Tuesday, July 6, 2021

Trinidad and Tobago Foreign Policy Towards Mexico: Revitalizing Relations and Refocusing on Critical Elements in Cooperation

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Trinidad and Tobago Foreign Policy Towards Mexico Revitalizing Relations and Refocusing on Critical Elements in CooperationTrinidad and Tobago and Mexico have maintained social and economic ties for the last four decades. The relationship has been governed by the wider Caricom/ Mexico Economic Cooperation Agreement, and by a series of non-economic agreements that were signed by Trinidad and Tobago and Mexico in 18 the Basic Agreement for Technical and Scientific Cooperation; the Agreement on Educational and Cultural Cooperation, the Agreement between the Government of Trinidad and Tobago and the Government of Mexico on Cooperation in Combating Illicit Traffic in and Use of Narcotic Drugs and Psycho-tropic Substances and Related Crimes, and the Agreement on Academic Cooperation between the Ministries of Foreign Affairs of both countries. In an era of free trade, diplomatic efforts naturally tend to be focused on the economic element. However, given the insignificant amount of trade that has been carried out between these two countries, it may be more practical for Trinidad and Tobago to pursue a foreign policy towards Mexico which will emphasize co-operation in a range of service-related areas, rather than concentrate on trade in goods. Mexico' Foreign Policy towards CaricomThe Caricom/ Mexico Economic Cooperation Agreement has been the basis of Caricom's relations with Mexico. There were no trade concessions in that agreement, which largely focused on mechanisms to improve trade, such as information exchange, trade promotion and cultural and technical cooperation. Overtures from Caricom have been made to conclude a trade agreement similar to that with Venezuela and Colombia, but without success. Trinidad and Tobago is in the process of discussing a possible Free Trade Agreement with Mexico, but generally, the latter is regarded as too competitive by the Caricom countries .


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Through the Mexico-Caricom Cooperation Programme, countries which the Organization of Economic Cooperation and Development (OECD), of which Mexico is a member, has designated as "non-cooperative", receive assistance. This non cooperation is defined in terms of those Caribbean states not effectively cooperating with the OECD in combating money laundering or pursuing tax practices which are harmful to OECD resident investors. Mexico is also pursuing an initiative to allow St. Lucia, Grenada, St. Vincent and the Grenadines, Dominica and Haiti to enter into a cooperation agreement with that country. In this respect, Mexico proposed a "Caribbean Conference on Maritime Delimitation" which was held in December 001. The Conference approved its Rules of Procedure, elected officers and opened the Registry of Maritime Delimitation Negotiations. Both Mexico and Belize registered their maritime delimitations. It would be a regional forum that seeks to encourage all relevant parties to sit at the negotiating table.Mexico favours the OAS Multilateral Evaluation Mechanism (MEM), which is aimed at evaluating the compliance of OAS members in their implementation of anti-drug measures. It also supports the promotion of new ways of cooperation against transnational organized crime. Mexico sees Caricom and the Caribbean region as forming a "third border" with that country. In the Mexican context, it is apparent that this Third Border policy has as its objective a Mexican diplomatic and economic thrust into the Caribbean. The country has thus sought to increase its trade, diplomatic relations and political influence within the Caribbean region.There is in existence a Programme of Cooperation between Mexico and the University of the West Indies. In addition, there are tertiary institutions in Mexico which participate in a scholarship programme for Caribbean and Central American students. These studies are carried out mainly at the Masters level. Among the participating institutions are the Universidad Autonoma de Quintana Roo, The UNAM, Universidad Autonoma Metropolitana, Universidad de Guanajuato, Universidad Autonoma de Puebla, Universidad Autonoma del Estado de Mexico, the National Polytechnic Institute and CINVESTAN. Trinidad and Tobago/ Mexico RelationsTrinidad and Tobago and Mexico established diplomatic ties on April 0, 166. To date, the two countries continue to enjoy friendly relations particularly since both nations played a key role in establishing the Headquarters of the Association of Caribbean States in Trinidad. A trade relationship does exist between the two regions and Trinidad and Tobago's main exports to Mexico include iron and steel, ammonia, methanol, aerated beverages, and machinery. Our main imports from that country are chick peas, natural barium, iron-ore agglomerates, poly-acetals, ethers, iron sheets, electronics, tubes, aluminium foil, and cellular plates and reception apparatus. Companies in Trinidad and Tobago, such as the Trinidad Cement Limited (TCL) and Courts (Trinidad) Limited have been conducting business with well-known Mexican companies such as CEMEX, an internationally recognized cement manufacturer, and MABE, which is involved in furniture manufacturing. CEMEX, which has a 0% shareholding in TCL, recently lost its bid to acquire the total shareholding of TCL. In addition, CARONI (175)Ltd. has benefited from the donation of plant seeds from the Government of Mexico in the implementation of its diversification programme. The Mexican company BUFETE Industrial, which maintained a strategic alliance with Caribbean Ispat, the national iron and steel company of Trinidad and Tobago, recently concluded operations. Moreover, in the area of small business development in Trinidad and Tobago, it was suggested that the Small Business Development Company, the Development Finance Company (DFC) and the Agricultural Development Bank (ADB) could benefit from cooperation with the Mexican Entrepreneurial Bank, NAFINSA (Nacional Financiera), the largest development bank in Latin America and the most important financier of small and medium enterprises. NAFINSA has indicated its willingness to assist in providing technical assistance and both the ADB and DFC have advised of their interest in establishing some form of cooperation. In addition, in 14, the Mexican Institute of Intellectual Property indicated its interest in negotiating an Intellectual Property Rights Agreement with Trinidad and Tobago. This is yet to be followed up.There have been concerted efforts over the years on the part of both countries to improve and deepen bilateral relations. In July 14, a Trinidad and Tobago delegation visited Mexico to hold talks with Mexican government officials and private sector representatives to seek support for this country's entry into the North American Free Trade Agreement (NAFTA) and to strengthen relations between the two countries. It was proposed that a Memorandum of Understanding be signed indicating the intention of both countries to undertake the following agreements on· Double Taxation· Visa Abolition· Bilateral Trade· Intellectual Property Rights· Bilateral Investment; and · Technical Cooperation (there is also an existing Technical Cooperation Agreement between Caricom and Mexico)Of these arrangements, the Visa Abolition Agreement in respect of holders of Diplomatic Official passports was concluded in 17, and an agreement for Technical and Scientific Cooperation have been signed between Trinidad and Tobago and Mexico. A Draft Memorandum of Understanding and a Trinidad and Tobago Model Double Taxation Agreement were sent to the Government of Mexico for consideration. A response is still outstanding. High level contacts also occurred in 16 when the two countries met for talks on the possibility of a Free Trade Agreement between them, with the provision for subsequent accession by other Caricom states. Other possible agreements have been discussed with a view to enhancing trade and investment between Trinidad and Tobago and Mexico.In 18, a number of agreements were signed between the two governments· Agreement on Educational and Cultural Cooperation;· Basic Agreement for Technical Scientific Cooperation;· Agreement on Cooperation in Combating Illicit Traffic in and Abuse of Narcotic Drugs and Psychotropic Substances;· Agreement on Academic Cooperation between the Ministries of Foreign Affairs of both countries.The four agreements have been ratified by both countries and have entered into force following the relevant notifications by both Governments. The decision was also taken then, to initiate negotiations for the conclusion of a bilateral Free Trade Agreement. The Government of Mexico had submitted a draft text for the consideration of the Government of the Republic of Trinidad and Tobago and preliminary discussions were held in Mexico in 17. In spite of these agreements though, Trinidad and Tobago's relations with Mexico are not as vibrant as those which exist with the former and other Latin American countries. It is felt that in an era when the FTAA will soon be the most formidable trade arrangement in this hemisphere, the island state will do well to practise a new diplomacy towards Latin America and particularly, to enhance its relationship with Mexico.The Future of Trinidad and Tobago-Mexico RelationsIn terms of economic relations, the United States is by far Mexico's largest trading partner. The coming into play of NAFTA further compounded the commercial ties. Strong growth in U.S.-Mexico trade reflects, to a great extent, the large trade volume in intermediate goods, or those that are further processed for additional export. The maquiladora trade, which by definition involves joint production facilities in both countries, actually expanded in 15 even when total US exports to Mexico fell following the 14 peso devaluation. This emphasizes the significance of efficiency gains from intra-industry trade, an important dynamic of U.S.-Mexico economic integration.NAFTA affected key Caribbean export sectors and goods, particularly textiles and apparel. To the extent that tariff differentials led to trade diversion, Mexicos welfare has been improved at the expense of the Caribbean countries. Trinidad and Tobago certainly can not compete with the United States as a trading partner of Mexico.The trade between Mexico and Trinidad and Tobago is a miniscule proportion of total trade for the both countries concerned. From 15-18 Trinidad and Tobago maintained a favourable balance of trade with Mexico. This trend was reversed in 18 however, with the trade balance plummeting from $USD 118,07.0 to -$USD 40,555.0, and continuing this negative trend the following year, as the table will indicate. Mexico's trade with Trinidad and Tobago is dominated by steel products. The export of wire rods and ferrous products comprised 5% of Trinidad and Tobago's total exports to Mexico in 15 and 88%of this trade in 16. (US$7M). Methanol is the next largest item in Trinidad and Tobago's exports to Mexico, comprising 5% (US$6.5M) and 11% (US$.M) of total exports in 15 and 16 respectively . A few minor manufactured products are also exported. Trinidad and Tobago's imports from Mexico are concentrated in the category of food preparation- milk, baby food, cereals, coffee- and other manufactures- chemical products, electronic instruments, and some machinery and tools. The existing trade is not really significant in terms of value or volume. It is dominated by products from resource based industries which require special bulk arrangements. The rest of the trade which comprises general cargo, often less than a container load (LCL), is dependent on a regular scheduled shipping service. This is one of the key factors that limit travel and trade links between Trinidad and Tobago and Mexico. The lack of a competitive, high frequency direct shipping or air service on the routes, hinders the development of trade, particularly in manufactured and semi-manufactured products, between the two countries. There is thus an urgent need for the further liberalization of air and sea transport between the two regions.Another obstacle to trade is the language barrier. At present, even though a cultural programme is in place, there is only minimal contact between the two peoples. There is a high level of ignorance on both parts, with regard to history, culture, and language, and the problem can only be rectified by more meaningful interaction between the two populations.Given the relatively low level of trade between the two countries, it is quite doubtful whether Trinidad and Tobago's foreign policy towards Mexico should be focused on concretizing commercial linkages in the area of trade in goods. Indeed, the cooperation should perhaps centre on trade in services, as well as non-economic issues such as collaboration and assistance in education, technology, health, transportation, government and external affairs, and environmental issues. In fact, cooperation in the area of tourism should be explored in greater depth, particularly with regard to consultation, exchange of information, joint promotion in advertising Trinidad and Tobago and Mexico as quintessential tourist destinations, and financing and training of human resources. The offshoot of cooperation in tourism is collaboration in music and entertainment. Trinidad and Tobago should seek to encourage the development of joint private sector initiatives that could support the music and entertainment industry. Cooperation in educational and cultural matters is a key factor in strengthening relations between Trinidad and Tobago and Mexico. Of course there is already in place a scholarship programme for Caricom nationals, of which some Trinidadian students take full advantage . Indeed, in 1, three nationals of Trinidad and Tobago were pursuing university programmes in Mexico in Tourism, Agriculture and Regional Planning. Another was undertaking research at the prestigious Colegio de Mexico, and two other nationals were offered scholarships to pursue studies in Tourism. Since then, additional scholarships have been granted by the Mexican government in a number of areas, especially the area of education. However, there needs to be a consultation mechanism that will make it possible to streamline cooperative activities and projects in the fields of education, restoration and conservation of the cultural heritage; painting and sculpture, music, dance and theatre; archives, libraries and publications; audio-visual material; youth and sports. Special emphasis should be placed on the problem that language differences present in realizing exchanges in education and scholarships and therefore, efforts should be geared towards preparing Spanish and English language promotion programmes. In terms of technology transfer, the telecommunications sector is undergoing rapid transformation in Central America on the whole, and as such, Trinidad and Tobago and Mexico should encourage collaboration and co-operation between information technology and telecommunications providers in both regions, as well as develop joint statistical projects that collect data and information on inter-regional investment, migration and business activities in the countries. Moreover, technical workshops should be promoted to build regional knowledge of the markets, and stimulate entrepreneurial interest and participation in the industry. The possibilities for collaboration between Trinidad and Tobago and Mexico are endless. Admittedly, import/export activity is of the utmost importance in this era of trade liberalization; but smaller economies like Trinidad and Tobago must think "outside the box" in order to maximize the benefits they can obtain from linkages with their more developed counterparts.


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