v. atkins - trade agreement 101: agricultural trade

TRADE AGREEMENTSTRADE AGREEMENTS 101Vincent Atkinswww.crnm.org

2

Implications of Trade Agreements for AgricultureAgreements for Agriculture

Implications of Trade Agreements for Agriculture

Agriculture Trade in CARICOMg3


Agriculture Trade in CARICOMg4

Limited range of exports, comprised mainly of primary agricultural products – sugar, rice, bananas, primary agricultural products sugar, rice, bananas, fresh fruits, vegetables and root crops.Wide range of imports mainly processed foods Wide range of imports mainly processed foods including grains and cereals, beverages, meat and fish products, dairy products, oils and fat.


Agricultural Trade in CARICOMg

Limited number of markets, mainly regional (fruits,

5

Limited number of markets, mainly regional (fruits, vegetables and root crops); Europe (rice, sugar, bananas, rum, sea-food) US and Canada (sugar, , , ) ( g ,rum, tropical fruits and vegetables, sea-food)Heavy concentration on export of primary products y p p y pin most countries – Guyana, Belize, Jamaica, Suriname and Windward Islands.


Limitations to Growth in Ag i lt i CARICOMAgriculture in CARICOM

Limited scope for large scale production in

6

Limited scope for large scale production in individual countries except Guyana and Belize.Limited scope for mass production of processed Limited scope for mass production of processed goods in individual countries- lack of domestic capacity.p yLimitations imposed by high input costs, high transportation, processing and labour costs.Structural and Infra-structural weaknesses.


Opportunities for Growth of Ag i lt i CARICOMAgriculture in CARICOM

Availability of preferential markets under secure

7

Availability of preferential markets under secure trading arrangements.Relative proximity to markets.Relative proximity to markets.Skilled and educated labour force.Scope for joint undertakings at regional level to Scope for joint undertakings at regional level to overcome scale dis-economies.Scope for production of high value productsScope for production of high-value products.Availability of niche markets.


Opportunities for growth in Ag i lt i CARICOMAgriculture in CARICOM

Relatively supportive/conducive policy environment.

8

e a ve y suppo ve/co duc ve po cy e v o e .Competitive advantage in high skilled, high value, or luxury purchases – high value rum, for example.Accessibility to imported raw material and other inputs for agro-processing ( scope for cumulation under rules f i i )of origin).

Improved rules and regulations in relation to investments; trade facilitation; services – regionally and investments; trade facilitation; services regionally and internationally.


Opportunities for Growth in Ag i lt i CARICOMAgriculture in CARICOM

Existence of new and emerging markets - Latin

9

Existence of new and emerging markets Latin AmericaHigh end markets in China, Japan, India, BrazilHigh end markets in China, Japan, India, Brazil


Products with relative protection in d ti / i l k t domestic/regional markets

Spirits and spirituous Most fruits and 10

p pbeveragesAerated beverages

vegetablesBeverages, sauces,

Vegetable OilsPoultry and most meats

jams, jellies, and other condiments.T band meat products

Most fish and fish d t

Tobacco

productsOrnamental plants and flowersand flowers


Market Access Concerns

Elimination of Customs duties.

11

Elimination of Customs duties.

Supportive Rules of OriginSupportive Rules of Origin.

Eli i i f N iff b i C d i Elimination of Non-tariff barriers; Conducive Technical Regulations, standards and SPS measures


Existing Trade Arrangementsg g

CSME – facilitates regional production and trade.

12

CSME facilitates regional production and trade.EPA – allows duty free, quota free entry into EU market for all agricultural products.market for all agricultural products.Special safeguard provisions seek to protect domestic production and regional markets and domestic production and regional markets and provide opportunities for development.List of products excluded from liberalisation in List of products excluded from liberalisation in CARICOM.


Existing Trade Arrangementsg g

Bilateral arrangements with Costa Rica, DR,

13

Bilateral arrangements with Costa Rica, DR, Colombia, Cuba, Venezuela CBI Arrangement with the US – Potential for new CBI Arrangement with the US Potential for new free trade agreement.CARIBCAN Arrangement with Canada –CARIBCAN Arrangement with Canada Negotiations of new trade and development agreement initiated. Potential for duty-free, quota-free entry for CARICOM products. List of excluded products to be negotiated.


Agriculture in the WTOg

Limited change in domestic agricultural policies of

14

Limited change in domestic agricultural policies of small vulnerable economies. Tariff reduction from bound rate – unlikely to affect Tariff reduction from bound rate unlikely to affect applied rates.Provisions for Special products – protection of Provisions for Special products protection of domestic production and food security.Special provisions for products which benefit from Special provisions for products which benefit from special preferences in US and EU markets.


Agriculture in the WTO g

Tariff reduction in developed and advanced 15

pdeveloping countries may lead to marginal improvements in market access to these markets for

i i [ hi h l hi h li ] dcompetitive [ high value, high quality] products.

P i f hi h b id l l i d l d Persistence of high subsidy levels in developed economies will undermine competitiveness of producers in CARICOM and other developing producers in CARICOM and other developing countries. Need improvement in production/marketing practices.


Agriculture in the WTOg

Special safeguard mechanism for agriculture may

16

Special safeguard mechanism for agriculture may provide relief from adverse competition.Scope for use of incentives to agriculture (domestic Scope for use of incentives to agriculture (domestic support) under Special and differential provisions but limited by budgetary constraints and other y g ydomestic and internationally-determined [ IMF, World Bank] policies.


ACTIVATING EPA BENEFITS IN AGRICULTUREAGRICULTURE

BECOME FAMILIAR WITH THE AGREEMENTS

17

BECOME FAMILIAR WITH THE AGREEMENTS INCLUDING THE RULES OF ORIGIN FOR AGRICULTURAL AND FISHERIES PRODUCTS.

ARTICULATE DEMAND FOR TECHNICAL ARTICULATE DEMAND FOR TECHNICAL ASSISTANCE ESPECIALLY IN THE AREAS IDENTIFIED FOR CO-OPERATION IN AGRICULTURE .



UTILISE OPPORTUNITIES PROVIDED FROM

18

UTILISE OPPORTUNITIES PROVIDED FROM PROVISIONS ON CUMULATION FROM EC, ACP AND NEIGBOURING COUNTRIES.

SEEK TECHNICAL/DEVELOPMENT ASSISTANCE TO SEEK TECHNICAL/DEVELOPMENT ASSISTANCE TO MEET MARKET ENTRY REQUIREMENTS: STANDARDS, TECHNICAL REGULATIONS, FOOD SAFETY REGULATIONS.



FOCUS ON DEVELOPING AND MAINTAINING

19

FOCUS ON DEVELOPING AND MAINTAINING COMPETITIVENESS ON DOMESTIC, REGIONAL AND EXTERNAL MARKETS – BASED ON COST, ,EFFICIENCIES, QUALITY, MARKETING ETC.DO NOT BE LULLED INTO A FALSE SENSE OF SECURITY BY PROVISIONS PERTAINING TO EXCLUSIONS OR EXTENDED TIMEFRAMES FOR TARIFF REDUCTION. TARIFF MAY NOT BE THE MOST CRITICAL BARRIER.



BECOME FAMILIAR WITH THE AGREEEMNTS AND

20

BECOME FAMILIAR WITH THE AGREEEMNTS AND ENGAGE WITH BOTH DOMESTIC AND REGIONAL POLICY MAKERS TO SEEK TO INFLUENCE NEW TRADE ARRANGMENTS IN YOUR FAVOUR.

DONT BE PASSIVE, BE INVOLVED !!!


Thank You21

Please visit our Website:

http://www crnm orghttp://www.crnm.org

C t tContact:Mr. Vincent Atkins

LDC Trade Policy/ Technical Advisory/

[email protected]

Tel: +1246 430 1670 Fax: +1246 228 9528


v. atkins - trade agreement 101: agricultural trade

Investor Relations