JOINT COMMUNIQUE

Summary

1. The second UK/Caribbean Forum took place in London on I I and 12 May 2000. The Forum highlighted the special relationship between the UK and the Caribbean Governments, and continued the discussion of issues of common concern and of future cooperation initiated at the first Forum in Nassau in 1998.

2. The Forum covered a wide range of issues of connnon concern, including economic development, trade and investment, regional integration, development partnerships, environmental and social issues, education, financial matters, crime and judicial issues.

3. The Forum was characterised by open and friendly exchanges on this wide range of issues, developing further the consensus on the challenges facing the Caribbean region and options for future action.

Detail

4. The British Government hosted the second UK/Caribbean Forum at Lancaster House in London on I I and 12 May 2000. The UK/Caribbean Forum was an initiative launched after the Commonwealth Heads of Government Meeting in Edinburgh in 1997 and is designed to enhance and develop the already wann relationship between the UK and the Caribbean Govenunents, and to provide a forum for the discussion of issues of common concern and identify areas for possible future cooperation.

5. The first Forum was held in Nassau in February 1998. After the success of that meeting, it was agreed that the Forum would become a biennial event, alternating between the UK and the Caribbean region. This is the first UK/Caribbean Forum to be held in London.

6. The Forum was co-chaired by Robin Cook, the British Foreign Secretary, and Ralph Maraj, the Trinidad and Tobago Foreign Minister and current Chair of the CARICOM Council for Foreign and Community Relations.

7. In addition to the UK and the 14 members of CARICOM, the Dominican Republic, the UK's five Caribbean Overseas Territories and Bermuda, the CARICOM and CARIFORUM Secretariats, the European Conunission, the EU Presidency and the United

States also participated in the Forum. A number of other countries and institutions were represented as observers, including, Canada, France, The Netherlands, Spain, the Caribbean Advisory Group, the Commonwealth Secretariat, the Caribbean Development Bank, the Organisation of American States, the Regional Negotiating Machinery, the University of the West Indies, the University of Guyana, the West India Committee/Caribbean Council for Europe, the Caribbean Trade Advisory Group, the Caribbean Tourism Association and the Caribbean Hotels Association, the World Bank, the International Monetary Fund, OECD, the Inter-American Development Bank and the Institute of Commonwealth Studies.

8. In his welcome statement at the beginning of Day I of the Forum, the British Foreign Secretary, Robin Cook, underlined the importance of mutual understanding and partnership in the relationship between the UK and Caribbean Govenunents. Mr Cook said that the UK acknowledged the potential of the region, but was aware of its unique vulnerability. He stressed the need for holistic approaches to the challenges facing the region. This required further efforts to achieve consensus on problems and possible solutions, and highlighted the need for more effective coordination between the players both within and outside the region. He cited the on-going joint work between the UK and the US on trying to achieve better cohesion in their development programmes as an example of how this approach could bring benefits to all concerned.

9. In response the Trinidad and Tobago Foreign Minister, Mr Ralph Maraj, speaking on behalf of CARICOM, thanked the Foreign Secretary, Mr Robin Cook, for his insightftll Opening Address and for the excellent arrangements made by the United Kingdom Government for the Meeting. He positioned the Meeting in the context of the increasing interaction between CARICOM and the United Kingdom to promote common interests. He highlighted the economic importance to CARICOM of the Small States Initiative launched by Commonwealth Heads of Government, and lamented the failure of the WTO Ministerial Meeting in Seattle to address the issues of development with equity and social justice.

10. He noted that the unprecedented wealth created by globalisation had resulted in impressive economic growth in the North, including the United Kingdom, and stressed that this could not be sustained alongside increasing poverty and marginalisation of the threequarters of the world's population in the South. Mr Maraj emphasised that CARICOM countries, while confronted by many obstacles, were determined to make their way in the global economy through resourcefulness and dignified co-operation with others and were resolved not to be marginalised. He opined that the United Kingdom had much to gain from encouraging its business conununity to regard the Caribbean not just as a location for investment and trade but as a gateway to the Americas.

11. The following is a brief summary of the topics discussed at the Forum and the agreements reached:

Economic Development, Trade and Investment

12. The initiatives in CARICOM to deepen and widen the integration process in the Caribbean, in particular the creation of the Single Market and economy were highlighted. The importance of continuing this process was acknowledged, as was the contribution this would make to sustainable economic development and economic diversification. The Forum agreed on the importance of integrating the region more effectively into the new world trading system. In this regard the Forum commended the Report of the Commonwealth Secretariat and World Bank on the challenges faced by small states, given their specific vulnerabilities and the recommendation that special consideration be given to them.

13. It was important for long-term economic development that clear and durable arrangements for market access were re-established as soon as possible. It was agreed that progress was urgently needed on a new WTO Round.

14. The European Commission said that the February EU/ACP agreement and the forthcoming signature in Suva in June marked a new era in the way in which the European Commission co-operated with the ACP states. The differentiation in the new agreement would help Caribbean governments in meeting their diversification goals. An active and intensive debate on future trading arrangements was expected. The European Commission emphasised that it would continue to recognise the vulnerability and special needs of Caribbean banana producers in seeking a resolution to the banana dispute. Delegates stressed the need for mutually accessible arrangements on tariff quotas. The producer countries needed sufficient time to implement training and develop new skills. The importance of achieving a recognisable Caribbean brand was underlined. The UK reconfirmed its commitment to resolving the banana issue and stressed the need for continued partnership and coordination, particularly in the EU/ACP context.

15. The Forum discussed Cuba's decision to withdraw its application to be a signatory to the EU/ACP Partnership Agreement. Caribbean delegates expressed their dismay that the attitude of some EU Member States may have been influenced by human rights considerations which Caribbean countries thought could have been handled within the Agreement itself.

16. The UK reiterated its support, in principle, for Cuba's application to join the new Suva Agreement. But the UK is commited to the EU Common Position on Cuba, which makes clear that full cooperation with Cuba will depend on progress on human rights, and in this context the UK remains keen to see circumstances in which the EU can support any future Cuban application.

17. It was agreed that the two sides would jointly take forward the project for a Caribbean Inward Investment Office initially proposed at the first Caribbean Forum in 1998. An action plan was agreed, whereby draft terms of reference for a full feasibility study will be agreed between officials of the co-chairs of the Forum and the CARIFORUM by 15 July 2000. This will include consideration of the location, scale and organisational structure of the new Office, market and sectoral coverage, promotional mechanisms, funding issues, and the participation of the private sector. On the basis of the agreed terms of reference, the UK will commission consultants to conduct the study, which the UK agrees in principle to finance. The target for completion of the feasibility study will be 30 October 2000, with sight of a preliminary report by 30 September 2000 (both timings subject to confirmation by the consultant).

18. In parallel, both the UK and CARIFORUM will took at the possibility of creating an internet promotional tool, and review conclusions, through a meeting between officials of the

UK Goverment and the appropriate agencies of Jamaica, Barbados and Antigua based in the UK, by I August 2000. The UK undertook to provide to CARIFORUM information on its own experience of attracting investment from overseas by 15 June 2000.

19. The Forum was advised of the newly-launched private sector-promoted Caribbean Basin Investment Fund. Its potential for challenging investment funds, especially from private investors was recognised.

20. The importance of expanding trade between the UK and the Caribbean was underscored. Agreement was reached on the need to stimulate business links both between major players and small and medium enterprises. The need to build bridges to facilitate the propagation of entrepreneurial culture in the Caribbean was a key element. The new programme of enterprise development support for the Caribbean, ftinded by the UK Department of International Development (DFID) was acknowledged as a positive step in this process.

21. Delegates welcomed the decision to strengthen the Caribbean Trade Advisory Group (CARITAG) and noted the value of the contribution which it will continue to make to the expansion of trade and business links between the UK and the Caribbean.

22. The Forum also acknowledged the special needs of the Caribbean in facing the challenges posed by the "dot corn" revolution. The Joint Chairs were tasked to identify ways in which the Caribbean might take advantage of technological change and minimize the scope of economic marginalisation which might otherwise affect the region. In particular, it was acknowledged that the discussions at the EU Lisbon Summit were relevant to this process.

Development Partnerships and Debt

23. The UK side reported on its priorities for development assistance in the Caribbean and set out present thinking on the planned White Paper on Globalisation with Equity. The Caribbean side stressed the need for continued engagement on this subject. The Forum agreed on the need for greater coherence in the strategies of the donor community. A presentation by a representative of USAID informed the discussion. Delegates highlighted the unique challenges facing small states, and the need to factor these into policy processes They emphasised the need to work to reduce the vulnerability of the region to external economic and physical shocks. In particular, they acknowledged the need for external assistance to help the region prepare for and recover from the natural disasters that are increasing in frequency and intensity. CARICOM and the Bermudan Government will discuss the first steps for a group to discuss establishing catastrophic insurance coverage for the region, particularly as it relates to hurricane damage.

24. A number of areas were identified where the UK might work with Caribbean countries- to try to reduce their vulnerability, including: helping the Caribbean to cope with and respond to increasingly complex international standards; help with macroeconomic policy and debt management; assisting countries to enhance their competitive position; and contributing to improved donor co-ordination and simplified donor aid procedures.

25. The Forum recognized the importance of debt relief in the promotion of economic regeneration. Acknowledgement was given to the role the UK was continuing to play, including the writing-off of over;E95 million of debt (including E30 million under the Commonwealth Debt Initiative) and as a leading player in the HIPC initiative. The need to speed up the HIPC process was underlined by the Caribbean side. A factor which limited the impact of debt relief measures was the application of criteria which only takes into account the classification of many Caribbean countries as Middle Income Countries, without recognising other factors which constrain their economic capacity.

Environmental and Social Issues

26. The Caribbean side expressed their extreme concern at the shipment of nuclear waste materials through the Caribbean Sea. They underlined the threat it represents to the lives of their citizens and their eco system, the basis of the burgeoning tourism industry. The British side stressed the stringent safety measures taken in for these shipments, which were carried out in accordance with international agreements. The British side confirmed that it would continue to be open and transparent in the provision of information to countries in the region. The Caribbean side reiterated their concern at the prospect of ftu-ther shipments.

27. There was recognition of the impact of climate change on the region, where forecasts of future increases in sea levels threatened populations living in or near coastal areas. This was particularly crucial for the many Caribbean countries, where a substantial proportion of the population lived within 2 kms of the coast.

28. The Caribbean Advisory Group presented a paper on work in the UK on the integration of minorities into majority communities.

29. The Forum considered the impact of rising crime levels on societies, and especially the challenge which this was posing for small states such as those in the Caribbean. The Caribbean side indicated that a number of countries in the region were, in principle, in favour of the abolition of capital punishment, but that the economic and social conditions in the region need to be further improved to provide the fullest possible employment and to alleviate poverty before moving forward to concrete decisions.

Education

30. Education and training was identified as the key to equipping the countries of the region to respond effectively to economic and technological change. DFID collaboration an education within the Caribbean of around LI lm a year aims to help improve access to and the quality of primary and secondary education for all, especially the poorest. However, the geography of the region was an impediment to achieving the critical mass necessary to achieve real progress using traditional educational approaches. The importance of distance learning, especially taking advantage of new technology (including the intemet) was highlighted. The UK outlined recent developments on education and possible areas for increased collaboration with the Caribbean, including on vocational and distance learning.

31. Both sides underlined the importance of increasing the level of scholarships available to Caribbean students to attend British educational institutions. The announcement by the UK of LI 00,000 additional Chevening scholarships for the Caribbean region was welcomed.

Financial Matters

32. The UK and Caribbean delegates both stressed the importance of transparent >regulatory and taxation environments, with appropriate information exchange and the need for international standards applicable to all. The UK made clear that there was no question of forcing offshore centres out of business. In the future, the distinction would not be between onshore and offshore centres, but between those jurisdictions which met international standards and those which did not. The Caribbean side expressed its concern at the timetable and methodology of the OECD initiative on harmful tax and in particular the burdens which it imposed on smaller countries. The US and OECD endorsed the points made by the UK and expressed the view that the OECD initiative had developed to take account of the wish of many countries to enter into a dialogue with the OECD. The Caribbean side reiterated that the most effective method of dialogue and consultation is a multilateral forum where international standards could be agreed and developed by all, on a global basis.

33. Both sides acknowledged the importance of financial regulation in countering money-laundering, which posed a serious threat to the financial integrity of small states, and facilitated the influence of international criminal organisations and the drugs industry. The Caribbean side emphasised the efforts made to date to improve standards of regulation and expressed concern that the Caribbean Financial Action Task Force had been excluded from the Financial Action Task Force's initiative to identify Non Co-operative Countries or Territories

International Crime

34. Both sides acknowledged the difficulties facing the region as a result of the increase in criminal activity, and in particular violent and drug related crime and arms trafficking. They agreed on the need to work together to tackle it. The discussion identified a need for further cooperation on law enforcement and prisons, demand reduction and legislation on seizure of the proceeds of crime, as well as continued economic development and poverty alleviation. The UK announced that it would support these efforts with a new fund for training, to be set initially at f,400,000 and assistance for law enforcement in the Caribbean.

Judicial Matters

35. The Forum also noted that for a considerable period discussions regarding the establishment of a Caribbean Court of Appeal have been pursued leading to a decision by Caribbean Heads of Government Conference in 1988 that such a Court be established replacing the jurisdiction of the Judicial Conunittee of the Privy Council. It was further noted that the development of a Single Market and Economy within the Caribbean Community had highlighted the need for a mechanism for the resolution of disputes arising from the interpretation and application of the Caribbean Community Treaty and associated Protocols. In this context the concept of a Caribbean Court of Appeal had been expanded to embrace not only the appellate jurisdiction now exercised by the Judicial Committee of the Privy Council but also an original jurisdiction to deal with disputes arising under the Caribbean Community Treaty and associated Protocols.

36. The UK and Caribbean countries agreed that as a result of remarks made by UK Judges and others there had been several misunderstandings in the past over the position of the British Government in respect of continued access by Caribbean countries to the Judicial Committee of the Privy Council.

37. The British Government made it clear that the facility provided by the Judicial Committee of the Privy Council would remain for so long as the Caribbean countries wished, without any pressure being exerted by the UK for countries to establish their own system. The UK felt that mutual understanding on such issues could be improved, and a regular dialogue under the umbrella of a UK/Caribbean Jurists' Association, the establishment of which the UK proposed at the Forum, should contribute positively to this process.

38. The UK noted that within the region there may be a desire to create a final court of appeal. The UK understood that desire and indicated that if that were to be the wish of the countries of the Caribbean who currently have access to the Privy Council the UK would wish to give support and assistance if that were desired.

Follow-up Mechanisms

39. All delegates agreed the need for an effective mechanism to follow through on points raised during the Forum. They agreed to the establishment of a UK/Caribbean Forum Committee, consisting of representation on behalf of the UK, Caribbean governments, the UK's Overseas Territories and the CARICOM Secretariat, co-chaired by the UK and the Chair of the CARICOM Council -for Foreign and Community Relations at the time. The Committee will meet, in London, at least every six months.

40. The Committee will report on progress on action points agreed during the Forum, identify any necessary additional follow-up activity, and prepare the agenda for the next Forum. In order to endorse progress, the Committee will present a report to its co-chairs at Ministerial level at least once each year.

41. It was agreed that the next Forum will be hosted by Guyana in 2002.