Business after Brexit

ACKNOWLEDGING that there is some consternation surrounding Britain’s exit from the European Union (EU) by the end of this month, an assurance has been given that the proverbial rug would not be pulled from under the region in the process.

The assurance was given by British High Commissioner Her Excellency Janet Doughlas at her official residence BenMar on Wednesday night during a high-level networking event, where she noted many persons were anxious to hear about Brexit.

She explained that the new CARIFORUM-UK Economic Partnership Agreement will support development and economic growth in the CARIFORUM signatory states after Brexit. The countries that will be covered by the CARIFORUM-UK EPA are Antigua and Barbuda, Barbados, Belize, the Commonwealth of Dominica, the Dominican Republic, Grenada, Guyana, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines and Trinidad & Tobago. Countries that have approved in principle and are expected to sign shortly are Bahamas and Suriname.

According to High Commissioner Douglas, “Our government is very much open to secure a deal with the EU in the coming weeks over the terms of our exit. But the Prime Minister is clear that the UK will leave the EU on October 31 with or without a deal. So we have been working hard to ensure that whatever the outcome and whatsoever are the terms of the UK’s exit, there will be as little an impact as possible on UK/Caribbean trade relations,” she stated.

She stressed that the key to this has been the negotiation of the CARIFORUM/ UK Economic Partnership Agreements.

“The agreement is one between the UK and 12 CARIFORUM countries who have signed up to an agreement which effectively replicates the existing agreement between the EU and CARIFORUM governing the trade relationship between the two blocs.”

“The idea is that the new agreement which is being signed between CARIFORUM countries and the UK effectively replicates the existing EU CARIFORUM agreement. So that as far as possible trade between the UK and the Caribbean will carry on as it is now on the day after we leave the EU.”

In this new CARIFORUM/UK EPA, the UK commits to providing immediate duty free and quota free access to goods, exported to the UK from the signatory CARIFORUM countries. In exchange, these 12 CARIFORUM States commit to gradual tariff liberalisation of goods. Some domestically sensitive products in these CARIFORUM states are excluded from tariff liberalisation.

“I hope that provides all those people who might feel a little bit concerned about the implications of our departure. With some kind of reassurance that to all intents and purposes, even if the UK leaves the EU without a deal, that on the day after we leave, trade will be able to continue as it is now.”

She said this is of particular value, since as of 2017, the total of trade between the UK and the Caribbean was worth around £2.5 billion.

“When you think about the size of the markets; there are quite a lot of small markets, but together for a region that represents a loss of trade. We want the EPA and its replication to allow the UK to continue building that healthy trading relationship between ourselves and the Caribbean that we all want to see,” she said. (JH)