CARICOM and Canada have decided to launch negotiations towards a Free Trade Agreement. Negotiations are expected to commence during the course of this year and will cover a range of issues such as:

• trade in goods,
• rules of origin,
• customs procedures,
• trade facilitation,
• non-tariff barriers,
• trade in services,
• temporary entry,
• investment,
• government procurement,
• dispute settlement,
• institutional provisions

Canada is one of the OECS’ longstanding trade and investment partners. In 2006 two-way merchandise trade between the Canada and CARICOM amounted to $1.6billion. Merchandise exports from the OECS to Canada comprise mainly fresh produce. Service exports from the OECS are mainly tourism and travel. A free trade agreement with Canada will “lock in” preferential market access that Canada has provided to CARICOM merchandise exports over the years under the CARIBCAN agreement, whilst including preferential access for service providers and investors.

The OECS Trade Policy Unit is seeking your views on the issues that should be negotiated in the areas of:

• Trade in goods
• Trade in services
• Investment

On 16th December 2007, representatives of CARIFORUM and the European Commission initialled the text of the Economic Partnership Agreement. The Economic Partnership Agreement is more than the traditional free trade agreement. The text and annexes runs over one thousand pages. Its scope includes obligations in subjects such as sustainable development, trade in goods, trade in services, investment and electronic commerce, current payments and capital movement and trade related issues such as Competition, Innovation and Intellectual Property, Public procurement, environment, Social Aspects, Protection of Personal Data.

The EPA provides the Caribbean with predictable market access to the world’s largest import spending market for goods and services (US$6.4 trillion in 2006). It provides duty free and quota free market access for all goods meeting the rules of origin criteria from January 2008 except for sugar and rice which are being negotiated separately. The EPA provides market opening beyond those made in the WTO in services sectors specifically entertainment a sector in which the OECS has shown competitive advantage. Entertainment professionals including theatre and live bands will be able to perform in the EU.

Since December, The EU and Members of CARICOM and The Dominican Republic (CARIFORUM) are engaged in legal and administrative work in order to sign the Agreement so that it can form part of the law of the countries that have signed it.

The OECS Trade Policy Unit is seeking your views on what governments of the OECS can do to ensure that manufacturers and services providers can easily sell their products and services in Europe.