President Bush makes committment to work towards renewal of CBI

President of the United States George W Bush has made a commitment that existing trade arrangements between the United States and the Caribbean will not only be renewed but updated and strengthened.{{more}}

The President made his position clear on Wednesday during a historic two-hour meeting with the Heads of State and Government of the Caribbean Community (Caricom) at the United States State Department in Washington.

Prime Minister Owen Arthur, who is Caricom’s lead prime minister on the Caricom Single Market and Economy (CSME) said that the trade arrangements between the United States and Caricom are “presently in a situation of limbo”, and that a “pragmatic, specific decision had to be made immediately”.

The Prime Minister was speaking specifically of the Caribbean Basin Recovery Act (CBRA) which prior to being amended in 1990 was the Caribbean Basin Initiative (CBI). This trade agreement gave certain Caricom products duty free access to the United States. In 2000, another agreement, the Caribbean Basin Trade Promotion Act (CBTPA) came into effect. According to Arthur, this latter agreement gives greater benefits, but not to all Caribbean countries.

The CSME lead prime minister said that the CBI had expired since 2005, and an application by the United States to the World Trade Organization (WTO) to renew the CBI has been blocked by Paraguay, and to date there has been no resolution on the matter.

Prime Minister Arthur said that President Bush gave his commitment to work with Congress towards the renewal of the CBI and also to address the existing deficiencies in CBTPA, so that a “more mature, broader and mutually beneficial relationship” is put in place between the US and the Caribbean.

Leading up to Wednesday’s meeting with Bush, a delegation including Prime Minister of St. Kitts Nevis Dr. Denzil Douglas, Prime Minister Arthur, Sir Louis Straker, Minister of Trade of St. Vincent and the Grenadines and La Celia Prince, Minister Counselor in the Embassy of St. Vincent & the Grenadines in Washington met with the powerful Ways and Means Committee at Capitol Hill.

Dr. Douglas, who co-chaired that meeting along with Chairman of the Ways and Means Committee, Congressman Charles Rangel, said it was necessary for United States congressional leaders to hear first hand from Caricom leaders what they are doing in the Caribbean. The Ways and Means Committee deals with matters of Taxation and Trade.

Arthur said that the Caricom delegation specifically discussed with Rangel whether they could depend on the US Congress to renew these agreements if the renewal does not happen before President Bush’s “Fast track trade authority” runs out at the end of this month. Congress will then have the authority to approve trade matters.

Arthur also disclosed that the nature of future trade agreements was discussed with Congressman Rangel. He said that present trade pacts with the US have to be renewed every three years and are limited to trade in goods.

He said that this has implications for potential investors who cannot plan beyond the short term. He said that at present, the US has trade agreements with other countries in the region which are not time bound and include concessions relating to services and investments. The Caricom delegation sought to get a perspective from the congressman as to whether these “critical issues” could be incorporated in the United States trade policies that are currently being implemented.

Congressman Rangel has been invited to attend the Caricom Heads of Government meeting to be held at during the first week of July. (CK)