CARIFORUM and UK EPA Study

Republic, and Belize. The top five products by rank (SITC) for the three being, Fuels, Food and Live Animals, Chemicals, and Material Manufactures.

6.2 Summary of Findings

Trade in the region, largely tracks the regions comparative advantage and that of the countries who are the main exporters. This comports with the theory. What is notable however, is that despite classification differences certain products dominate CF exports. Given the similarity in factor endowments, other factors may in fact account for the dominance of certain countries in exports of these products to the UK. This study posits that the opportunity to spread the gains within the region may be supported by the CF-UK EPA and the Revised Treaty of Chaguaramas. The Revised Treaty of Chaguaramas at Article 52(3) mandates that the competent organs of CARICOM in conjunction with the private sector, establish arrangements relating to the prospects for successful production integration. Article 52(8) defines “production integration” as including: “ (a) the direct organisation of production in more than one Member State by a single economic enterprise; (b) complementary production involving collaboration among several economic enterprises operating in one or more Member States to produce and use required inputs in the production chain; and (c) co-operation among economic enterprises in areas such as purchasing, marketing, and research and development.” The data suggests that there may need to be renewed emphasis on such “integration” particularly in light of a policy of pursuing regional value chains. The data suggests that the pursuit of such a policy is conducive to both the legal framework within CARICOM as outlined here and the CF UK EPA, as well as the characteristics of CF trade. This was demonstrated in Section 4, characterised concentration of exports and exporters.

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