–with promulgation of new CARIFORUM-UK pact

WITH the United Kingdom’s (UK) departure from the European Union (EU) now formalised, CARIFORUM, as a measure of maintaining market access to the UK and vice versa, has promulgated the CARIFORUM-UK Economic Partnership Agreement (EPA).
This new pact was made official following the issuance of a Ministerial Order signed by Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, on December 30, 2020. This order gives effect to the CARIFORUM-UK EPA.

The BBC has reported that the UK voted to leave the European Union (EU) in 2016 and officially left the trading bloc — it’s nearest and biggest trading partner — on January 31, 2020. However, both sides agreed to keep many things the same until December 31, 2020, to allow enough time to agree to the terms of a new trade deal. It was a complex, sometimes bitter negotiation, but they finally agreed a deal on December 24. It came into effect on December 31.
Prior to the UK’s departure from the EU, trade between CARIFORUM states and this nation has been governed by the CARIFORUM-EU EPA.

However, as of today, the CARIFORUM-EU EPA will cease to apply to trade between CARIFORUM states and the UK.
The Ministerial Order, therefore, brings into effect from January 1,, 2021, the CARIFORUM-UK EPA which will serve as the fundamental mechanism that ensures continuity in the existing preferential trading and investment relations, and facilitate uninterrupted market access and other EPA benefits for CARIFORUM states in trade with the UK.
The CARIFORUM-UK EPA is a roll-over agreement from the CARIFORUM-EU EPA as it replicates all relevant sections of the existing EPA with necessary technical and administrative changes to make the agreement operable in a CARIFORUM-UK context.

According to reports, the CARIFORUM-UK EPA was signed on March 22, 2019 by nine CARIFORUM states including Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Saint Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines.
It was later signed on April 1, 2019 by Trinidad and Tobago and on April 4, 2019 by The Dominican Republic. Other nations were expected to also sign the agreement.
The EPA is of economic importance to Guyana’s private sector considering that the UK is Guyana’s largest trading partner in Europe and sixth largest trading partner overall.
It accounts for 2.1 per cent of imports, 8.8 per cent of all exports and is an important market for exports of sugar, rice and rum.  At the regional level, the UK is the largest trading partner for CARIFORUM. It absorbs 25 per cent of exports from the region.