy,Environmental, Express Delivery, Financial, Telecom, Tourism and TransportServices, as well as proposals in relation to the Movement of Natural Personsotherwise referred to as Mode 4. The main demandeurs or proponents have beenthe USA, European Union and Japan.

The RNM is facilitating resident missions in Geneva, by providing feedback fromCARICOM countries as to their thoughts on issues raised in the proposals and tooffer guidance in general on how the region should proceed on different issues.Such issues are likely to revolve generally around the treatment of developingcountries and least developed countries, as well as in relation to the draftnegotiating guidelines and procedures.

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Draft negotiating guidelines and procedures, as well as a revised version, dated 23January 2001 and 14 February 2001 respectively, met with opposition fromMembers. The first draft met opposition from developed countries, especially theUSA, which felt that it was too development oriented. The revised draft, however,was strongly opposed by the developing countries, which felt that it significantly

reflected the US position. A third draft was submitted on March 16 and will formthe basis of ongoing discussion.

Tourism Services Symposium

Following a May 2000 proposal by the Dominican Republic, this Symposium wasorganised by the WTO Secretariat on 22-23 February with the aim of evaluatingcurrent developments in international tourism that may be of relevance to theGATS negotiations, and particularly to the proposal by the Dominican Republic,El Salvador and Honduras for a special GATS annex on tourism services. Amongthe themes discussed were the Specificity of Tourism as a Set of IndustriesHeavily Dependent on Network Services and Its Treatment in GATS, and TheCompetitive Environment - Travel Distribution Systems, Access to Informationand Issues Related to Passenger Transport. Tourism is currently the most openservice sector and more than 100 WTO Members have commitments in tourismunder the GATS. Papers and other information are available atwww.wto.org/english/tratop_e/serv_e/symp_tourism_serv_feb01_e.htm

Agriculture

Agricultural negotiations began in early 2000 and are now nearing the endof their first phase. So far 93 member governments (two thirds of the 140members) have submitted 36 proposals and three technical documents,with more promised before the phase ends. Five negotiating meetings or"special sessions" of the Agriculture Committee have been held so far: inMarch, June, September and November 2000, and February 2001. Thenext meeting will be in March 2001. It will continue the practice of theprevious meetings in which proposals and other papers received so far areexamined. Participants will also take stock of all the proposals submittedand consider what to do in the next phase and how long that should take.

Trade and Development

-While there is no consensus on a work programme, the Council for Tradeand Development has agreed to ask the WTO Secretariat to draft terms of reference for a possible study on trade-related problems of smalleconomies. This interest in the subject follows the holding on October 21,2000 of a Seminar on Small Economies at which RNM officials madepresentations.

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-A seminar on Electronic Commerce will be held on May 9. Within theWTO, E-Commerce is part of a comprehensive work programme intendedto examine all trade-related issues of that subject, taking into account theeconomic, financial, and development needs of developing countries.

Qatar Ministerial

Diplomatic alliances are being forged as the journey begins to the FourthWTO Ministerial, scheduled for Doha, Qatar, in November 2001. OnMarch 14, India and South Africa agreed to step up bilateral trade andbusiness and to work closely in WTO negotiations. Visiting South AfricanForeign Minister Nkosazana Dlamini-Zuma and her Indian counterpart,Jaswant Singh, held wide-ranging discussions on issues of interest to bothcountries and about international trade talks, reaching agreement to work out a common position along with Egypt and Brazil to be presented at theQatar Ministerial. India, South Africa, Egypt and Brazil have forged acloser working relationship at multilateral forums like the WTO to protectthe interests of developing countries, Zuma told journalists in New Delhi.

Barbados Diplomat to Chair Committee

The Deputy Permanent Representative of Barbados in Geneva, Ms.Simone Rudder, has been elected as Chairperson of the Committee on

Import Licensing in the WTO. Ms. Rudder is due to assume thischairmanship on April 9.

CARICOM BILATERAL TRADE DEVELOPMENTS

CARICOM-Canada Talks

The first meeting of the joint CARICOM/Canada Working Group toprepare for the negotiations of enhanced trade arrangements was held onMarch 15, 2001 at the Ministry of Foreign Trade, Kingston, Jamaica. Thisfollows the decision of the Heads of Government of CARICOM andCanada at their summit in Montego Bay in January 2001, to beginexploratory work on a more mature trade relationship between CARICOMand Canada.

In welcoming delegates to the meeting, Jamaica's Foreign Trade Minister,Anthony Hylton, emphasised that CARICOM and Canada wereapproaching these discussions against the background of long and positiverelations. He encouraged both sides to build those relations and toconstruct an agreement which preserves and goes beyond the existing

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trade arrangements.

The Head of the Canadian delegation, Mr. Duane Van Beselaere, Chief Negotiator and Special Advisor, Trade Policy, in replying, reiterated thatthe depth and diversity of relations between Canada and CARICOM

provided an excellent basis on which to proceed in the negotiations. Evenmore important for Canada was the fact that CARICOM was Canada'sfourth largest trading partner in the hemisphere, excluding the USA.

During the discussions the two sides identified the principles which wouldguide the negotiations and govern eventual enhanced trade arrangementsbetween them. Both sides identified a number of issues which could bepursued in future negotiations, once the respective Governments havegiven approval following completion of their national consultations.

CARICOM was represented by Sir Shridath Ramphal and Sir AlisterMcIntyre of the Caribbean Regional Negotiating Machinery, AmbassadorRichard Bernal, Lead Negotiator for CARICOM in theCARICOM/Canada discussions, representatives from Barbados, Jamaica,Trinidad and Tobago and the CARICOM Secretariat. Other members of the Canadian delegation were Ms. Jackie Snyder of the Department of Foreign Affairs and International Trade and Mr. Robert Richard of theCanadian High Commission in Kingston.

CARICOM-Dominican Republic

President Hipolito Mejia of the Dominican Republic has signed into law the Free TradeAgreement between the Dominican Republic and the Caribbean Community, thusbringing the agreement one step closer to the stage of implementation.

In a related development the Dominican Senate approved the Central American FreeTrade Agreement. However, it postponed the approval of the FTA's protocols for sixmonths so that the government may have time to renegotiate farm product concessions.The first protocol with Central America was that signed with Costa Rica, El Salvador andGuatemala (29 November 1998). Thereafter, protocols were signed with Honduras (4February 2000) and Nicaragua (13 March 2000).

CANADIAN FUNDING FOR CIVIL SOCIETY

The Canadian International Development Agency (CIDA) is inviting proposals from civilsociety for funding under the Caribbean Regional Trade Policy Responsive Fund (CRF).This Facility was established to help the Caribbean region meet the challenges of globalisation and trade liberalisation by developing its capacity in trade policy. CRF

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funds training and technical assistance projects that enhance the capacity of individualsand groups to formulate trade policy options, facilitate compliance with trade agreements,or promote effective participation in trade negotiations in the World Trade Organisation,the Free Trade Agreement of the Americas, and the CARICOM Single Market andEconomy.

The CRF will provide up to CDN $100,000 in the form of a non-refundable grant. CRFgrant recipients must also contribute to the project through financial or in-kindcontributions, or by identifying possibilities for co-financing or joint projects withgovernments or international financial institutions. Institutions, organisations andagencies in the CARICOM region are eligible. Applicants can be from the public, privateor non-governmental sectors. They must have mandates that are related to trade policyand implementation, or they must provide trade-related services and benefits togovernments, civil society organisations or the business community.

Proposed project must relate to issues in regional or international trade. It should bedesigned to foster economic development, regional co-ordination or poverty reductionthrough capacity building in trade policy formulation, co-ordination, negotiation andmanagement, as well as meeting international trade obligations. (Projects may focus onother closely related issues, such as foreign investment, intellectual property rights,standards, services, and the replacement of customs revenues with other income sources.)Projects supported by the CRF must be new initiatives. They can complement otherprojects supported by CIDA or other donors, but the grant cannot be used to completepreviously funded projects. Capacity building, government-civil society co-operation,public education, consensus building, environmental considerations and gender equalityshould be important features of proposals.

Proposals for CRF funding must be submitted to the Head of Aid at Canadian HighCommissions in Barbados, Guyana, Jamaica and Trinidad and Tobago. CIDA has issuedan electronic brochure which provides details about how proposals are to be prepared.Further information can be provided through [email protected]

UPCOMING EVENTS

Churches' Consultation on Globalisation

The Caribbean Conference of Churches, in conjunction with the World Council of Churches and the Anglican Province of the West Indies, is organising a Consultation on"Globalisation and the Islands", which will take place in Nassau, the Bahamas, fromMarch 21-24, 2001. The Consultation is intended, among other stated objectives, toprovide the ecumenical space for critical dialogue on the nature and effects of globaltrends on the small Islands of the Caribbean; develop a clear framework of concertedapproach and interventions between the State, civil society, ecclesiastical institutions andpeople's movements on contemporary issues pertaining to globalisation; Initiate a processof discernment and research on the impact of global trends on local institutions and

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situations; and create a forum of strategic approaches to sustainable public educationinitiatives on the effects of globalisation based on the values and experiences of communities in the region. The RNM's Communications Director, Henry Gill, isscheduled to deliver the feature address on "Island Economies, Globalisation and Trade".

OECS High Level RetreatThe Canadian-supported OECS Trade Policy Project has scheduled a High Level Retreatfor Senior OECS Government and Secretariat personnel involved in Trade Management.The Retreat will take place in St. Lucia on March 29-30 and is intended to provideparticipants an opportunity to exchange views and to consult on several major tradeissues including Trade Policy formation, current negotiating priorities at the WTO,FTAA and CARICOM levels, the status of the WTO Trade Policy Review of OECSStates, overall Trade Management issues and enabling institutional capacity requirementsin this respect. The Director General of the OECS Secretariat will be moderator for theRetreat. Discussion leaders will include personnel from the CARICOM Secretariat,ECLAC, OECS Secretariat and the RNM.CCL Workshop in Trinidad

The Caribbean Council of Labour is organising a Workshop for senior trade unionrepresentatives from Trinidad and Tobago on the CARICOM Single Market andEconomy (CSME) and other Related Matters - Challenges and Opportunities for TradeUnions. This activity, to be held in Port-of-Spain, on March 26-27, is the third in a seriesof sub-regional workshops organised by the CCL as part of its effort to provide suchfunctionaries with information that will assist them to better understand the implicationsof CSME, FTAA and other trade issues, such as the linkage between trade and labour.The role and function of the RNM will be one of the themes on the agenda.

UN Conference on LDCs

The Third United Nations Least Developed Countries (LDC) Conference will take placein Brussels at the European Parliament from 14-20 May. The European Union has agreedto contribute to the logistics of the conference through an allocation to the specialUNCTAD fund for LDCs. The Conference will be taking place against the background of the European Council's approval of the Everything But Arms (EBA) proposal (outlined inRNM UPDATE March 6, 2001). An NGO Forum will be organised as a shadow event tothe LDC Conference starting from 10-20 May.------------------------------------------------------------------------------------Recipients of RNM UPDATE are authorised to forward this newsletter to otheraddresses. We welcome suggestions for additions to our mailing list. If, on the otherhand, you wish to be removed from the list, kindly inform us.

------------------------------------------------------------------------------------Henry S. GillCommunications Director/ Team Leader CARICOM Trade Project,

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Caribbean Regional Negotiating Machinery (RNM)"Windmark", First Avenue, Harts Gap,Hastings, Christ Church, BarbadosTel: (246) 430-1673Fax: (246) 228-5264

http://www.caribrnm.net

RNM UPDATE

April 03, 2001

Prepared by the Communications Division of the Caribbean Regional NegotiatingMachinery (RNM), this electronic newsletter focuses on the RNM, tradenegotiation issues within its mandate and related activities.

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- WTO DEVELOPMENTS- ACP JOINT MINISTERIAL TRADE COMMITTEE MEETING IN SOUTHAFRICA- RNM TRAINING WORKSHOP ON RULES OF ORIGIN- NEWS BRIEFS

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WTO DEVELOPMENTS

Trade in Services

On 28 March 2001 the Special Session of the Council for Trade in Servicesadopted "Guidelines and Procedures for the Negotiation of Trade in Services"(S/L/93), thereby setting the framework for negotiation of further servicesliberalisation in keeping with Article XIX of the General Agreement on Trade inServices (GATS). After long debate and four document revisions, this agreementtakes into account various proposals advanced by developing countries, includingCARICOM, in specifying the agreed Objectives and Principles, Scope, andModalities and Procedures for future negotiations on Services to advance ruleformulation and expand specific commitments in the sector.

The Objectives and Principles stipulate that negotiations shall be conducted on thebasis of progressive liberalisation; they recognise the right of Members toregulate, and to introduce new regulations, on the supply of services. They specifymoreover that negotiations shall aim to increase the participation of developing

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countries in trade in services and reaffirm that there shall be appropriate flexibilityfor developing countries. The process of liberalisation shall take place with duerespect for national policy objectives, the level of development and the size of economies of individual Members, both overall and in individual sectors, withdue consideration given to the needs of small and medium-sized service suppliers,

particularly those of developing countries.With respect to Scope, while there shall be no a priori exclusion of any servicesector or mode of supply, special attention shall be given to sectors and modes of supply of export interest to developing countries. MFN exceptions shall be subjectto negotiation but appropriate flexibility shall be accorded to individualdeveloping country Members. Negotiations on Safeguards are to completed by 15March 2002. Members shall also aim to complete negotiations on Articles VI.4(Qualification Requirements and Procedures, Technical Standards and LicensingRequirements), XIII (Government Procurement) and XV (Subsidies), prior to theconclusion of negotiations on specific commitments.

The Modalities and Procedures stipulate inter alia that the negotiations shall beconducted in Special sessions of the Council for Trade in Services and thatliberalisation shall be advanced through bilateral, plurilateral or multilateralnegotiations, the main method of negotiation being the request-offer approach.Individual developing country Members shall be accorded appropriate flexibilityfor opening fewer sectors, liberalising fewer types of transactions, progressivelyextending market access in line with their development situation and, whenmaking access to their markets available to foreign service suppliers, attaching tosuch access conditions in keeping with Art. IV of GATS (which addressesIncreasing Participation of Developing Countries). Based on mutually agreedcriteria, account shall be taken and credit shall be given in the negotiations forautonomous liberalisation under by Members since previous negotiations.

Moreover, the Council for Trade in Services in Special Sessions shall continue tocarry out an assessment of trade in services in overall terms and on a sectoralbasis with reference to the objectives of GATS and Art. IV in particular, andnegotiations shall be adjusted in the light of the results of the assessment.Technical assistance shall be provided to developing country Members, onrequest, in order to carry out national/regional assessments. In implementing Art.IV consideration shall be given to the needs of small service suppliers of developing countries. Finally it is agreed that the proliferation of subsidiarybodies should be avoided to the maximum extent possible and meetings should bescheduled taking into account the needs of smaller delegations.

Agreement on the Guidelines and Procedures coincides with the completion of thestocktaking exercise by the Special Session of the Services Council at its meetingof March 28-30, and marks the fulfilment of a key element in the Servicesnegotiating mandate opening the way for governments to move forward with rulemaking and get into the market access negotiation phase. Negotiating sessions

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will be held in May, July and October, during which the Council, in addition to itsstanding agenda, will consider in detail the more than 70 negotiating proposalssubmitted. Further meetings would be held in December and March 2002, atwhich point the Council would review progress in the negotiations.

The WTO Secretariat has produced a booklet on trade in services entitled 'GATSFact and Fiction', which is available athttp://www.wto.org/english/tratop_e/serv_e/gats_factfiction_e.htm

Qatar Ministerial

Positions are already polarising as to whether the Fourth WTO Ministerial, to beheld in Doha, Qatar, in November 2001, should be an occasion for launching acomprehensive new Round of multilateral trade negotiations, an issue whichnecessarily influences the preparatory process for the Ministerial. Developedcountries are arguing in essence that a new Round is needed to preventbacksliding into protectionism. The European Union, the major proponent of anew Round, argues with support from Japan for a comprehensive agenda, on theground that this offers the best possibilities for trade-offs and will facilitateconcessions in the agricultural sector, which is heavily subsidised. Faced withdemands from developing countries to make progress on implementation issues,which is their high priority concern, developed countries are attempting to tieprogress in this area to the holding of a new Round. Examples of difficultiesfacing developing countries in implementation relate to the TRIPS, Sanitary andPhytosanitary (SPS) and textiles agreements.

The WTO Director-General, Mike Moore, has also been actively promoting a newRound, which has raised questions as to whether it is correct and proper for himand any other part of the Secretariat to promote a subject over which there is asyet no consensus, and in fact there are

serious differences among the membership, and it has been suggested thatthis compromises the neutrality of the WTO Secretariat.

The position of most developing countries is that they cannot support anew Round unless implementation issues are resolved. Indeed, theygenerally do not regard a new Round as a priority. For them themultilateral trade agenda is already packed with mandated negotiations onAgriculture and Services underway, mandated reviews and confidence-building initiatives, even as Implementation issues related to UruguayRound commitments continue to be a major concern. They consider thatthe Ministerial meeting should review and assess ongoing work derivingfrom the Singapore and Geneva Ministerial mandates and to issue newguidelines for further work. In this context Ambassador Ransford Smith of Jamaica has argued at a conference organised last month by the ThirdWorld Network that, "We don¹t need a new Round now because a major

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and significant plateau in multilateral trade liberalisation was attained fiveyears ago and the commitments assumed in that Round are still beingimplemented by a large number of countries... we do not believe that acomprehensive negotiating Round with a slew of new issues will be adesirable development".

Most developing countries, particularly the smaller ones, already considerthe trade agenda overloaded and do not want to take on morecommitments than they can digest. They will be facing pressures toinclude in such a negotiation investment, competition policy, governmentprocurement (subjects currently discussed within Working Groups), aswell as trade and labour standards, trade and environment and other"trade-related" new issues. The trade-related prefix could eventually beattached to human rights, tax systems, cultural behaviour and othersubjects. Developing countries have been arguing inter alia that they arestill to realise the much-touted benefits of the Uruguay Round; that theygave away too much in that Round, especially in relation to intellectualproperty rights; that the system is not equitable; that issues related tocapacity building have not been addressed sufficiently; and that theinternal transparency of the WTO continues to require overhaul. Thechallenge in the coming months is for developing countries to actconcertedly in protecting their interests.

ACP JOINT MINISTERIAL TRADE COMMITTEE MEETING INSOUTH AFRICA

At the invitation of the Government of South Africa 18 ACP Ministers,who are members of the Joint Trade Ministerial Committee under theACP-EU Cotonou Agreement, will attend a meeting from from April 10 -11 on the theme of 'Perspectives for the ACP on Negotiations with theEuropean Union'. South Africa's intention is to share with ACP Ministersthe experience of negotiating with the EU their bilateral free tradeagreement on Trade, Development and Cooperation. Negotiations for thisagreement were formally initiated in June 1995 and concluded at theBerlin Summit of March 1999 opening the way for bilateral trade to beentirely liberalised over 12 years.

The last afternoon session of the second day is devoted to a 'Meeting of ACP Ministerial Trade Committee'. At this session Minister AnthonyHylton of Jamaica is expected to speak to the need for the development of an ACP negotiating strategy for the negotiations with the EU beginning inSeptember 2002. CARICOM's Council for Trade and EconomicDevelopment (COTED) previously agreed the RNM's proposal for earlydialogue with African and Pacific Ministers on this matter. With thebenefit of the RNM's studies, Caribbean Ministers hope to develop an

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ACP process for formulating the negotiating strategy.

Jamaica, St. Lucia and the Dominican Republic are the three Caribbeanmembers of the Trade Ministerial Committee. The RNM's Chief Negotiator Sir Shridath Ramphal will also participate in the meeting.

RNM TRAINING WORKSHOP ON RULES OF ORIGIN

Continuing its series of training workshops on trade negotiation subjectsfunded through the CRNM/IDB Project, a Training Workshop on Rules of Origin will be held in Barbados from May 3-5, 2001. The purpose of theWorkshop is to:

-provide participants with an appreciation of the structure and content of Rules of Origin which are being administered in preferential schemes,

particularly those in sub-regional groupings and bilateral arrangements inthis Hemisphere;

-provide an overview of the status of the work being undertaken in theWTO and the WCO (World Customs Organisation) on non-preferentialRules of Origin;

-examine the implications for the region of the harmonisation of generalRules of Origin;

-equip participants to contribute to the development of the CARICOMnegotiating position on Rules of Origin in the FTAA.

This Workshop is of particular relevance to CARICOM, which has not been directlyinvolved in the work being undertaken by the WTO and WCO on the harmonisation of non-preferential Rules of Origin, but which will need to know the implications of thesemeasures. This Workshop is thus particularly relevant to the work of trade officials,Customs Administrations, Chambers of Commerce, and the private sector (with specialemphasis on the productive sectors). For further information please [email protected]

BRIEFS

DR-Haiti Free Trade Talks

The Minister of Industry and Commerce of the Dominican Republic Angel Lockwardannounced upon his return from Haiti on March 29 that talks will be held to work towards the signing of a free trade agreement with the neighbouring country. In Haiti, hehad met with Prime Minister Jean Marie Cherestal and Minister of Industry and

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Commerce Stanley Theard on the subject.

DR Free Zones

The director of the Dominican Republic's National Council of Export Free Zones, Janette

Dominguez, said that the 481 businesses in operation in 2000 generated US$1,018million, up 14.7% from US$887.3 million in 1999. Of the free zone operations, 52% aretextile operations, 12% services, 6% tobacco plants and 4% footwear companies. In2000, eight new free zone parks were approved, calling for a RD$331 million investmentand the creation of 38,000 new jobs.

Pro-Cuba Lobby Formed in U.S.

The Cuba Policy Foundation, a new non-partisan, privately-funded U.S. lobby group ledby former State Department officials in Republican Administrations, was announced onMarch 28. The Foundation, to be located in Washington D.C.,is advocating an end to theU.S. ban on trade with Cuba and the complete normalisation of relations. The Group'spresident Ambassador Sally Grooms Cowal, a former Deputy Assistant Secretary of Statefor Inter-American Affairs Under President George Bush and Ambassador to Trinidadand Tobago under President Clinton, argues that there is a silent majority, includingCuban Americans, who are not in favour of the current policy and has vowed to counterthe influence gained by Cuban American exiles in the Bush administration. AmbassadorCowal housed Elian Gonzales and his father last year while they lived in Washington,D.C. The Group hopes to build support at the grass-roots level by educating people towhat the United States is really missing out on with a failed policy on Cuba. The boardchairman of the foundation is William Rogers, who was Assistant Secretary of State forInter-American Affairs under former President Gerald Ford.


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