Caribbean Community Regional Aid for Trade Strategy 2013–2015 Caribbean Community Secretariat Caribbean Community Regional Aid for Trade Strategy 2013–2015 Caribbean Community Secretariat

February 2013

Contents

:: Acronyms and Abbreviations / v :: Foreword / vii :: Acknowledgements / ix :: Executive Summary / xi

1 Introduction / 1

2 Trade Snapshot / 3

2.1 Structure of CARICOM Economies / 3

2.2 Macroeconomic Environment / 4

2.3 Structures and Patterns of Trade / 8

2.4 Trading Arrangements / 12

2.5 Regional Integration / 14

3 Priorities for Action / 17

3.1 Goal 1: Upgrading Key Economic Infrastructure / 19 3.2 Goal 2: Enhancing Competitiveness and Facilitating Trade Expansion and

Diversification / 25 3.3 Goal 3: Deepening Regional Integration and Maximizing Gains from External

Trade Agreements / 32

4 Mainstreaming / 37

5 Implementation of the Strategy / 39

6 Monitoring and Evaluation / 43

:: Annex I: Caricom Regional Aid for Trade Matrix / 46 :: Annex II: National Projects with Regional Implications / 54 :: Annex III: National Projects with National Implications / 72

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:: Annex IV: Log Framework – Regional Aid for Trade Matrix / 85 :: Annex V: Aid for Trade Flows to Caricom Countries / 88 :: Annex VI: Methodology / 93 :: Annex VII: Aid for Trade Focal Points / 95

Figures Figure 1: Debt to GDP Ratio, 2010 / 6 Figure 2: CARICOM Intra-regional Trade (US$ millions / 9 Figure 3: CARICOM Extra-regional Trade (US$ millions) / 10 Figure 4: CARICOM Top Domestic Export Partners, 2008 / 11 Figure 5: Goals of the Caribbean Regional Aid for Trade Strategy / 19 Figure 6: Direct and Indirect Contribution of Tourism to GDP 2011 / 30

Tables Table 1: Structure of CARICOM Economies, 2010 / 4 Table 2: Selected Indicators / 5 Table 3: Total Debt Service, 2010 / 7 Table 4: Global Competitiveness Index: Quality of Selected Infrastructure Indicators (2010–2011) / 21 Table 5: Ease of Doing Business Rank and Other Selected Indicators (2010–2011) / 26 Table 6: Five Aid for Trade Projects for Early Harvest / 35 Acronyms and Abbreviations

ACP Africa, Caribbean and CSME CARICOM Single Market Pacific Group and Economy AfT Aid for Trade DDA Doha Development Agenda CAHFSA Caribbean Agriculture DfID Department for Health and Food Safety International Development Agency ECCB Eastern Caribbean Central CAFRA Caribbean Association Bank for Feminist Research and ECCU Eastern Caribbean Action Currency Union CARIBCAN Caribbean-Canada Trade EPA Economic Partnership Agreement Agreement CARICOM Caribbean Community EU European Union CARIFORUM Caribbean Forum of ACP GATT General Agreement on States Tariffs and Trade CARIFTA Caribbean Free Trade GATS General Agreement on Association Trade in Services CBERA Caribbean Basin Economic GCI Global Competitiveness Recovery Act Index CBI Caribbean Basin Initiative ICT Information and CCC Caribbean Competition Communication Commission Technologies CCJ Caribbean Court of Justice IDB Inter-American CIDA Canadian International Development Bank Development Agency IMF International Monetary COTED Council for Trade and Fund Economic Development IDPs International Development CROSQ Caribbean Regional Partners Organisation for Standards LAC Latin America and the and Quality Caribbean

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LDCs CARICOM Less Developed RPTF Regional Preparatory Task Countries or UN Least Force Developed Countries SME Small and Medium-Size LPI Logistics Performance Enterprises TIFA Trade and Index Investment Framework LSCI Line Shipping Connectivity Agreement Index SPS Sanitary and Phytosanitary MDCs CARICOM More Measures Developed Countries TRIPS Trade-Related Aspects of NFIDC Net Food Importing Intellectual Property Rights Developing Countries SVEs Small and Vulnerable NQI National Quality Economies Infrastructure TBT Technical Barriers to Trade OECD Organisation for Economic UN United Nations Cooperation and UNCTAD United Nation Conference Development on Trade and Development OECS Organisation of Eastern WTO World Trade Organisation Caribbean States ODA Official Development Assistance Foreword

he ever-evolving, intensely competi- global environment. This assistance must tive, and crisis-ridden global economy be focused and targeted. Thas compelled the Member States of It is within this context that AfT has the Caribbean Community (CARICOM) to become such a critical component of the take a hard look at how they can achieve a Region’s approach to competing in the safe, viable, prosperous, and above all, sus- global arena. CARICOM Member States re- tainable and resilient path to development. quire assistance if they are to be positioned It is recognised that trade expansion has an to take advantage of bilateral and multi- important contribution to make towards lateral trade agreements to which they are achieving that goal. party. Substantial resources must be applied The CARICOM Single Market and to areas such as upgrading key economic in- Economy was not only intended to foster frastructure, enhancing export competitive- greater intra-regional trade but also, ness, diversifying economies, re-tooling the through production integration, to spur private sector, strengthening regional inte- expanded trade between CARICOM and gration, and creating financial and other in- third states. The latter objective was viewed struments for supporting innovation. This as a crucial driver for developing and im- assistance is required to convert market proving the economic and social welfare of access to market presence and to enable the Region. Consequently, for CARICOM, CARICOM Member States to compete eq- Aid for Trade (AfT) must take into account uitably in the global market. the creation and strengthening of supply- A key factor in mobilising these re- side capacity and strengthening trade-re- sources is recognising that access to con- lated infrastructure for Member States to cessionary loans and grants is being denied expand their trade and reduce the adjust- to many CARICOM Member States due to ment costs of the changing external trade graduation and differentiation. This access environment. To achieve this, substantial is being denied at a time when the debt per assistance is needed to enhance competi- capita of some CARICOM Member States is tiveness and to make optimal use of the among the highest in the world. Further, the opportunities provided in the liberalised small size of many Member States reduces

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their capacity to attract foreign investment support to CARICOM. Finally, it is impor- at the desired levels and in the relevant areas. tant that priority projects financed from The extent to which AfT contrib- AfT resources be defined in within the utes to the growth and development of context of the Community’s national, sub- CARICOM countries depends in large regional, and regional development poli- measure on the willingness of the inter- cies. Particular attention must be paid to national community to accept these real- building private sector capacity. ities and to provide additional sources of The Caribbean Community Regional financing, particularly in grant form and Aid for Trade Strategy has been developed in a manner that is easily accessible. This against this background. It is expected that may mean introducing innovative mecha- the strategy’s rollout will produce concrete nisms for providing financial and technical benefits to the people of the Caribbean. Acknowledgements

he Caribbean Community Regional members of civil society and academia, Aid for Trade Strategy was prepared in proved invaluable in shaping the strategy. Ta collaborative effort involving Sheldon The strategy is the product of con- McLean, Regional Trade Policy Adviser as- tinued collaboration between the signed to the CARICOM Secretariat under CARICOM Secretariat and the Inter- the Commonwealth Secretariat’s Hub and American Development Bank (IDB). The Spokes Project, and consultant Gregory project was coordinated by Krista Lucenti, Downes. Mr. McLean also contributed to integration and trade economist, under the the development of the strategy as resource overall guidance of Antoni Estevadeordal, person at national consultations. The Hub manager of the IDB’s Integration and and Spokes Project also provided funding Trade Sector. Paolo Giordano and Valerie for convening consultations. Lacarte of the IDB; and Percival Marie, The strategy’s preparation benefited David Hales and Sandy Griffith of the greatly from the collaboration of focal points CARICOM Secretariat; and David Gomez in Member States, which arranged national from the Caribbean Export Development consultations with stakeholders, provided Agency, also provided invaluable guidance source materials, and responded to requests and comments regarding the strategy’s con- for information. On 1–2 November 2012, tent and process throughout its prepara- Member States and select regional organi- tion. Administrative support was provided zations gathered in Bridgetown, Barbados, by Gillian Bristol and Bernique Benjamin of to validate the draft strategy document the CARICOM Secretariat. Special mention in the context of the IDB Regional Policy must also be made of the interest expressed Dialogue organized in collaboration with by the Director General of the World Trade the CARICOM Secretariat. The interaction Organization in promoting the AfT needs of with relevant government ministries and the Caribbean Community and his encour- agencies, private sector organisations, re- agement for articulating the Region’s priori- gional organisations and institutions, and ties in that regard.

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Financial assistance was provided by the and do not necessarily reflect the official po- IDB Aid for Trade Strategic Thematic Fund. sition of the Inter-American Development Donors to this Fund include Canada, Chile, Bank or its Member States, nor does it rep- Switzerland, and the United Kingdom. resent a commitment by the Bank to pro- However, the views and opinions expressed vide funding for the implementation of the in this publication are those of the authors strategy. Executive Summary

he Caribbean Community (CARICOM) CARICOM’s ability to realize its trade Regional Aid for Trade Strategy is a potential and coherently diminish these ca- Ttool for creating consensus among pacity constraints has been limited by the CARICOM Member States and the lack of financial resources, particularly since CARICOM Secretariat on priorities for en- many Member States are carrying debt-to- suring a growing and more diversified re- GDP ratios in excess of 100 percent and have gional economy. The strategy presents a economies that are struggling to recover from coherent approach to resource mobilisation the spill-over effects of the 2008 global eco- that will send a strong signal to donors, in- nomic and financial crisis. Increasing trade vestors, and international development part- and investment through collaboration can ners that the region has a clear sense of how it raise potential GDP, which will lower debt- can best utilise existing and future resources. to-GDP ratios and help realise economies of Despite regional efforts to deepen in- scale. An additional factor is the expansion tegration through the CARICOM Single of the Panama Canal, which will change the Market and Economy and strengthen trade global trade scenario as larger ships displace relations with existing and non-traditional smaller ones and create new shipping pat- partners, the Region’s competitiveness re- terns. The Caribbean must re-position itself mains constrained by poor infrastructure in this new economic geography. and connectivity, weak institutions, un- With a view towards capturing a share of diversified export markets, and low levels new, dynamic sources of demand, the Twenty- of private sector innovation. According to Seventh Meeting of the CARICOM Council IDB estimates, CARICOM is operating on for Trade and Economic Development, average 46 percent below its trade poten- held May 14–15, 2009, declared that “as a tial. In addition, intra-regional trade in the matter of urgency, the Region should craft Caribbean stands at a relatively low 13 per- a Caribbean Aid for Trade Strategy, which cent of total trade; this increases to just includes a holistic and comprehensive ap- over 20 percent if exports to Latin America proach towards competitiveness, adjustment are included. and trade development.”

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The resulting goals and priorities areas were chosen because the Member identified in the Regional Strategy are the States considered them to be the most crit- product of extensive stakeholder consul- ical for realising the goals set out in the tations held with public and private sec- strategy. tors, civil society, and non-governmental Activities identified by stakeholders organizations within CARICOM. While were grouped in three categories as fol- CARICOM Heads of Government clearly lows: (1) regional activities that serve a re- identified Maritime Transport and Infor- gional objective, (2) national activities that mation and Communication Technology serve a regional objective, and (3) national (ICT) as the two key areas for the devel- activities that serve a national objective. opment of transformational AfT project The activities range from legal drafting and proposals, the goals and priorities in this training to information technology software strategy were also guided by areas of con- and infrastructure investment, thereby pro- sensus that emerged from the broad-based viding a large number of options for do- national consultations and the results of the nors, investors, and development partners. analyses undertaken. These activities also call for different types CARICOM Member States have set of investments, including sovereign or non- three strategic goals to guide the develop- sovereign lending, public-private partner- ment of remedial programs and projects ships, and grants. for increasing their competitiveness, re- The strategy proposes five “anchor” ducing inefficiencies, and deepening global projects for early implementation in the and regional economic integration, as fol- areas of maritime transport, ICT, energy, lows: (1) upgrading key economic infra- and private sector development. These structure, (2) enhancing competitiveness are relatively large, bankable, and imple- and facilitating trade expansion and diver- mentable projects that respond to both the sification, and (3) deepening regional inte- mandate set by the Heads of Government gration and maximising gains from external and the consensus by Member States. These trade agreements. projects are as follows: In order to achieve these goals, the strategy proposes that actions be taken in 1. Modernisation of Caribbean Freight the following key areas: (1) for goal one, Logistics, Maritime Transport, maritime transport, ICT, and energy; (2) for and Trade Facilitation: Upgrading goal two, trade facilitation, sanitary and port infrastructure and services, phytosanitary measures, quality infrastruc- establishing innovative maritime ture, services, and private sector develop- transport networks, and implementing ment; and (3) for goal three, strengthening customs and trade facilitation reforms. regional integration and the capacity of re- 2. Modernisation of Maritime Cargo gional institutions, increasing the transpar- and Passenger Services in the OECS: ency and reliability of AfT flows, increasing Establishing fast-ferry services in negotiation and implementation of trade the Southern Caribbean, developing agreements, and increasing knowledge of a common shipping policy, and the impact of trade liberalization. These modernising the fleet. Executive Summary :: xiii

3. Caribbean Broadband Transformation development partners, the private sector, Strategy: Creating a single ICT space, and investors. developing a broadband strategy and In order to ensure successful imple- a roadmap for analog switchover, mentation of the strategy at the regional and creating a mechanism for public- and national level, the Council for Trade private partnerships in the telecom and Economic Development will provide sector. oversight and responsibility for policy guid- 4. Caribbean Renewable and Alternative ance in implementing the Strategy. The Energy Roadmap: Developing CARICOM Secretariat, in collaboration a regional bio-energy strategy, with the OECS Secretariat, the Caribbean implementing a strategy for Export Development Agency, and the promoting solar cooling technology, Caribbean Development Bank, would be and establishing a financing charged with implementing and monitoring mechanism for micro-, small and at the project and activity level. medium-size enterprises. While the Caribbean Community Aid 5. Private Sector Innovation in the for Trade Strategy reflects the current pri- Caribbean: Promoting and financing orities identified by Heads of Government innovation and establishing a trade and Member States, the strategy will be pe- financing mechanism. riodically updated to reflect new mandates, points of intervention, and the changing Other regional and national AfT activ- trade landscape. The dialogue between in- ities, which complement the anchor proj- ternational development partners, inves- ects, are smaller, discrete projects that can tors, and the region is constantly evolving; attract the interest of donors, international the strategy is a dynamic document.

1 Introduction

rade can be a powerful engine for eco- For CARICOM, expanding trade and nomic growth, poverty reduction, and enhancing competitiveness are seen as cru- Tdevelopment. However, a consensus is cial for improving the economic welfare of emerging that in the absence of certain con- the Region. This notwithstanding, trade lib- ditions, trade liberalisation may not result eralisation initiatives, which have been a in greater welfare, economic growth, and common feature of the reform process in development. Member States, have not yielded the robust Domestic constraints reduce the equal- broad-based growth and development that ising impact of trade expansion, such as the Region anticipated. This can be partially among small, vulnerable economies, ad- attributed to a combination of poor eco- vanced developing countries, and fully de- nomic infrastructure, deficiencies in trade- veloped countries. The recognition that related capacity, and the frequent inability developing countries, particularly least de- of SVEs to tie liberalisation initiatives to veloped countries (LDCs) and small vulner- policies and a regulatory framework that able economies (SVEs) need support to build would optimise the gains from trade policy capacity to engage in trade1 has brought Aid reform. for Trade (AfT)2 to the forefront of not only As the pace of regional and multilateral multilateral trade negotiations but also the economic integration quickens, it becomes dialogue amongst the donor community. increasingly urgent to develop a holistic Given the role that trade can play in fos- strategy for ensuring that private sector de- tering economic development, multilateral velopment, trade, and trade reform in the 1 Aid for Trade is a sub-set development financing agencies and devel- Caribbean become tools of development and of official development assistance. oped countries are increasingly providing catalysts for stimulating economic growth 2 In the broadest sense refers trade-related assistance. The mandate on and reducing poverty. Consequently, the de- to the flow of development AfT therefore results from the recognition cision to develop a Caribbean Community finance/aid from developed countries and multilateral that developing countries need support to Regional Aid for Trade Strategy is guided by funding agencies to build the capacity that will enable them to the realisation that national efforts to main- developing countries to enhance their participation benefit from trade and avoid marginaliza- stream AfT need to be complemented by a in the multilateral trading tion in the global trading system. comprehensive regional framework. Such system.

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a framework should create a fundamental Additionally, preliminary estimates by link between aid and trade priorities and the the CARICOM Secretariat suggest a sig- 3 Questionnaires can be viewed on the OECD long-term economic development objec- nificant disparity between the amount of Website: http://www. tives of the Region and its individual States. resources needed by the Region and AfT oecd.org/aidfortrade/self- 5 assessments.htm. In this context, consolidating the Region’s commitments by its IDPs. 4 Close collaboration with AfT needs into a single strategy document Furthermore, while the share of all CARICOM Member provides a framework for collaboration AfT resources for Latin America and the States was crucial to the design of the Caribbean among Member States and international Caribbean generally has increased over Community Regional Aid for development partners (IDPs) or investors the years, the Caribbean has not received Trade Strategy which covers: with an interest in providing support for the its commensurate share. Data from the Antigua and Barbuda, The Bahamas, Barbados, Belize, Region’s development. CARICOM Secretariat for the period 2006– Dominica, Grenada, Guyana, Similarly, if the Region is to attain its in- 2010 put regionally disbursed AfT flows at Haiti, Jamaica, Montserrat, St. Kitts and Nevis, Saint tegration objectives, achieve sustained eco- about US$310 million, with approximately Lucia, St. Vincent and the nomic expansion, and integrate into the US$220 million already in the pipeline for Grenadines, Suriname, and Trinidad and Tobago. global trading system, it must address its the next five years. Many CARICOM coun- National consultations and systemic constraints in a systematic and in- tries are grappling with high indebted- interviews with stakeholders tegrated manner. Further, the Caribbean ness and hence are not in a position to use across the region we held between November 2011 and Region’s responses to the 2008 Partner their own finances to plug resource gaps for April 2012. Country Questionnaire on Aid for Trade, building trade capacity. 5 Preliminary estimates provided by the CARICOM which was sponsored by the World Trade This present strategy will provide Secretariat put the resources Organization (WTO) and Organisation for the trade and macro-economic con- that would be required to Economic Co-operation and Development text (Section 2) for the priorities identi- implement the projects 3 emanating from the studies (OECD), revealed a disconnect between fied in Section 3. Section 4 will elaborate completed under the the priorities established by governments on mainstreaming the strategy while sec- Regional Preparatory Task Force (RPTF) in the context and those set by the IDPs. The results of the tions 5 and 6 will detail implementation and of the CARIFORUM-EU national AfT consultations4 in 2012 con- monitoring and evaluation mechanisms negotiations for an Economic Partnership Agreement in the ducted pursuant to the formulation of the needed to ensure that the objectives of the vicinity of US$570.5 million. strategy further support this view. strategy are met. 2 Trade Snapshot

he CARICOM economies exhibit cer- population of 601,682, which is 3.6 percent tain key characteristics that present of CARICOM’s total population. Tclear challenges to both trade expan- The distribution of land area exhibits a sion and economic development. These similar pattern of extremities, with Guyana, include physical isolation, small popula- the largest CARICOM country, accounting tion, geographical dispersal and distance for approximately 47 percent of CARICOM’s from major markets, small, fragmented total land mass, while Montserrat, with a and highly imperfect markets, minimal ex- land area of 102 square kilometres, accounts port diversification and dependency upon for barely 0.02 percent. The OECS has a very few export markets, inadequate in- combined area of 2914 square kilometres, 6 Haiti is categorised as frastructure, low competitiveness, eco- accounting for 0.6 percent of the Region’s a least developed country nomic rigidity with high adjustment costs, total land area. To represent this disparity, (LDC) by the United Nations, thus it is a low-income high transport and transit costs, and con- Guyana’s geographic surface exceeds the country within CARICOM. siderable difficulties in attracting foreign OECS Member States combined by a ratio 7 The members of the OECS investment. of 74:1 (See Table 2). are Antigua and Barbuda, Dominica, Grenada, Even though the CARICOM countries Montserrat, Saint Lucia, share common characteristics, they also 2.1 Structure of CARICOM Economies St. Kitts and Nevis, and St. Vincent and the Grenadines. differ in many respects, such as in phys- Anguilla and the British ical and economic size, levels of economic To a large extent, the production and ex- Virgin Islands hold associate development, and per capita income. port structures of CARICOM Member memberships. 8 6 The margin of preference With the exception of Haiti, all CARICOM States were shaped by their colonial past is the difference between Member States are categorized as high-in- and longstanding preferential access ar- the duty that would be paid come to lower middle-income countries. under a system of preferences rangements with the EU and North in a free-trade arrangement Haiti accounts for approximately 59 per- American markets. However, with the ero- of some sort and the cent of CARICOM’s population, while sion of preferential margins8 through the applicable MFN duty. In this respect, the simple average at the other end of the scale Montserrat orderly dismantling of preferential schemes applied MFN tariff rate for has 0.03 percent of the population, with over the years, the engine of growth of the EU (6.4 percent), US (4.8 percent) and Canada fewer than 6,000 persons. The Organisation CARICOM Member States began to shift (5.4 percent) are relatively of Eastern Caribbean States (OECS)7 has a decidedly away from agriculture to services. low and declining.

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Table 1/ Structure of CARICOM Agriculture Industry Manufacturing Services Exports Imports Countries (% of GDP) (% of GDP) (% of GDP) (% of GDP) (% of GDP) (% of GDP) Economies, 2010 Antigua and Barbuda 2.0 19.9 1.9 78.1 46.3 56.5 The Bahamas 2.2 15.2 3.5 82.6 41.5 50.1 Barbados * 3.0 23.2 73.8 73.8 47.3 52.4 Belize * 12.1 22.7 14.3 65.2 61.9 69.8 Dominica 13.3 14.9 3.5 71.9 31.7 54.4 Grenada 5.3 13.9 4.5 80.7 20.7 49.2 Guyana* 21.0 33.1 4.1 45.9 84.6 119.2 Haiti* … … … … 12.3 62.3 Jamaica 6.3 22.4 9.2 71.3 26.3 44.5 St. Kitts and Nevis 1.7 16.4 5.5 81.8 26.2 43.2 Saint. Lucia 3.2 16.6 3.9 80.2 47.2 60.3 St. Vincent and the 6.9 19.2 5.2 73.9 26.5 57.5 Grenadines Suriname* 10.9 37.8 22.7 51.3 30.4 45.2 Trinidad and Tobago* 0.6 52.4 5.3 47.0 63.7 36.7

Source: World DataBank: http://data.worldbank.org. * Data on agriculture, industry, manufactures, and services for Barbados are from 2009; comparable data for these sectors in Haiti was unavail- able. All Belize figures are from 2008. Export/import data for both Guyana and Suriname are from 2005, and for Trinidad and Tobago, from 2008. No data was available for Montserrat.

Consequently, the services sector in many important disparities in the Region. For ex- Member States has emerged as the dominant ample, of CARICOM’s GDP, Trinidad and sector, and presently represents over 70 per- Tobago accounts for 34.3 percent while cent of Gross Domestic Product, as indi- Dominica represents 0.6 percent (see Table 2). cated in Table 1. Guyana and Dominica have the highest 2.2.1 Current accounts10 contribution of agriculture to GDP Most CARICOM Member States regis- at 20.1 percent and 13.3 percent, respec- tered deficits of varying degrees in their tively. Oil, natural gas, and chemicals are the current accounts during the last decade.

9 World DataBank: http:// dominant economic activity in Trinidad and For the region as a whole, the current ac- data.worldbank.org. Tobago, whereas the mineral sector plays an count deficit as a percentage of GDP stood 10 This section refers to important role in the economies of Jamaica at an average of 13.2 percent for the pe- current account data from the World Bank, World and Suriname, although services contribute riod 2001–2010, with the OECS aver- Development Report, 2011. more to their GDP. aging 24.3 percent. Only Trinidad and Current Account = Sum of Balance of Trade (EX-IM) Tobago consistently generated a surplus + Factor Income + Cash 2.2 Macroeconomic Environment during these years, averaging 15.3 percent Transfers.Source. of GDP. High energy and chemical prices 11 World Bank/OAS, Caribbean: Accelerating In 2011, the Region’s aggregate gross do- (oil, gas, ammonia, methanol, and urea), Trade Integration – Policy mestic product stood at approximately coupled with strong production volumes, Options for Sustained Growth, 9 The spread and distri- contributed to Trinidad and Tobago’s high Job Creation, and Poverty US$69.8 billion. 11 Reduction, April 2009. bution of the GDP indicators highlight the current account performance. Trade Snapshot :: 5

Table 2/ GDP US$ Mn Share Per Capita GDP Selected Indicators Area (Current in Total (Current Population (sq. Market CARICOM Market Income Country (2009) ‘000 km) Prices 2009) GDP Prices 2009) Classification* Antigua and Barbuda 89 442 1,097 1.8 12,473 Upper-middle income The Bahamas 342 13,878 7,376 12.6 21,569 High-income Barbados 275 431 3,538 5.8 13,820 High-income Belize 333 22,966 1,337 2.2 4,355 Low-middle income Dominica 71 750 375 0.6 5,608 Upper-middle income Grenada 110 345 614 1.0 5,912 Upper-middle-income Guyana 769 216, 970 2,025 3.3 2,658 Low-middle income Haiti 9,923 27,750 6,478 10.7 652 Low-income Jamaica 2,695 10,991 12,414 20.5 4,565 Upper-middle income Montserrat 5 102 … … … … St. Kitts and Nevis 51 269 526 0.9 10,120 Upper-middle income Saint Lucia 172 616 954 1.6 5,547 Upper-middle income St. Vincent and the 100 389 585 1.0 5,370 Upper-middle income Grenadines Suriname 524 163,820 2,178 3.6 4,189 Upper-middle income Trinidad and Tobago 1,310 5,128 21,124 34.3 15,776 High-income CARICOM 16,775 464,848 60,680 100 8,044 OECS 601 2914 4,206 6.9 7,505

Source: CARICOM Secretariat Statistics; CARICOM’s mid-year population estimates; United Nations Human Development Report 2010, and the World Bank. * The World Bank uses gross national income per capita as the main criterion for classifying economies.

The OECS Sub Region’s current account CARICOM’s non-oil producing States are deficits were particularly acute during the vulnerable to fluctuations in global energy period 2001–2010. This can be attributed prices given their high dependence on fossil to the Sub Region’s narrow export (goods) fuels. The goods and services exports of these base, over-dependence on a dominant ser- countries are insufficient to offset the costs vices sector, weak manufacturing sector, and for oil imports, which were on the increase relatively high import dependency (goods), throughout the last decade (except for a brief particularly with regard to fossil fuels. decline in 2009), and created a considerable There is a positive correlation between fiscal burden. The reduction in tourism re- Member States’ merchandise trade bal- ceipts and remittances has only perpetuated ance and their current account balance. For the external trade imbalance trend. Marginal most CARICOM countries, trade deficits in improvements in 2009 and 2011 partly re- goods outstrip surpluses generated in ser- sulted from slowing import growth. vices trade. Additionally, due to their narrow agricultural production and export base, 2.2.2 The Debt Problem most CARICOM Member States are also Globally, several countries have responded net food importing developing countries. to the deteriorating economic environment 6 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

Figure 1/ St. Kitts and Nevis Debt* to GDP Ratio, Jamaica 2010 Grenada Antigua and Barbuda Belize Barbados Dominica St. Vincent & the Grenadines Guyana St. Lucia The Bahamas Trinidad y Tobago Suriname Haiti 0 50 100 150 200

Source: IMF, World Economic Outlook Database *General government gross debt consists of all liabilities that require payment or payments of interest and/or principal by the debtor to the cred- itor at a date or dates in the future (IMF).

by introducing counter-cyclical fiscal poli- –Grenada (102.4), Jamaica (142.9), and cies. However, the ability of CARICOM St. Kitts and Nevis (163.9). Haiti and 12 See ECLAC, Time for countries to apply such policy measures to Suriname had the lowest debt-to-GDP ratio Equality: Closing Gaps, Opening Trails, 2010. cope with the economic fallout was invari- with 17.3 percent and 18.5 percent, respec- 13 The IMF assists countries ably constrained by public-sector over-in- tively, (see Figure 1). Not surprisingly, debt facing balance of payments In fact, in the 2008–2009 fiscal servicing, particularly of external debt, con- issues through its main debtedness. lending instrument, the years, interest payments on central govern- tinues to deprive CARICOM countries of stand-by arrangements ment debt accounted for 14 percent of GDP substantial amount of resources that could (SBA). Antigua and Barbuda, Jamaica, and St. Kitts in Jamaica, 8.8 percent in St. Kitts and Nevis, otherwise be directed towards productive and Nevis currently have 4.2 percent in Saint Lucia, 3.7 percent in St. activities. outstanding loans within the SBA framework. The Vincent and the Grenadines, and 3.3 per- In 2010, it was estimated that Jamaica’s Extended Credit Facility cent in Barbados.12 total debt service14 was equivalent to 27 per- (ECF) is another lending cent of GDP, the highest in the region. Other instrument that provides loans at highly concessional Several CARICOM countries continue to countries with high debt service were St. Kitts terms to lower income grapple with high indebtedness, which and Nevis, St. Vincent and the Grenadines, countries; Haiti and Guyana have outstanding loans further exacerbates their economic vul- Haiti, and Grenada (see Table 3). Such high under the ECF arrangement. nerability. While some have been able to re- debt service monopolizes government rev- Source: IMF, . www.imf.org duce their debt levels through a variety of enue and squeezes public expenditure in 14 Debt service is the sum of principal repayments measures, including fiscal consolidation and other areas, including infrastructure and and interest actually paid debt write-offs, many CARICOM coun- initiatives aimed at improving competitive- in foreign currency, goods, or services on long-term tries continue to carry unsustainable levels ness and fostering diversification. debt, interest paid on short- of debt.13 In fact, in 2010 three CARICOM Moreover, the Region’s access to donor term debt, and repayments (repurchases and charges) to Member States had public sector debt- resources, including concessional loans, is the IMF. to-GDP ratios in excess of 100 percent often limited because some international Trade Snapshot :: 7

development partners rely primarily on Table 3/ Country Total Debt Service GDP per capita to determine whether or not Total Debt Service*, Antigua and Barbuda n.a. a country qualifies for development support, 2010 The Bahamas n.a. not taking into account other economic in- Barbados n.a. dicators that characterize Caribbean econo- Belize 12.1 mies. This notwithstanding, forging stronger Dominica 9.8 public-private sector partnerships may be Grenada 14.3 one way that CARICOM countries could in- Guyana n.a. crease access to financial resources, especially Haiti 15.7 given the excess liquidity in the Region’s Jamaica 27.9 banking sector. St. Kitts and Nevis 23.2 Saint Lucia 7.1 Caribbean external debt accounts for St. Vincent and the Grenadines 16.4 a sizable percentage of the total public Suriname n.a. sector debt. Incurring foreign debt has the Trinidad and Tobago n.a. advantages of avoiding the crowding out of Source: World Bank Development Indicators *Total debt service (% of exports of goods, services, and income) private sector in accessing loans in the do- mestic market, generating an inflow of for- eign exchange, and benefitting from longer maturity periods and lower interest rates.15 chemical prices as well as strong produc- However, if the foreign debt incurred is ex- tion and foreign direct investment inflows. cessive, it will put further pressure on for- The OECS Sub-Region, which is comprised eign exchange reserves. Several CARICOM largely of tourism-dependent economies, countries are implementing measures to grew at an annual average rate of 1.7 percent reduce their ratio of external debt to total during the period; leading was St. Vincent public debt to sustainable levels. and the Grenadines with 2.8 percent. In 2009, economic activity contracted 2.2.3 Economic Performance of CARICOM16 in most CARICOM Member States as the On average, CARICOM Member States result of the global financial and economic have experienced positive growth in real crisis. Most affected were the services-de- 15 CARICOM Secretariat, Caribbean Trade and gross domestic product (GDP) for most pendent economies. The sharp decline in Investment Report, 2010. 17 of the last decade. However, several im- tourism receipts from key European and 16 This section refers to GDP portant macroeconomic indicators have North American markets, a rise in com- growth rates from the World Development Indicators, shown worrisome trends. Real GDP for the modity and food prices, and reductions in World Bank. Region expanded at an annual average rate remittances, FDI-financed construction, 17 According to World Bank of 2.0 percent between 2001 and 2010, al- and external demand for raw materials, all study A Time to Choose: Caribbean Development though some countries experienced wide contributed to the contraction of domestic in the 21st Century, the year-to-year fluctuations. economic activity in a number of countries. growth performance of the Caribbean has been Trinidad and Tobago was the main The largest contractions in GDP took declining since the 1970s, driver of regional growth during 2001–2010. place in St. Kitts and Nevis (11.1 per- from 3.9 percent in the 1970s, Its average annual growth rate of 5.7 per- to 2.2 percent in the 1980s, cent), Antigua and Barbuda (10.9 percent), and to 1.9 percent in cent was generated largely by high fuel and and Grenada (8.3 percent). The OECS’ the 1990s. 8 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

combined GDP contracted by 6.5 per- were Dominica (1.7 percent), The Bahamas cent, while the Region’s as a whole shrunk (0.9 percent), Barbados (0.3 percent) and by 3.3 percent, highlighting the OECS’ rela- Trinidad and Tobago (0.1 percent). All the tively higher susceptibility to external eco- other CARICOM States experienced con- nomic shocks. Trinidad and Tobago’s GDP traction in their GDP.18 declined 3.5 percent in 2009, partly due to lower energy prices, and Jamaica’s real GDP 2.2.4 Foreign Direct Investment19 contracted by about 2.5 percent due to a Prior to 2009, the Region was seeing combination of factors, including a decline a progressive increase in foreign di- in production of bauxite and alumina and a rect investment (FDI), which peaked at fall in tourism receipts. US$6.75 billion in 2008. With the global Three Member States exhibited positive economic and financial crisis, however, output growth in 2009: Guyana (3.3 per- FDI inflowsto most CARICOM Member cent), Suriname (3.1 percent), and Haiti States, decreased in 2009 (50.4 percent) (2.9 percent). However, Suriname experi- and 2010 (32.4 percent). enced a deceleration in its rate of growth In 2009–2010, FDI decreased for all from 4.7 percent the previous year; this was CARICOM Member States except Haiti, in part attributable to a decline in the alu- where FDI saw a considerable increase mina production as well as lower prices of 303 percent due largely to investments for alumina and oil. Other factors contrib- in the telecommunications sector following uting to the positive performance of these the 2010 earthquake.20 During the same two three countries included high gold prices years, FDI inflows to the OECS Sub-Region (Guyana and Suriname) and post-disaster contracted by 25.6 percent and 16.2 per- reconstruction (Haiti). cent, respectively. Information suggests that several projects, particularly construc- While the Region’s GDP contracted an tion-related, were either deferred or shelved additional 1.3 percent in 2010, its rate altogether. of decline was slower than in the pre- vious year. The same held true for the 2.3 Structures and Patterns of Trade OECS Sub-Region, which contracted by 3.4 percent. The leading regional eco- The Caribbean economies’ small size not 18 For more details, see nomic performers were Suriname (4.4 per- only limits their productive capacity but ECLAC, Economic Survey of Latin America and the cent growth), Guyana (3.6 percent), and also their internal market. CARICOM Caribbean, 2010. Belize (2 percent). Suriname’s continued countries have relatively open economies as 19 This section refers to data robust economic performance was driven they seek to generate additional market ac- on foreign direct investment flows from UN ECLAC, by accelerated activity in the construction cess to create the requisite demand-pull for Foreign Direct Investment sector and increased government spending. generating economies of scale. They also in Latin America and the Caribbean, 2011. Guyana also maintained strong growth as a rely heavily on imports for inputs into local 20 See IMF Haiti Country result of continued high commodity prices production and to satisfy consumer de- Report on Article IV and strong domestic demand while Belize mand. Given their small domestic markets, Consultations. 21 INTAL/IDB, CARICOM recovered from its 2009 stagnation. Other Member States also rely heavily on export Report No 2, August 2005. countries that registered positive growth revenue to sustain economic growth.21 Trade Snapshot :: 9

400 Figure 2/ CARICOM Intra-regional 350 Trade (US$ millions) 300 250 200 150 100 50 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Intra-regional imports ($US Mn) Intra-regional exports ($US Mn)

Source: Caribbean Trade and Investment Report 2005 and calculations based on CARICOM Secretariat’s statistics

Trade in goods and services dominate 2.3.1 Intra-regional Trade24 the Region’s economic activity to the ex- Intra-regional exports have steadily tent that most Member States have trade in declined, reaching their lowest level goods and services to GDP ratios in excess in 2007 at 12.2 percent. The highest level of 100 percent. This trade openness further of intra-regional exports was registered increases susceptibility to exogenous eco- in 1998 where it accounted for 21.5 percent nomic shocks. Here again, differences among of total CARICOM exports. In 2009, intra- countries are extreme: at one end, Guyana regional exports stood at 13.7 percent of has an openness index of 170 percent, while total exports. Notwithstanding year-to-year at the other, Haiti’s ratio is 58.1 percent. fluctuations, intra-regional imports, which accounted for 11 percent of total imports The pattern and structure of CARICOM in 2009, have remained relatively stagnant trade in goods has remained somewhat un- (see figure 2). changed. The Region exports small percent- Intra-regional trade is by far dom- ages of its total production to intra-regional inated by the CARCOM MDCs, with markets, while trade with extra-regional Trinidad and Tobago accounting for 78 per- traditional partners - USA, Canada, the cent of intra-regional exports in 2009. The UK, and the rest of the European Union22 – OECS countries collectively accounted 22 CARICOM Secretariat, dominates by far CARICOM’s total trade in for 5.5 percent of intra-regional exports. Caribbean Trade & goods. Further, most of CARICOM’s trade, Trinidad and Tobago’s dominance results Investment Report, 2010. 23 both intra-regional and extra-regional, is from strong exports of natural gas, petro- CARICOM’s more developed countries are The carried out by the region’s most developed leum products, and light manufactured Bahamas, Barbados, Guyana, countries (MDCs)23, with Trinidad and goods. Jamaica, Suriname, and Trinidad and Tobago. Tobago the leading exporter (73.4%) and Intra-regional imports peaked in 2008 at 24 Caribbean Trade and Jamaica (28%) the major importer. US$3.2 billion, declining to US$1.9 billion Investment Report 2010. 10 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

Figure 3/ 25,000 CARICOM Extra- regional Trade 20,000 (US$ millions)

15,000

10,000

5,000

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Extra regional exports Extra regional imports

Source: Caribbean Trade and Investment Report 2005 and calculations based on CARICOM Secretariat’s statistics

the following year. The MDCs accounted relations. But this same high level of extra- for 72.5 percent (approximately US$1.3 bil- regional trade increases the region’s vul- lion) of intra-regional imports, and the nerabilities due to dependence on foreign LDCs,25 27.7 percent (US$0.52 billion). exchange earnings to sustain economic ac- In 2009, the OECS Sub-Region achieved tivities as well as being a source of inputs for its highest intra-regional import share local producers and to satisfy consumer de- (26.8 percent). mand. This sensitivity is particularly acute Jamaica was the largest intra-regional for shocks that precipitate declining prices importer; its 34.4 percent share in 2009 of, or drop in demand for, major exports, as showed a significant decline from 50.4 per- witnessed during the recent global financial cent in2008. Jamaica’s intra-regional import and economic crisis (2009). demand is fuelled by a combination of fac- After peaking at US$23 billion in 2008, tors, including its population size, demand CARICOM’s total exports (extra-re- for consumption items from the rest of the gional) declined sharply to US$12.4 billion Region, heavy reliance on petroleum imports in 2009. However, despite a sharp decline from Trinidad and Tobago, and rice imports in exports from Trinidad and Tobago of from Guyana.26 The second and third largest more than 50 percent from the previous intra-regional markets are Guyana (17.1 per- year, the country remains by far the dom- 25 CARICOM’s less developed countries are Antigua and cent) and Barbados (15.4 percent). inant exporter in CARICOM, accounting Barbuda, Belize, Dominica, for 73.4 percent of total exports in 2009. Grenada, Montserrat, St. 2.3.2 Extra-regional Trade Kitts and Nevis, Saint Lucia, and St. Vincent and the Extra-regional markets continue to ac- 2.3.3 Foreign Trade Taxes Grenadines. count for in excess of 80 percent of CARICOM LDCs, and in particular the 26 CARICOM Secretariat, CARICOM’s trade, demonstrating the im- countries of the OECS, are relatively more Caribbean Trade & Investment Report, 2010. portance of the Region’s external trade dependent than the MDCs on foreign trade Trade Snapshot :: 11

Figure 4/ taxes, particularly on tariffs, customs ser- Other, vice charges, environmental charges, and 27.2 United States, CARICOM Top Domestic consumption or other taxes on imports 41.5 Export Partners, 2008 for revenue collection. It is estimated that in 2009, international trade taxes accounted Suriname, for in excess of 30 percent of government 2 revenue for Antigua and Barbuda, Grenada, Dominican Montserrat, St. Kitts and Nevis, and Saint Republic, Lucia. These countries are therefore relatively 2.4 more vulnerable to revenue losses from trade Barbados, 2.6 reform and tariff liberalisation than other Mexico, Jamaica, CARICOM countries, where dependence on 2.7 5.9 Canada, EU, these taxes and tariffs is much less. Further, 3 12.4 in some cases, alternative streams of revenue may not be cost effective due to administra- Source: Caribbean Trade and Investment Report 2010 tive and institutional constraints. Consistent with the special status of the LDCs as enshrined in the Revised Treaty extent financial services, are the dominant of Chaguaramas, CARICOM had tradi- services sub-sectors of these economies. For tionally sought special dispensation in ex- most countries, export of services, which is ternal negotiations for those countries with a primary source of foreign exchange, ac- respect to tariff liberalisation. This com- counts for more than 70 per cent of their 27 Under the monly manifested itself in the form of an total exports. Exceptions are Belize, Guyana, CARIFORUM-EU EPA, CARICOM LDCs will exemption from tariff liberalisation com- Haiti, Suriname, and Trinidad and Tobago. gradually liberalize access to mitments, as is the case with CARICOM’s However, for the Region as a whole, the value their markets. 28 agreements with the Dominican Republic of goods exports exceeds that for services; for World Bank/OAS, Caribbean: Accelerating 27 and Costa Rica. Another approach has the OECS Sub-Region the converse holds. Trade Integration – Policy been to fashion CARICOM’s tariff liber- An analysis of the Region’s export Options for Sustained Growth, Job Creation, and Poverty alisation schedule in a manner that allows structure shows an increased concentration Reduction, April 2009. 28 for products of revenue interest to be ei- of products. In 1997, the top 20 prod- 29 This section refers to ther exempted or back-loaded, thereby al- ucts accounted for 51 percent of total ex- Table C: Diversification and Concentration Indices lowing sufficient adjustment time, as is the ports. A decade later, the top 10 products (2010 in the Statistical case with the CARIFORUM-EU Economic accounted for 75.1 percent of the Region’s Annex. The diversification index (based on data from Partnership Agreement (EPA). total exports. This increased share may sug- UNCTADSTATS) signals gest instability in export earnings, which can whether the structure of 2.3.4 Composition of Exports and Imports undermine domestic demand and invest- exports or imports by product of a given country The majority of CARICOM economies are ment attractiveness. Using diversification in- or group of countries predominantly service-based. In fact, the dices29 to gauge the differences between the differs from the world structure of the product. CARICOM Region has a clear comparative structure of trade of the country or country The diversification index advantage in the area of services, particularly group and the world average, Suriname had is computed by measuring absolute deviation of the in tourism, entertainment, and other cultur- the most diversified export basket, with an country share from world ally related sectors. Tourism, and to a lesser index of 0.84. Antigua and Barbuda had the structure. 12 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

least diversified exports among CARICOM trading arrangements in which market ac- countries, with an index of 0.52. cess—especially extra-regionally—has al- ways been a central goal of CARICOM’s Exports are also concentrated geographi- trade and economic development agenda cally among CARICOM states, with the US due to the small size of the Region’s national market accounting for more than 41.5 per and regional markets. The Region has pur- cent of the Region’s goods shipped overseas. sued a dual approach to integrating into the This concentration also exposes the Region multilateral trading system, deepening re- to vulnerability, since changes in the business gional integration while at the same time cycle, policies, or regulations in the importing strengthening trading relations with tradi- country can severely impact exports and the tional partners and establishing or exploring external balance. The Region’s main exports new arrangements with other countries and to the US market are natural gas, petroleum trading blocs. products, aluminum, and bauxite. While each trade agreement offers The EU is the CARICOM’s second CARICOM export opportunities, each also most important export market, accounting present challenges in implementing and ex- for 12.4 percent of the Region’s exports. ploiting export opportunities arising from Other important extra-regional export more favourable market access conditions. partners are Canada, Mexico, and the Dominican Republic. The main CARICOM 2.4.1 WTO relations markets for regional exports are Jamaica All CARICOM Member States except The (5.9 percent), Barbados (2.6 percent), and Bahamas31 and Montserrat are members of Suriname (2.0 percent). the World Trade Organisation (WTO) and Goods account for more than 70 per- are therefore bound by commitments con- cent of imports for most CARICOM tained in the General Agreement on Tariff Member States. The top 10 imports, which and Trade (GATT), the General Agreement account for 34 percent of the Region’s total on Trade in Services (GATS), and the Trade- imports, are largely petroleum and its re- related Aspects of Intellectual Property lated products. Rights (TRIPS). CARICOM countries exported to key CARICOM Member States that belong to markets in North America and Europe for the WTO have been participating in the Doha decades under preferential arrangements Development Agenda since the Doha round designed to stimulate and diversify the was launched in Qatar in November 2001. Region’s exports. In light of the trade sta- CARICOM Member States are also mem- tistics presented above, Member States have bers of several alliances, including the SVEs, generally concluded that these arrange- the Africa, Caribbean and Pacific (ACP) ments have not been successful.30 Group, the Group of 33 on Special Products and Special Safeguard Mechanism, and the 30 Caribbean: Accelerating Trade Integration, 2010. 2.4 Trading Arrangements Group of 90, and they support the positions 31 The Bahamas is currently advanced by these alliances. engaged in accession CARICOM Member States have vigor- negotiations to become a CARICOM Member States are signato- WTO member. ries to multilateral, regional, and bilateral ously advocated that SVEs should receive Trade Snapshot :: 13

special and differential treatment and pref- Trade and Investment Framework Agreement erences in light of their special characteris- to replace the Agreement between the tics. Additionally, CARICOM Member States Government of the United States of America have called for additional resources targeted and the Caribbean Community (CARICOM) at reducing supply-side capacity constraints concerning a United States-CARICOM to maximize the benefits of trade liberali- Council on Trade and Investment, which sation. CARICOM also backs the efforts of was signed in 1991. The revised agreement SVEs to establish a framework modelled will govern future trade and economic coop- after the Enhanced Integrated Framework eration between the two parties. Significant for Least Developed Countries for main- progress has been achieved thus far in the streaming and accessing AfT resources. negotiations.

All CARICOM Member States have taken 2.4.3 Relations with the European Union steps to comply with their WTO commit- CARIFORUM and the EU formally con- ments. CARICOM members have noti- cluded negotiations for an EPA on fied several measures to the WTO over the December 16, 2007, with the initialling of a years; however, the level of implementa- comprehensive text. In 2008, the two sides tion varies from one country to another.32 signed the agreement, thereby ushering in Member States possessing greater technical the first reciprocal trade agreement between or human resources capacities demonstrate CARIFORUM and the EU. Trade with the a higher level of compliance with their WTO EU was previously governed by succes- commitments. sive non-reciprocal ACP-EC Conventions (Lomé and Cotonou). 2.4.2 Relations with the US Several new features relating to trade CARICOM-United States trade relations now frame CARIFORUM-EU relations. were formalised in January 1984 under For example, the new trade arrangement the Caribbean Basin Economic Recovery between CARIFORUM and the EU is a re- Act (CBERA). This instrument contains gion-to-region agreement, in contrast to the the trade component of the Caribbean EC agreement with ACP. Further, the agree- Basin Initiative (CBI), which was launched ment covers a comprehensive range of is- in 1983. The CBI grants duty-free access sues, including reciprocal trade preferences, to the US market subject to rules of origin. services, and an overarching development In 2000, the preferences were expanded chapter that outlines the scope and cooper- through the United States-Caribbean Basin ation priorities. Trade Partnership Act (CBTPA), which ac- 32 More information on the corded similar preferential tariff and quota All CARIFORUM countries except status of implementation treatment already granted for certain tex- Haiti have provisionally applied the EPA of WTO commitments by tile and apparel articles imported into Some States have CARICOM countries can be since 29 December 2008. gathered from the periodic the US from NAFTA countries, subject to instituted the first tariff reduction sched- Trade Policy Review reports conditions. uled for 1 January 2011.33 Some of the joint available at www.wto.org. 33 Barbados, Belize, Grenada, In addition, CARICOM and the US have institutions established under the EPA have Guyana, and St. Kitts and participated in negotiations for a Revised met, whilst plans are progressing to convene Nevis. 14 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

meetings of others. A roadmap has been de- co-operation initiatives. Negotiations for a veloped to guide the Region’s implemen- CARICOM-Canada Trade and Develop- tation of its commitments under the EPA. ment Agreement were officially launched Further, an EPA Implementation Unit in the in August 2007, but real work did not begin CARIFORUM Directorate of the Caribbean until November 2009.35 Community Secretariat, which became op- erational on 16 February 2009, is charged 2.4.5 Other Bilateral Relations with guiding the Region’s implementation CARICOM has also concluded trade agree- of the agreement. ments with a number of countries within the Western Hemisphere. Currently, there 2.4.4 Relations with Canada are partial scope agreements with Colombia, Trade and economic co-operation rela- Cuba, and Venezuela, and free trade agree- tions between CARICOM and Canada have ments have been concluded with Costa Rica been governed by a number of instruments, and the Dominican Republic. Exploratory namely, the 1979 CARICOM-Canada Trade talks have taken place with Central America and Economic Co-operation Agreement and and MERCOSUR to determine the feasi- its protocols, including the 1998 Protocol on bility of negotiating individual free trade Rum; CARIBCAN, which grants unilateral agreements with these groups of countries. duty free access to eligible goods from ben- CARICOM’s trade performance under eficiary countries in the English-speaking the bilateral trade agreements has been Caribbean up to 2013; and bilateral in- mixed. While CARICOM has enjoyed trade vestment treaties with individual Member surpluses under the agreements with Cuba States, namely Barbados and Trinidad and and the Dominican Republic, the Region Tobago. Canada also has memoranda of has experienced persistent trade deficits 34 CRNM, CARICOM- Canada Negotiating Brief understanding with Jamaica, Trinidad and with Colombia, Costa Rica, and Venezuela. on CARICOM-Canada Tobago, Barbados, and the OECS countries Negotiations for a Trade and Development Agreement. under which farm workers are allowed to 2.5 Regional Integration 35 The scope of the work in Canada on a seasonal basis.34 negotiations include, In 2001, CARICOM Heads of Govern- development, trade-related Regionalism has always been viewed as a cooperation, institutional ment proposed a new round of negotia- precondition for greater integration into issues, dispute settlement, tions to their Canadian counterparts with the global trading system. Three tiers of trade in services, telecoms, ICT and E-commerce, the following broad objectives: (1) build on Caribbean regional integration and coop- financial services, energy and broaden the scope of the current in- eration can be distinguished as follows: the services, investment, tourism, culture, investment, trade struments and programmes of trade and CARICOM Single Market and Economy and innovation/intellectual economic co-operation, (2) deepen disci- (CSME), the Organisation of Eastern property, transparency in plines to improve market access for CAR- Caribbean States Economic Union, and government procurement, competition policy, ICOM exports of goods and services while CARIFORUM, which essentially is a mecha- monopolies and state providing a more secure and predictable nism for cooperation with the EU. enterprises, agriculture and fisheries, trade facilitation, foundation for bilateral trade, (3) stimu- rules of origin, SPS, TBT, late increased flows of Canadian invest- 2.5.1 CARICOM Single Market and Economy trade defence measures, The first attempt at regional economic in- national treatment, and ment into the Region, and (4) provide a market access. comprehensive framework for development tegration among Caribbean countries can Trade Snapshot :: 15

be traced back to 1958 with the creation of of Justice (CCJ), the CARICOM Regional the Federation of the West Indies.36 Since Organisation on Standards and Quality then, several other initiatives have built (CROSQ), and the Caribbean Competition on this federation that have resulted in Commission (CCC). the current cornerstone of Caribbean in- tegration, the CSME. Currently being im- Status of Implementation plemented in two phases, the CSME seeks The CARICOM Single Market has the fol- to create a single economic space. The first lowing core regimes: free movement of skills, phase established the CARICOM Single goods, services, and capital, and the right of Market in 2006. The second phase will re- establishment. Studies commissioned by sult in the establishment of the CARICOM the CARICOM Secretariat concluded that Single Economy, which is scheduled to take the CSME is operating at about 64 percent effect at the end of 2015 once the requisite overall level of compliance,37 as follows: administrative, legal, and other arrange- (1) free movement of skills, 66 per cent; ments are put in place. (2) free movement of goods, 80 per cent; The objectives of the CSME, set out in (3) free movement of services, 37 per cent; the Revised Treaty of Chaguaramas, include (4) movement of capital, 72 per cent; and improved standards of living, full employ- (5) right of establishment, 64 per cent. ment of labour and other factors of produc- Progress has lagged in establishing the tion, accelerated and sustained economic CARICOM Single Economy’s legal, admin- development, expansion of economic rela- istrative, and institutional framework. tions with third countries, higher levels of international competitiveness, increased pro- 2.5.2 Organisation of Eastern Caribbean ductivity, greater effectiveness in dealing with States third countries, and more efficient delivery of The OECS, a subset of CARICOM coun- health, education, and other social services. tries, has been able to realise an even Only two CARICOM Member States deeper level of integration than the —The Bahamas and Montserrat—have wider CARICOM body. The Revised not signed the Revised Treaty. Of the sig- Treaty of Basseterre (RToB), which was natories, all 13 Member States have ratified signed 18 June 2010 and entered into the Revised Treaty. Montserrat is currently force 21 January 2011, establishes the OECS awaiting entrustment from the United Economic Union and sets out the organiza- Kingdom; the Bahamas has indicated that tion’s purpose, its governance arrangements, it will not become a member of the CSME. and provisions on dispute settlement. The Haiti’s obligations have been temporarily Protocol to the Economic Union Treaty sets waived due to the devastation caused by out the modalities for the union’s operation. the 2010 earthquake. The core regimes of the OECS 36 Several regional bodies have been cre- Economic Union include, (1) creation of a The Federation of West Indies included all ated to support regional integration in the common market for goods, including free Commonwealth territories Caribbean. These include: the Caribbean circulation; (2) free movement of persons; except the Bahamas, Belize, and Guyana. Agriculture and Health Food Safety (3) creation of a common market for ser- 37 CARICOM Secretariat’s Agency (CAHFSA), the Caribbean Court vices; and (4) dispute settlement. press release no: 22/2012 16 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

Status of Implementation 1 August 2011 and; free circulation of goods, Most OECS Member States have not yet June 2013. Deeper economic integration implemented legislation to give effect to pursuant to the OECS Economic Union is the Revised Treaty of Basseterre, although expected to complement integration initia- some progress has been made. Only St. tives at the wider regional level. Vincent and the Grenadines effected the administrative arrangements in full by the 2.5.3 CARIFORUM August 1, 2011 deadline. St. Kitts and Nevis The CARIFORUM Group of States, which and Dominica are applying the provisions. includes CARICOM Member States and Antigua and Barbuda, Grenada, and Saint the Dominican Republic and Cuba,38 is a Lucia are still applying the CSME arrange- wider mechanism for regional trade and ments, which provide that OECS citizens economic cooperation. This cooperation are granted a six-month stay. Ongoing dis- takes place within several frameworks, in- 38 Cuba is a member of cussions are being carried out on issues cluding the free trade agreements between CARIFORUM but as it including identification documents, con- CARICOM and the Dominican Republic is not a signatory to the Cotonou agreement or the tingent rights, portability of social ben- and CARICOM-Cuba respectively, as well as CARIFORUM-EU EPA. It efits, and training for border officials. The within the context of the EPA. Montserrat neither participates in related activities nor benefits from major timelines for the implementation is a member of CARICOM but not of funding under the European of regimes set to date are as follows: rati- CARIFORUM and is therefore not a sig- Development Fund (EDF), since EDF funding is tied to fication of the RToB and entry into force, natory to the CARIFORUM-EU Economic the Cotonou agreement. 21 January 2011; free movement of persons, Partnership Agreement. 3 Priorities for Action

t the global level, estimates indicate that CARICOM’s Broad AfT Priorities (2008): developed countries receive 70 percent Trade Policy and Regulation of the benefits from trade liberalisa- A „„Analysis, policy development, negotiations and tion.39 Furthermore, within the developing facilitation. world, such benefits have gone predomi- „„Implementation of trade agreements. nantly to advanced developing countries, Building Productive Capacity „„Private sector development. leaving many of the poorer, more vulner- „„Competitiveness. able countries actually worse-off. Among Network Infrastructure CARICOM Member States, while Suriname „„Trade-related infrastructure (particularly transportation). and Guyana have recently increased export „„Infrastructure networks. performance, intra-regional trade has been Other largely dominated by Trinidad and Tobago. „„Regional Integration and Cooperation „„Adjustment costs of trade liberalization A broad-based expansion in regional trade and economic development was originally envisaged when many national economies address its systemic supply side constraints. embarked on an agenda of structural ad- These restraints, which serve as formidable justment, trade policy reform, and market barriers to trade, include deficient economic liberalisation in the 1990s; however, such infrastructure, such as ports, freight logis- an expansion has largely not materialised. tics, internal transport and communications Clearly, trade liberalisation on its own has networks, and inadequate resources to en- not been sufficient to deliver robust eco- gage in production for export. In order to nomic growth to CARICOM Member States. remedy these problems, CARICOM coun- Moreover, slowing regional growth tries need increased complementary donor rates and declining demand for traditional support to take advantage of existing and exports (commodities and tourism ser- emerging trade opportunities and ensure vices), which have driven exports below pre- that development gains of trade liberalisa- 2008 levels, underscore the urgent need for tion are maximised and adjustment costs are 39 Stieglitz and Myers. not only productive diversification but also a mitigated. As a precondition for receiving Fair Trade for All: How Trade Can concerted effort on the part of the Region to such support, however, is the development Promote Development, 2006.

17 18 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

of a comprehensive Regional AfT Strategy decision of the Prime Ministerial Sub-Com- that clearly sets out the Region’s goals, pri- mittee on External Negotiations, which orities, and programmes. “agreed that the major Aid for Trade projects The Region’s long-term development developed by the Region should be transfor- plans and the constraints to the achieve- mational in nature and positively impact the ment of its objectives must form the basis greatest possible number of people of the Ca- for selecting strategic pillars of a Caribbean ribbean Community; and in this regard, also regional AfT strategy that will provide clear agreed that priority should be given to devel- guidance to the donor and investor commu- oping project proposals in the areas of Mar- nities. The Region’s primary policy goals can itime Transport and Information and be summarized as employment generation, Communication Technologies (ICT)…” 43 poverty reduction, sustainable economic In addition to the two priority areas growth and development, attainment of the highlighted by the Heads of Government, Millennium Development Goals (MDGs), the consultative process identified other achieving export led growth, deeper re- thematic areas of focus, projects, and points gional integration, and quicker integration of interventions. While Maritime Transport into the global economy. and ICT are indeed crucial, the Heads’ man- From the preceding analysis and dis- date should not diminish the importance cussion, stakeholders’ consultations, and of all the other development objectives benchmarking, it is evident that CARICOM and capacity building concerns identified must confront a myriad of binding con- during the consultative process, which also straints that inhibit the Region’s ability to urgently require AfT support. The view was achieve its long-term development objec- widely expressed that collectively addressing tives. Consequently, a pragmatic, coordi- the key drivers of Regional productivity and nated, and integrated approach that targets competitiveness in a coherent and coordi- a broad spectrum of issues through trade- nated manner, both regionally and at the related capacity building interventions in- national level, will enhance the private sec- cluding both hard and soft infrastructure tor’s ability to substantively take advantage is needed to redress this developmental im- of market opportunities deriving from mul- 40 Held in Montego Bay, Jamaica on May 6–8, 2009 balance and set the Region on a path where tilateral trade liberalisation in general and 41 It should be noted that trade can become an instrument of growth. bilateral trade agreements in particular. these were informed by The preparatory process to the Second For the strategy to be credible and cap- CARICOM Member States’ 40 responses to the WTO/ Regional Review on Aid for Trade identi- ture the attention of donors, the trade-related OECD Partner Country fied four broad priorities41 for resource mo- development goals and priority areas must Questionnaire of 2008. bilisation. The Region, however, utilised the be seen as necessary for redressing structural 42 Thirty-First Meeting of the Conference of Heads of intensive national AfT consultations to fur- imbalances, shrinking capacity gaps, spur- Government which followed ther refine the broad priorities set in 2008. ring private sector development, increasing on 4–6 July 2010. More specifically, the priorities emerging productive efficiency, and expanding pro- 43 The Twenty-First Meeting of the Prime Ministerial from the consultative process in Member duction, thereby setting CARICOM along a Sub-Committee on External States were consistent with the mandate path towards achieving region-wide trade- Negotiations held on July 3, 2010, in Montego Bay, provided by CARICOM Heads of Gov- led growth. Such goals and priorities must Jamaica. Italics authors’ own. ernment42 in 2010 when they endorsed the be guided by emerging areas of consensus Priorities for Action :: 19

from the national consultations and the re- Accordingly, Annexes I-III provide sult of the analysis undertaken. three inter-related action matrices of pro- Taken on balance, these broad cri- grammes and projects. Annex I illustrates teria led to three goals of the Region’s AfT Regional goals, projects, and the nature of Strategy: assistance required for cutting across the three AfT pillars. Annex II presents national i. Upgrading key economic reform projects that support the achieve- infrastructure. ment of the Regional priorities. Annex III ii. Enhancing competitiveness and outlines individual national AfT priori- facilitating trade expansion and ties that are not linked to a Regional pro- diversification. gramme, priority or project. iii. Deepening regional integration and The rest of this section of the strategy maximizing gains from external sets out the major Regional and national AfT trade agreements. priority areas and policy objectives, as well as specific points of intervention, projects, areas The consultative process also identified of capacity building focus, and drivers of de- distinct Regional policy goals and priority velopment covering the three broad strategic points of intervention for AfT resources and policy goals summarized in Figure 5. regional cooperation. In some instances, na- tional priorities supportive or essential for 3.1 Goal 1: Upgrading Key Economic the success of regional programmes were Infrastructure identified. Additionally, the strategy iden- tifies national AfT priorities that were ei- When managed successfully, infrastructure ther peculiar to individual Member States or investment can have a positive impact on shared by several Member States, but were economic development, which is invariably not linked to the regional priorities. measured through economic growth, output,

Figure 5/ Goal 2: Enhancing Goal 3: Deepening Regional Goal 1: Upgrading Key Competitiveness and Integration and Maximizing Goals of the Caribbean Economic Infrastructure Facilitating Trade Expansion Gains from External Trade Regional Aid for Trade and Diversion Agreements Strategy Trade Facilitation Maritime Transport Sanitary and Phytosanitary Regional Integration Measures

Information and Communication Quality Infrastructure Technology

Services External Trade Agreements Energy Private Sector Development 20 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

regional competitiveness, and welfare gains. overall transport costs and insurance in Moreover, the quality and availability of in- the Caribbean are 30 percent higher than frastructure influences investment decisions the world average.46 and business establishment locations44 while CARICOM countries have little or no the availability of key economic infrastruc- control over the frequency and cost of re- ture45 (e.g. energy, transport, and telecom- gional and international shipping, given munications) promotes economic activity. that domestic market size as well as export CARICOM Member States share the view levels are inadequate to produce the requi- that upgrading components of the Region’s site economies of scale. Enhancing mari- economic infrastructure can leverage overall time transport infrastructure therefore has regional development by, inter alia, low- the potential to fuel the regionalization of ering input costs, enhancing labour pro- CARICOM’s production and exports, in- ductivity, generating economies of scale, crease port productivity, and generate sig- and improving regional competitiveness. nificant cost savings, as well as increase The Region also recognizes that well-de- intra-regional trade and partially address veloped infrastructure reduces the effect of spatial concentration of productive activity distance, thereby facilitating regional and within the Region. A major objective is ini- international market integration. However, tiating an innovative programme of prag- the challenging fiscal situation of many of matic investments in port infrastructure the Caribbean countries limits their access and shipping technology, as well as pro- to domestic and foreign credit and reduces moting regional cooperation in maritime their ability to incur any additional sovereign infrastructure development. debt to finance infrastructure development. Within the Western Hemisphere there Most CARICOM economies, particularly the has been an increasing trend towards con- OECS members, continue to register cur- centration of global shipping lines, the rent account deficits and grapple with high formation of global alliances, and the 44 Socio-Economic Impact of indebtedness, thereby limiting the financial emergence of terminal operator groups. Infrastructure Investments, Vytautas Snieska, Ineta resources available to invest in modernizing Transhipment also has assumed a greater Simkunaite, Engineering domestic trade-related infrastructure. role, altering shipping routes and network Economics(3) (Journal), configurations. Together, these factors have Economics of Engineering Accordingly, the principal objective Decisions, 2009. of the strategy is to secure complementary presented additional hurdles for the Region 45 Internal facilities of resources or identify public-private part- and to a large extent have retarded the a country that make growth of intra-regional trade. This situa- business activity possible, nerships for upgrading key economic in- such as communication, frastructure (Maritime Transport, ICT, tion is exacerbated by the Region’s cost in- transportation, and and Energy). efficiency and the underdeveloped nature of distribution networks, financial institutions and its transport infrastructure. markets, and energy systems. Maritime Transport The World Economic Forum’s Global 46 Moreira M., Volpe, C., and Containerized shipping is, the lifeblood of Competitiveness Report for 2011–2012 pro- Blyde, J. 2008. Unclogging the Arteries: The Impact of international trade and, drives significant vides an assessment of the quality of trans- Transport Costs on Latin productivity and competitiveness gains. port infrastructure for selected CARICOM American and Caribbean Trade. Inter-American Ninety percent of the world’s commodity Member States. For each sub-index, the Development Bank. trade is carried by containers; however quality of a country’s infrastructure is Priorities for Action :: 21

Table 4/ Quality of Global Competitiveness Quality of overall Quality of port air transport Index: Quality of Country infrastructure Quality of roads infrastructure infrastructure Selected Infrastructure Range between 1 (extremely underdeveloped) and7 (extensive and efficient by international standards) Indicators (2010–2011) Barbados 5.8 5.4 5.6 6.3 Belize 3.5 3.0 3.3 4.4 Guyana 3.8 3.8 3.7 4.0 Haiti 1.8 1.7 1.8 2.1 Jamaica 4.2 3.8 5.3 5.5 Suriname 4.2 4.2 4.5 4.0 Trinidad and Tobago 4.4 3.9 3.9 5.0

Source: Global Competitiveness Report 2011–2012 graded from one (extremely underdevel- capacity vessels serving global or regional oped) to seven (extensive and efficient by transhipment hubs and smaller vessels international standards). linking the hubs to ports of lower ranking. The ranking of those CARICOM coun- As a result of the expansion of the Panama tries with GCI profiles underscores the chal- Canal, larger ships are expected to dis- lenges caused by the underdeveloped nature place smaller ones and new shipping routes of the Region’s infrastructure. Barbados and patterns emerge. These developments scored the highest among the CARICOM present both opportunities and challenges for quality of port infrastructure; Haiti for CARICOM Member States, individually scored the lowest for its port infrastructure. and collectively. Out of 142 economies profiled, the rankings The fact remains that the geographically for overall quality of infrastructure for those discontinuous nature of the CARICOM CARICOM Member States with GCI profiles countries, with only two countries sharing were between 22 and 141, with individual a common border (Guyana and Suriname), countries ranked as follows: Barbados (22); makes maritime transport an important Belize (100); Guyana (102); Haiti (141);47 driver of its trade and a critical determi- Jamaica (79); Suriname (78); and Trinidad nant of competitiveness. Factors such as and Tobago (53). The infrastructure indi- port connectivity, infrastructure, breadth cator is disaggregated in Table 4. of available services, storage facilities, size Consequently, for CARICOM, an effi- of ships, cargo volumes, transit times, and cient transportation system, in particular air positioning within international shipping and maritime transport, is regarded as a sine routes, individually and collectively influ- qua non for the effective operation of the ence cost and competitiveness. Deficiencies regional integration process and by exten- in port infrastructure, equipment (e.g., sion, more rapid integration into the global presence of gantry cranes), navigational economy. aids, regulatory frameworks, and com- 47 Haiti’s low rank can in part be attributed to the Transhipment has changed shipping puterization increase services time and several natural disasters it has routes and network configuration, with high overall costs. experienced. 22 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

In determining the appropriate mo- Annex II outlines specific national proj- dality for addressing these capacity deficien- ects linked to the respective regional AfT cies, a major concern consistently expressed outcomes, which should also engage the at- by stakeholders during the consultations tention of the donor community. Essential has been the absence of funding for infra- initiatives in this regard include the mod- structure development, particularly, but ernization of port infrastructure, improving not limited to, deficiencies that relate to the the ability of ports to handle transhipment implementation of many of the recommen- cargo, and exploring the feasibility and im- dations of studies already undertaken. In proving the capacity (storage and safety) some instances it may be necessary to con- and efficiency of small vessels. duct cost-benefit analyses before proceeding to implementation as well as to explore the Information and Communication Technologies feasibility of private sector-public sector- (ICT) donor partnerships. Empirical analyses have increasingly dem- In this respect, while the crafting of a re- onstrated that ICT (including telecommu- 49 gional strategy on freight logistics, mari- nications) spurs domestic output, and time transport, and trade facilitation48 that there is a causal link between ICT in- may be a step in the right direction, at best frastructure and lower costs of information this would only partially address the Re- acquisition and markets participation.50 gion’s transport infrastructure and maritime In respect to the latter, improving ICT in- security challenges. This notwithstanding, frastructure reduces transaction costs and urgently needed are interventions that seek increases output of firms operating in a to substantively address the Region’s soft- multiplicity of sectors.51 Clearly, invest- ware and hardware constraints in a compre- ment in ICT infrastructure and related ser- hensive and integrated manner. The regional vices can be a strong enabler of economic initiatives that possess the greatest potential growth and welfare gains to Caribbean to improve the efficiency and reduce the cost economies. The ultimate goal is to reduce of maritime transport, as well as Regional the digital divide between Caribbean econ- maritime safety and security as set out in omies and developed countries, which at Annex I, include the following: present is greater than the development 48 The Caribbean Regional gap. Strategy on Freight Logistics, Not surprisingly there is an increasing Maritime Transport and Trade Facilitation is a Study Regional Maritime Transport AfT Projects: acceptance within the Region that the ICT funded by the IDB. It aims to sector is another essential driver of regional develop regional action and „„Implement projects included in Caribbean Regional investment plans to improve Strategy on Freight Logistics, Maritime Transport export competitiveness in addition to in- maritime trade corridors in „„and Trade Facilitation. dustrial and private sector development. the Region. Conclusions from „„Upgrade Caribbean port infrastructure and services. the Study are expected by „„Establish a fast-ferry service in the Southern Therefore, a development path must be cre- December 2013. Caribbean Region ated that recognizes the growth of the ICT 49 Kala Seetharam Sridhar, „„Develop a common shipping policy for the small sector as one of the fundamental precur- Varadharajan Sridhar, 2009 vessel fleet in the OECS, and modernize the fleet. „„Develop and implement a cohesive regional maritime sors to sustainable economic growth in the 50 Norton, 1992. safety and security strategy for small vessels that 51 increasingly competitive global economy. Röller and Waverman, „„operate among CARICOM Member States. 2001. Indeed, information and communication Priorities for Action :: 23

technologies infrastructure are an essential sistent access to ICT, (4) prohibitive cost of component of modern trade processes. The access/connectivity, (5) strategic planning, physical movement of goods and efficient (6) research and innovation, and (7) public- provision of services now necessitates an ef- private partnerships. ficient and timely exchange of information. Likely first steps in the road map will be New technologies and their implementation an inventory of the available infrastructure in productive activities have been changing and a review of the regulatory framework the economic structure and contributing to related to spectrum management, taking increases in productivity in developed and into consideration the analogue to digital developing countries alike. Moreover, ICTs switch over. have become essential tools in advancing It is essential to tackle these structural de- trade and business facilitation. Beyond this, ficiencies in a coordinated and comprehen- greater use of ICTs by society as a whole can sive manner to achieve key Regional policy significantly improve CARICOM’s compet- outcomes, including increasing competi- itiveness at the global level and in the infor- tion in the delivery of broadband services mation society. to promote increased access, strength- In recognizing that the digital or in- ening national and regional E-governance formation gap essentially constitutes a mechanisms, and creation of an enabling development gap, CARICOM Heads of environment for conducting business elec- Government identified ICT as a Regional tronically. These ICT objectives are further priority. Additionally, the Region recog- elaborated at the project level in Annex I. nises that it must move quickly to harness Some of central points for capacity building the economic gains and positive externali- intervention include the following: ties of the strategic use of ICT to increase welfare and competitiveness of the Region and consequently re-orient its thinking on Regional ICT AfT Projects: the relevance of the information society to „„Review the regulatory framework on spectrum development. In an effort to enable the Re- management. „„Create a single ICT space. gion to fully capitalize the potential of ICT, „„Develop a roadmap to address analog switchover. CARICOM Heads of Government at their „„Develop a mechanism for private-public sector meeting of July 2009 mandated the devel- partnerships in the telecom sector (E-government). „„Develop a common regional legislative and regulatory opment of a strategy to guide the devel- framework for E-government. opment of ICT plans and programmes. „„Develop information standards, compliance, and policies for all regional institutions. That draft strategy has been completed „„Develop and commission Regional E-Government and and presented as the Digital Develop- E-Commerce portals ment Strategy 2010–2014, and is currently „„Develop and commission a regional pilot project on E/M Commerce (hardware, software) awaiting full approval by the ministers with responsibility for ICT. Further, numerous studies and plans have identified deficien- cies in the Region’s ICT infrastructure in Given that ICT has emerged as a cen- key areas including: (1) legislative and reg- tral underpinning of competitiveness and ulatory, (2) availability of data, (3) incon- private sector development, AfT initiatives 24 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

should seek to transform the informational costs as a major contributor to high produc- landscape of individual CARICOM coun- tion costs and as a corollary, a major deter- tries. In this respect, Annex II also provides rent to foreign direct investment as well as more specificity by clearly outlining na- private sector investment, thereby limiting tional projects that should also engage the economic diversification. Member States attention of the donor community. These universally identified adoption of renew- include development of national e-gover- able energy sources as a precondition for nance portals and e-commerce platforms; safeguarding the Region’s energy security, conducting gap analyses of laws, policies, spurring broad-based private sector devel- and standards as they relate to ICT; iden- opment, increasing FDI inflows, and facili- tifying key sectors for early ICT interven- tating export diversification. Accordingly, it tions; conducting an analysis of minimum is critical to take a coordinated approach to framework necessary to implement large placing the Region on a more sustainable en- national and regional ICT projects; and ergy-related development path. strengthening national ICT/information A number of barriers need to be sur- society units. mounted in order to develop the Region’s renewable energy potential and significantly Energy increase energy efficiency. These include in- Affordable modern energy services are crit- adequate policy, regulatory, and legislative ical for hastening economic growth, devel- frameworks for integrating renewable en- opment, and industrialization by enabling ergy into the electricity grid in various terri- the private sector to generate employment tories; inadequate human and institutional and raise domestic incomes. For many capacity; and inadequate information and Caribbean countries, the economic risk of awareness about technology options on the dependence on imported fossil fuels has be- part of the general public, the business com- come unsustainable. For this reason, many munity, government, etc. Given the current Member States are seeking to create a new challenges in the global economy and the fi- energy portfolio with a mix of renewable nancial crisis, which have significantly nega- energy sources, bioenergy and fossil fuels, tively impacted most CARICOM countries, in this way converting abundantly available there is need for expediting and scaling-up resources into productive assets.52 Moves of efforts. to diversify energy portfolios would in- AfT interventions should assist the Re- variably require donor funding, establish- gion in achieving the key outcomes such as ment of mechanisms for low-cost financing accelerating the development and use of of renewable energy projects, development renewable and alternative energy sources; cooperation, and transfer of energy technol- clarifying issues related to relative com- ogies; it would also require requisite policy petitiveness of natural gas as a fuel source 52 Christopher Flavin and framework to accommodate these means of in the context of regional energy policy Molly Hull Aeck, Energy for support. Development: The potential and needs of the Region’s industrial sec- Roles of Renewable Energy During the AfT consultations, Member tors; and strengthening the legislative and in Meeting the Millennium States, with the notable exception of Trinidad Development Goals, regulatory framework to support lower Worldwatch Institute, 2006. and Tobago, highlighted prohibitive energy cost energy from renewable sources and Priorities for Action :: 25

natural gas. In addition, it is critical to pro- intra-regional trade; and limited success in vide assistance for increasing CARICOM’s capitalizing on bilateral trade agreements. energy efficiency in commercial and indus- In addition, the small size of CARICOM trial sectors as well as its capacity to sup- economies limits not only their productive port implementation of renewable energy, capacity and their ability to achieve requi- energy efficiency, and natural gas options. site economies of scale, but also their in- Achieving these central Regional objectives ternal market. Not surprisingly, despite a would require several strategic interven- concerted effort to strengthen regional in- tions that would be supported by AfT re- tegration and reduce over-dependence on sources. These include: external markets, intra-regional trade still only accounts for an estimated 12 percent of total CARICOM trade, and the Region’s Regional Energy AfT Projects: exports are still limited to a narrow range „„Develop and implement a regional bio-energy of products and markets. strategy. Based on the World Bank 2011 Doing „„Complete an assessment of renewable energy Business survey,53 all countries in the Region resources in areas with potential for wind and solar energy. except three have fallen in the overall rank- „„Establish a mechanism for financing small and micro ings. The report ranks economies on their renewable energy and energy efficiency (EE) projects for MSMEs. ease of doing business from 1 to 183. A high „„Implement a harmonized approach or mechanism for ranking suggests that the regulatory envi- feeding renewable energy sources to grid. ronment is more conducive to starting-up „„Establish a regulatory framework to support cross- border trade in electricity and natural gas. and operating a firm. Red tape-related trade costs, which are both monetary and time- related, are generally higher in developing economies (See Table 5). National projects identified in Annex II The Region’s persistent inability to re- include development of the national regu- dress its supply side constraints, diversify its latory framework to govern the utilization exports, and significantly improve compet- of renewable and alternative energy sources itiveness at the firm, industry, and sectoral and assessment of renewable and alternative levels threatens the sustainable development energy potential. of its economies. This systemic problem

cannot be solved merely by negotiating addi- 53 The Doing Business Rank 3.2 Goal 2: Enhancing Competitiveness tional market access. Also urgently required is out of 183 economies. and Facilitating Trade Expansion A high rank on the ease is resources and development cooperation to of doing business index and Diversification assist the Region in (1) improving competi- signifies that the regulatory tiveness and productivity, (2) capitalizing on environment is more conducive to starting and CARICOM Member States share similar market opportunities, and (3) promoting operation a local firm. constraints to economic development and private sector development. Barbados and Montserrat are not included in the trade expansion including high transpor- The solutions set forth here target the report. Let us note that tation; energy and communication costs, root causes of the Region’s productive in- some Member States have which undermine competitiveness; geo- expressed reservations about efficiencies and lack of export competitive- some of the indicators as graphical fragmentation, which inhibits ness, which have thwarted policy efforts calculated by the World Bank. 26 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

Table 5/ Ease of Doing Business Trading Cost to export Cost to import Doing across Time to export (US$ per Time to (US$ per Rank and Other Country business rank borders (days) container) import (days) container) Selected Indicators (2010–2011) 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 Antigua and 56 64 58 63 15 15 1,133 1,133 15 15 1,633 1,633 Barbuda The Bahamas 71 77 41 45 16 19 930 930 13 13 1,380 1,380 Barbados … … … … … … … … … … … … Belize 93 99 118 119 21 21 1,710 1,710 21 21 1,870 1,870 Dominica 85 88 87 90 13 13 1,297 1,297 15 15 1,310 1,310 Grenada 98 92 82 57 14 10 1,226 876 19 15 2,479 2,129 Guyana 101 100 77 78 20 19 730 730 24 22 730 745 Haiti 163 162 145 145 35 35 1,005 1,005 33 33 1,545 1,545 Jamaica 79 81 105 104 21 21 1,750 1,750 22 22 1,420 1,420 Montserrat … … … … … … … … … … … … St. Kitts and Nevis 83 87 38 39 12 12 850 850 13 13 2,138 2,138 Saint Lucia 45 53 104 105 14 14 1,600 1,700 18 18 2,745 2,745 St. Vincent and 72 75 39 41 12 12 1,075 1,075 12 12 1,605 1,605 the Grenadines Suriname 160 161 102 101 25 25 975 995 25 25 885 945 Trinidad and 95 97 53 51 14 14 866 808 26 19 1,100 1,250 Tobago CARICOM 18 18 1,165 1,143 19 18 1,603 1,593 (Average)

Source: World Bank Doing Business reports for 2010 and 2011.

at fuelling trade development and limited integration both intra-regionally and into 54 Any measure, or set of measures, that aims to intra-regional trade. the global economy. increase the cost-effectiveness The ever increasing complexity, inten- or international trade Trade Facilitation sity, and volume of trade and trade-related transactions. In the broadest sense trade facilitation CARICOM countries can be character- transactions has made trade facilitation an removes obstacles to the ized as relatively open and trade depen- important lever for increasing adminis- movement of goods across borders. dent; most have openness indices in excess trative efficiency and reducing transaction 54 55 World Bank..Global of 100 percent. As such, trade facilitation, costs associated with the clearance of goods, Economic Prospects 2004. – customs efficiency, and logistics costs are and by extension attracting investment. Realizing the Development Promise of the Doha Agenda. important determinants of competitive- Moreover, there is a strong link between 2004. And World Bank.. ness and the Region’s trade performance. trade facilitation and economic develop- Development, Trade and the It is generally accepted within the Region ment that reflects the direct causal relation- WTO.. 2003. 56 Wilson, Mann, and Otsuki, that addressing these issues in a holistic ship between such measures and reduced Trade Facilitation and manner would considerably improve the logistics costs, and consequently, prices of Economic Development, business climate, enhance the Region’s com- 55 The World Bank Economic both imports and exports. Improvements Review. Vol.17, No.3 (2003). petitiveness, and facilitate a more seamless to trade facilitation also increase trade and Priorities for Action :: 27

income growth,56 thus fostering Small and necessary for achieving these two strategic Medium Enterprise development. outcomes: The relative low ranking of CARICOM Member States in the Doing Business survey indicates the Region’s comparative Regional Trade Facilitation AfT Projects: disadvantage relative to other countries „„Develop and implement inter-operability of national and regional blocs. The trade-impeding electronic single windows. „„Establish an electronic forum to facilitate knowledge effect of these costs is frequently greater transfer and information exchange among customs than the restrictive impact of traditional agencies. border barriers, such as import tariffs.57 In „„Develop and implement a regional work plan for preferred trader schemes (authorized economic the cross-border trading ranking, which operator). compiles procedural requirements for ex- „„Design and implement a goods in transit system (e.g., IDB TIM Programme) for cargo transported by sea. porting and importing a standardized cargo „„Harmonize national customs legislation. of goods by ocean transport, eight CAR- „„Prepare and implement harmonized Regional Single ICOM countries fell in the rankings. Gre- Administrative Document nada performed well, however, increasing its standing by 25 places.58 Annex II highlights complementary Logistics costs for Caribbean countries projects and activities at the national level, in- represent 20 percent of product costs, cluding conducting feasibility assessments for compared to a world average of 10 per- national single electronic windows, reviewing cent.59 These higher costs put Caribbean and harmonising laws and procedures, and countries at a disadvantage relative to other developing appropriate customs-related countries and regions in accessing markets. regulations. They have a major impact on trade, foreign investment, revenue earnings, and regional Sanitary and Phytosanitary Measures competitiveness in general. A major stra- As the importance of tariffs as an instrument tegic policy objective of CARICOM there- of trade policy has diminished, quality-related fore is to remove inefficiencies in the system, (non-tariff) measures have grown in impor- 57 tance. Today, the ability to satisfy standards Hoekman. Aid for Trade: build national and regional capacities, and Why, What and Where Are establish harmonised and common regula- and certify their attainment are now strong We,. 2010. tory frameworks. determinants of competitiveness and influ- 58 World Bank Doing Business Report 2011. http:// In view of the heightened importance ence export performance. This trend is due to doingbusiness.org. of trade to the economic development of increased concern over food safety, technical 59 Moreira M., Volpe, C., and individual CARICOM economies, it is im- regulations, and product standards, coupled Blyde, J. 2008. Unclogging the Arteries: The Impact of perative that the Region address its trade fa- with the fact that tariffs as a trade policy in- Transport Costs on Latin cilitation challenges and bottlenecks in line strument are increasingly becoming irrele- American and Caribbean vant, especially in key export markets. Within Trade. Inter-American with international best practice. Central Development Bank. here is increasing the efficiency and secu- the general category of technical barriers 60 Peter Van Den Bossche. rity of trade in goods and streamlining to trade, a peculiar set of non-tariff, border 2008. The Law and measures seeks to protect human, animal, or Policy of the World Trade customs procedures. The following are key Organization, Second Regional projects and activities which are plant life.60 These sanitary and phytosanitary Edition. Cambridge. 28 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

(SPS) measures are particularly relevant to that SPS measures impact all food related Caribbean economies since they have be- trade means that the benefits of any reme- come an integral part of agricultural trade, dial activities are expected to impact do- which still dominates the goods exports of mestic, intra-regional, and extra-regional many CARICOM Member States. Moreover, trade. the Region’s major traditional markets are Another issue of concern for CAR- utilising increasingly stringent SPS measures, ICOM is the increasing role of private stan- ostensibly to reduce food safety risks and/or dards. Certification for these standards can risks from pests and disease. be quite expensive, invariably beyond the The establishment of the necessary SPS capacity of SMEs to afford and maintain. infrastructure requires significant amounts This issue is engaging the attention of the of resources, invariably beyond the reach of Region’s SPS Committee due to concerns SVEs such as those in CARICOM. In this re- expressed over the negative impact that the gard, the ability of CARICOM countries to EurepGAP standards for pesticides on ba- meet the European Union’s General Food nanas is having on the Region’s exports. Law in regulation 178/02, the Feed and This underscores the need to enhance na- Food Regulation 882/04, and the new Food tional certification and testing capacity Safety Modernization Act (FSMA) of the US within a Regional framework. is causing much anxiety. Several project-based initiatives within CARICOM presently faces challenges the Region have sought to address the in its capacity to satisfy SPS requirements various SPS deficiencies. These include and use SPS measures as an instrument strengthening laboratory infrastructure for of trade policy. An assessment of the SPS CARICOM countries, developing a food capacity of the Region within the con- safety policy for the Region, and updating text of commitments assumed under the and harmonising animal and plant health CARIFORUM-EU EPA has identified var- and food safety legislation. ious SPS needs.61 The assessment concludes In addition, the Caribbean Agricultural that a considerable amount of work has al- Health and Food Safety Agency (CAHFSA) ready been done to improve the Region’s was launched on March 18, 2010 in SPS capacity, although several deficiencies Paramaribo, Suriname, to help address is- remain. sues with regard to institutional capacity at Among the deficiencies highlighted the regional level,. Its aim is to strengthen —not necessarily across all countries—are agricultural health and food safety and inadequate skills, technical staff, and of ap- ensure the highest standards for trade in propriate diagnostic tools; a lack of modern agricultural products. CAHFSA is tasked and harmonised legislation; inadequate sys- with developing technical measures and tems and procedures, including internal protocols to achieve SPS certification for or external auditing systems; inadequate agricultural trade and devise arrangements 61 In Chapter 7 of the CARIFORUM-EU EPA, the communication of SPS information; and to reduce the use of SPS measures as non- EC has committed to provide fragmented control among government tariff barriers. However, more needs to be assistance to CARIFORUM to overcome SPS deficiencies agencies. Though the assessment was spe- done to strengthen regional SPS capacity, in accessing the EU market. cific to the CARIFORUM-EU EPA, the fact including: Priorities for Action :: 29

a platform for increasing competitiveness, Regional Quality Infrastructure AfT productivity, and exports. sets out Projects: Annex I the major regional priorities areas to be pur- „„Build institutional capacity of CROSQ. „„Build regional quality infrastructure. sued, which include: „„Establish a program for knowledge transfer of good practices in testing, certification, accreditation, and metrology. Regional SPS AfT Projects: „„Build institutional capacity of CAHFSA, including training on monitoring implementation of national Annex II also summarizes key na- obligations under the WTO and FTAs. „„Build regional SPS infrastructure. tional priority areas needed for achieving „„Harmonize national SPS legislation. the Regional SPS AfT outcomes, including the establishment of national agriculture, health, and food safety agencies, training Complementary national AfT initia- plant protection and quarantine officers in tives include upgrading physical infrastruc- specialized areas, and investing in fumiga- ture for testing; procurement of equipment; tion and other key infrastructure. training for staff; and external auditing of laboratory facilities. National and Regional Quality Infrastructure National bureaus of standards (NBS) exist Services in all Member States and perform a combi- The services sector makes a key contribu- nation of functions, including developing tion to economic output and employment standards, testing and certification, me- in most developing countries - and particu- trology, market surveillance, and accredita- larly so in several CARICOM economies - as tion, all of which are essential elements of well as providing essential inputs and public national infrastructure aimed at ensuring services for the economy. International quality.62 However, the level of quality infra- trade in services can improve economic structure in the Region varies considerably. performance and provide a range of tradi- 63 The MDCs have well-developed national tional and new export opportunities, par- 62 NQI can be defined as a standards bodies and are working to im- ticularly if the existing capacity for carefully highly integrated network prove accreditation services. But in many managed private sector participation in sec- of people, systems, and organizations involved in smaller Member States, the national stan- tors that contribute to efficiency gains and the research, definition, dards bodies are very small and can only innovation is fully exploited. development, and promotion of quality goods, services, provide a limited number of services. At the While the Caribbean is regarded as and processes using the core regional level, in 2003, CARICOM estab- having a genuine comparative advantage disciplines of the metrology, standards, testing, and quality lished the Caribbean Regional Organisation in the area of services, the Region’s ex- (MTSQ) framework. for Standards and Quality (CROSQ) as an port base has remained relatively narrow, 63 The contribution of intergovernmental organisation. with tourism being the dominant services services to development: The role of regulation and trade Guided by the foregoing, an impor- sub-sector. liberalisation ODI Project tant development outcome of the Region is In fact, the Caribbean is regarded as Briefings 17, December 2008, Massimiliano Cali, Karen strengthening Regional quality infrastruc- the most tourism-dependent Region in Ellis and Dirk Willem te ture. Stronger infrastructure will provide the world, which makes it vulnerable to Velde. 30 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

Figure 6/ Trinidad y Tobago Direct and Indirect Suriname Contribution of Tourism St. Vincent & the Grenadines to GDP 2011 (%) St. Lucia St. Kitts and Nevis Jamaica Haiti Guyana Grenada Dominica Belize Barbados The Bahamas Antigua and Barbuda 0 20 40 60 80

Direct + Indirect Contribution to GDP Direct Contribution to GDP

Source: World Tourism and Travel Council (WTTC) database.

exogenous economic shocks, as witnessed main market for tourist arrivals, accounting by the impact of the economic and financial for 57 percent in 2011. Following were crisis that started in 2008. Consequently, de- Europe (18 per cent) and Canada (12 per velopment of the services sector as well as cent). There is therefore an urgent need for diversification of services exports, including diversification both in terms of production within the tourism sector, is seen as neces- and export base and export markets.65 sary to reposition CARICOM economies Offshore financial services are the within the global economy and multilateral second dominant services sub-sector for sev- trading system. eral OECS countries as well as The Bahamas Tourism provides much needed for- and Barbados. However, growth in this sub- eign exchange and contributes signifi- sector has been negatively impacted by the cantly to GDP and employment in several liberalization of the financial system in Member States, especially the OECS coun- OECD countries, the roll-out of more com- tries, The Bahamas, and Barbados. The di- prehensive international financial standards, rect and indirect contribution of travel and and OECD report on harmful tax practices. tourism to GDP in 2011 was 74 per cent in Accordingly, given the increasing eco- Antigua and Barbuda, 47 per cent in The nomic significance of the services sector Bahamas and Barbados, and 46 per cent in to Regional economies, key AfT initiatives Saint Lucia.64 Antigua and Barbuda also has should focus on expanding and diversifying the highest level of tourism-related employ- the Region’s production and export of ser- ment (69 per cent) in 2011. vices and 64 The World Tourism and increasing coherence in policy Travel Council’s Travel and In addition to the lack of diversification response to exogenous factors; strength- Tourism Economic Impact of the Region’s services exports base, there is ening transparency in financial services for 2011. 65 Caribbean Tourism also a concentration of exports in a few mar- regulations; and ensuring market access in Organization statistics, 2010. kets. With respect to tourism, the US is the professional services sectors. Interventions Priorities for Action :: 31

that seek to achieve these project outcomes seek to build the productive capacity of the are set out in Annex I as follows: private sector, expand and diversify exports, raise the quality of goods and services pro- duced, and optimise employment, foreign Regional Services Aft Projects: exchange earnings, and revenue generation. „„Develop production and export capacity in In this respect, while AfT interventions in the 24 industries identified in the Regional the areas of customs, trade facilitation, and Development Strategy for the Services Sector in quality infrastructure are expected to help CARICOM. „„Implement major projects emanating from the increase efficiency and reduce costs, more Regional Development Strategy and Action Plan for direct support is also required for strength- the Cultural Industries in CARICOM. „„Establish a mechanism for services data collection, ening productivity, increasing output, and compilation, analysis and dissemination. enhancing private sector competitiveness. „„Build capacity of a national and regional coalition of Such an approach would ensure optimisa- services industries. „„Implement the CARICOM Financial Services tion of market penetration and the bene- Agreement, including drafting model legislation. fits resulting from increased market access „„Support negotiation on intra- and extra-regional mutual recognition agreements for professional opportunities. services. Accordingly, the leading private sector development-related AfT outcomes of the Region are to strengthen the production and At the national level, the leading ca- export capacity of the private sector, reduce pacity building activity has been identi- the cost of raw materials, strengthen insti- fied as strengthening services associations tutional capacity of business support organ- to participate in mutual recognition agree- isations, improve integration of SMEs into ment negotiations. policy and legislative frameworks, and en- hance productive and competitive capacity Private Sector Development of businesses to expand trade. Projects con- The private sector in developing countries tained in Annex I to achieve these outcomes plays an important role in achieving sus- include the following: tained economic growth and poverty reduc- tion. If harnessed and developed properly, the private sector can help to provide basic services such as infrastructure as well as in- Regional Private Sector Development AfT vestment and innovation, therefore max- Projects: imising output growth and economic „„Establish mechanisms for investment in innovative development. However, Caribbean busi- productive activities. „„Establish a trade financing mechanism for pre and nesses face many barriers that impede in- post shipment support. vestment, expansion, job creation, and, in „„Build institutional capacity of BSOs. the end, sustainable growth. „„Establish a framework for joint procurement of raw materials for SMEs. Accordingly, a robust private sector is „„Design and implement a roadmap for the regarded as essential for the Region’s sus- development of a cluster mapping initiative on agro-tourism linkage; agro-processing; food and tainable economic growth and development. beverages; and creative industries. The strategy envisions interventions that 32 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

Annex II contains activities that would increasing market size, and facilitating the facilitate private sector development at the participation of individual Member States national level in support of Regional proj- in the global economies. ects that were proposed during the consul- The OECS has also embarked on a re- tations. These include establishing national gional integration process. The principal BSOs, strengthening market intelligence, in- objective of the OECS Economic Union is to dustry cluster development, and the estab- establish closer economic relations among lishment of frameworks for the formation Protocol Member States. The union, once of export/trade financing enterprises. completed, will be a unique construct, one that deepens the integration of the OECS 3.3 Goal 3: Deepening Regional Member States while complimenting in- Integration and Maximizing Gains tegration initiatives at the wider regional from External Trade Agreements level. All OECS members participating in this strategy are members of the Eastern A key goal of the Region’s Aid for Trade Caribbean Currency Union (ECCU).68 Strategy is to deepen regional integration However, there are challenges to full and maximise gains from external trade implementation. Financial and technical agreements. Accordingly, AfT projects and resources are urgently needed to assist in related activities required for achieving this moving the OECS sub-regional integration goal focus on strengthening regional in- process. Essential starting points include the tegration and the capacity of regional in- following: stitutions, increasing transparency and reliability of AfT flows, increasing negoti- ation and implementation of trade agree- OECS Sub-Regional AfT Projects: ments, and increasing knowledge of the „„Strengthening the regulatory framework to support impact of trade liberalization. the OECS Economic Union. „„Implementing treaty provisions for creating the intended single financial and economic space. 66 Regional Integration „„Creating inter-sectoral linkages, optimizing resource The policy orientation of CARICOM re- use, and increasing the Sub-Region’s competiveness. 66 „„Instituting the related legislative framework. It is noteworthy that the gional integration reflects the new re- outcomes, activities and/ „„Offsetting adjustment costs associated with or projects described under gionalism process, which emphasizes the implementation of this accelerated integration Goals 1 and 2 will contribute reduction of trade barriers resulting from process. to the implementation of the CSME and strengthening the implementation of GATT commit- regional integration. Hence ments and engagement in several bilat- the CSME itself as a discrete eral trade agreements, openness to foreign External Trade Agreements area for AfT support is only dealt with in a somewhat investment, and privatization.67 The cre- The Region understands the importance generic way under the ation of the CARICOM Single Market and of an integrated approach to AfT resource Regional Integration sub-section of the strategy. Economy optimises development and wel- mobilisation. Specific direction has been 67 Rivera-Batiz and Oliva, fare gains for the Region as well as over- provided for improving economic infra- International Trade, Oxford, comes the challenges presented by the small structure, enhancing competitiveness, 2003. 68 Anguilla is also a member size and fragmented nature of many CAR- facilitating trade expansion and diversifi- of the ECCU. ICOM countries through pooling resources, cation. However, also central to CARICOM Priorities for Action :: 33

CARICOM economies have not estab- Regional Integration (CSME) AfT Projects: lished themselves as competitive suppliers „„Provide support for the consolidation of the CSM and for the establishment of the framework of the CSE. of a wide range of goods and services. Once „„Provide support for the full integration of the LDCs more, the Region has been consistently out- into the CSME. paced by many other hemispheric part- „„Build institutional capacity of the CARICOM Secretariat to implement and monitor national ners in productivity, competitiveness, and implementation of the CSME. innovation. „„Design and implement a mechanism to collect and Trade liberalisation, which is rooted in monitor AfT flow. the progressive removal of tariffs, reduces government revenue collected in the form of border taxes. For some CARICOM coun- is support needed to bridge the compli- tries, international trade taxes accounted for ance and commitment gap with respect to more than 30 percent of government rev- multilateral and bilateral trade agreements. enue. Tariff revenue reduction, however, Negotiating new trade agreements and im- represents only one of the internal, import- plementing commitments under existing related dimensions of trade liberalisation trade agreements requires legislative, policy, due to increased international competi- and institutional changes, which in turn de- tion in domestic markets. Others include pends upon additional financial resources the closure of production facilities and the and technical support. resulting losses of jobs. The external di- Instituting trade agreements and main- mension of the adjustment-related costs streaming trade-related policies are necessary is dominated by the erosion of preferences precursors for achieving growth in produc- and reductions in subsidies to critical food tion and exports, To this end the Region has imports. For a number of years, CARICOM concluded a series of trade arrangements with Member States have also witnessed de- the EU, Venezuela, the Dominican Republic, clining preferential margins in their major Colombia, Cuba, and Costa Rica. It also ben- export markets for key products such as ba- efits from preferential agreements with the nanas, sugar, textiles, and apparel. US (CBI, CBPTA and CBERA) and Canada Special trade preferences have been an (CARIBCAN). As a consequence, a signifi- important source of economic rents and cant proportion of the Region’s exports are guaranteed market access for specific prod- accorded duty-free access into the markets ucts. But they have not played a crucial role of its major trading partners, including stra- that was originally envisaged in growing the tegic Western Hemispheric countries. Region’s export potential nor in supporting However, these bilateral trade arrange- the Region’s determined efforts at economic ments have not yielded the intended broad- transformation and overcoming disecono- based expansion in exports, with utilisation mies of scale in production. Additionally, rates among many CARICOM countries re- the economic costs of preference erosion maining relatively small. Moreover, in the and the dismantling of long- standing pref- face of considerable efforts to foster pri- erential arrangements have further exacer- vate sector development, significant pri- bated the situation by reversing the limited vate sector investment, and FDI inflows, economic benefits obtained. 34 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

Further, most CARICOM countries Early Harvest from the Region’s Aid for are net-food importing countries and con- Trade Strategy sequently are affected by reductions or the The mere crafting of an Aid for Trade elimination of export subsidies on key im- Strategy and engaging international de- ports in exporting countries. velopment partners in implementing the A common theme emerging from the strategy would not be enough to guarantee national consultations has been the need a deluge of financial, technical, and techno- for a comprehensive approach to addressing logical resources in support of the strategy’s trade adjustment in the Region. While it has three AfT goals, and would therefore fall been recognised that identifying and quan- short in transforming the production, ex- tifying of the scope of the Region’s adjust- port, and trade performance of CARICOM ment costs would be a difficult undertaking, and its individual Member States. The certain key elements, such as support for di- Region must package its most pressing versification, fiscal reform, and labour force trade-related capacity building needs into retraining, were highlighted as appropriate five relatively large, bankable and imple- points of departure. mentable projects that can immediately en- As for regional integration and external gage the attention of IDPs. All other regional trade agreements, the major AfT outcomes and national AfT priorities remain valid; at the Regional level emerging from the con- these smaller, discrete projects and activities sultations have been increased negotiation can attract the interest of a range of donors, and implementation of trade agreements IDPs, the private sector, and investors. and increased knowledge of the impact of The approach outlined above would trade liberalisation. The major Regional have to be preceded by a clear definition of projects and activities, as contained in the factors that have bedevilled the Region’s Annex I, include: trade performance, retarded efforts at ex- port diversification, and resulted in slug- gish economic performance. In this regard, External Trade Agreements AFT Projects: the analysis suggests that the Region’s ef- „„Complete a study of the fiscal impact of tariff forts to carve out a trade-led economic liberalization under CARICOM bilateral and plurilateral growth path have been beset by poor eco- trade agreements. „„Build institutional capacity of OTN in trade nomic infrastructure, low and declining negotiations. competitiveness, weak institutions, frag- „„Build institutional capacity of the CARICOM mented production systems and limited Secretariat, including management and monitoring of national implementation of trade agreements. productive capacity. A regional integration movement has emerged that is largely de- fined by an average growth rate of 2 per- The major area of intervention at the cent (2001–2010); marginal (13 percent) national level for achieving Regional out- intra-regional trade; a narrow export base; comes is the formulation of an action plan a weak manufacturing sector; and extra- for retooling the labour force and restruc- regional trade dominated by preferential turing production in response to trade markets, and the declining use of bilateral agreements. trade agreements. Priorities for Action :: 35

Critical first steps towards remedying Further, during the national consulta- this situation would be a substantial increase tions, Member States highlighted the critical in intra-regional trade and utilising existing need to ensure the availability of affordable bilateral trade agreements. Taking these ac- modern energy services by creating a new tions would require that the Region enhance energy portfolio mix of renewable, bio-en- its comparative advantage in diverse prod- ergy, and fossil fuels; and to increase private ucts and strengthen trade complementarity sector production and export competitive- among individual CARICOM countries and ness. Research has shown that the Region’s with the Region’s major trading partners. intra- and extra-regional trade has largely AfT can support these objectives. Moreover, been driven by a combination of transport given that the continued deteriorating cost and cost differential between countries. fiscal performance of many CARICOM In light of the above, it is not surprising Member States constrains their ability to that the five major AfT projects that the establish the necessary economic infra- Region believes are ripe for early harvest structure, CARICOM ministers meeting would capitalize on the geographical prox- in Guyana on 14–15 May 2009, and Heads imity of CARICOM countries to many of its of Government at their annual meeting in bilateral trading partners and to increase the Jamaica on 4–6 July 2010, saw the develop- productivity as well as export competitive- ment of a Regional Aid for Trade Strategy ness of its private sector. The essential ele- as a critical policy step. They added further ments of these five key projects, which are in clarity by highlighting maritime transport the areas of maritime transport, ICT, energy and ICT as two potentially transformational and private sector development, are sum- areas for AfT intervention. marized in Table 6 below:

Table 6/ Outcomes Projects/Activities Type of Assistance Five Aid for Trade 1. Maritime Transport Projects for Early 1.1 Improved efficiency Modernisation of Caribbean Freight Logistics, Maritime Transport „„Infrastructure investment Harvest and reduced cost of and Trade Facilitation „„Advisory services maritime transport „„Upgrade Caribbean port infrastructure and services. „„Workshops for developing „„Establish innovative maritime transport networks. policy consensus „„Implement customs and trade facilitation reforms. 1.2 Modernisation of Maritime Cargo and Passenger Services in the „„Technical and financing OECS advisory services „„Establish a fast ferry service in the Southern Caribbean. „„Legal drafting „„Develop a common shipping policy „„PPP investment „„Modernise the small vessel fleet. „„Web development 2. Information and Communication Technologies 2.1 Increased competition Caribbean Broadband Transformation Strategy „„Technical advisory in delivery of „„Complete GAP analysis between quality of telecom infrastructure services expertise broadband services (including infrastructure of other utilities capable of providing „„ICT software investment to promote increased broadband services) and demand. „„Legal advisory services access „„Seed investment (continued on next page) 36 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

Table 5/ Five Aid for Trade Outcomes Projects/Activities Type of Assistance Projects for Early 2. Information and Communication Technologies Harvest 2.1 „„Review the regulatory framework on spectrum management. (continued) „„Create a single ICT space. „„Develop a broadband strategy. „„Create roadmap to address analog switchover. „„Strengthen regional public good (CKLN/C@ribNET). „„Detail mechanism/framework for PPPs in the telecom sector. „„Collect and analyse data on broadband usage and uptake 3. Energy 3.1 Accelerated Caribbean renewable and alternative energy Roadmap „„Technical and legal development and use „„Develop and implement a regional bio-energy strategy. advisory services of renewable and „„Complete an assessment of renewable energy resources in areas „„Financing alternative energy of wind and solar energy to provide high quality information to sources potential RE investors. „„Develop and implement a strategy for promoting solar cooling technology inclusive of demonstration installation, given the potential to reduce energy cost of buildings. „„Establish a mechanism for financing f small and micro renewable energy and energy efficiency projects for MSMEs based on pilot and subsequent replication across the community. 8. Private Sector Development 8.1 Strengthened Private Sector innovation in the Caribbean „„Technical advisory production and export „„Promote investment in productive activities. services capacity of the private „„Establish a mechanism for promoting and financing private sector „„Private-public sector innovation. partnerships „„Establish a trade financing mechanism for pre and post shipment „„FDI and joint ventures support. 4 Mainstreaming

ainstreaming trade into national and international cooperation levels, both re- regional development strategies re- gionally and nationally. Mquires the systematic cultivation of mutually reinforcing policies cutting across The policy level: Once the strategy is government departments, agencies and launched, it will be placed as a standing countries, as well as the private sector and agenda item of at meetings of the CARICOM the donor community so as to create syner- Council for Trade and Economic gies in support of development goals. Development (COTED). This will ensure Trade plays a central role in the eco- that the strategy’s priorities, strategies, nomic development of all CARICOM and initiatives are consistently considered Member States, improving standards of and incorporated where necessary when living, generating employment, earning CARICOM ministers with responsibility foreign exchange, and raising domestic in- for trade contemplate policy formulation comes. Hence, policy initiatives that seek and make trade-related decisions. to improve the Region’s trade performance have increasingly been mainstreamed into The national level: Member States will be the Community’s development planning. expected to mainstream the strategy and its Integrating the Caribbean Community goals into their own national development Regional Aid for Trade Strategy into the strategies and policies. This process will be strategic planning and policy-making pro- monitored at the level of the COTED. cesses is a key tool for leveraging economic development. Efforts will be centred on in- The institutional level: Implementation, fusing the Strategy, and the trade expansion monitoring, and evaluation of the strategy it has the potential to deliver, into policy would be integrated into the annual work prescriptions geared at addressing national programme of the relevant areas of the challenges such as poverty eradication, Secretariat. This would be augmented by gender equity, and employment generation. meetings of the CARICOM and OECS secre- Ultimately, however, success requires main- tariats and Caribbean Export Development streaming at the policy, institutional, and Agency, which are the entities responsible

37 38 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

for tracking implementation of the strategy development partners (IDPs) as a funda- at the regional, sub-regional, and private mental element of the Region’s development sector levels. The Secretariat would be a key policy that highlights the priority areas of driver of any adjustments to the strategy the Community’s focus for expanding and that would be required in light of changing diversifying its exports. The nature of this circumstances. These adjustments would be marketing, however, needs to be structured submitted by the Secretariat to the COTED pragmatically and carried out within the for endorsement. framework of the Caribbean Community’s At the national level, EPA Implemen- external trade, development cooperation, tation Units, or those units assigned the re- and foreign policies and/or relations. An sponsibility for managing implementation of important instrument for engaging in di- bilateral trade agreements, are mechanisms alogue on the strategy will be the Region’s by which the strategy will be integrated in summits with third States and groups of the fabric of government institutions. In a countries that are held in conjunction with few cases, the responsibility will be assumed the agreements signed between these en- by ministries of trade or by policy develop- tities and the Community. Such summits ment committees comprised of representa- may not be held annually, but may be bien- tives of the public and private sectors, civil nial, triennial, or at a time that is mutually society, academia, and business support or- agreeable to both sides. The Region should ganizations (BSOs). In all cases, an AfT focal also seek to revise the CARICOM Regional point will ensure engagement with the Secre- Resource Mobilization Strategy to incorpo- tariat to ensure that they utilize the strategy rate AfT resource mobilization as an essen- in domestic policy formulation, when inter- tial element of that strategy. facing with development partners, and in de- At the national level, priorities and pro- veloping capacity-building project proposals. grammes in the strategy, which are both re- gional and national, must be integrated into The international cooperation level: The the existing dialogue on programming be- Strategy should be branded and actively tween governments and their development marketed and promoted to all international partners. Implementation of 5 the Strategy

fter validation and finalisation by se- institutions that would be responsible for nior trade officials of the Caribbean managing the strategy’s implementation. ACommunity and endorsement and adoption by the COTED and the Conference Project and Activity Level: At the pro- of Heads of Government, the Regional Aid gramme and project level, implementa- for Trade Strategy will be presented at a tion of the CARICOM Regional Aid for formal public launch. The launch will be Trade Strategy will require the involve- under the auspices of the chairman of the ment of regional and national institutions Conference of Heads of Government or the coordinated by the CARICOM Secretariat. chairperson of the Prime Ministerial Sub- The Secretariat, in collaboration with the Committee on External Negotiations. The OECS Secretariat and the Caribbean event will be targeted at international devel- Export Development Agency (CEDA), opment partners and international financial which would be the primary interlocutor institutions committed to AfT. A high pro- with the private sector, would be respon- file roll-out of the strategy will set the stage sible for implementing the strategy. This ap- for its implementation and involve critical proach t would require the identification of stakeholders. focal points/operations managers in each Implementation of the Strategy will of the three institutions. The tripartite ap- be at both policy and programme/project proach to managing implementation of the levels, regionally and nationally. Regional Aid for Trade Strategy would allow these institutions to share the responsibility Policy Level: The COTED will have over- for implementation of what is anticipated sight and be responsible for providing to be several potentially complex projects. policy guidance for implementation of the The arrangement would also enhance trans- projects that materialise from the Regional parency/information sharing with relevant Aid for Trade Strategy. The COTED will re- constituents regarding projects and pro- ceive semi-annual reports from the regional grammes resulting from the strategy.

39 40 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

Given their respective areas of focus, re- expected to work closely to ensure a coor- sponsibilities for transmitting and receiving dinated approach to AfT resource mobili- information related to AfT projects and sation. The technical resources of the three programmes could be assigned as follows: institutions may require strengthening to enable them to take on these additional re- :: CARICOM Secretariat: Non- sponsibilities. At the global level, AfT is in- OECS Member States and units in creasingly channelled through development the Secretariat that relate to specific financial intermediaries. In the Region, the projects and programmes. Caribbean Development Bank (CDB) is al- :: OECS Secretariat: – OECS Member ready fulfilling this role for AfT support States. provided by the Department for Interna- :: CEDA: Private sector. tional Development (DfID). Given that projects emanating from the Regional Aid The three institutions would be respon- for Trade Strategy will be financed by a mix sible for the following: of grants and loans, it is critical that there be a role for the CDB in implementing the :: Supporting the development of Strategy. It is envisaged that the CDB will be projects consistent with the priori- an integral part of the resource mobiliza- ties identified in the regional action tion effort, where it will serve as a financial matrix and identifying matching intermediary to attract and manage AfT re- AfT resources. sources, particularly since more than 50 per :: Identifying the appropriate tech- cent of such global resources are in the form nical assistance resources. of loans. The CDB will also be a strategic :: Submitting projects to potential partner of Member States and Regional in- funding sources and negotiating for stitutions in the technical design, imple- the required support. mentation, and monitoring of AfT projects :: Maintaining and sharing informa- and programmes. tion that tracks the development of The major transformational Regional projects being implemented. projects resulting from the strategy will re- :: Reviewing the strategy and recom- quire design skills not readily available in mending adjustments in light of any of the Regional institutions that will be changing circumstances. involved in implementation. Hence, it may :: Receiving progress reports from be necessary to acquire the requisite skill-set relevant regional and national exe- needed for project design as well as to estab- cuting agencies to facilitate prepara- lish a formal mechanism to develop project tion of a consolidated annual report ideas outlined in Annexes I-III into actual to the COTED. project proposals. While coordination of the strategy’s The Resource Mobilisation and Tech- implementation would be the responsibility nical Assistance Programme of the CAR- of the regional institutions, the fact that ICOM Secretariat and its counterparts in AfT support will result from the strategy, the OECS Secretariat and CEDA would be and that the projects and programmes will Implementation of the Strategy :: 41

impact the Member States, requires the es- well as agencies at the national level, should tablishment of appropriate in-country ensure that all relevant stakeholders are in- mechanisms. One of the recommendations volved in the projects and programmes ben- of the WTO Task Force on Aid for Trade efitting from AfT support. is the establishment of national AfT com- The success of the strategy will be de- mittees to facilitate mainstreaming trade termined in part by improved dialogue with in national development strategies and to development partners and the extent to implement and evaluate AfT programmes which resources are mobilised. In this re- and projects. All CARICOM Member States gard, AfT mobilisation should become a have indicated that mechanisms are in place standing item on the agenda of the meeting to facilitate implementation of AfT projects, of the regional Consultative Committee on but need support to improve the efficiency resource mobilisation and on the agenda of of these mechanisms. the meeting on Aid Effectiveness and Donor The adoption and implementation of Coordination between CARICOM and in- a Regional Aid for Trade Strategy will make ternational development partners. Inclusion it critical to achieve coherence between na- on the agendas of these meetings would fa- tional and regional AfT goals, activities, and cilitate periodic reviews of the status of the projects. The private sector and civil society implementation of the strategy and suc- are equally important to the success of the cess in mobilising resources. In addition to strategy, and their participation in the im- these meetings, the Regional Aid for Trade plementation of projects should be facili- Strategy should be formally reviewed every tated. The three coordinating institutions, as three years.

Monitoring and 6 Evaluation

uccessful implementation of the should designate focal points, preferably Regional Aid for Trade Strategy re- within existing monitoring and evaluation Squires a robust monitoring and evalu- units, and strengthen them as required. Use ation framework at the both the policy and of focal points will facilitate rigorous mon- project levels. itoring and evaluation of the Regional Aid for Trade Strategy and enable these activities Policy level: The Community Council, to be fully incorporated in the work pro- the second highest organ of the Caribbean grammes of the respective institutions. Community, will receive and review moni- Given their areas of focus, responsibili- toring and evaluation reports on implemen- ties for monitoring and evaluating AfT proj- tation of the Regional Aid for Trade Strategy. ects and programmes could be assigned as The involvement of the council in this as- follows: pect will assure international development partners that the Community has accorded :: CARICOM Secretariat: Regional the highest priority to monitoring and eval- Projects as they relate to non-OECS uating the projects and programmes bene- Member States. fitting from AfT resources. Involvement of :: OECS Secretariat: Regional and the Community Council is all the more de- sub-regional projects as they relate sirable given the heightened focus by the in- to OECS Member States. ternational community on aid effectiveness. :: CEDA: Projects involving the pri- vate sector. Project level: As with implementation, the tripartite approach should also be taken to Monitoring and evaluating the Regional monitoring and evaluation. The CARICOM Aid for Trade Strategy will use existing and OECS secretariats as well as the CEDA mechanisms in the coordinating institu- should collaborate in monitoring and eval- tions. Reports produced by this process will uating projects and programmes benefitting be subject to review and approval by the from AfT resources. Each of the institutions Community Council.

43 44 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

The Caribbean Community Regional Aid the IDB Regional Policy Dialogue mechanism for Trade Strategy should be updated as new to facilitate public sector views on the out- priorities emerge and additional mandates comes, impacts, and activities of the Regional are provided by Heads of Government or the Aid for Trade Strategy. COTED. Consequently, monitoring the im- Annex IV presents a logical framework plementation of the strategy and the impact of that includes performance indicators and the strategic interventions contained therein sources of information for monitoring the should be continuous in order to gauge the implementation of the Region’s five trans- realisation of objectives and continued rele- formational AfT projects. Logical frame- vance of the elements of the strategy and re- works will be formulated once proposals lated programmes and projects. In addition, have been prepared for individual project the Region, in collaboration with the Inter- activities according to each development American Development Bank, will seek to use partner’s requirements and processes. Annexes

45 46 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat Haiti 2.2 Haiti 1.2 OECS 1.2 OECS 2.2 Belize 2.2 Guyana 2.2 Jamaica 2.2 Barbados 2.2 Suriname 1.2 Suriname 2.2 Suriname 1.2 All Countries 1.1 L ink to N ational 1.2, 1.3, 1.4 1.3, OECS 1.2,

Projects ( A nnex II ) (continued on next page) 2.2 Tobago & Trinidad Infrastructure investment Advisory services for developing Workshops policy consensus and financing Technical advisory services Legal drafting PPP investment development Web advisory Technical services Infrastructure investment advisory Technical services expertise ICT software investment Legal advisory services Seed investment „ „ „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance T „ „ „ „ „ „ „ „ „ „ „ „ „ Upgrade Caribbean port infrastructure and services. Establish innovative maritime transport networks. Implement customs and trade facilitation reforms. Establish a fast ferry service in the Southern Caribbean Develop a common shipping policy. Modernise the small vessel fleet. Develop and implement a cohesive regional maritime safety and security strategy for small vessel operation within CARICOM Member States (including infrastructure of other utilities Complete GAP analysis between quality of telecom infrastructure, capable of providing broadband services) and demand. Review the regulatory framework on spectrum management. Create a single ICT space. Develop a broadband strategy. Create roadmap to address analog switchover. Strengthen regional public good (CKLN/C@ribNET.) Detail mechanism/framework for PPPs in the telecom sector. Collect and analyse data on broadband usage and uptake. „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ Caribbean Broadband Transformation Strategy Transformation Caribbean Broadband Projects/ A ctivities Modernisation and Passenger Services of Maritime Cargo in the OECS Modernisation of Caribbean Freight Logistics, Maritime Transport and Trade Facilitation Trade and Transport Maritime Modernisation Logistics, of Caribbean Freight „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ Information and Communication Technologies Information and Communication Increased competition in delivery of broadband services to promote increased access O utcomes Improved maritime safety and security Maritime Transport Improved efficiency and reduced cost of maritime transport 2. 2.1 1.3 1.2 1. 1.1 A NN E X I / Matrix Caricom Regional Aid for Trade Trade interventions resulting from broad consensus of across the region. Aid for the reader will find regional Annex, In this Annex II. The last column refers to national project numbers found in Key Economic Infrastructure Upgrading Goal 1: Annexes :: 47 All Countries 2.1 L ink to N ational

Projects ( A nnex II ) (continued on next page) Technical advisory Technical services Financing advisory Technical services ICT hardware and software investment Legal advisory services Capacity building in business process re- engineering and records, and information, knowledge managements advisory Technical services in portal development and management services Legal advisory services development Web Seed investment advisory Technical services ICT software investment Advisory services advisory Technical services in communication and marketing Financing „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance T „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ )

continued Legislative framework (additional to HIPCAR project). Mechanism for common ICT procurement. Use of free and open-source software (FOSS) in/by governments. Policy development for rationalisation for the use of FOSS and proprietary software. Introduction of a regionally recognised and accepted unique personal identity number (U/PIN) for CARICOM citizens. Development of a new/ rolling five- to ten-year strategy. „ „ „ „ „ „ Test for interoperability and business continuity based on existing hardware software infrastructure. Test program management). Develop a common regional framework (incl. and policies for all regional institutions. compliance, Develop information standards, Develop a Regional E-government (service delivery) portal. Review existing regional and national e-governance mechanisms. Design and implement two regional pilot-projects on health and civil registries. Develop and implement a monitoring evaluation mechanism for 5–20 years. Develop and implement a marketing programme – all media (national and regional) to ensure buy-in and successful implementation. „ „ „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ O utcomes Strengthened regional and national E-governance mechanisms 2.3 2.4 2.5 2.6 2.7 2.2 ANNEX I/ Matrix ( Caricom Regional Aid for Trade Key Economic Infrastructure Upgrading Goal 1: 48 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat Haiti 2.3 Haiti 3.1 OECS 2.3 OECS 3.1 Belize 2.3 Belize 3.1 Guyana 2.3 Guyana 3.1 Jamaica 2.3 Jamaica 3.1 Bahamas 2.2 Barbados 2.3 Barbados 3.1 Suriname 2.3 L ink to N ational

Projects ( A nnex II ) (continued on next page) 2.3 Tobago & Trinidad Technical advisory Technical services Infrastructure investment activities for Awareness the general public on E-opportunities Legal advisory services for finance and banking industry Regional dialogue development Web and legal Technical advisory services Financing and advisory Technical assistance „ „ „ „ „ „ „ „ „ ype of A ssistance T „ „ „ „ „ „ „ „ „ )

continued Formulation of regional E-commerce strategy with components as articulated in related strategies and including: including post offices (nationally and of institution for management of E-commerce activities, Type(s) regionally). Mobile user activity (citizens). Mobile applications (financial institutions). software). Develop regional pilot projects on E/M commerce (hardware, „ „ „ „ „ Map all E-commerce and M-commerce strategies, identify key sectors for potential development, and identify key sectors for potential development, Map all E-commerce and M-commerce strategies, mobilize the relevant investment. Develop and commission an E-commerce portal (as part of the E-Government portal) Develop and implement a regional bio-energy strategy. Complete an assessment of renewable energy resources in areas of wind and solar energy to provide high quality information to potential RE investors. Develop and implement a strategy for promoting solar cooling technology inclusive of demonstration given its potential to reduce energy cost of buildings. installation, Establish a mechanism for financing small and micro renewable energy and energy efficiency projects for MSMEs based on pilot and subsequent replication across the Community. Conduct study assessment of impact energy cost as an input to production of goods for exports from CARICOM countries with special reference to natural gas and its relative competitiveness as a fuel source. „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities Caribbean Renewable and Alternative Roadmap Energy and Caribbean Renewable „ „ „ „ „ „ „ O utcomes Energy Accelerated development and use of renewable and alternative energy sources Clarification of issues related to relative competitiveness of natural gas as a fuel source in the context of regional energy policy Enabled environment for conducting business electronically 3. 3.1 3.2 2.8 A NN E X I / Matrix ( Caricom Regional Aid for Trade Key Economic Infrastructure Upgrading Goal 1: Annexes :: 49 Haiti 4.1 OECS 4.1 Belize 4.1 Guyana 4.1 Jamaica 4.1 L ink to N ational L ink to N ational Projects ( A nnex II )

Projects ( A nnex II ) (continued on next page) Legal advisory services Legal advisory services Financial advisory services Financing advisory Technical services Regional dialogues Technical advisory services Technical Financing Regional dialogues advisory services Technical ICT investment Regional dialogues „ „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance ype of A ssistance T „ „ „ „ „ „ T „ „ „ „ „ „ )

continued Implement harmonized approach or mechanism for feeding renewable energy sources to grid. Establish a regulatory framework to support cross-border trade in electricity and natural gas. Establish an innovative financing mechanism (such as Super Energy Service Company Model) to provide turn-key EE and RE solutions to business establishment. and labelling for electrical energy efficient standards, Establish regional energy efficiency building code, equipment. of national electronic single windows. Develop and implement a strategy for inter-operability Facilitate dialogue and information exchange between national customs administrations. Establish an electronic forum to facilitate knowledge transfer and information exchange between customs agencies outside of the CARICOM Region particularly South-South cooperation. „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ Projects/ A ctivities O utcomes Increased energy efficiency in the business/commercial and industrial sectors processes (equipment, and building systems) Strengthened legislative and regulatory framework to support lower cost energy (RE and Natural Gas) Streamlined customs processes Trade Facilitation Trade Increased efficiency and security of trade in goods O utcomes 4.2 3.4 3.5 3.6 3.3 4. 4.1 ANNEX I/ Matrix ( Caricom Regional Aid for Trade Key Economic Infrastructure Upgrading Goal 1: Expansion and Diversification Trade Enhancing Competitiveness and Facilitating Goal 2: 50 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat Haiti 4.2 OECS 4.2 Belize 4.2 Jamaica 4.2 All Countries 5.1 L ink to N ational

Projects ( A nnex II ) (continued on next page) Technical advisory services Technical Workshops advisory services Technical Seed investment Regional dialogues Legal drafting advisory services Technical Regional dialogues Training Workshops Training surveys Data collection, development Web Legal drafting Infrastructure investment Training Infrastructure investment Workshops „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance T „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ )

continued Develop and implement a regional work plan for preferred trader schemes (Authorized Economic Operator). TIM program] for cargo transported by sea. IDB Design and implement a goods in transit system [e.g., Harmonise national customs legislation. Prepare and implement harmonized regional single administrative document. and customs) for senior strategic planning, Provide specialized training programmes (management, officials and customs officers. including training on monitoring implementation of national Build institutional capacity of CAHFSA, obligations under FTA. Create a regional database and website for pests in the Caribbean. Harmonise national SPS legislation. Build Regional SPS Infrastructure. Build institutional capacity for CROSQ. Build regional quality infrastructure. and accreditation, certification, Establish a program for knowledge transfer of good practices in testing, metrology „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities Sanitary and Phytosanitary Measures Strengthened regional SPS capacity Increased cooperation of national SPS infrastructure Quality Infrastructure Strengthened regional quality Infrastructure O utcomes 4.6 5.2 4.5 4.7 5. 5.1 5.3 6. 6.1 6.2 4.4 4.3 ANNEX I/ Matrix ( Caricom Regional Aid for Trade Expansion and Diversification Trade Enhancing Competitiveness and Facilitating Goal 2: Annexes :: 51 OECS 7.1 OECS 7.2 L ink to N ational

Projects ( A nnex II ) (continued on next page) Workshops Legal drafting and advocacy Training support Support for consultations and advisory Technical services and advisory Technical services Legal drafting services Financing and advisory Technical services Financing Financing Training Workshops „ „ „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance T „ „ „ „ „ „ „ „ „ „ „ „ „ )

continued Develop and implement a Regional public-private sector financing mechanism for cultural industries. Develop model legislation for cultural industry development acts. Conduct country mapping and data collection studies to assess the contribution of cultural industries to regional economies. „ „ „ Generate a coordinated response to adverse regulations affecting the tourism sector. including drafting model legislation. Agreement, Implement the CARICOM Financial Services Support the negotiation of intra- and extra-regional mutual recognition agreements for professional services. Develop production and export capacity of the 24 industries identified in Regional Development Strategy for the services sector of CARICOM. Action Plan for the Implement major projects emanating from the Regional Development Strategy and Cultural Industries in CARICOM. and dissemination. analysis, compilation, Establish a mechanism for services data collection, Build capacity of national and regional of Coalition Services Industries. „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities Increased transparency in financial services regulation Increased market access in professional services sectors Increased production and exports of Services Services Increased coherence in policy response O utcomes 7.2 7.3 7.5 7.6 7.7 7.4 7. 7.1 ANNEX I/ Matrix ( Caricom Regional Aid for Trade Expansion and Diversification Trade Enhancing Competitiveness and Facilitating Goal 2: 52 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat Haiti 8.2 Haiti 8.1 OECS 8.3 Belize 8.1 Guyana 8.2 Guyana 8.1 Jamaica 8.2 Jamaica 8.3 Jamaica 8.1 Barbados 8.1 8.1, 8.2 OECS 8.1, L ink to N ational

Projects ( A nnex II ) (continued on next page) 8.4, 8.5, 8.6, 8.7 8.6, 8.5, OECS 8.4, Technical advisory services Technical Private-public partnerships Ventures FDI and Joint advisory services Technical Financial advisory services Workshops Training Seed investment advisory services Technical Regional dialogues advisory services Technical Financing „ „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance T „ „ „ „ „ „ „ „ „ „ „ „ )

continued Promote investment in innovative productive activities. Establish a mechanism for promoting and financing innovation within the private sector. Establish a trade financing mechanism for pre and post shipment support. Establish framework for joint procurement of raw materials for SMEs. export market entry Build institutional capacity for BSOs to collect and analyse market intelligence, programmes). and information related to available resources for SMEs (donor-financed requirements, Provide training in entrepreneurship. Develop and implement a regional SME policy. Harmonise draft model bill for SMEs. Develop a regional industrial policy. Design and implement a roadmap for the development of a cluster band business incubator mapping initiative on agro-tourism linkage; agro-processing; food and beverage; creative industries. „ „ „ „ „ „ „ „ „ „ Private Sector Innovation in the Caribbean Sector Innovation Private „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities Strengthened institutional capacity of business support organisations Enhanced productive and competitive capacity of businesses to expand trade Reduced cost of raw materials Improved integration of SMEs into policy and legislative frameworks PRIVATE SECTOR DEVELOPMENT SECTOR PRIVATE Strengthened production and export capacity of the private sector O utcomes 8.3 8.5 8.2 8.4 8. 8.1 ANNEX I/ Matrix ( Caricom Regional Aid for Trade Expansion and Diversification Trade Enhancing Competitiveness and Facilitating Goal 2: Annexes :: 53 All countries 10.1 L ink to N ational Projects ( A nnex II ) Legal and technical advisory services Workshops Financing Legal drafting Financing advisory Technical services advisory Technical services advisory Technical services Financing „ „ „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ „ „ T ) Consolidate the CSM and establish the framework for the CSE. Build institutional capacity of CARICOM Secretariat to implement and monitor national implementation of the CSME. particularly forStrengthen the regulatory the OECS framework to support integration, Economic Union. AfT flows. Design and implement a mechanism to collect monitor Build institutional capacity of OTN in trade negotiations. including management and monitoring Build institutional capacity of CARICOM Secretariat, of national implementation of trade agreements. Complete a study on the fiscal impact of tariff liberalisation under CARICOM bilateral and plurilateral trade agreements. „ „ „ „ „ „ „ Projects/ A ctivities continued „ „ „ „ „ „ „ Increased transparency and reliability of AfT flows Agreements External Trade Increased negotiation and implementation of trade agreements Increased knowledge of the impact trade liberalisation Regional Integration Strengthened regional integration movement and capacity of regional institutions O utcomes 10.1 9.2 9.3 10. 10.2 9. 9.1 ANNEX I/ Matrix ( Caricom Regional Aid for Trade Agreements Trade and Maximising Gains from External Deepening Regional Integration Goal 3: 54 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat 1.1 1.2 1.2 2.4 1.2, 1.3 1.2, L ink to R egional Projects ( A nnex I )

(continued on next page) OECS OECS Montserrat Montserrat St. Vincent St. & the Grenadines, the Grenadines, St. Kitts & Nevis St. St. Kitts & Nevis, Kitts & Nevis, St. Country/ R egion Infrastructure investment advisory services Technical advisory services Technical of best-practices Workshops models Infrastructure investment Capacity building for ports management advisory services Technical advisory services Technical Infrastructure investment Legal and technical advisory services Capacity building „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance T „ „ „ „ „ „ „ „ „ „ „ Implement recommendations from the Study on Caribbean Freight Logistics, Maritime Implement recommendations from the Study on Caribbean Freight Logistics, Facilitation (in process). Trade and Transport use of IT logistics, Complete a needs assessment on legislation and administration, training requirements and physical state and capacity of ports. solutions, Improve/upgrade physical infrastructure for support fast ferry service in the OECS. Strengthen port security systems. Improve ability of ports to handle transhipment cargo. Explore the feasibility of using alternative energy sources to reduce energy and operation costs. Improve managerial and administration of port facilities. Kitts port to accommodate a gantry Conduct a feasibility study on the capacity of St. crane. Conduct a feasibility study for constructing or rehabilitating ports. Organise a sensitisation workshop on regional E-government strategy. Develop standard forms and document templates. Develop E-government portal. „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities O utcomes Maritime Transport Improved efficiency and reduced cost of maritime transport Information and Communication Technologies Information and Communication Strengthened regional and national E-governance mechanisms 1. 1.1 1.2 1.4 2. 2.1 1.3 A NN E X II / National Projects with Regional Implications Trade interventions Annex I. supporting regional interventions listed in Aid for the reader will find national Annex, In this OECS S ub -R egion Key Economic Infrastructure Upgrading Goal 1: Annexes :: 55 2.1 3.1 2.8 4.1 L ink to R egional L ink to R egional Projects ( A nnex I ) Projects ( A nnex I )

(continued on next page) OECS OECS Grenada Montserrat Antigua and Antigua and & the Grenadines, & the Grenadines, Country/ R egion Country/ R egion & Nevis, St. Vincent St. & Nevis, Barbuda, Dominica, Dominica, Barbuda, Dominica, Barbuda, Saint Lucia, St. Kitts St. Saint Lucia, National and regional workshops to share information on governance mechanisms Seed investment advisory services Technical advisory services Technical and legal advisory Technical services Financing advisory services Technical Investment for software and hardware Capacity building for customs officials „ „ „ „ „ „ „ „ „ ype of A ssistance ype of A ssistance T T „ „ „ „ „ „ „ „ „ )

continued Examine and approve existing regional and national E-governance mechanisms for successful implementation of ICT projects. Undertake analysis of minimum framework necessary to implement large regional/ national ICT projects. Establish a regional E-service secretariat/forum/unit. Strengthen national ICT/information society units. Develop a regional strategy for the OECS for international representation/participation and input. and increase demonstrate good governance, Promote the use of ICT to manage, efficiency in business/operations. Develop E-commerce platform. Complete an assessment of renewable energy resources. Establish a Sub-regional mechanism for financing small and micro renewable energy and energy efficiency projects for MSMEs. Conduct feasibility study/implement single electronic window system. „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities Projects/ A ctivities O utcomes O utcomes Trade Facilitation Trade Increased efficiency and security of trade in goods Increased competition in delivery of broadband services to promote increased access Energy Accelerated development and use of renewable and alternative energy sources 2.2 4. 4.1 2.3 3. 3.1 ANNEX II/ National Projects with Regional Implications ( Key Economic Infrastructure Upgrading Goal 1: Expansion and Diversification Trade Enhancing Competitiveness and Facilitating Goal 2: 56 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat 8.3 8.3 4.5 5.1 7.3 7.7 L ink to R egional Projects ( A nnex I )

(continued on next page) Lucia OECS Montserrat Saint Lucia Grenadines Antigua and Kitts & Nevis St. Vincent St. & Dominica, St. St. Dominica, Vincent & the Grenada, Saint Grenada, Saint Lucia, St. St. Saint Lucia, Saint Lucia, St. St. Saint Lucia, Grenadines, St. St. Grenadines, Kitts and Nevis, Kitts and Nevis, Vincent and the the Grenadines, the Grenadines, Kitts and Nevis, St. St. Kitts and Nevis, Country/ R egion Barbuda, Dominica, Dominica, Barbuda, Dominica, Grenada, Grenada, Dominica, Capacity building for legislative drafters advisory services Technical Legal drafting and advocacy support Training Support for consultations Training Workshops advisory services Technical Training Seed investment Capacity building „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance T „ „ „ „ „ „ „ „ „ „ „ )

continued Review, update, and harmonise customs laws and procedures. update, Review, Develop appropriate customs-related regulations. and food safety agency consistent with health, Establish national agriculture, obligations under FTAs. Strengthen services association to participate in mutual recognition agreements negotiations. Establish/strengthen the institutional capacity of the coalitions services industries. Strengthen services associations to participate in multilateral trade negotiations. Formulate and implement national services policy. Establish and strengthen BSOs (coalition of services industries). Strengthen the market information/intelligence and analysis capacity at the national level. Provide training in market research and information gathering techniques. „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities O utcomes Streamlined customs processes Sanitary and Phytosanitary Measures Strengthened national SPS capacity Services Increased market access in professional services sectors Increased production and exports of services Private Sector Development Private Strengthened institutional capacity of business support organisations 8.2 4.2 5. 5.1 7. 7.1 7.2 8. 8.1 ANNEX II/ National Projects with Regional Implications ( Expansion and Diversification Trade Enhancing Competitiveness and Facilitating Goal 2: Annexes :: 57 8.5 8.1 8.1 8.1 8.1 10.2 L ink to R egional Projects ( A nnex I )

(continued on next page) OECS OECS OECS Grenada Grenadines Grenadines, Grenadines, Antigua and Barbuda, St. St. Barbuda, Vincent and the St. Vincent & the St. Montserrat, Saint Montserrat, Nevis, Vincent Nevis, St. Lucia, St. Kitts and St. Lucia, Country/ R egion and the Grenadines Dominica, Grenada, Grenada, Dominica, Technical advisory services Technical National consultations Legal advisory services Seed investment advisory services Technical Capacity building in trade finance Regional dialogues advisory services Technical advisory services Technical Legal drafting advisory services Technical „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance T „ „ „ „ „ „ „ „ „ „ „ )

continued Develop industry clusters and business incubators (agro-processing, culture, tourism, tourism, culture, Develop industry clusters and business incubators (agro-processing, fisheries) Develop and implement innovation and competitiveness policy. Assess trade/export financing gaps and develop a compendium of available export/ trade financing facilities. Establish framework for the formation of export/trade financing enterprises. Provide training in developing and managing financial tools and packages to facilitate financing of trade transactions. Establish private sector trade teams in the OECS to garner financial and technical resources. Implement the agreement establishing the Caribbean Export Bank. Formulate action plan for re-tooling labour force and restructuring production in response to trade agreements. „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities O utcomes Increased competitiveness of small and medium-size enterprises (SMEs) Agreements External Trade Increased knowledge of the impact trade liberalisation Strengthened production and export capacity of the private sector 8.4 8.3 10. 10.1 8.6 8.7 8.5 ANNEX II/ National Projects with Regional Implications ( Expansion and Diversification Trade Enhancing Competitiveness and Facilitating Goal 2: Agreements Trade and Maximising Gains from External Deepening Regional Integration Goal 3: 58 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat 1.1 2.4 2.8 5.1 10.2 L ink to R egional

Projects ( A nnex I ) (continued on next page) Infrastructure investment advisory Technical services Legal and technical advisory services Capacity building advisory Technical services advisory Technical services Legal drafting advisory Technical services „ „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ „ T )

continued Implement recommendations from the study on Caribbean Freight Logistics, Maritime Implement recommendations from the study on Caribbean Freight Logistics, Facilitation (in process). Trade and Transport, Organise a sensitisation workshop on regional E-government strategy. Develop standard forms and document templates. Develop E-government portal. Develop E-commerce platform. Establish national agriculture health and food safety agency consistent with obligations under FTAs. Formulate action plan for re-tooling labour force and restructuring production in response to trade agreements. „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ Information and Communication Technologies Information and Communication Strengthened regional and national E-governance mechanisms Increased competition in delivery of broadband services to promote increased access Sanitary and Phytosanitary Measures Strengthened national SPS compliance Agreements External Trade Increased knowledge of the impact trade liberalisation Maritime Transport Improved efficiency and reduced cost of maritime transport O utcomes 2.1 5.1 10.1 2. 2.2 5. 10. 1. 1.1 ANNEX II/ National Projects with Regional Implications ( Th e B a h amas Annexes :: 59 1.1 2.4 2.1 2.8 3.1 5.1 L ink to R egional (continued on next page) Projects ( A nnex I ) Infrastructure investment advisory Technical services Legal and technical advisory services Capacity building National and regional workshops to share information on governance mechanisms Seed investment advisory Technical services advisory Technical services Legal drafting services advisory Technical services Legal drafting „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ „ „ „ „ T )

continued Organise a sensitisation workshop on regional E-government strategy. Develop standard forms and document templates. Develop E-government portal. Examine and approve existing regional and national E-governance mechanisms for successful implementation of ICT projects. Undertake analysis of minimum framework necessary to implement large regional/national ICT projects. Establish a regional E-service secretariat/forum/unit. Strengthen national ICT/information society units. demonstrate good governance and increase efficiency Promote the use of ICT to manage, in business/operations. Develop E-commerce platform. Develop the national regulatory framework to govern the utilization of renewable and alternative energy sources. and food safety agency consistent with obligations health, Establish national agriculture, under FTAs. Implement recommendations from the study on Caribbean Freight Logistics, Maritime Implement recommendations from the study on Caribbean Freight Logistics, Facilitation (in process). Trade and Transport „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ „ „ „ „ Information and Communication Technologies Information and Communication Strengthened regional and national E-governance mechanisms Increased competition in delivery of broadband services to promote increased access Energy Accelerated development and use of renewable and alternative energy sources Sanitary and Phytosanitary Measures Strengthened national SPS capacity Maritime Transport Improved efficiency and reduced cost of maritime transport O utcomes 2.1 3.1 5.1 2. 2.2 2.3 3. 5. 1. 1.1 ANNEX II/ National Projects with Regional Implications ( B arbados 60 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat 8.1 1.1 2.4 10.2 L ink to R egional L ink to R egional (continued on next page) Projects ( A nnex I ) Projects ( A nnex I ) Technical advisory Technical services Capacity building in trade finance advisory Technical services Infrastructure investment advisory Technical services Legal and technical advisory services Capacity building „ „ „ „ „ „ „ ype of A ssistance ype of A ssistance „ „ „ „ „ „ „ T T )

continued Formulate action plan for re-tooling labour force and restructuring production in response to trade agreements. Maritime Implement recommendations from the study on Caribbean Freight Logistics, Facilitation (in process). Trade and Transport Organise a sensitisation workshop on regional E-government strategy. Develop standard forms and document templates. Develop E-government portal. Develop a compendium of available export/trade financing facilities. Assess trade/export financing gaps.; Establish framework for the formation of export/trade financing enterprises. Conduct training in developing and managing financial tools and packages to facilitate financing of trade transactions. „ „ „ „ „ „ „ „ „ Projects/ A ctivities Projects/ A ctivities „ „ „ „ „ „ „ „ „ External Trade Agreements External Trade Increased knowledge of the impact trade liberalisation Technologies Information and Communication Strengthened regional and national E-governance mechanisms Maritime Transport Improved efficiency and reduced cost of maritime transport Private Sector Development Private Strengthened production and export capacity of the private sector O utcomes O utcomes 10.1 2.1 10. 2. 1. 1.1 8. 8.1 B eli z e ANNEX II/ National Projects with Regional Implications ( B arbados Annexes :: 61 2.1 2.8 3.1 4.1 4.5 L ink to R egional (continued on next page) Projects ( A nnex I ) National and regional workshops to share information on governance mechanisms Seed investment advisory Technical services advisory Technical services Legal drafting services advisory Technical services Investment for software and hardware Capacity building for customs officials Capacity building for legislative drafters „ „ „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ „ „ T )

continued Examine and approve existing regional and national E-governance mechanisms for successful implementation of ICT projects. Undertake analysis of minimum framework necessary to implement large regional/national ICT projects. Establish a regional E-service secretariat/forum/unit. Strengthen national ICT/information society units. and increase efficiency demonstrate good governance, Promote the use of ICT to manage, in business/operations. Develop E-commerce platform. Develop the national regulatory framework to govern the utilization of renewable and alternative energy sources. Conduct feasibility study/implement single electronic window system. update and harmonise customs laws and procedures. Review, Develop appropriate customs-related regulations. „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ „ „ Increased competition in delivery of broadband services to promote increased access Energy Accelerated development and use of renewable and alternative energy sources Facilitation Trade Increased efficiency and security of trade in goods Streamlined customs processes O utcomes 3.1 4.1 2.3 3. 4. 4.2 2.2 ANNEX II/ National Projects with Regional Implications ( B eli z e 62 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat 8.1 1.1 2.4 5.1 10.2 L ink to R egional L ink to R egional (continued on next page) Projects ( A nnex I ) Projects ( A nnex I ) Technical advisory Technical services Capacity building in trade finance advisory Technical services Infrastructure investment advisory Technical services Legal and technical advisory services Capacity building „ „ „ „ „ „ „ ype of A ssistance ype of A ssistance „ „ „ „ „ „ „ Technical advisory services Technical Legal drafting T T )

continued Formulate action plan for re-tooling labour force and restructuring production in response to trade agreements Maritime Implement recommendations from the study on Caribbean Freight Logistics, Facilitation (in process). Trade and Transport Organise a sensitisation workshop on regional E-government strategy. Develop standard forms and document templates. Develop E-government portal. Develop a compendium of available export/trade financing facilities. Assess trade/export financing gaps. Establish framework for the formation of export/trade financing enterprises. Conduct training in developing and managing financial tools and packages to facilitate financing of trade transactions. „ „ „ „ „ „ „ „ „ Projects/ A ctivities Projects/ A ctivities Establish national agriculture, health, and food safety agency consistent with obligations under health, Establish national agriculture, FTAs. „ „ „ „ „ „ „ „ „ External Trade Agreements External Trade Increased knowledge of the impact trade liberalisation Technologies Information and Communication Strengthened regional and national E-governance mechanisms Maritime Transport Improved efficiency and reduced cost of maritime transport Sanitary and Phytosanitary Measures Strengthened national SPS capacity Private Sector Development Private Strengthened production and export capacity of the private sector O utcomes O utcomes ana 10.1 2.1 10. 2. 1. 1.1 5. 5.1 8.1 8. G u y ANNEX II/ National Projects with Regional Implications ( B eli z e Annexes :: 63 2.1 2.8 3.1 4.1 5.1 L ink to R egional (continued on next page) Projects ( A nnex I ) National and regional workshops to share information on governance mechanisms Seed investment advisory Technical services advisory Technical services Legal drafting services advisory Technical services Investment for software and hardware Capacity building for customs officials advisory Technical services Legal drafting „ „ „ „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ „ „ „ T )

continued Develop E-commerce platform. Develop the national regulatory framework to govern the utilization of renewable and alternative energy sources. Conduct feasibility study/implement single electronic window system. and food safety agency consistent with obligations health, Establish national agriculture, under FTAs Examine and approve existing regional and national E-governance mechanisms for successful implementation of ICT projects. Undertake analysis of minimum framework necessary to implement large regional/national ICT projects. Establish a regional E-service secretariat/forum/unit. Strengthen national ICT/information society units. and increase efficiency demonstrate good governance, Promote the use of ICT to manage, in business/operations. „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ „ Increased competition in delivery of broadband services to promote increased access Energy Accelerated development and use of renewable and alternative energy sources Facilitation Trade Increased efficiency and security of trade in goods Sanitary and Phytosanitary Measures Strengthened national SPS capacity O utcomes ana 3.1 4.1 5.1 2.3 3. 4. 5. 2.2 ANNEX II/ National Projects with Regional Implications ( G u y 64 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat 8.3 8.1 1.1 1.1 2.4 10.2 L ink to R egional L ink to R egional (continued on next page) Projects ( A nnex I ) Projects ( A nnex I ) Capacity building Workshops advisory Technical services Infrastructure investment advisory Technical services Infrastructure investment advisory Technical services Legal and technical advisory services Capacity building „ „ „ „ „ „ „ „ „ ype of A ssistance ype of A ssistance „ „ „ „ „ „ „ „ „ T T )

continued Create and strengthen consultative mechanisms at the national and regional levels. Strengthen private sector participation in the formulation of trade policies. Formulate action plan for re-tooling labour force and restructuring production in response to trade agreements. Maritime Implement recommendations from the study on Caribbean Freight Logistics, Facilitation (in process). Trade and Transport or Fort-Liberté). Construct or rehabilitate ports (Port-au-Prince; Cap-Haïtien, Organise a sensitisation workshop on regional E-government strategy. Develop standard forms and document templates. Develop E-government portal. Strengthen the market information/intelligence and analysis capacity at the national level. Provide training in market research and information gathering techniques. „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities Projects/ A ctivities „ „ „ „ „ „ „ „ „ „ Strengthened production and export capacity of the private sector Agreements External Trade Increased knowledge of the impact trade liberalisation Technologies Information and Communication Strengthened regional and national E-governance mechanisms Maritime Transport Improved efficiency and reduced cost of maritime transport Private Sector Development Private Strengthened institutional capacity of business support organisations O utcomes O utcomes ana 10.1 2.1 8.2 10. 1.2 2. 1. 1.1 8. 8.1 Haiti ANNEX II/ National Projects with Regional Implications ( G u y Annexes :: 65 2.1 2.8 3.1 4.1 4.5 5.1 L ink to R egional (continued on next page) Projects ( A nnex I ) National and regional workshops to share information on governance mechanisms Seed investment advisory Technical services advisory Technical services Legal drafting services advisory Technical services Investment for software and hardware Capacity building for customs officials Capacity building for legislative drafters advisory Technical services Legal drafting „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ „ „ „ „ T )

continued Develop E-commerce platform. Develop the national regulatory framework to govern the utilization of renewable and alternative energy sources. Conduct feasibility study/implement single electronic window system. and harmonise customs laws and procedures. update, Review, Develop appropriate customs-related regulations. and food safety agency consistent with obligations health, Establish national agriculture, under FTAs. Examine and approve existing regional and national E-governance mechanisms for successful implementation of ICT projects. Undertake analysis of minimum framework necessary to implement large regional/national ICT projects. Establish a regional E-service secretariat/forum/unit. Strengthen national ICT/information society units. and increase efficiency demonstrate good governance, Promote the use of ICT to manage, in business/operations. „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ „ „ „ Increased competition in delivery of broadband services to promote increased access Energy Accelerated development and use of renewable and alternative energy sources Facilitation Trade Increased efficiency and security of trade in goods Streamlined customs processes Sanitary and Phytosanitary Measures Strengthened national SPS capacity O utcomes 3.1 4.1 5.1 2.3 3. 4. 4.2 5. 2.2 ANNEX II/ National Projects with Regional Implications ( Haiti 66 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat 1.1 2.4 8.3 8.1 10.2 L ink to R egional L ink to R egional

Projects ( A nnex I ) (continued on next page) Projects ( A nnex I ) Infrastructure investment Technical advisory services Legal and technical advisory services Capacity building Capacity building Workshops advisory Technical services „ „ „ „ „ „ „ „ ype of A ssistance ype of A ssistance „ „ „ „ „ T „ „ „ T )

continued Implement recommendations from the study on Caribbean Freight Logistics, Maritime Implement recommendations from the study on Caribbean Freight Logistics, Facilitation (in process). Trade and Transport Organise a sensitisation workshop on regional E-government strategy. Develop standard forms and document templates. Develop E-government portal. Create and strengthen consultative mechanisms at the national and regional levels. Strengthen private sector participation in the formulation of trade policies. Formulate action plan for re-tooling labour force and restructuring production in response to trade agreements. Strengthen the market information/intelligence and analysis capacity at the national level. Provide training in market research and information gathering techniques. „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ Projects/ A ctivities „ „ „ „ „ Maritime Transport Improved efficiency and reduced cost of maritime transport Information and Communication Technologies Information and Communication Strengthened regional and national E-governance mechanisms O utcomes Strengthened production and export capacity of the private sector Agreements External Trade Increased knowledge of the impact trade liberalisation Private Sector Development Private Strengthened institutional capacity of business support organisations O utcomes 10.1 8.2 10. 1.1 1. 8. 8.1 2. 2.1 J amaica ANNEX II/ National Projects with Regional Implications ( Haiti Annexes :: 67 2.1 2.8 3.1 4.1 4.3 L ink to R egional

Projects ( A nnex I ) (continued on next page) National and regional workshops to share information on governance mechanisms Seed investment advisory Technical services advisory Technical services Legal drafting services advisory Technical services Investment for software and hardware Capacity building for customs officials advisory Technical services Workshops „ „ „ „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ „ „ „ T )

continued Examine and approve existing regional and national E-governance mechanisms for successful implementation of ICT projects. Undertake analysis of minimum framework necessary to implement large regional/national ICT projects. Establish a regional E-service secretariat/forum/unit. Strengthen national ICT/information society units. demonstrate good governance and increase efficiency Promote the use of ICT to manage, in business/operations. Develop E-commerce platform. Develop the national regulatory framework to govern the utilization of renewable and alternative energy sources. Conduct feasibility study/implement single electronic window system. Implement authorised economic operator (AEO). „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ „ Increased competition in delivery of broadband services to promote increased access Energy Accelerated development and use of renewable and alternative energy sources Facilitation Trade Increased efficiency and security of trade in goods O utcomes 2.2 2.3 3. 3.1 4. 4.1 4.2 ANNEX II/ National Projects with Regional Implications ( J amaica 68 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat 1.1 5.1 8.3 8.5 8.1 10.2 L ink to R egional L ink to R egional

Projects ( A nnex I ) Projects ( A nnex I ) (continued on next page) Technical advisory Technical services Legal drafting Training Seed investment advisory Technical services National consultations Workshops advisory Technical services Infrastructure investment advisory Technical services „ „ „ „ „ „ „ „ „ „ ype of A ssistance ype of A ssistance „ „ „ „ „ „ „ „ „ „ T T )

continued Establish national agriculture, health, and food safety agency consistent with obligations health, Establish national agriculture, under FTAs. Establish and strengthen BSOs (coalition of services industries). fisheries). tourism, culture, Develop industry cluster (agro-processing, Create and strengthen consultative mechanisms at the national and regional levels. Strengthen private sector participation in the formulation of trade policies. Formulate action plan for re-tooling labour force and restructuring production in response to trade agreements. Maritime Implement recommendations from the study on Caribbean Freight Logistics, Facilitation (in process). Trade and Transport „ „ „ „ „ „ „ Projects/ A ctivities Projects/ A ctivities „ „ „ „ „ „ „ Sanitary and Phytosanitary Measures Strengthened national SPS capacity Maritime Transport Improved efficiency and reduced cost of maritime transport Private Sector Development Private Strengthened business services organisations (BSOs) Strengthened production and export capacity of the private sector Agreements External Trade Increased knowledge of the impact trade liberalisation O utcomes O utcomes 5.1 1.1 5. 1. 8. 8.1 8.2 8.3 10. 10.1 ANNEX II/ National Projects with Regional Implications ( J amaica S uriname Annexes :: 69 2.4 2.1 2.8 1.1, 1.3 1.1, L ink to R egional

Projects ( A nnex I ) (continued on next page) Technical advisory Technical services of best- Workshops practices models Infrastructure investment Capacity building for ports management Legal and technical advisory services Capacity building National and regional workshops to share information on governance mechanisms Seed investment advisory Technical services advisory Technical services „ „ „ „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ „ „ „ T )

continued Develop needs assessment with particular reference to legislation and administration, Develop needs assessment with particular reference to legislation and administration, and physical state and capacity of training requirements, use of IT solutions, logistics, ports. Strengthen port security systems. Improve ability of ports to handle transhipment cargo. Explore the feasibility of using alternative energy sources to reduce energy and operation costs. Improve managerial and administration of port facilities Organise a sensitisation workshop on regional E-government strategy. Develop standard forms and document templates. Develop E-government portal. Examine and approve existing regional and national E-governance mechanisms for successful implementation of ICT projects. Undertake analysis of minimum framework necessary to implement large regional/national ICT projects. Establish a regional E-service secretariat/forum/unit. Strengthen national ICT/information society units. demonstrate good governance and increase Promote the usage of ICT to manage, efficiency in business/operations. Develop E-commerce platform. „ „ „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ „ „ „ „ „ „ Increased competition in delivery of broadband services to promote increased access Information and Communication Technologies Information and Communication Strengthened regional and national E-governance mechanisms O utcomes 2.2 2.3 1.2 2. 2.1 ANNEX II/ National Projects with Regional Implications ( S uriname 70 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat 5.1 1.1 2.4 10.2 L ink to R egional L ink to R egional

Projects ( A nnex I ) Projects ( A nnex I ) (continued on next page) Technical advisory Technical services Legal drafting advisory Technical services Infrastructure investment advisory Technical services Legal and technical advisory services Capacity building „ „ „ „ „ „ „ ype of A ssistance ype of A ssistance „ „ „ „ „ „ „ T T )

continued Establish national agriculture, health, and food safety agency consistent with obligations health, Establish national agriculture, under FTAs. Formulate action plan for re-tooling labour force and restructuring production in response to trade agreements. Maritime Implement recommendations from the study on Caribbean Freight Logistics, Facilitation (in process). Trade and Transport Organise a sensitisation workshop on regional E-government strategy. Develop standard forms and document templates. Develop E-government portal. „ „ „ „ „ „ Projects/ A ctivities Projects/ A ctivities „ „ „ „ „ „ obago External Trade Agreements External Trade Increased knowledge of the impact trade liberalisation Sanitary and Phytosanitary Measures Strengthened national SPS capacity Maritime Transport Improved efficiency and reduced cost of maritime transport Information and Communication Technologies Information and Communication Strengthened regional and national E-governance mechanisms O utcomes O utcomes 10. 10.1 5.1 1.1 5. 1. 2. 2.1 ANNEX II/ National Projects with Regional Implications ( S uriname T rinidad and Annexes :: 71 2.1 2.8 5.1 10.2 L ink to R egional Projects ( A nnex I ) National and regional workshops to share information on governance mechanisms Seed investment advisory Technical services advisory Technical services advisory Technical services Legal drafting advisory Technical services „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ T )

continued Examine and approve existing regional and national E-governance mechanisms for successful implementation of ICT projects. Undertake analysis of minimum framework necessary to implement large regional/national ICT projects. Establish a regional E-service secretariat/forum/unit. Strengthen national ICT/information society units. and increase demonstrate good governance, Promote the usage of ICT to manage, efficiency in business/operations. Develop E-commerce platform. Establish national agriculture health and food safety agency consistent with obligations under FTAs. Formulate action plan for re-tooling labour force and restructuring production in response to trade agreements. „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ obago Increased competition in delivery of broadband services to promote increased access Sanitary and Phytosanitary Measures Strengthened national SPS capacity Agreements External Trade Increased knowledge of the impact trade liberalisation O utcomes 2.2 2.3 5. 5.1 10. 10.1 ANNEX II/ National Projects with Regional Implications ( T rinidad and 72 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat OECS OECS OECS OECS OECS Grenada

(continued on next page) Country/ R egion St. Kitts and Nevis, Saint Lucia, Saint Lucia, Kitts and Nevis, St. Technical advisory services Technical advisory services Technical advisory Technical services and capacity building in logistics hydrographic management, maritime radio- services, navigational communication, management and planning, regulation Seed investment advisory services Technical and legal advisory Technical services advisory services Technical „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ T Explore the feasibility of establishing less-than-full container load (LCL) systems. Develop an action plan to promote intermodal services. Develop new methods to improve efficiency of terminal and container facilities. Complete a feasibility study on dredging – deepening and widening of channels. Extend berths. Update hydrographic and navigational maps. Install port reception facilities for waste generated by ships. Install new and upgrade existing aids to navigation. and standards at the national level. policies, Complete a gap analysis for laws, Conduct a market study to identify opportunities in the telecommunications sector including: regulation and management of spectrum The use, Development of a single ICT space Development of broadband strategy Development of national broadband infrastructure „ „ „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ „ „ „ „ „ „ Information and Communication Technologies Information and Communication Increased competition in the delivery of broadband services to promote increased access O utcomes Maritime Transport Improved efficiency and reduced cost of maritime transport 1.2 1.3 1.4 2. 2.1 2.2 1. 1.1 A NN E X III / National Projects with Implications Member States considered these of the utmost importance. Although not linked to regional projects, Trade interventions with strictly national implications. Aid for the reader will find national Annex, In this OECS S ub - region Key Economic Infrastructure Upgrading Goal 1: Annexes :: 73 OECS

Saint Lucia Saint Lucia (continued on next page) the Grenadines Country/ R egion Country/ R egion Grenada, St. Vincent and St. Grenada, and the Grenadines, Grenada and the Grenadines, Antigua and Barbuda, Grenada, Grenada, Antigua and Barbuda, Grenada, Antigua and Barbuda, Grenada, Montserrat, St. Kitts and St. Montserrat, Grenada, Montserrat, Saint Lucia, St. Vincent St. Saint Lucia, Montserrat, Nevis, St. Vincent & the Grenadines St. Nevis, Workshops on new Workshops market trends and access requirements Database advisory services Technical Legal drafting services advisory services Technical Seed investment Capacity building in alternative energy development advisory services Technical Capacity building for customs officials „ „ „ „ „ „ „ „ „ ype of A ssistance ype of A ssistance „ „ „ „ „ „ „ „ „ T T )

continued Adopt new technology to improve business practices. Create database to facilitate sharing best practices in f importing and exporting. Develop a national internet exchange point (IXP) and the generation of local content. Complete feasibility studies and prepare projects on the use of renewable/ nutmeg industryalternative energy for small-scale producers (agro-processing, and the hotel sector). Develop national regulatory frameworks to govern the utilization of renewable and alternative energy sources. Review energy related legislation. solar). wind, hydro, Develop alternative energy capacity (geothermal, Implement national energy strategies. Implement energy efficiency programmes including retrofit for buildings and energy efficient transportation. business Provide training to customs officials and brokers on ICT, rules of origin, post audit clearance, risk management techniques, processes, and valuation. classification, advance ruling, „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities Projects/ A ctivities „ „ „ „ „ „ „ „ „ „ O utcomes O utcomes Trade Facilitation Trade Strengthened capacity of customs officials Energy Accelerated the development and use of renewable and alternative energy sources 3.2 3.3 2.3 4. 4.1 3. 3.1 3.4 ANNEX III/ National Projects with Implications ( Key Economic Infrastructure Upgrading Goal 1: And Diversification Expansion Trade And Facilitating Enhancing Competitiveness Goal 2: 74 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat OECS Grenada Grenada Grenada Grenada

Saint Lucia (continued on next page) Grenadines Country/ R egion Grenadines, Grenada Grenadines, St. Vincent and the Grenadines St. Saint Lucia, St. Vincent and the St. Saint Lucia, Vincent and the St. Saint Lucia, St. Vincent and the Grenadines, Vincent and the Grenadines, St. Vincent and the Grenadines, St. Website Investment in facilities Capacity building in customs risk management systems advisory services Technical advisory services Technical advisory services Technical Capacity building Legal advisory services OECS regional dialogues Infrastructure Investment Infrastructure investment advisory services Technical Capacity building „ „ „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ „ „ „ „ „ „ T )

continued Develop and upgrade customs web sites. Strengthen the trade information portal Procure equipment for customs administration buildings and introduce security and access controls. Acquire non-intrusive cargo scanners. Strengthen risk management systems. Establish a national trade facilitation task force. Implement national trade facilitation action plan. Develop a national trade facilitation policy. valuation on revenue collection. Assess the impact of implementation of GATT (1994) valuation and security mechanisms. WTO/GATT Implement of Customs Organization. World Facilitate accession to the Conduct comprehensive needs analysis of produce chemist laboratory (PCL). Develop a strategic plan for PCL. Develop a training plan to build capacity of technical staff at PCL. Develop project proposal to equip PCL with equipment and materials needed to carry out necessary testing and analyses. Assess States’ ability to comply with EU General Food Law and Feed Food and prepare technical Act, Regulation and the US Food Safety Modernization assistance project to upgrade capacity to comply. Retrofit plant protection and quarantine laboratories with basic modern materials and supplies. equipment, Construct post quarantine facility to enhance laboratory complex. surveillance Develop computerized database system to integrate plant protection, and quarantine data. „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ Modernised customs infrastructure and improved security Improved efficiency in goods examination and revenue collection Improved Institutional Framework Sanitary and Phytosanitary Measures Increased capacity to certify and accredit laboratories Strengthened national SPS compliance Upgraded SPS-related infrastructure O utcomes Improved dissemination of public information by customs Improved Regulatory Framework 4.3 4.4 4.5 5. 5.1 5.2 5.3 4.2 4.6 5.4 ANNEX III/ National Projects with Implications ( And Diversification Expansion Trade And Facilitating Enhancing Competitiveness Goal 2: Annexes :: 75 OECS Grenada

Montserrat (continued on next page) Grenadines, Country/ R egion Montserrat, Grenada Montserrat, Grenada, Saint Lucia Grenada, Antigua and Barbuda St. Kitts & Nevis, Grenada Kitts & Nevis, St. St. Vincent and the Grenadines St. Montserrat, St. Vincent and the St. Montserrat, Antigua and Barbuda, Grenada, Grenada, Antigua and Barbuda, Grenada, Antigua and Barbuda, Capacity building advisory services Technical Capacity building Infrastructure investment Capacity building Infrastructure investment Auditing services Seed investment advisory services Technical Legal drafting advisory services Technical Capacity building in data collection methods Capacity building Capacity building „ „ „ „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ „ „ „ „ „ „ „ T )

continued Train three plant protection quarantine officers in specialized areas (entomology/ Train soil and PRA). pathology, Invest in methyl bromide (MBr) fumigation infrastructure. Conduct MBr fumigation and train staff in MBr fumigation techniques and Probit. Improve/upgrade physical infrastructure for testing. for metrology) Procure equipment (e.g., of staff. Training Perform external auditing of laboratory facilities. Establish an accreditation and certification body for the spa industry. Establish a spa training institute. Update legislation/regulations/standards for health tourism services. market Develop and implement work plan for various services sub-sectors, training of service providers in developing export research and business pairing, strategies. Build capacity to collect and analyse services sector data. creative Build productive capacity in services sectors such as online banking, and professional services. tourism, ICT, industries, financial ICT, health and wellness, Build productive capacity in the construction, and education sectors. tourism, services, „ „ „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ „ „ „ „ „ „ Quality Infrastructure Enhanced efficiency of quality Infrastructure Increased support to niche services sectors Services Strengthened legal and regulatory environment Increased diversification of services exports O utcomes Improved capacity for pest diagnosis Improved capacity for disinfestation Apples for treatment of Golden fruit fly to re-enter the international market Improved capacity to gather and analyse services data 6. 6.1 7.4 7.5 6.2 7. 7.1 7.2 5.5 5.6 7.3 ANNEX III/ National Projects with Implications ( And Diversification Expansion Trade And Facilitating Enhancing Competitiveness Goal 2: 76 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat Nevis Montserrat Montserrat

Saint Lucia (continued on next page) Kitts and Nevis Nevis, Grenada Nevis, the Grenadines Dominica, Grenada Dominica, Country/ R egion Grenada, Saint Lucia Grenada, Antigua and Barbuda, Grenada Antigua and Barbuda, Antigua and Barbuda, Saint Lucia Antigua and Barbuda, the Grenadines, St Kitts and Nevis the Grenadines, Saint Lucia, Grenada, St. Kitts and St. Grenada, Saint Lucia, Antigua and Barbuda, St. Kitts and St. Antigua and Barbuda, Antigua and Barbuda, Grenada, St. St. Grenada, Antigua and Barbuda, Dominica, Grenada, St. Vincent and St. Grenada, Dominica, Antigua and Barbuda, St. Vincent and St. Antigua and Barbuda, Technical advisory services Technical Workshops Seed investment advisory services Technical advisory services Technical advisory services Technical Capacity building in business development advisory services Technical experts – good Technical marketing technologist, extension agents, specialist, human resource trainers. advisory services Technical National consultations Seed investment Legal advisory services Capacity building „ „ „ „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ „ „ „ „ „ „ „ T )

continued Update/implement national export development strategies. Conduct research to identify priority and potential areas/sectors. Promote development of indigenous and value-added products. Provide industry-specific information. Develop national trade information networks. Agency. Strengthen the National Export Promotion Develop diversification and export strategies. Develop national trade policies. AfT strategies. Develop a national market Provide training for local consultants in business development, and management business, marketing, export and trade promotion, intelligence, Develop business incubation initiatives to provide comprehensive frameworks for business development services. Build capacity in product development and procurement of necessary equipment. Conduct surveys to assess needs. Develop inspection regime. Develop brands and programmes to promote brands. Develop strategy to add value volcanic ash make roof tiles. Update legislative and regulatory framework for private sector development. cultural energy, Build productive capacity in agriculture agro-processing, and tourism. professional services, industries, „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ Enhanced capacity in agriculture and agro-processing Increased support to sectoral development Improved and enhanced productive capacity of SMEs O utcomes Private Sector Development Private Strengthened support to national trade-related priorities Strengthened private sector/business development organisations Increased international recognition of national brands 8.5 8.8 8.10 8.6 8.11 8.12 8. 8.1 8.2 8.3 8.4 8.7 8.9 ANNEX III/ National Projects with Implications ( And Diversification Expansion Trade And Facilitating Enhancing Competitiveness Goal 2: Annexes :: 77 OECS OECS OECS Grenada

Saint Lucia (continued on next page) Country/ R egion Country/ R egion St. Vincent and the Grenadines St. Antigua and Barbuda, Grenada, Grenada, Antigua and Barbuda, Antigua and Barbuda, Saint Lucia, St. St. Saint Lucia, Antigua and Barbuda, Vincent and the Grenadines, Grenada Vincent and the Grenadines, Capacity building advisory services Technical Workshops Legislative drafting Legal advisory services Capacity building and legal advisory Technical services advisory services Technical advisory services Technical for national and regional institutions „ „ „ „ „ „ „ „ „ ype of A ssistance ype of A ssistance „ „ „ „ „ „ „ „ „ T T )

continued Develop sectors where there is comparative advantage e.g., cultural industries, cultural industries, Develop sectors where there is comparative advantage e.g., ICT. small ruminants, pork, poultry, Build productive capacity in the honey industry. Build productive capacity in the production of handicrafts – clay/sculpting and painting. Build productive capacity in poultry and fishing. Promote Grenada as a clean destination. Review national laws. Ratify outstanding agreements. Draft legislative changes to bring laws into conformity with trade agreements; and procedures strategies, policies, regulations, review current investment laws, and CSME requirements. to ensure conformity with EPA Preparation of a roadmap for introduction of free circulation of goods. Implement legislative and administrative changes to support free circulation. including Complete audit and roadmap to address obstacles implementation, drafting of legislation. Implement action plans for implementation of the CSM. „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities Projects/ A ctivities „ „ „ „ „ „ „ „ „ „ „ „ Improved implementation of trade agreements Accelerated implementation of the OECS Economic Union Improved effectiveness of CSME implementation in the OECS O utcomes O utcomes Regional Integration Strengthened integration commitments and mechanisms for implementation Improved effectiveness of the Regime for Free Circulation of Goods in the OECS 9.2 9.4 9.5 8.13 9. 9.1 8.14 9.3 ANNEX III/ National Projects with Implications ( And Diversification Expansion Trade And Facilitating Enhancing Competitiveness Goal 2: Agreements Trade and Maximising Gains from External Deepening Regional Integration Goal 3: 78 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

(continued on next page) Technical advisory services Technical Legal drafting services Legal advisory services National dialogue Capacity building Infrastructure investment Auditing services Technical advisory services Technical Legal advisory services National dialogue Capacity building Infrastructure investment Auditing services „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ ype of A ssistance T „ „ „ „ „ „ „ T „ „ „ „ „ „ ) Complete a gap analysis for laws, policies and standards at the national level. Complete a gap analysis for laws, Assess ability to comply with EU General Food Law and Feed Food Regulation and US Food Safety and prepare technical assistance project to upgrade capacity to comply. Act, Modernization Improve/upgrade physical infrastructure for testing. for metrology). Procure equipment (e.g., Provide staff training. Perform external auditing of laboratory facilities. Complete a gap analysis for laws, policies and standards at the national level. Complete a gap analysis for laws, Develop the national regulatory framework to govern the utilization of renewable and alternative energy sources. Assess ability to comply with EU General Food Law and Feed Food Regulation and US Food Safety and prepare technical assistance project to upgrade capacity to comply. Act, Modernization Improve/upgrade physical infrastructure for testing. for metrology). Procure equipment (e.g., Provide staff training. Perform external auditing of laboratory facilities. „ „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „

continued O utcomes Information and Communication Technologies Information and Communication Improved access to E-commerce platforms Sanitary and Phytosanitary Measures Strengthened national oversight of SPS compliance Quality Infrastructure Enhanced efficiency of quality infrastructure Energy Accelerated development and use of renewable and alternative energy sources Sanitary and Phytosanitary Measures Strengthened national oversight of SPS compliance Quality Infrastructure Enhanced efficiency of quality infrastructure Information and Communication Technologies Information and Communication Improved access to E-commerce platforms O utcomes 3.1. 5.1 6.1 3. 5. 6. 2. 2.1 2. 2.1 5. 5.1 6. 6.1 ANNEX III/ National Projects with Implications ( Th e B a h amas B arbados Annexes :: 79

(continued on next page) Technical advisory services Technical advisory Technical services and capacity building in logistics hydrographic management, maritime services, radio-communication, navigational planning Seed investment advisory services Technical advisory services Technical Legal drafting services Legal advisory services National dialogue Capacity building Infrastructure investment Auditing services „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance T „ „ „ „ „ „ „ „ „ „ „ ) Develop an action plan to promote intermodal services. Develop new methods to improve efficiency of terminal and container facilities. Complete a feasibility study on dredging – deepening and widening of channels. Extend berths. Update hydrographic and navigational maps. Install port reception facilities for waste generated by ships. Install new and upgrade existing aids to navigation. policies and standards at the national level Complete a gap analysis for laws, Develop a national regulatory framework to govern the utilization of renewable and alternative energy sources. Assess ability to comply with EU General Food Law and Feed Food Regulation and US Food Safety and prepare technical assistance project to upgrade capacity to comply. Act, Modernization Improve/upgrade physical infrastructure for testing. for metrology). Procure equipment (e.g. Provide staff training. Perform external auditing of laboratory facilities „ „ „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ „ „ „ „ „ „

continued Information and Communication Technologies Information and Communication Improved access to E-commerce platforms Energy Accelerated development and use of renewable and alternative energy sources Sanitary and Phytosanitary Measures Strengthened national oversight of SPS compliance Quality Infrastructure Enhanced efficiency of quality infrastructure Maritime Transport Improved efficiency and reduced cost of maritime transport O utcomes a 1.2 1.3 2. 3. 5. 6. 2.1 3.1 5.1 6.1 1. 1.1 For more information on national AfT projects, see Belize’s National Aid for Trade Strategy: Bridging the Gap in Development Assistance, 2011. Assistance, Bridging the Gap in Development Strategy: Trade Aid for National see Belize’s AfT projects, For more information on national ANNEX III/ National Projects with Implications ( B eli z e a 80 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

(continued on next page) ype of A ssistance T Technical advisory services Technical Legal drafting services Legal advisory services National dialogue Capacity building Infrastructure investment Auditing services Capacity building in data collection methods advisory services Technical „ „ „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ „ „ T ) Complete a gap analysis for laws, policies and standards at the national level Complete a gap analysis for laws, Develop a national regulatory framework to govern the utilization of renewable and alternative energy sources. ability to comply with EU General Food Law and Feed Food Regulation and US Food Safety Assess State’s and prepare technical assistance project to upgrade capacity to comply. Act, Modernization Improve/upgrade physical infrastructure for testing. for metrology). Procure equipment (e.g., Provide staff training. Perform external auditing of laboratory facilities. Build capacity to collect and analyse services sector data. policies and standards at the national level. Complete a gap analysis for laws, „ „ „ „ „ „ „ „ „ Projects/ A ctivities Projects/ A ctivities „ „ „ „ „ „ „ „ „ continued Information and Communication Technologies Information and Communication Improved access to E-commerce platforms Technologies Information and Communication Improved access to E-commerce platforms Energy Accelerated development and use of renewable and alternative energy sources Sanitary and Phytosanitary Measures Strengthened national oversight of SPS compliance Quality Infrastructure Enhanced efficiency of quality infrastructure Services Improved capacity to gather and analyse services data O utcomes O utcomes ana 2. 2.1 2. 2.1 3.1 5.1 6.1 7.1 3. 5. 6. 7. ANNEX III/ National Projects with Implications ( G u y Haiti Annexes :: 81

(continued on next page) Legal drafting services Capacity building for customs officials Website Legal advisory services National dialogue Capacity building Infrastructure investment Auditing services Capacity building in data collection methods advisory services Technical National consultations „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ „ „ „ „ T ) Develop a national regulatory framework to govern the utilization of renewable and alternative energy sources. risk management business processes, Provide training to customs officials and brokers on ICT, and valuation. classification, advance ruling, rules of origin, post audit clearance, techniques, Develop and upgrade customs web site. Assess ability to comply with EU General Food Law and Feed Food Regulation and US Food Safety and prepare technical assistance project to upgrade capacity to comply. Act, Modernization Improve/upgrade physical infrastructure for testing. for metrology). Procure equipment (e.g., Provide staff training. Perform external auditing of laboratory facilities. Build capacity to collect and analyse services sector data. develop brands and programmes to promote develop inspection regime, assess needs, Conduct surveys, brands. „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ „ „ continued Energy Accelerated development and use of renewable and alternative energy sources Trade Facilitation Trade Strengthened capacity of customs officials Improved dissemination of public information by customs Sanitary and Phytosanitary Measures Strengthened national oversight of SPS compliance Quality Infrastructure Enhanced efficiency of quality infrastructure Services Improved capacity to gather and analyse services data Sector Development Private Increased international recognition of national brands O utcomes 3. 3.1 4.1 5.1 6.1 7.1 8.1 4. 4.2 5. 6. 7. 8. ANNEX III/ National Projects with Implications ( Haiti 82 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

(continued on next page) Technical advisory services Technical Legal drafting services Legal advisory services National dialogue Capacity building Infrastructure investment Auditing services Capacity building in data collection methods advisory services Technical National consultations „ „ „ „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ „ „ „ T ) Complete a gap analysis for laws, policies, and standards at the national level. policies, Complete a gap analysis for laws, Develop a national regulatory framework to govern the utilization of renewable and alternative energy sources. Assess ability to comply with EU General Food Law and Feed Food Regulation and US Food Safety and prepare technical assistance project to upgrade capacity to comply. Act, Modernization Improve/upgrade physical infrastructure for testing. for metrology). Procure equipment (e.g., Provide staff training. Perform external auditing of laboratory facilities. Build capacity to collect and analyse services sector data. develop brands and programmes to promote develop inspection regime, assess needs, Conduct surveys, brands. „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ „ continued b Information and Communication Technologies Information and Communication Improved access to E-commerce platforms Energy Accelerated development and use of renewable and alternative energy sources And Phytosanitary Measures Sanitary Strengthened national oversight of SPS compliance Quality Infrastructure Enhanced efficiency of quality infrastructure Services Improved capacity to gather and analyse services data Sector Development Private Increased international recognition of national brands O utcomes 2. 2.1 3.1 5.1 6.1 7.1 8.1 3. 5. 6. 7. 8. For more information on national AfT projects, see Jamaica’s National Aid for Trade Strategy: Partnerships Towards Sustained Economic Growth and Development through Trade, 2011. Trade, Sustained Economic Growth and Development through Towards Partnerships Strategy: Trade Aid for National see Jamaica’s AfT projects, For more information on national ANNEX III/ National Projects with Implications ( J amaica b Annexes :: 83

(continued on next page) Technical advisory services Technical advisory Technical services and capacity building in logistics hydrographic management, maritime radio- services, communication navigational planning Seed investment advisory services Technical advisory services Technical Legal drafting services Legal advisory services National dialogue Capacity building Infrastructure investment Auditing services advisory services Technical „ „ „ „ „ „ „ „ „ „ „ „ ype of A ssistance „ „ „ „ „ „ „ „ „ „ „ „ T ) Develop an action plan to promote intermodal services. Develop new methods to improve efficiency of terminal and container facilities. Carry out feasibility study on dredging – deepening and widening of channels. Extend berths. Update hydrographic and navigational maps. Install port reception facilities for waste generated by ships. Install new and upgrade existing aids to navigation. and standards at the national level. policies, Complete a gap analysis for laws, Develop the national regulatory framework to govern the utilization of renewable and alternative energy sources. Assess ability to comply with EU General Food Law and Feed Food Regulation and US Food Safety and prepare technical assistance project to upgrade capacity to comply. Act, Modernization Improve/upgrade physical infrastructure for testing. for metrology). Procure equipment (e.g., Provide staff training. Perform external auditing of laboratory facilities. Develop national trade policy. „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ continued Maritime Transport Improved efficiency and reduced cost of maritime transport Information and Communication Technologies Information and Communication Improved access to E-commerce platforms Energy Accelerated development and use of renewable and alternative energy sources Sanitary and Phytosanitary Measures Strengthened national oversight of SPS compliance Quality Infrastructure Enhanced efficiency of quality Infrastructure Sector Development Private Strengthened support to national trade-related priorities O utcomes 1. 1.1 2.1 3.1 5.1 6.1 8.1 1.2 1.3 2. 3. 5. 6. 8. ANNEX III/ National Projects with Implications ( S uriname 84 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat Technical advisory services Technical Legal drafting services Legal advisory services National dialogue Capacity building Infrastructure investment Auditing services advisory services Technical „ „ „ „ „ „ „ „ ype of A ssistance T „ „ „ „ „ „ „ „ ) Complete a gap analysis for laws, policies, and standards at the national level. policies, Complete a gap analysis for laws, Develop the national regulatory framework to govern the utilization of renewable and alternative energy sources. Assess ability to comply with EU General Food Law and Feed Food Regulation and US Food Safety and prepare technical assistance project to upgrade capacity to comply. Act, Modernization Improve/upgrade physical infrastructure for testing. for metrology). Procure equipment (e.g., Provide staff training. Perform external auditing of laboratory facilities. and chocolate industries. cocoa, fashion, entertainment, Build productive capacity in film, Develop a fashion district. „ „ „ „ „ „ „ „ „ Projects/ A ctivities „ „ „ „ „ „ „ „ „ continued c obago Energy Accelerated development and use of renewable and alternative energy sources And Phytosanitary Measures Sanitary Strengthened national oversight of SPS compliance Quality Infrastructure Enhanced efficiency of quality Infrastructure Services Increased diversification of exports Information and Communication Technologies Information and Communication Improved access to E-commerce platforms O utcomes 3. 3.1 5. 5.1 6. 6.1 7. 7.1 2.1 2. For further information on national Aid for Trade projects, see Trinidad and Tobago National Aid for Trade Strategy, 2012, mimeo. 2012, Strategy, Trade Aid for National Tobago and Trinidad see projects, Trade Aid for For further information on national ANNEX III/ National Projects with Implications ( T rinidad and c Annexes :: 85

(continued on next page) Assumptions about risks Assumptions about risks No major contraction in Regional economic output Stability in macro-economic environment Favourable investment climate Favourable regulatory environment Strong business case for new providers Validation of the recommendations by regional Validation organisations and Member States Attractive PPP structure Sufficient demand Commitment to invest in implementation of recommendations in studies/reports Objective Means of Verification Means of Verification WTO, CARICOM Secretariat and national statistics reports WTO, Reports by importers and exporters using maritime transport National surveys Government registration bureaus Bank Doing Business Report World Press releases, government reports and meeting minutes Press releases, Doing Global Enabling Index, Logistics Performance Index, Business Government programmes or policy reforms Government statistics IDP lending Ministry of finance expenditure reports, PPPs programmes, Government reports Government statistics Upgrade Key Economic Infrastructure Upgrade

Caribbean Broadband Transformation Strategy Transformation Caribbean Broadband

Modernisation of Maritime Cargo and Passenger Services in the OECS

Modernisation of Caribbean Freight Logistics, Maritime Transport and Trade Facilitation Trade and Transport Maritime Modernisation of Caribbean Freight Logistics, Increased volume of intra-regional trade via maritime transport Improved performance of on-time delivery of traded goods via maritime transport Decreased cost of broadband services Number of service providers Number of business licenses Increase in competitiveness ranking Indicators Indicators Number of dissemination events, workshops, and workshops, Number of dissemination events, dialogues for study Increase in rankings for infrastructure and trade facilitation Number of reforms enacted Increased passenger traffic in the Southern Caribbean Increased investment in fleet assessments and Number of strategies, roadmaps produced Increased data Outcome 1 Improved efficiency and reduced and efficiency Improved cost of maritime transport Outputs Project 1.1 Modernisation of Caribbean Freight and Transport Maritime Logistics, Facilitation Trade Project 1.2 Modernisation of Maritime Cargo and Passenger Services in the OECS Outcome 1 competition in deliveryIncreased of broadband services to promote access increased Outputs Project 2.1 Caribbean Broadband Transformation Strategy A NN E X I V/ Matrix Log Framework – Regional Aid for Trade 86 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat Ability of private sector to mobilise resources for increasing capacity and production A ssumptions about risks MSMEs or SMEs qualify for trade financing Assumptions about risks Quality of statistics reported Feasibility of renewable and alternative sources erification Objective M eans of V Surveys, government statistics Surveys, Government statistics Government reports, IDP projects Government reports, Government reports Means of Verification International, regional or national statistics bureaus International, Government reports Government reports

Private Sector Innovation in the Caribbean )

Caribbean Renewable and Alternative Energy Roadmap Caribbean Renewable and

continued Enhancing Competitiveness and Facilitating Trade Expansion and Diversification Trade Enhancing Competitiveness and Facilitating I ndicators Increased number of private sector firms exporting Increased volume of exports from private sector firms Number of innovation mechanisms Number of trade financing mechanisms Increase/decrease in energy statistics (percentage of renewable sources) Indicators Number of strategies and assessments produced Number of mechanisms developed O utcome 1 production and Strengthened sector capacity of the private export Outcome 1 development and Accelerated and alternative use of renewable sources energy Outputs Project 3.1 Alternative Caribbean Renewable and Energy Roadmap Outputs Project 8.1 Private Sector Innovation in the Caribbean ANNEX IV/ Matrix ( Log Framework – Regional Aid for Trade Annexes :: 87 1.7 0.1 0.1 1.9 1.2 7.2 0.4 8.7 6.5 3.1 0.1 9.7 2009

(continued on next page) 0.5 0.0 0.5 0.1 0.0 0.5 0.6 9.6 1.0 0.0 10.6 2008 0.2 0.0 0.0 0.2 0.0 0.0 0.0 4.7 0.1 0.0 4.8 2007 D isbursements 2.3 0.0 2.4 0.0 0.0 0.0 3.2 0.2 3.4 2006 5.3 0.1 0.0 5.3 1.0 0.4 0.0 1.4 0.6 0.7 0.0 1.3 2002–05 avg. 0.0 0.0 0.2 1.5 0.6 2.2 5.5 0.0 15.1 15.1 18.5 24.0 2009 0.5 0.0 0.5 0.0 0.5 0.3 0.0 14.3 14.9 12.7 13.0 2008 0.2 0.0 0.0 0.2 0.1 3.2 0.1 0.0 3.3 16.0 16.1 Data extracted from OECD-DAC CRS database Data extracted 2007 Commitments Aid for trade to CARICOM, USD millions (2009 Constant) to CARICOM, Aid for trade 0.1 0.0 0.1 3.8 0.0 3.8 7.7 5.7 13.4 2006 2.6 0.0 0.0 2.7 0.4 0.0 0.0 0.5 9.0 0.2 0.0 9.2 2002–05 avg. Antigua and Barbuda Building Productive Capacity Economic Infrastructure Trade Policy & Regulations Trade Antigua and Barbuda Total Antigua and Barbuda Barbados Building Productive Capacity Economic Infrastructure Trade Policy & Regulations Trade Barbados Total Belize Building Productive Capacity Economic Infrastructure Trade Policy & Regulations Trade Belize Total A NN E X V/ Flows to Caricom Countries Aid for Trade 88 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat 0.3 0.0 2.1 0.2 0.3 0.0 2.6 1.0 11.6 11.1 22.9 41.8 18.4 2009

(continued on next page) 6.7 4.6 0.1 0.0 1.7 0.2 0.1 0.0 2.0 1.3 11.4 36.0 –1.0 2008 6.1 4.6 0.3 0.6 0.1 0.0 0.7 9.1 0.2 1.0 11.0 2007 D isbursements 5.6 1.0 0.0 6.6 0.7 0.1 0.1 0.8 3.2 0.2 2.4 2006 9.1 1.5 0.0 4.9 1.1 0.0 6.0 6.5 0.3 0.4 10.6 2002–05 avg. 8.4 0.1 0.0 0.0 8.5 0.0 0.0 0.0 1.2 13.1 13.1 30.3 13.4 2009 5.5 0.1 1.1 0.0 6.7 1.4 0.0 1.8 0.0 3.3 5.9 0.9 48.4 2008 0.6 6.3 0.6 7.5 0.1 0.1 0.0 0.2 0.9 74.5 24.9

Data extracted from OECD-DAC CRS database Data extracted 2007 Commitments Aid for trade to CARICOM, USD millions (2009 Constant) to CARICOM, Aid for trade ) 5.8 0.2 0.0 6.0 0.8 0.0 0.0 0.8 0.0 2.1 10.3 2006

continued 7.4 7.5 0.0 5.3 3.0 0.2 8.5 9.5 0.4 15.0 32.9 2002–05 avg. Dominica Building Productive Capacity Economic Infrastructure Trade Policy & Regulations Trade Trade-related Adjustment Trade-related Dominica Total Grenada Building Productive Capacity Economic Infrastructure Trade Policy & Regulations Trade Trade-related Adjustment Trade-related Grenada Total Grenada Guyana Building Productive Capacity Economic Infrastructure Trade Policy & Regulations Trade ANNEX V/ Flows to Caricom Countries ( Aid for Trade Annexes :: 89 1.2 0.9 0.9 3.4 0.2 61.2 63.1 14.9 51.9 68.5 2009 100.9 165.1

(continued on next page) 1.1 1.9 0.0 1.1 3.1 36.3 37.7 41.0 79.9 16.7 56.5 75.1 2008 0.1 2.4 0.6 0.8 10.3 20.8 39.3 60.2 15.9 24.1 42.4 2007 D isbursements 5.8 9.5 0.0 5.0 2.7 4.6 2.9 25.5 35.0 18.0 25.6 2006 7.1 5.4 0.0 8.7 9.7 2.7 0.6 6.0 14.1 19.5 21.1 2002–05 avg. 2.2 1.0 0.0 1.6 0.8 44.9 47.5 17.9 21.0 40.0 2009 285.3 335.0 1.9 8.9 2.7 0.0 1.4 3.4 55.2 33.3 96.1 23.9 35.5 2008 131.3 1.4 0.6 0.5 24.8 43.4 69.6 22.7 30.0 53.2 10.9 2007 Data extracted from OECD-DAC CRS database Data extracted 100.3 Commitments Aid for trade to CARICOM, USD millions (2009 Constant) to CARICOM, Aid for trade ) 0.3 3.9 1.5 3.3 12.4 45.2 39.7 85.2 13.8 19.2 16.5 2006

continued 0.0 9.9 1.4 1.1 6.2 42.9 46.8 39.7 86.5 24.1 35.4 2002–05 avg. Guyana Total H aiti Building Productive Capacity Economic Infrastructure Trade Policy & Regulations Trade H aiti Total Jamaica Building Productive Capacity Economic Infrastructure Trade Policy & Regulations Trade Trade-related Adjustment Trade-related Jamaica Total Montserrat Building Productive Capacity Economic Infrastructure ANNEX V/ Flows to Caricom Countries ( Aid for Trade 90 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat 5.6 9.2 2.3 0.7 0.1 3.1 0.3 0.3 0.0 0.3 17.8 18.4 11.8 2009

(continued on next page) 0.0 4.3 0.4 0.0 0.3 0.7 0.6 0.0 0.0 0.6 12.1 12.6 17.0 2008 0.7 2.0 0.8 0.0 0.8 2.7 3.7 0.2 6.5 9.8 0.1 2007 D isbursements 0.0 7.6 5.2 5.2 1.5 2.3 0.0 3.8 2.8 0.3 2006 0.1 6.7 2.2 2.2 3.8 4.2 0.0 7.9 3.1 1.3 2002–05 avg. 0.0 2.4 0.0 0.0 0.0 0.0 0.6 0.0 0.0 0.1 0.8 0.3 1.4 2009 0.0 4.9 0.0 0.4 0.3 0.6 6.3 0.1 0.9 0.8 8.1 0.2 0.6 2008 0.0 0.1 0.1 7.6 0.4 1.3 9.3 9.3 0.1 11.4

Data extracted from OECD-DAC CRS database Data extracted 2007 Commitments Aid for trade to CARICOM, USD millions (2009 Constant) to CARICOM, Aid for trade ) 0.0 0.0 0.0 8.7 0.3 0.0 9.0 0.0 19.8 12.6 2006

continued 0.1 7.4 1.8 1.8 3.8 5.7 0.0 9.5 5.5 1.4 2002–05 avg. Trade Policy & Regulations Trade Montserrat Total Montserrat St. Kitts-Nevis Building Productive Capacity Economic Infrastructure Trade Policy & Regulations Trade St. Kitts-Nevis Total St. Lucia Building Productive Capacity Economic Infrastructure Trade Policy & Regulations Trade Trade-related Adjustment Trade-related St. Lucia Total St. Vincent & Grenadines St. Building Productive Capacity Economic Infrastructure ANNEX V/ Flows to Caricom Countries ( Aid for Trade Annexes :: 91 0.1 0.0 0.4 1.5 0.2 0.1 0.0 1.8 12.2 21.4 27.4 49.2 2009 434.6 0.0 0.0 0.3 0.4 0.0 0.1 0.5 17.6 17.1 22.2 39.6 2008 291.7 0.1 0.0 3.7 0.1 3.9 10.1 12.4 16.1 28.5 2007 181.5 D isbursements 0.0 3.0 4.6 0.2 0.0 4.8 2.2 0.1 0.0 2.3 2006 106.2 0.0 4.4 3.7 0.9 0.0 4.6 2.8 0.1 0.3 3.3 101.5 2002–05 avg. 0.4 0.0 2.1 0.9 0.0 0.7 0.0 0.0 59.9 60.8 15.0 15.7 2009 564.4 0.2 0.2 1.2 0.4 0.1 13.3 11.9 25.6 14.4 14.5 2008 315.3 0.8 7.8 0.0 0.0 0.1 10.1 16.4 24.2 12.0 12.2 2007 Data extracted from OECD-DAC CRS database Data extracted 317.7 Commitments Aid for trade to CARICOM, USD millions (2009 Constant) to CARICOM, Aid for trade ) 0.0 6.6 0.0 0.0 6.6 1.8 0.0 0.0 1.8 12.6 2006 190.8

continued 0.0 7.0 0.0 0.8 0.3 12.3 11.8 24.1 15.2 16.3 266.7 2002–05 avg. Trade Policy & Regulations Trade Trade-related Adjustment Trade-related St. Vincent & Total Grenadines Suriname Building Productive Capacity Economic Infrastructure Trade Policy & Regulations Trade Suriname Total Trinidad and Tobago Trinidad Building Productive Capacity Economic Infrastructure Trade Policy & Regulations Trade Trade-related Adjustment Trade-related Total and Tobago Trinidad Grand Total Grand ANNEX V/ Flows to Caricom Countries ( Aid for Trade 92 :: Caribbean Community: Regional Aid for Trade Strategy 2013–2015 – Caribbean Community Secretariat

ANNEX VI/ maintained with trade authorities. Below is Methodology the schedule of the consultations:

January 18, 2012 – St. Vincent and the Grenadines The Guidelines for Developing National Aid January 20, 2012 – St. Kitts and Nevis for Trade Strategies, a Technical Note pre- January 23, 2012 – Dominica pared by the IDB, was adjusted to apply to January 25, 2012 – Antigua and Barbuda January 27, 2012 – Montserrat the Caribbean regional context and served January 30, 2012 – Saint Lucia as the guide for the development of the February 1, 2012 – Suriname February 3, 2012 – Barbados Caribbean Community Regional Aid for February 13, 2012 – Grenada Trade Strategy. February 23, 2012 – Jamaica February 27, 2012 – Trinidad and Tobago (Meeting with consultant drafting Desk Review the national strategy) A desk review was undertaken with a view March 19, 2012 – Belize to arriving at an appreciation of, March 23, 2012 – Haiti and Trinidad and Tobago inter March 28, 2012 – Guyana alia, the macroeconomic environment of CARICOM, the trade patterns and struc- Stakeholders included public and private ture, and sectoral and cross-cutting issues. sector representatives, regional and sub- Numerous documents were examined in regional organisations, civil society, and this objective, including studies within the academia. An average of 35 participants at- context of the RPTF work programme, re- tended the various one-day national con- search papers, needs assessments and audits, sultations, with the afternoon sessions selected CARICOM Secretariat work pro- reserved for bilateral discussions. Moreover, grammes, national development and sec- in the cases of Jamaica and Belize, their re- toral strategies. cent experience in completing national AfT Strategies greatly contributed to the Diagnostic Tools Regional process69. A combination of diagnostic tools was Secondly, benchmarking using cross- used to identify the binding constraints to country indicators such as Logistics CARICOM taking advantage of the various Performance Index, Cost of Doing Business trade opportunities available. Firstly, each ranking and Line Shipping Connectivity Member State was requested to designate a Index proved to be a very useful tool in de- national AfT focal point to act as the conduit termining areas where binding constraints through which national positions would be to trade expansion and export diversifica- channelled to the CARICOM Secretariat. In tion exists. 69 Belize’s National Aid for collaboration with these focal points and the A Caribbean Aid for Trade Strategy Trade Strategy: Bridging the Gap in Development Regional trade policy adviser assigned to the Questionnaire was also disseminated Assistance and Jamaica’s CARICOM Secretariat under the Hubs and to Member States to elicit information. National Aid for Trade Strategy: Partnerships Spokes project, broad-based consultations However, the CARICOM Secretariat con- through Sustained were held on the CARICOM Aid for Trade sidered the responses insufficient, hence the Economic Growth and Development through Trade Strategy took place in all Member States, decision to undertake national consulta- were launched in 2011. except the Bahamas where dialogue was tions in each Member State. Annexes :: 93

ANNEX VII/ Aid For Trade Focal Points

Country Name Designation Organisation Antigua and Barbuda Colin Murdoch Permanent Secretary Ministry of Trade, Industry and Commerce The Bahamas Simon Wilson Director of Economic Planning Ministry of Finance Barbados Shennel Richards Senior Economist Ministry of Foreign Affairs and Foreign Trade Belize John Rivero Aid for Trade Focal Point Ministry of Foreign Affairs and Foreign Trade Dominica Wellsworth Bethelmie Director of Trade Ministry of Foreign Trade Grenada Kahil Lewis-Smith Senior Trade Officer Ministry of Environment, Foreign Trade and Export Development Guyana Neville Totaram NACEN Coordinator Ministry of Foreign Trade and International Cooperation Haiti Marc Franck Larose Deputy Director (Direction du Ministry of Commerce and Industry Commerce Extérieur Jamaica Marcia Thomas Under Secretary Ministry of Foreign Affairs and Foreign Trade Foreign Trade Montserrat Claude E S Hogan Director of Trade Office of the Chief Minister, Regional Affairs and Trade St Kitts and Nevis Andrew Satney Trade Policy Advisor Ministry of Finance, Sustainable Development and Human Resource Development Saint Lucia David Jordan Director for International Trade Ministry of External Affairs, International Trade and Investment and Investment St. Vincent and the Clarence Harry Director of Trade Ministry of Foreign Affairs, Foreign Trade and Grenadines Consumer Affairs Suriname Imro San A Jong Policy Advisor Ministry of Trade and Industry Trinidad and Tobago Norris Herbert Director of Trade Ministry of Foreign trade and Industry OECS Secretariat Alicia Stephen Programme Officer OECS Secretariat Trade Policy Unit