Caricom warns Venezuela on Guyana

26 October

Caricom on Wednesday told Venezuela to reject the use of force in its territory dispute with Guyana, to let it be decided by the International Court of Justice (ICJ).

A December 3 referendum on Venezuelan views on Venezuela’s claim to the resource-rich Essequibo region reignited the decades-long dispute, which emerged in 1962 after Venezuela said it would no longer heed an 1899 arbitration award.

The Caricom statement came days after the US allowed TT to pay Venezuela in currency for gas from the Dragon field being developed by Shell and PDVSA under an amended licence until October 31, 2025 granted by the US Treasury Department Office of Foreign Assets Control (OFAC).

Caricom noted the Venezuelan National Assembly’s decision to hold a referendum on defending Venezuela’s claim of the Essequibo, which is 160,000 square kilometres and constitutes two-thirds of Guyana.

The statement said if the referendum drew an affirmative reply to two questions, that would authorise the Venezuelan Government to “embark on the annexation of territory, which constitutes part of Guyana,” and to create a state within an enlarged Venezuela to be known as Guyana Essequibo.

“Caricom reaffirms that international law strictly prohibits the government of one state from unilaterally seizing, annexing or incorporating the territory of another state.”

An affirmative vote would “open the door to the possible violation of this fundamental tenet of international law.” The land and water in question – the Essequibo Region of Guyana – comprises more than two-thirds of Guyana.

“Caricom notes that the language of two questions approved to be posed in the referendum seeks an affirmation and implementation of Venezuela’s stance on the issue ‘by all means, according to/with the law.’

“It is open to reasonable persons to conclude that ‘by all means’, includes means of force or war. Caricom earnestly hopes that Venezuela is not raising the prospect of using force or military means to get its own way in this controversy over territory.”

The statement recalled the long-standing position of Latin American and Caribbean countries, including Venezuela, that this region must remain a zone of peace.

“Meanwhile, Caricom insists that the referendum proposed by Venezuela has no validity, bearing, or standing in international law in relation to this controversy.

“The referendum is a purely domestic construct, but its summary effect is likely to undermine peace, tranquillity, security, and more, in our region.

Caricom reiterated its support for the judicial process and hoped Venezuela will engage fully in that process before the ICJ which has determined that it has the jurisdiction in the case brought before it to determine the validity of the 1899 Arbitral Award which Venezuela questions.

“The court’s final decision will ensure a resolution that is peaceful, equitable and in accordance with international law.”

The matter was taken to the ICJ in 2018 and last April the ICJ ruled it did have the authority to adjudicate despite Venezuela’s objection. The Caricom statement came after a diplomatic tit-for-tat between Guyana, a new energy powerhouse, and Venezuela, whose energy-based economy has been crippled by US sanctions following questions about the fairness of its last presidential election.

The Venezuelan Government, in a communiqué on Wednesday, strongly objected to a joint statement earlier by Guyanese President Dr Mohammed Irfaan Ali and Guyana Opposition Leader Aubrey C Norton. The Venezuelans alleged Guyanese interference in Venezuelan matters, namely the referendum.

The communiqué accused Ali of repeatedly refusing to attend talks with Venezuela.

Alluding to Guyana’s award of exploration blocks to oil/gas companies, the Venezuelans accused Ali of persisting in his “illegal, abusive and arbitrary conduction of disposing of a territorial sea still pending delimitation.”

“This behaviour threatens the stability of the region, fed by Guyana’s stubborn association with the interests of the US Southern Command.” It said the referendum was rooted in a “full exercise of Bolivarian democracy.”

The statement said the referendum would take place in line with the law and would be done to guide public bodies and defend constitutional and legal principles.

The Venezuelan Government urged the Guyanese leadership to “dissociate itself from the interests of the Exxon Mobil transnational corporation and the US Southern Command,” but instead to sit at the negotiating table under the Geneva Agreement towards a practical and satisfactory solution for the parties.

Ali and Norton in a statement earlier said all Guyanese people agreed their country’s sovereignty was paramount and decried the referendum as the Venezuela Government’s latest action “in pursuit of its spurious claim to the Essequibo.”

“To this end, they condemned the flagrant violation of the rule of law by Venezuela and agreed that no effort should be spared to resist that country’s persistent endeavours to undermine Guyana’s sovereignty and territorial integrity.”

Ali and Norton said Guyana’s territorial integrity and sovereignty must be subserved by “a vigorous and comprehensive public relations programme and a proactive and robust diplomatic effort” against Venezuelan propaganda and misinformation on the territorial controversy generally, and the Geneva Agreement in particular.

The 1966 Geneva Agreement was signed by Guyana and Venezuela and outlined steps to resolve the dispute. The two Guyanese leaders backed the judicial process under way at the ICJ, to resolve Venezuela’s query of the validity of the 1899 Arbitral Award. It said for six decades since 1899, Venezuela treated the award as a final settlement of the border between the two countries.

To this end, Venezuela had consistently recognised, affirmed and relied upon the 1899 Arbitral Award as “a full, perfect, and final settlement” of the boundary between the former British Guiana and Venezuela. Venezuela proceeded to formally ratify the demarcated boundary in its domestic law and thereafter published official maps, which depicted the boundary following the line described in the 1899 Award.

For over 60 years, Venezuela gave full effect to that award, and never raised a concern as to its validity and binding legal effects, including in 1931 recognising the tri-junction point of the boundaries of British Guiana, Venezuela and Brazil as described in the 1899 award.

The statement said Ali and Norton said the referendum questions “violated the sanctity of treaties and blatantly disregarded the principles of international law.“

They said one referendum question claimed a “historical position” of Venezuela not recognising the ICJ’s jurisdiction to resolve the territorial controversy. Another question seeks the approval of the Venezuelan people to create a new Venezuelan state consisting of Guyana’s Essequibo Region, to include “the granting of citizenship and Venezuelan identity card.”

In claiming this could be done under the Geneva Agreement, Venezuela had misrepresented international laws, the statement said.

“They further underscored the fact that no Government or the people of one country has the right in international law to seize, annex or conquer the territory of another country. International law emphatically prohibits this. They acknowledged the support by the international community for the preservation of Guyana’s sovereignty and territorial integrity and urged that Venezuela’s actions be closely monitored as they pose a serious threat to the peace and security of the hemisphere.

“President Ali and Opposition Leader Mr Norton agreed to keep in close consultation on this matter of national importance.”

 

CANADA-CARICOM SUMMIT JOINT COMMUNIQUÉ

OCTOBER 20, 2023

To mark the occasion of the first Canada-CARICOM Summit held in Canada, leaders launched a Strategic Partnership, establishing a new permanent mechanism for structured high-level engagement and follow through on joint actions. They reaffirmed their unwavering friendship, built on strong people-to-people, historical and cultural ties, shared economic interests, and a commitment to democracy, human rights and the rule of law. Discussion focused on priorities of climate change, access to finance, regional and global security, and trade and investment.

On climate change, leaders called for an intensified collaborative effort to limit global temperature increase to 1.5°C above pre-industrial levels. While recognizing recent efforts on mitigation, adaptation, and the protection of biodiversity, they expressed the importance of practical actions, such as assistance on carbon pricing and operationalising a fund on loss and damage from climate change in the lead up to COP28 and beyond. CARICOM leaders welcomed Canada’s new support of $64.5 million in new climate financing, and $10 million for resilient agriculture systems.

On access to finance, leaders acknowledged the particular vulnerabilities of CARICOM countries to external shocks and offered perspectives on how to overcome systemic challenges in order to access finance. Focus was placed on reforming the international financial architecture, including the proposals of the Bridgetown Initiative. They agreed to work together in advancing solutions, such as new criteria to access finance at the Caribbean Development Bank, the widespread adoption of climate resilience debt clauses, and jointly advocating for common interests through Canada and CARICOM members’ shared constituency at the International Monetary Fund and the World Bank.

On regional security, leaders focused on the crisis in Haiti. They welcomed the United Nations Security Council Resolution 2699 (2023) adopted on 2 October 2023 and emphasized the importance of establishing a strong transitional government of unity to support the role of the MSS, the multinational security support mission (MSS). Leaders fully supported the central role of CARICOM and its Eminent Persons Group (EPG) in advancing political dialogue to establish a stable and representative arrangement that can effectively govern towards free and fair elections, and work with the international community to set the parameters for the MSS. Leaders welcomed Canada’s coordination role in building the Haitian National Police (HNP) capacity, including additional training support of the HNP.

While discussions focused on Haiti, leaders also engaged on key security challenges in the region, including illicit trafficking of weapons and drugs, and surging violent crime. In support of this, Canada committed $6.6 million to tackle illegal arms trafficking in Haiti and the wider Caribbean, as well as $4.6 million to address gender-based violence and women’s rights in the Eastern Caribbean.

Leaders also spoke of the importance of our common commitment to enhancing peace and security in both the Western Hemisphere and the world, including in Venezuela and the Middle East.

On trade and investment, leaders shared their perspectives on growth opportunities in the region to deepen commercial ties between Canada and CARICOM. CARICOM leaders welcomed Canada’s expansion of the Commonwealth Caribbean Countries Tariff program (CCCT), which gives countries in the region duty-free trade access to the Canadian market, to include textiles and apparel, as well as a new foreign labour program for agriculture and fish processing under the Temporary Foreign Worker Program.

Shared priority sectors outlined for trade and investment included agriculture, renewable energy and infrastructure. Leaders also offered insights on addressing ongoing supply chain issues; increasing the movement of people, goods, and investments; facilitating educational exchanges; and critical development needs. They emphasized the importance of engaging Caribbean diaspora communities in Canada to build strong and sustainable economies.

Participants

1. Canada Prime Minister Justin Trudeau
2. Antigua and Barbuda High Commissioner Ronald Sanders
3. Bahamas Prime Minister Philip Davis
4. Barbados Prime Minister Mia Mottley
5. Belize Prime Minister Johnny Briceño
6. Dominica Prime Minister Roosevelt Skerrit
7. Grenada Foreign Minister Joseph Andall
8. Guyana President Mohamed Irfaan Ali
9. Haiti Prime Minister Ariel Henry
10. Jamaica Prime Minister Andrew Holness
11. Saint Kitts and Nevis Prime Minister Terrance Drew
12. Saint Lucia Prime Minister Philip Pierre
13. Saint Vincent and the Grenadines Prime Minister Ralph Gonsalves
14. Suriname President Chandrikapersad Santokhi
15. Trinidad and Tobago Prime Minister Keith Rowley
16. CARICOM Secretary General Carla Natalie Barnett

Remarks by Dr Carla Barnett, Secretary-General, Caribbean Community (CARICOM) on the occasion of the Canada-CARICOM Summit “Strategic Partners for a Resilient Future”, Ottawa Canada, 17-19 October 2023

The Right Honourable Justin Trudeau, Prime Minister of Canada;
Honourable Roosevelt Skerrit, Prime Minister of the Commonwealth of Dominica and Chairman of the Conference of Heads of Government of the Caribbean Community (CARICOM);
Other Heads of State and Government of CARICOM Member States;
Distinguished delegates;
Ladies and gentlemen.

“It is a pleasure to be here today as we convene this Summit between the Caribbean Community (CARICOM) and Canada. On behalf of the Community, I express heartfelt appreciation to the Government of Canada for hosting this high-level engagement and for the warm hospitality extended to our delegations. Canada has remained a vital CARICOM partner since we established formal diplomatic relations, and the Community attaches great value to the bonds of friendship forged over the years.

Today’s engagement provides another opportunity for dialogue on strategies to further strengthen our cooperation and is a follow-up to our engagement during the Community’s Forty-Fourth Heads of Government Conference in the Commonwealth of The Bahamas earlier this year. These interactions are important to nurture closer relations with the view to the development of increased collaboration across various domains, including in the political, economic, environmental, health, scientific, and technical fields.

Excellencies, persistent socio-economic challenges continue to intersect with our common goals in foreign policy, trade, security, and development. Effectively addressing these global challenges requires focused global efforts founded on solidarity and driven by collective action.

Over the next two days, we will discuss a range of issues, including climate change and resilience, access to finance, reform of the international financial architecture, regional security, immigration, trade and investment, and the situation in Haiti.

CARICOM is committed to decisive action on climate change and building resilience in an inclusive and sustainable way in our Region. However, of equal urgency is working together to effectively reduce emissions and make a just transition to a clean energy future across the globe, to limit global warming to within 1.5 degrees Celsius. And, understanding that there are limits to adaptation, we also have to fairly and effectively address Loss and Damage.

CARICOM Member States and Regional Institutions have been collaborating with Canada on projects to combat the impact of climate change in the Region, including projects to enhance marine and coastal ecosystems management, and bolster water security. CARICOM’s Sustainable Agricultural Project to boost productivity, which has been implemented in five Member States, enjoyed significant support from Canada. This project helped to build climate resilience in agriculture and, by extension, contributed to CARICOM’s push to reduce our food import bill by 25% by 2025, and thereby build food and nutrition security for our Region.

Among other initiatives, Canada has also provided support to some small and medium-sized enterprises involved in fisheries, aquaculture, marine biotechnology, ocean renewable energy, and high-tech marine services.

Top of Form

This Summit is being convened against the backdrop of an unforgiving international environment marked by multifaceted global instability. As export-oriented small economies, still recovering from the COVID-19 pandemic and facing the ongoing challenges posed by climate change, the growing instabilities pose additional risks to the Community’s outlook for economic growth.

Dealing effectively with these challenges will require meaningful action on the call for improved access to affordable finance and fundamental reform to the international financial architecture. The discussions around the Bridgetown Initiative will therefore feature in these discussions.

This Summit will also provide a space to shape the Region’s financial and economic future, through trade and investment strategy discussions. In this regard will explore practical ways in which Canada can support the Region, in a manner that is uniquely beneficial to Canadian business interests and capital markets. Enhancing these commercial relationships and promoting multisectoral business and investment opportunities are critical to foster economic growth, job creation, and prosperity for both sides.

Excellencies, the situation in our largest Member State, Haiti, continues to be a major concern for the Community. Collaboration is critical among parties willing to help resolve the security, humanitarian and political crises. The Government of Canada is part of the collective effort to support meaningful solutions to the multidimensional crisis in Haiti. CARICOM’s objective is to help our sister Member State achieve peace, stability, and critically, economic and social development well into the future.

This diverse and substantial agenda underscores our mutual interest in bolstering ties and enhancing cooperation, and I am very optimistic that the initiatives which will be discussed over the next two days, will reflect continued leadership, commitment and shared responsibility to shape a better and more resilient future for the peoples of CARICOM and Canada.

Thank you very much co-Chairmen, ladies and gentlemen.”

 

 

 

CANADA-CARICOM STRATEGIC PARTNERSHIP

By Staff Writer Last Updated Oct 19, 2023

INTRODUCTION
Bound by an unwavering friendship, Canada and the Caribbean Community (CARICOM) seek to formalize their vibrant and multi-faceted partnership, as natural hemispheric partners, with strong and lasting foundations built on deep people-to-people, historical and cultural ties, and mutual respect. Among the first to recognize the independence of CARICOM member states, Canada remains steadfast in its trusted relationship with CARICOM over the years.

This relationship, forged in the birth of new Caribbean nations, has evolved into an enduring strategic partnership amongst equals, based on a shared commitment to democracy, the rule of law, respect for human rights and the rules-based international order, and which aims to advance common foreign policy, trade, security, and development priorities.

As global actors, Canada and CARICOM join forces to navigate evolving geopolitical events, including our most recent engagement in the triple crises of COVID-19, climate change, and food and energy insecurity. Together we commit to joint action on shared priorities such as climate resilience; building inclusive and sustainable economies; enhancing multilateral cooperation; and bolstering bilateral and regional security, including working together to help restore the security and stability of Haiti for the benefit of its people. We are also committed to working together to promote gender and racial equality and inclusion in the hemisphere, and to strengthening our already deep people-to-people ties. We are committed to achieving the sustainable development goals (SDGs) and building strong, resilient and inclusive societies and economies.

Marking the occasion of our first Summit to be held in Canada, we launch the Canada-CARICOM Strategic Partnership, to embed our close collaboration and cooperation on mutually agreed sectors.

OBJECTIVES
The Canada-CARICOM Strategic Partnership:

Serves as a permanent joint mechanism for regular dialogue, as well as for ad hoc consultations on issues of mutual interest, with responsibility for preparation, follow-up and implementation of joint actions, decisions and agreements between Canada and CARICOM.
Fosters the existing relationship between Canada and CARICOM through regular leader, ministerial and senior official level meetings to advance time-bound and agreed-upon roadmaps for action.

STRUCTURE AND COORDINATION
3a. General Coordination and Management

Global Affairs Canada and the CARICOM Secretariat will co-lead the general coordination and management of the Strategic Partnership. Collaborative partnerships can be forged between competent institutions in Canada and relevant regional organizations in CARICOM in order to drive dialogue and implement initiatives.

3b. Structure and Frequency of Meetings

The Canada-CARICOM Strategic Partnership is comprised of regular leader-level engagement to set overarching priorities and interests to advance and further deepen the partnership in addition to concurrent formal and ad hoc fora:

Canada-CARICOM Foreign Ministers’ Group (CCFMG): meet annually to advance overarching priorities through substantive discussions on issues impacting the Caribbean region and the hemisphere, emerging trends and solutions to common challenges.

Based on the agenda and discussions during the CCFMG, Ministers will set annual priorities for officials to guide the implementation of a Canada-CARICOM evergreen Roadmap for action. Foreign Ministers will report to Leaders through a joint letter from Canada’s Foreign Minister and the Council for Foreign and Community Relations (COFCOR) pro-tempore Chair of CARICOM describing engagement, progress to date and joint action to advance the Strategic Partnership.

Canada-CARICOM Ministerial Meetings: ad-hoc ministerial-level meetings to advance specific thematic priorities, including on Trade, Development, Finance, Health, Environment, and Defence, etc.

Canada-CARICOM Senior Officials’ Dialogue: the annual CCFMG meeting is preceded by the Senior Officials’ Dialogue, which serves as a preparatory meeting for Foreign Ministers’ substantive discussions on topline issues, and reviews progress and implementation of the Canada-CARICOM Roadmap.

Canada-CARICOM Expert Dialogues: ad-hoc expert dialogues between relevant Canadian and CARICOM institutions could be established to advance thematic priorities and actions listed in the Canada-CARICOM Roadmap, including bilateral, regional and multilateral initiatives. Expert groups would meet before and after major international summits, including – but not limited to – UNGA, the OAS, WHO, the Commonwealth, the G7 and the G20, to deepen coordinated action on multilateral priorities of democracy, human rights, and the rules based international order and amplify advocacy for hemispheric challenges. Expert groups would report on concrete progress at the annual Senior Officials’ Dialogue, to ensure effective and sustainable progress is being made on thematic lines of activity.

Capacity Building and Technical Assistance: to deepen institutional linkages through training, knowledge exchange, capacity building and technical assistance initiatives, including considering secondments as a form of exchange program, where a CARICOM official is embedded in a federal organisation and vice-versa in the Secretariat or within a CARICOM Member State’s organisation.

Special ad-hoc meetings: could be held at the request of Canada or CARICOM.

LAUNCH OF THE CANADA-CARICOM STRATEGIC PARTNERSHIP
Pursuant to the Co-Chairs’ Statement of the Second Meeting of the Canada-CARICOM Foreign Ministers’ Group, the Canada-CARICOM Strategic Partnership is hereby launched by Leaders at the Canada-CARICOM Summit in Ottawa, 18 October 2023.

 

 

 

Canada, Caricom bloc vow stronger bilateral ties

Reuters
October 19, 20238:09 PM GMT+1

Canada and the Caribbean’s Caricom regional bloc on Thursday announced the launch of a “strategic partnership” encompassing closer bilateral ties on trade, development, finance, environment, healthcare and security.

“We can benefit tremendously from being with Canada,” Trinidad and Tobago Prime Minister Keith Rowley said at closing remarks with Canada’s Justin Trudeau in Ottawa, adding that the benefits are “not only in dollars and cents”.Rowley said Caricom could benefit from Canada’s support in international forums and marketplaces, “influencing decisions which affect us,” including what he called “arbitrary” decisions made in disrespect of Caribbean interests.

Caribbean small island states, many of which have high debt loads and are disproportionately affected by climate change, have called for easier access to international financing and for rich nations to follow up on pledges to fund climate change mitigation

Trudeau said a visit was planned later this month regarding a Haitian political consensus on the deployment of a U.N.-ratified force, requested by Haiti’s unelected leader a year ago, as violent gangs extend their control driving a humanitarian crisis that has pushed 200,000 from their homes.

“There has to be a willingness, clearly expressed and articulated by the Haitian political class that this is the right thing to do,” Trudeau said.

This comes a day after a leading member of Haiti’s democratic transition council was kidnapped, a common occurrence as local gangs amass large sums through ransom demands.

Canada has sanctioned 28 people in Haiti, many members of Haiti’s political and business elite who have slammed the sanctions as lacking in evidence.

The United Sanctions earlier on Thursday renewed its sanctions regime against Haiti, which currently counts just one person, as Chinese and Haitian representatives urged faster action.

Reporting by Sarah Morland; editing by Jonathan Oatis

 

 

CARICOM expects Canada to get funds
CARICOM in Ottawa summit

Oct 18, 2023

Caribbean leaders hope Canada will raise their concerns on the international agenda.

“Our region has traditionally relied on Canada’s advocacy to highlight our challenges and realities and promote our interest in international fora where we do not have a voice,” said Dominica’s Prime Minister Roosevelt Skerrit at the start of the first Canada-CARICOM summit in Canada.

Trudeau, co-chair of a three-day meeting with leaders of CARICOM did not say whether Canada sees its role as amplifying the region’s voice.

Trudeau announced the creation of the Canada-CARICOM strategic partnership – a mechanism that promises to advance shared priorities of health, environment, trade, defence and finance.

“Deepening and strengthening our relationship will help us tackle urgent challenges together.”

St Lucia Prime Minister Philip Pierre, outlined the issues that will be on the agenda as Ottawa hosts the Canada-CARICOM summit. CARICOM’s lead on climate change, said the world is not on track to meet the goals of the 2016 Paris Agreement to work toward limiting warming to 1.5 C above pre-industrial levels. He hopes one outcome of the summit is a message to the world, through Canada, that the region needs help to cope with more frequent and intense tropical storms, rising sea levels and hotter days. The region needs Canada’s assistance to secure better financing terms from private lenders and multilateral development banks.

Trudeau’s office said the summit will be an opportunity to advance shared priorities.

“The leaders will also work to fight climate change and address its impacts in the Caribbean, including by exploring ways to improve access to financing for Small Island Developing States in the Caribbean,”

Opening the summit, Trudeau said Canada continues to advocate for better access to finance. Canada committed up to $58.5 million to the Caribbean Development Bank. to support renewable energy projects. $6 million has been earmarked through the Caribbean Climate Smart Fund for renewable energy systems.

Canada’s former Jamaican high commissioner, Robert Ready, said the summit is about strengthening ties between this country and the region . Within the last three years, Ottawa re-engaged with CARICOM, home to 16 million people.

“While there are a lot of Canadians who travel south as tourists, I think both sides have tended in the past to take each other for granted,” said Ready, who sits on the board of the Canada Caribbean Institute.

Haiti

This is Trudeau’s second meeting with CARICOM heads of government since his trip to the Bahamas in February. As it did then, the worsening security, political and humanitarian crisis in Haiti will feature in the discussions in Ottawa..The UN Security Council voted to authorize a mission to Haiti led by Kenya. which agreed to send 1,000 troops to restore law and order as part of a multinational mission. Skerrit said the United Nations, the World Bank, the International Monetary Fund and CARICOM need to unite for a “Marshall Plan,” for Haiti. In Trudeau said that Canada will continue to work with the regional bloc to find a “Haitian-led solution.”

 

 

Trudeau chastises Haiti elite,

Caricom urges investment

Oct. 19, 2023 – OTTAWA

Prime Minister Justin Trudeau is pushing the global community to target Haiti’s political class before a gang crisis further destabilizes the Caribbean.
.”Right now, there’s not even a consensus amongst the Haitian political class on whether or not someone should step in to stop people from being killed, murdered and raped.”

He was speaking at the close of a two-day summit in Ottawa where leaders of the Caribbean Community gathered to touch base on Canadian co-operation with the region.

Trudeau invited the group, known as CARICOM, to Ottawa to touch base on everything from climate change to reforming global financial institutions.

Yet Haiti’s security crisis loomed large over the summit, after a year of Canada calling for an end to brazen violence, sexual assaults and a hunger crisis in the country, where all elected officials have expired terms.

Kenya is preparing to lead a military intervention, which the United Nations Security Council approved this month, to stop gang violence. Canadian officials say the RCMP will likely send police, while the country is focused on helping Haiti maintain stability after the intervention ends.

Trinidad and Tobago Prime Minister Keith Rowley said CARICOM leaders are sensitive to concerns their support for Haiti will be conflated as propping up a “minority government arrangement.”

He said it’s crucial CARICOM and Canada be seen as “coming from honest brokers, and not in fact, propping up what exists in perpetuity — that in itself poses a danger.”

The country has been governed by Haitian Prime Minister Ariel Henry since August 2021, when he assumed the role without having been elected, following the assassination of the country’s president.

On Wednesday, Trudeau’s office publicly pressured Henry to work with his political opponents, releasing a statement touching on “the urgent need for a power-sharing agreement between Haitian Prime Minister Ariel Henry and opposition groups.”

Trudeau would not say Thursday whether Henry has become a barrier to establishing security in Haiti, nor whether this week’s meetings convinced him to work more with his opponents.

“It’s been 30 years — 30 years, that Canada has been there to help the Haitian people,” he said in French, in an impassioned tone.

“Unfortunately, during these 30 years, we weren’t able to resolve the situation. And the reality is, it’s not on the international community to resolve the situation for Haiti,” Trudeau said.

He argued Haitians must be empowered to fix the problems themselves, which he said involves having more countries put “in the line of fire” corrupt elites who have allowed gangs to thrive. He added that Canada will always help Haiti.

Leaders are seeking more Canadian private investment

Trudeau announced that Canada is creating a new temporary worker program for the fisheries industry, part of a focus on opportunities for Canadian investments in Caricom, as well as boosting trade.

“Canada is committed to implementing a new foreign labour program for aquaculture and fish processing under our temporary foreign worker program.”

Canadian industries can partner with countries in the region for green infrastructure, “smart agriculture” and renewable energy.

Guyanese President Irfaan Ali said countries want corporate Canada to be “more aggressive” in investing in more industries than mining and oil extraction.

“We want the Canadian private sector to come and be part of the opportunity, outside of the traditional areas of investment.”

Caribbean leaders frequently praised Canada’s traditional role in relaying the region’s concerns at other international forums.

Barbados Prime Minister Mia Mottley urged Trudeau to “help us speak truth to power” by convincing unnamed countries to stop preventing a reform of global financial institutions.

The leaders contend they are being economically devastated from hurricanes, while not being able to afford infrastructure that could weather such storms because they are now too rich to qualify for loans meant for the world’s poorest.

UK Royal Navy ship HMS Dauntless is on hurricane watch in the region to provide humanitarian relief.

Leaders praised Canada’s leadership in development aid as Caribbean countries gained independence in the 1960s, and Ottawa’s continued role in governing the Caribbean Development Bank.

Canada will host CDB annual board meeting next year and meetings are being planned between Canadian and Caribbean leaders in future.

 

 

 

Strengthen economies, regional security

October 18, 2023
Ottawa, Ontario

For generations, Canada and the Caribbean have been bound by ties of friendship, people, and business. Today, Prime Minister, Justin Trudeau, opened the Canada-Caribbean Community (CARICOM) Summit, “Strategic Partners for a Resilient Future”, hosted in Ottawa. Over the coming two days, leaders will advance shared work on fighting climate change, growing strong economies for the middle class, and strengthening regional security.

The Prime Minister will advance work to fight climate change and grow resilient economies. This includes a planned new commitment of up to $58.5 million in partnership with the Caribbean Development Bank to support renewable energy projects and $6 million through the Caribbean Climate Smart Fund for resilient renewable energy systems.

Leaders will discuss steps to strengthen regional security, including responding to the ongoing crisis in Haiti. To support Haitian-led solutions, Canada will build on previously announced assistance and launch a multi-year training program for the Haitian National Police (HNP) to help tackle gangs, strengthen anti-corruption mechanisms, and support the protection of Haitians afflicted by gang violence. Canada will also allocate $3.4 million of previously approved funds to address firearms violence in Haiti as well as support the HNP armoury and armorers.

To keep people safe across the region, Canada will invest $3.2 million for the Caribbean Firearms Roadmap to address firearms trafficking and proliferation, and deepen coordination between the Canadian Armed Forces and the Caribbean Disaster Emergency Management Agency to provide rapid delivery of humanitarian assistance and disaster relief.

The Prime Minister underscored Canada’s commitment to support CARICOM countries on critical health resources. Canada will allocate $18.3 million from Canada’s Global Initiative for Vaccine Equity to strengthen health and immunization systems and improve equitable access to vaccination in Haiti.

The Prime Minister will host a trade and investment roundtable to bring together leaders and investors on new opportunities for workers and businesses in Canada and the Caribbean.

“Canada and the Caribbean are longstanding partners, sharing vibrant communities and close ties. Welcoming Caribbean partners to Ottawa for the Canada-CARICOM Summit is another chance to keep strengthening this relationship and continue delivering good jobs, a healthy environment, and a safe future for people in Canada and the Caribbean alike.”

The Rt. Hon. Justin Trudeau, Prime Minister of Canada

This Canada-CARICOM Summit is the first time a CARICOM Summit has been held outside the Caribbean, a testament to the bond between Canada and the region.

CARICOM comprises of Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Lucia, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Suriname, and Trinidad and Tobago. The overseas territories of Anguilla, Bermuda, the British Virgin Islands, the Cayman Islands, and Turks & Caicos Islands are Associate Members.

In 2022, Canada’s two-way merchandise trade with CARICOM countries reached $1.8 billion. In 2021, bilateral trade in services reached $3.9 billion.

During the Summit the Prime Minister will lead three sessions:

1. Climate Change and Climate Resilience / Building Inclusive and Sustainable Economies;
2. Access to Finance and Global Financial Architecture Reform;
3. Regional Security and Haiti.

Canada is investing in a range of new support for the region including:  Climate Resilient Debt Clauses in all new sovereign lending, to provide relief to developing countries experiencing climate crises and natural disasters, first announced by the Deputy Prime Minister at the Annual meetings of the IMF and World Bank on October 14, in Marrakech.
$10 million in partnership with the Food and Agriculture Organization to support resilient food and agriculture systems that provide opportunities for women.

$4.6 million in partnership with the Justice Education Society to address gender-based violence and protect the rights of women, youth and children in the Eastern Caribbean.
And $410,500 for a partnership between Canada’s International Development Research Centre and the University of the West Indies for high-quality, locally relevant data to support democratic, inclusive and equitable development in the Caribbean.

Since 2022, Canada has committed over $300 million in international assistance to respond to the crisis in Haiti, sanctioned 28 individuals, and provided technical and tactical support to the HNP through the RCMP and the CA

 

Canada & CARICOM work to ‘overcome hurdles’

 Oct 19, 2023

President Dr. Irfaan Ali says the two partners are working to overcome hurdles .

The summit focused on improving the partnership between the 15-member regional bloc and Canada. Dr. Ali said numerous issues were discussed.

“These discussions encompass climate change and resilience, access to finance, reforming the global financial framework and regional security and a special emphasis on the situation with Haiti,” he said at a reception hosted by Canadian Prime Minister Justin Trudeau.

President Ali believes that the two sides can “overcome hurdles” once they work together.

Prime Minister Trudeau said much progress was made in advancing discussions on the wide-ranging issues. He pledged significant support for the region including support for Haiti, combating crime and boosting health systems.

Bound by an unwavering friendship, Canada and the Caribbean Community (CARICOM) seek to formalise their vibrant and multi-faceted partnership, as natural hemispheric partners, with strong and lasting foundations built on deep people-to-people, historical and cultural ties, and mutual respect.

Among the first to recognize the independence of CARICOM member states, Canada remains steadfast in its trusted relationship with CARICOM over the years. This relationship, forged in the birth of new Caribbean nations, has evolved into an enduring strategic partnership amongst equals, based on a shared commitment to democracy, the rule of law, respect for human rights and the rules-based international order, and which aims to advance common foreign policy, trade, security, and development priorities.

As global actors, Canada and CARICOM join forces to navigate evolving geopolitical events, including our most recent engagement in the triple crises of COVID-19, climate change, and food and energy insecurity.

Together we commit to joint action on shared priorities such as climate resilience; building inclusive and sustainable economies; enhancing multilateral cooperation; and bolstering bilateral and regional security, including working together to help restore the security and stability of Haiti for the benefit of its people. We are also committed to working together to promote gender and racial equality and inclusion in the hemisphere, and to strengthening our already deep people-to-people ties. We are committed to achieving the sustainable development goals (SDGs) and building strong, resilient and inclusive societies and economies.

Marking the occasion of our first Summit to be held in Canada, we launch the Canada-CARICOM Strategic Partnership, to embed our close collaboration and cooperation on mutually agreed sectors.

The Canada-CARICOM Strategic Partnership:

Serves as a permanent joint mechanism for regular dialogue, as well as for ad hoc consultations on issues of mutual interest, with responsibility for preparation, follow-up and implementation of joint actions, decisions and agreements between Canada and CARICOM.

Fosters the existing relationship between Canada and CARICOM through regular leader, ministerial and senior official level meetings to advance time-bound and agreed-upon roadmaps for action.

STRUCTURE AND COORDINATION

3a. General Coordination and Management

Global Affairs Canada and the CARICOM Secretariat will co-lead the general coordination and management of the Strategic Partnership. Collaborative partnerships can be forged between competent institutions in Canada and relevant regional organisations in CARICOM in order to drive dialogue and implement initiatives.

3b. Structure and Frequency of Meetings

The Canada-CARICOM Strategic Partnership is comprised of regular leader-level engagement to set overarching priorities and interests to advance and further deepen the partnership in addition to concurrent formal and ad hoc fora:

Canada-CARICOM Foreign Ministers’ Group (CCFMG): meet annually to advance overarching priorities through substantive discussions on issues impacting the Caribbean region and the hemisphere, emerging trends and solutions to common challenges. Based on the agenda and discussions during the CCFMG, Ministers will set annual priorities for officials to guide the implementation of a Canada-CARICOM evergreen Roadmap for action. Foreign Ministers will report to Leaders through a joint letter from Canada’s Foreign Minister and the Council for Foreign and Community Relations (COFCOR) pro-tempore Chair of CARICOM describing engagement, progress to date and joint action to advance the Strategic Partnership.

b. Canada-CARICOM Ministerial Meetings: ad-hoc ministerial-level meetings to advance specific thematic priorities, including on Trade, Development, Finance, Health, Environment, and Defence, etc.

c. Canada-CARICOM Senior Officials’ Dialogue: the annual CCFMG meeting is preceded by the Senior Officials’ Dialogue, which serves as a preparatory meeting for Foreign Ministers’ substantive discussions on topline issues, and reviews progress and implementation of the Canada-CARICOM Roadmap.

d. Canada-CARICOM Expert Dialogues: ad-hoc expert dialogues between relevant Canadian and CARICOM institutions could be established to advance thematic priorities and actions listed in the Canada-CARICOM Roadmap, including bilateral, regional and multilateral initiatives. Expert groups would meet before and after major international summits, including – but not limited to – UNGA, the OAS, WHO, the Commonwealth, the G7 and the G20, to deepen coordinated action on multilateral priorities of democracy, human rights, and the rules based international order and amplify advocacy for hemispheric challenges. Expert groups would report on concrete progress at the annual Senior Officials’ Dialogue, to ensure effective and sustainable progress is being made on thematic lines of activity.

e. Capacity Building and Technical Assistance: to deepen institutional linkages through training, knowledge exchange, capacity building and technical assistance initiatives, including considering secondments as a form of exchange program, where a CARICOM official is embedded in a federal organisation and vice-versa in the Secretariat or within a CARICOM Member State’s organisation.

 

 

Crime

At the three-day Canada-Caricom Summit in Ottawa, Canada. TT Prime Minister Dr Keith Rowley asked Canada to help Caricom and Trinidad and Tobago combat crime, with a focus on eradicating the illegal firearms and ammunition trade and bolstering security across the region.

The Prime Minister was leading a response to Session Three, titled “Haiti—Regional Security”, when he recounted the horrors associated with illegal firearms and bloodshed to several leaders, including Canada Prime Minister Justin Trudeau.

“In recent times, we have seen an explosion in the use of illegal arms and ammunition on a daily basis. In fact, the data now shows that we are losing, by violent killings, about 15 people a day in the Caricom region, nearly all of it from the use of firearms, and there is a proliferation of assault weapons, so the shootings usually end up with multiple casualties and many deaths.”

Illegal firearms in the hands of criminals had worsened the risk to national security.

“Gangs have been arming themselves more efficiently and effectively, they have become better killing machines to the point where they pose a threat to the state itself.”

Rowley referenced two recent major firearms hauls in Santa Cruz, as he illustrated the proliferation of illegal weaponry.

“Only last week in Trinidad and Tobago, diligent police work discovered a cache of 35 50-calibre weapons in a village. When we thought that was the end of it, we discovered another dozen, so people are arming themselves to carry out criminal business, largely the drug trade and human trafficking trade.”

He identified Canada’s role in improving the region’s border security through the acquisition of vessels.

“We need to be better able to patrol our coastal areas with small craft and we can’t get a proper supply of small craft to put into use immediately. I am amazed at how difficult it is to get small craft, littoral zone patrolling, but Canada has a long coastline, you have good business and it may very well be that in conversation with your people, we might be able to find some assistance. We’re not just talking about handouts, we’re talking about actually getting the equipment to help us patrol our littoral zones.” Criminals have grown their ability faster than the police has been able to cope and sought help with improved police training.

“Your management of policing is something quite significant. Again, collaboration and cooperation and training the trainer and getting assistance for our mid-level to upper management police officers to bring about better management of the criminal surge, that can help.” Cybersecurity remained on the region’s radar and efforts to address its threats were important in crime fighting. He recognised the need to review laws which he said “did not cater for the population that exists today”.

“They (laws) catered for a different breed of people, where there was some moral compass, some underpinning of good behaviour, some expectation of integrity in the institutions.”

If the legal responses were not adjusted, then the court would become a mockery for criminals.

In opening remarks on regional security, Canada Prime Minister Trudeau said steps continued to be taken to stabilise unrest in Haiti, hit by waves of gang violence following assassination of President Jovenel Moise in 2021.

Among the ongoing works to foster stability in Haiti, resources will be committed.

“We will welcome views of the Haitian delegation and other Caricom states on the matter. Canada is going to launch a multi-year training programme to assist Haiti’s police force to deal with corruption and gangs. We will also be allocating 3.4 million dollars to provide equipment and assistance to fight weapons-related violence. And to help Haitians remain healthy, we will be investing 18.3 million dollars under the global initiative for equality and fairness.”

Leading contributions on the topic Access to Finance: Global Financial Architecture Reform, Barbados Prime Minister Mia Mottley said urgent changes were needed to the international financial system, as countries had become indebted due to complexities in governance, environmental threats and changes to trade systems.

“Up to yesterday, two more countries were blacklisted and the consequences of these blacklistings continue to hurt our countries because effectively, companies will de-risk as a result of the enhanced due diligence put in place for them to do business.”

The absence of international financial institutions and the failure of G7 and G20 countries to recognise the disproportionate consequences of Caribbean people were unacceptable. She suggested how the International Monetary Fund could be more impactful.

“In an environment of high interest rates, the surcharges must go. One of the difficulties at the same time is while we call for access from middle income countries, it does not reduce our calls for the tripling of assistance to either countries and the reality is we want poor countries to stop being poor and middle-income countries from being poor again.”

Mottley lamented that the absence of political will to reform financial systems continued to cost Caribbean territories.

“I ask myself what was so special about 1969 that caused the countries of the world to rise to the leadership to introduce special drawing rights? Why are they more than equal to the task of their times than we are to the task of our times when the crises that we face are significantly greater?”

Some Caricom states are selling citizenship.

The Caricom-Canada summit is Prime Minister Trudeau’s second meeting with regional leaders for the year.

 

 

 

IMF

Country Report No. 2023/350 : Suriname: Third Review Under the Extended Arrangement Under the Extended Fund Facility-Press Release;

Staff Report; and Statement by the Executive Director for Suriname

Summary: The authorities continue to prioritize fiscal discipline and macroeconomic stability in their policy actions. Restructuring agreements have been reached for both official and privately-held public debt, aside from the official debt to China, where negotiations continue. The financial advisors are currently preparing to launch the formal debt exchange with private external bondholders.

 

The Government of Jamaica is working with international financial institutions and donors to strengthen cooperation, crowd-in private investment and build climate resilience following the Resilience and Sustainability Facility arrangement with the International Monetary Fund

IMF

IMF Staff Completes 2023 Article IV Mission to Namibia

Country Report No. 2023/342 : Cayman Islands: Technical Assistance Report-Improving Estimates of Gross Domestic Product

Summary: A technical assistance mission to the Economics and Statistics Office (ESO) of the Cayman Islands supported improved methods for compiling Gross Domestic Product (GDP) by economic activity and by expenditure components and assessed the feasibility of compiling institutional sector accounts (ISA) for the Cayman Islands. Given the importance of tourism for the economy, guidance was provided on how to develop a Tourism Satellite Account (TSA). A review of the data sources and methods used to compile GDP at constant prices was undertaken and improvements to deflators in the construction and service areas were recommended.

These data enhancements will improve the understanding of the Cayman Islands economy and will also assist the Cayman Islands in meeting the IMF Special Data Dissemination Standards requirements.

 

 

Antigua and Barbuda Staff Concluding Statement of the 2023 Article IV Mission

September 29, 2023

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

https://www.imf.org/en/News/Articles/2023/09/29/cs-92923-antigua-and-barbuda-staff-concluding-statement-of-the-2023-article-iv-mission?cid=em-COM-789-47216

Washington, DC: An International Monetary Fund (IMF) staff team, led by Ms. Emine Boz, visited Saint John’s during September 18-29 to hold discussions for the 2023 Article IV consultation with Antigua and Barbuda authorities. At the end of the visit, Ms. Emine Boz issued the following statement.

Recent Developments, Outlook, and Risks

Economic activity continues to bounce back from the sharp decline seen during the pandemic. Growth is projected at 8.5 percent and 5.7 percent for 2022 and 2023, respectively, with tourism and construction activity proving to be particularly strong. After reaching 9.2 percent at end-2022, inflation fell to 5 percent by July of this year, with core inflation also steadily declining.

The current account deficit widened to an estimated 16.2 percent of GDP in 2022 with higher tourism receipts more-than-offset by an increase in goods imports and a worsening in the terms of trade. As a result, the external position in 2022 is assessed to be weaker than the level implied by medium-term fundamentals and desirable policies.

The deficit and debt have been declining but gross fiscal financing needs remain high and the cashflow position of the government has been under strain. Fiscal measures put in place to limit the pass through of higher global food and fuel prices have been offset by improved revenue performance and wage restraint.

As a result, the primary deficit fell to 1.7 percent of GDP in 2022 (from 2.3 percent of GDP in 2021). The rapid rise in nominal GDP is estimated to have brought public debt to 87 percent of GDP by end-2022 (from 95 percent at end-2021).

The inability to access international capital markets has resulted in financing needs being met by issuing securities, mainly in the Regional Government Securities Market (RGSM), borrowing from domestic banks and regional institutions, and accumulating arrears.

While RGSM yields have remained low, the shortening of maturities has resulted in significant gross financing needs of around 13 percent of GDP in 2022. Despite some progress in resolving arrears to certain external creditors and domestic suppliers, the stock of outstanding arrears remains large.

The financial sector is well capitalized and liquid, but credit growth remains weak. As of 2023Q2, 6.9 percent of bank loans were non-performing loans (NPLs) with 78 percent of NPLs being provisioned for. Bank lending to the private sector has been falling as a share of GDP with weak credit growth for households and for small and medium-sized enterprises (SMEs) due to difficulty meeting documentation and collateral requirements for new loans.

On the other hand, credit union lending has continued to grow rapidly (7.6 percent year-on-year), although it still makes up a relatively small share of overall lending (13 percent at 2023Q2).

Antigua and Barbuda faces important risks ahead. Growth is expected to moderate and gradually converge to its long-term trend of about 3 percent and price pressures are expected to dissipate in 2024. However, higher global commodity prices would bring renewed price pressures and slower-than-expected growth in trading partners could hinder the strength of tourism demand.

Global financial conditions could tighten further and make the government’s efforts to access to international capital markets even more difficult, and a strengthening of the U.S. dollar could weaken competitiveness. The cost and availability of fiscal financing through the regional or domestic debt markets could become more restrictive, potentially worsening debt dynamics and increasing the recourse to arrears, particularly if the planned deficit reduction is not realized.

Climate change could lead to more frequent and extensive droughts and/or more severe hurricanes. An upside risk is stronger-than-expected FDI inflows that could further boost construction activity.

Fiscal Policy

The mission welcomes the authorities’ plan to reduce the primary deficit through a combination of revenue measures and expenditure restraint. Tax exemptions constituted 47 percent of potential revenues in 2023 (through August).

To mitigate the loss of revenues, the authorities have decided to cap discretionary exemptions on import duties and suspend exemptions on other taxes and charges. An update of valuations for property taxes is scheduled to be completed in Fall 2023 and a higher tax rate is planned to be applied to high-end properties (from 0.3 percent to 0.5 percent).

The authorities are transitioning to Harmonized System 2022 classifications at customs, which is expected to result in higher revenues from import duties.

There is continued effort in containing public sector wages and employment. These combined policy initiatives envisaged by the authorities are likely to generate a small primary surplus and bring debt down to 69 percent by 2028 and to 61 percent by 2035 (marginally above the ECCB Monetary Council’s target of 60 percent by 2035).

Public debt is assessed to be unsustainable due to the large outstanding stock of arrears and the fact that paying down these arrears appears unfeasible over the medium term without a broader debt restructuring. Limited access to financing is likely to lead to financing gaps even without considering the need to clear the existing arears.

The authorities should work toward building stronger fiscal buffers. Bringing debt safely below medium-term targets, reducing gross financing needs and clearing arrears will require additional policy measures equivalent to 0.5-1 percent of GDP.

The authorities should broaden the Antigua and Barbuda Sales Tax (ABST) base by reducing items subject to exemptions or zero-rating (those that do not serve social and economic objectives or were introduced in response to the COVID-19 pandemic), applying the standard rate of 15 percent to short-term accommodation (currently at 14 percent), and extending the ABST to online purchases.

Excise taxes on tobacco, alcohol, and sugar should be introduced. There is scope to improve collection of property taxes. The authorities should expedite the introduction of a single window system at customs and operationalize systems to allow e-filing, e-payment and e-registration of taxes. Furthermore, the authorities should improve tax compliance through administrative measures to close loopholes and further strengthen auditing capacity.

Better cash and debt management would lessen cashflow pressures and reduce the risks to fiscal financing. A sound cash and debt management strategy should focus on lengthening the maturity of debt to lower rollover risk, clearing outstanding debt arrears to external creditors and domestic suppliers, and defining the potential modalities for increasing access to climate financing and insurance against natural disasters.

The authorities should also undertake contingency planning for adverse scenarios where the availability of financing falls short of budgetary needs.

Improvements are needed so that the social safety net can better support the vulnerable. There are many social assistance programs administered in an uncoordinated way by various public entities. Consolidating these programs would be helpful but, at a minimum, there is a need for a centralized information system to provide an accurate record of all beneficiaries to keep track of the support they receive and identify gaps in coverage and duplication.

There is a need to move from generalized subsidies and support (e.g., through broad-based price subsidies for fuel) toward targeted programs whose benefits are periodically recalibrated to reflect cost of living changes.

Stronger fiscal institutions would improve the credibility of the fiscal framework. The Medium-Term Fiscal Strategy and Fiscal Resilience Guidelines should be enshrined in legislation. The establishment of the Fiscal Responsibility Oversight Commission should be accelerated and the Commission should be tasked with evaluating the government’s fiscal strategy.

The Finance Administration Act and the Customs Act should be amended to codify the planned restraint on discretionary tax exemptions and statutory exemptions should be consistent with the Antigua and Barbuda Investment Authority Act with Antigua and Barbuda Investment Authority monitoring the approved projects.

Financial Sector Policies

Modernizing supervisory and regulatory frameworks is crucial to preserve financial stability. The Financial Services Regulatory Commission (FSRC) should strengthen the oversight and regulation of credit unions. On-site examinations should be targeted at the risks presented by the rapid loan expansion of credit unions.

Supervisors should strengthen the standards for recognizing, provisioning for, and resolving NPLs. The FSRC should continue to require credit unions to strengthen governance and risk controls, building on recent efforts to require all institutions to have internal auditing capacity, qualified board members, and (for the larger credit unions) to have dedicated risk managers.

The stress testing framework should be further improved, and risk-based capital requirements should be established for credit unions, on a level playing field with banks. Furthermore, the planned incorporation of climate risks into the supervisory and regulatory frameworks should be accelerated.

The AML/CFT and Citizenship-by-Investment Program (CIP) frameworks should continue to be strengthened. This should include further improving risk-based AML/CFT supervision of financial institutions and designated nonfinancial businesses and professions, ensuring licensing requirements extend to the beneficial owners of applicants for business and exercising the recently expanded sanctioning powers.

The Office of National Drug Control Policy should increase its capacity to supervise these licensees for AML/CFT purposes. The databases of the Financial Intelligence Unit should be leveraged in assessing applicants for CIP agents and consideration should be given to additional mechanisms to mitigate financial integrity risks to maintain the integrity and long-term sustainability of the program.

Addressing longstanding constraints to financial intermediation would help bolster credit to the private sector. The upcoming ECCU regional credit bureau should help streamline lending processes and improve credit quality. The Eastern Caribbean Partial Credit Guarantee Corporation has been supporting access to credit by helping SMEs meet documentation requirements (information recording and financial planning) and addressing collateral constraints.

Additional efforts to incentivize SMEs to register their businesses would boost their ability to utilize this guarantee scheme. The regional efforts to modernize the national insolvency law will help facilitate the resolution of NPLs and provide greater clarity to lenders.

Structural Policies

Continued efforts are needed to strengthen the main engines of growth. Efforts should continue to increase flight connectivity and cruise ship homeporting. Operationalizing LIAT would help to further improve intra-regional flight connectivity and complement the recent expansion of other airline companies’ presence in Antigua and Barbuda.

Efforts should continue to boost tourism during the low season, which would not only smooth hotel occupancy rates throughout the year but also make the country a more attractive destination for airlines. Several cruise lines plan to use Antigua and Barbuda as a homeport starting from 2023, and a further expanded capacity of the Antigua Cruise Port is expected to facilitate the arrival of larger cruise ships.

Measures should be taken to accelerate a reduction in unemployment and underemployment. Active labor market policies should be strengthened to help address the slow recovery in formal employment, which has remained almost 12 percent below its 2019 level in 2022.

The existing one-stop employment center should enhance its capabilities to match employers with employees. The New Work Experience Programme should be made more effective by evaluating participants and by ensuring their successful exit from the program. The mission welcomes investments in vocational training and local universities, while training opportunities could be further enhanced in vocational education.

It will be critical to further mobilize donor support for investments in climate resilience. The authorities are utilizing funding from the Green Climate Fund, Adaptation Fund and Global Environment Facility to support 19 active projects of various sizes. Given fixed costs of developing and reporting, they are shifting their focus towards larger projects, facilitated by upgrading accreditation levels with these funds. The authorities have operationalized the Climate Resilience and Development Fund, which could also help to co-finance climate-related projects.

The transition to renewable energy will be challenging. According to the International Renewable Energy Agency, a successful energy transition, which could reduce the country’s energy costs by up to 40 percent (and reduce the impact of swings in global energy prices), would require up-front capital costs of up to around 25 percent of GDP (to upgrade the electricity grid, expand the use of electric vehicles, and invest in new wind and solar generation).

The limited availability of domestic financing sources makes it important to mobilize donor resources to support these initiatives. The transition has been gradual as regulatory barriers have been slowing the utilization of solar power by households and businesses. However, efforts are being made to explore new solar and wind projects. Upgrading the curriculum at the Antigua and Barbuda Institute of Continuing Education would help train new workers for this transition.

Data Issues

Progress is being made to improve data quality, but further efforts are needed. Data provision is broadly adequate for surveillance, but with important shortcomings. Work is ongoing to construct a Producer Price Index for services, update the Labor Force Survey, rebase the national accounts data along with methodological improvements, and improve external sector statistics.

Rental costs have been reintroduced in the Consumer Price Index using interpolation and surveys will resume once the census is completed next year. Efforts are underway to produce poverty indices based on the results of the Labor Force Survey. Timely reporting on central government and state-owned enterprise operations would help inform policy decisions.

The mission team thanks the authorities and other counterparts for their excellent collaboration and the candid and constructive discussions.

Table 1. Antigua and Barbuda: Selected Economic and FinancialIndicators

 

 

 

 

 

Hess, Chevron in blockbuster deal

Oct 25, 2023 ExxonMobil, News, Oil & Gas

 Guyana will honour contract as is

Following Chevron’s announcement that it is acquiring Hess Corporation, giving it full control over Hess’s 30 percent interest in the Stabroek Block, a special conference call was held with shareholders to apprise them of the particulars of the deal.

Shareholders acknowledged that Guyana is the best oil asset in the world and questioned the implications of the Stabroek Block Production Sharing Agreement (PSA).

Chevron Chief Executive Officer and Chairman, Mike Wirth told shareholders that the Stabroek Block contract is secure and “has proven to be very stable through the years…obviously we’ve looked at that and believe it’s a good contract that is durable.”

 CEO of Hess Corporation, John Hess also gave assurances of the contract as he noted that the leadership of Guyana has been very clear that they will honor the contract as is. “Contract sanctity is really important and foreign investments are really important. They’ve (government) been very clear with our joint venture that they want us to go as fast as we can to develop their oil into a financial resource that can help their country develop, and have a higher standard of living and shared prosperity for every Guyanese citizen.”

Aware of the government’s position and support, Hess said “Guyana is a place where both Hess and now Chevron are very confident about investing further and look forward to attractive returns going forward.”

Chevron Corporation, one of the world’s largest oil companies, had announced that it will be buying out all the outstanding shares at Hess Corporation for US$53 billion, or US$171 per share.

Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. Taking this and other financial arrangements to follow, the full value of the transaction is US$60 billion.

Significantly, Chevron’s acquisition of Hess will give it exclusive control over a grand prize—30 percent of the working interest in Guyana’s Stabroek Block where over 11 billion barrels of oil resources have been unlocked. In that deepwater block of 6.6 million acres, ExxonMobil is the operator with a 45 percent working interest while China National Offshore Oil Corporation (CNOOC) holds 25 percent.

Since oil production commenced in December 2019 at the Stabroek Block’s Liza Phase One Project, Exxon successfully started another, the Liza Phase Two, in February 2022. Both projects are producing about 400,000 barrels of oil per day. Exxon and partners are also targeting over 1.2 million barrels of oil by 2027, making Guyana’s Stabroek Block, one of the world’s fastest-ever oil development hotspots.

Hess’ CEO is quoted on numerous occasions, stating that the Stabroek Block has five government-approved projects, each of which will generate over US$1B in annual profits for his company.

In like manner, Chevron dubbed the Stabroek Block as “an extraordinary asset with industry leading cash margins and low carbon intensity that is expected to deliver production growth into the next decade.”

As a result of this deal, Chevron intends to recommend an increase to its first quarter dividend per share of 8% to US$1.63, which will be subject to the approval of the Chevron Board of Directors.

It also plans to increase share repurchases by US$2.5 billion to the top end of its guidance range of US$20 billion per year in a continued upside oil price scenario.

 

 

Chevron to ‘more than double’ free cashflow and hike dividend after $53 billion Hess takeover

CEO explains impact of addition of Hess and its assets

23 October 2023 By Davide Ghilotti in London

US major Chevron will deliver a new increase in its return to shareholders following the buyout of fellow oil producer Hess, Chevron chief executive Mike Wirth told investors on Monday.

Earlier on Monday, Chevron announced it has entered into a definitive agreement to acquire Hess in an all-stock deal valued at $53 billion.

 

 

 

Farewell to Hess – one of the last ground-breaking E&P companies 

ConocoPhillips and Occidental are some of the only US companies of scale left

25 October 2023
By Russell Searancke in Oslo

OPINION: The downside of oil and gas mergers and acquisitions is that ground-breaking exploration and production companies disappear, as looks likely with US independent Hess, though thankfully it appears the company’s iconic toy trucks will not vanish as quickly.   Hess had mojo.

 

 

 

USA & CARICOM

On Monday, US Southern Command Deputy Vice Admiral Alvin Holsey and US Ambassador Candace Bond met with Prime Minister Dr Keith Rowley, Minister of Foreign Affairs Dr Amery Browne and National Security Minister Fitzgerald Hinds to discuss continued security co-operation between the US and TT. Holsey and Bond presented a US$1 million field hospital and ambulance to the Tobago House of Assembly (THA).

Unfortunately, the chair of the Caricom Reparations Commission and UWI vice chancellor Prof Sir Hilary Beckles organised the Africa-Caricom Day forum on September 7, at the University of the West Indies (UWI) Jamaica, which designated CARICOM as the sixth region of the African continent in the presence of Caricom secretary-general Dr Carla Barnett. Geographically, this unilateral action is ludicrous as Caricom begs Canada for help to combat home-grown criminals.

The cosmopolitan Bloc has been acquired by a continent of foreign states, without consultation or a referendum. No wonder the Bolivarians are emboldened to grab territory since there was no statement from Caricom contradicting the linking its interbred populace with Africa.

The solution is dissolution of Caricom as a bloc. The USA can then acquire the region as Unincorporated Territory. This act would resolve the issues over finance. Haiti can take up the offer from the AU to repatriate to ancestral domiciles. The USA can develop Haiti with agriculture, tourism and a naval base to stymie PRC hegemony.

The USA is home to over 41 million African Americans and will welcome English-speaking afro-caribbean citizens who can also choose to repatriate to the AU.