Impact of the EU-UK Trade Agreement on Caribbean Exporters

International Trade Working Paper 2022/02 ISSN 2413-3175 © Commonwealth Secretariat 2022 By Paul Goodison

Paul Goodison (PhD) (retired) was formerly responsible for the epamonitoring.net website and a dedicated series of briefings (114) on the impact of the Brexit process on African, Caribbean and Pacific trade with the UK and EU27. His early experience was as director of the European Research Office (ERO) — a Brussels-based independent NGO research office on EU relations with Southern Africa. Any views expressed are those of the author and do not necessarily represent those of the Commonwealth Secretariat. Please cite this paper as: Goodison, P (2022), ‘The Impact of the EU-UK Trade and Co-operation Agreement on Caribbean Exporters’ International Trade Working Paper 2022/01, Commonwealth Secretariat, London. International TradeWorking Paper series promptly documents and disseminates reviews, ana- lytical work and think-pieces to facilitate the exchange of ideas and to stimulate debates and discussions on issues that are of interest to developing countries in general andCommonwealth members in particular. The issues considered in the papers may be evolving in nature, lead- ing to further work and refinement at a later stage. The views expressed here are those of the author(s) and do not necessarily represent those of the Commonwealth Secretariat. For more information contact the Series Editor: Dr Brendan Vickers, b.vickers@common- wealth.int. Abstract The UK’s departure from the EU customs union and singe market has created new trade challenges along triangular supply chains where goods have to cross on EU/UK border prior to delivery to the final customers. This affects both Caribbean-to-UK-to-EU and Caribbean-to-EU-to-UK supply chains. Agri-food products are most seriously affected since these products face the highest MFN tariffs, strict phytosanitary import controls and are often more commercially sensitive to delivery delays. While many Caribbean export sectors are affected, the worst affected products appear to be sugar, rum, fruit and vegetables (including bananas), fisheries products and to a lesser degree cocoa-based products. The current arrangements have disproportionately large effect on small firms than larger exporters. Significantly, policy initiatives can facilitate private sector adjustments and mitigate challenges faced by Caribbean exporters.