Last updated on April 21, 2014 at 4:58 EDT

New Impetus Needed to Complete a Canada-Caribbean Trade Deal: C.D. Howe Institute

January 10, 2013

TORONTO, Jan. 10, 2013 /CNW/ – Canada should step up efforts to wrap up
a trade deal this year with the Caribbean Community (CARICOM),
according to a report released by the C.D. Howe Institute. In “A
Canada-CARICOM “Trade-not-Aid” Strategy: Important and Achievable,”
author Phil Rourke says a Canada-CARICOM trade deal could serve as a
model for agreements with other low- and middle-income countries.

“Canada’s aggressive trade negotiation strategy needs to close some
deals and divert resources to others, such as in Asia, if it is to be
successful.  While the Canada-CARICOM negotiations have made little
progress to date, a more development-friendly model with a narrower
agenda could wrap up the deal relatively quickly,” says Rourke.

“Canada is used to negotiating trade deals with developed countries and
its model for negotiations reflects that.  But the future trade agenda
is mainly in the developing world, where Canada has less experience.  
Because a trade deal with CARICOM could serve as a model for future
trade pacts with other countries, these negotiations should make the
cut on Canada’s priority list.”

Trade negotiations with CARICOM have progressed unevenly since their
launch in 2007, he notes, partly due to severe stresses in the region
in the wake of the global recession of 2008/2009. To spur the talks to
a successful conclusion, Rourke recommends finding agreements on a few
key practical issues first, on which the more general framework for
open trade can be built.

Rourke proposes that Canada work with CARICOM to address the ability of
firms in the Caribbean to benefit from more open trade with Canada.
This would include launching a process to address regulatory barriers
to trade in rum, and re-focusing Canada’s current assistance to the
region on Caribbean trade-related development priorities as part of a
bilateral deal. With much of the potential for bilateral trade growth
concentrated in services, Canada could also accept the Caribbean’s more
limited “positive list” approach to services liberalization, he says,
while engaging with the region on broader long-term services
liberalization efforts. Cultural trade – important to the Caribbean but
a sensitive issue for Canada – could be promoted through cultural
exchanges and co-productions, says Rourke.

A deal could enhance the region’s economic stability and innovative
capacity by securing wider protection for investment and intellectual
property, adds Rourke, and address practical impediments to two-way
mobility of skilled labor, a topic which will gain in importance in
future trade negotiations generally.

For the report go to: http://www.cdhowe.org/a-canada-caricom-trade-not-aid-strategy-important-and-achievable/20043

SOURCE C.D. Howe Institute

Source: PR Newswire