1. Making Effective Use of Trade Agreements
Presentation by
Pamela Coke-Hamilton

2. 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)

3. 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
information taken from the statement at the conclusion of 26th COTED (24-25 November 2008)

4. CARICOM Exports to FTA Partners
Dominican Republic
Venezuela
Colombia
Costa Rica
Cuba
We find that in the case of the Dominican Republic and Colombia there has been an increase in exports to these countries after the signing of the trade agreements, though in the case of Colombia this has occurred after The value of exports to Cuba also has increased compared to the value of exports at the time of signing. However much of the increase in exports is due to exports from a single country -Trinidad and Tobago.
(note that data for Antigua and Barbuda and Montserrat are missing, also note that the definition of CARICOM is as used in the respective trade agreements, eg. in both agreements with Colombia and Venezuela, Bahamas , Suriname and Haiti are not included, while in Costa Rica, Bahamas, Haiti and Montserrat are not included, while in the DR Bahamas, and Haiti are excluded)
Source of data is the IMF Direction of Trade Statistics

5. Limited Effective Market Access
Share of Imports from CARICOM in Respective Country Total Imports (%)
Date of Signature of FTA
2007
Costa Rica
0.24% (2004)
0.15%
Cuba
1.06% (2000)
0.76%
Dominican Republic
0.65% (1998)
1.85%
Colombia
0.52% (1994)
0.97%
Venezuela
0.52% (1992)
0.19%
Share of partner countries’ markets have only increased in two cases, the Dominican Republic and Colombia (data taken from the IMF direction of trade statistics)

6. Utilization Rate (%) of CBI by CARICOM
The data finds that over the last eight years an average of 33% of the goods exported by CARICOM to the US entered that market under the preferential terms accorded by CBI. .(utilization rate defined as US imports under CBI from CBI country divided by total US imports from CBI country) Source of data is USITC

7. 2007 Utilization Rate (%) of CBI
A look at more detailed figures for 2007, finds that there is a wide dispersion in the use of the CBI provisions from a high of 88% in Haiti to 1.6% in the case of Antigua and Barbuda (and 0% in the case of Montserrat). Though for five of the countries, just over 30% of their exports benefit from CBI.
The source of this information is the USITC

8. % of Imports that Benefit from CARIBCAN
Year
Imports Under CARICAN ($CDN millions)
Total imports
($CDN millions)
CARIBCAN Imports as of total imports (%)
2006
114.7
925.8
12.4
2005
116.7
862.0
13.5
2004
120.9
784.1
15.4
2003
109.4
769.6
14.2
2002
152.5
705.6
21.6
2001
111.6
764.9
14.6
2000
62.0
519.0
11.9
1999
64.9
527.2
12.3
1998
40.7
547.6
7.4
1997
22.6
531.6
4.3
Over the last 10 years an average of 12.8% of imports from the CARIBCAN CARICOM beneficiaries benefit from the CARIBCAN duty-free preferential treatment. Though the current trend indicates that the value of the goods benefiting from the preferential treatment has been declining, from a high of 21.6% in 2002 to 12.4% in 2006

9. Canada Imports from CARICOM in 2006
Country
MFN Free as % of Total Imports
GPT Free as % of Total Imports
CARIBCAN Free as % of Total Imports
Total Free as % of Total Imports
Antigua & Barbuda
38.42 ..
20.08
58.50
Bahamas
73.25
0.00
20.88
94.13
Barbados
44.28
30.65
21.66
96.59
Belize
87.68
2.02
0.66
90.36
Dominica
31.64
Grenada
44.16
29.36
26.06
99.58
Guyana
95.8
3.54
0.26
99.59
Jamaica
94.42
0.05
3.59
98.06
Montserrat
77.41
St. Kitts & Nevis 34
0.11
34.11
Saint Lucia
86.69
St. Vincent/Gren.
79.07
1.62
80.68
Trinidad & Tobago
69.12
29.62
98.79
Total
84.20
1.08
12.39
97.67
One feature of CARICOM trade with Canada is that even though there is low utilization of the preferences available under CARIBCAN, a significant portion of the countries’ exports enters Canada duty free due to zero tariffs offered under most favoured nation (mfn) and the general preferential tariff (gpt)

10. EC 27 Imports from CARIFORUM Countries (€’ millions)
Jan-Aug 2007
Jan-Aug 2008
Antigua & Barbuda
177.3
100.1
Barbados
34.5
28.7
Bahamas
480.7
511.9
Belize
68.5
78.8
Dominica
8.8
6.9
Dominican Republic
573.7
579.0
Grenada
3.9
8.6
Guyana
131.0
132.8
Haiti
23.5
22.0
Jamaica
337.9
379.1
St. Kitts & Nevis
2.8
1.6
St. Lucia
43.9
15.1
St. Vincent & the Grenadines
79.6
117.0
Suriname
176.9
131.9
Trinidad & Tobago
657.9
1,594.8
In total during the eight month period of 2008, during which the CARIFORUM countries were provided with duty-free access to the EU markets, the EU imported some €3.7 billion from these countries compared to €2.8 billion in same period in The main driver was the petrochemical sector in Trinidad and Tobago. In the case of Grenada and St. Vincent and the Grenadines the exportation of boats contributed to the increase in exports.

11. Reasons for the Lack of Implementation
Capacity
Funding
Shift of methodology – Private Sector
Infrastructure
Supply side constraints, etc.

12. 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

13. Structure for Implementation
Lobbying /Political
Research AG BS BB BZ DM GD GY JM KN LC VC TT SR HT
OECS Member Countries
Executive Director RA LA
Legal
Private Sector
Project Fund Development
National Impl. Liaison
National Implementation Bodies
PSO
T.S.
P.O.
Regional Implementation Mechanism
Mon.& Eval. Unit
ME.O

14. Potential Winners Tourism Cultural/Entertainment Services
Geographical Indicators – eg Caribbean Rum, Grenadian Nutmeg, Trinidad Cocoa,
IPR – biological diversity – development of natural medicines – traditional knowledge

15. 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
Market Research – Specific potential for market penetration, potential niche markets; what will sell, what will work
Legal – Mutual Recognition Agreements; Immigration policies, professional services;
Private sector- Understanding how the private sector works- what are the specific needs and shortcomings; how do they need to retool to take advantage
National Liaison Unit – self evident
Project Fund Development – Inherent weakness in capacity of the Caribbean to draw down on available funds – several reasons however is a reality that needs to be addressed in order to ensure timely, relevant and continuous access to critically needed funding
Monitoring and Evaluation Unit

16. Thank you Pamela Coke-Hamilton Director of Trade and Tourism
Organization of American States