CARIFORUM and UK EPA Study

Under the CF-UK EPA, as well as under WTO rules, countries are required to put measures in place for health and safety in conformity with the applicable rules. Such measures, however, impose additional trade costs and erode the benefits of increased market access. Measures that minimize the impact of these measures on market access will, therefore, form important considerations. This is particularly so, as the precise regulatory measures vary from those that existed under the CF-EU EPA, for which most CF exporters had taken steps to be in compliance. It may be the case that, as the UK measures vary from those in the EU, the differential between the two may create opportunities for CF exporters who are able to comply with the UK measures more easily and cost effectively. Additionally, it behoves CF to take into account environmental issues as there is a move in CF countries to address sustainability head on, and in fact to ensure the “greening” of the economy through specific requirements for investment. 32 This author and other commentators have pointed to the potentially high cost of this in the short-term but in the long-term there will be significant benefits to “early movers” 33 including financing for these activities. The CF-UK EPA and its commitments on sustainability ( see for example Article 7(5) and Article 8A).

6. REVEALED COMPARATIVE ADVANTAGE

This section focuses on revealed comparative advantage (RCA) in relation to the trade in goods, while issues related to the RCA in the context of the trade in services will be addressed in Section

32 Jamaica has been holding dialogue at the highest level with various stakeholders to develop a Green Investment Strategy, to be tabled in Parliament and to shift the investment process to support a greater percentage of investment flows to the greening of the economy. 33 Wesley Hughes | New green industrial policy – beyond macroeconomic stability, https://jamaica-gleaner.com/article/commentary/20210613/wesley-hughes-new-green-industrial-policy-beyond macroeconomic-stability

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