Elizabeth Morgan | CARICOM-Canada relations: Making increased trade and investment a reality

The Caribbean Community (CARICOM) Council for Trade and Economic Development (COTED) will be having its ministerial meeting on April 28-29. This week, however, I will deal with a subject which I do not believe is on COTED’s agenda, but should be. This is CARICOM’s relationship with Canada which, as I have said before, does not get much media coverage.

I learnt from a Facebook post that the Canadian Minister of International Trade, Export Promotion, Small Business and Economic Development, Mary Ng, visited Jamaica and participated in a panel discussion at the UWI Regional Office at Mona on April 14. There was actually an article in The Gleaner titled ‘More Than Handouts’.

From my research, I found that there was a notification out of Ottawa, Canada, from early March that Minister Ng would be leading a trade mission in April to the Caribbean. She was to visit Barbados, Guyana, Jamaica, and Trinidad and Tobago and would meet with government and private-sector representatives. This mission would be in keeping with Canada’s stated foreign trade policy position to diversify its exports and markets.

Prior to COVID-19 and resulting from its difficulties with its main trading partner, the USA, Canadian Prime Minister Justin Trudeau had announced his plan to diversify and increase exports by 50 per cent by 2025. Canada’s aim is thus to strengthen its economy, create more jobs, and explore sustainable business opportunities for its private sector. Thus, Canada’s reason for visiting the region was quite clear.

Minister Mary Ng actually visited Guyana and Jamaica from April 11-15, with the objective of strengthening Canada’s trade relations with the Caribbean and opening doors for Canadian businesses and exporters. The minister led a virtual trade mission of over 150 businesses to assist their access in the region.

Canada’s High Commissioner to Guyana had been actively promoting closer collaboration between both countries. Canada is already involved with Guyana in its petroleum sector, a Guyana-Canada Chamber of Commerce is established, and an air transport agreement is being negotiated.

During Minister Ng’s stop in Guyana, a memorandum of understanding (MoU) to facilitate further cooperation and enable the procurement of Canadian goods and services was signed. Guyana’s Minister of Finance, Ashni Singh, said that a framework was being established to strengthen their economic and commercial relations to increase business between Guyana and Canada in both directions. So, Guyana is a Canadian priority.

The sole report seen on Minister Ng’s visit to Jamaica was about the panel discussion at UWI, where she posed an interesting question – “How do you think Canada can play a role in Jamaica and the region to advance sustainable economic growth?”

Canada has said that opportunities exist in the region in infrastructure, renewable energy, climate resilience, financial services, tourism and education.

This is interesting. As I pointed out in my article of July 22, 2020, titled ‘Can CARICOM-Canada trade and investment flows be revitalized?’, trade and investment with Canada is actually quite low. CARICOM has had a surplus with Canada in trade, due mainly to exports of alumina, gold and other natural resources. In financial services, Canadian banks, dominant in the region for over a century, have been downsizing, reducing their footprint in the region. Scotia has been trying to leave Guyana for some time. At this point, I am not clear on the extent of Canada’s interest in financial services in this region.

The real areas of opportunity for Canada in advancing sustainability, I would think, are in renewable energy and climate resilience, which are areas of Canadian interest. There can be collaboration with Canada in the transition to the green economy, which includes renewable energy and climate resilience. There is also the blue economy, which refers to the economic uses of marine and coastal resources.

CARICOM’S POSITION

What is not clear to me is CARICOM’s position regarding Canada. CARICOM and its member states, including the private sector, should seriously examine the question posed by Minister Ng to determine what role Canada can play in advancing sustainable economic growth, and this would include looking for trade and investment opportunities for CARICOM businesses in Canada.

How can CARICOM countries improve exports of goods and services into the Canadian market? Are there real opportunities for collaboration between the Caribbean and Canadian private sectors to meet the demand for Caribbean goods, especially agro-based products? Can Canada assist in meeting environmental standards? What services can be actually traded? Is there any real potential for trading financial services in Canada?

CARICOM should be looking at Canada’s potential as a trade and investment partner, given that it is in this hemisphere; there is a Diaspora of about one million; and it is a source market for tourism.

For years, there has been an attempt without much success, it seems, to encourage ongoing dialogue between the CARICOM and Canadian private sectors. Is it possible to establish a CARICOM-Canada Trade and Investment Forum? This would still be covered by the 1979 Canada-CARICOM Trade and Economic Co-operation Agreement, which I believe remains in force.

Elizabeth Morgan is a specialist in international trade policy and international politics. Email feedback to columns@gleanerjm.com.