Commonwealth Secretary-General urges members to leverage economic opportunities

Paul Clarke, Gleaner Writer

Commonwealth Secretary-General Baroness Patricia Scotland is encouraging member countries to leverage economic opportunities under “Commonwealth Advantage” to counter the fallout from COVID-19.

She said Commonwealth countries including Jamaica share historical ties, familiar legal and administrative systems, a common language of operation and large dynamic Diasporas, which help make trade and investment more convenient and efficient.

Scotland further noted that potential benefits have not been lost on countries, even as they prepare to face a severe slowdown of the global economy brought on by COVID-19.

“Strengthening the connectivity among our countries is therefore critical so that trade flows remain resilient during times of crisis. Digital connectivity will be especially important, as the need to interact virtually now, will transform the way people trade and do business. It is already a major area of focus for the Commonwealth, under its flagship Connectivity Agenda,” Scotland said.

The secretary-general said that while not a formal trading bloc, the “Commonwealth Advantage” enables member states to trade up to 20 per cent more with each other.

“Our research also shows that these countries invest up to 27 per cent more within the Commonwealth than outside of it - almost tripling investment levels five years ago, which stood at 10 per cent,” noted Scotland.

According to the last available data, Jamaica imported some US$74.22 million of goods from the UK in 2017, Jamaica exported US51.51 million to the UK.

For Canada, Jamaica exported goods valued at US$121.61 million and imported US$97.98 million also in 2017.

At the same time, the country imported from Trinidad and Tobago, goods valued at US$298.94 million and exported US$17.03 million worth of goods to its Caribbean neighbour.

Meanwhile, experts have warned of a US$2 trillion shortfall in global income for 2020, while world trade could contract by between 13 and 32 per cent.

Countries like Jamaica have already suffered massive economic downturn as a direct impact of COVID-19.

“As countries take drastic measures to fight the spread of the disease, we are seeing borders and businesses closed, domestic and international travel scaled back, and a totally transformed way of life due to social distancing. Currently, 2.6 billion people across the world are affected by their workplace closing.

“The result is a sweeping drop in economic activity, a much less active workforce, on top of growing global insecurity for the future. Without ample government bailouts, poor developing countries and small states remain the most vulnerable in the face of the pandemic,” said Scotland.

She said history has shown that with the right policies and supporting measures in place, the Commonwealth as a whole will eventually be able to overcome the economic fallout – though extremely bleak times lie ahead.

“In particular, gradually reviving trade flows amongst the 54 member countries – worth more than an estimated US$700 billion in 2019 - can play a fundamental role in boosting economic recovery, while harnessing the benefits of Commonwealth ties,” said Scotland.

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