In Nassau
Peter Christopher
Senior Multimedia Reporter
Africa and the Caribbean should forge a free trade agreement.
This call was made on day one of the AfriCaribbean Trade and Investment Forum at the Grand Hyatt Baha Mar in, Nassau, Bahamas yesterday morning.
Pamela Coke-Hamilton, executive director of the International Trade Centre (ITC) made the call, as she noted both regions had such an agreement in place with the European Union.
She said, "Trade agreements are one way to help bring down barriers and new opportunities. We already have useful precedents that show us what works and what doesn't. And what can be improved, such as the economic partnership agreements both regions have with the EU and why we need to come together to understand what an African Caribbean Treaty Framework would look like."
She said, "I'd like to posit that if a region as small as the Caribbean can negotiate in a reciprocal free trade agreement with Europe, then why should we not be able to do one with Africa?""
She pointed out that both regions had resources which could help with challenges such as supply chain disruptions or food insecurity as well as several other issues created in the wake of the COVID-19 pandemic. Yet, for much of the past decade trade between the regions has not improved but rather seen a downward trend.
"The past decade alone, for instance, shows that the share of African exports that goes to the Caribbean has been decreasing, not increasing. Today, less than 0.1 per cent of African exports go to the Caribbean, and less than 3 per cent of Caribbean exports go to the African continent," said Coke-Hamilton, who also noted much of that trade was concentrated in specific sectors which fell well short of what both regions could achieve.
"If we're willing to tackle these challenges head-on, we need more trade and investment between Africa and the Caribbean. That's what will make economic transformation possible and in a way that benefits both regions by drawing on our shared ties, hopes and potential.
"ITC's newest research with AfriExim Bank, which we will soon publish, shows that trade between Africa and the Caribbean holds enormous potential with US$1.8 billion for goods and services annually by 2028 to be exact," said Coke-Hamilton.
She added that the road ahead of the two regions is long if they are going to actually achieve that potential in practice. Achieving trade of US$1.8 billion means getting rid of trade frictions and getting investments into the right sectors, she said.
"Too often, it's high tariffs and non-tariff barriers that are holding this export potential," the trade expert said.
The forum is being held in the Caribbean for the first time, and Central Bank Governor for the Bahamas John Rolle said it was timely given the Caribbean economic recovery and growth post-pandemic, which still faces major threats due to climate change.
"These meetings also present an opportunity to strategize and coordinate a united voice which expressly address climate change and accessing resources to fund adaptation," he said.
