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"This reflects the progress many countries in the region have made in improving their macroeconomic fundamentals," said Anoop Singh, Director of the Western Hemisphere Department during a press conference over the weekend. His comments came as the IMF's Managing Director Dominique Strauss-Kahn noted that the financial crisis, which originated in the collapse of the United States mortgage market in August 2007, has deepened further and is now affecting many parts of the global financial system, including emerging markets. He said that "intensifying solvency concerns about a number of the largest US-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown". But Mr Singh said that "policy makers in the region remain on very high alert to dealing with the current shocks as well as additional risks such as volatile commodity prices". The World Economic Outlook released on October 8 projects growth in the Western Hemisphere at 4.6 per cent in 2008 and 3.2 per cent in 2009 after 5.6 percent in 2007. The IMF's half-yearly Regional Economic Outlook on the Western Hemisphere region will be released on October 22. Mr Singh said that the essential priorities for the region include preserving the proper and efficient functioning of financial systems by addressing risks from liquidity and asset quality. "We see policy makers firmly oriented toward this end," the IMF official said, adding that many countries have built up considerable foreign exchange buffers that could be used to deal with exceptional and temporary shocks. Mr Singh added that Central Banks will need to keep inflation expectations well anchored by maintaining active communication with markets on policy challenges and measures. In the midst of the crisis, Jamaica and Guyana have indicated they will seriously look at the impact on their economies. Prime Minister Bruce Golding has put together a team to monitor the crisis and suggest ways to deal with any fallout; while President Bharrat Jagdeo has announced he will meet with various stakeholders to determine the way forward. World financial leaders have endorsed an action plan, announced by the G7 group of nations (United Kingdom, the United States, France, Canada, Italy, Japan and Germany - the world's largest economies) to combat the international financial crisis, in what Mr Strauss-Kahn called the "first big success in coordination" to halt the downward spiral in world markets and support the global financial system. The plan was announced when the International Monetary and Financial Committee (IMFC), the policy-setting body representing the IMF's 185 member countries, met on Saturday. IMFC Chairman Youssef Boutros-Ghali said the meeting showed the "resolve, unity, and focus" of the world community to address the crisis and that "no tools will be spared" in addressing it. Mr Strauss-Kahn added that the IMF stands ready to lend quickly, through its emergency financing mechanism, to any member country in financial difficulty as a result of the financial meltdown.
Minister of Foreign Affairs, Carolyn Rodrigues, said that at present she was unaware of any 'drop dead' date for the signing of the EPA, but were Guyana to be faced with a real threat of punitive taxes on its exports to Europe, "President (Bharrat) Jagdeo has already said that we will sign." She noted that the Administration was still working with CARIFORUM leaders to have the two clauses that were suggested in a declaration as an appendage to the EPA. The two clauses aim to have the Treaty of Chaguaramas take precedence over the EPA, were there to be conflict between the two, and to have the impact of the EPA reviewed every five years. An article emanating from Brussels on Friday had hinted that the European Union was preparing to impose taxes on goods imported from Guyana as punishment for the "Caribbean island's" refusal to accept a free trade accord. The article referred to a document that is expected to be rubber-stamped by the EU Foreign Ministers on October 13, suggesting that Guyana would therefore no longer benefit from the favourable treatment scheme for its Europe-bound exports that have been in place since 1975. As a result, it would be subject to higher tariffs on its exports of rice, rum and seafood. Patrick Gomes, Guyana's Ambassador to Brussels, is quoted in the article as saying that the EU move could ultimately lead to this country losing 70 million euros (US$94 million) each year. "For a small economy to absorb that loss would be devastating," he said, adding that he will be undertaking discussions with EU officials to see if a solution can be found ahead of the Foreign Ministers' meeting in Luxembourg. Their meeting takes place just two days before a formal ceremony in Barbados, at which the Agreement will be signed by both EU and Caribbean representatives. When asked to comment on the report, President Jagdeo said that it was not entirely accurate. He said that there is no stipulation that Guyana must sign the EPA on October 15. When contacted for a comment on Guyana's position, EC's Ambassador to Guyana, Geert Heikens, had said that it would be highly unlikely that the agreement in its present form would be changed before any signature. He also alluded to the fact that there would be a Ministerial Joint Council, following the signatures, that would oversee the EPA; and at that stage, any concerns could be addressed and possibly changed. He noted that the signatures were important to be acquired as soon as possible, given that the EU has already opened its market to duty-free and quota-free access to CARIFORUM countries in violation of the WTO (World Trade Organisation). According to Ambassador Heikens, if Guyana did not sign on to the EPA by November 1, then there would be no trading agreement with Guyana; hence, as is required by the WTO, GSP (Global System of Preferences) will have to be applied. This will see tariffs being imposed on Guyana's exports to the EU, making them uncompetitive. Although 78 African, Caribbean and Pacific (ACP) countries have been involved in EPA negotiations with the EU, the Caribbean agreement is the only comprehensive one to have been concluded on a region-wide basis. The negotiations have been overseen by Peter Mandelson, who was the EU's Commissioner for Trade before his surprise return to British politics earlier this month as cabinet minister for business affairs. President Bharrat Jagdeo has long condemned the reciprocity aspect of the EPA, as well as the services component, and has been calling for a 'goods only' agreement to be signed, with a two-year grace period to properly monitor the services component of the deal. This notion was rejected by the EU Chief Negotiator, Karl Falkenberg, who said, during a recent consultation on the EPA in Guyana, that the deal will not change and Guyana must sign or face the consequences. The Caribbean Community (CARICOM) Secretariat recently wrote to the European Commission (EC) regarding President Jagdeo's intention to sign a "goods only" Economic Partnership Agreement with that trading block come October 15.
Financial analyst Ralston Hyman, speaking on the state of the Jamaican economy, chastised the government for being slow to inform the nation about the serious issue that has become global. Hyman said, "With no disrespect, but for the Finance Minister Audley Shaw to be telling us that nothing will happen to Jamaica is ridiculous," at a forum at the Jamaica Confederation of Trade Unions (JCTU) Headquarters. Hyman added that the US financial crisis was already affecting living conditions in Jamaica in terms of oil and food prices. The Jamaica Gleaner reported that the financial analyst said the Government was in a state of denial, as consumers' purchasing power was on the decline. Darron Thomas, expert on the financial market and competition policy, told the forum that it was the type of loans issued on mortgages that compounded the financial meltdown in the US. He said that most mortgage loans were used for consumption such as buying motor vehicles and not for business investments, which would have been a better approach.
Finance Minister Audley Shaw said earlier this week that it will have minimal impact but Golding, in an address to the Jamaica Manufacturers Association on Thursday night, said the global financial crisis will affect some of Jamaica's critical economic structures.  The Jamaica Gleaner
reported that Golding said his budget was vulnerable as it
was predicated on securing US250 million (JA$1.8 billion) from
the external market, but the market is currently gasping for
life He added, "The forecast for market conditions at this stage is uncertain, given the liquidity crisis in the capital market." He remains optimistic, however, that the government will secure the funds. He told the businessmen, "Our reputation is strong. The government is currently in discussions with external sources and I have reason to be confident that those funds will be secured." The Gleaner also reported that the Prime Minister also said that Jamaican bonds could be in trouble, but again was wary of expressing pessimism. He said that Jamaican bonds were likely to be affected by low confidence in the world market, the impact could be minimised by the country's strict fiscal controls. Golding for the first time also acknowledged that remittances and tourism were bound to be directly impacted by the crisis, but stood firm that the effects would be less than anticipated. He said that, while remittances would be less than expected, it would still be an improvement over last year's earnings. Remittances record in the region of US$2 billion (J$146 billion) annually, He said likewise, a net decline is not being expected for tourism. He added, " We are not anticipating a net decline because of the strength of our brand, the intensify of our promotional activities and the fact that the cost of air travel should begin to reflect reduced fuel prices which increased 70 percent over the past year." However there will be strong improvement in stopover arrivals, Golding admitted. The Prime Minister was also confident that inflation would taper off in response to declining world prices on the market.
RJR News reports quote Head of the Fraud Squad, Deputy Superintendent Colbert Edwards, as stating that his department was called in last week by the management of the NHT. Edwards did not give any details and RJR quoted sources as saying `desperate` house seekers have been fleeced of millions of dollars by an employee at the Trust.
`I don`t have to turn on the TV. I just have to deal with my clients on a daily basis and I know the economy is shot to pieces,` said Pat Montague, who brokers time on WAVS-AM, a 24-hour Caribbean-programming station located in Davie, Florida. Caribbean radio programmers largely broker time on radio station and are responsible for both the programming on their time slots and the advertising dollars that fund it. WAVS`s largest broker, Hi Class Promotions, has also seen a sharp decline in revenues from businesses connected to the housing industry, Vice-President Winsome Charlton told CWNN this week. Observers have tied the current economic turmoil to sour U.S. mortgages and mortgage-backed securities. But the meltdown is being felt all across the board, even by larger companies such as Cox Radio, Inc. Jerry Rushin, vice-president of WHQT-FM and WEDR-FM, Cox Radio-owned stations located in Hollywood, FL, which caters primarily to a Caribbean and African-American audience, said he has noticed a drop in advertising from retail sales outlets and from the auto industry. During a slump, some companies tend to step up advertising in an attempt to attract more business, he noted. But added Rushin: `Those that do a little extra advertising are offset by those who cut back on advertising.` Donna Mairs, local sales manager at WHQT, said advertisements from national companies - about 20 percent of the station`s business - have fallen off. But the station is hanging onto to its local business through customized service, she added. The overall decline in advertising has impacted Caribbean programming more, as the mom-and-pop stores and other small businesses that provide much of its funding struggle to survive, some closing down altogether, said Eddy Edwards, a broker at Miami`s WZAB-AM and host of the Saturday variety show `Caribbean Riddims.` That dries up funding for brokers, forcing them to cut back hours, he said. But South Florida radio executives and entrepreneurs say they are doing what they can to avoid the ultimate cost-cutting measure: layoffs. `I have not as of yet had to lay anyone off, thank God,` said Rushin. Instead, he has trimmed expenditures on office supplies and promotional giveaways such as t-shirts. Lay-offs `are on the table,` but only as a last resort, he said. `I would like to think I could find other moves to make before it got to that,` added Rushin. Montague said she is offsetting her WAVS losses through other enterprises, including her Princess PM Productions, Inc. a Davie-based promotional company. They include marketing promotions, album launches, Caribbean comedy showcases and `Buck Up,` a weekly party which she said showcases the state`s top D.J.`s and which has a steady following of about 200-300 people. Edwards is following suite. His company, Riddims Marketing, has offset its losses with club nights, dances and other special events. `You`ve got to be creative as to how you find revenue,` he said. By Kirk Nelson/CWNN
The Economic Commission on Latin America and the Caribbean said Tuesday it expects growth rates to drop from 4.7 percent this year to 3.5 percent next year. Roberto Machado told the BBC Caribbean that the tourism, trade, remittances and the financial services sector across the region will be largely impacted. The claim comes on a day when the Dow Jones slumped for another consecutive day, this time by over 500 points and as the International Monetary Fund raised its estimate of losses from the global financial crisis to the US banking system to about $1.4 trillion. The US Mortgage Bankers Association also revealed yesterday that US lenders lost an average of $560 on every mortgage written last year. U.S. Federal Reserve Chairman Ben Bernanke says severe upheaval in America's financial sector has further strained an already weak U.S. economy. Bernake also warned of dark days ahead.
The United Nations Development Programme on Monday appealed for funds so it can run projects that would offer jobs to up to 400,000 Haitians whose incomes have disappeared since a series of deadly hurricanes lashed the poor Caribbean country over the past two months. Generating employment is critical to kick-starting Haiti's recovery after the tropical storms, UNDP said, warning that tens of thousands of breadwinners now have no income to support their families. Joel Boutroue, the head of UNDP in Haiti and the Secretary-General's Deputy Special Representative, said it was `an absolute imperative that we act immediately` to create jobs and rehabilitate both infrastructure and the natural environment. `Without a concerted effort of the international community and financial contributions from donors, we're going to see more poverty, suffering and social instability,` Boutroue said. In the northern city of Gonaïves, hit hardest by the hurricanes, UNDP said a $3 million watershed management programme that before the storms employed 7,000 people could resume in one to three weeks. Under the programme, locals built dikes and water walls, planted trees to protect against landslides and carried out activities to preserve agriculture in the face of natural disasters. Hundreds of thousands of people across Haiti are receiving humanitarian support from UN aid agencies in the wake of hurricanes Fay, Gustav, Hanna and Ike, which struck the country in quick succession between mid-August and early September.
A stroll down one main avenue in Brooklyn finds struggling entrepreneurs who are undoubtedly among Caribbean Americans in the U.S. facing economic hard times. `It`s a struggle,` said Frantz Moise, a retailer originally from Haiti. `I know the stuff that sells but I can`t bring them in as I would like to. If revenues not coming in you can`t buy stuff.` Moise, who works part time and runs a booth in the Flatbush Canton Market in Brooklyn, said he survives through the support of the market`s managers and his retail neighbors. They meet regularly to discuss ways to improve business in the market. The Haitian migrant said he supports the U.S. government`s plans to relieve the burden of some of the major creditors on Wall Street, whose failure, the Bush administration and members of Congress said, could spell further economic dire straits. `If they`re spending $600 million a day in Iraq,` said Moise. `They might as well take a chance with $700 billion for us.` Jamaican Patricia Wilson, who runs Salon Selective Beauty Salon on Church Street in Brooklyn, said she`s unable to support a full cadre of staff and she`s definitely seen a decline in revenue. Gesturing around her salon, Wilson summed it up accurately: `We have chairs we cannot fill because we don`t have customers. They don`t have money to come.` But she insists that entrepreneurs have no choice but to ride out the storm. `It`s not that we have assets or capital stacked away,` she said. `We have to keep going, hoping for things to get better.` Bernard Edwards, who helps his sister Marilyn Fraser run Remarkable Flavors Jamaican Restaurant and Bakery not far from Wilson`s salon, revealed they were forced to let go of some employees and drastically cut the hours of the others. This means a larger physical burden for the brother and sister team. `We have to spend more time here personally,` said Edwards. `We have to work harder.` The Caribbean American Chamber of Commerce and Industry is reaching out to small business owners grappling with the economic crisis. It`s holding a small business `community conversation` today at the Flatbush Canton Market on the corner of Flatbush and Canton avenues. CACCI president Roy Hastick said the crisis has caused business closures, staff lay-offs and a fall in retail sales among the Caribbean business community, but he sees a positive side to the problem. `Many businesses are talking with each other to combine their resources and to look at new areas of business, particularly with their Caribbean counterparts. CACCI has been encouraging this development,` said Hastick. But he remains optimistic. `CACCI is confident that Caribbean American businesses, which are meeting very tough times now, will return to normalcy and pave their way to growth and prosperity - sooner rather than later.` he added. The comment comes as U.S. Senators approved the controversial bailout bill, sending it back to the House for another vote. By Erline Andrews/CWN
That's according to recent data from the Pew Hispanic Center. The organization this week released a report that claims the crisis has taken a far greater toll on non-citizen immigrants than the United States population as a whole. The median annual income of non-citizen immigrant households fell 7.3 percent from 2006 to 2007. In contrast, the median annual income of all U.S. households increased 1.3 percent during the same period. From 2006 to 2007, incomes fell the most for non-citizen households headed by Hispanics; immigrants from Mexico, other Latin American countries and the Caribbean. It is also affecting the recently arrived, particularly men, either unmarried or with no spouse present; those without a high school education; and those in construction, production or service occupations. The majority, 56 of non-citizen households are Hispanic and account for a significant percentage of the blue collar work force. And nearly half or 45 percent of this households are headed by an undocumented immigrant, Pew research claims. The analysis is based on data from the Current Population Survey, a monthly survey of about 55,000 U.S. households conducted by the Census Bureau for the Bureau of Labor Statistics.
For the first time this decade, remittances to the Caribbean and Latin America are expected to decline due to the combined effects of economic downturns in the United States, inflation and a weaker dollar, analysts of the Inter-American Development Bank`s Multilateral Investment Fund said Wednesday. Officials insist that according to an analysis of recent remittance data, while migrants from Latin America and the Caribbean will send some $67.5 billion to their homelands in 2008, against $66.5 billion in 2007, this year's total will be worth 1.7 percent less than the total sent in 2007. This will be the first decrease in the value of remittances to Latin America and the Caribbean since the MIF started tracking these flows in the year 2000. Until last year, remittances to the region had grown by double digits every year. IDB analysts' also cite higher unemployment rates among migrant workers in the U.S. as one of the factors in the forecasted decline. These new estimates are based on monthly and quarterly data from nine Latin American central banks in countries that receive about 88.5 percent of the remittances flowing to this region. The Caribbean region alone received over 2 billion in remittances last year alone. Earlier this year the MIF had noted that remittances to many major countries in the Americas were on a decline. Notwithstanding this slowdown, however, the volume of remittances to Latin America and the Caribbean still outstrips all the overseas development aid and foreign direct investment in this region, MIF officials said. `Remittances are and will continue to be a vital lifeline for millions of households,` the statement added. Previous MIF studies have highlighted how, throughout this decade, remittances have been more stable than other currency flows, including tourism in many Caribbean nations. The impact of remittances will be a subject of discussion at the upcoming annual Inter-American Microenterprise Forum to be held in Asuncion, Paraguay from October 8-10.
Doing Business 2009, the sixth in a series of annual reports published by IFC and the World Bank, identifies 239 reforms between June 2007 and June 2008 that make it easier to do business in 113 economies globally. But in the Caribbean, such reforms occurred in only five countries. Antigua and Barbuda reduced its corporate income tax rate from 30 to 25 percent over the period while the Dominican Republic set up an online system for filing and paying taxes while allowing entrepreneurs to complete several start-up formalities online. The Dominican Republic also reduced the corporate income tax rate from 29 to 25 percent and abolished several taxes, including the stamp duty. In addition, authorities reduced the time to export by three days by improving the online portal for customs documentation and payment. Struggling Haiti actually reduced the time to export by a day, by implementing risk-based inspections in customs while Jamaica introduced a statutory time limit for issuing building permits, reducing the time required to build a warehouse by 80 days. It also reduced the property transfer tax from 7.5 to 6 percent and the stamp duty from 5.5 to 4.5 percent of the property value. In St. Vincent and the Grenadines, the corporate tax rate was reduced from 40 to 37.5 percent while the country also enacted a bankruptcy law, its first set of rules regulating the bankruptcy of private enterprises. In contrast, no major reforms were recorded in all other the other Caribbean nations, including the Bahamas, Belize, Dominica, Grenada, Guyana, Puerto Rico, St. Lucia, St. Kitts and Nevis, Suriname and Trinidad and Tobago.
'Doing Business 2009', the sixth in an annual series of reports published by the International Finance Corporation (IFC) and the World Bank, identified Jamaica, the Dominican Republic, St Vincent and the Grenadines, Haiti and Antigua and Barbuda as Caribbean countries becoming active reformers of business regulation. "Regulatory reforms are gaining momentum worldwide, and Latin America and the Caribbean region are part of this trend," it said. "Countries in Latin America and the Caribbean are increasingly committed to reform agendas," added Sylvia Solf, lead author of the report. "The region's most popular area for regulatory reform continues to be facilitating trade, followed by changes that make it easier to start a business." The Dominican Republic joined the top 10 economies in reforming business regulation for the first time this year, with gains in four of the 10 areas the report studied, including broad tax reforms. That country made progress in reforms to starting a business, registering property, paying taxes and trading across borders. The others also implemented significant reforms that make it easier to do business, the report said. Antigua and Barbuda as well as St Vincent and the Grenadines reduced their corporate income tax rate, while the latter also introduced a value-added tax to replace several existing taxes and enacted a bankruptcy law, its first set of rules regulating the bankruptcy of private enterprises. Haiti reduced the time taken to export by implementing risk-based inspections in customs, and Jamaica introduced a statutory time limit for issuing building permits and reduced the property transfer tax. The report said that in the other nine Caribbean countries studied - the Bahamas, Belize, Dominica, Grenada, Guyana, St Kitts and Nevis, St Lucia, Suriname and Trinidad and Tobago - no major reforms were recorded. "Economies need rules that are efficient, easy to use, and accessible to all who have to use them. Otherwise, businesses get trapped in the unregulated, informal economy where they have less access to finance and hire fewer workers, and where workers lack the protection of labor law," said Michael Klein, the World Bank/IFC Vice President for Financial and Private Sector Development. The 'Doing Business 2009' report ranks 181 economies on the overall ease of doing business based on analyses done between June 2007 and June 2008. It positions countries based on 10 indicators of business regulation that track the time and cost to meet government requirements in starting and operating a business, trading across borders, paying taxes, and closing a business. The rankings do not reflect such areas as macroeconomic policy, quality of infrastructure, currency volatility, investor perceptions or crime rates.
 GEORGETOWN,
Guyana, September 10, 2008: Guyana's President Bharrat Jagdeo
says that the country's economy is doing well in spite of the
shocks it has experienced, especially from recent high oil and
food prices."We've had to absorb this huge increase without a dramatic change in our fiscal deficit and we have done so largely because of some creative ways of increasing revenue and cutting other expenditure," he said at the official opening of a Republic Bank branch in Camp Street, Georgetown earlier this week. "Then, on the balance of payment side, this has been a huge increase in the balance of payment - a higher burden on the balance of payment - but in spite of that, you've seen that all the macro-economic variables, its still very stable, even inflation rate remains reasonably within the target range." Echoing the sentiments of the President at the official opening the Managing Director of Republic Bank Guyana, Edwin Gooding, said the bank's expansion is testimony to the confidence the institution has in the country's economy. The official also made public the bank's intention to continue expanding to other regions of the country. A release from the Guyana Information Agency (GINA) said that other financial institutions have also recently displayed their confidence in the economy through huge financial investments and expansions. It pointed out that the Guyana Bank for Trade and Industry (GBTI) is currently constructing its new headquarters in Kingston, in the capital city, while Demerara Bank recently opened a new branch of its facility in Corriverton. President Jagdeo also said that a number of large-scale investments were being "worked on" and would be revealed in due course.
Thirteen of the 15 member countries of the CARIFORUM group (CARICOM plus Dominican Republic) have agreed to sign off on the EPA concluded with the EU. Guyana and Haiti have decided against being on board for a signing ceremony with the EU in Barbados, likely in early October
for different reasons. This was the major outcome of yesterday's special summit called to forge a common position on a signing date for the EPA. Guyana stuck with its decision to sign a "trade in goods only" segment of the agreement and Haiti withholding commitment to a signing date at this time, and the other 13 countries agreeing to participate in the proposed signing ceremony next month. Those so committed are: Dominican Republic; Jamaica, Trinidad and Tobago, Barbados (host for the special summit and expected venue for the formal signing event); Suriname; St. Vincent and the Grenadines; Dominica, Antigua and Barbuda; St. Kitts and Nevis, The Bahamas, Belize as well as Grenada and St Lucia. The latter two had earlier stated they were not ready to sign but reversed that stand. At separate media briefings in Barbados yesterday, both Guyana's President Bharrat Jagdeo and the Prime Ministers of Jamaica (Bruce Golding) and Barbados (David Thompson) made conscious efforts to downplay the failure to reach a consensus on a collective sign off on the EPA and stressed "respect for the sovereign right" of member states to determine what they regard as being in their best interest. At the same time they expressed regret that having negotiated collectively as CARIFORUM and concluded negotiations together, they could not have reached a common position to sign off on the EPA together. President Jagdeo said some of his colleagues explained that they had arrived for the meeting with mandates from either their cabinets or parliament; and so far as Guyana was concerned, he had a "consensus mandate" from a national consultation of stakeholders as well as his cabinet and while he was not opposed to a compromise, he could not vary from "a fundamental position" that his government had been promoting. GOING IT ALONE President Jagdeo, who single-handedly continues to oppose the EC on the agreement, had earlier (prior to yesterday's meeting) indicated he is willing to "go it alone" if his colleagues were not in support of his "goods only" proposal. The Guyanese head of state, who has led opposition to the accord, told regional media, before the opening of the conference at the Sherbourne Conference Centre in Barbados, that while he is willing to hear the arguments from his fellow leaders, his position is that signing a full EPA would not be the best option for the region. He said his suggestion for a "goods only" deal with Europe could work if the leaders took time to explore that option. "Should we not try to create some space for ourselves to pause and reconsider this? Is that too much to ask?" President Jagdeo questioned. "I don't feel that a consensus has to be built around only what Heads feel. We should look at the other voices in our regionpause and take more time and have an open debate on it. Europe can't bring the sanctions against us if we collectively pause." Asked what his course of action would be if he did not get support for that approach, Mr. Jagdeo replied: "Sometimes you have to go it alone." But St. Vincent and the Grenadines Prime Minister, Dr Ralph Gonsalves, said it was likely that Guyana would eventually support the entire EPA package. He said that Jagdeo's "goods only" option, which one African nation has already signed with the European Union (EU) was not being offered to CARIFORUM CARICOM and the Dominican Republic which initialled the deal last December. "I believe that however difficult it may be for a host of reasons for President Jagdeo, that he will probably sign. I'm a practical man of affairs and I believe that the Guyana government also consists of practical men and women of affairs, although that is not to say that a number of their concerns are not valid." "I don't think that it's an issue today of seeking to persuade anybody. Government is not a continuing university seminar. All the arguments have been canvassed and decisions have to be made. I'm hoping that today we will focus largely on implementation, the modalities for implementation, the question of what are the issues which we will tick off for review and set the process in place for those things."  Barbados Prime Minister David Thompson, who had written to the CARICOM chairman requesting the special meeting, insisted that President Jagdeo's call for leaders to hold strain on signing a full EPA should not be answered. "I have paused for six months since coming into office," said Thompson, whose Democratic Labour Party (DLP) took over the government in mid January. "We have had our national consultations, we have been to regional consultations, there have been no less than three Heads of Government meetings on various issues, but they have been discussions during those meetings relative to the EPA, and I think the time for pausing has ended," he contended. "Pausing will only end up being defeat by time in his particular instance," Thompson added. Prime Minister Bruce Golding of Jamaica, who has long said his country was prepared to sign the agreement, has also dismissed suggestions that the deal be re-negotiated. He said the region would risk putting itself in a less favourable position if it approached the EU to reconsider the details of the deal. "If we re-open the negotiations the issues that will be reopened are not just the ones that we are concerned about. The Europeans are going to want to list their items as well for reopening and I don't think we want to go into that mulberry bush again," Golding said. Amidst the differences of opinions, CARICOM Secretary General Edwin Carrington said he was hopeful that leaders would reach a common position at the end of their talks. The CARIFORUM Economic Partnership Agreement (EPA) was initialled last December under extreme pressure of time and the threat of imposition of punitive tariffs on Caribbean exports in EU markets. In the past nine months this 1,000 plus-page agreement has been examined closely, and found wanting in several respects. Mr. Norman Girvan, a former Secretary General of the Association of Caribbean States, holds firm that every effort needs to be made to fix the problematic features before the agreement is legally cast in stone. "There is an enormous pressure to sign. The argument is that further delay will jeopardise access to European money and European markets. But it would be a grave error to sign a disadvantageous agreement, legally binding and of indefinite duration, because of promises and threats," Girvan wrote in a Jamaica Gleaner article reprinted Tuesday in this newspaper. Sir Shridath Ramphal, former Commonwealth Secretary General, at a national consultations on agreement held here last Friday, warned that signing the EPA in its present form is both "premature" and "reckless", noting that while "whistling in the dark is sometimes understandable; signing in the dark is positively reckless" "Our only response now must be a collective one," Ramphal had declared. "Let us collectively put signing on hold until after the African, Caribbean and Pacific (ACP) countries Summit in Accra. Then let us, with the rest of the ACP, re-engage Europe. We do want an EPA but the right agreement. The EU needs the six EPAs even more than any one Region needs it," he told the distinguished gathering. "Do not let us sell ourselves short. There will be threats of many kinds and at many levels but if we have unity among ourselves in the Caribbean and the rest of the ACP, I am certain we will prevail, if not, the birth aims of the Caribbean EPA could foretell an anguish partnership and shatter Caribbean dreams," Sir Shridath noted.
Rice made the reiteration in Morroco as she continued her visit to Africa. `What we cannot do is to have the transfer of power from one dictatorial regime to another. That is not acceptable in a Western hemisphere that is democratic, and it is not acceptable for the Cuban people. And so, I don't think that, in the context that we see now, that a lifting of the embargo would be wise,` she said in response to a reporter`s question on whether the Bush administration would consider a call from Havana to lift the embargo. The Foreign Ministry in Havana said the U.S. should end its economic embargo against the island if it really wants to help Cuba and not merely offer aid through non-governmental organizations. But Rice added that President Bush has made it clear that the United States would be responsive to a Cuban regime that was prepared to release political prisoners and have a process to get to free and fair elections. Hurricane Hannah slammed into Cuba last week while Hurricane Ike made land fall last night and is forecasted to cause tremendous flooding and damage. The United States Embargo Against Cuba was imposed on the Castro government on February 7, 1962.
"There has been a significant slowing down of growth in international economies but we [the local economy] have continued to grow. Perhaps not at the level of growth rates we would like, but given the current climate, any growth rate above zero is quite good and we are...averaging about three percent," said former Financial Secretary Wendell Lawrence. He indicated that the continued diversification of the economy and other government policies targeting business growth as well as the empowerment of citizens have had a stabilising effect. "We have had a sugar monoculture for many years and much of our resources were tied up in sugar production," Mr Lawrence said. "To the extent that we have been able to move out of sugar without having gone into a recession is indicative of the fact that key stakeholders in the private sector have been responding to the challenges," he added, citing factors such as the general increase in the price of oil, rising food costs and a worsening credit crisis. The latest global trends have many economists worried. The Organisation for Economic Development (OECD) has predicted that the British economy will likely fall into recession this year and the largest economies on continental Europe will not fare much better. This is supported by data from the Statistical Office of the European Communities (Eurostat) which shows that the economy of Eurozone is shrinking, and for the first time in nine years, the gross domestic product (GDP) of the 15 member countries sunk by 0.2 per cent in the second quarter of 2008. A recession occurs when real GDP growth is negative for two or more consecutive quarters. The Eurozone, which is the world's largest economy, was created in 1999 and refers to the currency union among the European Union member states that have adopted the euro as their sole official currency. Mr Lawrence stated that local government has done a good job in establishing a broad framework for growth in the Federation and he credited the private sector for positioning itself to seize the opportunities of the new economy. This new economy is based largely on tourism, financial services, construction and information communication technology. He added that if successful, current efforts to get more locals into commercial agricultural production will help to reduce the impact of external shocks on the economy. However he gave a note of caution was given for stakeholders to make smart decisions. "In the context of a small island, the real risk we face is that nobody knows...how long the global economic slowdown will continue and while we have been spared the brunt of it, if it continues for a prolonged period, it could begin to have a significant impact on us," the former finance official said.
In its 2007 annual report, the Barbados-based regional institution reported inflation due to rising oil and commodity prices, slower growth by major trading partners, depreciation of the United States dollar, and the high cost of intraregional travel, which topped the list of problems facing the region. "As a result of these developments, regional growth was slower in 2007 than in 2006. The winding down of activity in the construction sector, generally slower growth in tourist arrivals, and a deceleration in agriculture output due to hurricane activity all contributed to the loss of regional growth momentum," the CDB report pointed out. The financial institution noted that for the Caribbean as a whole, the economic growth rate fell from 6.9 per cent in 2006 to 3.9 per cent in 2007. "Of the 13 CARICOM countries for which information is available, economic growth slowed in nine, and only in four did economic growth rates accelerate or remain constant. Deceleration was most pronounced in Antigua and Barbuda, Dominica, St Vincent and the Grenadines, and Trinidad and Tobago," the report added. While explaining that Antigua and Barbuda and St Vincent and the Grenadines implemented transaction-based taxes in order to broaden their tax base, the CDB stressed that in context of slowing economic growth in 2007, regional revenue collections could not keep pace with rising recurrent expenditures on wages and salaries, subsidies and goods and services. The bank added: "Growth in capital spending abated somewhat during the year as projects neared completion, but deteriorating current account balances led to a widening in overall fiscal deficits." (GE)
He said the region can then signal its intention to continue negotiations on the other issues, including competition policy, Singapore, trade facilitation and government procurement, which he opined as the best position for the region. The Barbados meeting will discuss the possible signing of the agreement. President Jagdeo, who single-handedly continues to oppose the EC on the agreement, told reporters at a news conference he hosted following a lively plenary discussion he would also urge his fellow Heads in the region to "open up" just as Guyana has done, meaning they too should initiate the holding of national consultations in their respective countries. It is his view that
should the region face the EU on the issue with a collective
voice, Mr. Karl-Friedrich Falkenberg, Deputy Director General of Trade, European Commission, will have to listen. The national consultation, at the Guyana International Conference Centre, Liliendaal, East Coast of Demerara, which saw the coming together of countrywide representation from civil society, the private sector, farmers' organizations, labour unions, churches, the indigenous community, and those with constituencies, among others, served to educate the populace about the agreement, in addition to helping clarify some issues of the agreement. Presenting topics at the forum were Falkenberg; Mr. Henry Gill, Director General, Caribbean Regional Negotiating Machinery (CRNM); Sir Shridath Ramphal; Dr Shantal Munro-Knight; Sir Ron Saunders; Dr Roger Hosein of the University of the West Indies; Dr Clive Thomas; Ms. Emily Jones; Dr Chris Stevens; and the President who gave the welcome and opening address. The agreement, a comprehensive one, contains several provisions which would harm the region, the President stressed, noting that the people of the region, including civil society and the opposition parties, have not had enough time to familiarise themselves with the agreement which would have far-reaching implications for the societies of the region, the way of life, the way business is conducted and the much-touted CSME. And, according to the president, the EU needs to allow people of the region time to study the agreement. "We therefore need to heed this voice and give enough time for people to study the agreement and its implications," he said, reiterating that the best position for the region is committing to sign the 'Goods Only' clause, with a provision that is more easily understood. The President said he has heard varying comments on the EPA from many of the region's heads of government, and opined that their characterization of the persons opposed to the blueprint is not fair. It is not that they are not stuck in an old time warp as some may tend to believe, but that persons like Dr Havelock Brewster, Dr Thomas, Norman Girvan and Sir Shridath Ramphal, all opposed, are knowledgeable and have been involved in trade negotiations for over four decades. They have in addition, perused the agreement and studied the implications. On this note, the President remarked, "When we ignore the voices of our own people and we rush to sign this agreement, we do so at our own peril," adding, he feels "some of the countries are taking a leap of faith". Noting that the signing of the agreement was delayed twice because of Guyana's opposition to it, the President, taking a swipe at the Caribbean Regional Negotiating Machinery, said it has been "parroting the EC". The CRNM was created by the Caribbean Community (CARICOM) Governments to develop, coordinate and execute an overall negotiating strategy for various external trade negotiations in which the Region is involved. It has responsibility for developing and maintaining a cohesive and effective framework for the coordination and management of the Caribbean Region's negotiating resources and expertise. Jagdeo was at pains to explain that by signing on to the EPA, which the EC is pressuring the regional countries to do, the regional heads would be getting into something that would undermine the regional integration enterprise to which regional countries have pledged their support and commitment; it would destroy the Common External Tariff, in addition to setting up the basis for destruction of the much-touted CSME.
Those were the words of Sir Shridath Ramphal at the opening yesterday of the two-day national consultation on the controversial Economic Partnership Agreement (EPA) at the Guyana International Conference Centre, Liliendaal, East Coast Demerara. 'The EPA will become something of a benchmark agreement for everything we do with anyone else. We will have no choice but to grant the same concessions to Canada and the United States and to any other with whom agreements will subsequently be negotiated...therefore let us understand clearly, this is an agreement with the world. It is a global giveaway reciprocity for all' "Let us collectively put signing on hold until after the African, Caribbean and Pacific (ACP) countries Summit in Accra. Then let us, with the rest of the ACP, re-engage Europe. We do want an EPA but the right agreement. The EU needs the six EPAs even more than any one Region needs it," he told the distinguished gathering. "Do not let us sell ourselves short. There will be threats of many kinds and at many levels but if we have unity among ourselves in the Caribbean and the rest of the ACP, I am certain we will prevail, if not, the birth aims of the Caribbean EPA could foretell an anguish partnership and shatter Caribbean dreams," he noted. The much-anticipated forum seeks to allow representatives of the private sector, organised labour, religious bodies and producers of agricultural products as well as members of the academia among others to hear from presenters about the proposed pact and air their views and concerns. The two-day deliberation
will precede a special summit of CARICOM Heads of Government
in Barbados on September 10 against the backdrop of different
opinions on the signing from some regional heads. He recalled that the ACP was conceived in Brussels by the Caribbean and born 33 years ago in Georgetown. "The Georgetown Accord is its charter. The Caribbean should be its charter," he noted. He said the ACP would coordinate negotiating positions and not leave themselves expose as separate regional groups. "They would not allow the old European policy of 'divide and rule' to prevail once morethe ACP meets on October 2 in Ghana and the EPAs are on the agenda," he said. "Can we not wait for the opportunity to review with our brothers; to hear their views at the highest level; share ours with them; develop a joint strategy for dealing with Europe as we promised ourselves," Ramphal reminded. "Are we going to foreclose the option within weeks of our meeting with them by signing (the Caribbean) EPA. Is our partnership with Europe now more special than our bonds with Africa?" he questioned. "ACP solidarity is not an abstract conceptat the end of the Lome negotiations it was Africa's solidarity with the Caribbean; Africa refusing to accept the completion of the Lome Convention if Europe did not settle with the Caribbean upright. Without that solidarity by now the rum industry in Guyana would probably be dead," he emphasised. In his presentation, Ramphal also noted that when the EPA was initial by the Director General of the Regional Negotiating Machinery (RNM) and EU representative; he was not committing the CARICOM countries or CARICOM itself to sign an EPA in those terms. "By that act of initialling, Caribbean countries or CARICOM did not become obliged under international law, treaty law or WTO rules to sign the EPA in that form," he noted. "Their consent 'to be bound' requires a further policy decision and a further formal step in this case signature. Moreover, they are not precluded by international law from renegotiating that initialled agreement or signing a part of EPA," he stated. He stated this is clear from general international law and more specifically from the 1970 Vienna Convention on the laws of Treaties. "There is no one option here for the Caribbean or EUI say this because it has been suggested that since 'we' have initialled the EPA, governments somehow are obliged to sign the initialled text. That is simply wrong and too many have taken refuge in this misconception implying that we have to do the right thing and sign when to sign this agreement in its present form may of course be the wrong thing for generations of West Indians," he pointed out. "When we came to the final stage of the Cotonou negotiation we had to look at all the options and we did. We had to look at all the options because one option we wanted to keep opened was that there might not be an EPA at all and it is provided for in the Cotonou agreement what will happen," he noted. Referring to an article of the agreement, he quoted: "in that event, the EU will examine all alternative possibilities in order to provide these countries with a new framework for trade which is equivalent to their existing situation and in conformity with WTO rules." Ramphal also noted that if there is a mantra that is recited throughout the EPA, it is reciprocity. "In fact, it is made the credo of the EPA," he asserted. "The Caribbean, the ACP have long fought for proportionality. It was at the heart of the Lome experience. It is the root for the call for special and differential treatment for developing countries," he observed. "It is absolutely central as a principle of fairness that requires movement towards proportionality by special developmental measures in trade agreements between rich and poor countries but reciprocity has trump development in the EPA," he went on. "The EPA will become something of a benchmark agreement for everything we do with anyone else. We will have no choice but to grant the same concessions to Canada and the United States and to any other with whom agreements will subsequently be negotiated." "Therefore, let us understand clearly, this is an agreement with the world. It is a global giveaway reciprocity for all...," he cautioned. "At the very least therefore, signing on to this EPA is premature. Whistling in the dark is sometimes understandable; signing in the dark is positively recklessthis EPA is of indefinite duration forever," he lamented. "The Minister of Foreign Affairs in Jamaica said recently that he has found an exit strategy: denunciationhe did not say whether the EU shares that view or whether Europe itself has an exit strategy." "But is this what Guyana is being invited to do to go through a marriage ceremony contemplating divorce," Ramphal asked.
One of his major concerns is the issue of regional integration, he told the gathering, in the opening address at the International Conference Centre, Liliendaal, East Coast Demerara. The forum gathered representatives of the private sector, religious bodies, and the agriculture sector, among others, to hear presentations about the proposed covenant and air their views on it. The deliberation will precede a special summit of CARICOM Heads of Government in Barbados on Wednesday, against the background of different opinions from some regional heads. "The one that bothers me the most is the point that has been made, that this agreement will conflict with our regional integration efforts," President Jagdeo confessed. He noted that each of the countries has negotiated a different liberalisation schedule with the European Union (EU), as part of the deal. "It means that we are not going to have a common external tariff until the full implementation of this agreementI thought a common external tariff is an essential part of our regional integration effort," the Head of State and Government posited. President Jagdeo wondered if any provisions within the EPA would conflict with the revised Treaty of Chaguaramas. He said: "I notice, in the agreement, it speaks about the agreement relationship with the International Monetary Fund (IMF) and with the Cotonou Agreement. But this is a glaring omission that we can define this agreement in its relationship to the IMF, World Trade Organisation (WTO) and Cotonou Agreement but we have not defined it in relation to the revised Treaty of Chaguaramas which is our own indigenous effort at regional integration." "And then we had to, in this agreement, negotiate issues that we have not even negotiated among ourselves as yet," Mr. Jagdeo remarked. He questioned whether the EPA can be WTO compatible without including the Singapore issues and why the rush to have the former concluded. "The key issue is, have we decided? Because I assume that, for us to develop negotiating positions, we have to look at the implication of this agreement for broader trade agreement with the rest of the world," President Jagdeo said. He worried if the implications of such strong commitments have been examined. "This is so fundamental that we get it right because of its impact on the region and our countries that we owe it to ourselves and people that we explore these matters fully in this consultation," President Jagdeo acknowledged. He said: "We have much to lose since we are among the largest exporters, among CARICOM countries, to the EU, in the form of rice, sugar and rum." "There are some broad concerns that I hope the people who negotiated this agreement for both sides will seek to address because we have seen a lot of issues raised and much documentation coming out from both the Caribbean Regional Negotiating Machinery (CRNM) and the commission itself on various issues," the President cautioned. Indefinite duration "We agree that we have to have an agreement with the EU, an agreement that is WTO compatible but not any agreement," he reiterated, citing the indefinite duration of it. "The EPA is of indefinite duration but we, in Guyana, have a lot of experience with agreements of indefinite duration with the EU," President Jagdeo noted. He said one such was the sugar protocol but it was unilaterally repudiated by the EU. "The Cotonou
Agreement said that you should have both compatibility and reservation
of the benefits but we have seen a lot of focus on the WTO compatible
but very little on preservation of benefits and we can argue
that our access of duty free or quota free is a preservation
of benefits," President Jagdeo offered. He went on: "But, with the way it is going now, we are sure there will be significant preference erosion, because it seems as though everyone under the sun will get a similar agreement, at least small developing countries and this will erode our position in this market." "We have a history that we are not very comfortable with especially in Guyana's case. We have seen it with the sugar protocol. Even when we requested that studies be done to look at the impact of the changes that were being made to the sugar protocol, our requests were ignored," President Jagdeo remembered. Continuing, he said: "Many documents were done within the European Commission and then we got them through leaks but, with something as critical as sugar for Guyana, we had a bad experience. "We all recognise that we are unequal partners in negotiations in this bargaining for the EPAwe are asking to maintain preferences and for development assistance from EU. He informed that "on the other hand, they have some funds on the European Development Fund (EDF) and they are saying if you do not conclude this by a particular date, there will be tariffs on your exports into Europe." "So, in that kind of arrangement, if you are on trade union terms, you will say it was bargaining under duress," Mr. Jagdeo reasoned. He said this bothers his administration, because, had it not been for their unequal bargaining power and the threat of generalised system of preferences (GSP), many countries would not have initialled the document. President Jagdeo said: "We have not had a social impact assessment done. What I find very strange is that they are always asked to do, in every single multilateral engagement when we engage with the IMF and World Bank, we always ask to look at the social impact of policy change but, in this case, we have very little done." He maintained: "we do not know, until now, how this agreement will impact on our people. The only analysis that I have seen recently is by the International Food Policy Research Institute." Additional funds "We have been told often that there will be additional funds but most people have argued that there is very little additional funding and, maybe today, you can tell us about how much new money is put into this agreement and how much are we going to get from the aid for trade and whether it is new money coming out of Europe," President Jagdeo said. "We have heard a lot of talk about developmentwe would like to hear, specifically, how many resources, in terms of technology transfer, finances and technical assistance, will come to this region, in specific terms to our private sector, to change their production capacity," he probed. Deputy Director General of Trade, European Commission, Mr. Karl-Friedrich Falkenburg, in his presentation, said: "If we have been so one-sided in the negotiation and, if the motivation for the EU had really been simply to conquer the market and to crush any economic activity in the region, we would have done a very, very poor job, because of our relationship with 450 millions top economies in the world." He said it was made clear that the EPA is firmly part of the Cotonou Agreement and, therefore, it has a very clear developmental objective. "What we have tried, together in this agreement, is to see what is it that a trade agreement can contribute to development. "We continue to be committed to helping the private sectorupgrading the human resources in our partner regions in the CARIFORUM also and we have identified, on the Cotonou, additional resources that we would be putting into the implementation efforts of EPA," Falkenburg explained. He said: "We thought that the heart of a development approach of the EPA was precisely not the issue of trade and goodsthe novelty that we want to bring into this EPA is to look at what is necessary to create more employment, new opportunities, attract investments and businesses into the region and make the region effectively handle the supply side constraints that exist today." Falkenburg observed that there is a growing recognition that the conditions in doing business are important in defining opportunities and attractiveness of different regions. "We are strengtheningnot undermining in what we are doing," he assured. "We have stated that we want to take the existing regional integration system into account in our negotiations. That is one of the reasons why we did not continue to move on an all African, Caribbean and Pacific (ACP) level in this EPA negotiationwe have to be able to work with individual regions to do them justice," Falkenburg stated. "In many regards, this outcome is not perfectbut I would have liked there to be a completely integrated regional offer. I did push and spent three years arguing for a single offer from the CARIFORUM regionI had to accept that I have to give time to this process but I do believe that we are strengthening and not undermining in what we are doing," he admitted. Alluding to the duration of the agreement, Falkenburg said, like other indefinite agreements, there are denunciation clauses. "I, genuinely, do believe that we have made every effort to make sure that we are effectively building on the existing regional integrationwe are strengthening strengthening, we have achieved," he contended. Falkenburg said the fact that the Dominican Republic has been kept on board gives the EU the potential of creating a larger regional market. "but we have recognised the Caribbean Single Market and Economy (CSME) realities in the agreementChaguaramas is taken into account in the agreement," he said. Falkenburg confirmed that there is not going to be any liberalisation on the CARIFORUM signing before January 1, 2011.
Caribbean Community (Caricom) leaders are expected to meet in Barbados on September 10 to discuss the concerns of some member states which have categorised the EPA as a bad deal. At the same time, six groups which met here about the EPA recently said they were unhappy that the government was going ahead with the signing without full public discussion on the matter and called for an immediate review of the agreement. But McIntyre said there were negative implications for Caricom countries if they did not sign the agreement by the October 31, 2008 deadline. "The EU has just said to me that they have no offensive trade interests in the region at all. We must understand that by October 31 we must sign this agreement. Come November 1, if we do not sign this agreement, we subject all our goods and services to very high tariffs," he told journalists. He said that such a situation would make the region very uncompetitive, adding, "we are already not the most competitive countries in terms of our bananas". McIntyre said he respected the concerns from countries like Guyana and St Lucia on the EPA, but expressed the hope that following the Barbados meeting "all concerns would be ironed out". But representatives from the Dominica National Council on Women, National Fair-trade Organisation, Windward Island Farmers Association, National Working Committee on Trade, Dominica Organic Agricultural Movement, and the Water Front and Allied Workers Union, released a joint statement rejecting the government's approach to the matter. "We are disappointed with the lack of consultation with NGOs and non-state actors," the group said.
The first cheque is for the sum of US$12.5 million (BZ$25 million), being the second installment of a grant for US$25 million (BZ$50 million) for budgetary support for the period 2008-2013. The second cheque is for an amount of US$416,500 (BZ$833,000) for the second stage of a project to enhance the foreign ministries of Central American countries and to promote Foreign Trade and Investments in the region, which was agreed to at the 13th Conference of Foreign Ministers from Central America and Taiwan. Accepting the cheques in his Belmopan office this morning, Prime Minister Barrow, on behalf of the government and people of Belize, expressed gratitude to the government and people of Taiwan and assured the ambassador that all monies received from his country will be appropriately spent and accounted for under this administration.
The increase came in Cuba's so-called "active" debt, on which it pays interest and principal, which rose from $7.8 billion in 2006 to $8.9 billion. Additional official and bank debt accounted for the increase. Cuba's active debt includes around $4.5 billion in official debt owed to other governments, $2.5 billion in supplier debt owed to traders, and bank debt of $1.86 billion owed to foreign financial institutions. Cuba's active debt is comprised of money borrowed since the 1991 collapse of the Soviet Union. Its "inactive" debt is the debt it is not paying interest on and which was built up after Cuba defaulted on its obligations in the 1980s. Cuba reported a $488 million balance of payments surplus in 2007, but higher costs for food and fuel imports this year, and lower prices for its main export, nickel, have led it to seek some restructuring with Japan and other creditors. Cuba is not a member of the International Monetary Fund, World Bank or other multilateral lending institution. Cuba last reported its inactive debt as $7.6 billion in 2006. The central bank said there was little change in that part of the debt, the sources said. Venezuela has replaced the Soviet Union as the leader in supplying oil and finance to Cuba, with China in second place.
The vote for the resolution was unanimous after Opposition MPs walked out when an amendment they proposed, urging a renegotia-tion of the Most Favoured Nation (MFN) clause, was defeated by 28 votes to 16. It was obvious from early that the Opposition would have lost the vote with 12 of its members absent. The government was represented by 28 MPs plus House speaker Delroy Chuck. After tabling the amendment, Opposition spokesman on foreign affairs and foreign trade, Anthony Hylton, urged the government to support it. But Minister of Foreign Affairs and Foreign Trade Dr Kenneth Baugh - who piloted the substantive motion - said that the government had already made its position clear. "I personally was under the impression that the matter was properly elucidated, and that there was no doubt any more that the MFN clause is something that appears in all agreements of this nature. As a matter of fact, even in negotiations taking place now with other FTAs (free trade agreements), the MFN clause is a part of it. On this side of the House we do not feel that there is any need for an amendment," Dr Baugh said. After the walkout, Prime Minister Bruce Golding criticised the action of the Opposition. "I have never, in 36 years of parliamentary experience, seen a walkout where having lost a vote that is sufficient cause to abandon the seats in parliament for which people elected them," Golding observed. The debate started on August 26. The EPA is a new trading regime between CARIFORUM, comprised of members countries of the Caribbean Community plus the Dominican Republic, and the European Union, to replace former preferential agreements.
There is a common misconception that Montserrat has not recovered from the eruption of the Soufriere Hills Volcano in the mid-1990's. Nothing could be further from the truth. Recent renewal and growth on the island has moved from crisis to redevelopment mode. "Montserrat has great opportunities and potential for growth that benefit both the residents of the island as well as investors," said Ernestine Cassell, director of tourism. "As a people, Montserratians have proven to be resilient and have been able to pick up the pieces and re-build. I feel it is a privilege to be involved in the resurgence of the island." A flurry of reconstructive activity has taken place in Montserrat such as the unveiling of a completely new airport in 2005 after an eight year hiatus without one. The island has also welcomed new housing developments, roads and a state-of-the-art cultural center -- this last one driven by famed Sir George Martin, who produced much of the Beatles music, drew many recording stars to his studio on Montserrat and has owned a home on the island for over 27 years. Tourism and business investment opportunities for the future include a golf course, geothermal energy, water bottling, ash manufacturing, condominiums, luxury eco-resorts, marina and safe harbor facility, and agro-processing to complement the tourism and health sectors. A 10 year, four phase project known as the Little Bay Development Project (LBDP) will establish an economic, social, cultural, residential, business and administrative center. This project has been vested with the newly established Montserrat Development Corporation (MDC). The new town of Little Bay, when completed, will be the island's new capital city with a modern city center featuring a yacht marina, deep water harbor facilities, government buildings, shopping facilities, a new museum, recreational spaces, hotels, luxury condominiums and residential housing. While there are new and exciting things happening in Montserrat now, there are greater things in store for the future. "Now is the best time for investors to get involved. In addition to the many development opportunities available, most investors qualify for some form of income tax relief and indirect tax breaks such as removal controls," according to Cassell. With the new developments, diverse cultural heritage and unique activities, Montserrat continues to exude the natural beauty, tranquility and exclusivity that once drew such celebrities as Elton John, Paul McCartney and Jimmy Buffet to the island. The northern part of the island, once the drier, more barren land, is now green with homegrown produce and increasingly busy with commerce. The island's reefs are undisturbed and unexplored caves have been discovered under the island for divers. The private villas, once the secret hideaways of the rich and famous, are hanging up their hammocks for business, as family-owned hotels, charming guesthouses and bed & breakfasts readily welcome visitors with warm Caribbean hospitality. Montserrat, a lush green and mountainous island of approximately 39 square miles, lies in the Eastern Caribbean chain of islands. Known fondly as the "Emerald Isle" of the Caribbean, this pear-shaped island is a traveler's paradise for nature lovers, divers, adventurers, family and villa vacationers, and honeymooners. The former capital city, Plymouth, lies buried in volcanic ash, a transformation that likens this British overseas territory to a modern day Pompeii, while in contrast, the rest of the island flourishes, boasting green mountains, world-class nature trails, deserted dark sand beaches, untouched reefs and a quiet, friendly charm reminiscent of the way the Caribbean used to be. |