PM knocks trade officials, media

Trade officials and the media here have been slammed by Prime Minister Dr Ralph Gonsalves for not putting the matter of the Economic Partnership Agreement (EPA) between CARIFORUM and the European Union (EU) more in the public domain.{{more}}

In fact, speaking at a press conference following a meeting between CARIFORUM and EU’s Trade and Development and humanitarian commissioners, held in Jamaica on October 4 and 5th, Dr Gonsalves admitted that some politicians themselves are not up to speed on the issues regarding the ongoing EPA discussions.

“It is sad…because the matter is going to affect the way in which all of us live, how we function, Dr Gonsalves said.

Reporting on the meeting, Dr Gonsalves told journalists that it was crucial that the agreement be completed in its entirety by year-end.

He explained, that contrary to what some commentators may suggest, it would not be in CARICOM’s best interest to have the agreement incomplete or only have the free trade aspects organized by the year-end deadline.

In the first instance, if the EPA is not completed, then the World Trade Organization (WTO) waiver for the Cotonou agreement (signed in Cotonou, Benin on June 23, 2000) between the EU and Africian Caribbean and Pacific (ACP) would expire.

He said that means that a roll over would be needed from the WTO, and the informed opinion is that the WTO would not accommodate such a request.

Additionally, because of the negative economic implications that the agreement could have on the region, it is crucial that the key developmental aspects of the agreement be in order,

along with the free trade aspects.

This economic impact is evident by the independent study commissioned by the Commonwealth, which suggests that the EPA could result in an adjustment cost of up to 938 million pounds loss of revenue from import duties and charges.

As regards the market access aspect of the agreement, Dr Gonsalves had the following to say: “Negotiations for market access for goods remain among the most challenging for the finalizing of the negotiations.”

He explained that the EU was pushing for 80 percent of their goods traded to the region to be given duty free status.

The Prime Minister, however, explained that as

market access is given, efforts have to be made to especially protect the agricultural sector.

He explained that because of the subsidies already given by Europe to various agricultural industries, if these commodities are allowed into the regional market, duty free, it will make competitiveness extremely difficult for the local agricultural sectors.

This is why the regional heads are suggesting a phasing in of the free trade arrangement, that would see 75 percent of the goods exported by Europe be made duty free over a 15 year period.

He explained that attempts will have to be made to keep the goods that could jeopardize the local agricultural industry out of the earlier “basket of goods” for tax exemption.

Additionally, he said CARICOM and its partners would like this liberalization process to begin in three years time, while the EU wants it to commence in one year’s time.

Another key element of the partnership being hammered out, Dr Gonsalves explained, is the Most Favoured Nation treatment issue.

In a nutshell, no agreement could be entered into with another developed nation that is more favourable than the one being signed with Europe.