• [Summary]
• Acknowledgements
• Table of Contents
• Abbreviations

[page-number of print ed.: 1 (engl. part)]

Arbeitspapiere zur EU-Entwicklungspolitik

Working papers on EU-Development Policy

Documents de travail sur la politique du développement de l’UE

2

Antony Gonzales

The Caribbean-EU Relations in a Post-Lomé World

[page-number of print ed.: 2 (engl. part)]

Arbeitspapiere zur EU-Entwicklungspolitik

The series „Working papers on EU-Development Policy„ takes up topical problems in European development policy. It is intended to provide a forum for discussing political options for creating European development policy and the dialogue between North and South. Its objective is to contribute to a better understanding in pursuing a coordinated and coherent European development policy as agreed under the terms of the Maastricht treaty.

ISSN 1432-9824
ISBN 3-86077-594-4

The series appears at irregular intervals. It may be ordered free of charge from the Friedrich-Ebert-Stiftung, D-53170 Bonn/Germany.

[page-number of print ed.: 3 (engl. part)]

Antony Gonzales
The Caribbean-EU Relations in a Post-Lomé World
[Summary]

The Caribbean should move toward Free Trade Areas (FTA), both with NAFTA/FTAA and with the EU, based on phased or relative reciprocity along with requisite development assistance to facilitate competitiveness and parity over a transitional period.

While the global evolution of ACP-EU co-operation has led to positive results, real per capita aid is declining and trade has failed to diversify. Under Lomé, Caribbean interests focused on ensuring access for commodities like sugar, rum and bananas and on diversifying into other products. Despite a certain stabilisation of export prices for these goods, the Caribbean has continued to lose market share to non-ACP developing countries. This has not been offset by any increases in public or private capital flows.

In the Caribbean economic context, less importance is attached to aid, but strong interest is placed on industrial co-operation and trade development. This explains why in a renewed approach of co-operation with the EU, most Caribbean countries want the region to move from non-reciprocal arrangements to a FTA process, which is widely seen as better able to stimulate their competitiveness.

Success in moving in this direction will depend largely on the progress of regional integration and will require a gradual approach. Differentiation within the region will be important, such that the various countries can move toward FTA at variable speeds of entry and degrees of reciprocity. The poorest countries will still need preferential treatment. The transition to FTA should be accompanied by infrastructure development, particularly through greater use of international capital markets. EU tax relief for direct investment in the Caribbean should also be considered.

In sum, there is a strong rationale for a new relationship with the EU that promotes reciprocity and non-discrimination in trade, but at the same time incorporates some existing and additional development provisions.

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Acknowledgements

This paper was prepared for the seminar on „The Future of Lomé„ organised by the Friedrich-Ebert-Stiftung in Brussels on the 10-11 June 1996 and for the Conference on the „Future EU-ACP Relations beyond Lomé IV„ organised by the European Center for Development Policy Management in Maastricht on 12-14 June 1996.

We would like to thank the European Centre for Development Policy Management (ECDPM) in Maastricht for its support during the preparation of these studies and for its continuous and constructive co-operation on a wide range of development issues.

Finally, we would like to express our sincere gratitude to all those who helped move these studies through the publication process. The successful completion of this project would not have been possible without their dedication and effort.

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Table of Contents

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Abbreviations