An OECS Perspective on Prospects for US- LAC Trade Relations
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1 Sistema Económico Latinoamericano y del Caribe Latin American and Caribbean Economic System Sistema Econômico Latino-Americano e do Caribe Système Economique Latinoaméricain et Caribéen An OECS Perspective on Prospects for US- LAC Trade Relations Virginia Paul, Head of the Trade Policy Unit of OECS Regional Seminar on Trade Relations between the United States and Latin America and the Caribbean in the first year of the Obama Administration Caracas, Venezuela 22 and 23 March 2010 SP/SRRC-EE.UU-ALC-PAAO/Di N 6-10
2 Copyright SELA, March All rights reserved. Printed in the Permanent Secretariat of SELA, Caracas, Venezuela. The Press and Publications Department of the Permanent Secretariat of SELA must authorize reproduction of this document, whether totally or partially, through The Member States and their government institutions may reproduce this document without prior authorization, provided that the source is mentioned and the Secretariat is aware of said reproduction.
3 ORGANISATION OF EASTERN CARIBBEAN STATES Regional Seminar on Trade Relations Between The US and LAC Caracas, 22 nd March 2010 An OECS Perspective On Prospects For US-LAC Trade Relations
4 Presentation Outline An overview of the OECS An overview of US-OECS trade relations OECS perspectives on: Buy American Provisions in public projects, The climate change bill, Food safety initiatives, Screening of goods & passengers Concluding thoughts
5 What is the OECS? The Organisation of Eastern Caribbean States, OECS, is comprised of a group of small island countries. It was established on June 18th, 1981 by the signing of the Treaty of Basseterre
6
7 The Members of the OECS Anguilla Antigua & Barbuda British Virgin Islands Commonwealth of Dominica Grenada Montserrat St Kitts & Nevis St Lucia St Vincent & the Grenadines
8 OECS is. A a pooling of human & financial resources to build regional institutions to provide services, reduce vulnerability & increase resilience
9 Areas of coordination/harmonisation External Relations International trade Environmental conservation Intern. Marketing of goods & services esp. Tourism Civil Aviation Economic Integration
10 Areas of coordination/harmonisation Matters of the Sea & marine resources The judiciary Currency & Central banking Statistics Income Tax/Customs Education Defense & security Scientific/cultural
11 OECS Institutions OECS Secretariat Central Bank Single Currency Single Securities Exchange OECS Supreme Court ECCA: Civil Aviation ECTEL: Telecom. regulation Joint Diplomatic Missions Pharmaceutical Procurement services Harmonization of legislation
12 OECS- US relations are based CBERA granted DF access for a range of goods to US market Replaced by Caribbean Basin Trade Partnership Act (CBTPA) Increased range of products & market access.
13 Prospects for OECS- US relations Renewal and revision of CPTA provisions Monitor US trade related initatives Establishment of Trade & Investment Council
14 Renewal of the CBTPA Renewal of the CBTPA in 2010 Include services trade Make qualifying criteria flexible
15 Renewal of the CBTPA Include special treatment to reflect differences in development among the countries in CARICOM
16 Renewal of CBTPA Increase categories of eligible goods Allow countries & enterprises to combine inputs (OECS)CBTPA preferences should be expanded & locked in
17 Monitor trade related initiatives the implementation of trade related initiatives positions in the DDA relations with other trading partners
18 The Trade and Investment Council OECS wants the CARICOM US Trade & Investment Council to provide strategic direction in trade relations
19 Effects of Buy American Provisions Effects on OECS likely to be small CBTPA exempt from the provisions OECS-US trade mainly in Services
20 Effects of Buy American Provisions Production constraints : Small scale suppliers rel. to US market less than 5% of CARICOM exports to US
21 The Climate Change bill The cost of implementing limits on greenhouse gas emission will be costly for OECS
22 The Climate Change bill Threat of sanctions because OECS countries are middle income developing countries
23 Food safety initiatives Of concern because food is major output of manufacturing sector Requirements must be consistent with WTO regulations
24 Food safety initiatives Requirements will increase the cost of production Requirements will act as a barrier to exports
25 Screening of goods & passengers Impact on tourism and services trade Increase cost of security
26 Concluding thoughts The US still a contributor to OECS Development OECS still seeking opportunities for strategic Pr/Pub sector partnerships
27 Concluding thoughts Despite small size, OECS has much in common with the USA e.g. commitment to freedom, democracy, rule of law & to improve the lives of people through peaceful development & security
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