BASSETERRE, St. Kitts – MORE negotiation and consultation must be done before the Federation can sign a partial scope trade agreement with Brazil that could open new opportunities for the nation’s manufacturing sector.
This is according to the Permanent Secretary in the Ministry of International Trade, Her Excellency Ambassador Rosalyn Hazelle. The ministry official explained that the manufacturing sector would be the main benefactor of the trade agreement if it were to be put in place.
“We have a very vibrant electronics sector and what is apparent is that we are producing quality goods already traded with Brazil, but they carry a certain level of tariffs. But, if we have this trade agreement, that would mean increases in employment. It will provide us with a number of economic opportunities,” Hazelle stated.
As outlined by the permanent secretary, a series of discussions with stakeholders from across the region are ongoing because a number of countries have expressed concern about some of the products that would be allowed through the partial scope arrangement. While similar concerns may arise in St. Kitts and Nevis, Ambassador Hazelle described the agreement as a “win-win” situation for the Federation.
“If we are benefiting, Brazil will benefit as well. We don’t know at this point what Brazil will bring to the table. So, we will discuss what items will threaten our local and regional productions. For now though, we don’t see it as impacting us negatively.
“However,” Hazelle continued, “part and parcel of the negotiation process will allow an enabling environment for us to know what will be possible through the trade agreement.”
Technical assistance has been sought from CARICOM for consultants to carry out a qualitative analysis on the trade policy and on the fiscal impacts the partial scope agreement may have. Those consultants are expected to arrive in the Federation in mid-March.
Hazelle informed that negotiations would continue for some time, adding that an upcoming meeting is expected to address technical areas of the partial scope agreement. CARICOM and OECS stakeholders will be a part of this meeting to encourage “open and transparent” negotiations.
The partial scope trade agreement would allow market access for a limited number of items to be traded free of duty. The manufacturing sector is expected to benefit greatly from the huge Brazilian market.
