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JOINT STATEMENT OF THE THIRD MEETING OF THE CARIBBEAN/UNITED STATES JOINT COMMITTEE ON DEVELOPMENT, FINANCE AND ENVIRONMENTAL ISSUES,  22 JULY 1999, WASHINGTON, D.C.

The Third Meeting of the Caribbean/United States Joint Committee on Development, Finance and Environmental Issues was convened in Washington, D.C., on July 22, 1999, under the Co-Chairmanship of the Hon. Hilroy Humphreys, Minister of Commerce, Industry and Business Development, Antigua and Barbuda, and Mr. John R. Hamilton, Principal Deputy Assistant Secretary of State for Western Hemisphere Affairs.

The Meeting was attended by representatives of the Member States of the Caribbean Community (CARICOM) and Regional Organizations. The United States was represented by officials of the U.S. Department of State and other U.S. Government Agencies. (The list of participants is attached as Annex V to this Statement, and the agenda as Annex IV).

The United States Co-Chairman, Mr. Hamilton, provided an overall assessment of U.S. implementation of the Bridgetown Plan of Action and provided the Caribbean delegates with a “linkage paper” summarizing U.S. actions taken with regard to each point on the Action Plan. Mr. Hamilton's presentation concluded that there is positive on-going and continually evolving collaboration in every area of the economic chapter of the Bridgetown Action Plan. (The full text of his statement and the linkage paper is attached as Annex I.) Mr. Schneider gave an overview that focused on AID's Caribbean program, especially the regional programs active in the eastern Caribbean states. His statement is attached as Annex II.

The Caribbean head of delegation, Minister Humphreys, in his overall assessment noted the strengthening of friendship between the United States and the Caribbean. He also stated that, while there was considerable progress in implementing the Bridgetown agreements, there remained some major concerns regarding bananas, telecommunications accounting rates, CBI enhancement legislation, OECS membership in the IDB, the OECD “harmful tax competition” study, human resource development, and disaster assistance. (The full text is attached as Annex III.)

In discussing these assessments, Caribbean delegates expressed a desire for more frequent contacts and meetings of the Joint Committee Subgroups, and the need for more joint planning. The Caribbean also noted its interest in education as a subject of focus in the Joint Committee.

The U.S. agreed to these suggestions and offered to facilitate U.S.-Caribbean contacts by periodically updating the “linkage paper” and including in it the names of and contact information for appropriate U.S. government working level officials on each issue.

The Caribbean voiced its grave concern on the issue of the OECD study on “harmful tax competition” and its serious implication for sovereignty and economic diversification. The Caribbean called for a dialogue on this issue. The U.S. explained the goals and methodology of OECD projects and offered to attempt to facilitate a dialogue between the OECD and CARICOM on this issue.

USAID Mission Director in Jamaica, Amb. Mosina Jordan, briefed the Committee on a new U.S.-Caribbean Regional Strategy for 2000-2005. This strategy was an example of joint planning as it was developed by USAID in consultation with Caribbean governments and regional organizations. The Caribbean welcomed this initiative and noted that the strategy will be considered for approval at the mid-September meeting of The Council for Finance and Planning and, if approved, could be launched at the meeting of Caribbean Foreign Ministers and the U.S. Secretary of State expected to be held this fall.

Three Joint Working Groups met to consider specific issues in more detail. They discussed the following issues:

A. Joint Working Group on Development Assistance/Finance/Investment/Labor

Under the Chairmanship of Ambassador Mosina Jordan, the working group discussed economic issues. Deputy Under Secretary of Labor for International Affairs Andrew Samet noted the important role of labor in the context of economic integration and offered to have the Department of Labor work with CARICOM to secure a job workshop on labor market modernization to advance the prospects for IDB support of labor focused projects in the Caribbean region.

Robert Watts of the State Department Economic Bureau described the U.S. Bilateral Investment Treaty program, informing delegates that a BIT can serve to stimulate private sector investment. Larry Farris of the Department of Commerce described plans for upcoming trade promotion events and urged delegates to contact the Dept. of Commerce with further suggestions for jointly developing business in the Caribbean region. John Becker of USAID described a number of recent and upcoming assistance programs, including plans for the use of the latest technology to analyze and track banana parcels. Caribbean delegates expressed concerns about the burden of adaptation to new technologies always resting with them. They also queried whether some of these requirements might not amount to barriers to accessing markets of developed countries. Chairman Jordan replied that it is a U.S. goal to develop technical skills in the region, so that new programs and policies can be implemented.

Debra Moronese told delegates that OPIC announced a $200 million Investment Facility for Central America and the Caribbean in February. OPIC is exploring some Caribbean projects, she said, but as yet there are no official applications for the Caribbean area. She asked Caribbean delegates to spread the word that OPIC would welcome proposals. The Caribbean sought explanation for the lack of projects in the region and also the choice of one as against several commercial banks to deliver the programs. The OPIC representative explained that the lack of project activity might be due to insufficient information about the facility and that CitiBank was selected because of its wide network of affiliates.

Bruce Juba described the issues involved if the OECS countries should join the IDB. He emphasized that the initiative rests with the Caribbean countries, although the U.S. is willing to participate in an informal working group to discuss the questions of Eastern Caribbean entry.

The Caribbean side explained that there was a decision by the OECS countries to seek membership and by the CARICOM members of the IDB to facilitate the process. The key issue is to have the process activated within the IDB and for the support of the U.S. in ensuring expeditious and positive action by the general membership of the Bank. The U.S. reaffirmed its continued support.

B. Joint Working Group on Environment/Disaster Management

Environment

1. Caribbean Sea as a Special Area in the Context of Sustainable Development

The CARICOM countries explained the reasons for this initiative and indicated the intention of the members of the Association of Caribbean States (ACS) to present it at the five-year review of the SIDS Program of Action. CARICOM countries view this initiative as a means of integrating measures provided for in existing international instruments and incorporating new measures not presently covered into a comprehensive instrument on sustainable development. The U.S. indicated its support for the goals of protecting the Caribbean Sea but expressed its view that existing instruments are adequate to accomplish these goals. The U.S. is receptive to further clarification and dialogue on this issue.

2. Land Based Sources of Marine Pollution

CARICOM representatives recognized the importance of the Land Based Sources (LBS) Protocol to the Cartagena Convention. The U.S. thanked CARICOM for its support to date on the LBS Protocol and expressed a strong interest in reaching agreement on a thorough protocol at the October meeting. CARICOM also highlighted the work of the regional institutes responsible for work in the areas of sewage treatment and disposal, solid waste management, and ship-generated waste control such as the Caribbean Environmental Health Institute (CEHI) and the Organization of Eastern Caribbean States (OECS).

3. Sea Turtles

The U.S. encouraged CARICOM governments to ratify the Inter-American Convention for Protection and Conservation of Sea Turtles and indicated that it was in the process of seeking advice and consent to ratification of the convention from the U.S. Senate. The CARICOM side indicated it would provide a report on progress toward ratification, including the need for national legislation.

4. Coral Reefs

The U.S. expressed its support for increased protection of coral reefs in the Caribbean both under the International Coral Reef Initiative (ICRI) process and the Presidential Coral Reef Task Force. CARICOM raised the issue of varying causes of coral reef damage in the Caribbean and the need for a comprehensive approach toward reaching solutions.

5. Climate Change

The U.S. reiterated the importance of increasing efforts to respond to global climate change under the United Nation Framework Convention on Climate Change (UNFCCC) process. The U.S. encouraged CARICOM to work with the U.S. to further the goals of the convention. CARICOM is responding through inter alia the implementation of the Caribbean Planning for Adaptation to Climate Change (CPACC) project. It agreed to continue its dialogue with the U.S. on this matter.

6. Enforcement Training

The U.S. agreed to explore the possibility of the Environmental Protection Agency (EPA) providing enforcement/compliance training in CARICOM countries. CARICOM agreed to canvass the appropriate authorities on their interest in this training.

7. Fisheries

The U.S. reiterated its support for the International Queen Conch Initiative, the UN Agreement for the Conservation and Mining of Straddling Fish Stock and Highly Migratory Fish Stocks, and for the Agreement to Promote Compliance with Conservation and Management Measures by Fishing Vessels on the High Seas (Compliance Agreement.)

8. Disaster Management

Over the last year, disaster management consultations by the U.S. and CARICOM have led to a coincidence in program goals, strategies and activities, informed by sustained dialogue on both sides. All parties committed themselves to continuing and strengthening cooperation.

9. Humanitarian and Logistic Support

U.S. Southern Command (SOUTHCOM) confirmed its approval (on July 13, 1999) to support arrangements for the transportation of supplies to warehouses in the Caribbean. SOUTHCOM confirmed that airlift capabilities are available and can be accessed via established protocol. The U.S. will continue to support the development and implementation of simulation exercises in the Caribbean, including command post and field exercises, training seminars and conferences. A Review of the 1998 Response Activities identified opportunities for improving the linkages between response and recovery activities and long term disaster reduction.

Both parties noted that the USAID Caribbean Disaster Mitigation Project ends in December 1999, and USAID/OFDA is currently in the process of collaboratively designing with their Caribbean colleagues follow-up strategies and activities. The U.S. will continue its commitment to support the integration of disaster mitigation into rehabilitation and reconstruction projects, and provide training and technical assistance to support and strengthen regional, national and local disaster management capacities. Both sides agreed to continue dialogue on ways to cooperate on chemical emergency and hazardous material management. The efforts of USAID's Caribbean Regional Program (CRP) to integrate environmental and disaster management were strongly endorsed. Both parties also agreed to examine opportunities for integrating poverty and disaster reduction initiatives. The U.S. agreed to provide an inventory of U.S. Government agencies involved in disaster management in the Caribbean.

Both parties noted the OAS resolution on National Disaster Reduction and Response Mechanisms adopted in June 1999 by the OAS General Assembly as well as the Peace Corps offer to extend support for community disaster preparedness activities in the Caribbean, undertaken through its Crisis Corps.

C. Joint Working Group on Telecommunications/Aviation Safety

Telecommunications

The sides reviewed progress in the sector since the September 1998 Antigua meeting and commented on the success of U.S.-funded seminars held since then, in response to the requests from the CARICOM, CTU, and OECS.

Noting the continuing importance of the accounting rate issue and the implications for their economies, the Caribbean side discussed the potential impacts of the downward trend in accounting rates. The Caribbeans indicated that while the Caribbean nations were taking steps to respond to these developments, the U.S. side should consider discussing cost methodologies for international call completion in the context of broader economic development in the Region. The U.S. agreed to examine this proposal and to give early feedback.

The Caribbean identified five challenges facing the telecommunications sector: policy; legal and regulatory reform; development of competitive systems in a progressively liberalized regime; international settlement rates; human resource development; and developments in Caribbean jurisprudence. The U.S. side concurred in the importance of these issues. The sides agreed to use these challenges as the basis for follow-up.

Specifically, the sides agreed to further cooperation in the areas of human resource development, as well on issues such as: electronic commerce; telemedicine; distance learning; dispute resolution; development of strategic alliances between actors (e.g., private sector, public sector, consumer groups and labor) in emerging competitive telecommunications markets; implementation of the ITU's GMPCS Memorandum of Understanding; and participation in the FTAA process and CITEL. The sides also agreed to reinforce cooperation with regional agencies and institutions, including the Caribbean Telecommunication Union (CTU) and the Organization of Eastern Caribbean States (OECS).

To facilitate follow-up on the above mentioned issues, the sides agree to hold a series of teleconferences between technical experts to address these issues of mutual interest. The teleconferences will be held at two-month intervals, with the first teleconference scheduled for August 24, 1999. The Department of State (EB/CIP) and the CARICOM Secretariat will serve as points of contact for the teleconferences.

Aviation

The sides reviewed progress in the sector since the September 1998 Antigua meeting and expressed interest in continued cooperation and partnership. They also reviewed issues of mutual interest.

The U.S. provided three papers it presented at the ICAO Fifteenth Meeting of the Directors of Civil Aviation of the Eastern Caribbean Region held in Grenada June 7-11, 1999. These papers are: Contingency Planning; Global Positioning System (GPS) Modernization: Safety of Life Navigation Signal; Radio frequencies Spectrum Management for Civil Aviation: Global Navigation Satellite System (GNSS) Frequency Spectrum Protection.

The U.S. and CARICOM agreed that the air navigation spectrum should not be shared with mobile satellite providers and support the ICAO position on this issue for the World Radio Communication (WRC) meeting in May 2000.

CARICOM is working on a work plan and terms of reference in the Caribbean Aviation Search and Rescue Group.

Some CARICOM members have signed a MOU to cooperate on safety oversight procedures in the Region. The CARICOM Secretariat is in the process of developing a project profile which will guide the process of coordination of safety oversight in the Region. The U.S. fully supports these CARICOM efforts.

Jamaica is revising its Civil Aviation Act which may serve as a model for other CARICOM states. The possibility of harmonizing the Region's regulations is also being pursued.

As a result of efforts to address the Y2K impact on aviation, both the U.S. and CARICOM agreed on the importance of developing and testing national, regional, and hemispheric contingency plans. Jamaica provided its Y2K Readiness brochure (compiled by the Airports Authority of Jamaica) as an example of its contingency planning and testing.

CARICOM reiterated its readiness to jointly pursue Open Skies negotiations and expressed the hope that the first meeting can be convened in September 1999.

The U.S. urged CARICOM to participate in the October 5 – 15, 1999, ICAO Regional Air Navigation meeting in Buenos Aires to update the air navigation plan which is updated every ten years. The U.S. urged CARICOM to encourage ICAO to continue to reform the regional air navigation planning process.

Both the U.S. and CARICOM welcomed the consensus reached in ICAO to modernize the Warsaw Convention. They encourage ICAO member States to ratify the new Convention.

Dr. Jerry Bell of NOAA presented forecasts for storm activity in the Caribbean concluding that 1999 is very likely to be a year of high storm activity. Eileen Simoes described the intensified activities of the Office of Foreign Disaster Assistance (OFDA) to prepare for and respond to anticipated disasters in the Caribbean.

Caribbean delegates expressed their appreciation for U.S. assistance in the disaster area. Co-Chairman Humphreys expressed satisfaction with the Committee's work, and noted the need to continue discussions particularly on the issues of the OECD tax report, telecommunications and Open Skies. Co-Chairman Hamilton emphasized that the U.S. understood the concerns of the Caribbean on these issues and would work to further and deepen the U.S.-Caribbean dialogue.

The Caribbean side expressed their appreciation for the working relationship with Mr. Hamilton and congratulated him on his new appointment. They indicated that they look forward to working with his successor Mr. William Brownfield.

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