THE FRAMEWORK FOR MANAGING DOMINICA’S TRADE POLICY
INTRODUCTION
The current stage of trade policy formulation and implementation is the most negotiationintensive that Dominica and the rest of the Caribbean have ever faced. Dominica is currently
involved in the new World Trade Organisation (WTO) multilateral trade round agreed to at Doha
and the steadily advancing negotiations at the Free Trade Area of the Americas (FTAA). In
addition negotiations have begun under African Caribbean and Pacific Group of Countries –
European Union (ACP-EU) Cotonou Agreement in September 2002. There are also the
continuing efforts to deepen the regional and sub regional integration movement at Caribbean
Community (CARICOM) and the Organisation of Eastern Caribbean States (OECS) and
proposed trade agreements to be negotiated between CARICOM and third countries including
Canada, Mercosur and Costa Rica.
These negotiations form part of an increasingly growing trade agenda that now goes beyond
traditional issues of border measures such as import tariffs and non-tariff measures on goods to
include agreements on trade in services, trade related intellectual property rights, investment,
government procurement, environment, electronic commerce and trade facilitation.
As these negotiations proceed Dominica is confronted with the challenge of ensuring that its
economic and development interests are taken into account and safeguarded. This requires that
Dominica undertake the necessary research and analytical work on the economic and social
implications of the negotiations, develops its negotiating positions on the various issues and
participates in the many preparatory and negotiating meetings. These positions must encompass
the interests of all stakeholders in Dominica. This places tremendous demands on the limited
resources of a small economy like Dominica.
In addition to external trade negotiations, trade policy formulation is also concerned with export
competitiveness and development. This involves formulating and implementing the right policy
measures necessary to improve the supply capacity and competitiveness of the domestic
productive sectors. It also involves activities aimed at promoting the goods and services
produced in Dominica on the export market. Associated with this are activities surrounding the
development of standards and quality for Dominica’s exports. With regards to the domestic
arena, the management of trade policy relate to creating the right environment in which
businesses and consumers conduct trade and commerce. In that regard the development and
implementation of effective fair competition and consumer protection policies are important.
Standards are also important for goods imported into Dominica in order to ensure the protection
of the health and safety of consumers.
In order to address all the above issues there needs to be an effective mechanism and framework
for managing Dominica’s trade policy. In response to this need a new framework was recently
put in place by Cabinet and which is outlined below.
MANAGING DOMINICA’S TRADE POLICY
The Stakeholders
Managing Dominica’s trade policy to address the above agenda requires the active involvement
and participation of all the stakeholders. Four groups of stakeholders can be identified. The
Ministry of Foreign Affairs, Trade Labour and the Public Services (FATLPS) being responsible
for the overall development and implementation the trade policy of Dominica needs to interface
with these groups at one point or another in its work.
The first group is the political directorate in the Cabinet. FATLPS through its Minister advises
and makes recommendations on policy decisions and legislative, regulatory and administrative
changes. The FATLPS also receives policy directives from the Cabinet for implementation.
The work of the Ministry requires a significant level of interface with other Government
Ministries, Departments and Agencies, which constitute the second group of stakeholders. This
includes the Ministries of Agriculture and the Environment; Legal Affairs; Finance and
Planning; Communication Works and Housing; and Industry, Enterprise Development and
Physical Planning. There also needs to be close collaboration with the Departments of Customs,
Statistics, Immigration and Labour and agencies such as DEXIA, NDC and the Bureau of
Standards.
The third group are the non-state actors. In order to formulate and implement Dominica’s trade
policy there needs to be constant dialogue with the private sector, labour unions and civil society.
Finally the media is playing a greater role in the shaping of the minds of the nation and hence
they have a critical part to play in the management of trade policy in Dominica. The FATLPS
will have to make use of the media to inform and educate the public on trade policy issues.
The Scope of Activities
The activities in managing trade policy can be categorized under the following broad headings:
a) Technical
b) Advocacy/Representational
c) Administrative

Technical
This speaks to the process whereby positions are defined through thorough analysis of the
issues, determination of the interests of Dominica, and the elaboration of an appropriate
approach.

Advocacy/Representational
This deals with the actual insertion of the Dominica’s positions into the various fora and at
various levels, whether in the documented form or participation at meetings. The Caribbean
Regional Negotiating Machinery (CRNM), established to coordinate the region’s
2
participation in trade negotiations, is the principal focal point through which this is done for
Dominica.

Administrative
This speaks to the actual management of the processes, through the effective allocation and
deployment of all available resources, as well as the coordination and sequencing of the
various activities that need to be undertaken.
The above will require a number of specific actions to be carried out. These include, but are not
limited to; the conduct of studies; the receipt of studies /reports/documents; the analysis of the
relevant documents; consultations/discussions to identify the particular interests of Dominica;
preliminary elaboration of proposed positions; refinement of these proposals; communications
with the appropriate points/nodes at national, sub-regional, regional, hemispheric, and
international levels; attendance and participation at meetings at various levels and in differing
forums. These are just indications of what is involved in managing trade policy.
Management of Dominica’s trade policy in light of the agenda has been affected by several
problems. The principal ones are outlined below.
THE NEED FOR A NEW FRAMEWORK FOR MANAGING DOMINCICA’S TRADE
POLICY
The Problem of Integrated Planning and Trade Mainstreaming
One of the principal factors that have affected the management of trade policy in Dominica has
been the absence of an integrated planning framework and systems that are supportive of
strategic approaches to the implementation of agreed priorities. This in turn has hindered the
development of a well-planned and strategically located trade policy for Dominica. The need for
an integrated planning framework has been recognised with the Integrated Development Plan
(IDP) in the process of development.
However, a further factor has to do with the position of trade issues on the national economic
agenda of Dominica and in the IDP development process. It is widely recognised that trade is
now a very important instrument of economic development policy. Trade issues are now at the
centre of relations between countries. It is also the foundation of the current global economy. It
is critically important, therefore, that the importance of trade issues are recognised and become
an important part of the national dialogue with the appropriate political oversight from Cabinet.
The Problem of Capacity
The Trade and Marketing Division of the FATLPS has a structure which provides for five (5)
Trade Officer positions and the Director of Trade. Currently there are only three (3) technical
persons including the Director. This does not include the Permanent Secretary. With this number
of staff the Ministry is not able to effectively follow all the trade policy issues under discussion
and negotiations in the various arenas around the world. Hence it has been necessary to identify
3
priority issues, which will be monitored. They are agriculture; trade in services; and smaller
economies.
The FATLPS requires greater capacity to adequately deal with the trade policy agenda facing
Dominica nationally, regionally and internationally. This increased capacity is needed in the
form of additional staff, additional training and additional financial resources. Increased
capacity would also be achieved through greater input from other Ministries to the work of the
Ministry where these other Ministries impact on trade policy. This is dealt with below.
The need to have dialogue with non-state actors also implies developing technical competence
within the private sector and civil society. The capacity of non-state actors to influence trade
policy will depend of their ability to understand the many dimensions of trade and economic
development.
The Problem of Internal Coordination and External Consultation
The operational interface arrangements within the public sector on trade policy issues are
currently extremely weak. There is simply not enough coordination between the ministries,
departments and agencies on trade policy issues. Decisions are sometimes taken in other
Ministries that have significant impact on Dominica’s trade obligations without prior
consultation with the FATLPS. On the other hand the FATLPS has sometimes had to make
trade policy decisions in areas that impact heavily the work of other Ministries and department
without sufficient input from these ministries.
There is also the absence of a system to support constructive policy dialogue between the public
and private sector on trade policy in Dominica. All dialogue between the FATLPS and the nonstate actors in the past has been ad hoc, sporadic and on the whole ineffectual. There is no
ongoing interaction through which the private sector and civil society is helping to shape the
trade policy response to the challenges facing Dominica.
The Problem of Knowledge of Trade Issues
There is a general lack of understanding of the trade issues confronting Dominica within the
public sector, private sector and in the political directorate. Very few persons within the four
stakeholder groups identified above have knowledge of the multilateral, plurilateral and regional
trade agreements and their provisions as they affect Dominica. This can greatly hinder the
management of trade policy in Dominica.
THE NEW FRAMEWORK FOR TRADE POLICY MANAGEMENT
The National Component
Based on the current trade policy agenda, the scope of the activities in managing trade policy and
the problems faced in Dominica a new framework for managing trade policy was established in
Dominica. Similar frameworks to a greater or lesser extent exists in Grenada, Jamaica, Trinidad
4
and Tobago and Barbados while more extensive ones exist in the developed countries such as the
US, Canada and the EU. The elements of this new framework are as follows:



Cabinet Sub-Committee on Trade and Development
Trade Policy Coordinating Committee (TPCC)
National Trade Policy Advisory Committee (NTPAC)
Cabinet Sub-Committee on Trade and Development
The sub-committee of Cabinet was established to specifically address the trade policy issues as
they relate to the economic development of Dominica and make recommendations to Cabinet.
The primary benefit of the creation of this sub-committee is the facilitation of quick and timely
decision making where necessary for the negotiations. There will be times when Dominica
needs to make a decision on a position to be taken at the negotiations at a very high level in a
very short time. The process of going to Cabinet for a decision could involve more time than is
available. The issue could be brought to the Sub-committee for a quick decision. The SubCommittee would then report to the full Cabinet.
The Sub-Committee comprises not more than four Ministers and include:





The Minister for Foreign Affairs, Trade, Labour and the Public Service
The Minister for Agriculture and the Environment
The Minister for Finance and Planning
The Minister for Tourism, Industry and Enterprise Development
The Minister for Legal Affairs and Immigration
Trade Policy Coordinating Committee
This Committee is responsible for crafting positions, providing technical and analytical inputs
and assessments based on areas of competence and producing comprehensive position papers
and policy briefs on the various trade policy issues. Specifically the Committee provides
information and advice relating to the negotiation of bilateral, regional and multilateral trade
agreements as well as facilitate coordination in carrying out the responsibilities of FATLPS for
CARICOM Affairs.
Members of the Committee are Senior or High Level Officials of Government Ministries,
Departments and Agencies as follows:
1.
2.
3.
4.
5.
6.
FATLPS
Ministry of Agriculture and the Environment
Ministry of Finance and Planning
Ministry of Tourism, Industry, and Enterprise Development
Ministry of Legal Affairs and Immigration
Ministry of Communication, Works, Housing and Physical Planning
5
7. Coordinator of the Local Council for Human and Social Development (COHSOD)1
8. Customs Department
9. NDC
10. DEXIA
11. Dominica Bureau of Standards
12. Chairperson of the NTPAC
It is proposed that the Chairperson of the NTPAC sit on the TPCC to establish a link and to give
a sense of transparency and inclusion.
National Trade Policy Advisory Committee
This Committee comprises representatives from primarily the private sector, civil society, NGOs,
media and all other non-government national stakeholders. It serves as a consultative and
advisory mechanism, which convenes in order to discuss new or evolving developments or
implementation matters. The FATLPS is represented on that committee to establish the
necessary link with the TPCC.
The following are the recommended organisations that would be represented on the Committee.
1.
2.
3.
4.
5.
6.
7.
8.
9.
FATLPS
DAIC
Dominica Hotel and Tourism Association
The Trade Unions – one representative for all
National Association of Non Governmental Organisations (NANGO)
The Bar Association
The National Youth Council
Media Association
Dominica Cooperative Societies League Ltd
Committee of Permanent Secretaries
The Committee of PSs provides general oversight or monitoring role of the framework,
particularly the TPCC, below the Cabinet Subcommittee level. The Committee will receive
periodic (monthly, bi-monthly or quarterly) reports on the functioning of the TPCC. The
Committee receives, for information, copies of position papers, recommendations and policy
briefs that are submitted to the Cabinet Subcommittee.
The Sub-regional and Regional Processes
Dominica’s trade policy formulation is not carried out in isolation of regional initiatives at the
OECS and CARICOM. Dominica is a member of the OECS and CARICOM and has agreed to
coordinate its trade policy with the other Member States of these regional organisations. In fact
1
COHSOD is a CARICOM Organ represented at Ministerial level from the Ministries of Education, Sports and
Youth Affairs; Community Development and Gender Affairs; and Health and Social Security.
6
the Conference of Heads of Government of CARICOM has decided that CARICOM will
negotiate as one unit within all external economic negotiating fora. Hence the need to develop
and maintain a strong link between the national and regional processes is extremely important.
Negotiating positions and policies developed at the national level will need to be fed into the
regional frameworks.
The CARICOM Framework
The CARICOM framework is constituted of the following:





The Conference of Heads of Government
The Prime Ministerial Subcommittee on External Negotiations
The Council for Trade and Economic Development (COTED)
The Ministerial Spokespersons with responsibility for External Negotiations
The Caribbean Regional Negotiating Machinery (CRNM)
The Conference of Heads is the highest decision making body of CARICOM made up of heads
of government and from it there is a subcommittee responsible for overseeing external
negotiations. The COTED, which is composed of the Ministers responsible for trade,
agriculture, industry and economic development, is responsible for promoting the trade and
economic development of the Community. All negotiating positions in principle must be
approved by the COTED before they can be articulated at negotiating meetings. The Ministerial
Spokespersons were appointed to superintend the conduct of external negotiations in the various
negotiating theatres.
The CRNM is the organisation responsible for coordinating the region’s participation in
negotiations.
The OECS Framework
The OECS framework is made up of the following:



The OECS Authority
The Economic Affairs Committee (EAC)
The Trade Negotiating Group (TNG)
The Authority is the highest decision making body in the OECS. The EAC is the counterpart to
the COTED in the OECS. The TNG is made up of senior officials from the Ministries of Trade
and is responsible for developing the OECS positions for the negotiations.
Feeding Into these Processes
The link between the national process and the regional process could follow two tracks. Final
negotiating positions from Dominica approved by Cabinet would be forwarded to the OECS
Secretariat. At the TNG, followed by the EAC and finally the Authority an OECS position
would be developed which would then be forwarded to the CARICOM Secretariat and the
7
CRNM. There, at the COTED, with technical support from the CRNM and the Ministerial
Spokespersons a CARICOM position would be formulated for final approval by the Prime
Ministerial Subcommittee and the Heads.
Given the nature of the negotiating process, which can involve very short notice, the process can
become very fluid in which national positions from the OECS are forwarded directly to the
CARICOM/CRNM for the development of a regional position. In certain cases the regional
position may need to come back to the national Cabinets for approval.
8
APPENDIX I
The Trade Policy Coordinating Committee
Responsibilities
The TPCC shall:
a. Coordinate the formulation and development of Dominica’s external trade policy;
b. Recommend external trade policy positions to the Cabinet and the Cabinet SubCommittee on Trade and Development;
c. Coordinate the formulation of negotiating positions for all external economic and
trade negotiations that Dominica is involved;
d. Provide technical and analytical input and assessment based on areas of competence
and producing comprehensive position papers and policy briefs on the various trade
policy issues;
e. Advise on the readiness of the productive sectors and civil society to face the
challenges and opportunities that trade liberalisation and globalisation will bring.
APPENDIX II
The National Trade Policy Advisory Committee
Terms of Reference
The NTPAC shall:
(a) Provide advise and recommendations on the formulation and development of Dominica’s
external trade policy;
(b) Provide advise and recommendation on the formulation of negotiating positions for all
external economic and trade negotiations that Dominica is involved;
(c) Provide advise and recommendation on the readiness of the productive sectors to face the
competition that trade liberalisation and globalisation will bring and actions that Government
would need to take to address the lack of readiness;
(d) Prepare and submit position papers to government from a private sector, civil society
perspective on trade policy issues.
The NTPAC would be responsible for developing its own rules of procedures including the
appointment of a chairman/chairperson.
The servicing of the NTPAC would be the sole responsibility of the non-state actors on the
committee with support from the Ministry of Foreign Affairs, Trade, Labour and the Public
Service.