Caribbean attacks ACP reform plan

Date: 16/04/1998

By Mark Turner

THE Caribbean is expressing grave concerns about European Commission proposals to replace its privileged EU market access with either a free trade agreement or a more restrictive tariff regime.

A report drawn up by the Caribbean Council for Europe (CCE) warns that free trade between the Union and the Caribbean group Caricom could prove highly divisive and destroy struggling small businesses.

However, the cost of accepting the alternative generalised system of preferences (GSP), with its increased tariffs, would be "prohibitively high" for the region.

"Why has the third option proposed by the EU in 1997, of an Economic Cooperation Agreement that introduces 'an element of reciprocity' disappeared?" asks the Council.

The report breaks the relative silence from the Union's African, Caribbean and Pacific (ACP) partners since the Commission called for a complete overhaul of relations after the current Lomé Convention expires in 2000.

The Commission argues that years of preferences have done little to encourage ACP development. The World Trade Organisation is also pressing it to end Europe's special relationship with its former colonies.

Although ACP leaders intend to discuss a counter-offer next month in Barbados, divisions between the 71-country group are casting doubt on its ability to orchestrate an effective response. The CCE insists however, that ACP members must suggest "creative alternatives" to the Commission's proposals.

"Should the Caribbean and ACP be asked to accept further stringent conformity with the current WTO regime that has demonstrated scant regard for the concerns of small island states and has interpreted free trade in a manner that makes it mutually exclusive to their development?" asks the report.