Opening Statement of the CARICOM Ministerial

Spokesperson at the 7th WTO Ministerial Conference at

CARICOM Press Conference
Geneva, December 2, 2009
CARICOM views this 7th WTO Ministerial Conference as an
opportunity to reaffirm our collective commitment to a trading
system that brings real benefits to all WTO Members through a
genuinely inclusive, transparent and multilateral process.
Our sense of the meeting is that the centrality of development as
the core objective of the Doha Agenda has been re-affirmed. We
sense a determination to re-energise the negotiations and hope
that this is translated into real engagement in the coming weeks
and months in order to achieve the collected wish to conclude in
2010.
We further sense that the global economic crisis has reinforced the
need for a rules-based multilateral trading system that generates
benefits for all Members, but more so countries such as ours that
are small and vulnerable.
For us in the Caribbean, a pro-development outcome of the DDA
must address our fundamental interests and that entails
rebalancing of the multilateral trading system in a manner that
promotes the sustainable development of developing countries.
From our perspective, that means securing a number of elements
that address the fundamental constraints faced by Small
Vulnerable Economies such as ours. This includes appropriate
flexibilities in Agriculture and Non-Agricultural Market Access
(NAMA), Fisheries Subsidies and Trade Facilitation.
Of particular interest is the Special Safeguard Mechanism that
must be simple, operational, effective and non-burdensome and
offer enhanced flexibilities for SVEs. The adoption of such an SSM
remains pivotal to the cardinal pursuits of food security, promotion
of rural development and poverty alleviation.
Of particular importance to CARICOM is that the WTO should be
entrusted with the role of mobilizing additional Aid For Trade
resources and monitoring its impact. It has been established that
Small Vulnerable Economies can take advantage of trade openings
only when these are complemented by a sustained programme of
trade capacity building measures.
The fast–tracking of AfT support programmes in CARICOM States
assumes even greater importance in light of the loss of long-
standing preferences on major agricultural commodities. One of
the major issues in the Caribbean is the fact that we have not
received a fair share of AfT resources because of the perception
that poverty is not a major concern.
One of the issues that has exercised us, particularly at this
Ministerial Conference is the emerging package on treatment of
products benefitting from long-standing preferences. All of this is
transpiring as a result of the EC’s determination to conclude the
protracted WTO dispute on EU MFN tariffs on bananas before the
end of this year.
The fact remains that the resolution of this long-standing trade
dispute will result in the decline of a major CARICOM export.
However, we are ready to agree to the conclusion of this dispute
provided the following elements are satisfactorily addressed.
First, the outcome on bananas cannot be divorced from the
treatment of other preference erosion products. There is a
package, carefully crafted among ACP, EC and MFN suppliers that
addresses the treatment of 62 agricultural products. CARICOM
considers this to be a final package and will therefore not accept
any attempts to alter its provisions, in particular with respect to
major CARICOM export products, such as rum and sugar.

Second, CARICOM demands that the EC-funded Banana

Accompanying Measures (BAM) should be at an appropriate level
for the budget period 2010-2013. The CARICOM demand for
financial compensation is also based on Para. 150 of the draft
Agriculture modalities that calls for preference granting countries
to provide adjustment measures to mitigate preference erosion in
affected developing countries.

We welcome the EC acceptance of a review clause of the

effectiveness of the BAM in addressing its objectives of enhanced
competitiveness and supporting diversification. CARICOM views
this review clause as an opportunity to secure additional funding
beyond the current EC budget cycle. However, CARICOM insists
that the review should be conducted by both the EC and ACP
banana exporting countries.

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The way in which this banana dispute has been handled typifies
one of the systemic concerns on the functioning of the multilateral
trading system. For while we are prepared to accept this package
on agricultural preferences, we remain concern that the
implementation of the Banana Agreement will result in the decline
of a major Caribbean export industry. We therefore remain
convinced that the multilateral trading system must offer
additional trading opportunities for these small, vulnerable,
preference-dependent Members.
In addition, affected CARICOM States deeply regret that they have
been unable to fully participate in the negotiations on an issue of
vital economic importance. Our experience with bananas
demonstrates the critical need for the current round of WTO
negotiations to result in a balanced, fair and development-
supportive outcome, particularly for countries such as ours.