CARICOM Secretariat, Turkeyen, Greater Georgetown, Guyana) The Caribbean Community (CARICOM) and the United States signed a Trade and Investment Framework Agreement (TIFA) today in Port-of-Spain, Trinidad and Tobago. CARICOM Chairman, His Excellency Michel Martelly, the President of Haiti and Mr Joseph Biden the Vice President of the United States signed on behalf of the two sides.
The signing ceremony took place following a meeting between CARICOM Heads of Government and the US Vice President at the Diplomatic Centre in Port of Spain.
The Agreement is expected to drive strengthened trade and investment ties between CARICOM and the United States as it would serve as a mechanism for the two sides to develop practical strategies on a wide range of trade, investment and economic cooperation issues. This is seen as essential to spurring economic development and diversification of the Region, and to contributing to improvement in the well-being of our citizens. The implementation of the Agreement will be executed under the mechanism of the CARICOM-US Trade and Investment Council which will be led by a nominee of the CARICOM Chair and the Office of the United States Trade Representative (USTR).
The TIFA, which is the result of a revision of an Agreement signed in 1991, takes account of the multilateral trading environment created by the WTO, as well as changes in the regional environment brought on by the implementation of the CARICOM Single Market and Economy (CSME).
An Initial Action Agenda, which is annexed to the Agreement, sets out areas for attention which include matters relating to the WTO; bilateral trade and investment arrangements; cooperation in regional and multilateral areas; support for regional integration; cooperation to promote and respect fundamental labor rights, social protection, and workforce development; and the facilitation of trade and investment opportunities. In addition, the Agreement establishes the framework for the discussion of issues to address the digital divide through the promotion of innovation and the dissemination of technology for increasing competitiveness, job creation, economic development and trade, as well as for discussing US trade and investment-related legislation which have extra-territorial impact. Specific examples of legislation in this regard are the Foreign Account Tax Compliance Act (FATCA), and the New US Food Safety Modernization Act (FSMA).
There are also other issues of critical importance to CARICOM, particularly with respect to export development, which through engagement with Representatives and Officials of the United States Administration and the Congress, mutually acceptable outcomes would be achieved. Among the issues of critical and urgent importance to CARICOM are the threat faced by CARICOM exports of rum in the US market and the US/Antigua and Barbuda cross-border gambling services dispute. In addition the Agreement will allow for monitoring of developments in the context of the United States President’s 2013 Trade Policy Agenda.
Signing of the revised TIFA also signalled the formal launch of the revitalized Trade and Investment Council (TIC) which would be essential for CARICOM and the US to engage in the areas mentioned. A first meeting of the United States-CARICOM Trade and Investment Council under the revised TIFA is envisioned before the end of 2013.
