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CARIFORUM Receives USD135m Cash Injection In EU Trade Initiative,
by Carla Johnson, Investors Offshore.com
Friday, October 24, 2008
As part of the CARIFORUM-EU Economic Partnership Agreement’s (EPA) promise
to aid development in the Caribbean, the European Commission (EC) has announced
it will inject EUR165mn to go towards the European Development Fund’s regional
programme for the Caribbean.
The CARIFORUM-EU EPA was formally signed on the 15th October 2008 with Antigua
and Barbuda, Bahamas, Barbados, Belize, Dominica, the Dominican Republic, Grenada,
Guyana, Jamaica, Saint Lucia, Saint Vincent and the Grenadines, St Kitts and
Nevis, Surinam, and Trinidad and Tobago and the EU all signing.
The agreement has been proposed to pro-actively tackle poverty within the Caribbean
islands and will help them to strengthen their economies by improving trade
between the listed countries and the EU. For more than thirty years trade between
Europe and the Caribbean has been based largely on 'preferences' – special
tariff rates for selected goods. Unfortunately, these arrangements have not
helped Caribbean economies diversify or strengthened their industries. The EUR165mn
allocated this week will be used specifically in strengthening e-commerce, cultural
industries and international trade.
European Commission Vice-president Siim Kallas said: "This marks a new
era in EU-Caribbean economic relations. The EPA puts the Caribbean firmly on
the map for trade and investment. I pay tribute to the Caribbean leaders and
negotiators for pursuing their vision of a prosperous future for their region."
EU Commissioner for Development Louis Michel added: "This is a groundbreaking
step forward for regional integration and development for the Caribbean. This
deal creates new opportunities for the region in terms of stronger growth and
exports, and more jobs."
The EPA will mean much closer co-operation and dialogue between the two regions
on all these issues and is backed with substantial EU development aid. EU financing
plans are in place and being developed further, including participation in a
regional fund to help implement the EPA.
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