STRONGER CARICOM government lobbying efforts in Washington, the need for a more unified and effective regional private sector organisation and the creation of specific programmes to strengthen public and private sector links with Central American countries are some of the key areas for action recently identified at a recent forum in the U.S. capital.Priority areas and strategies to significantly boost trade and investment between the U.S. and CARICOM countries were also key talking points at the Caribbean Central American Action (CCAA) annual conference, held for the first time in Washington after being held in Miami for three decades.

Officials from the U.S. State Department, Department of Commerce, Department of Energy, U.S. Agency for International Development (USAID) and the influential U.S. Chamber of Commerce participated in the conference.
Anton Edmunds, President and CEO of The Edmunds Group International (TEG), a boutique consulting firm that focuses on supporting clients with interests in the Caribbean Basin region told me the message emanating from U.S. administration representatives was one of seeking to build a partnership with CARICOM and Central American countries as opposed to being regarded as a “benefactor”.
Edmunds, a former CCAA Executive Director, believes as far as getting major enhancements to the Caribbean Basin Initiative (CBI) and reaping benefits under the U.S. CARICOM Trade and Investment Framework Agreement, the ball is very much in the Caribbean’s court.
When a Canada-CARICOM Trade and Development Agreement is signed, it will likely serve as a benchmark for talks with the U.S. administration on an expanded CBI.
During the two-day event, discussions also centred on drug trafficking and crime in the Region and its impact on attracting investment, trade and competitiveness.
Conference participants heard from the Organisation of American States (OAS) Assistant Secretary General Albert Ramdin about the importance of the Region moving forward in the areas of political and economic stability. The OAS also wants to engage the private sector to play a bigger role in programmes to address employment issues and training.

RELATIONS WITH CHINA
Among the issues discussed was how CARICOM countries are managing multiple international relationships. One message that was loud and clear was that there is a need for CARICOM countries to better manage its relations with China, especially regarding transparency and contracts. It was noted that many CARICOM countries have embraced new infrastructure, grants and loans from China without addressing the critical issue of standards for projects.
One of the highlights during the CCAA conference was the launch of the Services of the Caribbean (SOCA) initiative which focuses on advancing new trade and investment opportunities between the U.S. and CARICOM services.
“While the Caribbean Basin Initiative (CBI) regime is focused solely on goods, paradoxically, CARICOM countries have much greater potential for trade in services, yet the CBI does not cover services,” SOCA Co-Chair Nirad Tewarie, CEO of the Trinidad and Tobago Coalition of Services Industries (TTCSI) said at the launching.
Former Assistant U.S. Trade Representative, Stephen Lande, who played a key role in the implementation of CBI legislation in the U.S. Congress, noted that the region’s economies are already over 70 percent concentrated in the services sector.
“It is a necessity of trade and business policy to upgrade and expand the original CBI which was centred on goods and to make the CBI more relevant to the services reality of U.S.- CARICOM rade,” said Lande, who is now President of Manchester Trade, a business advisory firm in Washington.
The SOCA group emphasised that tourism and travel account for 30 percent of GDP and 25 percent of employment in the Caribbean, while financial and professional services are also major contributors to revenue earnings.

EMERGING OPPORTUNITIES
In addition, several studies have identified emerging opportunities in the areas of ICT and offshore education, and non-traditional tourism such as eco-tourism and health tourism.
The newly-formed services coalition believes that since CARICOM already has access to the European Union through the Economic Partnership Agreement (EPA), the region could be a service hub for interchange between the E.U. and the U.S.
The Trinidad and Tobago and Barbados governments and private sector representatives were highly visible at the Washington forum.
Trinidad and Tobago’s Ambassador to Washington, Neil Parsan urged CARICOM and Central American countries to consider “tactical” cooperation in the areas of energy and trade. He also pointed to the potential opportunities arising out of an expanded Panama Canal.
The Trinidadian diplomat acknowledged the need to reduce the time it takes to do business in both regions. He referred in particular to the challenges of poor infrastructure and weak institutions.
Barbados Minister of Industry, International Business, Commerce and Small Business Development Donville Innis said public-private sector cooperation in the Region needs to be strengthened.
The CCAA event provided excellent opportunities for CARICOM private sector organisations and entrepreneurs to partner with their Latin American counterparts.
One of the challenges that need to be addressed quickly is the lack of a cohesive Caribbean private sector group that represents the Region’s interests at an event such as the CCAA forum which is attended by key U.S. policy makers and business groups.
CCAA Executive Director Sally Yearwood told me the Washington venue for the annual conference allowed for a much stronger emphasis on policy issues and put Caribbean and Central American issues on the radar of U.S. policy makers and business organisations.
Yearwood said in recent years, there has been an increasing focus in the Obama administration on the Caribbean, energy, debt and security issues. Among the successes of the Caribbean Basin Security Initiative (CBSI) recently identified are cocaine seizures across CARICOM Member States, training of police personnel and the provision of fast boats to help curtail maritime criminal activities.
The CCAA official observed that the private sector delegations from Central America travelled together and provided a united front at the conference, something she believes the Caribbean private sector should emulate.

“HARSH REALITY”
Edmunds believes it is time the Region’s private sector gets its act together and engages in advocacy on key issues both within and outside the Region. He feels the “harsh reality” is that current private sector leadership in the Region seems to lack the sophistication, expertise or influence of past leaders.
I recall that highly respected CAIC presidents such as Trinidad and Tobago’s, Thomas Gatliffe and John Stanley Goddard of Barbados had the ear of CARICOM leaders and the organisation made a substantial input on major trade and economic policy issues on the agenda of CARICOM Summits. They were also strong advocates on regional issues internationally.
There are question marks over whether a revamped CAIC or the approach of CARICOM leaders to constitute the long mooted Caribbean Business Council will be the main vehicle to engage the Region’s private sector, international policy makers and business groups.
The launch of the SOCA services coalition also raises the question as to why the launch of such a group became necessary, how it will relate to a regional umbrella private sector entity and how much input it will have in the development of strategies for the Region’s external trade negotiations managed by the CARICOM Office of Trade Negotiations (OTN). (Sandra Ann Baptiste is a Business Consultant and Specialist in Caribbean Affairs)
Written By Sandra Ann Baptiste