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Think of Caribbean products and what comes to mind? Certainly rum and bananas are synonymous with the island countries. But recent developments have awakened alarm that producers of these goods are under threat.
In the case of rum, one concern stems from the closure of a special programme funded by the European Union to help Caribbean rum producers adjust to global competition. While donor support to private-sector trade and production adjustment has often proved disappointing, our first guest feature, based on a forthcoming ECDPM-CTA study, hails the rum programme as a successful model overall. Unfortunately, with funding set to wrap up in June, the authors fear the programme has ended too soon, potentially undermining the progress made so far.
Sir Ronald Sanders, the former High Commissioner to the United Kingdom for Antigua and Barbuda and Ambassador to the World Trade Organization, couldn’t agree more. In his forcefully written commentary, Sir Sanders condemns the European Commission’s decision to shut the window on the rum programme, while urging Caribbean governments to take action.
As regular readers of TNI will know, Caribbean banana producers face similar challenges. After a long-standing trade dispute was settled last November, Latin American bananas entering the EU market will be subject to a progressively lower tariff, which in turn reduces the price-competitiveness of Caribbean bananas. It is for this reason that the EU has established a €190 million fund to help ACP banana producers adapt to the increased competition. However, Renwick Rose, coordinator of the Windward Island Farmers Association, argues that Caribbean governments and the European Commission have failed to adequately involve banana farmers in determining how this money should be used.
Turning to the East African region, where the East African Community (EAC) appears on the verge of signing an EPA with the EU, we consult a private-sector representative to find out how businesses have been involved in the trade-negotiation process. Charles Yegella, an EABC/ILEAP Trade in Services Fellow, says East African businesses are taking an offensive posture, with an eye to capitalising on EU export opportunities. But he also talks about the challenges faced by the business community in the region. These range from stringent health and safety standard that make it difficult for African exporters to enter the European market, to an unpredictable policy environment that stunts business development within the region.
Offering advice to the ACP fisheries sector, Pierre Failler, Senior Research Fellow at the University of Portsmouth, United Kingdom, says businesses should focus on quality rather than quantity. In other words, by focusing on the condition of the fish captured, and how it is handled, stored and transported, ACP countries can tap into the lucrative market for higher-end fish products. Such an approach would make sense for both economic and environmental reasons, points out Failler.
Also this month, we feature an essay by Manoj Pant, a Professor at Jawaharlal Nehru University, New Delhi, India, on a dilemma facing South Africa. Currently, South Africa is party to a bilateral free trade agreement with the EU; however, it is considering the possibility to transition to a regional agreement involving its Southern African neighbours and the EU. Pant investigates the economic costs for South Africa of making the switch, and concludes they are minimal. However, the political costs appear much more complicated.
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