“Jamaica Trade Desk News” Theme: Streamlining Technical Barriers to Trade Contact us at (868) 675-8862 Ext. 239 M O N T H L Y
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Are regional standards a key solution to address TBTs? The WTO Agreement on Technical Barriers to Trade (TBT) recognizes that market access and export competitiveness can be hardly impeded by the use of technical regulations and standards that can differ from one country to another one, and if set arbitrarily, can be used or perceived as disguised forms of market protection, generally called non-tariff barriers to trade (NBT).
HIGHLIGHT ON STANDARDIZATION & RESEARCH: Regional standards: a key solution to address TBT’s... INSIDE THIS ISSUE:
Defining obstacles to trade: NTMs hit T&T good and agri-export...
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NTMs prevent Jamaican SMEs from success!
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Eliminating external burdensome NTMs...
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Steps in establishing a 5 business in T&T!
Regional Events: Caribbean Investment 6 Forum (CIF) Trade & Investment Convention (TIC)
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Useful links
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Contact the JA-T&T Trade Desk NOW!
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To stay away from this situation, Caribbean countries should really think of using international standards as one way of describing how to implement effectively technical regulations, a process supported by the non-governmental International Organization for Standardization (ISO). While ISO standards are not mandatory, as they are developed as voluntary documents, they take into consideration international consensus from a wide range of stakeholders comprising of expert’s input and review. They are very aware of the need for standards, as well as the results of implementing them, and therefore ISO standards are usually accepted by public and private sectors worldwide. There is no doubt that lack of capacity to implement WTO agreements, particularly those on TBT and Sanitary and Phytosanitary (SPS) measures can constitute a major hindrance to trade, and here, we are reminded of the recurrent issue that local and regional manufacturers have been voicing for years with regard to the inefficiency of the Chemistry, Food and Drugs Division’s operations in Trinidad & Tobago. It is necessary to emphasize that the WTO is an international organization that effectively lays down legal ground rules for international trade, and in this regard, there is an
urgent need to address the issue of standards and technical regulations to allow countries to participate effectively in the trading system. In the case of the WTO SPS agreement, international standards are defined as those developed by the CODEX Alimentarius Commission, the International Plant Protection Convention and the World Organization for Animal Health. There are no such definitions of international standards and no organizations have been named as developers of international standards under the agreement. There are just ongoing discussions within the WTO TBT Committee about the need to provide greater clarity around the definition of international standards so that countries, can decide where to direct insufficient financial and technical resources to actively participate in the work of international standardization bodies. The TBT and SPS cases demonstrate that WTO agreements can have a significant influence on standardization, both at the national and international level. The WTO has published a Code of Good Practice for the Preparation, Adoption and Application of Standards. Ensuring compliance with the code should be a major part of the operations of all national standards body (NSB). There are six principles covering transparency, openness, impartiality and consensus, effectiveness and relevance, coherence, and addressing the concerns of developing countries. These principles should be observed by all our NSBs/international standardizing bodies. As ISO standards are developed on the basis of consensus, their use to help explain and amplify countries' technical regulations can be expected to ease the potential to introduce TBTs, thus facilitating international trade. It is then important to question the position of T&T in the scope of the WTO Agreement, and on a wider scale the CROSQ (CARICOM Regional Organisation for Standards and Quality)’s mandate to support understanding of role of international standards among all CARICOM Members States...
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NTMs hit T&T food and agri-exports... Among the topics discussed by experts at the workshop were how to reduce delays in the inspection processes of government agencies and how to negotiate more favourable agreements at the bilateral, regional and international levels. It was agreed that the results of the survey will be used as an input into the national export strategy of the country which is currently being prepared by the Ministry of Trade, Industry and Investment, as well as the national aid-for-trade strategy. Greater transparency The International Trade Centre (ITC) reveals that most Non-Tariff Measures (NTM) applied to exporters found in neighbouring Caribbean countries. In fact, companies in Trinidad and Tobago who export food and agri-based products, such as milk, fruit juices and spices, are seriously affected by non-tariff measures (NTMs), with 40% reporting difficulties, according to a survey realised by the International Trade Centre (ITC). Around 30% of exporters of wood, wood and paper products said they face barriers to trade from NTMs, while 24% of businesses involved in the export of chemicals said they are similarly affected. The findings of the study and how to address NTMs and other technical barriers to trade were discussed at a consultative workshop in T&T on 1st March, 2013 at the Hilton Hotel, in Port-of-Spain. The workshop was organized by ITC in collaboration with Trinidad and Tobago’s Ministry of Trade, Industry and Investment (MTII), and brought together some 60 participants from both the public and private sectors, including manufacturers, exporters and importers. Caribbean obstacles The survey of 500 businesses showed that the most burdensome NTMs are applied by partner countries, with 240 cases highlighted, while 67 were imposed by Trinidad and Tobago. Half of the companies who took part in the survey said that most obstacles are within the Caribbean Community (CARICOM), particularly in Barbados and Jamaica. NTMs, which include import quotas, special licences, export restrictions, export subsidies, technical barriers to trade, sanitary and phytosanitary measures, and rules of origin, have become a principal impediment to international trade. In fact, they can prove to be a major obstacle to local, regional and global trade in both goods and services as companies struggle to comply with an increasingly complex web of policies and at times opaque technical standards.
Sandra Indar, Permanent Secretary at the Ministry of Trade, said: “The identification of the obstacles to trade will allow us to achieve greater transparency about business practices, regulations and requirements and could reduce the domestic barriers to trade, thus promoting the ease of doing business in the country.” Poonam Mohun, ITC’s NTM Programme Manager, said: “The results of the survey will undoubtedly help Trinidad and Tobago to better negotiate with partners for the reduction/elimination of non-tariff barriers, especially as the country moves forward with current trade negotiations in neighbouring countries, such as those in the Latin American region.” ITC is actively working with the private sector in 27 countries, including Trinidad and Tobago, to identify barriers to trade and provide advice to governments on how to overcome and reduce them. Understanding enterprises’ key concerns with NTMs can assist governments to better define national strategies and policies and allow them to take concrete steps to alleviate the problems, for example by building national capacity in complying with technical regulations. A similar study was presented in Jamaica on March 6th, 2013, and the Trade Desk Officer, Mrs. Naika Pichi-Ayers was also in attendance to get in depth analysis of survey results by local and international specialist, to see how best she could assist Jamaican exporters on the T&T market. You are invited to continue reading this issue to gather more information... If you may have any queries with regard to the subject at caption, kindly contact Ms. Poonam Mohun– ITC’s NTM Programme Manager at: Tel. +41-22-730.0277/ Email: mohun@intracen.org
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Non-Tariffs Measures prevent Jamaican SMEs from success! ITC Executive Director Patricia Francis said: ‘A country needs to take a holistic look at all policies and measures that have an impact on business’s ability to invest and enhance competitiveness. This approach is made possible by obtaining greater transparency on NTMs which in turn allows for related domestic reform of institutions and policies.’ Food-safety certification
Minister of Foreign Affairs & Foreign Trade, Senator A.J. Nicholson (at podium), addresses the opening of the consultative workshop on NTMs affecting Jamaica at The Knutsford Court hotel in New Kingston on March 6. Executive Director of the ITC, Patricia Francis, is at right. - JIS photo (Gleaner).
Newly established small- and medium-sized enterprises in Jamaica are more affected by non-tariff measures (NTMs) than larger firms, according to a study carried out by the International Trade Centre (ITC) which found that a lack of information and adequate resources, among others, make it harder for SMEs to overcome obstacles to trade. The study found that, of the more than 600 businesses surveyed, approximately 35% faced burdensome NTMs. Forty-one per cent of exporting companies identified NTMs as a major deterrent to the success of their businesses, while the high incidence of burdensome NTMs experienced by the manufacturing, processed food and agro-based industries was highlighted as a cause for concern. Kingston workshop The findings of the study and how to address NTMs and other barriers to trade were discussed at a workshop in Jamaica’s capital Kingston on 6 March, 2013. The workshop was organized by ITC in collaboration with Jamaica’s Ministry of Foreign Affairs and Foreign Trade, and brought together more than 100 participants from both public and private sectors agencies, including exporters and importers. NTMs, which include quotas, special licences, export restrictions, technical barriers to trade, sanitary and phytosanitary measures, and rules of origin, have become the principal impediment to international trade and can prove to be a major obstacle to local, regional and global trade in both goods and services as companies struggle to comply with an increasingly complex web of policies and at times opaque technical standards.
Experts at the workshop discussed the need for Jamaica’s Government to set up a service for both exporters and importers to register complaints on NTMs experienced in domestic agencies, enabling agencies to address the most common problems. It was proposed that the government and exporters should take necessary steps to obtain Hazard Analysis and Critical Control Point (HACCP) certification, to comply with new regulations of the US Food Safety Modernization Act, and that they should work together to try to reduce the cost of the process. Senator A.J. Nicholson, Jamaica’s Minister of Foreign Affairs and Foreign Trade, said: ‘Of particular concern, recently, has been the issue of private standards. These standards and procedures, exceeding international requirements, are developed internally by multinational companies, such as supermarkets, and enforced throughout their supply chains. Such policies impact on the ability of Jamaican suppliers to make inroads into the global value chain, as they place undue burdens on exporters in supplying both final and intermediate products to private and commercial consumers internationally.’ The study will be revised and recommendations from the public-private sector representatives will be included, to contribute to improve effective development cooperation, business competitiveness and local economic growth. Further information on this survey can be given by Ms. Poonam Mohun– ITC’s NTM Programme Manager at: Tel. +41-22-730.0277/Email: mohun@intracen.org
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Eliminating external burdensome NTMs...
A manufacturer can encounter any of the following five scenarios in the destination market when exporting his products:
The TTMA has crafted recommendations for the elimination of the barriers experienced in foreign markets, and have forwarded these to the appropriate bodies at all feasible occasions. Two recommendations for elimination of the burdensome NTMs in the export market are identified below: Placement of trade attaches in export markets – NTMs, whether or not they are burdensome, may be unknown by the manufacturer before exporting. Even if the manufacturer is aware of the measure, the manufacturer may not have an understanding of the implications of the NTMs. The role of any trade attaché would be information gathering. The desired information will include the process for importing products, the charges associated with imports, and contact information for key individuals in the export market. While desk research is currently utilised by manufacturers (and the TTMA) in understanding the destination market, there are some pieces of information which cannot be sourced by secondary research. Thus, primary research will be more beneficial to manufacturers.
Elimination of burdensome NTMs in preferential arrangements – as a party to various regional trade agreements and preferential trade agreements, Trinidad and Tobago could have negotiated the removal of some NTMs. An example is the application of Law 173 on imports. A comparison of the treatment of Law 173 under the Dominican Republic-Central America Free Each of the aforementioned may seem different from Trade Agreement (CAFTA-DR) and the CARCIOMeach other, but they all constitute non-tariff measures Dominican Republic Free Trade Act (CARICOM-DR (NTMs) which are encountered by the manufacturing FTA) treaties is provided below: populace whenever it conducts its trade. The private sector is fully cognisant, and it accepts the fact, that sover- - CAFTA-DR: Annex 11.13 Section B states: eign states are entitled to implement non-tariff measures “The Dominican Republic shall not apply Law No. 173 for any and every reason possible. However, the burden- to any covered contract signed after the date of entry some non-tariff measures (as opposed to the non-tariff into force of this Agreement unless the contract explicmeasures) have caused grievances for manufacturers in itly provides for the application of Law No. 173.” the past, as trade has been inhibited due to these measures (hence the use of the term non-tariff barriers in describing - CARICOM-DR: Article IV states: “Whenever a CARICOM entrepreneur engages in any these measures). of the activities provided for in that paragraph, whether These grievances have not fallen on deaf ears. The directly or through a Dominican Republic national actTTMA has liaised with, and continues to liaise with, the ing as representative or agent, Law 173 will not apply various border control agencies so that there can be an when the parties expressly agree that it will not.” ease in doing business. Additionally, in March 2013 the ITC presented its findings of a study conducted on NTMs Thus, US importers, by default, are not subject to the that the private sector of Trinidad and Tobago faced when application of the law. conducting trade. (1) (2) (3) (4) (4)
Labelling requirements; Quality and packaging regulations¹; Processing methods²; Distributorship Legislation ³; Product registration requirements.
This session was attended by the private sector, as well as the various ministries and state agencies (i.e. Chemistry, Food and Drugs Division; Customs and Excise Division; Ministry of Trade, Industry and Investment; Trinidad and Tobago Bureau of Standards) that interact with the manufacturers. These findings reflected the sentiments of the private sector, and reemphasised the concerns raised by the TTMA.
¹Example: Safe Foods for Canadians Act ²Example: US Food and Safety Modernisation Act ³Example: Law 173 of April 6, 1966 in Dominican Republic
Contribution from Mr. Christian George– TTMA Research Officer (Trade Unit). If you wish to get more information on this matter, kindly contact Mr. George at: (868) 675-8862 Ext. 225/Email: trade@ttma.com
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Do you wish to start a business in T&T?
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Caribbean Investment Forum... Register now!!!!
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The countdown is on for TIC 2013... Register NOW!
Helpful websites for you.... Tobago House of Assembly (THA): https://www.tha.gov.tt Tourism Development Company Limited (TDC): http://www.tdc.co.tt Trinidad & Tobago Electricity Commission (T&TEC): http://www.ttec.co.tt Water & Sewerage Authority of Trinidad & Tobago: http://www.wasa.gov.tt Trinidad and Tobago Free Zones Company Limited: http://www.ttfzco.com National Energy Corporation of Trinidad and Tobago: https://www.nec.co.tt Government Human Resource Services Company Limited: https://www.ghrs.gov.tt Trinidad and Tobago Coalition of Services Industries (TTCSI): http://www.ttcsi.org Trinidad & Tobago Entertainment Company: http://www.ttentonline.com
Is anyone interested in exporting to the twin-island? We are here to serve you! Our services:
Informing Jamaican businesses (among others) about import regulations & entry requirements into T&T, as well as representing their interests; Facilitating networking and business match-making with T&T companies to improve trade; Addressing major areas of concern/issues to the relevant trade institutions & regulatory agencies in T&T and Jamaica (intermediating with such arms as customs, the standards authorities, and helping with negotiating the bureaucracy) and offering support solutions; Assisting in organization of trade missions to T&T (planning, ground support and follow up); Undertaking consultations with prospective exporters, business support organizations, and representatives of the public sector institutions that play key roles in the export process in T&T and Jamaica. Do you wish to contact the Trade Desk Officer- Mrs. Naika Pichi-Ayers? Tel: (868) 675-8862 Ext. 239 / Fax: (868) 675-9000 Email: tradeassist@ttma.com/ Webpage: http://www.ttma.com/jamaicatt_trade_desk