ST. JOHN’S, Antigua, CMC – Antigua and Barbuda’s Ambassador to the Caribbean Group (CARICOM), Dr. Clarence Henry, has reiterated a name for an “unbiased and complete” evaluation of claims being made by regional paint producers who’ve been calling for a rise within the tariffs on paint imports from the USA.
Henry met with native producers on Tuesday to debate the difficulty and mentioned that the evaluation have to be performed independently of the producers.
The native producers insisted that when the federal government carried out Article 164 of the Revised Treaty of Chaguaramas, whereas that they had skilled some powerful instances, they may nonetheless survive. They referred to as for the federal government right here to take care of vigilance in opposition to the creation of monopolies, which they declare would outcome from the assist of the regional paint producers’ request.
Henry had, in a September 26, 2023 letter to Commerce Minister E.P. Chet Greene, mentioned that the “so-called examine can’t be taken at face worth since an unbiased advisor didn’t conduct it.”
The veteran commerce official mentioned it had not been coordinated by the CARICOM Regional Group for Requirements and High quality (CROSQ), and “because of this, the doc can’t be relied on as one that gives a clear and honest complete evaluation.”
Of their September 20, 2023 letter to Greene, signed by Marguerite Desir, the CARICOM Paint Producers mentioned they had been looking for the assist of the Gaston Browne administration “for remedial measures by way of an alteration of the Frequent Exterior Tariff (CET) on paints.
The CET is a single tariff fee agreed to by all CARICOM members on imports of a product from outdoors the CARICOM. Knowledgeable sources advised the Caribbean Media Company (CMC) that when the CARICOM Personal Sector Group (CPSO) offered the examine to the Council for Commerce and Financial Growth (COTED), nearly the entire member states of the Organisation of Jap Caribbean States (OECS) didn’t assist the request.
Of their letter, the regional producers mentioned they commissioned the examine and “its conduct has been coordinated by the CARICOM Personal Sector Group (CPSO), on the invitation of the CARICOM/Regional Paint Producers.”
The regional paint producers argue that the CARICOM paint market has suffered important incursions as a consequence of “substantial under-pricing of paints” from the USA.
“Particular person regional paint producers have raised this matter with their nationwide Governments over the previous a number of years. Whereas a couple of Governments have tried to deal with the difficulty, the actions have fallen brief of their efficacy to the necessity for a ‘entire of neighborhood’ response by way of the Council for Commerce and Financial Growth (COTED) (i.e., a CET alteration, somewhat than a person nation response, by way of a CET suspension).”
They mentioned that member of the OECS and the paint business within the lesser developed nations (LDC) are beneficiaries of Article 164 “and has proven super promise as a profitable Group enterprise.
“The incursions from the US have hindered the success of OECS producers by considerably eroding value competitiveness and market share inside each LDC and MDC markets. By this measure, left unaddressed, the under-pricing will utterly nullify the supposed advantage of Chapter Seven and Article 164 of the Revised Treaty of Chaguaramas (RTC),” which governs the regional integration motion.
“Prior to now, the Paint Manufacturing Business has been unable to have the complicated analytical work undertaken to justify the strategy to the COTED. The arrival of the CPSO and the Caribbean Producers Affiliation (CMA) has facilitated the approaching collectively of all of the Regional Paint Producers round this single difficulty, severely harming their market share, funding, intra-regional commerce in paints, and employment.
“A possibility to current the Examine will spotlight the egregious extent of under-pricing to an extent that now threatens innovation, business growth, and for some producers, even their enterprise continuity as producers,” the regional paint producers wrote.
Through the assembly on Tuesday, the native producers maintained their name for the rise in tariffs on paints coming into the area from North America, warning that customers might be adversely affected sooner or later.
They argued that the examine implies a market dominance by a couple of regional paint corporations.
Henry has maintained that the examine is “self-serving favoring regional producers,” including that they’re conscious “that the brink to show their case could be powerful to pursue a rustic by nation strategy and would additionally name into query the implications of setting the tariff at 50 p.c for extra-regional paints”.
He mentioned the examine didn’t show an damage to color producers within the area, including, “There was no proof to indicate a loss in income or lack of ability to compete or any kind of loss out there.”
Henry additionally recommends that “there have to be nationwide stakeholder session by the Cupboard to find out whether or not to assist remedying motion.”
He additionally needs the CROSQ to be consulted and concerned within the unbiased examine, noting “there was an absence of knowledge to indicate the place CROSQ and its requirements for paints intersected with this physique of labor.”
Henry additionally needs the Suriname-based CARICOM Competitors Fee (CCC) to be “integrally concerned within the investigation of unfair competitors claims.”
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