- CIBC FirstCaribbean appoints new CIO, managing director Read More
- Sam Lord’s Castle: Into The Future Read More
- North pull it off Read More
- Easy, breezy Butterfly Read More
- Role of Christ’s soldiers in society Read More
- Solidarity now an empty slogan Read More
- King Bubba on Bequia stage tonight Read More
Now Brexit has been triggered, does the Caribbean have anything to fear?
As I see it, the possible options for post-Brexit United Kingdom-CARICOM/CARIFORUM trading relations are as follows: interim arrangement which preserves Economic Partnership Agreement-level concessions before a free trade agreement (FTA) can be negotiated; negotiation of a UK-CARICOM or UK-CARIFORUM
FTA; Commonwealth FTA; Most Favoured Nation (trading under World Trade Organisation rules).
The prospect of a Commonwealth-wide FTA has been floated informally, although it does not yet appear to be a firm policy proposal. The arguments for a Commonwealth FTA include a ready market of over 2.4 billion people yoked by a shared language and history, common principles and values, respect for the rule of law, the common law legal system, all of which form part of the “Commonwealth Advantage”.
Additionally, it is argued by proponents of a pan-Commonwealth FTA that the potential for even greater intra-Commonwealth trade and investment should be harnessed as a buttress against rising protectionism and slowing global trade which are potentially harmful for Commonwealth developing states.
Nonetheless, while I have not done any econometric analysis on what would be the possible economic and welfare benefits of any Commonwealth FTA for CARICOM/CARIFORUM, given the length of time it may take to negotiate
a Commonwealth FTA, the varying levels of development, the differences in economic profile, and the diverse offensive and defensive interests of the various Commonwealth member states which will need to be managed,
the negotiation of a Commonwealth-wide FTA will not be an easy task.
Therefore, I submit that the Caribbean region’s interests will, at least in the short to medium term, be better served by either negotiating an interim arrangement with the UK which preserves EPA-level concessions until an FTA can be negotiated or negotiating an FTA with the UK straight off the bat.
Commitments made under any prospective UK-CARICOM/CARIFORUM free trade agreement should take into account the sustainable development and economic growth needs and interests of both parties in a mutually beneficial way, while also taking into account differential levels of development among CARICOM/CARIFORUM countries.
CARICOM/CARIFORUM countries will also want at least the same level of concessions for their service suppliers, particularly in Mode 4 (Presence of Natural Persons) which has been the mode of supply which is the least liberalised.
Additionally, as capital-importing states, CARICOM/CARIFORUM countries will likely wish to negotiate an investment chapter which protects, promotes and liberalises investment between CARICOM/CARIFORUM and the UK for the mutual development of both parties.
Of course, stakeholder consultations with not just the private sector but also civil society and citizens at large should continue to inform the region’s negotiating positions, including whether there is actually the need for a UK-CARICOM FTA and what are the region’s offensive and defensive interests.
Although the argument is often rightly made that the Caribbean region will be at the low rung of the negotiation priority ladder, I believe that the region cannot sit idly by as the clock begins ticking. While other major countries have begun to erect barriers, the May Government’s “Global Britain” outlook is a welcomed open door for the region.
We should at least signal to the May government our interest in beginning talks on cementing a mutually beneficial UK-CARICOM/CARIFORUM trading arrangement post-Brexit, and take steps to do the ground work for such an eventuality.
Taken from an analysis published by Caribbeantradelaw.com and authored by Alicia Nicholls, a trade and development consultant.