An assessment of the Economic Partnership Agreements and their impact on the trade and economic vulnerabilities of the Caribbean region

Abstract

The Economic Partnership Agreements (EP As) between the EU and the six regional groups of former colonies in Africa, Caribbean and Pacific (ACP) States redefine the trade and development relationship between the two groups as previous preferences failed to instigate the envisaged economic development in ACP groups. The rationale behind EP As is the promotion of regional integration of ACP countries into the world economy thereby promoting their sustainable development and contributing to poverty reduction. This study focuses on the Caribbean group, which is mainly composed of Small Island Developing States (SIDS). SIDS have long been recognised as being more economically vulnerable than other economies due to a number of inherent characteristics in their economic conditions that undermine their growth and development paths. Against this backdrop, is there the risk that the EPA will exacerbate these vulnerabilities? Is it reasonable to expect that the EPA objectives can be achieved? Is the Agreement compatible with the particular needs of the Caribbean region? This dissertation delves into the negotiated agreement and analyses the vulnerabilities of the Caribbean region. For the Caribbean states, to be able to form an opportunity out of this agreement; a change in their institutional and structural adjustment is needed. This is the only way by which they can attain the growth and development anticipated in the EPA.