United States Trade Developments 2013-2014

United States Trade Developments 2013-2014, is an annual report prepared by the ECLAC Washington Office. It provides an overview of the most relevant trade developments in the United States trade relations with Latin America and the Caribbean and the measures that inhibit the free flow of goods among countries in the Western Hemisphere. The report presents trade figures and trends over the last few years to illustrate the nature of the U.S. engagement through trade with the world and with the Latin America and Caribbean region. Special emphasis was given to trade among the U.S., Canada, and Mexico on the 20th anniversary of the North American Free Trade Agreement, and to trade with Brazil, the second U.S .trade partner in the region, after Mexico.

An assessment of the performance of CARICOM extraregional trade agreements: An initial scoping exercise

Despite its active embrace of trade liberalization and the maintainance of relatively open economies, CARICOM trade performance both within the region and extraregionally has been poor. The nexus between bilateral Free Trade Agreements (FTAs), Partial Scope Agreements (PSAs) and preferential trade arrangements, which was intended to assist in compensating for the small size of domestic and regional markets, while providing an additional tier of trade and economic integration, has thus far failed to deliver its intended results. This paper makes this conclusion in assessing the performance of these extraregional trade agreements and sheds light on issues not often discussed.

Latin America and the Caribbean and China: towards a new era in economic cooperation

Foreword by Alicia Bárcena

Development Paths In The Caribbean

This study analyzes the patterns of development in the Caribbean and gives particular focus to the challenges to and opportunities for sustainable development. The study is divided into two parts. The first part of the study examines trajectories for development in the Caribbean, while the second addresses the relationship between competition and integration.1 The significant development gains attained since independence have been threatened in the last decade. Slowing productivity growth, rising debt, increasing crime and social dislocation in recent years have adversely affected growth in per capita income and social welfare. The study therefore calls on policy makers to promote dynamic drivers of growth and development in the region. The key requirement in this regard, is the need to strengthen import productivity,2 or the efficiency with which the region uses foreign exchange. This can be done by producing and exporting more high-value services such as education and the output of the creative industries. The sub-region also needs to strengthen its systems of governance by providing more opportunities for citizens to participate in decision making. In addition, the region needs to address the inherent relationship between competition and integration by developing improved systems to cushion the negative impacts on weaker members of the integration arrangement. These could include a more robust development fund and capacity building to enable losers to benefit from regional trade and investment. However, regional integration should provide a platform for moving up the value chain, through research and development and innovation to produce more competitive exports.

The tourism sector and the global economic crisis: development implicatins for the Caribbean

Over the past two years the global economy has experienced substantial economic turmoil, resulting in severe economic contraction. While there has been a recent return to growth, this situation has impacted all economic sectors worldwide. In the highly tourism-dependent region of the Caribbean, the impact of the global economic crisis has been most notable on the tourism sector, which, from the early 1990s, became the key driver of economic growth for the region. The eventual emergence of this sector reflects an economic development history which was previously underpinned by the export of agricultural commodities, and subsequently by the adoption of the import substitution industrialization model as promulgated by Arthur Lewis. This was further stimulated by spectacular economic contraction in Caribbean economies during the 1980s as a result of changes in the global terms of trade for commodities, generally low levels of competitiveness for manufactured goods, as well as weak institutional and governance frameworks. Ultimately, many economies began to reflect fiscal and balance of payments constraints. By the end of the 1990s, too, evidence of declining competitiveness even in the tourism sector began to become apparent particularly when evaluated under the framework of the Butler Tourism Area Life- Cycle (TALC) model. The recent economic crisis, therefore, provides an opportunity to reflect on the overall approach to economic development in the Caribbean, and to assess the implications of the region’s response to the crisis. This analysis makes the case for the future development of the sector to be based on two broad strategies. The first is to deepen the integration of the tourism sector into the broader economy through the diversification of the regional tourism product, as well as the enhancement of linkages with other sectors, while the second is to expand the tourism sector into a total service economy through the introduction of new services. Considering linkages, the development of clusters and value chains to support the tourism sector is identified with respect to agriculture and food, handicraft, and furnishings. Among the new services identified are education, wellness, yachting and boating, financial services, and information and communications technologies (ICT). This overall strategy is deemed to be better suited to the macroeconomic realities of the Caribbean, where high labour costs and other structural rigidities require a high-valued specialty tourism product in order to sustain the sector’s global competitiveness.

Research on policies and institutions to support small and medium scale enterprise in the Caribbean: Trinidad adn Tobago report

The Government of Trinidad and Tobago continues to provide support to SMEs in order to enhance their international competitiveness. The increasing effects of globalization and the reality of several trade agreements require that local businesses attain and maintain a level of competitiveness which ensures their continued survival and growth. This report examines in detail the policy environment within which these enterprises operate. It also examines the role of the key implementing agencies such as the BDC and NEDCO for government’s policy on the sector and also the role of the respective line ministries. These organizations strive to deliver value added technical, financial and export promotion services to its clients on a subsidised basis. The services offered reflect five key business areas such as financing, training, technical assistance, trade assistance, business re-engineering, project management and export promotion. In the case of the BDC its services target six sectors: food and beverage, metal processing, leisure marine, including yachting, information and communication technology/electronics, printing and packaging and entertainment. These said sectors are identified by the government, on the basis of a study which was done by TIDCO, for the promotion of a cluster development strategy. In the case of NEDCO it targets the following sectors: art and craft, food and beverages, fashion and fashion accessories, culture and ecotourism, bed and breakfast operations, indigenous entertainment and light manufacturing.

The escalation in world food prices and its implications for the Caribbean

During the last years, the steep increase in food prices has been one of the most distinctive characteristics of the world economy. Many factors have been hypothesized as the main drivers of this phenomenon, both structural and temporary. International food inflation has had perceptible effects on food importing countries and regions. As such, the Caribbean has suffered the impact mainly through four channels, namely, domestic inflation, imports bill and trade balance, poverty and indigence rates, and equity. This study addresses empirically these issues from a regional perspective.

Agricultural transformation and Gender considerations in Caribbean Economics

The aim of this paper is to provide an overview of the gender and social disparities existing in the agricultural and rural sector in Caribbean economies. In this context, agricultural transformation as occasioned by the dismantling of preferential trading arrangements is analysed to identify the most relevant gender discriminatory measures in the current agricultural development policy and programmes. The analysis seeks to provide the basis for enhancing understanding among policy makers, planners and rural development practitioners of the gender and social dimension involved in the formulation of agricultural policy and more specifically in relation to the new policy and institutional arrangements for agriculture in the region. The paper also provides insights regarding what changes should take place to create an enabling environment for more gender-based approaches to policy-making and strategic planning in agricultural development and trade in the Caribbean. The methodology centred on the review of secondary sources that provide references on the new challenges, opportunities and constraints faced by the agricultural sector, in particular small farmers, in the context of globalization and agriculture transformation. Much of the literature for this assignment was obtained from FAO Headquarters in Rome and the FAO Subregional Office in Barbados, as well as the OECS Secretariat in St. Lucia. In the process of the review exercise, due consideration was given to changes in agricultural production patterns, resources allocation and rural livelihoods. Efforts to examine the most relevant policy measures and mechanisms in-place in support to agricultural development in the region were constrained, in the main, by the absence of gender disaggregated data. Documentation as regards the situation of women and men in relation to agricultural labour, rural income and food security situation in regions were limited. The use of the internet served to bridge the communication gap between countries and institutions. The preliminary draft of the paper was presented and discussed at the FAO/ECLAC/UNIFEM regional workshop on mainstreaming gender analysis in agriculture and trade policies, for Caribbean countries, in November 2003. The second draft of the paper was informed by comments from the workshop and additional information acquired through field visits to Barbados, St. Kitts and St. Vincent in March 2004. The three day visits to each of these three countries entailed a review/appreciation of the resource, constraints and institutional capacities for gender mainstreaming within the agricultural sector at the national level. This included visits to some of the major agricultural projects and interviews with farmers (where feasible) in respect of their perspective of the current situation of the agricultural sector and the viability of their farm enterprises. As well, meetings were held with relevant/available officials within the respective ministries of agriculture to discern the gender consideration as regards agricultural policy and planning at the country level. The internet was invaluable to the task of sourcing supplementary information to satisfy the aim of the paper; in respect of the identification of concrete policy measures and actions to formulate and develop more gender/social-responsive agricultural development policies. The final revision, though thwart with resource and communication constraints, was ultimately completed in compliance with the structure and approach proposed in the terms of references for this FAO/ECLAC assignment.