The Project provides technical assistance to the OECS Secretariat and the independent member territories of Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, Saint Lucia, and St. Vincent and the Grenadines. The Overseas British Dependent Territories of Anguilla, the British Virgin Islands, and Montserrat are also expected to receive benefits from the Project, notwithstanding the fact that the United, Kingdom handles most of their international trade relations.

Project assistance will focus on strengthening several aspects of trade policy management, including policy formulation and co-ordination, negotiations and the discharge of obligations under various trade agreements. It is anticipated that the main beneficiaries will comprise the public and private sectors at the national and sub-region levels, Including the Ministries of Trade, the OECS Secretariat, and national and regional private sector trade associations.

The Project also addresses other issues relating to international trade such as foreign Investment intellectual property rights and services; and further seeks to develop Ministerial coordinating mechanisms to ensure that a wide range of international trade issues are handled effectively.

The activities of the Project will be coordinated closely with initiatives of the CARICOM Secretariat, and it is anticipated that capacity of the OECS Secretariat will be strengthened to enable it to participate more fully in the CARICOM Regional Negotiating Machinery (CRNM). Assistance will also be provided to OECS member countries in an effort to accelerate the pace of implementation of the regional single market and economy.

The OECS Secretariat will also be strengthened to:

• Increase its ability to access technical assistance and international sources of funds;
• Facilitate the participation of the sub-region in international trade identifying possible trade opportunities emanating from trade agreements;
• Enable member countries to become more pro-active in dealing with international trade issues.

Project Output/Impact

The expected long-term impact of the Project includes:

• Increased participation of OECS member states in reciprocal, rules-based trade agreements;
• Increased trade and investment as a result of greater participation in the global market economy.
• The expected medium term output, as a result of project activities include:
• Strengthened capacity of the OEGS to maintain a coordinated strategy for managing international trade affairs;
• Enhanced regional and international trade agreements;
• Strengthened OECS positions going into trade negotiations;
• Strengthened support role of the Secretariat in assisting member states to fulfill trade obligations and participate in trade negotiations.The feasibility of a "Trade Negotiation Support Unit" (TNSU) located within the OECS Secretariat is also to be examined;
• Short-term training opportunities for the staff of the Ministries of Trade, the OECS Secretariat, and private sector associations in appropriate trade disciplines.

The Project will be implemented over a five-year period at a total cost of Cdn$3 million. CIDA has contracted the consulting firm of Deloitte Touche Tohmatsu Emerging Markets to execute the activities of the Project, in collaboration with the OECS Secretariat and the Governments of the OECS member countries.

Update on the Project

During the first quarter of 2000, the project conducted a needs assessment of the OECS Secretariat and of six OECS member states. The information obtained has been used to develop the Implementation Plan (PIP) for the Project and its current Annual Work Plan (AWP).

A Project Committee (inclusive of Member State representatives) was also established, and R has reviewed and approved the PIP and the AWP.

Implementation of the AWP (April 2000 to March 2001) has commenced. The following activities are scheduled within a flexible timetable to take account of absorption rates:

• Capacity development (OECS Secretariat and Member states).
• Evaluating and reviewing operations/functions/delivery of ministries responsible for trade in the OECS countries. This is essential in order to assess the means of improving co-ordination and communication between member states, as well as between stakeholders and ministries of government involved in trade facilitation.
• Strengthening the Legal capacity of the OECS Secretariat to facilitate compliance with WTO legal requirements by member states. This will necessitate technical (legal) assistance to the Secretariat in order to enhance its ability to assist member states in meeting their WTO obligations.
• Special retreats (two-day) are also proposed for senior level personnel to guide the formulation of Sub-regional Trade Policy framework.

In light of the increasing importance of the services sector to the economies of the OECS member states, as well as the formal recognition of Trade in Services as a vital aspect of the international trade environment which became subject to international regulations under the GATS, the Project Management Committee considers the Services Workshop a matter of urgency, hence the scheduling of this activity early in the current AWP.