1. TRADE AGREEMENTS
101
www.crnm.org Vincent Atkins

2. 2
Implications of Trade
Agreements for Agriculture
Implications of Trade Agreements for Agriculture

3. Agriculture Trade in CARICOM
g
3
Implications of Trade Agreements for Agriculture

4. Agriculture Trade in CARICOM
g
4
Limited range of exports, comprised mainly of
primary agricultural products – sugar, rice, bananas,
fresh fruits, vegetables and root crops.
Wide range of imports mainly processed foods
including grains and cereals, beverages, meat and
fish products, dairy products, oils and fat.
Implications of Trade Agreements for Agriculture

5. Agricultural Trade in CARICOM
g
5
Limited number of markets, mainly regional (fruits,
vegetables and root crops); Europe (rice, sugar,
bananas, rum, sea-food) US and Canada (sugar,
, , ) ( g ,
rum, tropical fruits and vegetables, sea-food)
Heavy concentration on export of primary products
y p p yp
in most countries – Guyana, Belize, Jamaica,
Suriname and Windward Islands.
Implications of Trade Agreements for Agriculture

6. Limitations to Growth in
6
Agriculture in CARICOM
Ag i lt i
Limited scope for large scale production in
individual countries except Guyana and Belize.
Limited scope for mass production of processed
goods in individual countries- lack of domestic
capacity.
p y
Limitations imposed by high input costs, high
transportation, processing and labour costs.
Structural and Infra-structural weaknesses.
Implications of Trade Agreements for Agriculture

7. Opportunities for Growth of
7
Agriculture in CARICOM
Ag i lt i
Availability of preferential markets under secure
trading arrangements.
Relative proximity to markets.
Skilled and educated labour force.
Scope for joint undertakings at regional level to
overcome scale dis-economies.
Scope for production of high value products
high-value products.
Availability of niche markets.
Implications of Trade Agreements for Agriculture

8. Opportunities for growth in
8
Agriculture in CARICOM
Ag i lt i
Relatively supportive/conducive policy environment.
e a ve y suppo ve/co duc ve po cy e v o e .
Competitive advantage in high skilled, high value, or
luxury purchases – high value rum, for example.
Accessibility to imported raw material and other inputs
for agro-processing ( scope for cumulation under rules
of origin).
f i i )
Improved rules and regulations in relation to
investments; trade facilitation; services – regionally and
internationally.
Implications of Trade Agreements for Agriculture

9. Opportunities for Growth in
9
Agriculture in CARICOM
Ag i lt i
Existence of new and emerging markets - Latin
America
High end markets in China, Japan, India, Brazil
Implications of Trade Agreements for Agriculture

10. Products with relative protection in
10
domestic/regional markets
d ti / i l k t
Spirits and spirituous
p p Most fruits and
beverages vegetables
Aerated beverages Beverages, sauces,
Vegetable Oils jams, jellies, and other
Poultry and most meats condiments.
and meat products Tobacco
T b
Most fish and fish
products
d t
Ornamental plants
and flowers
Implications of Trade Agreements for Agriculture

11. Market Access Concerns
11
Elimination of Customs duties.
Supportive Rules of Origin
Origin.
Elimination f Non-tariff b i
Eli i i of N iff barriers; C d i
Conducive
Technical Regulations, standards and SPS measures
Implications of Trade Agreements for Agriculture

12. Existing Trade Arrangements
g g
12
CSME – facilitates regional production and trade.
EPA – allows duty free, quota free entry into EU
market for all agricultural products.
Special safeguard provisions seek to protect
domestic production and regional markets and
provide opportunities for development.
List of products excluded from liberalisation in
CARICOM.
Implications of Trade Agreements for Agriculture

13. Existing Trade Arrangements
g g
13
Bilateral arrangements with Costa Rica, DR,
Colombia, Cuba, Venezuela
CBI Arrangement with the US – Potential for new
free trade agreement.
CARIBCAN Arrangement with Canada –
Negotiations of new trade and development
agreement initiated. Potential for duty-free, quota-
free entry for CARICOM products. List of excluded
products to be negotiated.
Implications of Trade Agreements for Agriculture

14. Agriculture in the WTO
g
14
Limited change in domestic agricultural policies of
small vulnerable economies.
Tariff reduction from bound rate – unlikely to affect
applied rates.
Provisions for Special products – protection of
domestic production and food security.
Special provisions for products which benefit from
special preferences in US and EU markets.
Implications of Trade Agreements for Agriculture

15. Agriculture in the WTO
g
15
Tariff reduction in developed and advanced
p
developing countries may lead to marginal
improvements in market access to these markets for
competitive [ high value, hi h quality] products.
ii hi h l high li ] d
Persistence of high subsidy l l i d l
P i f hi h b id levels in developed
d
economies will undermine competitiveness of
producers in CARICOM and other developing
countries. Need improvement in
production/marketing practices.
Implications of Trade Agreements for Agriculture

16. Agriculture in the WTO
g
16
Special safeguard mechanism for agriculture may
provide relief from adverse competition.
Scope for use of incentives to agriculture (domestic
support) under Special and differential provisions
but limited by budgetary constraints and other
y g y
domestic and internationally-determined [ IMF,
World Bank] policies.
Implications of Trade Agreements for Agriculture

17. ACTIVATING EPA BENEFITS IN
17
AGRICULTURE
BECOME FAMILIAR WITH THE AGREEMENTS
INCLUDING THE RULES OF ORIGIN FOR
AGRICULTURAL AND FISHERIES PRODUCTS.
ARTICULATE DEMAND FOR TECHNICAL
ASSISTANCE ESPECIALLY IN THE AREAS IDENTIFIED
FOR CO-OPERATION IN AGRICULTURE .
Implications of Trade Agreements for Agriculture

18. ACTIVATING EPA BENEFITS IN
18
AGRICULTURE
UTILISE OPPORTUNITIES PROVIDED FROM
PROVISIONS ON CUMULATION FROM EC, ACP
AND NEIGBOURING COUNTRIES.
SEEK TECHNICAL/DEVELOPMENT ASSISTANCE TO
MEET MARKET ENTRY REQUIREMENTS:
STANDARDS, TECHNICAL REGULATIONS, FOOD
SAFETY REGULATIONS.
Implications of Trade Agreements for Agriculture

19. ACTIVATING EPA BENEFITS IN
19
AGRICULTURE
FOCUS ON DEVELOPING AND MAINTAINING
COMPETITIVENESS ON DOMESTIC, REGIONAL
AND EXTERNAL MARKETS – BASED ON COST, ,
EFFICIENCIES, QUALITY, MARKETING ETC.
DO NOT BE LULLED INTO A FALSE SENSE OF
SECURITY BY PROVISIONS PERTAINING TO
EXCLUSIONS OR EXTENDED TIMEFRAMES FOR
TARIFF REDUCTION. TARIFF MAY NOT BE THE
MOST CRITICAL BARRIER.
Implications of Trade Agreements for Agriculture

20. ACTIVATING EPA BENEFITS IN
20
AGRICULTURE
BECOME FAMILIAR WITH THE AGREEEMNTS AND
ENGAGE WITH BOTH DOMESTIC AND REGIONAL
POLICY MAKERS TO SEEK TO INFLUENCE NEW
TRADE ARRANGMENTS IN YOUR FAVOUR.
DONT BE PASSIVE, BE INVOLVED !!!
Implications of Trade Agreements for Agriculture

21. Thank You
21
Please visit our Website:
http://www.crnm.org
http://www crnm org
Contact:
C t t
Mr. Vincent Atkins
LDC Trade Policy/ Technical Advisor
y/
vincent.atkins@crnm.org
Tel: +1246 430 1670 Fax: +1246 228 9528
Implications of Trade Agreements for Agriculture