Concluding observations on the Cariforum-EC, EPA

By Dr. Clive Thomas

 18 weeks later
When I started this evaluation of the Cariforum-EC, EPA on January 20, I had not envisaged that I would still be at it 18 weeks later.  In this the final column of the series, I shall respond to what has been easily the most frequent question asked by readers. That is, given the many defects of the agreement, which few should be considered the gravest? Because the EPA is both a documented agreement that warrants immediate analysis and a long-run instrument through which policies, programmes and activities are to be implemented, the final verdict must await its actualisation. However, among the deficiencies, four will become progressively burdensome.

Regional integration
First, the EPA will progressively hamper Caricom’s efforts at promoting open regionalism, utilizing the region’s markets and resources as the platform for liberalisation and progressive engagement in the global economy. To start with, Cariforum is an EC inspired abstraction given legal form in the EPA. This construct is not a Caricom initiative and indeed prior to the EPA there was not even a Caricom-Dominican Republic customs union area.  Additionally, Caricom has not yet created within its integration framework regimes for services, investment, intellectual property, public procurement, competition and other trade-related areas. The construction of an EPA with agreements on these matters not already in place constrains Caricom’s capacity to direct their outcomes.  The region has therefore, put the cart before the horse. This weakness will become progressively grave.

This will be aggravated by the consideration that organizational structures of the EPA have more sway over Caricom affairs than Caricom’s Secretariat, organs and other bodies.

Financing and the development dimension
Second, it will become progressively burdensome that the most insecure aspect of the EPA is its ‘development dimension.’ This rests largely on the definite provision of EU development assistance to boost Caricom/Cariforum’s institutional, infrastructural, and regulatory capacity at the national and regional levels, so as to promote a sustainable expansion of the region’s exports to the EU and the rest of the world. But as I have revealed no additional funding is provided through the EPA. Promised EC assistance through the 10th EDF and the Aid-for-Trade proposal is not contingent on signing an EPA. This observation is supported by statements of no less an influential spokesperson than the EC Development Commissioner.  When asked: “Will there be additional financing beyond the EDF to accompany the EPAs?” his reply was, “This is a question I am often asked. I have to say that as far as the EDF and the Commission are concerned there will be no further funding.”…..