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V. Atkins - Trade Agreement 101:  Agricultural Trade
 

V. Atkins - Trade Agreement 101: Agricultural Trade

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    V. Atkins - Trade Agreement 101:  Agricultural Trade V. Atkins - Trade Agreement 101: Agricultural Trade Presentation Transcript

    • TRADE AGREEMENTS 101 www.crnm.org Vincent Atkins
    • 2 Implications of Trade Agreements for Agriculture Implications of Trade Agreements for Agriculture
    • Agriculture Trade in CARICOM g 3 Implications of Trade Agreements for Agriculture
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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