– outgoing chair tells Member States

OUTGOING Chairman of the Caribbean Community (CARICOM) and Prime Minister of Saint Lucia, Allen Chastanet, said climate change, blacklisting by the European Union, the adversities facing small island states in the international community and the withdrawal of correspondent banking services are among critical issues being frontally addressed by the Community.

Prime Minister Chastanet, at the time, was addressing Members States at the opening of the 31st Inter-Sessional Meeting of the Conference of Heads of Government of the Caribbean Community in Barbados, alongside the Secretary-General, Ambassador Irwin LaRocque and incoming Chair and Prime Minister of Barbados, Mia Mottley.

In his address on Tuesday, PM Chastanet said that, last November, a delegation from the Community led by the Prime Minister of Antigua and Barbuda, Gaston Browne, took the issue of correspondent banking and de-risking to Washington in light of the threat of the region’s financial institutions losing critical relationships with US banks.

“I can report that we have moved the needle on de-risking and that the OECS is working on a single compliance department. We were able to draw the attention of the members of the Financial Services Committee of the United States’ Congress and senior representatives of major US banks, including Bank of America, to the catastrophic effect…,” he told Heads of Government present.

Noting that the effects of such withdrawal continue to take a toll on the economies of the Member States, the Saint Lucian Prime Minister pointed out that studies have indicated that by mid-2018, 25 per cent of the 50 banks operating across CARICOM had reported termination of correspondent banking services, while 75 percent reported they were facing certain correspondent banking restrictions.

Additional negative consequences, he said, include the increase in operational costs, an extension in the processing time for international payments, as well as increased difficulty in account opening or securing banking services.

PM Chastanet, in his address, also reported that another CARICOM delegation interfaced with the European Union on the troubling issue of blacklisting. In their quest to reel back the effects of blacklisting, Member States have been taking necessary steps to comply with the demands of the regulating agencies; however, some countries are still being penalized.
“Some of us remain on the grey list, while only one Member State remains on the blacklist. We must continue working until all of us are off the list, but more importantly, we must make every effort to ensure this undemocratic and discriminatory practice of a public blacklist is discontinued,” the Saint Lucian Prime Minister said

In the unavoidable absence of the Prime Minister of Canada, Justin Trudeau, PM Chastanet said he was pleased to welcome the Canadian Foreign Affairs Minister, Francois-Philipe Champagne. Canada, he noted, has been and continues to be a true friend of the Caribbean – making much needed representation on behalf of some Member States at the World Bank and International Monetary Fund. Added to that, Canada is a member of the G7, G20 and a leading voice at the Commonwealth, as well as being a major contributor to the Caribbean Development Bank. However, PM Chastanet said more could be done by Canada to reduce the challenges faced by Member States.

“As impressive as our ties have been I believe there is still more that can be done, and while not attempting to preempt the discussions we will be having here, we need Canada’s voice and leadership on climate change, de-risking and blacklisting,” he submitted. He said despite the withdrawal of some Canadian Banks from the region, Canada continues to invest in the Community through both public-private partnerships and privately.
Meanwhile, he said Venezuela’s economic and political turmoil continues to be of grave concern to the Regional Bloc. The lack of resolution, he emphasized, is worrying. “So far all efforts at mediation have failed; in fact from all indications conditions in Venezuela continue to deteriorate despite a recent lull and this is likely to make finding a solution even harder. The involvement of outside forces in the controversy, however, could only escalate the crisis and make a resolution that more difficult, while at the same time testing and stressing our own attempt at a common position on that issue,” he told the Head of States.
Similarly, PM Chastanet said solution to the long standing difficulties in Haiti also remains elusive. While CARICOM has ring-fenced some of Haiti’s rights and privileges in its Treaty, the outgoing chairman said Member States must admit that they have failed in their attempts to find a solution and, therefore, collectively, they must chart a new course. “We owe it to the people of Haiti who deserve much more, given our common histories,” he said.

With the United Kingdom set to formally leave the European Union at the end of 2020, the outgoing chair said it was important to continue discussion on the agreement that would govern trade between CARICOM and UK post-Brexit that would replicate the effects of the CARIFORUM-European Union Economic Partnership Agreement (EPA). Such a move, he posited will ensure continuity in the preferential trading relationship and avoid disruption in preferential trade between the CARIFORUM States and the United Kingdom.

“The UK market is important to us as it currently absorbs approximately 25 percent of our total exports to Europe, which comprise bananas, rum, sugar, rice, agro-processed goods and methanol, among others. With regard to services and investment, the UK has provided significant guarantees of access to its market and CARIFORUM is committed to working closely with the UK to ensure that our service providers can take further advantage of this market,” he said. The new CARIFORUM-UK EPA goes into operation from January 2021.
Mobilizing funds to tackle the issues of disaster risk financing as a consequence of climate change and implementation of the CARICOM Single Market and Economy (CSME) and the fight to safeguard the region against the Coronavirus were among other areas covered by PM Chastanet in his address to Member States.