Caribbean Export OUTLOOK 3rd Edition

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Trade & Export Hot Spots

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he European Union (EU) is one of the world’s largest trading blocs, with over 500 million consumers, making it an ideal place for Caribbean

firms to export to and grow their businesses. The allure of this market has been further heightened by the existence of the Economic Partnership Agreement (EPA) negotiated between the Caribbean Forum (CARIFORUM) and the EU which is designed to enable increased trade, investment and development between the two regions. The signing of the EPA in 2008 marked a new era for the Caribbean, signifying compliance with the World Trade Organization’s (WTO) rules on reciprocal trade, and it was eagerly anticipated that Small and Medium-sized Enterprises (SMEs) across the region would be able to capitalize on the numerous opportunities to develop closer ties with our European counterparts. However, uptake has been slow, and members of the private sector and the wider business community have been left curious as to how such a seemingly complex agreement could work for them. We’ve asked the Market Intelligence team here at Caribbean Export to give readers some insight into the European market and what companies can do to prepare to export. Q: What are some of the main benefits of this trade agreement? A: The EPA provides CARIFORUM firms with the opportunity to reach new customers in 28 different target markets with wide-ranging tastes, demands, and preferences.The negotiation of the agreement has produced the following benefits for businesses across the region: 1. Predictability and stability CARIFORUM exporters no longer need to worry about uncertainty caused by fluctuating tariff rates or changing rules when seeking to export to the EU. The agreement has no end date and therefore ensures that the countries which are party to the agreement are bound by the commitments which have been made. 2. Duty free, quota free access into Europe The EPA has provided Caribbean firms with customs duty waivers and quota free access making it relatively cheaper and easier for goods to enter the European market. In turn, your customers can benefit from lower prices, and with no quotas, exporters can supply an unlimited amount of goods without restriction.