The ACP has called for a review of the EPA at their Ghana summit

Coming out of last week’s summit of African, Caribbean and Pacific countries in the Ghanaian capital, Accra, last week, was a declaration demanding a review of the free trade deal with Europe.

Cariforum countries – Caricom and the Dominican Republic - are due to meet mid-October to complete the signing process.

All, except Guyana and Haiti, recently committed to the full EPA.

Delays?

But now, there are already calls for the region to delay finalising its signing of the agreement pending the outcome of a meeting between a delegation from the ACP and the European Union.

The EPA which broadly covers trade in goods and services, and includes conditions such as good governance and transparency, will be phased in over a number of years, up to 25 years in some instances.

It’s not yet known exactly when the ACP delegation will head to Brussels to meet EU officials on the matter.

And when they do they will meet with someone other than Peter Mandelson, with whom several Caribbean and other ACP leaders have had run-ins over his negotiating stance.

Mr Mandelson, the EU Trade Commissioner for the past four years was called back to London by British Prime Minister Gordon Brown to serve as Business Secretary (Minister) in a re-shuffled cabinet.

The British government is to appoint a new Trade Commissioner to replace Mr Mandelson.

The British term for this post, under current European Union rules, is due to expire next year.

It was just in September that Caricom leaders met in Barbados in September to discuss the EPA, which all Cariforum initialled at the end of last year.

The GSP alternative

The complex EPA, broadly covering free trade in goods and services between the EU and the ACP countries, has been bogged down in controversy in the Caribbean.

	The EU is insisting on completion of the EPA

Guyana has objected to some of its elements, principally trade in services, with the argument that it makes it uncompetitive against European countries and companies.

But the country’s opposition has accused the government of President Bharrat Jagdeo of lacking clarity in its objections.

The PNC asserts that President Jagdeo is more concerned about the transparency and good governance aspects.

If they don't sign?

However, sources have told BBC Caribbean that much of this "will-they,won't-they" debate in the region is academic.

Any country not signing the EPA, already ratified by heads of government last year, will then find their exports revert to what's known as the Generalised Scheme of Preferences (GSP).

Under this, the European Commission can cause its existing and largely duty free tariff regime on the exports of a country not signing up to revert to the (GSP).

The GSP tariffs would impact on key exports - from sugar and bananas to low priced bulk rum.

To quote columnist David Jessop in his analysis of the GSP in November 2007 while Caricom deliberated over signing the EPA:

"To take two simple examples: exporters of hot pepper sauce to Europe will find themselves paying a 4.2 per cent duty while exporters of honey will cease to have a zero tariff in Europe and be paying duties of over 17 per cent.

Regional estimates suggest that the overall damage could amount to an additional Euro 300m per annum in EU duties and that some products would cease to be competitive.

Making clear, in a very carefully worded November 6 statement, about what may happen next, Richard Bernal, the Director General of the Caribbean Regional Negotiating Machinery, noted:

"The EC has advised that if the ACP countries are not included in the transitional arrangement (for an interim goods agreement) they will have to resort to the Generalized System of Preferences (GSP) regime. This would put the exports of Cariforum at a disadvantage".

BBC Caribbean's Marie-Claire Williams talks to David Jessop

The EC carries on

In Brussels, more attention will be given to Mr Mandelson's caretaker replacement as EC Trade Commissioner.

And, of course, the medium-term horse-trading process between European nations over who takes on the trade and other Commission portfolios in 2009.

The EPA might have been a source of contention between Caricom countries but, from the point of view of Brussels, it was a step-up and therefore a better offer than the GSP.

The European Commission's mighty bureaucratic machinery has now turned its attention to translating the done deal of the EPA with Caricom into the many languages of the EU ready for signing on October 15.

For these bureaucrats, whether some Caricom nations wanted to seek to tweak the deal after ratification was strictly academic.