A call has been made for CARICOM countries to proactively position themselves in emerging World Trade Organization (WTO) discussions on climate and trade. It’s contained in a joint publication by the Shridath Ramphal Centre for International Trade Law, Policy and Services (SRC) at The UWI Cave Hill and the Forum on Trade, Environment & the SDGs (TESS).
The paper, co-authored by Director of the SRC Dr. Jan Yves Remy, recommends that WTO membership should recognise the specific needs of Small Island Developing States (SIDS) like those in CARICOM, undertake more technical work on the trade-climate interface, and ensure better coordination between the WTO and the United Nations Framework Convention on Climate Change (UNFCCC).
Moreover, CARICOM is encouraged to pursue offensive interests in areas like the blue economy, carbon markets, and sustainable tourism, and to emphasise key priorities such as technology transfer and climate finance in multilateral negotiations.
The publication, titled Trade-Related Climate Priorities for CARICOM at the World Trade Organization, highlights how vulnerable the CARICOM region is to climate change, despite its small contribution to global greenhouse gas (GHG) emissions—accounting for only 0.33 per cent. The paper stresses the need for CARICOM countries to play a more active role at the WTO, especially as the organisation’s sustainability agenda could offer opportunities for the region to shape global trade discussions in ways that support its economic and environmental goals.
The analysis in the paper begins with an overview of the climate challenges facing CARICOM, as outlined in the Intergovernmental Panel on Climate Change’s (IPCC) Sixth Assessment Report. This report emphasises that the region’s geographic, environmental, and economic vulnerabilities make it especially susceptible to the effects of climate change, compounded by existing financial strains from COVID-19 and inflation due to the Ukraine war. The region’s core industries—tourism, agriculture, and the blue economy—are also significantly impacted by climate-driven shocks, necessitating urgent action.
Although CARICOM’s fossil fuel dependence remains a priority, the paper highlights that the region’s climate and trade policy strategies are often shaped by its main trading partners—China, the United States, and the European Union (EU). The EU, in particular, has taken a leading global role on climate through its European Green Deal and the recently implemented Carbon Border Adjustment Mechanism (CBAM). The paper suggests that CARICOM can enhance its collaboration with the EU, particularly through greater engagement in areas like technology transfer and green financing. It also proposes that the CARIFORUM-EU Economic Partnership Agreement be leveraged as a forum for political dialogue to mitigate the potential impacts of policies like the CBAM.
At the multilateral level, the paper notes that CARICOM has been relatively limited in its participation in WTO climate discussions, with only one member signing onto the Trade and Environmental Sustainability Structured Discussions (TESSD). However, CARICOM countries are more engaged in initiatives such as the Dialogue on Plastics Pollution, with Barbados playing a co-convening role. The region’s nationally determined contributions (NDCs) under the Paris Agreement could serve as a useful foundation for articulating trade-related climate priorities at the WTO, including promoting energy-efficient imports and advancing tariff reduction measures for environmental goods.
The paper concludes by urging CARICOM to focus on strengthening its climate resilience and developing more strategic and articulated trade policies that reflect its climate goals. By doing so, CARICOM could take advantage of WTO discussions on critical areas like trade and technology transfer, aid for trade, and natural disasters. Dr. Remy suggests that the region’s NDCs offer a pathway for aligning national climate priorities with trade obligations, thereby advancing CARICOM’s interests in a coordinated and meaningful way within the global trade architecture.
Ultimately, the paper advocates for CARICOM to be more proactive in shaping the emerging WTO sustainability agenda. By focusing on climate finance, carbon markets, and the blue economy, the region can ensure its trade policy plays a crucial role in addressing climate change while driving sustainable development.
To read more click here: https://dk4d52.a2cdn1.secureserver.net/wp-content/uploads/2023/02/TESS-Policy-Paper-Trade-Related-Priorities-for-CARICOM-at-the-WTO.pdf