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Communication
to Parliament
by The Hon. Fred Mitchell
Minister Responsible for Foreign Trade
19th
April 2006
I wish to inform the
House of matters in connection with foreign trade and foreign affairs.
From 4th
April to 7thApril I attended a seminar by the European Union
to outline the procedures for access to funding by the European Union as
The Bahamas’ Minister for Foreign Trade. The EU currently offers
approximately 9 million euros in development assistance to The Bahamas.
The procedures for accessing the funds are quite detailed and complex.
There are a number of projects in the Family
Islands
that are to be funded from this EU Development funding including public
works in Acklins
Island
and in Ragged
Island.
Last week on
Wednesday 12th April, I attended as The Bahamas’ Minister for
Foreign Trade, a meeting of Ministers of Foreign Trade of Caricom with
the United States Trade Representative Rob Portman. This followed on
from the recent meeting with the U.S. Secretary of State Condoleezza
Rice in Nassau in March of this year.
The Ministers were
briefed on matters relating to the Caribbean Basin Initiative (CBI)
and in particular the fate of the Caribbean Basin Economic Recovery Act
(CBERA) in the United States.
This act provides duty free access for certain goods coming into the
United States from the Caribbean
region. The United States has sought a waiver under the World Trade
Organization (WTO) rules to allow for the continuation of the
preferences in favour of Caribbean goods. The Bahamas is able to access
U.S. markets by this legislation with some 92 million dollars of exports
to the United States in 2004 according to U.S. figures. The exports are
mainly fish.
By any measure
this is a significant for The Bahamas. The fishing industry is said to
employ some 20,000 Bahamians.
Objections to the
waiver at the WTO were filed by a number of countries most notably
China. We have been advised that
China
has subsequently withdrawn their objections but that
Paraguay is concerned about the waiver
request. Representations will be made to Paraguay in this regard.
The Government
believes that the waiver is important. The last waiver expired at the
end of 2005 and at the moment the legislation is in non-compliance with
the WTO rules. This has not affected the ability to export to the U.S.
for the time being but is a matter that cannot be allowed to stand
without being addressed. Ultimately, an objection will arise if the
matter is not settled that may lead to the early end of the
preferences.
The U.S.
Government has assured us that they are working to achieve the waiver.
The Bahamas as you
know is not a member of the World Trade Organization (WTO). We now have
observer status. Most trade matters are decided on an ad hoc basis.
This policy will continue.
Ultimately, the
country has to decide how and to what extent The Bahamas would wish to
integrate its economy into the world economy. The waiver if granted
will only allow the preferences to continue until September 2008. The
question is what will replace that regime. We will have to continue our
discussions with our Caricom partners and the United States on the way
forward.
The meeting also
noted the decision taken in concert with the U.S. Secretary of State
Rice to convene in Washington in June 2007 a conference on the future of
the Caribbean. This conference
will bring together academics, government leaders, non-governmental
leaders and civil society, with the Diaspora in
Washington for a conference over a
number of days to discuss the development goals for Caricom countries.
I shall inform the House as these matters develop.
Next week in
Grenada, The Bahamas will relinquish the chair of the Council for
Foreign and Community Relations of Caricom known as COFCOR. It has been
an interesting year for me beginning with the hosting of the annual
meeting in Freeport last May, and followed most significantly by the
meetings with the U.S. Secretary of State that have put Caricom firmly
on a path to structured dialogue with the United States of America, the
major trading partner of all Caricom states.
Following the
meeting of Foreign Ministers in Grenada there will be the Caricom/UK
forum in Barbados.
The Caricom Prime
Ministers will meet with the Prime Minister of Spain on 10th
May in Madrid.
The Heads of
Government of Caricom will also attend the European Union, Latin
American and the Caribbean Summit in Vienna,
Austria
beginning on 12th May.
Thank you Mr.
Speaker.
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