March 2010

Trade Policy Unit assists member states to phase out export subsidy programmes

On March 10th The Trade Policy Unit and the Geneva Mission convened a videoconference with officials of six Member states to review the implementation of obligations on the extension of the transitional period for the phase out of export contingent subsidy programmes, responses to questions posed by the US on the phase-out of these programmes and the steps towards notification of the programmes by June 30th, 2010.

The meeting agreed that Member States that have not informed beneficiaries that the export subsidies will be eliminated by 2015 would to do so and provide evidence that this action has been taken. Respective Member States will respond to the questions posed by the US in advance of a WTO meeting in April. The Trade Policy Unit will review draft responses to the questions posed by the US by April 9, 2010. A working session to prepare for the June 30, 2010 notification will be held on May 3 – 4, 2010 in Saint Lucia. The Trade Policy Unit will assist member states to prepare their notifications to the WTO. The fact that export subsidy programmes are not compatible with the WTO Agreement means OECS governments must utlise alternative measures to support their enterprises.

OECS Member states continue to work on a new agreement with Canada

Trade officials from OECS member states continue to participate in the meetings held in advance of the second round of negotiations with Canada which will be held in Barbados on March 29-31st. These meetings discussed legal and institutional issues, trade related issues such as competition policy and those related to market access such as rules of origin, customs procedures, agriculture and fisheries. The Trade Policy Unit in collaboration with other units of the Secretariat provided technical advice to officials for these meetings. The new agreement will set out the conditions under which OECS manufacturers, farmers and service providers will trade with Canada.

OECS-US trade relations discussed

The Trade Policy Unit shared OECS perspectives on OECS trade relations with the United States at a seminar on trade relations between the United States and Latin America and the Caribbean held in Venezuela on 22-23rd March 2010 organised by Latin America and Caribbean Economic System (SELA). The seminar noted that trade relations were important for the countries and that while market access may not be a high priority for the Obama administration trade related initiatives such as the Buy American Provisions and the Climate change bill can have negative effects on trade with the region. It was agreed that a strengthening and re-launching of Latin America – US trade relations based on a new type of dialogue should complement regional integration efforts. Efficient cooperation mechanisms are required to build capacity and take advantage of the potential benefits of access to this important market. It was recommended that SELA continue to monitor and analyse economic and commercial relations between Latin America and the Caribbean and evaluate the possible implications of US economic policy decisions on the region.

The next issue of UpDate will treat with regional and international trade issues.

Email contact: tpu@oecs.org