By Ian Francis
Within the next year, the much touted CARIBCAN trade agreement tinkering will be concluded. CARICOM, OECS and Canadian trade negotiators will take credit for a job well done after the signing ceremony.
It will be interesting to see where the signing ceremony takes place. If it is in the depth of winter, the Canadian negotiators are likely to push for a Georgetown or Bridgetown signing ceremony only to escape Canada’s brutal winter. On the other hand, irrespective of the cold and soggy winter in Canada, our Caribbean negotiators who are so embedded in the per diem culture will prefer an Ottawa signing ceremony in order to maximize their per diem incomes.
Once the revised agreement is signed, the burning question remains. How can the Caribbean trade and export sectors maximize opportunities in Canada through the CARIBCAN agreement?
It is not a new agreement and has been around since the Mulroney days. Unfortunately, its failure was well known when Caribbean governments took ownership and locked up the policies and tariffs in the cupboards of local ministries of trade and industry. Exporters and investors from some CARICOM states remained disengaged and could not seize the opportunity to penetrate and sustain markets within Canada because there was no information, no market intelligence and no encouragement of partnerships through joint ventures and other initiatives.
It is hoped that, this time around, Caribbean governments will understand that a successful trade and investment partnership must be realized through strong and effective institutional collaboration. To put it bluntly, the Caribbean and Canadian governments are not involved in trade exports. However, through the agreement and sensitizing of officials on both sides of the spectrum, it is quite likely that barriers will be minimized and officials will become more informed about the free movement of goods and tariffs that have been eliminated.
In objective and realistic terms, trade collaborative efforts and sustainability between CARICOM nations and Canada require more than dependency on the “tiny bob” consular missions established in Canada. With fairness, Jamaica, Trinidad, Barbados and Guyana maintain very effective consular missions with a strong trade arm.
Therefore, if the OECS is serious and committed to a trade and investment strategy between Canada and member states, the current regional approach and strategies for market penetration cannot be successful in its current form. Caribbean trade and investment initiatives cannot be achieved through obscurity or ineffective marketing networks.
The OECS must recognize that they require planning assistance to formulate, implement and sustain an effective trade strategy in Canada. It is achievable but there must be a willingness to understand the need for planning and collaboration.
An effective trade and investment strategy between Canada and the Caribbean within the context of the CARIBCAN trade agreement must extend beyond rum and nice beaches. Certainly, Caribbean rum imports in Canada will continue to be very important. However, those responsible for such products reaching Canadian shelves must understand that it is a competitive environment, as Trinidad, Cuba, Guyana, Jamaica and Barbados have already saturated the products.
Therefore, while the Europeans continue to fund the OECS Dominica-based Trade Unit, staff at this unit must understand that the import tariff on Caribbean rum will be affected within the new agreement and OECS nations need to introduce more than rum and hot pepper sauce to the Canadian market.
A few years ago, Michael Astaphan of Dominica and some other OECS colleagues began the process of establishing a private sector export organization. The concept had merit and received much needed assistance from the Europeans. Unfortunately, the concept died and a very valuable opportunity was lost. It is hoped that the concept can be revived because such an organization is of necessity, since most Caribbean exporters and investors are private sector persons.
Both CARICOM and the OECS must recognize that trade and exports should be private sector driven and not given the appearance that it is state sector driven. It is time to support and assist the private sector in their quest for new markets.
Another perception that must be dispelled with is the belief that regional chambers of commerce are the prime export movers in the region. While some chamber members might be exporters, we need to ask why Guyana, Barbados and other MDC Caribbean nations have strong and effective export agencies. The OECS needs to adopt a learning chapter from these organizations and support a strong OECS private sector export agency.
Another issue on Caribbean trade initiatives seems to be the duplication of regional agencies that purport to promote Caribbean trade abroad. There is the Barbados-based, CARICOM-funded agency Caribbean Exports, which continues to find successful niches with only hot pepper sauce promotion. Frankly speaking, this is another serious area that CARICOM’s new secretary general must address.
Maybe it is time to eliminate this agency and find some form of new organizational accommodation with the OECS that will witness the following three concrete outcomes: 1) Development and sustainability of a strong OECS private sector exporting agency to maximize opportunities and success through the CARIBCAN trade agreement; 2) strong and sustainable trade partnerships between private sector institutions in Canada and the OECS; and 3) moving the OECS trade initiative in Canada beyond the Trade Facilitation Centre.
Finally, successful trade implementation initiatives by OECS exporters to Canada require reliability, effective communications, utilization of information technology tools and seriousness. Canadian importers are not interested in stories and excuses as to why a product did not arrive.
The CARIBCAN trade agreement will provide excellent opportunities but its success will only be realized if the regional export private sector players are allowed to play their role. Once the agreement is signed, both regional multilateral agencies need to delimit their involvement.
The trade and investment process between Canada and the Caribbean must be private sector driven.
August 22, 2011
caribbeannewsnow
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Showing posts with label CaribCan Trade Agreement. Show all posts
Showing posts with label CaribCan Trade Agreement. Show all posts
Monday, August 22, 2011
Thursday, August 26, 2010
The demise of the Caribbean Regional Negotiating Machinery
By Ian Francis:
There was no wake, prayers or visitation when the Heads of CARICOM Governments made the decision in Belize to bury the Caribbean Regional Negotiating Machinery (CRNM) and support the emergence of the Office of Trade Negotiations (OTN), which is now under the direct supervision of the CARICOM Secretary General headed by Ambassador Gail Mathurin.
I must confess my ignorance about Ambassador Mathurin’s permanent location but am extremely aware of her air jaunts between Grantley Adams and Cheddi Jagan airports.
The death of the CRNM was not a surprise. In the first instance, its creation should not have been entertained but the arm twisting of former Prime Minister Patterson by Sir Shridath and his other regional cronies resulted in “PJ’s” agreement for the creation of the CRNM.
It was very clear from the start that Sir Shridath brought forward the creation of the CRNM as he was determined to establish his own beachhead in Barbados and to flex his muscles within the multilateral community as a former secretary-general of the Commonwealth and foreign minister of the Cooperative Republic of Guyana.
It worked well for him, which led to the recruitment of key lifeguards, including Richie Bernal of Jamaica and Henry Gill of the Republic of Trinidad. Both individuals are well known within regional circles and have always demonstrated their distinctive qualities, skills and experience.
The exit of Sir Shridath from the CRNM was influenced by many occurrences. Prime Minister Patterson made the decision to demit office; there were couple of general elections held in the region, which resulted in the change of governments.
Sir Shridath saw the death warrant and was not prepared for the sentencing so his only saved-face option was to quietly exit from the CRNM. His clout and influence with some of the CARICOM Heads had dried up, thus making his reliance for survival untenable.
Prior to his departure from the CRNM, he carefully crafted his replacement which resulted in Jamaican-born Ambassador Richard Bernal assuming the direction of the CRNM.
Although Bernal assumed the position with great pomp, the weariness of the CRNM by CARICOM Heads grew, which made it difficult for the ambassador to run and manage an effective institution within the region. With much frustration, Ambassador Bernal saw an opening at a Washington-based international agency and decided to accept a position where he is now based and might be considering a run for the Secretary General position of CARICOM. We will have to wait and see as his cell phone number remains the same.
Bernal’s departure ensured that another lifeguard in the name of Henry Gill was quite appropriate for the position and assumed direction of the CRNM. Unfortunately, Gill’s term at the CRNM was short-lived.
The Heads of CARICOM at the Belize meeting made the firm decision that all trade negotiations should be under the aegis of the Secretariat, which meant that a major part of the CRNM based in Barbados would have to merge within the Georgetown Secretariat, thus bringing Gill under the reporting umbrella of the Secretary General.
As rumours have it, Gill vowed not to re-locate to Guyana and wanted no part of reporting to Carrington. This led to Gill’s demittal from the CRNM where he has now entered the regional lucrative environment of consulting.
In essence, Carrington and his group at the Secretariat won the fight, which led to the Secretary General’s immediate task of creating the OTN within the Secretariat.
Given the entire milieu above, several important trade negotiations between the Caribbean and many Western nations were announced. A famous and active negotiation is known as the CaribCan Trade Agreement, which is now taking place between the Commonwealth Caribbean nations and Canada.
The CaribCan Trade Agreement was first introduced in 1985 by the then Mulroney Conservative government. Unfortunately, much was not achieved in the area of trade and investments between the two regions. Very little was done in Canada to promote the initiative and the Caribbean governments made the tactical error by maintaining the agreement tightly shut in their industry ministries’ closet.
Canada in the last three years announced its intention to re-engage the Commonwealth Caribbean region, not only in bilateral and multilateral assistance but also to promote trade and investments between the two regions by rewriting the trade agreement.
Canada has kept its promise by providing financial assistance to the old CRNM and so far has engaged the OTN in three rounds of discussion with respect to the trade agreement. In addition, there have been other initiatives through the hosting of regional workshops by the (OECS-EDU).
Unfortunately, the participants and players for such events should be exporters, entrepreneurs and other participants that are interested in trade and investments environment. Unfortunately, there is a constant replay of government and state corporations’ representatives dominating these workshops, with exporters and entrepreneurs being left on the periphery.
In a recent conservation with an Ottawa-based senior foreign service official close to the CaribCan trade negotiations, I took the opportunity to share with him a press bulletin, which was issued by the OTN stating that negotiations are moving full speed ahead.
The diplomat known for his tight lips gave a loud laugh and said to me, “The agreement has been redrafted already and we have asked our Caribbean friends to check out full compliance with the World Trade Organization rules and regulations. Once they get back to us, it will be a done deal.”
In conclusion, as we move to finalize this agreement, there is work to be done on both sides, the OTN and its partners need to reach out and build capacities amongst those who will become the key actors in a trade agreement. The government of Canada has a responsibility to work with existing national and provincial trade organizations to get them actively engage in trade and investments dialogue on the Caribbean Commonwealth.
This begs the question. Will the remnants of CRNM remain in Barbados after the CaribCan Trade Agreement is signed or will it be fully integrated into the Secretariat? We will take a wait and see attitude.
Ian Francis resides in Toronto and writes frequently on Caribbean Commonwealth affairs. He is a former Assistant Secretary in the Grenada Ministry of Foreign Affairs and can be reached at info@vismincommunications.org
August 26, 2010
caribbeannewsnow
There was no wake, prayers or visitation when the Heads of CARICOM Governments made the decision in Belize to bury the Caribbean Regional Negotiating Machinery (CRNM) and support the emergence of the Office of Trade Negotiations (OTN), which is now under the direct supervision of the CARICOM Secretary General headed by Ambassador Gail Mathurin.
I must confess my ignorance about Ambassador Mathurin’s permanent location but am extremely aware of her air jaunts between Grantley Adams and Cheddi Jagan airports.
The death of the CRNM was not a surprise. In the first instance, its creation should not have been entertained but the arm twisting of former Prime Minister Patterson by Sir Shridath and his other regional cronies resulted in “PJ’s” agreement for the creation of the CRNM.
It was very clear from the start that Sir Shridath brought forward the creation of the CRNM as he was determined to establish his own beachhead in Barbados and to flex his muscles within the multilateral community as a former secretary-general of the Commonwealth and foreign minister of the Cooperative Republic of Guyana.
It worked well for him, which led to the recruitment of key lifeguards, including Richie Bernal of Jamaica and Henry Gill of the Republic of Trinidad. Both individuals are well known within regional circles and have always demonstrated their distinctive qualities, skills and experience.
The exit of Sir Shridath from the CRNM was influenced by many occurrences. Prime Minister Patterson made the decision to demit office; there were couple of general elections held in the region, which resulted in the change of governments.
Sir Shridath saw the death warrant and was not prepared for the sentencing so his only saved-face option was to quietly exit from the CRNM. His clout and influence with some of the CARICOM Heads had dried up, thus making his reliance for survival untenable.
Prior to his departure from the CRNM, he carefully crafted his replacement which resulted in Jamaican-born Ambassador Richard Bernal assuming the direction of the CRNM.
Although Bernal assumed the position with great pomp, the weariness of the CRNM by CARICOM Heads grew, which made it difficult for the ambassador to run and manage an effective institution within the region. With much frustration, Ambassador Bernal saw an opening at a Washington-based international agency and decided to accept a position where he is now based and might be considering a run for the Secretary General position of CARICOM. We will have to wait and see as his cell phone number remains the same.
Bernal’s departure ensured that another lifeguard in the name of Henry Gill was quite appropriate for the position and assumed direction of the CRNM. Unfortunately, Gill’s term at the CRNM was short-lived.
The Heads of CARICOM at the Belize meeting made the firm decision that all trade negotiations should be under the aegis of the Secretariat, which meant that a major part of the CRNM based in Barbados would have to merge within the Georgetown Secretariat, thus bringing Gill under the reporting umbrella of the Secretary General.
As rumours have it, Gill vowed not to re-locate to Guyana and wanted no part of reporting to Carrington. This led to Gill’s demittal from the CRNM where he has now entered the regional lucrative environment of consulting.
In essence, Carrington and his group at the Secretariat won the fight, which led to the Secretary General’s immediate task of creating the OTN within the Secretariat.
Given the entire milieu above, several important trade negotiations between the Caribbean and many Western nations were announced. A famous and active negotiation is known as the CaribCan Trade Agreement, which is now taking place between the Commonwealth Caribbean nations and Canada.
The CaribCan Trade Agreement was first introduced in 1985 by the then Mulroney Conservative government. Unfortunately, much was not achieved in the area of trade and investments between the two regions. Very little was done in Canada to promote the initiative and the Caribbean governments made the tactical error by maintaining the agreement tightly shut in their industry ministries’ closet.
Canada in the last three years announced its intention to re-engage the Commonwealth Caribbean region, not only in bilateral and multilateral assistance but also to promote trade and investments between the two regions by rewriting the trade agreement.
Canada has kept its promise by providing financial assistance to the old CRNM and so far has engaged the OTN in three rounds of discussion with respect to the trade agreement. In addition, there have been other initiatives through the hosting of regional workshops by the (OECS-EDU).
Unfortunately, the participants and players for such events should be exporters, entrepreneurs and other participants that are interested in trade and investments environment. Unfortunately, there is a constant replay of government and state corporations’ representatives dominating these workshops, with exporters and entrepreneurs being left on the periphery.
In a recent conservation with an Ottawa-based senior foreign service official close to the CaribCan trade negotiations, I took the opportunity to share with him a press bulletin, which was issued by the OTN stating that negotiations are moving full speed ahead.
The diplomat known for his tight lips gave a loud laugh and said to me, “The agreement has been redrafted already and we have asked our Caribbean friends to check out full compliance with the World Trade Organization rules and regulations. Once they get back to us, it will be a done deal.”
In conclusion, as we move to finalize this agreement, there is work to be done on both sides, the OTN and its partners need to reach out and build capacities amongst those who will become the key actors in a trade agreement. The government of Canada has a responsibility to work with existing national and provincial trade organizations to get them actively engage in trade and investments dialogue on the Caribbean Commonwealth.
This begs the question. Will the remnants of CRNM remain in Barbados after the CaribCan Trade Agreement is signed or will it be fully integrated into the Secretariat? We will take a wait and see attitude.
Ian Francis resides in Toronto and writes frequently on Caribbean Commonwealth affairs. He is a former Assistant Secretary in the Grenada Ministry of Foreign Affairs and can be reached at info@vismincommunications.org
August 26, 2010
caribbeannewsnow
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