Cabinet approves plan to assist Haiti

Cabinet yesterday approved a plan for Caricom-backed plan for financial assistance to Haiti.

Cabinet also approved the completion of the negotiations of a Free Trade Area between Caricom and Costa Rica. And Government also announced liberalisation measures for the local manufacturing sector. Trade Minister Ken Valley, speaking at a post-Cabinet news briefing, explained that currently there were duty-free concessions on all imported raw materials  which were not available on the Caricom market. If a manufacturer wanted to import a raw material which was available in Caricom, he had to get the written permission of the particular Caricom supplier.

However, Valley said, Government agreed to remove this procedure and replace it with a new system. A tribunal managed by the Ministry, would be established comprising the Deputy Trade Officer, Comptroller of Customs, a representative of TIDCO, a representative of the Ministry of Agriculture, a representative from the Chamber, one from the TTMA. The Tribunal would consider, advise and recommend to the Minister in instances where a manufacturer wanted to source a raw material from an external source, but which was available in the region. On the FTA with Costa Rica, Valley said it would come into force on January, 2004. Over 6,000 products would be traded between Caricom and Costa Rica on a duty-free basis. He said a special regime had been established for agricultural products. There was also a unique feature — a differential treatment clause- which would allow trade with some Caricom countries, but not with others in certain products.

Valley stated that there was also non-reciprocity for the OECS countries. They would be allowed to export their products into Costa Rica on a duty-free basis, but products from Costa Rica would be subjected to duties on their (OECS) market. Foreign Affairs Minister Knowslon Gift said Cabinet approved the financial assistance to Haiti, the poorest country in the hemisphere. He said the plan involved each Caricom country putting $500,000 into a fund meant to trigger funding from the Inter-american Development Bank, World Bank and other international agencies. He said once each country met its quota, the international institutions would resume their borrowing programme to the country.