CARIFORUM and UK EPA Study

of their services trade regulatory requirements for market entry. When coupled with the UK’s strong preference for investment driven (i.e., Mode 3) export activities abroad, relative to many EU countries, makes the CF-UK EPA a very beneficial arrangement for CARIFORUM States.

ii. CARIFORUM’s Services and Investment Regulatory Framework under the CARIFORUM-UK EPA

Within CARIFORUM, differences in the levels and speed of development among the States are well noted, so too is the need for variable geometry, including the requirement for less than full reciprocity in the undertaking of liberalization commitments. However, it must be acknowledged that the lack of consensus positions, including the partial participation of CARIFORUM States, the sometimes widely differing regulatory requirements across sectors, and the plethora of different market access liberalization commitments by CARIFORUM States, makes the UK’s access to the CARIFORUM services and investment markets a complicated affair. In relation to Modes 1 and 2 CARIFORUM States did not enforce any strong market access or national treatment limitations on UK services suppliers, with few countries imposing limitations on Mode 2 – consumption abroad by its citizens. However, notable differences were observed at the sub-sector levels, where the commitments undertaken by the smaller economies demonstrated greater caution than those of the more developed members of CARIFORUM. This was particularly so in relation to Mode 1, where there was a greater tendency by the smaller territories to maintain unbounded commitments. This was perhaps due to the prevailing uncertainty at the time regarding the future evolution of technology globally, and the likely implications for smaller domestic services providers, as well as due to the inability of these countries to effectively regulate certain activities online, which remains a fact throughout the region. In relation to the professional services category, the picture was somewhat mixed, with CARIFORUM States undertaking more cautious commitments on Mode 1 or not making any commitments at all in relation to some of the more highly guarded/protected sectors such as legal

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