EPA Review Annex Documents - DFID

access to the EU. The Caribbean countries all agreed to eliminate tariffs on the same
common list of imports from the EU and included a regional preference clause in their EPA
extending the same tariff concessions to each other as to the EU (the Regional preference
clause all applies to services and investment).
The initiative of CARICOM Single Market and Economy (CSME) was launched in January
2006 and fully implemented by the end of 2008. It calls for free movement of capital, goods,
services, skills/labour and the establishment of the Caribbean Court of Justice. CSME has
common external tariff and rules of origin. All goods entering the CARICOM which meet the
CARICOM rules of origin are traded duty free throughout the region. However, there are still
some specific non-tariff barriers in various member states. CSME has tried to establish its
own regional harmonisation of standards – Caribbean Regional Organization on Standards
and Quality which is responsible to set up regional standards that all member states must
adhere to in the manufactures and trade of goods. It also establishes regional accreditation
for education in medical and other health professions, free movement of skilled workers, free
trade in services among member countries to facilitate trade and investment in the services
sectors.
The CSME is designed to represent a single economic space where people, goods, services
and capital can move freely. Many of required changes have been made by participating
countries/territories on a gradual basis, in keeping with national programs for the removal of
restrictions on the right of establishment, the provision of services and movement of capital.
The strengthening of CARICOM’s participation in the global trading arena has been done
through a series of bilateral trade agreements with Venezuela, Colombia, Dominican
Republic, Cuba and Costa Rica. Given each individual member state represent an
insignificant share of the world trade, CSME is an important platform for the region’s trade
and economic linkages with the rest of the world. It gives small states the benefits of greater
critical mass, pooled resources, achieving greater economies of scale. The establishment of
harmonised rules and the creation of regional mechanisms and institutions as common base
enable the region to simplify its approach to the negotiation of relevant issues with other
regions and the rest of the world.
As mentioned previously, EPA countries in the Caribbean region have different economic
characteristics compared to the Africa region. Regional integration was well under way and
regional integration initiatives were better implemented. With or without the EPA, regional
integration in the Caribbean will continue. With the EPA in particular, with extra help and
technical assistance in the areas of standards, regulations, SPS, services, and enhances
and accelerates regional integration.
Pacific Regional Economic Integration Programme
The unique feature of Pacific countries compared with other ACP countries in the EPA
negotiations is that they are far away from Europe and have little trade with the EU. For
example, Fiji total net import from the EU accounted for about 2% of its total imports. Given
such small bilateral trade between the pacific countries and the EU, it is not surprising that
there is little appetite for negotiating trade in goods with the EU apart from Fiji’s export of
sugar under the sugar protocol with the EU. With regards to canned tuna, which applies to
Papua New Guinea as well, it is protected and has better market access to ACP countries
compared with others by the TRQ in the EU. However, in both cases, the preferential
margins (preferential prices) have been reduced. Granting preferential entry to goods from
the EU would trigger demands for similar preferences from Australia, New Zealand under
PACER and to the USA under the Compact Agreements.
Pacific countries are interested in exporting labour services especially requesting quotas for
the temporary entry of workers in the hospitality, health and construction industry and
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