St. Kitts PM says proposed trade agreement between St. Kitts and Nevis and Brazil would be a “win-win situation”
BASSETERRE, St. Kitts – The proposed ‘The Partial Scope Agreement’ between Brazil and St. Kitts and Nevis will be a “win-win” situation providing an important opportunity for the manufacturing sector in St. Kitts and Nevis to expand its horizons.
“Several products made here in St. Kitts and Nevis find their way to Brazil already, but I believe they do enter the market with an applicable 30 percent tariff. From the perspective of St. Kitts and Nevis, the attainment of a duty-free trade agreement, similar to the Caribbean Basin Initiative, and what is operated between Brazil and Guyana, is vital in order to secure the opportunity for increased production in locally-based manufacturing facilities,” said St. Kitts and Nevis Prime Minister Hon. Dr. Denzil L. Douglas.
In brief remarks at a cocktail party hosted by the Board of Directors of the local manufacturing company, PPC-Kajola Kristada, Dr. Douglas noted that Brazil, with a population of over 290 million people, “represents that chance for manufacturing facilities to at least double their production, given the fact that the traditional U.S. market has experienced a down-turn in housing, and has reached saturation point in some areas.”
Dr. Douglas said that businesses are operating today in very challenging environment and the current global economic and financial circumstances mean that the route to long-term sustainability in the business world calls for careful, yet progressive, approaches to achieve profitability and the chance to reinvest for future growth and prosperity.
“Such is not easily achieved without diligent work and commitment to change, to expand beyond the comfort zone, and often, to take strong leadership in areas of expertise in industry, and certainly, to advance the opportunities for trade outside traditional markets,” said Prime Minister Douglas, who is also Minister of Finance.
He said positive progress is being made on the trade agreement, following the first round of discussions in April last year and preparation for another round of negotiations next month February that would focus and advance much of the required technical work.
“I am pleased to tell you, also, that the Ministry of Trade received valuable support in the form of technical assistance from the CARICOM Secretariat, in preparation for this next round of negotiations. It is in this regard that I must extend appreciation to our distinguished His Excellency Ambassador Miguel Chaves de Magalhaes, who has been of tremendous support, and it brings to the fore the value of having resident embassies here in St. Kitts and Nevis. In like manner, high commendation must go to Kajola-Kristada, especially the local manager Mr. Rosa, who has been a major driving force towards forging the trade agreement with Brazil, as well as consistent support from the St. Kitts-Nevis Chamber of Industry and Commerce. Our combined efforts, I am sure, would result soon in our signing of a The Partial Scope Agreement with Brazil as soon as the appropriate clearance is received from the CARICOM Secretariat and other formal organs of the Caribbean Community,” said Prime Minister Douglas.
He said that the agreement would “increase production for manufacturing facilities, increase employment opportunities for our citizens here in St. Kitts and Nevis, diversify international exports strategy for the Federation, enhance the country’s profile in international trade, and provide greater profitability and financial security for manufacturing facilities operating in the Federation, especially Kajola-Kristada.
Prime Minister Douglas gave his Government’s profound commitment in forging a mutually beneficial trade agreement, an agreement that impacts, not only the Manufacturing Sector, but has indirect implications for the Services Sector associated with manufacturing.
