CARIFORUM

Negotiations began in April 2004 between the 15 Countries of the CARIFORUM that are ACP states (14 of which are part of the Caribbean Community (CARICOM) and the Dominican Republic). The second phase began in November 2004 to focus on regional integration as the cornerstone of the EPA. The main focus of the EPAs has been the promotion of sustainable development in Cariforum and the key areas of work have been on Market access for Agricultural and Non-Agricultural goods, Services and Investment, Trade related issues, legal and institutional issues.

Thus far, the CARIFORUM is the only region to have concluded a full EPA with the EU. The EPA encompasses trade in goods and services, trade-related areas and development aid and cooperation. All goods are subject to duty free quota free access with the exception of sugar (an important product in this region) which is dealt with a transitional quota system and safeguard measures. The CARIFORUM has agreed to the EC's MFN clause although some member governments have expressed reservations about this, it has also been agreed that development aid will be channelled through the CARICOM development fund. Liberalization in trade in services has been agreed as well, with non-LDCs committing to 75% opening of the market and LDCs to 65%.

There are 3 important products of the Caribbean that will receive special treatment. Guyana and Surinam have negotiated an increase in their quota for rice exports over the coming years. On bananas, it is hoped that the CARIFORUM EPA will insulate small scale growers long enough for them to be able to convert to 'fair trade' practices to be able to serve this growing, niche market. Sugar is the most contentious product and has been granted special status in the EPA. The Sugar quota will increase by 60 000 tones and from October 2009, be subject to new sugar quotas from all ACP countries. Rules of origin presented a challenge due to the fragmented, small-scale nature of production in the Caribbean. It has been decided that these rules will be reviewed in 5 years. Food safety and SPS concerns are also addressed in the EPA, although no specific commitments are made. Regional differences, especially with the smaller, more vulnerable Eastern Caribbean states have also presented a challenge for the removal of internal tariffs.

For the EU, market access has been granted in the EPA with the gradual opening of the market to EU exports over the next 25 years. Government procurement clauses and agreements continue to be an issue from the EU side. From the CARIFORUM side, concerns about availability of development funds, loss of tariff revenue, and capacity constraints continue. The CARIFORUM contains only one LDC, Haiti. Had the EPA not been concluded by 1 January 2008, the majority of CARIFORUM exporters would have faced serious losses in market share and export sales. Haiti has initialled the agreement, but not yet signed. The small scale nature of production in the Caribbean means their products are often higher priced on the world market and in the case of agricultural commodities, a significantly higher price will be disastrous for sales. The necessity to conclude the EPA was real in this region.

11. Mai 2009 15:25