The Week in Europe

By David Jessop

 

On December 8th, President Fidel Castro announced to Caribbean Heads of Government meeting in Havana to celebrate the fortieth anniversary of Caricom-Cuba relations, that Cuba had decided to apply to become a signatory to the Cotonou Convention. 

 

This is Cuba’s second attempt at becoming a full signatory to the Cotonou Convention; the aid, trade and development treaty signed in 2000 between the African Caribbean and Pacific group of nations (the ACP) and the EU. 

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In 2000 Cuba had indicated that it wished to sign the ACP/EU Treaty and would in doing so abide by its political clauses that require that all signatories meet certain standards in respect of democracy, respect for human rights and fundamental freedoms. Despite this the EU Council was unable to agree at that time to accept its application. Certain EU states objected suggesting that Cuba would have to be suspended immediately it became a signatory. 

 

Faced with this situation the EU Council of Ministers agreed that there would be an EU fact-finding visit to Havana.  Cuba saw this as an affront and suggested that this was a reflection of the EU's desire to interpret the Convention’s conditions in a manner that up to that time had not been applied to any other ACP nation. As a result Cuba retired its application before the EU mission could report one way or another. 

 

As a result Europe’s relationship with Havana has continued to be governed by the EU’s common position on Cuba. This imposes political conditions on any improvement in EU/Cuba relations. It also has the effect of ensuring that the US President continues to waive every six months the extra-territorial provisions of the Helms Burton legislation relating to trade with and investing in Cuba. 

 

At its most recent six monthly review of European policy towards Cuba, the EU Council noted that there was an open and constructive dialogue with Cuba, some positive signs in the field of greater religious freedom, the non-application of death penalty and greater economic opportunities for individuals. However, it also stated that there had been no progress in other areas of concern. As a result the EU Council’s reaffirmed on December 10 ‘that the Common Position is still valid and remains the basis of the European Union's policy towards Cuba’. In so doing it seemed to suggest that any new application to join the Cotonou Convention will be rejected. 

 

For Cuba, seeking to become a signatory to the Cotonou Convention is an important strategic step. It denotes Cuban recognition that if it is not to be isolated as a trading nation it has to find a structured and WTO compatible way to link its slowly developing socialist market economy with that of its near neighbours and with a major trading bloc. It also needs to do so with other developing nations. Attempting this through the medium of the ACP group of nations with which it enjoys excellent relations would place Cuba squarely at the centre of the largest global grouping of developing nations. 

 

Full membership of the Convention is also attractive to Cuba as it offers involvement in a trade and development framework. For Cuba this is particularly important. It is the only nation in Latin America and the Caribbean not to have some form of association agreement with Europe. It continues to suffer the effects of the US embargo and will find itself after 2005 increasingly isolated in the Americas as the United States will not accept Cuba as a member of the Free Trade Area of the Americas.

 

It also suggests a strategic decision in relation to the United States. Cuba is unable to forecast how or over what period of time the US embargo will end. As a consequence it must continue to balance its relations with other influential regions. A deeper relationship with Europe would not only potentially offer development assistance but a way to deepen its economic relationship with Europe that is in the process of enlarging to embrace many of the former Eastern bloc nations with which it continues to trade.

 

The opening of ACP negotiations with Europe aimed at achieving, in part, a region specific free trade agreements, known as Economic Partnership Agreements (EPAs) with the Caribbean by 2008 must also be attractive to Cuba. This offers the opportunity to change for all time the nature of its relationship with Europe and avoid the danger of isolation economically in the region within which it is located. 

 

Cuba’s decision to seek to become a signatory to Cotonou also raises a number of intriguing political and economic questions. Cuba has been considering carefully for some time the impact of its inclusion or exclusion from the Caribbean EPA and the impact of WTO negotiations. 

 

The creation of a Caribbean EPA with Europe will require the Caribbean achieving through Caricom a regional consensus on such issues as tariffs. If Cuba were to become a signatory to the Cotonou Convention and a part of any EU/Caribbean EPA, it would have to harmonise its approach with that of Caricom on a number of complex issues. These include questions relating to the nature of future access to the EU market for Caribbean commodities; the phasing of transitional periods before full reciprocity is granted in relation to sensitive goods (especially agriculture); adoption by the Caribbean of European standards; the need for differentiated treatment within an EPA; and participation in programmes designed to build capacity to address the market opening required by EPAs. It may also have to deregulate prices for example and adapt its economy further in order to compete in increasingly liberalised markets. In other words carefully thought through with long phases in periods participation in an EPA might create interesting economic reforms in Cuba that might also be attractive to the EU.

 

Even if Cuba does not join succeed in the immediate future in becoming a signatory to the Cotonou Convention and a part of the Caribbean EPA it will be important for Cuba to stay close to CARICOM as they negotiate within both the FTAA and the Cotonou process. There will the need for coherence in Cuban and Caricom policies as the parallel processes move forward.

 

David Jessop is the Director of the Caribbean Council and can be contacted at: [log in to unmask] 

14 December 2002




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