RNM UPDATE 0417

October 30, 2004

Prepared by the Communications Division of the Caribbean Regional Negotiating Machinery (CRNM), this electronic newsletter focuses on the RNM, trade negotiation issues within its mandate and related activities.

-  HIGH-LEVEL ACP MEETINGS CONVENED

-  LAMY UNVEILS COMMISSION PROPOSAL ON NEW BANANA REGIME

-  RNM PARTICIPATES IN CONFERENCE ON ADAPTING BORDER CONTROLS

-  TRADE AND LABOUR FORUM HELD IN SURINAME

-  RACE FOR NEW WTO DG GAINS MOMENTUM: SPECIAL FEATURE

-  NEWS BRIEFS

-  UPCOMING EVENTS

[La versión en espanol del Boletín MRN esta disponible en el sitio Wed de la MRN  (www.crnm.org)]

HIGH-LEVEL ACP MEETINGS CONVENED

The Tenth Meeting of the Africa Caribbean Pacific (ACP) Ministerial Trade Committee (MTC) was held in Brussels, October 26 (refer to www.crnm.org for further details on this and other related meetings). Chaired by the Trade Minister of Ghana, focus was on the three major agenda items, viz. (a) consideration of the Report by the Joint ACP-European Union (EU) Technical Monitoring Committee (TMC) on the State of Play of Economic Partnership Agreement (EPA) Negotiations, (b) progress on the Doha Work Programme, and (c) preparations for the Fifth Joint ACP-EU MTC.

The report of the Joint TMC provided a state of play in the six ACP regions that have now all launched EPA negotiations with the EU. The discussion on World Trade Organization (WTO) issues was facilitated by a written report on the state of Doha Agenda negotiations presented by the Convenor of ACP Ambassadors in Geneva, Ambassador Bernard Weston of Trinidad & Tobago. The meeting agreed on an enumeration of specific ACP interests, namely WTO implementation issues, preference erosion and agricultural market access.  ACP Ministers highlighted the need to deepen the level of co-ordination of the G90.  In pursuit of this objective, the meeting was informed of plans to convene a joint ACP/African Union (AU)/Least Developed Countries (LDC) Ministerial in early 2005.

The Fifth Meeting of the Joint ACP-EU MTC, co-chaired by the EU Commissioner for Trade and the Ghanaian Minister of Trade, was held in Brussels, October 27. The agenda focused on: (a) State of Play of EPA Negotiations, (b) WTO negotiations, and (c) consideration of other trade issues.

The ACP underscored its understanding that regional integration should be extended beyond the creation of regional markets, to infrastructural support required to underpin such an enlarged economic space. The strengthening of physical infrastructure was highlighted as one of the principal requirements within all ACP regions, and the EU was invited to lend its financial support to such ventures. The ACP also voiced its interests in collaborating with the EU in the WTO arena on defining a level of product coverage for North-South regional trade agreements that would be consistent with ACP regions’ development needs.  During the exchange on WTO matters, the ACP repeated its concern that WTO negotiations of trade facilitation should not crowd out the treatment of developmental issues that are of deep interest to ACP member states.

The final substantive agenda item of the Fifth MTC focused on three issues, inter alia: (a) the reform of the EU Sugar Regime, (b) Article XXVIII negotiations on unbinding the EU banana tariff, and (c) the proposed EU GSP programme.

Representing the Caribbean Regional Negotiating Machinery (RNM) at the meeting were Senior Director, Mr. Henry Gill and Brussels Representative, Mr. Junior Lodge.

LAMY UNVEILS COMMISSION PROPOSAL ON NEW BANANA REGIME

EU Commissioner for Trade, Pascal Lamy, announced a 230 euro per ton tariff on Latin American bananas, October 27.  A first proposal for a new banana regime, it would remove the existing quotas on Latin American and ACP bananas and put in place tariffs instead, to regulate trade.  

The proposal was roundly criticized.  The United States and Latin American countries view the tariff as too high.  For their part, ACP countries maintain the proposed tariff is too low. 

The European Commission has indicated that it is working toward a January 1, 2006 date to have in place a tariff-only system.  In the interim, a date has to be set for the EU and its trading partners to undertake Article XXVIII negotiations on the new tariff. 

RNM PARTICIPATES IN CONFERENCE ON ADAPTING BORDER CONTROLS  

The RNM’s Director of WTO Affairs, Dr. Anthony Gonzales, participated in a ‘Trade and Security Conference’ organized by the University of the West Indies (Trinidad & Tobago), the Council on Foreign Relations and the Santo Domingo-based Global Foundation for Democracy and Development (FUNGLODE) in Santo Domingo, Dominican Republic, October 25 to 26.

Subjects examined were: i) the implications of porous borders for trade and development; ii) adapting ports of entry to practices to support trade and development; and, iii) the private and public sector dimensions of short and medium term strategies for overcoming barriers.

Dr. Gonzales’ presentation focused on the comparative experience of the region in confronting traditional and new security threats.  His focus was on the efforts to facilitate trade and at the same time meet international security requirements.  Dr. Gonzales underscored that the region was still experimenting with the various supply chain models, including that of the World Customs Organization.  He noted, many countries had not yet come to terms with key aspects of these models, such as risk management, information and cost sharing and private-public sector collaboration.

Deliberations on shipping highlighted that ships and ports are now required to implement a broad range of security measures covering communications, port and ship access control, monitoring people and cargo, and screening personnel, baggage, cargo and vehicles.  Participants noted that there are important consequences for meeting the new trade facilitation standards to which small Caribbean states are now committed to negotiate in the WTO, as a result of the July Framework Agreement on trade facilitation, including additional costs that are high for such small states.  Compliance with the US Container Security Initiative (CSI), Customs-Trade Partnership Against Terrorism (C-TPAT) and the new international maritime security rules in the International Ship and Port Facility Security Code (ISPS) were also discussed in detail; allied to which was an examination of their significance for raising maritime and port security to levels now in effect for aviation security. 

One topic that received considerable attention was the extent to which the Dominican Republic should build upon existing regional arrangements so as to harmonize standards and to improve its overall capacity for monitoring and inspecting the flows of people and goods originating from or trans-shipping through North, South and Central America and the Caribbean.  Participants identified the likely barriers to improving the status quo and formulated responses to the current challenges associated with controlling national borders in the Dominican Republic and the implications for trade and development.

The Conference was attended by high-level officials from government ministries, private sector and security agencies.  President Lionel Fernandez was a keynote speaker.  Key contributions also came from Professor Anthony T. Bryan, Senior Associate, Center for Strategic and International Studies, Dr. Stephen E. Flynn, Senior Fellow, Council on Foreign Relations and Lic. Frederic Emam-Zade Gerardino, Director General, FUNGLODE.

TRADE AND LABOUR FORUM IN SURINAME

A joint International Labour Organization (ILO)-PROMALCO/ RNM/Caribbean Congress of Labour (CCL) ‘Seminar on Regional Integration and Implications for the Labour Movement’ was convened in Paramaribo, Suriname, October 18 to 20.  The encounter provided an opportunity for representatives of workers’ organizations throughout the Caribbean to interface with the RNM and to exchange views on measures to ensure that the views of labour are appropriately accounted for, both in respect of general issues in trade negotiations and on matters of specific relevance to labour.

Dr. Anthony Gonzales provided labour representatives with an update on the status of external trade negotiations across the three major trade negotiating arenas, in which the region is involved.  The RNM’s Senior Research Professional, Mr. Vincent Atkins, also made a presentation on the treatment of labour issues, particularly core international labour standards in trade negotiations.  Mr. Atkins underscored the implications of trade liberalization for labour, including its likely impact on employment, income and social security. 

Labour representatives were also invited to become more involved in national consultations which give rise to the positions of CARICOM countries on trade issues.  The meeting agreed to a proposal that the CCL would identify one individual who would serve as a liaison between the RNM and labour representatives, in order to facilitate the sharing of information and an exchange of views.  Participants hailed the encounter as a success, lauding the workshop organizers for putting the event together. 

A public lecture by the Rt. Hon Owen Arthur, Prime Minister of Barbados, to the 15th Triennial Delegates’ Congress, CCL, titled “The Role of Labour in Promoting the Caribbean Single Market and Economy”, delivered in Paramaribo, Suriname, October 19 is available on the RNM’s website - www.crnm.org

RACE FOR NEW WTO DG GAINS MOMENTUM: SPECIAL FEATURE

The term of the current WTO Director General, Dr. Supachai Panitchpakdi, comes to an end September 1, 2005.  He took up his appointment September 1, 2002. Preparations for the appointment of a new Director General are currently underway. 

Selection Process

Formal nominations of candidates are scheduled for December 2004.  The WTO General Council Chair, Shotaro Oshima, along with other Chairs, will hold consultations between February and May 2005, regarding the candidates.   According to reports, Oshima has indicated the next Director General will be selected by May 31, 2005, at the latest (for further information on the appointment procedures, see WTO document WT/GC/W/482/Rev.1).

Appointment of a Successor

Under WTO rules, a nominee for Director General must be nominated by his/her country. As head of the WTO Secretariat, the Director General is usually appointed for a four-year term. 

However, following the departure of Renato Ruggiero as WTO Director General, April 1999, WTO members were unable to arrive at a consensus for a single candidate as a successor.  As a compromise, a term sharing arrangement was devised.  New Zealand’s former Prime Minister Mike Moore and Thailand’s former Deputy Prime Minister Supachai Panitchpakdi would each have a three-year tenure, in consecutive terms.  The WTO General Council agreed that neither Mr. Moore nor Dr. Panitchpakdi would be eligible for reappointment as Director General, and neither will have his period of office extended.

WTO/GATT Director Generals

When Panitchpakdi took up office in 2002, he was the first Director General from a developing country.  Below is a listing of Director Generals, their nationality and period of service:

WTO

Supachai Panitchpakdi (Thailand) 2002 to 2005

Mike Moore (New Zealand) 1999 to 2002 

Renato Ruggiero (Italy) 1995 to 1999

GATT

Peter Sutherand (Ireland) 1993 to 1995

Arthur Dunkel (Switzerland) 1980 to 1993

Olivier Long (Switzerland) 1968 to 1980

Eric Wyndham White (Britain) 1948 to 1968

The Contenders

To date, there are three confirmed candidates from developing countries for the position.  A candidate from a developed country withdrew his name from the running, in early October.  Since then, the name of a possible candidate from a developed country has surfaced.  There remains, however, speculation regarding other potential candidates. 

Candidates from Developing Countries

Uruguay

Former Chair of the WTO’s General Council and Uruguay’s former Ambassador to the WTO, Carlos Perez del Castillo, has signalled his interest in the position, and is backed by his government and some other Latin American governments.  Castillo played a pivotal role in the Geneva preparations for the Fifth WTO Ministerial Conference and in efforts to put the Doha Round back on track, following the collapse of the Cancun Ministerial.  His nomination, however, has come to the chagrin of Brazil, which was hoping to put forward a single Mercosur candidate.  According to informed sources, Brazil and Uruguay have clashed over the WTO candidacy.

Brazil

In early October, Brazil officially announced its intention of launching the candidacy of Ambassador Luiz Felipe de Seixas Correa, the Brazilian envoy to the WTO.  As with Ambassador Castillo, he is at the center of a diplomatic dispute between Brazil and Uruguay.  Given Brazil’s leading role in the G20 Alliance, its candidate may hold significant sway with G20 at large, increasing the chances of a successful run.  Brazil, however, is one of the complainants in the export subsidies on sugar dispute with the EU.

Mauritius

Apart from the Brazilian and Uruguayan candidates, the only other confirmed candidate from a developing country in the race at this time is that of Mauritius, in the name of Hon. Jayakrishna Cuttaree, Minister of Foreign Affairs and International Trade and Regional Cooperation.  Mauritius is a member of the ACP Group, and has been a very close CARICOM ally in the WTO on numerous issues.  Minister Cuttaree together with Hon. Clement Rohee, CARICOM Ministerial Spokesperson for WTO issues and Minister of Foreign Trade and International Cooperation, Guyana were the most active in advancing the concerns of the tripartite alliance of the AU, the ACP and the LDCs or G90 Alliance.  Mauritius is also a very active member of the Small Economies alliance and a supporter of issues that are germane to CARICOM countries in the WTO.

As regards Mauritius’ bid, it is less than certain, at this stage, whether  Africa is backing any one single candidate, or that it has formally agreed to do so. 

Candidates from Developed Countries

Canada

Canada’s former Trade Minister and WTO Ambassador Sergio Marchi, a developed-country contender, was in the running for the top job, but has since pulled out – as of October 10.  Had he remained in the race, though, his bid would have been at a disadvantage as fellow Canadian, Don Johnston, currently serves as Secretary-General of another European-based inter-governmental organization, the Organisation for Economic Cooperation and Development (OECD).

France

A possible bid by Pascal Lamy, the EU’s outgoing Trade Commissioner, has also been talked about in trade circles, in recent weeks.  Reportedly, Lamy is seriously considering the job.  Earlier this month, according to press reports, President Jacques Chirac apparently said that France would not oppose Lamy’s candidacy. 

Outside of any possible run by Lamy, however, informed sources have suggested that most likely a candidate could emerge from the EU.

Other Potential Candidates

Other potential African candidates may yet surface.  For example, press reports indicate that Hon. Alan Kyerematen, the Ghanaian Trade Minister, is viewed as a possible candidate.  His candidacy has yet to be publicly confirmed.

Former South African Trade and Industry Minister Alec Erwin - now the Minister of Public Enterprises - has confirmed that he was never in the running for the position, despite rumours to the contrary.  “Erwin never offered himself for the candidacy of the Director General of the WTO,” this according to Tshediso Matona, the Deputy Director General of International Trade at the South African Department of Trade and Industry.

On a more speculative note, Shotaro Oshima and New Zealand’s Tim Groser, WTO Agriculture Chair, have also surfaced in trade circles as likely candidates.

Selection Process and the Way Forward

The race for the WTO’s top job is gaining momentum.  But, many unknowns remain.  This is not just in respect of block or regional offerings of candidates.  Specifically, as indicated above, blocks like Mercosur are themselves embroiled in disputes over who should be the sole candidate.  It is also difficult to say, at this stage, whether there will be an overarching developing or developed country favored candidate.

The fluidity of the situation is compounded by uncertainty over when substantive negotiations in the modalities phase of the post-“July package” period will resume since further work, even on the frameworks, would likely have to await the outcome of US Presidential elections and changes in the European Commission’s top-level bureaucracy.  This weighs heavily on the process for selecting the next Director General.  Lingering friction across the Atlantic, as regards certain trade issues, also has a bearing on the dynamics of filling the Director General post.  Finally, while it is becoming clear who the contenders are for the post, it is far from clear whether and by how many the number of candidates will grow, in the coming weeks.  

NEWS BRIEFS

Caribbean Poultry Association Trade Seminar

As part of a series of activities built around its Annual General Meeting, the Caribbean Poultry Association held a Trade Seminar in Belize City, Belize, October 15.  Making presentations at the seminar were Mr. Nigel Durrant, RNM Agricultural Trade Specialist and head of the RNM’s Agricultural Trade Negotiating Unit (ATNU), Mr. Donald Tuckler, Executive Director of the Nicaragua Poultry Association, and Mr. Robert Best, Executive Director of the Caribbean Poultry Association. 

Mr. Durrant’s presentation was an overview of external trade negotiations in agriculture concerning WTO, Free Trade Area of the Americas (FTAA), CARIFORUM-EU EPA.  Mr. Tuckler’s presentation dealt with the experiences of the Federation of the Poultry Association of Central America and the Caribbean (FEDAVICAC) in negotiating the US-Central America Free Trade Agreement (CAFTA).  Mr. Best outlined the results of a study on the poultry industry in FTAA countries and the implications for CARICOM.

Regional Government Procurement Meeting

A joint WTO/IDB-INTAL ‘Regional Workshop on Government Procurement for Caribbean Countries’ was held in Port-of-Spain, Trinidad and Tobago, October 18 to 20.  Attended by government procurement experts and trade officials from across the region, the workshop facilitated an exchange of information on national, bilateral, regional and multilateral trade related activities and initiatives in the area of government procurement. Designed to promote an awareness of the role of government procurement related policies for the Caribbean and the multilateral trading system, the forum enhanced understanding of key concepts, principles and practices in the area.  It also enabled participants to identify and discuss capacity-building needs, with a view to assisting countries represented to engage more effectively in activities in the area of government procurement.  The workshop took into consideration the pros and cons of Transparency in Government Procurement.  For the very first time, in a regional forum of this nature, Market Access in Government Procurement was considered.  Representing the RNM at the workshop were: Mr. Malcolm Spence, Technical Advisor-Intellectual Property/SPS, Mrs. Patrice Pratt-Harrison and Ms. Michele Lowe, Coordinator – FTAA & Bilateral Negotiations.

RNM Addresses Caribbean Shipping Association Meeting

The RNM’s Services Trade Specialist, Mr. Ramesh Chaitoo, was an invited speaker at the Thirty-Fourth Annual General Meeting of the Caribbean Shipping Association, in Cartagena, Colombia, held October 18 to 20.  Mr. Chaitoo’s presentation provided an overview of the main elements of external trade negotiations, in which the Caribbean is involved, that are pertinent to the industry.

Antigua to call for Release of WTO Panel Report 

In a public announcement October 22, officials at the Antigua and Barbuda Ministry of Finance and the Economy indicated that the United States has been given ten working days notice of that countries’ intention to request the WTO Panel overseeing the Internet gambling dispute, between the two countries, to release its Final Report.  Antiguan officials decided on this course of action at the conclusion of a meeting held in the island nation’s capital, St. John’s, the week of October 18 (see RNM UPDATE 0416 October 15, 2004 - ANTIGUA-US TO CONSULT FURTHER ON INTERNET GAMBLING DISPUTE; also see Antigua and Barbuda Government Press Release, October 22, available on the RNM website).

Creative Industries and RNM Examine Culture-Trade Interface

The RNM and the European PROINVEST/TRINNEX program for the private sector collaborated in organizing a two-day ‘Regional Workshop on the Impact of Trade and Technology on Caribbean Creative Industries’ that took place in Port-of-Spain, Trinidad and Tobago, from October 28.  The workshop brought together a group of stakeholders involved in the creative sectors (music; performing/visual arts; motion picture and video; publishing; fashion/glamour; radio, television and cable broadcasting) from across the Caribbean to examine the culture-trade interface, and discuss issues of common and specific concern (for details refer to RNM Press Release 25/04 and 26/04, available on the RNM website).

Bush Signs FSC/ETI Repeal Bill

On October 25, the European Commission welcomed the signature by US President Bush of a Bill repealing FSC/ETI export subsidies (for background see RNM UPDATE 0404 March 2, 2004 - EU APPLIES SANCTIONS IN RESPONSE TO US CORPORATE TAX BREAKS).

UPCOMING EVENTS

RNM Senior Director to Participate in DOMs Forum

RNM Senior Director, Mr. Henry Gill, will participate in a seminar organized under the theme ‘Strengthening Economic Partnership in the Caribbean involving the DOMs.’  Special focus is on the EPA process, which CARIFORUM is involved in with the EU.  The encounter is organized by the French Overseas Ministry and the three French Caribbean Overseas Departments (DOMs), and is slated for Guadeloupe, November 3 to 4.

Regional Workshop on Intellectual Property

A WTO/INTAL/RNM ‘Regional Workshop on Intellectual Property Rights’ is to be held in St. Lucia, October 3 to 5.  Mr. Malcolm Spence will represent the RNM at the forum.

Heads of Government Meeting

The Tenth Special Meeting of the Conference of Heads of Government of CARICOM will be held in Port-of-Spain, Trinidad and Tobago, November 8 to 9.  The Director General of the RNM, Ambassador Dr. Richard Bernal, will head the RNM team to the meeting.

High-Level Meetings set for Barbados

November 10: First Meeting of the Caribbean Core Group of the Regional Preparatory Task Force (RPTF)

November 11: First Meeting of the Caribbean-EU RPTF

November 12: Second CARIFORUM-EU Principal Negotiators’ Meeting

November 13: Launch of the Caribbean Non-State Actors Forum

Bernal to address Private Sector Event 

Ambassador Bernal will deliver a feature presentation at the American Chamber of Commerce of Trinidad and Tobago in Port of Spain, Trinidad, November 10.  His presentation is entitled “The CARICOM Single Market and Economy and External Trade Negotiations”.  In attendance are expected to be a broad spectrum of private sector representatives and officials.

For More Information Contact:

Nand C. Bardouille 

Communications Officer

Caribbean Regional Negotiating Machinery (RNM)
3rd Floor, The Mutual Building, Hastings Main Road, Hastings, Christ Church, Barbados
Tel: (246) 430-1678
FAX: (246) 228-9528
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Previous issues of RNM UPDATE are archived on and can be downloaded from the RNM website: http://www.crnm.org