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EPA
agreement
marks new era
The
CARIBBEAN’s era of non-reciprocal free trade with Europe
and the rest of the world is at an end. And local producers
of goods and services have to enter the new world of globalisation
where their products and services will have to compete against
those from Europe and elsewhere on near equal terms.
It means that local businessmen will no longer have a protected
domestic economy and here the domestic economy includes
all of Caricom and the Dominican Republic.
Signed at the weekend just over two weeks before the December
31 deadline, the Economic Partnership Agreement between
Cariforum and the European Union brings to an end 300 years
of selling our bananas, sugar, rice, cocoa and other commodities
in Europe without having to reciprocate.
Fortunately, the EPA with the EU allows for a phase-in period
designed to have our local manufacturers develop their technological
and productive capacities to effectively compete against
the European imports in price and quality.
At least, however, the duty-free and quota-free access guarantees
the region’s manufacturers and producers of goods and
services the opportunity to export into rich and large markets.
There is though the caveat that these markets are sophisticated
and consumers are accustomed to high-quality goods and services
at competitive prices. It means that the days for poor-quality
goods sold to a captive market are also at an end. To access
the markets, local producers will have to come up to scratch.
Fortunately, the EPA has a developmental element to it which
could be of assistance to local and regional producers as
they seek to export into Europe. For instance, a number
of financing and technical assistance measures are included
in the agreement and are designed to have local and regional
producers compete more effectively in the European market.
The details of the EPA have not yet been rolled out for
a full assessment to be made of what has been received and
what has been given in return by Europe. But anxious to
justify the agreement, Barbados’ Prime Minister, Owen
Arthur, who has portfolio responsibility for economic matters
in Caricom, is hailing the agreement from the perspective
of Caricom having negotiated the EPA while the African and
Pacific sections of the ACP are yet to reach agreement and
African countries are seeking an interim arrangement before
coming to a final accord.
Notwithstanding the fears which may linger, the EPA has
been agreed upon and the effort now has to be focused on
Caricom as a group seeking to make best use of the opportunities
that will become available and at the same time the countries
fortifying themselves for the inevitable competition that
will arise when our barriers have to be removed even if
over time.
In this respect, the Caricom Single Market and Economy is
the imperative for survival. We have to advance the elements
of the Single Economy swiftly to allow our entrepreneurs
the opportunity to utilise all the resources of the region
to produce competitively if we are to compete in Europe.
The time for finding excuses for not making the CSME operational
is gone. Not only will we be better placed to produce and
export competitively into Europe under a fully operational
CSME, but local corporations will have to prevent the Europeans
from eating their supper at home.
While the regional technocrats opted not to consult widely
with stakeholders in arriving at a position on the EPA,
no effort should be spared in ensuring that all interest
groups understand fully what the agreement means for all
of us.
This is the start of a completely new era; the Caribbean
does not have the option of not successfully taking on the
challenge of nationhood.
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