BRIDGETOWN (CMC):

Entire industries in the Caribbean will be wiped out if the Economic Partnership Agreement (EPA) with Europe is not completed by year end, warned Caribbean Community (CARICOM) Chairman Owen Arthur.

Arthur revealed that a study on the cost of exporting to Europe under the generalised system of preferences (GSP), which would apply if the EPA is not completed, shows that countries would have to pay as much as 30 per cent duty on goods which are now duty-free and, therefore, lose out on millions of much-needed foreign exchange.

"There are countries that would lose 75 per cent of their exports ... the countries that would be most affected would be Belize and Guyana because their commodities, sugar and rice would attract duties.

"In the case of Belize, more than 70 per cent of their exports to Europe that are now entering duty-free would attract duties, and in our case in Barbados there are 10 items that we are selling to Europe valued at about $70 million that would attract duties," the Barbados Prime Minister said.

"So allowing our trade relationship to end in December 31 without putting something in place that gives us continued duty-free access to the duty-free market would lead to the disappearance of entire industries in the Caribbean," he added.

Trying to negotiate

Dismissing charges that the region's leaders have caved into pressure from Europe, Arthur said the Caribbean is trying to negotiate a comprehensive agreement that includes arrangements for trade in goods, but also in services, investment and cooperation.

Arthur has blamed France for single-handedly standing in the way of the region completing the EPA.

"Because of a long-standing attitude of that European country which has always said that it does not favour the involvement of other cultural agencies and entertainers in its market, it has firm restrictions so Europe has put up barriers to liberalising the market for our cultural workers and entertainers," Arthur said in a veiled statement.

But he has assured those in the industry that CARICOM will not back down on what it demands.

Barbados Senior Minister Dame Billie Miller, the region's lead negotiator with Europe, said the leaders felt so strongly about the issue they have drafted a letter to President of the European Union Manuel Barroso highlighting the necessity of eliminating the barrier.

She said the issue was a "deal breaker" because the entertainment industry is an area in which the region has become internationally competitive.