RNM Update

RNM UPDATE
April 03, 2001
Prepared by the Communications Division of the Caribbean Regional Negotiating

Machinery (RNM), this electronic newsletter focuses on the RNM, trade
negotiation issues within its mandate and related activities.
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- WTO DEVELOPMENTS
- ACP JOINT MINISTERIAL TRADE COMMITTEE MEETING IN SOUTH
AFRICA
- RNM TRAINING WORKSHOP ON RULES OF ORIGIN
- NEWS BRIEFS
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WTO DEVELOPMENTS
Trade in Services
On 28 March 2001 the Special Session of the Council for Trade in Services
adopted "Guidelines and Procedures for the Negotiation of Trade in Services"
(S/L/93), thereby setting the framework for negotiation of further services
liberalisation in keeping with Article XIX of the General Agreement on Trade in
Services (GATS). After long debate and four document revisions, this agreement
takes into account various proposals advanced by developing countries, including
CARICOM, in specifying the agreed Objectives and Principles, Scope, and
Modalities and Procedures for future negotiations on Services to advance rule
formulation and expand specific commitments in the sector.
The Objectives and Principles stipulate that negotiations shall be conducted on the
basis of progressive liberalisation; they recognise the right of Members to
regulate, and to introduce new regulations, on the supply of services. They specify
moreover that negotiations shall aim to increase the participation of developing
countries in trade in services and reaffirm that there shall be appropriate flexibility
for developing countries. The process of liberalisation shall take place with due
respect for national policy objectives, the level of development and the size of
economies of individual Members, both overall and in individual sectors, with
due consideration given to the needs of small and medium-sized service suppliers,
particularly those of developing countries.
With respect to Scope, while there shall be no a priori exclusion of any service
sector or mode of supply, special attention shall be given to sectors and modes of
supply of export interest to developing countries. MFN exceptions shall be subject
to negotiation but appropriate flexibility shall be accorded to individual
developing country Members. Negotiations on Safeguards are to completed by 15
March 2002. Members shall also aim to complete negotiations on Articles VI.4
(Qualification Requirements and Procedures, Technical Standards and Licensing
Requirements), XIII (Government Procurement) and XV (Subsidies), prior to the
conclusion of negotiations on specific commitments.
The Modalities and Procedures stipulate inter alia that the negotiations shall be
conducted in Special sessions of the Council for Trade in Services and that
liberalisation shall be advanced through bilateral, plurilateral or multilateral
negotiations, the main method of negotiation being the request-offer approach.
Individual developing country Members shall be accorded appropriate flexibility
for opening fewer sectors, liberalising fewer types of transactions, progressively
extending market access in line with their development situation and, when
making access to their markets available to foreign service suppliers, attaching to
such access conditions in keeping with Art. IV of GATS (which addresses
Increasing Participation of Developing Countries). Based on mutually agreed
criteria, account shall be taken and credit shall be given in the negotiations for
autonomous liberalisation under by Members since previous negotiations.
Moreover, the Council for Trade in Services in Special Sessions shall continue to
carry out an assessment of trade in services in overall terms and on a sectoral
basis with reference to the objectives of GATS and Art. IV in particular, and
negotiations shall be adjusted in the light of the results of the assessment.
Technical assistance shall be provided to developing country Members, on
request, in order to carry out national/regional assessments. In implementing Art.
IV consideration shall be given to the needs of small service suppliers of
developing countries. Finally it is agreed that the proliferation of subsidiary
bodies should be avoided to the maximum extent possible and meetings should be
scheduled taking into account the needs of smaller delegations.
Agreement on the Guidelines and Procedures coincides with the completion of the
stocktaking exercise by the Special Session of the Services Council at its meeting
of March 28-30, and marks the fulfilment of a key element in the Services
negotiating mandate opening the way for governments to move forward with rule
making and get into the market access negotiation phase. Negotiating sessions
will be held in May, July and October, during which the Council, in addition to its
standing agenda, will consider in detail the more than 70 negotiating proposals
submitted. Further meetings would be held in December and March 2002, at
which point the Council would review progress in the negotiations.
The WTO Secretariat has produced a booklet on trade in services entitled 'GATS
Fact and Fiction', which is available at
http://www.wto.org/english/tratop_e/serv_e/gats_factfiction_e.htm
Qatar Ministerial
Positions are already polarising as to whether the Fourth WTO Ministerial, to be

held in Doha, Qatar, in November 2001, should be an occasion for launching a
comprehensive new Round of multilateral trade negotiations, an issue which
necessarily influences the preparatory process for the Ministerial. Developed
countries are arguing in essence that a new Round is needed to prevent
backsliding into protectionism. The European Union, the major proponent of a
new Round, argues with support from Japan for a comprehensive agenda, on the
ground that this offers the best possibilities for trade-offs and will facilitate
concessions in the agricultural sector, which is heavily subsidised. Faced with
demands from developing countries to make progress on implementation issues,
which is their high priority concern, developed countries are attempting to tie
progress in this area to the holding of a new Round. Examples of difficulties
facing developing countries in implementation relate to the TRIPS, Sanitary and
Phytosanitary (SPS) and textiles agreements.
The WTO Director-General, Mike Moore, has also been actively promoting a new
Round, which has raised questions as to whether it is correct and proper for him
and any other part of the Secretariat to promote a subject over which there is as
yet no consensus, and in fact there are serious differences among the membership,
and it has been suggested that this compromises the neutrality of the WTO
Secretariat.
The position of most developing countries is that they cannot support a new
Round unless implementation issues are resolved. Indeed, they generally do not
regard a new Round as a priority. For them the multilateral trade agenda is
already packed with mandated negotiations on Agriculture and Services
underway, mandated reviews and confidence-building initiatives, even as
Implementation issues related to Uruguay Round commitments continue to be a
major concern. They consider that the Ministerial meeting should review and
assess ongoing work deriving from the Singapore and Geneva Ministerial
mandates and to issue new guidelines for further work. In this context
Ambassador Ransford Smith of Jamaica has argued at a conference organised last
month by the Third World Network that, "We don¹t need a new Round now
because a major and significant plateau in multilateral trade liberalisation was
attained five years ago and the commitments assumed in that Round are still being
implemented by a large number of countries... we do not believe that a
comprehensive negotiating Round with a slew of new issues will be a desirable
development".
Most developing countries, particularly the smaller ones, already consider the
trade agenda overloaded and do not want to take on more commitments than they
can digest. They will be facing pressures to include in such a negotiation
investment, competition policy, government procurement (subjects currently
discussed within Working Groups), as well as trade and labour standards, trade
and environment and other "trade-related" new issues. The trade-related prefix
could eventually be attached to human rights, tax systems, cultural behaviour and
other subjects. Developing countries have been arguing inter alia that they are
still to realise the much-touted benefits of the Uruguay Round; that they gave
away too much in that Round, especially in relation to intellectual property rights;
that the system is not equitable; that issues related to capacity building have not
been addressed sufficiently; and that the internal transparency of the WTO
continues to require overhaul. The challenge in the coming months is for
developing countries to act concertedly in protecting their interests.
ACP JOINT MINISTERIAL TRADE COMMITTEE MEETING IN SOUTH

AFRICA
At the invitation of the Government of South Africa 18 ACP Ministers, who are
members of the Joint Trade Ministerial Committee under the ACP-EU Cotonou
Agreement, will attend a meeting from from April 10 - 11 on the theme of
'Perspectives for the ACP on Negotiations with the European Union'. South
Africa's intention is to share with ACP Ministers the experience of negotiating
with the EU their bilateral free trade agreement on Trade, Development and
Cooperation. Negotiations for this agreement were formally initiated in June 1995
and concluded at the Berlin Summit of March 1999 opening the way for bilateral
trade to be entirely liberalised over 12 years.
The last afternoon session of the second day is devoted to a 'Meeting of ACP
Ministerial Trade Committee'. At this session Minister Anthony Hylton of
Jamaica is expected to speak to the need for the development of an ACP
negotiating strategy for the negotiations with the EU beginning in September
2002. CARICOM's Council for Trade and Economic Development (COTED)
previously agreed the RNM's proposal for early dialogue with African and Pacific
Ministers on this matter. With the benefit of the RNM's studies, Caribbean
Ministers hope to develop an ACP process for formulating the negotiating
strategy.
Jamaica, St. Lucia and the Dominican Republic are the three Caribbean members
of the Trade Ministerial Committee. The RNM's Chief Negotiator Sir Shridath
Ramphal will also participate in the meeting.
RNM TRAINING WORKSHOP ON RULES OF ORIGIN
Continuing its series of training workshops on trade negotiation subjects funded

through the CRNM/IDB Project, a Training Workshop on Rules of Origin will be
held in Barbados from May 3-5, 2001. The purpose of the Workshop is to:
-provide participants with an appreciation of the structure and content of Rules of
Origin which are being administered in preferential schemes, particularly those in
sub-regional groupings and bilateral arrangements in this Hemisphere;
-provide an overview of the status of the work being undertaken in the WTO and
the WCO (World Customs Organisation) on non-preferential Rules of Origin;
-examine the implications for the region of the uthorized on of general Rules
of Origin;
-equip participants to contribute to the development of the CARICOM negotiating

position on Rules of Origin in the FTAA.
This Workshop is of particular relevance to CARICOM, which has not been directly
involved in the work being undertaken by the WTO and WCO on the uthorized on of
non-preferential Rules of Origin, but which will need to know the implications of these
measures. This Workshop is thus particularly relevant to the work of trade officials,
Customs Administrations, Chambers of Commerce, and the private sector (with special
emphasis on the productive sectors). For further information please contact
mroberts@caribrnm.net
BRIEFS
DR-Haiti Free Trade Talks
The Minister of Industry and Commerce of the Dominican Republic Angel Lockward
announced upon his return from Haiti on March 29 that talks will be held to work
towards the signing of a free trade agreement with the neighbouring country. In Haiti, he
had met with Prime Minister Jean Marie Cherestal and Minister of Industry and
Commerce Stanley Theard on the subject.
DR Free Zones
The director of the Dominican Republic’s National Council of Export Free Zones, Janette
Dominguez, said that the 481 businesses in operation in 2000 generated US$1,018
million, up 14.7% from US$887.3 million in 1999. Of the free zone operations, 52% are
textile operations, 12% services, 6% tobacco plants and 4% footwear companies. In
2000, eight new free zone parks were approved, calling for a RD$331 million investment
and the creation of 38,000 new jobs.
Pro-Cuba Lobby Formed in U.S.
The Cuba Policy Foundation, a new non-partisan, privately-funded U.S. lobby group led
by former State Department officials in Republican Administrations, was announced on
March 28. The Foundation, to be located in Washington D.C.,is advocating an end to the
U.S. ban on trade with Cuba and the complete uthorized on of relations. The Group’s
president Ambassador Sally Grooms Cowal, a former Deputy Assistant Secretary of State
for Inter-American Affairs Under President George Bush and Ambassador to Trinidad
and Tobago under President Clinton, argues that there is a silent majority, including
Cuban Americans, who are not in favour of the current policy and has vowed to counter
the influence gained by Cuban American exiles in the Bush administration. Ambassador
Cowal housed Elian Gonzales and his father last year while they lived in Washington,
D.C. The Group hopes to build support at the grass-roots level by educating people to
what the United States is really missing out on with a failed policy on Cuba. The board
chairman of the foundation is William Rogers, who was Assistant Secretary of State for
Inter-American Affairs under former President Gerald Ford.
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Recipients of RNM UPDATE are uthorized to forward this newsletter to other
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Henry S. Gill
Communications Director/
Team Leader CARICOM Trade Project,
Caribbean Regional Negotiating Machinery (RNM)
”Windmark”, First Avenue, Harts Gap,
Hastings, Christ Church, Barbados
Tel: (246) 430-1673
Fax: (246) 228-5264
http://www.caribrnm.net
* * *
RNM UPDATE
April 12, 2001

Machinery (RNM), this electronic newsletter focuses on the RNM, trade negotiation
issues within its mandate and related activities.
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- FTAA MINISTERIAL DECLARATION

- WTO: THE WAIVER ISSUE
- EU AND USA REACH BANANA AGREEMENT
- HISTORIC OECS TELECOMMUNICATIONS AGREEMENT
- NEWS BRIEFS
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FTAA MINISTERIAL DECLARATION
Trade Ministers from the 34 countries negotiating the Free Trade Area of the Americas
agreement held their Sixth Meeting in Buenos Aires on April 7, 2001. The Ministerial
Declaration issued at the end of the meeting guide upcoming negotiations, which will
continue to follow the general principle that all delegations have the right to present any
text proposals deemed relevant. The following are some key decisions emanating from
the meeting, including those of particular concern to smaller economies:
Date for conclusion of negotiations: Perhaps the major issue facing the meeting was a
proposal championed by Canada, Chile and the USA to advance the deadline for
concluding negotiations from "no later than 2005", as agreed at the December 1994
Miami Summit, to 2003. The Ministers will recommend to the Quebec Summit of Heads
of Government (April 20-22) that FTAA negotiations be concluded no later than January
2005 and entry into force of the agreement should take place as soon as possible
thereafter but no later than December 2005. This decision defeats the 2003 proposal.
CARICOM had earlier expressed a lack of support for any advancement in the date.
Opposition to advancing the deadline also came from the MERCOSUR delegation, in
particular, Brazil.
Negotiations Timetable: Considerable work will have to done by CARICOM within the
next eleven months. The Ministers instructed the Negotiating Group on Market Access to
submit to the Trade Negotiations Committee, in co-ordination with the Negotiating
Group on Agriculture, recommendations on the methods and modalities for tariff
negotiations by April 1, 2002 to be considered by the TNC at its first meeting following
that date, in order to initiate negotiations no later than May 15, 2002. [The US had
originally suggested that submissions be made by November 1, 2001 with negotiations
starting in the second semester of 2002, which CARICOM indicated was not realistic or
attainable]. May 15, 2002 is also stipulated as the deadline for the start of negotiations on
other subjects (Investment, Subsidies, Government Procurement).
Smaller Economies: Concerns of CARICOM and others regarding the smaller

economies dimension of the process were unambiguously addressed. The Ministers not
only reaffirmed their commitment to continue to take into account the differences in the
levels of development and size of economies but also reiterated the importance of
strengthening the productive capacity and competitiveness of the smaller economies, as
well as providing technical assistance and special provisions to enable these economies to
participate in and benefit from the process. Additionally the Trade Negotiations
Committee is required to formulate by November 1, 2001, with the support of the
Consultative Group on Smaller Economies and the Tripartite Committee, some
guidelines or directives on ways of applying the treatment of the differences in the levels
of development and size of economies. The November 1, 2001 deadline represents a
tremendous burden on the capacities of smaller economies, which are hereby called upon
to table specific smaller economies-related proposals on all subjects, but it is a challenge
that we must meet.
Transparency and participation of Civil Society: The Ministers agreed to publicise the
draft FTAA Agreement in the four official languages by making the draft texts available
on the FTAA website at the end of the Quebec Summit. This is an important step aimed
at establishing new standards of transparency in trade negotiations and at increasing the
participation of civil society in the negotiating process. It comes in light of the new
change of administration in Mexico, which had previously been hesitant to agree to such
a move. The Ministers have also expressed a desire for the Committee of Government
Representatives on the Participation of Civil Society to foster a process of increasing and
sustaining communication with civil society, to ensure that civil society has a clear
perception of the development of the FTAA negotiating process. To this end the
Ministers instructed this Committee to develop a list of options for the consideration and
decision of the Trade Negotiations Committee at its next meeting, which could include
dissemination programs in smaller economies, which could be funded by the Tripartite
Committee or other international sources of funding.
Business Facilitation Measures: No new business facilitation measures have been

approved. This decision is particularly important for CARICOM who have continually
stated in the various TNC meetings that they were unable to agree to any new measures.
The Ministers nevertheless encouraged countries to continue to work towards fully
implementing the present measures and noted that the implementation needs would be
supplemented by technical assistance and technical co-operation plans in order to fully
expedite the process. The recent approval of the Technical Co-operation Project within
the Multilateral Investment Fund of the IDB will provide support to those countries
needing assistance for implementing Customs measures.
Labour and the Environment: The question of the eventual inclusion of these subjects in
the negotiations has been a major bone of contention. The Declaration states that, "Most
Ministers recognize that the issues on environment and labour should not be utilised as
conditionalities nor subject to disciplines, the non compliance of which can be subject to
trade restrictions or sanctions." The Ministers pledged to secure, "in accordance with our
respective laws and regulations, the observance and promotion of worker rights,
renewing our commitment to the observance of internationally recognised core labour
standards, and acknowledging that the International Labour Organization is the
competent body to set and deal with those core labour standards." They reiterated that
"one of our general objectives is to strive to make our trade liberalisation and
environmental policies mutually supportive, taking into account work undertaken by the
World Trade Organization and other international organisations."
Some Other Aspects: (a) In accordance with agreed rotation arrangements, the FTAA
Administrative Secretariat has already been moved from Miami, Florida, to Panama,
where it will be located until February 2003; (b) Final decision was not reached regarding
Chairs and Vice-Chairs of Negotiating Groups and Special Committees, and
consideration of the matter will take place at a meeting in Panama at the end of April.
The full text of the Ministerial Declaration is available at www.ftaa-

alca.org/ministerials/BAMIN_e.asp
WTO: THE WAIVER ISSUE
The Chairman of the Council for Trade in Goods (CTG), the Ambassador of Hungary, on
April 10 initiated informal consultations with a group of ACP States on the continuing
stalemate with respect to the consideration of the ACP-EC waiver request regarding the
Cotonou Agreement. The Chair informed ACP States of his informal consultations with
two groups of WTO developing country Members over the past few days: the first group
- the Central American banana exporters; the second - Members with so-called 'systemic
concerns'. The Chair observed that his consultations revealed a possible hardening of
positions in opposition to the ACP-EC waiver request.
He noted that the first group, the Central American banana exporters, maintained their
long-standing opposition to consideration of the ACP-EC waiver request on the ground
that there was insufficient documentation on the table. They asserted that they were
unable to make any judgement on the extent of preferences to be conferred on ACP
banana producers before the EC implementing regulations were adopted. This, according
to the EC, should be in place by the middle of May.
The second group of developing country Members expressed concerns with respect to the
broad preferences conferred by the Cotonou Agreement. They asserted that they have
'systemic' concerns with the discriminatory nature of the Cotonou Agreement which
places some developing countries at a disadvantage vis-à-vis others. They therefore are
seeking compensation for potential losses in market share which are likely to result
through implementation of the Cotonou Agreement. Although the Chair of the CTG did
not list those WTO Members falling within the second group of countries, he did note
that those developing countries within the so-called 'second group' had already gone on
record in previous CTG meetings raising certain concerns with the discriminatory nature
of preferences: most notably, Paraguay, Brazil and the Philippines.
A significant clarification of the position of this second group of developing countries

was provided by the Chairman of the CTG. He informed ACP States that this second
group is of the view that their concerns are sufficiently fundamental, viz. 'systemic', that
the CTG may not proceed with consideration of the ACP-EC waiver request. Indeed,
Members of this second group have apparently proposed that a working group be
established to deliberate on appropriate remedial measures to be taken to alleviate the
negative impact of the Cotonou Agreement on non-ACP developing country Members.
This second group is of the view that the said working group should be established before
beginning examination of the ACP-EC waiver request a step which would be
unprecedented in the WTO era.
The Chair noted that he had no illusions that progress could be made on the ACP-EC
waiver request at the CTG meeting of 18th instant. His intention is merely to provide a
factual report of his consultations and open the floor to Members who may wish to make
statements. The Chair expressed sympathy with the view that the stalemate poses serious
problems which could establish a dangerous precedent for the consideration of future
waiver requests in the WTO.
In response to queries, he informed ACP States that the USA also had concerns with the
'systemic' issues which are being raised by some developing countries to block
consideration of the waiver request. The USA intends to submit its own waiver request
for the Africa Growth Act and the enhanced Caribbean Basin Initiative. The hardening
stance of some developing Members against conferring preferences on even the most
vulnerable developing states suggests that the USA's waiver request is likely to face
similar opposition from certain developing country Members, particularly those with an
interest in textiles, notably, Pakistan.
The EU-US Banana Agreement outlined below will have important implications for the
waiver issue.
EU AND USA REACH BANANA AGREEMENT
On April 11 the U.S. Government and the European Commission reached an agreement
on a new regime for bananas allowing for a tariff-only system by 2006. During the
transition, bananas will be imported into the European Union through import licenses
distributed on the basis of past trade. The agreement puts an end to the banana dispute
between both parties as a result of the EC's adoption of a Common Market Organisation
for bananas in 1993.
This regime consisted inter alia of a tariff quota for Latin American countries and non-
traditional ACP bananas, as well as quantities allocated to traditional ACP suppliers at
zero duty. This regime was found to be illegal by the WTO in 1997. A revised scheme
implemented on 1 January 1999 was also found to be WTO-illegal. This resulted in the
imposition of U.S. sanctions authorised by the WTO against the EU in April 1999. The
main criticisms were the setting aside of a quantity reserved solely for ACP imports, and
the system of allocation of licenses which did not completely eliminate discrimination
against third country operators.
The new system is scheduled to take effect on July 1, 2001. The United States will
suspend the sanctions. The European Union will institute a system of licensing, based on
historic reference periods from July 1, 2001. The European Commission will also initiate
the necessary procedures to propose to the Council of Ministers an adjustment of the
quantities in the various quotas, in order to expand access for Latin American bananas
and to secure a market share for a specific quantity of bananas of ACP origin. The United
States has pledged to work actively to secure acceptance of the EU's request for the
necessary WTO authorisation. Once these steps have been completed, the sanctions will
be definitively lifted.
The European Union will begin negotiations necessary under WTO rules in time to
introduce the tariff-only system from January 1, 2006. The European Commission will
now table the necessary proposals to the Council of Ministers and the European
Parliament in order to fully implement the agreement as soon as possible.
As further details are made available the RNM will make available an analysis of the
implications of this accord for Caribbean bananas.
HISTORIC OECS TELECOMMUNICATIONS AGREEMENT
On April 7 an historic Memorandum of Understanding (MOU) was concluded in Grenada

between five OECS Contracting States (Grenada, Dominica, St. Kitts and Nevis, St.
Lucia and St. Vincent and the Grenadines) and Cable and Wireless, smoothing transition
to a liberalised and competitive telecommunications environment in the OECS. The need
for this agreement derived from the contradiction between C&W's exclusive licence
rights to own and operate telecommunications facilities and to provide
telecommunications services in each of the OECS Contracting States, on the one hand,
and the enactment by OECS States of harmonised Telecommunications Acts and the
planned promulgation of harmonised Telecommunications Regulations to give effect to
the new liberalised environment, on the other hand.
The introduction of the new Telecommunications Acts requires that all telecom providers
obtain new non-exclusive licenses to operate in the OECS Contracting States. This has
resulted inter alia in the termination of C&W's licenses save in the case of St. Lucia,
where C&W's domestic, international and cellular operating licenses expired on March
31, 2001.
The MOU provides that liberalisation of the telecommunications sector in the OECS
Contracting States shall be on a phased basis, commencing on the 1st of April 2001
(Phase 1), during which new licenses "shall only be issued to operators other than Cable
& Wireless" for the provision of specified networks and services. The transition period to
full competition and liberalisation of the telecommunications sector shall be a minimum
period of 12 months commencing on the 1st of April 2001, up to a maximum period of 18
months therefrom (Phase 2). Phase 2 of the Transition Plan shall commence at the
conclusion of Phase 1. At that time, all restrictions that apply to the issuance of licences
during Phase 1 shall no longer apply.
During Phase 1 the Contracting Parties agree to use their best endeavours to prevent and
stop bypass of Cable & Wireless¹ network, through regulatory or other action permitted
by law and through public education. The Contracting Parties agree in principle to
rebalancing, based upon full disclosure of agreed supporting cost data and its derivation.
The parties shall ensure that any necessary rebalancing between international and
domestic tariffs is substantially achieved as soon as possible during Phase 1. C&W will
be granted upon application a new non-exclusive operating license or licenses to provide
at least the same networks and services as are currently provided.
The agreement provides that Marpin Telecoms and Broadcasting Company Limited in
Dominica shall be licensed to provide international voice services in the Commonwealth
of Dominica during Phase 1 and that Cable & Wireless shall be obliged to provide
domestic interconnection to Marpin. Cable & Wireless shall "make itself available to
meet with Global Network Providers Grenada Inc. to discuss possible commercial
arrangements to accommodate the provision of telecommunications services in Grenada".
Another provision of the MOU is that C&W has agreed to relinquish and waive all claims
against each of the OECS Contracting States arising as a result of the introduction of the
Telecommunications Acts and the OECS Contracting States have agreed to relinquish
and waive all claims against C&W for any or all breaches of its exclusive operating
licences in all cases with effect from the commencement of Phase 2 subject to certain
agreed provisions.
NEWS BRIEFS
-The Government of Trinidad and Tobago with the Organization of American States,
Georgetown University and The World Trade Organization is sponsoring a two-week
training course for Government Officials entitled: "Multilateral and Regional Trade
Issues for the Americas." The course will be conducted in Washington D.C. from June
18-28, 2001. The deadline for applications is April 20th. The application form is
available at http://www.sice.oas.org/cidi/apfora_e.htm
-Chinese President Jiang Zemin said on April 6 in Santiago, Chile, during the second day
of a Latin American tour that an alliance should be formed to allow developing nations to
strengthen their political and economic base in the new world order. Jiang called on the
nations of Latin America to work together in several areas, including in the development
of a new South-South co-operative model. The Chinese president also said China and
Latin America should support each other in reforming the United Nations, on
international security issues, the democratisation of international relations, and in "the
defence of the legitimate interests of developing nations."
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Recipients of RNM UPDATE are authorised to forward this newsletter to other
------------------------------------------------------------------------------------
Henry S. Gill
"Windmark", First Avenue, Harts Gap,
Tel: (246) 430-1673
Fax: (246) 228-5264
* * *
RNM UPDATE
May 10, 2001

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- WTO DEVELOPMENTS
- U.S. ADMINISTRATION'S TRADE REQUEST
- BANANAS
- INTELLECTUAL PROPERTY
- RNM TRAINING WORKSHOP ON DISPUTE SETTLEMENT
- UPCOMING EVENTS
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WTO DEVELOPMENTS
Doha Ministerial
On May 3 the General Council held discussions on the Ministerial meeting due to take
place in Doha, Qatar, in November. The Chair had circulated an initial checklist of issues
likely to be discussed. Many interventions focussed on whether a new round of
multilateral trade negotiations should be launched, with developed countries supporting
this objective and developing countries underscoring the importance of implementation
issues; for many consider that the difficulties of implementing the Uruguay Round
commitments (for example, on sanitary and phytosanitary measures, technical standards,
trade-related intellectual property rights, textiles and clothing, as well as concretising
certain rules, including on special and differential treatment) must first be resolved before
tackling new commitments. In this regard, Pakistan and India were in the vanguard, as
usual. On the other hand, Bolivia, Costa Rica, and MERCOSUR expressed support for
another Round.
Most Latin American countries suggested that their support for a broader Round was
conditioned by an enhanced mandate and accelerated progressive liberalisation in the on-
going agriculture negotiations. The near-totality of developing countries demonstrated an
extremely cautious approach towards the so-called Singapore subjects (that is, the new
issues indicated in the 1996 Singapore Ministerial) and other new issues for negotiation.
Many developing countries, including the Dominican Republic and Cuba, gave clear
indication that the Singapore issues were not yet ripe for negotiation. Overall, it emerged
clearly that that there was little enthusiasm on the part of developing countries for
climbing aboard the "broader round" bandwagon. Tanzania, speaking for the Least
developed Countries (LDCs), also demonstrated a cautious approach, as did Mauritius
speaking for the African group.
Special Session on E-Commerce
The governing council of the WTO agreed on May 8 to hold a special session as early as
June to discuss internationally acceptable rules on electronic commerce. The special
session is expected to submit a report to the WTO General Council in July. The decision
is seen as an attempt to bypass the goods versus services controversy surrounding
electronic commerce, and to tackle the subject instead from a "horizontal approach" in
special session, which circumvents the question as to whether it should be treated within
the Goods or Services Councils.
U.S. ADMINISTRATION'S TRADE REQUEST
President George W. Bush is expected to present by the end of this week a request to
Congress for Trade Promotion Authority (TPA), formerly referred to as "Fast Track
Authority", and seek to break a seven-year deadlock on this issue. With TPA, any
specified trade agreement(s) submitted for Congressional approval is voted on, without
amendment, and approved integrally or not. TPA is considered essential for the FTAA
negotiations. A tricky issue to be tackled in seeking such authorisation relates to the link
between trade, on the one hand, and labour and environmental issues on the other. In
September 1992, one month after NAFTA talks were successfully completed, then
Governor Clinton indicated he would endorse the agreement provided that worker and
environment protection were assured. U.S. labor groups had been complaining that trade
agreements offer workers little protection against unfair foreign competition, while
environmentalists had been seeking to ensure that environmental standards would not be
lowered abroad in order to attract investment. This resulted in the negotiation of NAFTA
supplemental agreements on these subjects and their signing in September 1993, thereby
providing a precedent for the insertion of labour and environment on the international
trade negotiations agenda.
Republicans have, however, been generally opposed to the inclusion of these subjects in
trade pacts, as indeed are nearly all developing countries in this Hemisphere, primarily
because of concerns that they could become an instrument of trade protection and also
result in the imposition of trade sanctions. Within the FTAA the issue was addressed at
the Buenos Aires Ministerial on April 7. The Ministerial Declaration (summarised in
RNM UPDATE April 12, 2001) reiterated that "one of our general objectives is to strive
to make our trade liberalization and environmental policies mutually supportive, taking
into account work undertaken by the World Trade Organization and other international
organizations, and to further secure, in accordance with our respective laws and
regulations, the observance and promotion of worker rights, renewing our commitment to
the observance of internationally recognized core labor standards, and acknowledging
that the International Labour Organization is the competent body to set and deal those
core labor standards". As part of his strategy in approaching Congress, President George
W. Bush is expected to propose boosting the role of the International Labor Organization
(ILO) in governing trade.
BANANAS
EC Regulations Approved
On May 2 the European Commission adopted a regulation to implement the banana

import regime in line with the understanding arrived at with the US and later with
Ecuador, as reported in previous issues of RNM UPDATE. The new rules, which are
gazetted as Regulation 896, cover the management of import licence arrangements from
1 July 2001 as a transitional arrangement until 2006 when a tariff-only system comes
into effect. The rules are complex and can give rise to interpretation and application
issues by the various EU competent national authorities, known as Intervention Boards.
The next step will be a Commission proposal to the Council to adjust the quantities in
the various quotas, in order to expand access for Latin American bananas and to secure a
market share for a specific quantity of bananas of ACP origin.
According to an EC release, the new arrangements will continue to be largely managed

on the basis of historical references, with 83% of the quantities of the quotas managed in
this way. However, in order to meet the requirements of the international obligations of
the EU, and to ensure that non-traditional operators can pursue trade in bananas,
significant changes have been introduced. The major adjustment is the predominant use
of a new definition of traditional operators that will now be based on primary importers,
that is, importers who own or buy bananas in the country of origin and ship them to the
EU. Seventeen percent of the quantities will be reserved for similar operators who do not
have a suitable historic reference, a percentage very close to the requests of Ecuador. This
quantity will be managed on a 'simultaneous examination'. This means that operators ask
at the same time (within a limit) for a quantity. Their requests are (partially) met within
the total quantity available, using a fair "pro rata" formula. This formula means that if
requests total, for example, twice the quantity available then everyone gets half of the
quantity that they requested.
Some Implications
An initial assessment of the likely impact of the new banana regime was made available
to the RNM by the Jamaica Marketing Company (JAMCO) in London. JAMCO
considers that the litmus test is the extent to which the regime delivers access for ACP
bananas to the EU market and also provides a remunerative return to suppliers of ACP
bananas. Some of the conclusions drawn are summarised herein.
-With respect to access, in Phase I all countries can access the 850,000 tonnes of Quota
C. ACP exports enter duty-free while third countries' exports face a euro 300 per tonne
duty, which might be lowered to facilitate "sufficient quantities" of Latin American
bananas in that quota to prevent EC exposure to the risk of an Article XIII violation.
Unofficially, EC representatives state the figure of 100,000 tonnes as meeting this
criterion. This eventuality offers legitimate grounds to fear that not all ACP exports will
enter Quota C if ACP exports to the EU are kept at the 775,000 tonnes per annum
average for the period 1998 2000, since some ACP suppliers will experience difficulty in
attaining access to the EU market. Furthermore, any reduction in the tariff levied on third
countries' imports will be at the expense of the high cost ACP producers, viz. Jamaica
and the Windward Islands. In Phase II, the available volume in Quota C falls by 100,000
tonnes to 750,000 tonnes and is hermetically sealed for the exclusive use of ACP
bananas. Such a move would snuff out the competition between Latin American and ACP
bananas while maintaining the real threat of not all ACP exportable bananas entering the
EU.
-With respect to remunerative return, the Commission's stipulation that 100,000 tonnes of
Latin American bananas should enter via Quota C in Phase I and via Quota A/B in Phase
II will trigger an over-supplied market thereby depressing prices. Secondly, the
dismantling of country specific quotas compounds the problem of increased supplies.
With the removal of this measure, Ecuador is no longer pegged to a market share of
26.1% of Quotas A and B. Although Ecuador raised its minimum export price from US$
2.10 per 18.14-kg box to $2.90, even at this increased price, the competitiveness of
Ecuadorian bananas is unrivalled. For example, Costa Rica's minimum export price is
$5.60 per box. Thirdly, licences will now be concentrated in the hands of a small band of
operators increasing their ability to exert pressure on producers to accept lower prices.
The top five operators (Chiquita 35%, Fyffes 12%; Dole 11%; Del Monte 9% and Noboa
8%) would account for 75% of all available licences in the quotas reserved for Latin
American imports.
INTELLECTUAL PROPERTY
On May 3 the World Intellectual Property Organisation (WIPO) concluded in Geneva the
first Intergovernmental Committee on Questions of Intellectual Property in relation to
Genetic Resources, Traditional Knowledge and Folklore. The 3-day meeting was
intended to establish areas of consensus on these issues. On genetic resources, member
countries were very much in favour of reflecting on contractual instruments and
administrative and legal measures as means of securing access to and sharing of benefits.
On traditional knowledge, countries wanted to see the work of the Committee concretely
directed towards the establishment of a definition of traditional knowledge, the
clarification of linkages between existing intellectual property rights and traditional
knowledge, and on research for new standards. A majority of members overtly supported
the idea of the creation of a regulatory framework in the field of traditional knowledge,
aimed at organising international action for the protection and sharing of benefits related
to their exploitation. Regarding the search for solutions within multilateral systems, many
delegates pointed to ongoing processes in this area already underway in the UN Food and
Agriculture Organization (FAO) and the WTO's Council for Trade in Intellectual
Property Rights (TRIPs). The next meeting is likely take place in October 2001. Further
detail is obtainable at http://www.wipo.org/news/en/
RNM TRAINING WORKSHOP ON DISPUTE SETTLEMENT
Continuing its series of training workshops on trade negotiation subjects funded through
the CRNM/IDB Project, the RNM is organising this two-day Workshop at the Accra
Beach Resort in Barbados on June 7-8. Dispute Settlement is interlinked with the
substantive obligations that CARICOM member states assume in international trade
agreements and is fundamental to the maintenance of negotiated rights. The target group
is senior government officials and officials of regional Secretariats with relevant
portfolios, private sector and NGO interests, as well as attorneys with a particular interest
in trade law. The Workshop will:
-promote a better understanding of the concept of dispute settlement among negotiators in

the region;
-enhance the ability of countries to fully participate in the negotiations both at the
regional (FTAA) and multilateral levels (WTO)
-increase the awareness of the importance of this issue to the governments and officials in
the region and the prospects for ensuring an effective presence in future dispute
settlement discussions
-examine key aspects of the WTO DSU and its operation
-examine possible critical concerns for CARICOM, in relation to regional and
multilateral dispute settlement systems, such as availability of resources, and effective
representation, intra-CARICOM consultation
-examine the US Section 301 regime which led to the second banana panel to gain a
greater understanding of the US internal processes
-examine Protocol IX of the CARICOM Single Market and Economy which, among
other things, establishes the Caribbean Court of Justice
-explore the dispute settlement discussions at the FTAA level and increase the conceptual
tools and practical knowledge of the negotiators to fully participate in this process.
-explore other methods of dispute settlement such as arbitration, mediation consultation
etc.
For further information please contact mroberts@caribrnm.net
UPCOMING EVENTS
FTAA Negotiations
The negotiations calendar for the remainder of May is as follows: Market Access (14-16);
Government Procurement (17-18); Competition Policy (21-22); Subsidies, Anti-dumping
and Countervailing Duties (23-24); Intellectual Property Rights (28-29); Agriculture (30-
31)
ACP Meetings in Brussels
May 11: The 26th Session of the ACP-EC Joint Council

May 12: ACP ministerial consultations in view of the 3rd UN Conference on LDC's
(May 14-20)
May 13: 2nd Meeting of the ACP Ministerial Trade Committee
May 14: 1st ACP-EU Trade Ministerial Committee
------------------------------------------------------------------------------------
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Communications Director
Tel: (246) 430-1673
Fax: (246) 228-5264
* * *
RNM UPDATE
April 30, 2001

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- EU-ECUADOR BANANA AGREEMENT

- G-24 TARGETS PROTECTIONISM IN DEVELOPED COUNTRIES
- POST-URUGUAY ROUND MARKET ACCESS
- NEWS BRIEFS
- UPCOMING MEETINGS
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EU-ECUADOR BANANA AGREEMENT
The EU and Ecuador announced today they have reached an Understanding to resolve
their long-standing dispute over bananas in the WTO. This follows on the April 11
agreement between the European Commission and the United States, which Ecuador had
rejected. Today's understanding is said to be fully compatible with the one reached
between the EU and the US. It recognises Ecuador's rights as the principal supplier and
sets out, in detail, the qualification and management provisions governing the "non-
traditional operators" through a change in the proposed regulations. These initially
stipulated (a) the need to be established in Europe; (b) to be involved in European banana
trade, and (c) to have a minimum turnover in any one of the last three years of 400,000
Euros. This latter figure has now been raised to 1.2 million Euros, which accords with
Ecuador's interests and also benefits ACP suppliers. Caribbean producers meeting last
weekend in Miami with Ecuador had favoured an even higher level of 4 million Euros.
The new regime abolishes the EU's import breakdown on a country quota basis, increases
the import volumes from Latin America by 100,000 tons, and improves market access to
traditional and non traditional importers from Ecuador. The EU will institute a system of
licensing, based on historic reference reference periods from July 1, 2001, reserving "a
very significant share" of the trade for non-traditional operators working within an open
and competitive environment thus facilitating access for small and medium sized
businesses. The transitional arrangement will last until January 1, 2001, when a tariff-
only system is scheduled to take effect.
The EC will now initiate the necessary procedures to propose to the Council of Ministers
an adjustment in the quantities in the various quotas, in order to expand access for Latin
American bananas and to secure a market share for a specific quantity of bananas of ACP
origin. Ecuador has pledged to work actively to secure acceptance of the EU's request for
the necessary WTO authorisation. The EU will begin negotiations with producing
countries necessary under WTO rules in good time to introduce the eventual tariff-only
system. The EC will now table the necessary proposals to the Council of Ministers and
the European Parliament in order to fully implement the agreement as soon as possible.
Caribbean producers need to evaluate the impact of this modification of the April 11
agreement with the USA.
G-24 TARGETS PROTECTIONISM IN DEVELOPED COUNTRIES
Ministers of the Intergovernmental Group of Twenty-Four on International Monetary

Affairs held their sixty-fifth meeting in Washington, D.C., on April 28, 2001. The
communiqué issued by these developing country representatives addressed, among other
subjects, Trade and Development. While noting that the share of developing countries in
world trade has increased in the last three decades, they recognized, however, "that many
developing countries, particularly low-income countries, have not benefited from this
trade expansion. This is due, in part, to protectionist mechanisms, such as anti-dumping
and countervailing duties, as well as subsidies in advanced economies and the slow
implementation of trade liberalization agreements, such as those in agriculture, which
impose prohibitive costs on developing countries".
"Barriers to developing country exports in industrialized markets continue to severely

disadvantage developing countries. For example, industrialized countries spend more
than $300 billion a year on agricultural subsidies, which is roughly equivalent to the total
GNP of sub-Saharan Africa, and their tariffs on meat, fruit, and vegetables‹all primary
exports from the developing world‹can exceed 100 percent. These have the effect of
inhibiting developing country exports and competitiveness. It is conservatively estimated
that costs in terms of foregone income to developing countries from trade restrictions on
their exports exceed $100 billion a year. It is pertinent to note that aggregate aid flows to
developing countries are less than $60 billion a year. Furthermore, FDI flows remain
concentrated in a small number of developing countries, but many more are yet to receive
FDI at the levels necessary to spur their development".
POST-URUGUAY ROUND MARKET ACCESS
The WTO Secretariat has produced a new study evaluating post-Uruguay Round market
access conditions after more than five years of the existence of the Agreement. The study,
entitled Market Access: Unfinished Business, focuses on market access for industrial
products, agriculture and services. The following are some findings of the study that :
With respect to industrial products:-

-for numerous countries, tariffs are bound at levels that are significantly above the rates
actually applied, which does not contribute to the stability of applied rates, since
countries can, if they wish, raise their applied tariff up to the level of their binding. The
differential is illustrated, for example, by the case of Costa Rica with a simple average
bound tariff close to 45% while its average applied rate is just above 6%.
-the simple average bound tariff for developed countries is 6.5% but these countries have
numerous tariff peaks, mainly in the textiles and clothing and leather sectors.
-most developed countries' tariffs increase with the level of processing. Such "tariff
escalation" biases the production structure of developing countries towards less refined
products and thus represents a major impediment to their industrialization
-anti-dumping investigations have increasingly targeted developing countries; while in
the late 1980s developing countries accounted for around 10% of all anti-dumping
investigations, since 1995 they are responsible for approximately half the initiations.
With respect to agriculture:-

- agricultural bindings are not always transparent. Transparency and comparability of
tariffs is impaired by the use of specific or mixed tariff rates, that is, by non-ad valorem
tariffs.
- the share of tariff lines with duties above 100% is very high reaching 45% for India and
Norway, and 69% for Bangladesh.
- only 30 WTO Members have commitments to reduce domestic support to agriculture,
the so-called Aggregate Measurement of Support (AMS) reduction commitments. For
only half (10) of the 21 committed Members for which sufficient information is available,
has the current AMS decreased between 1995 and 1997.
- between 1995 and 1998 the average use of export subsidy commitments has increased
for 10 of the 25 countries with reduction commitments.
With respect to services:

- the current schedules of commitments reflect the status quo of market access rather than
the result of liberalisation. Many countries have made minimal commitments and even
the most comprehensive schedules contain a large number of restrictive limitations which
will be a target for negotiating partners.
- of the 160 possible service subsectors on which members can choose to schedule
specific commitments, about one third of WTO Memebrs have made commitments on 20
subsectors or less, one third on between 21 and 60 subsectors and the remaining third by
more than 61 subsectors. On average a "typical" Member has undertaken commitments
on slightly more than 25 subsectors, thus covering about 15% of the total possible.
-of the sectors attracting the highest number of bindings, tourism, financial and business
services rank the highest, while health and education services are the elast commonly
scheduled of the major sectors.
- the bindings undertaken for mode 2 (consumption abroad) are significantly more liberal
than those for the three other modes
The study is available at http://www.wto.org/english/res_e/booksp_e/maccess_e.pdf
NEWS BRIEFS
Canada-Costa Rica Free Trade Agreement signed
The April 23 signing of a FTA by Trade Ministers of Canada and Costa Rica, the first
between a "smaller economy" and a G-7 country, can be instructive for Canada-
CARICOM trade talks which have only just begun (see RNM UPDATE March 17,
2001). Coverage of the agreement, which was signed by Trade Ministers in Ottawa the
presence of Canadian Prime Minster Jean Chrétien and Costa Rican President Miguel
Ángel Rodríguez, includes services, investment, government procurement, competition
policy, customs procedures and trade facilitation, while taking into account economic
differences between both countries. It allows free entry for 86% of Costa Rican products
to the Canadian market immediately, 1% in four years and 15% over seven years, while
Costa Rica will open its market to 67% of Canadian products immediately, 18.7% over 7
years and 14.7% over 14 years.
The Costa Rican President indicated that the agreement allows sugar producers to export
20,000 tons of refined sugar immediately and that this quota would increase gradually
until it is eliminated, at prices much higher than on the world market. It is noteworthy
that Costa Rica maintains a large trade surplus with Canada, exporting mainly bananas
(around 33% of the total), pineapples (14%), coffee 11%), as well as semiconductors,
melons, sugar, and other products. Costa Rica has already signed free trade agreements
with Mexico, the Dominican Republic and Chile.
Foundation Award for Caribbean Study
The John D. and Catherine T. MacArthur Foundation has awarded a US$498,000

research grant to support a two-year policy study of governance, security, and
globalisation in the Caribbean. The study focussing on four countries (Trinidad and
Tobago, Jamaica, St. Lucia, and the Dominican Republic) will be co-directed by Prof.
Anthony Bryan of the University of Miami's Dante B. Fascell North-South Center and
Dr. Anthony Gonzales of the Institute of International Relations at the University of the
West Indies in Trinidad, together with Dr. Stephen Flynn, Senior Fellow for National
Security at the Council on Foreign Relations in New York.
It recognises that greater openness is central to advancing economic development in the

Caribbean but that nations must simultaneously safeguard their sovereign interests in the
face of the rising incidence of international organised crime, illegal immigration, trade
fraud, disease, narcotics and weapons smuggling, and money laundering. The study will
develop policy recommendations for governments, regional organisations and the private
sector on how Caribbean states might develop new practices and capabilities to deal with
both imperatives. The project has commenced in Jamaica, where the survey exercise will
take place during June to August. Major seminars with stakeholders and evaluation
meetings will take place in Kingston and Miami during October and November. The
survey exercises for Trinidad and Tobago, St. Lucia and the Dominican Republic will
take place from November 2001-March 2002.
UPCOMING MEETINGS
FTAA
The Chairman of the Trade Negotiations Committee has released the Schedule of
Meetings for the period May 2001 to September 2001. Following the Buenos Aires Trade
Ministerial and the recently concluded Quebec Summit negotiating group meetings will
resume with Services (May 7-9), which is now chaired by CARICOM, and Investment
(May 10-11).
ACP/Europe
8 May - ACP Ministerial consultations on Bananas and Sugar

ACP Ministerial Committees on Development Cooperation
Bureau of the ACP Council
9-10 May - ACP Council of Ministers

11 May - ACP-EC Council of Ministers
13 May - 2nd Meeting of the ACP Ministerial Trade Committee

1st Meeting of the Joint ACP-EC Ministerial Trade Committee
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Henry S. Gill
Tel: (246) 430-1673
Fax: (246) 228-5264
* * *
RNM UPDATE
April 24, 2001

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- QUEBEC CITY SUMMIT

- BANANA DEVELOPMENTS
- ACP MINISTERIAL DECISIONS
- NEWS BRIEF
************************************************************************
QUEBEC CITY SUMMIT
The Third Summit of the Americas Meeting in Quebec City, Canada, on April 20-22
approved the Declaration of Quebec City and a Plan of Action "to strengthen democracy,
create prosperity and realize human potential". The Plan covers commitments embracing
Democracy, Human Rights and Fundamental Freedoms; Justice, Rule of Law and
Security of the Individual; Hemispheric Security; Civil Society; Trade, Investment and
Financial Stability; Infrastructure and Regulatory Environment; Disaster Management;
Environmental Foundation for Sustainable Development; Agriculture Management and
Rural Development; Labour and Employment; Growth with Equity; Education; Health;
Gender Equality; Indigenous People; Cultural Diversity.
The Declaration included a 'democratic clause' enshrining the rule of law and respect for
the democratic system as both "a goal and shared commitment" and as "an essential
condition of our presence at this and future Summits". The democratic clause stated
further that any unconstitutional alteration or interruption of the democratic order in a
state of the Hemisphere constitutes an "insurmountable obstacle" to the participating of
that state's government in the Summit process.
CARICOM's position, articulated by Prime Minister Owen Arthur of Barbados at the

opening session, had been that their experience had led to "the strong belief that we can
and we must fashion a hemispheric community from which no one is excluded, least of
all, in the name of democracy. The time must certainly have come for engaging Cuba
constructively in the creation of a comprehensive community of the Americas". Speaking
during the second day's plenary the Prime Minister of St. Lucia, Dr. Kenny Anthony, had
argued also that "merely engaged in regular electoral exercises was not enough and the
strongest traditions of democracy will pale in the face of overwhelming poverty, social
exclusion and economic marginalisation". He argued further that, "Until we can wipe out
poverty from our hemisphere, we cannot claim to have built successful democracies".
With respect to the FTAA, leaders confirmed the decisions of the April 7 Buenos Aires
Ministerial (summarised in RNM UPDATE April 12, 2001), including the deadline for
concluding negotiations "no later than January 2005" and to seek its entry into force as
soon as possible thereafter but no later than December 2005. Caribbean Heads were
pleased that the Summit Declaration endorses the need to "meet the challenges inherent
in the differences in size and levels of social, economic and institutional development in
our countries and our region". Related parts of the Plan of Action pledged to foster
communication with civil society to ensure that it has a clear perception of the
development of the FTAA negotiating process and to this end develop a list of options
that could include dissemination programs in smaller economies. The Tripartite
Committee institutions (IDB, OAS and ECLAC) are urged "to favourably consider
requests for technical assistance related to FTAA issues from member countries, in
particular from smaller economies, in order to facilitate their integration into the FTAA
process as well as to develop a list of options that could include dissemination programs
in smaller economies".
CARICOM will now chair the Negotiating Group on Services and vice-chair the NG on
Subsidies, Anti-dumping and Countervailing Duties. It is to be noted that Bolivia and
Nicaragua will be chair and vice-chair the Consultative Group on Smaller Economies. A
new Technical Committee on Institutional Issues has been created and will be chaired by
Brazil with Ecuador as Vice-Chair.
A Declaration on Connecting the Americas launched a "Connectivity Agenda for the

Americas" to facilitate the integration of the hemisphere into an increasingly knowledge-
based society benefiting all citizens. Canada is lending support through the Institute for
Connectivity in the Americas, to be guided by a hemispheric advisory board made up of
representatives from governments, non-governmental organisations, business sectors and
academic communities. It will provide a contribution of $20 million to the Institute in this
fiscal year for support of specified programs that connect the hemisphere. Proposed
projects must come from developing countries; must have partners in the government,
NGO, business or academic communities; and must support existing local or regional
strategies for connectivity.
The Summit also provided an opportunity for CARICOM Heads to meet with President
Bush on April 20, when Heads sought the President's aid in their fight against the OECD
and its harmful tax competition scheme.
BANANA DEVELOPMENTS
Sequel to EU-US Agreement
The April 11 agreement on bananas (in RNM UPDATE of April 12) has elicited varied
responses. CARICOM countries do have some concerns since the quota allocated to ACP
producers has been cut from 850,000 tons by 100,000 tons, which other producers will be
able to supply. However, their reaction is that the agreement is more acceptable than the
previous "first-come first served"(FCFS) proposal, which CARICOM, the U.S. and
Central American countries had all criticised. This arrangement would have offered
licences to the first operators to deliver their fruit to EU ports by set target dates at
specific prices. Caribbean producers immediately saw the handicap they would face since
banana boats moved from island to island to pick up fruit.
On the other hand, the FCFS proposal had been favoured by Ecuador, the world's leading
banana exporting country. Ecuadorean authorities have reacted strongly to the
announcement of the EU-US deal which was presented to it as a fait accompli and the
government is requesting consultations with the EU on the matter. Ecuador has indicated
that if a satisfactory solution is not found it will not have any other alternative than to
request immediate consultations within the WTO. This position contrasts with the view
expressed by the European Commission that Ecuador would be able to export more
bananas to the EU than under the FCFS proposal.
Some concerns of Caribbean banana exporters are that while the retention of a tariff-rate
quota (TRQ) system secured ACP access to the EU market, remunerative return is
severely jeopardised in two ways. Firstly, siphoning off 100,000 tonnes from the Quota C
(ACP fruit) and augmenting Quota B (non-ACP) increases the volume of dollar fruit
imported, thereby depressing prices. Secondly, the system of allocating licences to "non-
traditional importers" offers no restitution to disenfranchised operators. If traditional
commercial partners effectively have no access to dollar bananas, the commercial basis
for their payment of high f.o.t. (free on truck) prices is removed. The EU has granted the
two US operators increased market share - a development that might lead to reduced
producers' prices.
WTO Waiver discussions
The joint EU-ACP request within the WTO for a waiver of their Partnership Agreement
continues to face obstacles subsequent to the EU-US banana agreement. The Council for
Trade in Goods (CTG), meeting in formal session on April 18 under the chairmanship of
Hungary's Ambassador, addressed an agenda of which the main discussion item turned
out to be the waiver issue (Item VI). The session became bogged down after Ecuador
sought to block discussion of the item on the ground that it was not an appropriate agenda
item, a position strongly supported by Paraguay. The EC Representative argued that
consideration of the item should proceed, and this in light of the banana agreement which
had been made public. The EC argued moreover that it was incumbent on the CTG to see
that the EU's proposed legislation on a banana regime complied with the details and
conditions laid down for approval of a WTO waiver.
Paraguay supported Ecuador's position complaining that only a small number of

developing countries were excluded from the Partnership Agreement (PA) and that they
would be disadvantaged, so the PA should be extended to other developing countries.
Paraguay then formally proposed the establishment of a working party to examine the
implications of the PA vis-à-vis other developing countries before proceeding to give
consideration to the ACP-EC waiver request.
Gabon¹s Ambassador, Madame Bike, speaking on behalf of the ACP, noted that patience
had been exercised thus far and they would wish to move forward on an issue which had
been on the table for the past 14 months. Other countries supported the objective though
some alluded to the insufficiency of documentation. Latin American banana producers
(Costa Rica, Honduras, Guatemala) indicated willingness to consider the EC-ACP
waiver request, as did the US, Canada and the Czech Republic. Support also came from
Mauritius, Senegal, Ivory Coast and Madagascar. St. Lucia intervened following the
OECS line of support for the waiver. Discussion of the issue will continue at a later date.
Windward Islands Banana Marketing
Banana restructuring has been taking place at different levels, not the least of which is in
its marketing. An industry shift has taken place whereby the Windward Islands Banana
Development & Exporting Company (WIBDECO) U.K. is now controlling all bananas
entering the British market from the four Windward producers. This increases the
company's leverage with supermarkets regarding banana prices, in a context in which
about 70 to 75 percent of Windwards fruit are sold to the supermarkets.
It also facilitates marketing of the Windward Islands brand so that consumers know
precisely where fruit comes from. Previously these bananas were sold as Geest and
Fyffes bananas which could have come from anywhere. Geographically-identified
branding enables the marketing claim that Windward Islands bananas originate from the
most ethical source for bananas shipped to Europe. WIBDECO has also moved its offices
from London to Southampton to carry out marketing, technical support and quality
assessment.
ACP MINISTERIAL DECISIONS
The first meeting of the ACP Ministerial Trade Committee took place in Johannesburg on
10 and 11 April. The Committee is composed of 18 members from the 6 ACP sub-
regions (Southern African, Eastern Africa, Central Africa, West Africa, the Pacific and
the Caribbean). Consideration of negotiations with the European Union led to agreement
that while countries and regions were entitled to adopt national or regional approaches to
the upcoming negotiations, it was essential to ensure that there was sufficient
coordination within the ACP Group to prevent any weakening of solidarity among its
members.
The Committee agreed that preparations for the negotiation of new trading arrangements
with the EU, scheduled to begin in September 2002, should be accelerated in view of the
short time remaining. In particular, Ministers mandated the ACP Committee of
Ambassadors and the Secretariat to prepare draft guidelines. The Committee agreed to
recommend to the next ACP Council of Ministers (Brussels, 8-10 May 2001) the draft
Plan of Action for preparing the negotiations which sets out the types of activities to be
undertaken (regional seminars, impact studies, etc.) and the deadlines to be respected.
The Committee also adopted the agenda of the 1st meeting of the ACP-EU Ministerial
Trade Committee, scheduled to take place in Brussels on May 14, 2001. This joint
committee includes ministerial representatives from all 15 EU member states and has a
specific mandate to oversee preparations for the upcoming negotiations, as well as to
supervise the implementation of the trade provisions of the Cotonou Agreement, in
particular issues of market access.
The ACP Ministerial Trade Committee appointed the Hon. Anthony Hylton, Minister of
Foreign Trade of Jamaica, as Chair for a period of six months. The Ministers of Trade
from Kenya and Samoa will take over the chairmanship in October 2001 and April 2002,
respectively.
During the South Africa-ACP consultations, Ministers held an exchange of views on the
following issues: economic governance, including issues of government procurement ;
trade-related issues, including rules of origin, sanitary and phytosanitary regulations,
environment and fisheries ; adding value to key sectors and commodities ; strategic
options in trade policy ; the experience of ACP countries with regard to the African
Growth and Opportunity Act, the Caribbean Basin Initiative, the Free Trade Areas of the
Americas, and the lessons to draw from the negotiations of the Lome and Cotonou
Agreements.
NEWS BRIEF
On April 27, the WTO General Council will convene a Special Session on
Implementation of Uruguay Round commitments. The Chairman of the General Council
and the Director-General will report on ongoing consultations with WTO Members.
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Henry S. Gill
Tel: (246) 430-1673
Fax: (246) 228-5264
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RNM UPDATE
May 24, 2001

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- ACP-EU MINISTERIAL
- WORLD TRADE REPORT
- UN THIRD LDC CONFERENCE
- BRIEFS
- UPCOMING EVENTS
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ACP-EU MINISTERIAL
The ACP-EU Council of Ministers held its 26th meeting in Brussels on May 11. The
agenda included: delegation of powers to the ACP-EU Committee of Ambassadors, trade,
sugar, development finance cooperation, enlargement of the European Union, political
dialogue and other issues. ACP positions, as well as decisions, on some of these issues
are summarised here.
The Ministers delegated to the Committee of Ambassadors important powers including

the adoption of the Procedures for the award of contracts financed from the resources of
the European Development Fund, General Conditions applicable to contracts financed by
the Fund and procedural rules on the arbitration of disputes over contracts financed by the
Fund. On this matter, the ACP Group expressed the wish for a more equitable distribution
of these contracts between the ACP and the EU sides. The ACP-EU Committee of
Ambassadors was also allowed to decide the use of unallocated resources from the 8th
European Development Fund.
In regard to preparation for the negotiations on the Economic Partnership Agreements

(EPAs), the ACP co-President announced that the ACP Group had designed a
comprehensive package of preparatory activities in anticipation of the operationalisation
of the EDF 20 million Euro programme earmarked for support and capacity building.
However, the Chairman of the ACP Ministerial Trade Committee, Hon. Anthony Hylton,
Minister of Foreign Trade of Jamaica, pointed out that the failure of the European
Commission to deliver on the promise of financial support to ACP preparatory activities
made this preparation difficult. He said "Unless the Commission can do better on
implementation, we may need to look again at the September 2002 target for the
commencement of the negotiations. That is not a prospect from which we take any
comfort".
On preparation for the Qatar Ministerial, Minister Hylton clarified ACP concerns that
many issues that contributed to the failure of the Seattle Ministerial Conference,
including those related to the implementation of the Uruguay Round Agreements,
Decisions and the inherent imbalances therein, remain unresolved. Despite receiving
many proposals from developing countries for reviewing several WTO rules, it had not
been possible to reach consensus on these demands. He complained that there had been
very little progress, if any, in making the WTO rules and procedures more appropriate to
the needs and interests of developing countries. The ACP Group also reiterated that
issues such as labour and environmental standards should not be incorporated into the
multilateral trade negotiations at the risk of these being used for protectionist purposes
were great. However, the Group reaffirmed its commitment to implementing labour and
environmental standards as defined by the relevant international conventions.
The ACP position on Bananas was expressed by the Hon. Julian Hunte, St. Lucia's
Minister of Foreign Affairs & International Trade. Welcoming the Agreement which the
EC reached with the United States and Ecuador, he expressed ACP concerns about the
proposed reduction of quota "C" by 100,000 tonnes, for the smaller quota will certainly
prove inadequate, with the inclusion of the non-traditional suppliers. The ACP are also
concerned that a period of transition to a single tariff ending as early as 31 December
2005 will leave the ACP too little time to complete the massive restructuring necessary.
The ACP urged the EU to provide financial support for ACP suppliers to help them retain
their competitiveness and provide compensation to those who suffer a loss of earnings
due to the modification of the regime. Finally, they are concerned that they have not been
consulted in the negotiations resulting in the EU-USA agreements and would expect full
consultation in formulating the text of the request for the GATT Article XIII waiver
which the Agreements with US and Ecuador envisage.
The ACP Ministerial Spokesman on Sugar, Hon. Pravind Jugnath, Minister of

Agriculture, Food Technology & Natural Resources of Mauritius, pointed to the fact that
the EU had not yet agreed on the terms and conditions of the future Regime and on the
Commission's mandate for the renewal of the Special Preferential Sugar Agreement as a
matter of major concern to the ACP. The ACP shared the view of the European
Parliament that a six-year regime would provide a stable and predictable framework for
the orderly management of the sugar sector. They requested that in the implementation of
the 'Everything but Arms' (EBA) Initiative, the LDC sugar quota be in addition to the
current SPS quantities.
Political dialogue, which is enshrined in the Cotonou Partnership Agreement, was a

major issue for the ACP Group. The ACP official statement was delivered by Hon. Billie
Miller, Deputy Prime Minister of Barbados. She strongly criticised the lack of political
dialogue and the level of European representation in the joint meetings pointing out that
ACP ministers had not been talking with their ministerial counterparts, given that Europe
was represented by EC Commissioners. Minister Miller also criticised the exclusion of
the ACP from the definition of ACP-EU cooperation programmes and the lack of
consultations on the implementation of cooperation. The Minister also pointed out that
though the EU is dedicated to the concept of "regional partnership agreement", by the
same token, the ACP are dedicated to maintaining the ACP Group. She added that before
Cotonou's ratification by the EU and before the WTO waiver had been obtained, "it did
not sit well with us that the EBA was announced and without reference to us in the ACP",
which, she said, would undermine Cotonou. Minister Miller emphasised, "We are glad of
the benefits which will accrue to the LDCs but at the same time, we are not disposed to
permit the EBA to foment division among the ACP - the LDCs and the non-LDCs... But
at least some impact on Cotonou and the existing commodity protocols ought to have
been considered from the onset... Amidst all the rhetoric about poverty alleviation and
poverty eradication, it needs to be understood that many of us are the recently poor and
some are still among the ranks of the poor - there is nothing to be gained and everything
to lose by actions which are designed to have the effect of returning the recently poor to
poverty...".
Additional information is available through the ACP Secretariat at

http://www.acpsec.org/gb/press/146b056e.html
WORLD TRADE REPORT
The WTO Secretariat has released its 151-page Annual Report 2001, which includes an
overview of the developments in the international trading environment and a summary of
WTO activities. Among the findings of the preliminary review of world trade
developments in 2000 are:
--Exports and imports of developing countries expanded by more than 20%, lifting their
share in world merchandise trade to the highest level in the last 50 years. Various factors
contributed to this outcome, including the economic recovery in Latin America and East
Asia, the sharp rise of oil prices and stronger import demand in developed countries.
--The value of world merchandise trade rose by 12.5% in 2000 - twice the average for the
last decade - to reach nearly 6.2 trillion dollars. World commercial services trade is
estimated to have expanded by 5% (to 1.4 trillion dollars) in 2000, the fastest annual
growth since 1997. For the second year in a row, the value of commercial services trade
expanded less rapidly than merchandise trade, but for the 1990-2000 period its 6% annual
growth matched that of merchandise trade.
--The year 2000 witnessed not only outstandingly high global trade and output growth of
12% and 4%, respectively, but also an exceptionally large excess of trade growth over
output growth.
--In 2001, the world economy is retreating from the high growth path seen last year,
dimming the prospects for world trade in 2001. The volume of world merchandise trade
is expected to grow by 7%, a marked reduction from the estimated 12% in 2000.
The complete report is available at

http://www.wto.org/english/res_e/anrep_e/wto_anrep01_e.pdf
UN THIRD LDC CONFERENCE
The Third United Nations Conference on the Least Developed Countries (LDCs) was
held in Brussels from 14-20 May, 2001. The Declaration issued by participating
governments recognised that the goals of the Second UN Conference had not been met,
that LDCs continued to be marginalised in the world economy and that they continue to
suffer extreme poverty. LDCs are 49 in number with a total population surpassing 600
million.
Participating governments adopted a Programme of Action for the LDCs for the decade
2001-2010 covering a wide range of subjects, including trade, foreign direct investment
(FDI), official development assistance (ODA) and external debt, aimed at the eradication
of poverty and the improvement of the quality of lives of people in LDCs. This is to be
achieved through strengthening the LDCs' abilities to build a better future for themselves
and develop their countries. It was recognised that the primary responsibility for
development in LDCs rested with LDCs themselves, but that their efforts needed to be
given concrete and substantial international support from Governments and international
organisations in a spirit of shared responsibility through genuine partnerships, including
with the civil society and private sector.
With respect to trade, governments expressed the belief that increased trade was essential
for the growth and development of LDCs; that a transparent, non-discriminatory and
rules-based multilateral trading system was essential for LDCs to reap the potential
benefits of globalisation; that the accession of LDCs to the WTO should be encouraged
and facilitated. Governments committed themselves to seizing the opportunity of the
fourth WTO Ministerial meeting in Doha in November 2001, to advance the development
dimension of trade, in particular for the development of LDCs. They stated their aim to
improve preferential market access for LDCs by working towards the objective of duty-
free and quota-free market access for all LDCs´ products in the markets of developed
countries, as well as to take measures to address problems caused by supply-side
constraints. They emphasised that the crucial importance of trade and economic growth
must be reflected in poverty reduction strategies.
Regarding official development assistance (ODA), governments pledged not to spare any
effort to reverse the declining trends of ODA and to meet, expeditiously, the targets of
0.15% or 0.20% of GDP as ODA to LDCs. On external debt they pledged to make
expeditious progress towards full cancellation of outstanding official bilateral debt within
the context of the enhanced HIPC Initiative (Debt Initiative for Heavily Indebted Poor
Countries), as well as to provide debt relief to post conflict countries within the flexibility
provided under the HIPC framework. The full Declaration can be obtained at
http://www.un.org/events/ldc3/conference/declaration.htm
BRIEFS
ACS Meeting
The RNM participated in the Second Meeting on Inter-Secretariat Co-operation in the

Greater Caribbean, which was convened at the Secretariat of the Association of
Caribbean States (ACS) in Port-of-Spain, on May 17-18, 2001. The meeting was attended
by the Secretaries General of CARICOM, SIECA (Central American Economic
Integration Secretariat), and SICA (Central American Integration System), as well as the
Permanent Secretary of the Latin American Economic System (SELA). The OECS
Secretariat, Caribbean Tourism Organisation (CTO) and Caribbean Export also
participated. The meeting provided a useful opportunity to review trade, tourism,
information systems and other developments, as well as the functioning of work
programs of the participating entities, including studies and training programmes being
undertaken.
EU-Candidate Ministerial
The European Union and Candidate Countries held a Ministerial Conference at Ljubljana
on 11-12 May 2001 on WTO and Trade Issues. The Ministers agreed on the importance
of launching, at the Fourth WTO Ministerial meeting in Qatar in November 2001, a new
comprehensive round of multilateral trade negotiations and agreed to continue to work
together towards this shared objective.
UPCOMING EVENTS
--The WTO will hold its Trade Policy Review of OECS countries on 5-7 June. Such
reviews are mandated by the Uruguay Round agreement and are intended to facilitate the
smooth functioning of the international trading system by enhancing the transparency of
Members' trade policies. Reviews have been carried out of only two CARICOM
Members - Jamaica and Trinidad and Tobago.
--The Caribbean Association of Industry and Commerce (CAIC) will hold its Thirteenth
Annual Private Sector Conference 2001 in Kingston, Jamaica, on June 25th. The theme
of the Conference is "Locating the Caribbean's Competitive Advantages: Preparing the
Regional Private Sector for Globalisation".
--The WTO will be the venue on 6-7 July 2001 for a symposium on critical issues
confronting the world trading system. Representatives from governments, non-
governmental organisations, the media and members of the academic community are
invited to participate. Work sessions deal with: (first day) Agriculture, TRIPS - Access to
Essential Medicines, Trade and Environment, Services, WTO & Civil Society; and
(second day) Food Safety and the SPS Agreement, TRIPS - Bio-technology/ Bio-
diversity, Trade and Development, Services, and WTO & Civil Society.
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Tel: (246) 430-1673
Fax: (246) 228-5264
* * *
RNM UPDATE
June 19, 2001

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- EUROPE'S NEW GSP REGULATIONS

- CHINA-USA AGREEMENT ON WTO ACCESSION
- ACTIVE USA TRADE AGENDA
- IDB SUPPORT TO THE RNM
- BRIEFS
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EUROPE'S NEW GSP REGULATIONS
The European Commission adopted on June 12 a proposal to revise the Generalised

System of Tariff Preferences (GSP) for the years 2002 to 2004, the implications of which
need to be examined carefully by Caribbean countries and the ACP as a whole, since this
could lead to increased competition in European markets for certain ACP exports.
The GSP is an initiative deriving from discussions in the 1960s whereby industrialised
countries granted non-reciprocal trade preferences to all developing countries, with
current eligibility extended to 142 countries. The EU was the first to implement its own
GSP in 1971, and for 90 developing countries and economies in transition, notably in
Asia, the GSP provides the only preferential access to the EU's market. Yet access under
the GSP is less beneficial than certain other non-reciprocal preferences (for example,
Lomé Covention/Cotonou, CBI/now CBTPA and CARIBCAN), mainly because its
product coverage is narrower, product eligibility can be modified, preference margins are
smaller, market access is not necessarily on a duty-free basis (although the U.S. GSP is
duty-fee) and individual countries are subject to "graduation" for particular products
when they achieve specific market penetration levels. Under the European GSP, rules of
origin are also less favourable than under Lomé/Cotonou. On the other hand, the GSP is
WTO-compatible under the Enabling Clause (adopted for an indefinite period) whereas
the above-mentioned arrangements require a WTO waiver.
The existing EU Regulation entered into force on 1 July 1999 and covers the period until
the end of 2001. It is the first one to cover all products and all arrangements (such
agricultural, industrial, textiles GSP and so on). The EU's GSP is implemented over a ten-
year cycle, with the present cycle spanning 1995-2004. The proposed regulation is
intended to be more user friendly through simplified rules and harmonised procedures on
the different arrangements available under the GSP. The new Regulation, which fully
incorporates the recent "Everything But Arms" (EBA) initiative in favour of 49 Least
Developed Countries, is also intended to improve the effectiveness of special incentives
to promote core labour and environmental standards.
The proposal maintains duty-free access for all non-sensitive products, while all other
products will be classified in one category of sensitive products, replacing the previous
three categories (very sensitive, sensitive and semi-sensitive). In order to address the
erosion of preferences, the key element is a proposed flat rate reduction of the MFN tariff
for GSP beneficiaries by 3.5 percentage points. The proposed regulation is also designed
to target preferences to benefit those countries, which need them most, rather than
countries and sectors which are in a position to face international competition without
preferential treatment. Previously, the eligibility of countries and particular sectors was
decided only at the entry into force of a new regulation. This will now be done on an
annual basis. However, in order to enhance predictability, eligibility of both countries and
sectors will only be decided where countries meet the criteria during three consecutive
years. The results of this permanent screening will be made public, so as to provide
beneficiary countries with some early warning.
Special incentive arrangements contained in the Regulation link additional benefits to

respect for core labour and environmental standards. The additional trade preferences
would simply double those benefits provided under the general arrangements. On labour,
the special incentive arrangements will mean beneficiaries must apply effectively all ILO
Conventions containing related to core labour standards in order to be eligible. On the
other hand, beneficiary countries committing "serious and systematic" violations of those
standards would run the risk of loosing their GSP status.
CHINA-USA AGREEMENT ON WTO ACCESSION
After 15 years of negotiations with the United States of America, China has moved much
closer to WTO accession by reaching agreement on major outstanding issues during June
4-8 bilateral talks in Shanghai, China, according to a June 14 release from the Office of
the United States Trade Representative (USTR). Both countries had previously signed a
bilateral agreement in November 1999 that contained China's commitments to provide
greater market access for U.S. goods and services. The present agreement gives
specificity to the earlier undertaking. China has now completed its negotiations on similar
bilateral agreements with all members requesting market access agreements except for
Mexico, but several important steps remain ahead in China¹s WTO accession process.
An important subject of the June agreement was China's trade-distorting domestic

support for Agriculture. The WTO Agreement on Agriculture (AoA) requires members to
cap and reduce trade-distorting government support, both overall and for each specific
product. The sum of support provided under these two categories is technically called a
member's "Aggregate Measurement of Support," or AMS. In calculating their AMS,
members are permitted to exempt support that falls below a certain minimum amount,
i.e.,"de minimis" exemption, which, is normally for developing countries 10% of the
value of agricultural production. Because China's current level of support is less than 2%
it has agreed to bind its AMS at zero and a de minimis exemption of 8.5%. It has also
agreed to forgo recourse to a separate exemption under Article 6.2 of the AoA, which
permits developing countries an unlimited exemption for support for programs intended
to encourage agricultural and rural development for resource-poor farmers, in particular
investment subsidies programs, input subsidies programs, and programs for
diversification from narcotic crops. China also foregoes all export subsidies.
With respect to Services, market access commitments in distribution and insurance

services under the 1999 agreement were clarified. Similarly trading rights (the right to
import and export goods) were clarified in respect of both "foreign-invested companies"
located in China and foreign companies that export goods to China without forming a
company in China. For the former, China will phase-in trading rights over a three-year
period. In the case of the latter, the agreed text limits the types of requirements that China
can impose as a condition for obtaining trading rights and provides that trading rights will
be granted in a non-discriminatory and non-discretionary way. Further information is
available at http://www.ustr.gov/releases/2001/06/01-38.pdf
ACTIVE US TRADE AGENDA
On June 13, Republican U.S. Congressman Phil Crane, Chairman of the House Ways and
Means Subcommittee on Trade, introduced a bill known as The Trade Promotion
Authority Act of 2001 that would give the Executive Branch the authority it needs from
Congress to negotiate key trade agreements, as set forth in the President George W.
Bush's '2001 International Trade Legislative Agenda'. Enactment of the TPA is at the top
of the President's Agenda, which aims to pursue (a) a new round of global trade
negotiations under the auspices of the WTO; (b) A Free Trade Area of the Americas
agreement; and (c) other regional and bilateral trade negotiations.
The latter includes concluding free trade agreements with Chile and Singapore,
implementation of the U.S.-Jordan FTA, the Vietnam Bilateral Trade Agreement and the
Laos Bilateral Trade Agreement; renewal of the Andean Trade Preference Act; re-
authorization of the General System of Preferences Program; and enactment of the
Southeast Europe Trade Preference Act. The latter aims inter alia to "promote stability
and economic development in Southeast Europe through increased access to the U.S.
market and the facilitation of regional investment and to encourage a broader opening of
markets in Europe and elsewhere to goods from within the region". It aims as well to
support the promotion of core labor standards by adopting criteria that conform to those
in existing preferential trade programs and to encourage governments in the region to
eliminate trade in persons.
The Agenda contains also a Labor and Environment "Toolbox" of actions that could be
taken in combination with trade negotiations in order to promote the protection of
children, adherence to core labor standards, and mutually supportive trade and
environmental protection policies. The President seeks to improve the country's trade
adjustment assistance programs for workers by emphasising improvements in skills
training. Further details are available from http://www.ustr.gov/agenda.pdf
IDB SUPPORT TO THE RNM
Our previous issue (RNM UPDATE June 12, 2001) reported on activities under two
projects supported by external donors. This issue summarises activities supported by the
Inter-American Development Bank through the CRNM/IDB Project, over its two-year
life cycle, which commenced in July 1999. The general objective of this Project is to
enhance the skills and improve the technical data available to CARICOM countries in
their preparation for regional, bilateral and multilateral trade negotiations. The
Programme consists of two components: strengthening the technical capabilities of the
RNM through a programme of Technical Policy Studies and strengthening the
negotiating capabilities of CARICOM Member States through a programme of training.
The Project has provided support for eight major Policy Studies in accordance with the
Project Agreement. The Project has underwritten the cost of holding three regional
consultations, which examined the draft final reports of some of these studies, along with
others conducted within the RNM. The most recent CRNM/IDB activity of this type was
the two-day Consultation on Technical Studies, held in Barbados on June 8-9, 2001.
These consultations serve to disseminate findings and recommendations and to receive
feedback for the preparation of final reports.
Training programmes have been provided at two levels. Three workshops over 4-5 days
have been held on trade negotiating skills and techniques. These are designed to improve
the negotiating skills of technical officials involved in international trade negotiations. In
addition ad-hoc training courses in specific areas have been held. Seven courses ranging
from 2-4 days have covered the following subjects separately: Government Procurement,
Intellectual Property, Market Access and Rules of Origin, Services, Competition Law and
Policy, Rules of Origin and Dispute Settlement. These courses have benefited
approximately 276 participants, who are, in the main, senior trade policy officials from
government ministries and agencies and from regional institutions, as well as
representatives from private sector bodies. Participants' feedback has been highly
positive.
BRIEFS
Caribbean rum industry concerns
Proposals from beneficiary countries for the renewal of the ten-year old US Andean
Trade Preference Act (ATPA), which expires on December 3, 2001, include the addition
of new products for duty free treatment, including rum, a product in which Colombia is
already making limited inroads into the US market even though its products are subject to
duty. Rum was initially excluded from ATPA in recognition of its importance to
Caribbean economies, including Puerto Rico and the US Virgin Islands. Since Colombia
is already a large producer of sugar cane based beverages with announced plans for
further expansion, the West Indies Rum and Sugar Producers Association (WIRSPA),
along with Caribbean ambassadors in Washington, has been active in making the
Caribbean case to protect their access benefits gained under the CBI, prior to which
Caribbean rum exports were subject to duties two to three times higher than Scotch
whisky and other imported spirits. This was done primarily to protect the US domestic
rum industry.
Another concern derives from the fact that the Philippines has signalled its intention to
ask for duty-free treatment for its rum under the US GSP. This is potentially the biggest
threat for, apart from the fact that the Philippines is a huge producer, if such a request
were granted, the USA would have to extend GSP treatment to the about 120 other
countries (not counting CBI countries). The Philippines has on two previous occasions
sought GSP treatment for rum in the U.S. market but this was denied on both occasions.
The Philippines has until the end of June to submit its application.
Intellectual Property Initiative for LDCs
Haiti will benefit from a new initiative launched jointly by the World Intellectual
Property Organization (WIPO) and the WTO, on 14 June 2001, to help least-developed
countries (LDCs) maximise the benefits of intellectual property protection. Least-
developed countries have until 1 January 2006 to comply with the WTO Agreement on
Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement), six years later
than other developing countries. LDCs have to bring their laws on copyright, patents,
trademarks and other areas of intellectual property into line with the TRIPS Agreement.
They also have to provide ways of enforcing the laws effectively, in order to deal with
piracy, counterfeiting and other forms of IP infringement.
Dr. Kamil Idris, Director General of WIPO, stressed that to give these countries national
ownership of intellectual property protection was crucial in assisting them and he
emphasized that intellectual property was a tool for technological advancement,
economic growth and wealth creation for all nations, especially for LDCs. The initiative
offers varied forms of technical assistance, including co-operation with preparing
legislation, training, institution-building, modernising intellectual property systems and
enforcement. Of the 49 countries defined by the UN as LDCs, 30 are members of the
WTO (another six are negotiating WTO membership) and 41 are members of WIPO.
Chile-U.S. Free Trade Negotiations
These bilateral negotiations offer some insight into the duration and scope of bilateral
trade negotiations nowadays. The negotiations were launched in December 2000 and the
fifth round of talks has just been concluded (June 15). The parties have agreed to meet
again from July 23-27 to be followed by monthly meetings from September to the end of
the year. Seventeen negotiating groups have been established, as well as a negotiating
group "to discuss the larger institutional issues which will define the agreement". The
parties aim to conclude a state of the art free trade agreement, setting high standards for
such agreements in the Western Hemisphere and throughout the world.
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Henry S. Gill,
Communications Director,
Tel: (246) 430-1673
Fax: (246) 228-5264
* * *
RNM UPDATE
June 12, 2001

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- RNM-RELATED REGIONAL MEETINGS UNDERWAY

- RNM CONSULTATION CONCLUDED
- RNM DONOR SUPPORT
- OECS TRADE POLICY REVIEW COMPLETED
- DOHA MINISTERIAL
- UPCOMING EVENTS
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RNM-RELATED REGIONAL MEETINGS UNDERWAY
A series of very important meetings on the subjects of CARICOM's external economic

relations and the RNM are taking place this week in Kingston, Jamaica, culminating with
the Fifteenth Meeting of the Prime Ministerial Sub-Committee on External Negotiations
on 15-16 June.
The week began with a meeting of officials comprising the Review Group on the
Strategic Plan for the RNM, which continued discussions started last month in Guyana on
an RNM organisational review, networking and co-ordinating in terms of external
negotiating structures and in relation to the bodies of the Community, as well as
payments and budgetary matters.
Starting today Ministers attending a two-day Special Meeting of CARICOM's Council

for Trade and Economic Development (COTED) will deliberate on the Region's external
agenda, which covers Hemispheric Issues, including a plan for preparation of the
Region's position on Smaller Economies in October 2001; ACP-EU Relations, in respect
of preparations for negotiations on New Trading Arrangements (2002); WTO Matters;
and Bilateral Relations, in respect of Canada, Colombia, Cuba, the Dominican Republic
and Venezuela.
The conclusions and recommendations of these meetings will be considered by the Prime
Ministerial Sub-Committee, which is expected to submit its proposals for the Region's
position on the various external issues discussed and for the future of the RNM to the full
meeting of Heads of Government of the Caribbean Community, which will take place in
Nassau, The Bahamas, on 3-6 July.
RNM CONSULTATION CONCLUDED
The RNM held a two-day Consultation on Technical Studies, in Barbados on June 8-9,
2001, with the participation of government officials and regional organisations (the
Caribbean Community Secretariat, OECS Secretariat and IICA), in addition to
representatives from private sector and producer bodies, including the Sugar Association
of the Caribbean, the Caribbean Poultry Association, Caribbean Export, and the Barbados
Agricultural Society. The Consultation addressed issues arising from the following
studies:
-"CARICOM Agriculture and the FTAA: Priorities and Interests," by Prof. Timothy
Taylor of the University of Florida;
-two studies on the implications for the Caribbean of the European Union's 'Everything
But Arms' Initiative, one of which dealt specifically with the sugar and rice industries, by
Dr. Christopher Stephens of Sussex University; as well as
-a study on "Implications of European Enlargement for CARICOM Countries", jointly
presented by Professors David Greenaway and Prof. Chris Milner of Nottingham
University.
The Consultation also brought together agriculture officials from the Region to consider
an RNM draft negotiating proposal for the the WTO negotiations on Agriculture, in
respect of Domestic Support and Export Competition. Discussions resulted in a
consensus document, which will be submitted for the consideration of COTED and for
eventual endorsement of the Conference of Heads of Government. CARICOM previously
approved a proposal on Agriculture in respect of Market Access, which was presented at
the Fifth Special Session (February 5-7, 2001) of the WTO Committee on Agriculture.
RNM DONOR SUPPORT
First Phase of DFID Support Completed
The two-year CARICOM Trade Project (CTP), financed by the UK Department for
International Development (DFID) in support of RNM capacity-building, concluded on
May 31. The CTP, which was project managed by the UK-based Emerging Market
Economics (eme) Ltd., has blazed the trail for external donors, not merely by the range of
activities enabled, but also through the originality of certain components.
The Project has enabled the formulation of the RNM's Communications Partnership
Strategy (CPS), an innovation aimed at involving its stakeholders in government, the
private sector and civil society at large, in a two-way communications interaction with
the RNM. CPS objectives have been to inform, educate and sensitise stakeholders about
the international trade policy and negotiations environment, attendant challenges and
opportunities for the Caribbean Region, as well as the RNM's mission and functioning,
with the ultimate objective of eliciting stakeholder feedback. This is accomplished
through inter alia lectures, addresses, papers and other presentations at workshops,
seminars, symposiums and conferences; through briefing sessions, both routine and ad
hoc; informal discussions; through the use of the RNM website and computer-generated
information exchange and dissemination, including the RNM UPDATE series.
Another innovation has been the Professional Trainees Programme, a fellowship scheme
which enables candidates selected on merit to undergo a ten-month apprenticeship in
order to deepen knowledge of trade negotiation subjects and develop negotiation skills,
thereby cultivating a younger generation of Caribbean trade negotiators. Trainees are
assigned to an RNM or affiliate office where they undertake supervised research, attend
trade policy/negotiation courses in different locations, participate in actual international
trade negotiations and undergo an attachment at some other international institution
actively involved in trade negotiations. Under the CTP six Trainees have completed this
programme and two are undergoing training. The programme is considered to be highly
successful, arousing interest from potential trainees and the donor community.
Support for technical studies has been a critically important element of the CTP, as
indeed of other RNM projects funded by the CDB, IDB and CIDA. Ten major studies
have been undertaken under this facility. The CTP has in addition included a
complementary facility whereby "call-down" experts can be mobilised at short notice for
a variety of purposes, including Reflection Group Meetings, seminars and workshops;
drafting text of the Region's proposals on certain negotiating subjects; short studies,
technical papers, and peer reviews of larger technical studies; as well as expert attendance
at negotiations and other activities. In addition the CTP included a small information
technology-related component.
With completion of the CTP, DFID has pledged to continue its support to the RNM over
the long term, using as a basis the RNM's Strategic Plan being developed. It has decided
to provide support directly as an indication of confidence and in order to forge a closer
relationship, starting immediately with a six-month interim program. During this period
DFID aims to support increased emphasis on communications activities and continuance
of the trainee programme, as well as to support the inclusion of two technical staff
members and provide assistance for strengthening the RNM's financial management
system.
Canada-supported trainee activity underway
Four RNM Professional Trainees funded under the RNM/CIDA Trade Support Project,
which is being implemented since January 2, commenced their fellowships in June. The
trainees were chosen in April from over 220 applicants by a selection committee chaired
by Prof. Kenneth Hall, Pro-Vice Chancellor of the Mona campus of the University of the
West Indies, and comprising UWI and RNM personnel.
Together with two trainees funded under the RNM/DFID program, the CIDA-supported
trainees will participate in the Advanced Training Course on "Multilateral and Regional
Trade Issues For The Americas", which will take place at Georgetown University in
Washington D.C., from June 18-29. The course is being sponsored by the OAS and the
WTO.
OECS TRADE POLICY REVIEW COMPLETED
In what is regarded as an important exercise in transparency, on the 5th and 7th of June
2001 the Trade Policy Review Body of the WTO conducted the first review of the full
range of trade policies and practices of the six OECS-WTO Members (Antigua and
Barbuda, the Commonwealth of Dominica, Grenada, St Kitts and Nevis, St Lucia and St
Vincent and the Grenadines). All six Members were represented at Ministerial level:
Hon. Hilroy Humphreys; Hon. Osborne Riviere; Hon. Elvin Nimrod; Hon. Sam Condor;
Hon. Julian R. Hunte; and Hon. Conrad Sayers. Delegations also included Permanent
Secretaries and other senior officials. The OECS Secretariat was also represented. Dr.
Kathy-Ann Brown of the RNM and Dr. Grynberg of the Commonwealth Secretariat
served as Technical Advisors.
The review was based on two documents: the WTO Secretariat report (WT/TPR/S/85
dated 7 May 2001), and the Report by the Governments (WT/TPR/G/85 of the same
date). The Secretariat report covers the development of all aspects of the six OECS-WTO
Members' trade policies, including domestic laws and regulations, the institutional
framework, trade policies by measure and by sector. In keeping with WTO practice there
was a Discussant, Ambassador Michèle Pranchere-Tomassini of Luxembourg. The
meeting was chaired by the Ambassador of Finland.
OECS Ministers told WTO Members and Observers that "the rules and procedures of the
multilateral trading system must take into account the circumstances of all Members in
particular the smallest and most vulnerable. We must not be made to feel that the system
excludes us at critical moments. This exclusion will occur where there is no real and
effective recognition of the unique circumstances we face as small island developing
states and the need for special and different treatment. It is these circumstances which
preclude our countries from taking advantage of the new trading opportunities."
The Chairperson's concluding remarks included the following points:
-All WTO Members would have gained a better appreciation of, and would no doubt pay
greater attention to, the problems and difficulties of these economies;
-WTO Members encouraged these countries to continue in their path to diversify their
economies, particularly with a view to reducing their vulnerability. Some WTO Members
considered that continued emphasis on developing the service sector offered the best
growth opportunities, while other Members considered that agriculture would, and
should, remain a key sector of the economies;
-Members recognized the efforts made by OECS-WTO Members to further liberalize

their economies, particularly through tariff reductions in the framework of their
participation in CARICOM, but concerns were expressed with respect to the persistence
of quantitative restrictions, wide-spread import licensing requirements, and the use of
safeguard measures. Although reduced, tariffs remained relatively high, but Members
took the point that this was mainly for revenue purposes; some suggested that a more
simplified tariff structure might be more appropriate. Some Members also suggested
alternative revenue sources, with a Member proposing the adoption of a Value-Added
Tax, the feasibility of which OECS countries are already studying;
-Several Members also encouraged the countries under review to improve their
commitments in the WTO with respect to services, putting them at a level comparable
with their current, relatively liberal practices;
-The Review has made clear the extent to which complying with WTO rules is
constrained by limited human resources. In this regard, although means might be found to
make more efficient use of those resources, including through ongoing initiatives for
greater regional cooperation, the inescapable conclusion is that at this juncture the
countries under review need the support of the international community to participate
more effectively in the multilateral trading system; and
-Several Members were understanding of the request by the OECS-WTO Members for
special consideration for them, anchored in the principle of special and differential
treatment granted in the WTO to developing countries. While noting the problem posed
to OECS-WTO Members by the erosion of preferential margins, some Members
expressed support for an early granting of the waiver from WTO rules for the Cotonou
Agreement.
Related documentation is available at

http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm#oecs2001
DOHA MINISTERIAL
Following the WTO Ascension break, the Chairman of the General Council, Ambassador
Stuart Harbinson of Hong Kong, convened open-ended informal consultations on the
Fourth WTO Ministerial to be held in Doha, Qatar and other issues. Some recent
pronouncements by government representatives of CARICOM countries regarding the
Ministerial provide insights into the Region's concerns and interests, in view of proposals
by some countries that Doha should be an occasion for launching a new round of
multilateral trade negotiations.
A Communiqué issued by the the OECS-WTO Members on June 7 stated that they are
"keenly aware that efforts are being made to launch a new round of multilateral trade
negotiations. They feel that they cannot justify their unequivocal support to this initiative
unless the problems of implementation of the Uruguay Round Agreements and Decisions
raised by developing countries, including the special circumstances of small island
developing states, are satisfactorily addressed and resolved."
Ambassador Ransford Smith of Jamaica, in comments to the ACP Trade Ministerial

Committee last month, explained that the most aggressive proponents want an 'inclusive'
new Round, which would mean negotiations after Doha on investment, competition
policy, transparency in government procurement, trade facilitation, environment, and
possibly e-commerce. In addition some means of dealing with the labour issue would also
be expected. These are the so called 'trade-plus' issues and are in addition to services and
agriculture, which are already part of the negotiating agenda; possibly industrial tariffs;
and aspects of rules, such as anti-dumping and subsidies. Among the issues posed, he
argued, are the sheer human resource and technical demands; in an area such as
competition policy, as many as eighty or more developing countries presently have no
national competition policy legislation or the associated experience in administering such
legislation, yet might be called upon to negotiate this issue at the multilateral level. In
policy terms, this could result in the existing policy space available to developing
countries being further eroded, as we have seen to be the case when new issues such as
Trade Related Intellectual Property Rights (TRIPS) and Trade Related Investment
Measures (TRIMS) were brought into the WTO at the time of the Uruguay Round.
Jamaica's ambassador has argued further that while there is a requirement that WTO
Ministers meet every two years, there is no requirement for a Round to be launched.
Moreover, the occasion would be timely to have a full review and assessment of the
WTO's ongoing work of the Organization, including and especially on the impact of the
Agreements already entered into. There is presently quite a full agenda in the WTO.
There are already negotiations on Services and Agriculture; there are mandated reviews,
monitoring of existing Agreements, and there is the critical need to strengthen technical
assistance and give support to capacity building.
UPCOMING EVENTS
The schedule of FTAA meetings for the next four weeks covers the following subjects:
Antidumping and Countervailing Duties (June 11-13); Technical Committee On
Institutional Matters (14-15); Government Procurement (18-19); Services (19-22);
Investment (25-27); Intellectual Property (27-28); Civil Society (28-29); Market Access
(July 2-6); Subsidies, Antidumping and Countervailing Duties (9-11); and Competition
Policy (11-13).
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Tel: (246) 430-1673
Fax: (246) 228-5264
* * *
RNM UPDATE
June 29, 2001

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- WTO DEVELOPMENTS
- CARICOM-CUBA PROTOCOLS SIGNED
- FTAA DISCUSSIONS
- FATF MONEY LAUNDERING REPORT
- BRIEFS
- UPCOMING EVENT
************************************************************************
WTO DEVELOPMENTS
The Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS) met in
the week of 18-22 June 2001. Among the scheduled reviews were those of Antigua &
Barbuda, Dominica, Grenada, Guyana, Jamaica, St Kitts & Nevis and Suriname with
follow-up questions for St Lucia. The review process requires the notification of
legislation, and submission of responses to questions. For such reviews it is standard for
Members to make an introductory statement providing an overview of existing legislation
and attempts at further implementation of TRIPs obligations.
Dominica, Jamaica and Suriname were reviewed. Most had submitted responses to
questions posed but some responses were outstanding. St Lucia had submitted responses
to all outstanding questions, but received one more follow-up question from Switzerland
seeking clarification of its position with respect to geographical indications - a growing
subject of controversy in the TRIPs Council. Suriname is faced with particular challenges
in adopting TRIPs-compliant legislation.
With regard to the reviews that were taken up for the first time at the most recent meeting
of the TRIPs Council, including Antigua and Barbuda, Dominica, Jamaica and St Kitts
and Nevis, the Council agreed that:
outstanding responses to initial questions posed in the newly initiated reviews should
be submitted to the country concerned and the Secretariat by 13 July 2001.
any further follow-up questions that countries may have in connection with these
reviews should be submitted to the country concerned and the Secretariat by 3 August
2001.
The Council also set a target date of 17 August 2001 for the submission of responses to
follow-up questions which have already been posed, fine-tuned versions of responses to
questions to which preliminary replies have been given and, to the extent possible,
responses to any further follow-up questions that may be submitted before 3 August
2001.
The repeated deferral of some Caricom Member States' reviews suggests that some sort
of technical assistance is required. The Dominican Republic, which was also up for a
review, received overall commendation for the comprehensive nature of their
introductory statement and the detailed responses provided to questions. Reviews of
Antigua & Barbuda, Grenada, Guyana, and St Kitts & Nevis will be taken up in
September 2001.
CARICOM-CUBA TRADE AND ECONOMIC COOPERATION AGREEMENT
Trade and economic relations between CARICOM and the Republic of Cuba received
another boost with the recent signing of two Protocols amending the Trade and Economic
Co-operation Agreement between them, signed almost one year ago on July 5, 2000, at
Canouan, St. Vincent and the Grenadines.
The two Protocols, signed in Kingston last week on the fringes of the 15th Meeting of the
Prime Ministerial Sub-Committee on External Relations, made amendments to the
Product Lists contained in Annexes I to V of the Agreement, and introduced two new
Agreements on the Reciprocal Promotion and Protection of Investments and on the
Protection of Intellectual Property Rights.
CARICOM Secretary General Edwin Carrington signed on behalf of the Community.

The Hon. Ricardo Cabrisas, Senior Government Minister signed on behalf of the
Government of the Republic of Cuba. Sir Shiridath Ramphal, Chief Negotiator of the
Caribbean Regional Negotiation Machinery was also present, as well as several Ministers
of the CARICOM countries.
The Protocols require both Parties to notify each other when their internal legal
procedures have been completed, in order to facilitate entry into force of the Agreement
on or before 1 July 2001. It is envisaged that the Joint Commission established under the
Agreement will convene its first meeting very soon after entry into force, to deal with a
number of outstanding issues for both Parties.
Among other things, the first meeting of the Joint Commission is expected to approve the
revised Product Lists, which shall have legal effect as the list of products in Article V of
the Agreement. That meeting is also expected to consider the treatment of Salt under the
Agreement, as well as deal with the concerns raised by Jamaica and Barbados in relation
to the Investment Agreement and the peak periods for certain agricultural products,
respectively.
FTAA DISCUSSIONS
The Present Phase
The second tranche of FTAA negotiations began on May 7, 2001 with the meeting of the
Group on Services. FTAA meetings have been taking place in Panama where the
Secretariat is currently based. All nine (9) Negotiating Groups along with the four (4)
Special Committees have held first meetings and are deciding on work programs for this
tranche. The Groups will base their work plans on the instructions received from the
Ministerial Meeting, held in Buenos Aires, in early April 2001. The Ministerial
Declaration of April 7 was summarised in RNM UPDATE April 12, 2001 and is
available at
HTTP://www.ftaa-alca.org/ministerials/BAmin_e.asp
Delegations will aim, in this new tranche, to eliminate as many brackets as possible from
the draft text, in order to reach agreement and move one step closer toward the proposed
deadline of January 2005 for the completion of the FTAA agreement. Square brackets
enclose the areas of disagreement and a significant portion of the text submitted by
delegations still remains in brackets, signifying a lack of consensus on a wide number of
issues. Plans are currently underway to make the draft texts available on the FTAA
website for public access and RNM UPDATE readers will be informed as soon as this
comes to pass.
New Committee Meets
The First Meeting of the Technical Committee on Institutional Issues (TCI) was held in
Panama on June 14, 2001. The TCI is the fourth special committee established within the
FTAA process, along with the Consultative Group on Smaller Economies, the Joint
Government-Private Sector Committee on Electronic Commerce and the Committee of
Government Representatives on Civil Society.
The TCI discussed the drafting of a Work Program, to be submitted for the consideration
of the Vice-Ministerial Trade Negotiations Committee (TNC) before its meeting in
Managua, Nicaragua, on September 26-28, 2001; the number of meetings the Committee
would hold; and the possibility that delegations might add, at any time other, topics
and/or agenda items in respect of the overall architecture of the agreement. For the next
meeting scheduled for August 2-3, the Committee will undertake a general debate on the
overall architecture of the FTAA agreement, examining, as appropriate, the experiences

of bilateral and subregional agreements in the Hemisphere.
The Committee agreed that delegations who wish to do so may submit by July 12, 2001
written contributions to stimulate the debate regarding general provisions, other
procedural or substantive issues and the relationship between the TCI and other FTAA
entities.
FATF MONEY LAUNDERING REPORT
The Financial Action Task Force on Money Laundering published its twelfth annual
report on 22 June, 2001, outlining its main achievements in 2000-2001, including the
significant progress in work on non-cooperative countries and territories (NCCTs). The
FATF has decided to remove the Bahamas, the Cayman Islands, Liechtenstein and
Panama from the list, but will monitor closely future developments in those countries.
The updated list of 17 NCCTs includes three Caribbean countries: Dominica, St. Kitts
and Nevis, and St. Vincent and the Grenadines. The FATF will review the situation of
each country on the list as a matter of priority at each Plenary meeting. The Report
indicates that co-operation with the international organisations concerned with combating
money laundering was marked by reinforced collaboration between the FATF and the
International Financial Institutions, namely the IMF and the World Bank, which
generally recognised the Forty Recommendations of the FATF as the international anti-
money laundering standards.
The FATF is an independent international body comprising twenty nine member

countries and governments. Two international bodies are also members of the FATF: the
European Commission and the Gulf Co-operation Council. Its Secretariat is housed at the
OECD. The FATF calls on its members to request their financial institutions to give
special attention to businesses and transactions with persons, including companies and
financial institutions, in these countries or territories. The report can be obtained at
http://www.oecd.org/fatf/pdf/PR-20010622_en.pdf
BRIEFS
Intra-CARICOM Movement of Skills
On June 26, the Trinidad and Tobago Parliament passed the Immigration (Caribbean
Community Skilled Nationals) Act 1996. The bill had initially been presented in 1996 but
it required amendments since its previous format presaged immigration problems. The
passing of this piece of legislation provides impetus to the implementation of the goal of
implementing the free movement of university graduates within the Caribbean
Community.
India urges Developing Countries
India said on June 19 that it would oppose any move to link labour and environmental
issues with trade at the fourth WTO Ministerial Conference to be held in Doha, Qatar,
from November 9 to 13 and urged developing nations to develop a common stand.
Commerce and Industry Minister Murasoli Maran said in a letter to the Group of 77 that
attempts were often made to link labour conditions to trade as "an excuse to distort
competition, undermine comparative advantage and provide Trojan horses of
protectionism". As to the launching of a new Round of multilateral trade negotiations,
Maran said that WTO work should concentrate on the full implementation of the
Uruguay Round results.
UPCOMING EVENTS
The Twenty-Second meeting of the Conference of Heads of Government of the

Caribbean Community will take place in Nassau, The Bahamas, on 3-6 July 2001. The
wide-ranging agenda of the Conference includes the Report from the Prime Ministerial
Sub-Committee on External Economic Relations, which addresses the various trade
negotiations in which the Region is involved and matters relating to the structure and
functioning of the RNM, as well as to its budget. Among other items on the agenda of the
Conference are the Report from the Eighth Meeting of the Community Council of
Ministers; progress reports on the CARICOM Single Market and Economy and the
Establishment of the Caribbean Court of Justice; Regional Security Issues; Preparations
for Upcoming Summits; Developments in Haiti; Border Issues; and HIV/AIDS.
The First ACP Civil Society Forum will take place In Brussels on 4-5 July. This conclave
will be followed on 6-7 July by the First ACP-EU Civil Society Forum, which will take
place at the Egmont Palace, on the Participation of Civil Society in the implementation of
the Cotonou Agreement. About 140 representatives of civil society organisations from
the ACP and 20 representatives of EU civil society organisations, along with government
representatives, are expected to participate in the conference.
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Henry S. Gill,
Communications Director,
Tel: (246) 430-1673
Fax: (246) 228-5264
* * *

RNM Update - 2001-04-03

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April 03, 2001

Prepared by the Communications Division of the Caribbean Regional Negotiating

Positions are already polarising as to whether the Fourth WTO Ministerial, to be

ACP JOINT MINISTERIAL TRADE COMMITTEE MEETING IN SOUTH

RNM TRAINING WORKSHOP ON RULES OF ORIGIN

Continuing its series of training workshops on trade negotiation subjects funded

-equip participants to contribute to the development of the CARICOM negotiating

DR-Haiti Free Trade Talks

Pro-Cuba Lobby Formed in U.S.

Prepared by the Communications Division of the Caribbean Regional Negotiating

- FTAA MINISTERIAL DECLARATION

FTAA MINISTERIAL DECLARATION

Smaller Economies: Concerns of CARICOM and others regarding the smaller

Business Facilitation Measures: No new business facilitation measures have been

The full text of the Ministerial Declaration is available at www.ftaa-

WTO: THE WAIVER ISSUE

A significant clarification of the position of this second group of developing countries

EU AND USA REACH BANANA AGREEMENT

HISTORIC OECS TELECOMMUNICATIONS AGREEMENT

On April 7 an historic Memorandum of Understanding (MOU) was concluded in Grenada

Prepared by the Communications Division of the Caribbean Regional Negotiating

Special Session on E-Commerce

U.S. ADMINISTRATION'S TRADE REQUEST

On May 2 the European Commission adopted a regulation to implement the banana

According to an EC release, the new arrangements will continue to be largely managed

RNM TRAINING WORKSHOP ON DISPUTE SETTLEMENT

-promote a better understanding of the concept of dispute settlement among negotiators in

For further information please contact mroberts@caribrnm.net

ACP Meetings in Brussels

May 11: The 26th Session of the ACP-EC Joint Council

Prepared by the Communications Division of the Caribbean Regional Negotiating

- EU-ECUADOR BANANA AGREEMENT

G-24 TARGETS PROTECTIONISM IN DEVELOPED COUNTRIES

Ministers of the Intergovernmental Group of Twenty-Four on International Monetary

"Barriers to developing country exports in industrialized markets continue to severely

POST-URUGUAY ROUND MARKET ACCESS

With respect to industrial products:-

With respect to agriculture:-

With respect to services:

The study is available at http://www.wto.org/english/res_e/booksp_e/maccess_e.pdf

Canada-Costa Rica Free Trade Agreement signed

Foundation Award for Caribbean Study

The John D. and Catherine T. MacArthur Foundation has awarded a US$498,000

It recognises that greater openness is central to advancing economic development in the

8 May - ACP Ministerial consultations on Bananas and Sugar

9-10 May - ACP Council of Ministers

13 May - 2nd Meeting of the ACP Ministerial Trade Committee

Prepared by the Communications Division of the Caribbean Regional Negotiating

- QUEBEC CITY SUMMIT

CARICOM's position, articulated by Prime Minister Owen Arthur of Barbados at the

A Declaration on Connecting the Americas launched a "Connectivity Agenda for the

Sequel to EU-US Agreement

WTO Waiver discussions

Paraguay supported Ecuador's position complaining that only a small number of

Windward Islands Banana Marketing

ACP MINISTERIAL DECISIONS

Prepared by the Communications Division of the Caribbean Regional Negotiating

The Ministers delegated to the Committee of Ambassadors important powers including

In regard to preparation for the negotiations on the Economic Partnership Agreements

The ACP Ministerial Spokesman on Sugar, Hon. Pravind Jugnath, Minister of

Political dialogue, which is enshrined in the Cotonou Partnership Agreement, was a

Additional information is available through the ACP Secretariat at

WORLD TRADE REPORT