Will the Caribbean have to reset its trade relations with Britain in light of Brexit?
The United Kingdom (UK) is a major trading partner for Barbados and its Caribbean neighbours. It is a relationship that dates back to when, like Barbados, many of these regional countries were colonies of the UK.
The partnership has continued over time, and Britain is a major source of tourists, investment and trade for Barbados and its neighbours.
As a member of the European Union (EU), the UK’s trade partnership with the CARIFORUM region specifically (CARICOM plus the Dominican Republic) changed under an Economic Partnership Agreement (EPA) that came into force in late 2008.
However, in the wake of the June referendum in which the Brits voted to leave the European Union, there are implications for trade relations between the region and the UK, and by extension with the EU and wider global community.
These trade implications were recently highlighted by Barbados Private Sector Trade team trade consultant, Shardae Boyce.
She pointed out that EPA allowed CARIFORUM preferential trade treatment in the form of “duty-free access to European markets for private sector products; the possibility of setting-up a commercial presence in the EU; and the opening of the EU market beyond [World Trade Organisation] commitments in the services sector, including creative and entertainment industries.
Importantly, Boyce said the EPA was silent on the exit of member states from the EU or CARICOM.
Andrea Ewart, a Jamaica born international trade attorney based in the United States, said the Caribbean had to seek answers on several trade related questions concerning its relationship with the UK and EU.
She asked: “Will Britain decide it wants to renegotiate the terms of the EPA? Will Britain want to change the terms of its participation in the programme for development assistance and cooperation? What will the EU position be toward any attempts by Britain to change EPA terms? What does the region want and how will it position itself to achieve those goals?”
Ewart added: “Observers expect Britain to become very inward looking in the next couple of years as it shapes its post-EU future. This makes it more imperative for the region to loudly advocate for a united position aimed at minimizing the potential negative impacts of Brexit.”
Ambassador Patrick Antoine, the Organisation of Eastern Caribbean States’ chief adviser on trade, speaking at a University of the West Indies, Cave Hill Campus, Brexit symposium last week, said based on the first five-year review of the EPA, there were some areas on which the region could focus as it pursued a new trade relationship with the UK.
He said the review “suggested that access to the EU by CARIFORUM service providers was frustrated by the requirements and challenges involved in obtaining…visas”.
“This does not allow CARIFORUM service suppliers to enjoy the full benefits of the agreements. So we have issues with short term movements of business persons as was provided for,” he noted.
And while “the EPA effect on goods trade has been fairly limited”, Antoine said sectors performing well included “bananas, sugar, fruits and vegetables, cocoa, rice, frozen shrimp, citrus and rum”.
However, there was not much joy in attracting more investment from the UK and Europe overall.
“There has been no investment boom as was anticipated and I think this is also important because it points to what potentially we could ask for,” Antoine said.
