CARIFORUM and UK EPA Study

1. BACKGROUND AND OBJECTIVES

1.1 Background

On January 31, 2020, the United Kingdom (UK) formally exited the European Union (EU) and entered into a transition period, which ended at 11:00 p.m. on December 31, 2020. During that period, a new trade deal was finalized between the UK and the EU, which came into effect on January 1, 2021. Leading up to the UK’s departure from the EU, it was recognised that EU trade agreements with non-EU countries would no longer be legally binding on the UK, and it was, therefore, necessary for the UK to negotiate so-called “roll-over” or “continuity agreements” with those non-EU partners in order to preserve those trade and development related partnerships. This resulted in the CARIFORUM-UK Economic Partnership Agreement (CF-UK EPA) being entered into between the CARIFORUM (CF) States, being CARICOM and the Dominican Republic on the one part, and Great Britain1 and Northern Ireland (UK) on the other part. The resulting new Agreement is an enhanced Free Trade Agreement (FTA) which involves a strong development assistance component but effectively on a bilateral basis with the UK. 2 This Study, thus, seeks to address certain specific questions with regard to ascertaining the trade and development impact of this arrangement. Specifically, the Study seeks to provide an assessment of the trade situation by reviewing relevant trade data and statistics, as well as existing regulatory and other policy related measures, to also critically assess the areas in the trade in goods and services that could be of potentially greater benefit to the CARIFORUM region and how the Agreement could support this. The Study also seeks to address the long-term and sustainability issues that have arisen or are likely to arise under the CF-UK EPA. Importantly, the Study must

1 England, Scotland, and Wales. 2 Though it must be considered that the four countries comprising the UK trade with the CF to varying degrees, it is a single customs territory for the purpose of goods entering and exiting with modifications because of the implications of the Northern Ireland protocol.

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