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Office of the Prime Minister

PM Allays EPA Fears

KINGSTON (OPM)
Monday, May 05, 2008

Prime Minister Bruce Golding is again seeking to allay fears that CARIFORUM countries may have given up more than they will gain from the Economic Partnership Agreement (EPA) with the European Union. He was speaking on Friday (May 2) at an EPA familiarization seminar for attorneys hosted by the law firm, DunnCox.

Mr. Golding said the one-way preferential arrangement that existed under Lome could not continue indefinitely as it contravened World Trade Organization (WTO) rules. He said producers and exporters could now access a market of 450 million persons with a per-capita income of approximately US$17,000. He said the negotiators have also sought the inclusion of a stratified timeline for reciprocal duty free and quota free access of goods and services between Europe and the region. This, he said should give manufacturers enough time to adjust to dealing with tariff-free competition. He said the EPA also offers protection against unfair trading practices which can also be accessed under the WTO.

Mr Golding said concerns that the agreement was hastily concluded are unfounded as, after a seven year period in which the region should have arrived at a successor arrangement to the Cotonou Agreement, much of the negotiations for the EPA were actually done in the last three months before the deadline. He said if the EPA had not been concluded, exports from CARIFORUM countries into Europe would have been subjected to the general system of preference under which import duties would apply. The duties he stated would have effectively made local exports to Europe uncompetitive.

The Prime Minister said improving country productivity and product competitiveness would have been necessary whether or not there was an EPA, based on increasing competitiveness in the global market.

Mr. Golding argued that Jamaican manufacturers and exporters have not been looking to Europe as a viable export market possibly because of the travel distance involved. He said now was a good time to seek out opportunities in Europe especially as it relates to niche marketing.