Dionne Rose, Staff Reporter

Dr. Richard Bernal, chief trade negotiator for Caricom. - file

A disagreement among the members of CARIFORUM, which represents the Caribbean Community (CARICOM) and the Dominican Republic, could cause a delay in the group completing negotiations on the Economic Partnership Agreement (EPA).

EPAs are the successor pacts to the non-reciprocal preferential trade regimes of the Cotonou Agreement and its predecessor, the Lomé Convention, which have governed European Union (EU)/African, Caribbean and Pacific (ACP) trade for more than three decades.

The Gleaner was reliably informed that the disagreement stems from the EU's offer in May to remove all existing tariffs and quota limitations on goods and services from all ACP countries, equalising its offer of concessions to poor countries under the Everything But Arms Agreement.

But to date, CARIFORUM is yet to respond to the offer, which some trade experts have viewed as a move by the EU to entice negotiators to settle quickly on the EPA.

According to the source, CARIFORUM is unable to agree on a counteroffer.

"The disagreement relates to how much liberalisation and, in the case of some countries, whether they will be called upon to give any reciprocity," said the source.

Non-reciprocity

This relates especially to the least developed countries such as Belize and the Organisation of Eastern Caribbean States, which usually get non-reciprocity. But under the agreements, all participants in the agreement have to participate in liberalisation.

"If all the participants in the agreement don't participate in liberalisation, they won't be able to get the agreement (EPA) passed by the WTO (World Trade Organisation) ," the source pointed out.

The WTO had forced the EU and ACP to open talks seven years ago on a new set of agreements called EPAs, that will, as of January 1, 2008, govern trade and aid relations between the two blocs. This is after the EU had made it clear the old arrangements could no longer work.

When contacted yesterday on the matter, Dr. Richard Bernal, head of the Caribbean Regional Negotiating Machinery, who is lead negotiator for CARICOM, admitted that the group was facing difficulties in concluding the negotiations.

Schedule slipped

"The schedule has slipped very badly and there is a serious risk that we will not be able to complete negotiations on the agreed schedule," he said.

He warned that if CARIFORUM does not adhere to the schedule, the group would be exposed to a less beneficial European trade regime, which would have adverse implications for access and exports to the EU market.

"It is imperative that within the next few weeks CARIFORUM, in particular CARICOM, makes decisions on certain fundamental issues so that negotiations can proceed and give the region the possibility of completing the negotiations before the end of the year," he said.

dionne.rose@gleanerjm.com