Caribbean Private Sector Wants Good Canada-Caribbean Trade Agreement

BRIDGETOWN, Barbados CMC – The Caribbean Association of Industry and Commerce (CAIC) is calling on Caribbean Community (CARICOM) trade negotiators “to stand firm” and leverage the good relationship Canada has had with the Caribbean to secure a fairer free trade agreement.

In a statement, the CAIC said with the possible concluding rounds for a Canada-Caribbean trade agreement taking place here this week, it was cautioning against accepting a “watered down agreement” which would not be beneficial to either party and worse yet the Caribbean private sector.

The regional private sector group said that based on consultation with its Caribbean private sector stakeholders, CAIC has identified six areas of concern with the ongoing negotiations including the impact that the status of these negotiations would have on the CARICOM private sector in the event  that the trend of these negotiations continue.

The CAIC said it is also concerned that the impending withdrawal of the CARIBCAN without the enactment of the CARICOM-Canada free trade agreement and the severe impact on Caribbean export items such as rum, tapia, ground provisions, fruits, vegetables and  other food products.

It said that there were also areas that Canada are interested in receiving greater market access to based on its demonstrable export capacity such as, dairy industry, poultry, non-alcoholic beverages, sausages and apparel.

In addition, the CAIC has raised concerned about the removal of sensitive items of interest to Canada on the basis of reciprocation as well as insufficient and therefore ineffective mechanisms to facilitate CARICOM suppliers of Trade in Services.

The CAIC said it was also concerned regarding a desire to reengage the Canadian private sector that allows integration at the provincial level.

Negotiations between Canada and the CARICOM for a new trade agreement began in 2009 to replace the current non-reciprocal CARIBCAN, the World Trade Organization (WTO) waiver which allows Canada to grant non-reciprocal preferences due to expire on December 31, 2014 and the 1998 CARICOM-Canada Protocol on Rum.

The trade agreement includes market access for goods, cross border trade in services, investment, temporary entry, labour, rules of origin, information and communications technologies, customs procedures, competition, monopolies and state enterprises.

The CAIC said that the ongoing negotiations between CARICOM and Canada are heavily vested
on Canada’s side with increasing their non-energy exports to the Caribbean in particular meat, fish, vegetables and processed foods.

“These goods while increasing the variety available to the region and the competitiveness, it can have devastating effects for the territories whose livelihood will be affected by the import of these goods
from Canada,” CAIC said, noting that for example, the Caribbean may soon see the importation of canned saltfish to replace the “buljol” prepared locally.

“The success of sardines from the Canadian market is only too well known”, The CAIC said, noting also that the trade in services discussion has been insufficient to allow for meaningful mechanisms to be put in place.

“Traditionally the Caribbean region has been portrayed to be market leaders in sun, sand and sea and despite the historical offering of agricultural products, the Caribbean Community is rich in human resources and professional services.

“The EPA (Economic Partnership Agreement signed with Europe in 2008) has set a standard for services
agreements for CARICOM but we note that several of the elements which were to be of benefit in services trade have not materialized, so anything worse than that would be of little relevance.,” the CAIC added.