The View from Europe
By David Jessop

Two weeks ago I wrote about the need for Caribbean
industries to prepare detailed briefing papers for
Caribbean Governments, Caricom and the Caribbean
Regional Negotiating Machinery (RNM). This was so that
Ambassadors negotiating on behalf of the region on
trade matters that will affect the viability of every
economy and industry in the region have any chance of
success.

In that column I cited a number of examples, chosen at
random from across the region, indicating some of the
issues that certain industries needed to address. The
electronic mailbag I received subsequently – the
largest since first writing this column - indicated
that this had touched a raw nerve. Almost every single
letter was in one or another way asking how best the
region and the industry concerned should prepare.

My starting point in replying was that the questions
being asked were about a process that was underway and
accelerating.

In the Free Trade Area of the Americas negotiations in
Panama, Caribbean negotiators are under pressure from
the US and by extension Canada, Mexico and like minded
nations in Latin America to agree to a timetable of
tariff reductions. The outcome may be that the region
is on the verge of making concessions that will see
applied tariffs on imports into all Caribbean markets
reduced substantially over a short period. If taken
this will be a decision that will effect the
competitiveness of every single Caribbean industry.
But it will do more.

If this is the route followed, whatever is agreed in
the FTAA process will determine the starting point of
the region in global trade negotiations to reduce all
tariffs. These take place in the World Trade
Organisation over the next twelve to eighteen months.
In these negotiations the Caribbean will find itself
under pressure from Europe and others to agree to
further and substantial tariff reductions. It may also
find that by virtue of having agreed to make
reductions on applied tariffs in the Americas process
its room for manoeuvre is limited not least by its
neighbours in the Americas.

This in turn will all but pre-determine almost all of
the region’s position when it eventually comes to
address, in 2004 the issue of Economic Partnership
Agreements with the European Union and possibly its
future relationship with the ACP group of nations.

These are of course strategic calculations for
Governments who must determine how best and over what
periods to re-position the region to survive in a
world of open competition. But at a lower level
industries and companies, those who will be directly
affected, can not just sit back and complain if they
do not like the outcome.

First each industry needs a road map of the three
negotiations and must understand how to develop and
insert their position into the process. This is not
the stuff of the endless seminars. Rather it a single
workshop at which key players make the effort to first
understand the nature of each process and determine
how what is happening might impact on or be turned to
the benefit the industry concerned

Secondly, it will be advisable to undertake an audit
to determine in detail how and in what way the any of
the three negotiations may affect positively or
negatively any industry or major company.

Thirdly, from this a confidential position paper
should emerge setting out in practical terms and in
the ‘language’ of the negotiation concerned exactly
what an industry requires.

This then needs to be discussed with and formally
presented in parallel to the RNM, Government and to
Caricom for eventual consideration by regional trade
ministers in order that it formally a part of a
regional position.

Fourthly it needs to be understood that this is the
start not the end of a process that needs to be
monitored almost daily though establishing a basis on
which timely intelligence can be received, discussed
and reacted to.

Fifthly there is a need to be seen at least once a
year in Brussels, Geneva or when appropriate in the
very different Americas process. The impact of a well
prepared direct representation by the private sector
to Government representatives of the EU or let is say
India, Brazil or Australia who may have different
positions or none at all, often has a powerful effect.
That is why every major industry in Europe and North
America is either directly or though representatives
almost daily promoting their cause in negotiating
capitals.

Sixthly if strategic alliances with like-minded
industries elsewhere in the world can be created they
should be. Private sector diplomacy works wonders for
both Governments and industries.

And finally industries with well thought through
positions and an able spokesperson should ask their
governments to be included in negotiating sessions
affecting their industries.

Many industries will read this and say that this is
impossible and too expensive. They may be right about
the costs but they should compare this with what is at
stake. They should also be asking their Governments,
Cariforum and others if they might facilitate access
to external funding to support their capacity to build
a position. The WTO, the EU, the OAS, the IDB and
others have such funds available for government. Under
certain circumstances they can be extended to
non-governmental actors to prepare for or to enable
them to participate in negotiations.

For a practical example of what can be achieved you
only have to look at the Caribbean rum industry. Ably
led and perhaps better financed than many Caribbean
industries it has deployed with success its position
across all of the negotiations. It has been able to
obtain, albeit with some difficulty, a very
substantial package of support from the European Union
to enable its transition into a near to fully
liberalised sprits market.

All industries should be aware by now that an
opportunity lost or not taken in any of the three
trade processes will be lost forever.

David Jessop is the Executive Director of the
Caribbean Council and can be contacted at
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May 17th, 2002



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