OECS member states have agreed on a common list of products imported from the EU which will be excluded from tariff liberalization once the CARIFORUM EU Economic Partnership Agreement comes into effect next year. This was one of the main outcomes of a meeting of trade experts held in Dominica last week. The OECS exclusions list comprises largely of agricultural products, products produced or manufactured in the region and products which are revenue sensitive. Recent studies conducted on the OECS show that most OECS territories have international trade transactions accounting for over 60% of their total tax revenue. These revenues would generally be used for social and economic infrastructure.

The OECS exclusions list is currently being reviewed by member states, following which it will incorporated into the CARIFORUM market access offer for discussion at a meeting of CARIFORUM senior officials on EPA Negotiations scheduled for September 19 – 20 in Trinidad.

Meanwhile work continues in earnest on the list of products imported from the EU which will be subject to phased tariff reductions. OECS trade experts will continue to consult on this at the national and regional level in an effort to finalize a harmonized position. In addition OECS member states and Belize as the less developed countries (LDC’s) in CARICOM will also engage in discussions to ensure that there is harmonization among the group where tariff liberalization for EPA negotiations is concerned.

The Trade Policy Unit at the OECS Secretariat is working closely with the EU funded Hub and Spokes Project in providing technical assistance and advice to member states on tariff liberalization. Virginia Paul, Head of the Unit explains that working with two schedules of items representing the common positions of the less developed countries and the more developed countries (MDC’s) has been the recommended approach to the negotiations. Such an approach is considered more efficient and less cumbersome than dealing with the fifteen schedules of CARICOM member states and is expected to reduce the complexities of the CARIFORUM EU EPA negotiations. More significantly it is expected to make the CARIFORUM region more attractive to economic activity, as it will facilitate and enhance prospects for business.

The CARIFORUM-EU EPA negotiations are aimed at the drafting of a free trade agreement which will redefine the trading regime between the European Union (EU) and the CARIFORUM countries.  The intention of such agreements is to remove barriers to trade between the parties. These barriers can take the form of tariffs imposed on imported items at the ports or quotas among other measures.

Note: The fifteen member CARIFORUM states comprise the independent CARICOM member states and the Dominican Republic.