oecs-wto aid for trade - case study

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    1AIDFORTRADECASESTORY:CARICOM

    .

    TheEDF(EuropeanDevelopmentFund)FundedCommonwealthSecretariatTradePolicyFormulation,Negotiationand

    Implementation(HubandSpokes)Project

    AIDFORTRADE:CASESTORY

    CARIBBEANCOMMUNITY

    (CARICOM)

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    AID-FOR-TRADE CASE STORY

    The EDF (European Development Fund) Funded

    Commonwealth Secretariat Trade Policy

    Formulation, Negotiation and Implementation (Hub

    and Spokes) Project

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    CONTENTS

    Page(s)

    EXECUTIVESUMMARY

    1. BACKGROUND ] 12

    2. PROJECTRATIONALEANDDESIGN ] 25

    3. OVERVIEWOFPROJECTPERFORMANCEANDIMPACT ] 45

    4. HIGHLIGHTSOFPROJECTINTERVENTIONS,SUCCESSES ] 56

    ANDLESSONSLEARNT ]

    5. TRADEPOLICYCAPACITYBUILDINGANDINPUTINTOTHE ] 611

    POLICYFORMULATIONANDNEGOTIATINGPROCESSES ]

    6. ESTABLISHINGANDMANAGINGPUBLICPRIVATESECTOR ] 1113

    CONSULTATIVENETWORKS ]

    7. IMPLEMENTINGPOLICIES,EXPLOITING(NEWORENHANCED)] 1415

    AND MARKETOPPORTUNITIES ]

    8. CONCLUSIONANDWAYFORWARD ] 1516

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    EXECUTIVESUMMARY

    TheHubandSpokesProjectisajointcapacitybuildingprogrammewhichiscosponsoredbyTheEuropeanCommission

    (EC), theCommonwealthSecretariat (ComSec)and theAgence Intergouvernementalede laFrancophonie (AIF). The

    ComSec, through the Commonwealth Action (Project) Team, has responsibility for Project implementation in ACP

    MemberStates

    within

    the

    Caribbean,

    Pacific,

    Eastern

    as

    well

    as

    Southern

    Africa

    regions

    and

    African

    Union

    (AU).

    The

    AIF

    has responsibility forProject implementation in theWestandCentralAfrica regions.TheEC is theprincipal funding

    source of the Hub and Spokes Project, contributing just over 10 million. The Commonwealth Secretariat has

    contributedover4millionandtheAIFapproximately3million.

    TheHubandSpokesProjecthasbeenanAidforTrade initiativethathasgeneratedconsiderabletraction inthe

    CaribbeanRegion.AsatJune302010anestimatedtotalof1,769personsinCARICOMStates(excludingtheOECS)

    and 1,069persons in theOECS have been trained, exceeding the target of 2,000 set for the entireACP,with

    approximately50%

    being

    women.

    This

    can

    be

    partially

    attributed

    to

    rigorous

    project

    management

    through

    the

    continuous evaluationof Project performance, against articulated goals, through the compilingof semiannual

    progress reports and projected work programmes by individual RTPAs and TPAs. In addition, stakeholder

    consultationwasusedtoprovidevaluablefeedbackandidentifypossiblepintsofcapacitybuildingintervention.

    Otherkeysuccessfactorsandbestpractices,whichmayhavegeneralapplicabilityinclude:

    utilizationofabottomupapproachtopolicyformulationand integrating theprivateandpublicsectorsaswellasNGOsintotheconsultativeprocessfromtheoutset.

    formulationofcountryspecificframeworkswhichallowedforflowofinformationandfeedback,betweenandamong all stakeholdersand integration of theHuband Spokes Projectworkprogramme into thatof the

    implementationagency(organization)

    building of partnership and collaboration with third party donors/organizations so as to augment theProjectsresources

    complementingtheinternalProjectexpertise,wherenecessary,throughcollaborationwithnational,regionalandmultilateralinstitutions.

    ensuringProjectinterventionswerealsoprimarilydemanddriven restrictinginterventionstothosethathavewidespreadacceptanceasapolicypriority ensuringthatprivatesectoralsointerestsareaddressed initiate interventions at theformative stages, cherrypicking areasfor concentration, while adopting an

    approach,whichcoverspolicyformulationthroughtocapacitybuildingandimplementation

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    TheProjectscopeandavailableresourcesconditionedthebreadthofitscapacitybuildinginterventions.However,

    significant strides were made towards achieving the overarching project goal. Interventions straddled the

    following:

    TradePolicyCapacityBuildingandInputintothePolicyFormulationandNegotiatingProcesses TradePolicyFormulation ImplementingspecificWTOAgreementsandintegrationintotheworldtradingsystem TraininginTradePolicyIssues EstablishingandManagingPublicPrivateSectorConsultativeNetworks ImplementingPolicies,Exploiting(neworenhanced)andmarketopportunities

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    1

    1. BACKGROUND

    TheHubsandSpokeProjectonBuildingtheCapacityofACPCountriesinTradePolicyFormulation,Negotiationsand

    ImplementationisanintegralparttheTradeComFacility.ThelatterwaslaunchedinDecember2004andisafunded

    bythe

    European

    Commission

    under

    the

    9th

    EDF

    (European

    Development

    Fund).

    The

    TradeCom

    Facility

    specifically

    targetstradedesignandparticipationbyACPcountriesintheongoingEconomicPartnershipAgreements(EPAs)and

    WorldTradeOrganization(WTO)negotiations,forcapacitybuildingassistance.TheFacilitywasallocated50million

    fortheperiod20042009andincludedAnalyticalandInstitutionalCapacityBuildingcomponents.

    TheHubandSpokesProjectisacapacitybuildingprogrammecosponsoredbyTheEuropeanCommission(EC),the

    Commonwealth Secretariat (ComSec) and the Agence Intergouvernementale de la Francophonie (AIF). The

    ComSec,throughtheCommonwealthAction(Project)Team,hasresponsibilityforProjectimplementationinACP

    MemberStateswithintheCaribbean,Pacific,EasternaswellasSouthernAfricaregionsandAfricanUnion (AU).

    TheAIFhasresponsibilityforProjectimplementationintheWestandCentralAfricaregions.TheECistheprincipal

    fundingsourceoftheHubandSpokesProject,contributingjustover10million.TheCommonwealthSecretariat

    hascontributedover4millionandtheAIFapproximately3million.TheProject,whichwasoriginallysettoend

    on31December2010,hasbeenextended through to30 June2012withan injunctionof4.5mmillionby the

    EuropeanCommission.

    The aim of the Hubs and Spokes Project is to promote the effectiveparticipation ofAfrican,Caribbean and

    Pacific(ACP)countriesininternationaltradenegotiationsandtostrengthentheircapacitytoformulate,negotiate

    andimplement

    trade

    policies,

    thereby

    enabling

    them

    to

    take

    advantage

    of

    new

    market

    opportunities

    and

    enhance

    theirintegrationintotheglobaleconomy.TheProjecthasfourmaincomponents:

    SupportingACPcountriesinanalyzing,formulating,negotiatingandimplementingtradepolicies; TrainingandsensitizingkeystakeholdersinACPcountriesontradepolicyissues; Supporting ACP countries in developing national and regional consultative networks for improved

    stakeholderconsultationandinvolvementintradepolicyformulation;and

    EstablishmentofappropriatemechanismsfornotificationoftradepolicymeasurestotheWTO.

    2. PROJECTRATIONALEANDDESIGN

    It should be recalled that theDohaDeclaration identified enhancedmarket access, balanced rules, andwell

    targeted,sustainablyfinancedtechnicalassistanceandcapacitybuildingprogrammes(Paragraph2oftheDoha

    Ministerial Declaration) as necessary ingredients for international trade to drive economic development and

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    meaningfullycontributetopovertyalleviationindevelopingcountries,whichformthemajorityoftheoverallWTO

    Membership.TheHubsandSpokesProjectwasconceivedasadirect response to thiscallbyMinistersofWTO

    MemberStates.

    animportant

    feature

    of

    the

    Project

    is

    the

    allocation

    of

    Regional

    Trade

    Policy

    Advisers

    (RTPAs)

    or

    Hubs

    in

    regional

    bodiesandTradePolicyAnalysts(TPAs)orSpokesinMinistriesofTradeinACPcapitalsandregionalbodies. The

    RTPAs, inter alia, provide technical advice in respect of the negotiation of Economic Partnership Agreements

    (EPAs),multilateral and regional trade negotiations, compliancewithWTOAgreements and other tradepolicy

    related issues.TheTPAsareexpectedtoconductresearchandanalysisto informtradepolicydevelopmentand

    supportthedomestictradenegotiatingagendaoftheindividualcountriestowhichtheyarestationed.

    Hubsweremadeavailable toRegionalorganizationssuchasAfricanUnion (AU);CommonMarket forEastern

    andSouthernAfrica(COMESA);EconomicCommunityofWestAfricanStates(ECOWAS);EconomicandMonetary

    Community of Central Africa (CEMAC); West African Economic and Monetary Union (UEMOA); Caribbean

    Community (CARICOM); Southern Africa Development Community (SADC); Organization of Eastern Caribbean

    States(OECS);andPacificIslandsForum(PIF).Atthepeakin2009,thereweretwentysix(26)Spokes(TPAs)at

    post. TheProjectalsoprovidesfundingforcapacitybuildingactivitiesidentifiedbytheRTPAsincollaborationwith

    theirhostorganisations.Activities fundedby theHubsandSpokesProjecthave includedworkshops; seminars;

    support todelegationsofhostgovernments toattendnegotiation sessions; shortcoursesand study tours.The

    ProjectalsofundsalltravelcostsbyRTPAsandTPAfortravelauthorizedbythehostorganisations.

    Forthe

    Caribbean,

    the

    technical

    assistance

    provided

    by

    the

    Hub

    and

    Spokes

    Project

    came

    at

    juncture

    when

    the

    RegionwasengagingintheprocessofnegotiatingnewtradeagreementsincludingtheCARIFORUMEUEconomic

    PartnershipAgreement(EPA).TheRegionwasalsoattemptingtofullyunderstand,anddischargeobligationsunder

    theWorld Trade Organization (WTO) and implemenet CARICOMs bilateral trade agreements. In addition,

    regionalgovernmentsaswellas theprivate sectorwereactively looking fornewmarketopportunitiesas they

    soughttouseincreasedtradeasatoolfordeliveringsustainedeconomicgrowthandalleviatingpoverty.

    A key consideration in the Hub and Spokes Project design and implementation has been the adoption of a

    consultativeapproach

    when

    formulating

    trade

    policy

    which

    incorporates

    all

    relevant

    stakeholders.

    This

    approach

    ensured themainstreamingand integrationof tradepoliciessoderived intooveralldomesticdevelopmentand

    tradenegotiating strategies. TheProjectalso focusedonbuilding capacity, skillsandexpertise inMinistriesof

    Trade,otheraffiliatedagenciesandtheprivatesector,aswellasnationalandregional institutionschargedwith

    responsibilityfortradepolicyformulationandnegotiations.

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    Consistent with the integrated and practical approach to delivering capacity building assistance, under the

    CaribbeanHubandSpokesProject,two(2)RegionalTradePolicyAdvisers(RTPAsorHubs)wereassignedtothe

    Region oneintheCaribbeanCommunitySecretariatandtheotherattheOECSSecretariat. Inaddition,eight(8)

    TradePolicyAnalysts (TPAsorSpokes)wereallocatedtotheRegiononeeachtoDominica,Guyana, Jamaica,

    SaintLucia,

    St.

    Vincent

    and

    the

    Grenadines

    and

    Trinidad

    and

    Tobago,

    the

    CARICOM

    and

    OECS

    Secretariats,.

    3. OVERVIEWOFPROJECTPERFORMANCEANDIMPACT

    The CARICOM Secretariat was designatedmanager of the Hub and Spokes Project serving Belize, Barbados,

    Guyana,Jamaica,SurinameandTrinidadandTobago. TheOECSSecretariatmanagestheProjectservingDominica,

    SaintLucia,St.KittsandNevisandSt.VincentandtheGrenadines.

    TheHubandSpokesProjecthasbeen fully integrated intotheCARICOMSecretariatandhasmadeasignificant

    contribution to building capacity of CARICOMMember States served to engage in the negotiation of trade

    agreements and the formulation of trade policies. This can be attributed to efforts to ensure that thework

    programmeoftheProjectwasguidedbytheoverallworkprogrammeoftheCARICOMSecretariatandtheconduct

    ofperiodicneedsassessmentsbytheRTPA.AsatJune302010anestimatedtotalof1,769persons inCARICOM

    States(excludingtheOECS)and1,069personsintheOECSweretrained. Thisexceedsthetargetof2,000setfor

    the entire ACP, with approximately 50% being women. Additionally, the Project has also made significant

    contributionsinotherareas,interalia:

    provided effective assistance with respect to CARIFORUMs preparations for and negotiations of theEconomicPartnershipAgreement(EPA)withtheEuropeanCommunity;

    conductedtrainingonrulesoforigininallbeneficiaryCaribbeancountries,aswellastrainingintheareasofexportsubsidiesandfisheriessubsidesnegotiationsattheWTO;

    providedthedraftCARIFORUMEURulesofOriginProtocol,whichformedthebasisofthenegotiationsonProtocol I Concerning the Definition of the Concept of originating products and Methods of

    AdministrativeCooperationoftheCARIFORUMEUEconomicPartnershipAgreement;

    coordinatedthedevelopmentofanEPAImplementationRoadMapwhichsetoutinchronologicalorder,the

    commitments

    to

    be

    discharged

    by

    CARIFORUM

    countries;

    assistedintheformulationoftradepoliciesandstrategiesinMemberStates;facilitatedtheestablishmentoftraderelatednetworksandprivatesectorinvolvementinthedevelopmentoftradepolicy;

    facilitatedtheestablishmentandfunctioningofaRegionalTaskforceonculturalIndustries;and assistedintheestablishmentoftheCoalitionofServicesProvidersinsomeMemberStates.

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    The total expenditure on initiatives implemented in the Caribbean Region under this Project thus far is

    approximately1millionwiththeCaribbeanRegionaccountingforapproximately40%oftheProjectintervention

    budgetallocatedfortheACP.WithintheRegionitshouldbenotedthat40%ofexpenditurewerewithrespectto

    tradepolicyformulationwhile35%hasbeendedicatedtoinitiativesrelatingtoexploitingmarketopportunities.

    Itisenvisagedthatoverthenexteighteen(18)monthstheProjectwillcontinuetoplayacriticalroleastheRegion

    strivestomeetthenewchallengesofaninternationaltradingenvironmentthatplacesapremiumoninnovation

    andcompetitiveness.

    4. HIGHLIGHTSOFPROJECTINTERVENTIONS,SUCCESSESANDLESSONSLEARNT

    HavingallowedforagreaterunderstandingofthebackgroundandoriginsoftheHubandSpokesProject,aswell

    asitsdesign,performanceandimpact,thefocuswillnowbeshiftedtohighlightingafewofthestrategiccapacity

    buildinginterventions

    undertaken

    by

    the

    Project.

    This

    will

    be

    undertaken

    in

    an

    attempt

    to

    elicit

    and

    demonstrate

    key lessons learnt, success factors and best practices, whichmay have general applicability to AidforTrade

    initiatives geared at building capacity of developing countries in trade policy formulation, negotiation and

    implementation.

    strategic capacity building interventions undertaken by the element of the Projectmanager by the CARICOM

    Secretariatwillbeexamined in the contextof theextent towhich theoverarchingproject aim and subsidiary

    objectives,aswellastheobjectivesdefinedforthe InitiativebytheRecommendationsoftheDirectorGenerals

    TaskForce

    on

    Aid

    for

    Trade,

    have

    been

    achieved.

    The

    latter

    include

    (i)

    enabling

    developing

    countries

    to

    use

    trade

    moreeffectivelytopromotegrowth,developmentandpovertyreductionandtoachievedevelopmentobjectives;

    (ii) toassistsmooth integration into theworld tradingsystem;and (iii) toassist in the implementationof trade

    agreements.

    5. TRADEPOLICYCAPACITYBUILDINGANDINPUTINTOTHEPOLICYFORMULATIONANDNEGOTIATINGPROCESSESBestPracticesandLessonslearnt:

    Projectimplementation

    in

    the

    Caribbean

    Region

    has

    been

    characterized

    by

    afocus

    on

    substantively

    and

    sustainablybuildingregionalcapacityinformulatingandimplementingtradepolicy.Asignificantproportionofthe

    Project resources (technicaland financial)hasbeendedicated towards supportingMemberStates inanalyzing,

    formulating,negotiatingandimplementingtradepolicies;aswellasintrainingandsensitizingkeystakeholdersin

    keytradepolicyissues.

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    AKeySuccessFactorwith regardtotheHubandSpokesProjectachieving itsgoalshasbeentheutilizationofa

    bottomupapproachtopolicyformulationandintegratingtheprivateandpublicsectorsaswellasNGOsintothe

    consultativeprocessfromtheoutset.Whathasalsobeencentraltoensuringsuccessistheformulationofcountry

    specificframeworks which allowedfor continuousflow of information andfeedback, between and among all

    stakeholders,both

    at

    the

    formulation

    and

    implementation

    stages.

    It

    is

    also

    critical

    that,

    as

    is

    the

    case

    with

    the

    Hub

    and Spokes, theProjectworkprogrammebe integrated into thatof the implementationagency (organization),

    wherethisisapplicable.

    Another Strategy that contributed to the achievements of the Project was the building of Partnership and

    collaborationsoastoaugmenttheProjectsresources. Thusthirdpartydonorfundingandtechnicalcollaboration

    weremobilized with the aim of ensuring that Project resources were not spread too thinly. TheWTO was

    successfullyutilizedinthiswaybytheHubandSpokesProject.

    CapacitybuildingtechnicalassistancecentredontheimplementationoftheCARIFORUMEUEconomicPartnership

    Agreement (EPA); WTO and bilateral trade negotiations, as well as monitoring the performance and

    implementationof traderelatedAgreements;thedesignofcountryspecific tradepolicy;andother tradepolicy

    relatedissues..VisitstoMemberStatesandMissionswereperiodicallyconductedtoprovidepolicyadvice,access

    capacity and review strategic outcomes; and seminars,workshops, technicalmeetings etc. conducted in areas

    deemedcapacitydeficient.

    Additionally, inordertocomplementthe internalProjectexpertise,wherenecessarycollaborationwithnational,

    regionaland

    multilateral

    institutions

    were

    utilized

    in

    order

    to

    meet

    peculiar

    capacity

    building

    needs

    of

    Member

    StatesandtheRegion.

    Projectinterventionswerealsoprimarilydemanddriven,whileensuringconsistencywiththearticulatedpriorities

    oftheExternal,EconomicandTradeRelationsProgrammeoftheCARICOMSecretariat. Germane inthisregard

    wereTradePolicyFormulation;theregional integrationprocess;theWTOnegotiations/agreements;andAid for

    Trade.

    TheProjects

    work

    programme

    aimed

    at

    providing

    assistance

    to

    Member

    States

    to

    adhere

    to

    their

    WTO

    commitments;educating thepublicandprivatesectoron thecurrentstatusofspecificnegotiatingareas in the

    DohaRoundofmultilateraltradenegotiations;furtheringtheregionalintegrationprocessthroughsensitizingthe

    public and private sectors, aswell as civil society on the CARICOM SingleMarket and Economy (CSME); the

    Servicessector;building thecapacityof MemberStates toengage inbilateral tradenegotiations;andassisting

    MemberStatesindevelopingtraderelatedpolicy.

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    AsaconsequenceoftheProjectsinterventiontheMemberStatesconcernedhaveallcompiledandnotifiedtothe

    WTOActionPlansfortheeliminationoftheirrespectiveexportsubsidyprogrammes.

    At the national level, the Project through the technical intervention of the RTPA in collaboration with the

    Ministriesof

    Foreign

    Affairs

    and

    Foreign

    Trade

    and

    Economic

    Development

    of

    Belize

    assisted

    with

    the

    following:

    Conduct of theWTOmandated consultations with the beneficiaries of Belizes three export subsidyprogrammes(CommercialFreeZones,ExportProcessingZonesandFiscalIncentives)

    PreparationofaDraftActionPlanleadingtofullcomplianceby2015; PreparationofaWTOnotificationofprogressmadetowardsbecomingfullycompliant Preparation of a draftof the officialbeneficiarynotification letter regarding the eliminationof export

    subsidiesand

    FormationofaTechnicalWorkingGrouponExportSubsidies thatwouldensurethe implementationoftheActionPlan

    TheProjectincollaborationwiththeWTOSecretariatconducted Workshop/ConsultationsontheImplicationsof

    theWTODohaDevelopmentAgendaNegotiationsonFisheriesSubsidies.This initiativewasaimedatbuilding

    Regionalcapacityaswellasthatof individualMemberStates intermsoftheirunderstandingofandcapacityto

    participateintheFisheriesSubsidiesnegotiationsoftheDohaRoundofmultilateraltradenegotiations.

    TheRegionhasalsobenefitedfromthepreparationofBriefsandempiricalanalysesofissuesrelatingtokeytrade

    policy issues. Inthis regardaBriefingVademecum forthe6th

    WTOMinisterial,HongKong,December2005was

    compiledby

    the

    RTPA

    and

    Briefing

    Notes

    were

    prepared

    for

    Ministers

    participating

    at

    the

    Ministerial

    in

    Geneva,

    Switzerland, July 2008. These briefings along with the results of empirical analyses conducted by the RPTA

    facilitatedtheengagementofindividualMemberStatesandtheRegioninthemultilateraltradenegotiations.

    TechnicalWorkingGrouponExportSubsidies

    WithrespecttotheTechnical WorkingGrouponExportSubsidies theRPTAworkedcloselywiththeHeadofthe

    CARIFORUMEPAImplementationUnit,establishedbytheSecretaryGeneraloftheCaribbeanCommunity(March

    2009),to

    compile

    aRe

    worked

    Roadmap

    for

    Implementation

    of

    the

    CARIFORUM

    EU

    Economic

    Partnership

    AgreementinChronologicalOrder.

    TheReworkedRoadmapgreatlyassistedtheSecretariatin,providingMemberStateswithaclearunderstanding

    oftheirimplementationcommitments,sinceitdistilledthemyriadoflegislative,institutional andpolicyactionsto

    beundertaken at thenational and regional levels,aswellasprovidedapplicable timelines.TheRoadmapalso

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    servedtoidentifykeypointsofinterventionforAidofTradeandformedthebasisofthedevelopmentofnational

    implementationplans.

    TraininginTradePolicyIssues

    With regard to trainingand sensitization, theProjecthas contributed tobuildingcapacityofMemberStates in

    several crosscutting trade policy issues through facilitating and/or collaborating in the hosting of training

    workshopsinareassuchasRulesofOrigin,DisputeSettlementMechanism,ExportSubsidies,IntellectualProperty,

    ICT, Tariffs as an instrument of trade policy and the fundamentals of tariff renegotiations that enhanced

    knowledgeandnegotiatingskillsofMinistries, theprivatesector,NGOs,academiaand theRegional Integration

    Organisations.

    6. ESTABLISHINGANDMANAGINGPUBLICPRIVATESECTORCONSULTATIVENETWORKS

    BestPracticesandLessonslearnt:

    Whenseekingtoestablishandmanageconsultativenetworksontradepolicy, itmaybebesttorestrictAidfor

    Trade interventions indevelopingcountriesto initiativesthathavewidespreadacceptancewithintheparticular

    Regionor country aspolicypriorities in respectofdiversifyingnational economies. It isalsoessential that the

    privatesectorhasavestedinterestandfortheareaoffocustobeonethathasnotbeencompletelytappedoutby

    otherdonors.

    Strategically, it isalsobest to initiate interventionsat the formativestages,cherrypickareas forconcentration,

    andadoptanapproach,whichstraddlespolicyformulationthroughtocapacitybuildingandimplementation.Itis

    also critical for the Network to be continuously supported through strategic project interventions, until the

    articulated Project determined goals have been achieved. Finally, third party donor funding and technical

    collaborationshouldbesoughttoensurethatallocatedresourcesarenotspreadtoothinly.InthisregardUNESCO

    wassuchanOrganizationutilizedbytheHubandSpokesProject.

    KeyCapacityBuildingInitiatives,PointsofIntervention(SuccessStories):

    RegionalTaskForceonCulturalIndustries

    TheProjectcollaboratedwiththeDirectorateofHumanandSocialDevelopmentoftheCARICOMSecretariatinthe

    establishmentandfundingoftheactivitiesoftheRegionalTaskForceonCulturalIndustries,whichwasmandated

    byCARICOMHeadsofGovernments.

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    9

    TheRegionalTaskForceonCultural Industrieswas launchedon23October2008 inGeorgetown,Guyana.This

    bodywasmandatedbyajointmeetingof theCouncil forTradeandEconomicDevelopment (COTED)and the

    Council for Human and Social Development (COHSOD) in 2008 to develop a comprehensive Regional

    DevelopmentStrategy

    and

    Action

    Plan

    for

    the

    Regions

    Cultural

    Industries.

    Resources

    to

    support

    the

    work

    of

    the

    TaskForcehavebeenprovidedbytheEuropeanUnion,throughtheHubandSpokesProject(US$75.000),whichis

    administeredbytheCommonwealthSecretariatincollaborationwiththeCARICOMSecretariat.

    The Twentymember Task Force comprises representatives from a wide cross section of relevant sectors:

    MinistriesofCulture,TradeandFinance; industry representatives;educational institutions; theprivate financial

    sector;andrepresentativesofregionalorganizationsincludingtheOECSSecretariat,CaribbeanExport,cultureand

    trade representatives in the CARICOM Secretariat. The Task Force, has met three times and engaged two

    consultantswhoconducted researchduring20092010andproduced the following reports: a)TheDesignand

    ImpactofanExemptionsRegimefortheCARICOMCulturalIndustries;b)IncentivesSchemesinMemberStatesfor

    Cultural Industries and Disincentives for their Growth and Development; c) International Best Practice in

    Government Policy: Incentivesfor Cultural Industries Development; and d) Educational Policy and Facilitiesfor

    EducationintheArtsandCultureinMemberStates.

    ThesestudiesarebeingusedtoinformthepreparationoftheRegionalStrategyandActionPlan,whichwillinclude

    recommendationsforanappropriate incentivesregimeandfinancingmechanismfortheculturalindustries;data

    forinclusioninnationalregistriesofartistesandculturalworkers;resolvingclassificationissuesrelatedtocultural

    productsand

    services;

    addressing

    challenges

    in

    free

    movement

    under

    the

    CARICOM

    Single

    Market

    and

    Economy

    (CSME);ensuringtheappropriatetreatmentofcultureintradenegotiationsandtradeagreements;strengthening

    regionalinstitutionsinculture,especiallytheCaribbeanFestivalofArts(CARIFESTA).

    TheStrategy,whencompleted,willbepresentedtoMinistersofCulture,TradeandFinance,andultimatelythe

    HeadsofGovernmentoftheCaribbeanCommunitytoadoptaharmonizedpolicyframeworkforculturalindustry

    development.

    CoalitionsofServiceIndustriesGiventheemergenceoftheServicessectorasthemajorgrowthpolewithintheCaribbeanregion,theHuband

    SpokesProjectwasalsoinstrumentalintheestablishmentofandstrengtheningofCoalitionsofServiceIndustries

    inindividualCARICOMcountries.Tothisendthefocuswasonstrengtheningthecoalitionsofservicesprovidersin

    MemberStates suchasTrinidadandTobago,GuyanaandBarbados,aswellasestablishingcoalitions inBelize,

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    10

    Jamaica and Suriname (as well as St. Kitts, St. Vincent and the Grenadines and Antigua and Barbuda in

    collaborationwiththeOECSSecretariat).

    ToensurecontinuityandsuccesstheProjectsubsequentlyfundedcapacitybuildinginitiativestargetingindividual

    Coalitions.These

    included

    workshops

    to

    develop

    negotiating

    positions

    and

    asses

    market

    opportunities

    for

    the

    ongoing CARICOMCanada FTA negotiations; as well as building capacity in Intellectual Property and ICT

    Innovation.

    7. IMPLEMENTINGPOLICIES,EXPLOITING(NEWORENHANCED)ANDMARKETOPPORTUNITIES

    BestPracticesandLessonslearnt:

    IntheCaribbeanregiontherehasalsobeenastrategicfocusonbuildingcapacityinpolicyimplementationaswell

    asassisting

    Member

    States

    in

    taking

    advantage

    of

    market

    opportunities

    presented

    by

    Trade

    Agreements.

    AccordinglyanalyseswereconductedtohighlightkeypointsofinterventionforAidforTradesincesuccessinthis

    area also required supplyside capacity building and a regional approach to policy prescriptions. Itwas also

    necessarytogobeyondtheapproachofmerelyprovidingstakeholderswithanunderstandingofthecontentsof

    Trade Agreements and move towards assisting the private sector to take advantage of new market access

    opportunities.

    Other strategies employed included the use of a programme approach to capacity building interventions,

    employinginformation

    generated

    form

    consultations

    to

    inform

    the

    next

    stage

    of

    Project

    work

    thereby

    allowing

    continuityinProjectoutcomes.

    KeyCapacityBuildingInitiatives,PointsofIntervention(SuccessStories):

    Interventions in this area included aWorkshop on TakingAdvantageof theCARIFORUMEU EPAHow toDo

    Business in theEU.Thiscoveredbothgoodsandservices,andCARIFORUMEUEPA Implementation issues.This

    workshopwhichwasconductedinTrinidadandTobago,andistobereplicatedinotherMemberSatesin2011,has

    yielded immediatereturns.TheTrinidadandTobagoManufacturingAssociation(TTMA)reportedthatsomenew

    exporters have already started making shipments to the EU based on the knowledge and skills elicited in

    workshop.

    The RTPA also conducted a comprehensive analysis of the performance of all CARICOMs bilateral trade

    agreements,theresultsofwhichwerepresentedtoRegionalTradeMinisters.Thisprovidedanunderstandingof

    thepossiblereasonsforthelessthansatisfactoryperformancebyCARICOMMemberStatesunderbilateraltrade

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    agreements; an assessment of possible future policy prescriptions; and possible areas for Aid for Trade

    interventions.

    InmanyRegionaleconomiesFreeZoneshaveemergedasatraderelatedpolicy instrumentforboostingexports.

    Giventhe

    need

    to

    reconcile

    the

    export

    contingency

    elements

    of

    existing

    legislation

    with

    WTO

    law,

    the

    Project

    has

    been actively involved in reviewing and recasting domestic incentive programmes. Further, the RTPA has

    conductedinitialstakeholderconsultationsandiscurrentlyinvolvedintheformulationofaStrategicPlanforthe

    CorozalFreeZoneinBelize.

    TheProjecthas isalso involved insupporting the formulationof traderelated laws/regulations.TheRegionhas

    madesignificantstridestowardspreparationoftheHarmonizedPolicyFrameworktofacilitateIntraregionalTrade

    inFinancialServices,aswellasthecompletionoftheHarmonizedCustomsLegislature(DraftBill).

    8.

    CONCLUSIONANDWAYFORWARD

    TheHubandSpokesProjecthasbeenanAidforTrade initiativethathasgeneratedconsiderabletraction inthe

    CaribbeanRegion,withrecognizeddeliverablesandoutstrippingprojectedgoals. Thiscanbepartiallyattributed

    tothecontinuousevaluationofProjectperformancethroughthecompilingofsemiannualprogressreportsand

    projectedworkprogrammesby individualRTPAsandTPAs,eachofwhichassessedthe impactofeach initiative

    undertaken.However,movingforwardthepossibilityofutilizingmorerobust indicatorsofProject impactshould

    beexplored.

    Perhaps due to its success, the Project in recent times received several requests fromMember Stateswhich

    outstripped the available financial resources. As such, efforts have been increasingly made to navigate the

    increasingdemandonthelimitedfinancialandtechnicalresourcesavailable.Inthisrespecttherewillcontinueto

    beadedicatedefforttoutilizeestablishedstrategicrelationships inordertoexecutecapacitybuildingactivities.

    Movingforward,interactionandcontinuousdialoguewiththestakeholdersandMemberStateswillbetheleading

    mechanismforprovidingvaluablefeedbacktoinstructactivityprogramming.

    Themajorplannedinitiativefor2011willbethehostingofanEUExportRally(workshopseries)Exportingto

    Europeunder

    the

    WTO

    Agreements

    and

    EPA,

    which

    will

    consist

    of

    tailored

    two

    day

    series

    of

    workshops

    as

    a

    followuptotheFebruary2010GoodsandServicesEPAAwarenessWorkshopdeliveredinTrinidad.TheRallywill

    targettheprivateandpublicsectorsandbuildcapacityinthemarketaccesscomponentsoftheseAgreementsand

    actuallyfurnishtheprivatesectorwithadditionaltoolstogettheirgoodsandservicestomarket intheEU.The

    countriestargetedwillbeSaintLucia,St.VincentandtheGrenadines,AntiguaandBarbuda,Grenada,St.Kitts

    andNevis,theCommonwealthofDominica,Barbados,JamaicaandSuriname.

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    TheWorkshopSerieswillutilizeadult learning techniques, interactivehandsonworkassignments, ITC learning

    environment and Skype VOIP technology to enhance the retention level of participants. Each event will be

    designedtoprovideexporterswithanincreasedunderstandingofhowtoexporttheirgoodandservicestotheEU,

    intraditional

    and

    non

    traditional

    markets,

    based

    on

    specific

    sectors

    identified

    before

    hand

    by

    key

    stakeholders.

    TheRallywill leadparticipants through the general conceptof exporting andprovide themwith knowledge

    transferandskillwhichwillallowthemtooptimizeexportopportunitiesundertheEPAandWTOAgreements

    relatingtoIntellectualPropertyandServices.

    This initiativewillprovidean idealopportunitytoemploymorerigoroussustainable indicatorsofProject impact

    since itprimarily targets theprivate sectorandspeaks to the issuesof (i)enablingdevelopingcountries touse

    trade more effectively to promote growth, development and poverty reduction; and (ii); assisting in the

    implementationoftradeagreements,whicharecentralAfTobjectives.