OSWALD BROWN

Writes...

At a press conference in Barbados earlier this week, Chris Sinckler, that country's minister of foreign affairs and foreign trade, declared that Barbados will be signing

the Economic Partnership Agreement (EPA) on September 2, with or without the other CARICOM countries, ac-cording to a report in The Nation Newspaper.

"We believe that after three to four years of intense negotiation, the option of opening up that agreement to renegotiation at this stage is just not a feasible option," Sinckler said. "We doubt very much in our minds that it would be agreed to by the European Commission. We believe that the 25-year-phase-in period for the elimination of tariffs is unmatched in any modern trade agreement."

Sinckler was responding to criticism that has surfaced in his country about Barbados' decision to sign the EPA. According to The Nation article he said he was not purporting to be a grand defender of the EPA, but when the critics picked apart the EPA he was not seeing their alternative and "a lot of the problems lay in the fact that the critics did not read the agreement to see what it was offering and the situation needed to be looked at fairly."

The Bahamas has a great deal in common with Barbados, and Sinckler could very well have been speaking of behalf of The Bahamas, which is also committed to signing the EPA on September 2.

The lead spokesperson for The Bahamas on this crucial issue, however, has been Minister of State for Finance Zhivargo Laing, MP for the Marco City constituency of Grand Bahama, and his views are very much in sync with Snickler's. This does not, of course, mean that concerns expressed by some Bahamians about the EPA should be ignored, but what it does mean is that the Government of Barbados shares the view of the Government of The Baha-mas that signing the EPA is in the best interest of the respective countries.

One point that Sinckler made that may be very true here in The Bahamas is that many critics of the EPA have not read the agreement to see what it is offering. Certainly, they have had ample time to educate themselves about what is contained in the agreement, given the fact that negotiations related to the EPA commenced in 2002, and the deadline for concluding those negotiations was set more than six years ago.

What's more, since the current Government decided to sign the agreement, Laing has been using every fora and every opportunity made available to him to explain all of the aspects of the EPA, but organized town meetings on the issue have not been very well attended. Indeed, one such meeting was held earlier this week at the Hotel Training College in New Providence, and according to an article written by Nassau Guardian News Editor Candia Dames about "15 people showed up, including government officials and members of the press."

At these meetings Laing generally addresses what he refers to as "Critical Ques-tions." In researching information for this column, I requested that Laing forward to me a list of those questions and the responses. They are as follows:

* What is the Economic Partnership Agreement?

The Economic Partnership Agreement is a trade agreement between the European Union (EU) and the Forum of Caribbean States (CARIFORUM). CARIFORUM is a group that includes all the countries of CARICOM and the Dominican Republic. It outlines the rules that will govern the import and export of goods and services between the EU and CARIFORUM.

* How will ordinary citizens benefit from the EPA?

The EPA will allow Bahamian exporters to continue sending their products into Europe duty-free. It will lower customs duties on goods from the EU and CARIFORUM into The Bahamas so customers will benefit from lower costs and greater product choice. It also promotes investment from Europe into the economy which can result in more jobs for Bahamians. Finally, the EPA also has measures to promote greater efficiency in conducting business in The Bahamas and improve access by citizens to trade facilities.

* What are the main challenges with the EPA?

The main challenge will be implementing the agreement, including the legislative, institutional and policy chang-es within the timeframe outlined in the agreement. There will be some loss in government revenue estimated at $6 to $10 million.

* Will the EPA allow free movement of people?

No. The EPA will facilitate the temporary entry of skilled workers for business purposes within Europe and the CARIFORUM areas. The provisions on the temporary movement of persons are reciprocal so skilled Baha-mian workers will also benefit from access to the EU and CARIFORUM. All countries will continue to enforce their visa requirement and have the right to regulate their labour markets.

* Will it allow the CSME through the backdoor?

No. The EPA is not a commitment to the Caribbean Single Market and Economy (CSME). It does encourage regional integration as a means of promoting cooperation in a number of areas to ensure the smooth implementation of the Agreement.

* Will the EPA negatively impact our sovereignty?

Absolutely not. The EPA does not in any way preempt or invalidate Bahamian law. The EPA does not prevent The Bahamas from enacting, modifying or enforcing domestic legislation.

* Will the EPA give Europe a say in our domestic affairs?

No it will not.

* Will the EPA negatively affect our relationship with the USA and Canada?

No. The EPA will not negatively impact our trading relationship with the United States and Canada. Most countries seek to have trade agreements with as many of their trading partners as possible because they bring greater transparency and predictability to the trading relationship.

* What if we do not sign?

We will lose the existing duty free access we have for fisheries and other goods into the EU. At the political level, we will be sending a clear message to a powerful economic bloc that we do not wish to formally participate in a rules-based trading arrangement with it. This could be harmful. We will be less competitive than other CARIFORUM states in attracting inward investment from the European Union. This is particularly important with respect to tourism and financial services.

* Will it introduce Tax

Information Exchange Agreements?

No. There is no obligation in the EPA to sign Tax Infor-mation Exchange Agree-ments (TIEA) with Europe or any of its member states.

* What changes in legislation can be expected as a result of the EPA?

The major changes in legislation will be in relation to customs administration to make the import and export of goods and services easier. There will also be changes to improve legislation governing intellectual property and government procurement. New legislation will be introduced to facilitate fair competition in the marketplace.

* What is the trade strategy of the Government of The Bahamas?

The trade strategy of the Government focuses on providing a clear and transparent platform for The Bahamas to trade with the world in order to take advantage of international trade opportunities and to avoid unpredictable challenges. This begins with completing The Bahamas' application to the World Trade Organiza-tion and participating in the negotiations on trade agreements with Canada and the United States as a part of the Caribbean Community.

Laing also listed some of the benefits from signing the EPA. They are as follows:

* Preserves trade relations with a longstanding partner and the largest cohesive economic block in the world (EU) with huge tourism, financial services and inward direct investment potential.

* Maintains open, transparent and defined lines of trade communications with an area of the world sensitive to our financial services sector.

* Protects and preserves existing market access (fisheries, rum etc.) to the world's second most lucrative market (EU).

* Maintains the country's competitive position vis-à-vis other Cariforum states as destination for EU investment.

* Provides a platform to en-hance or develop new visible and invisible exports for the European market (financial services, cultural services, computer services etc.).

* Offers access to almost $200 million in trade development funding.

There are reports that Trinidad and Guyana and several other CARICOM countries have expressed reservations about the EPA and have indicated that they are not yet ready to sign. Certainly, whatever decision these countries make will be based on what they consider to be in their best interest.

As far as The Bahamas is concerned, however, as is the case with Barbados, signing the EPA is in the best interest of this country, and Laing has made a good case to support this conclusion.

Oswald T. Brown is editor and general manager of The Freeport News. Comments on this column can be sent to oswald@nasguard.com