BASSETERRE, St. Kitts – THE Partial Scope Agreement signed between Brazil and the Federation of St. Christopher and Nevis earlier in the year is expected to move into its next stage by the next sitting of the Federal Assembly.
Under the arrangements of the agreement, the Federation will receive a competitive edge in the Brazil and Guyana markets with local manufacturers being able to export their products to these territories at near zero-rated tariffs.
Speaking exclusively with SKNVibes on the status of the agreement, Senior Minister with responsibility for Industry and Commerce, the Honourble Dr. Timothy Harris explained that the request for this agreement was driven chiefly by the three largest entities in the manufacturing sector, Kajola Kristada, Jaro Electronics and Harowe Servo.
And notwithstanding that the agreement was signed on May 11, 2012 and later deposited at the Secretariat for the Latin American Integration Association (ALADI), Harris explained that it would not come into full effect and its benefits would not be reaped until a number of formalities have been completed.
Chief of these – he noted – is the ratification process which has to be done by respective law-making bodies of the Republic of Guyana, the Federation of St. Christopher and Nevis and the Federative Republic of Brazil.
He explained that the agreement would have to be ratified by the Senate of Brazil and, in the case of Guyana, the process includes support of the agreement by the Cabinet.
In the case of St. Kitts - as explained by Dr. Harris – he said that the matter would be taken to Parliament by way of resolution for ratification.
“Strictly stating, the Constitution does not require that trade agreements for St. Kitts and Nevis be ratified but we want to be on all fours and we want that there be some symmetry in the action, so we will take it to Parliament for the transparency and also to provide some comfort to the government of Brazil which is also be taking its agreement to the Parliament.”
The Senior Minister noted that St. Kitts-Nevis has no control over the length of time within which the governments of Guyana and Brazil would ratify the agreement. However, “We are in active consultations with the two parties, urging for expeditious ratification on their end.”
When that would have been completed - the Commerce Minister indicated – local stakeholders would then be able to engage in commercial trade. He said the onus then would be on all stakeholders to familiarise themselves with the each other’s markets and the logistics of trade etc.
Reminding of the benefits to be had by the Federation from this agreement, Dr. Harris spoke of a consolidated market for specific products, opportunities for expansion of some factories and their workforce and the strengthening of the viability of the manufacturing sector.
