EU Statement at the 4th WTO Trade Policy Review of the Organisation of Eastern Caribbean States, 3 & 5 may 2023
I would first like to welcome all the delegations of the OECS countries, led by Honourable Everly Paul Chet Greene, Minister of Foreign Affairs and Trade of Antigua and Barbuda and the Chair of the OECS Council of Ministers of Trade (Head of Delegation), the OECS Commission as well as the Ambassadors here in Geneva. Let me extend my appreciation to the Discussant, H.E. Nadia THEODORE, Ambassador of Canada for introducing us to the six Eastern Caribbean countries’ trade policies and practices today.
Since the last TPR in 2014, OECS countries have been exposed to considerable external shocks. As small island states that are reliant on tourism for their economic sustainability, they were hit particularly hard by the COVID-19 pandemic, on top of the well-known threats related to climate change, severe weather conditions and natural disasters. Economic instability related to Russia’s war in Ukraine have now added to the list of challenges for the OECS group.
In view of these challenging conditions, the EU must commend the block for its significant achievements in economic integration and the continued commitment to achieving ever-closer ties in other areas. The EU is also particularly impressed with the significant progress accomplished under the Trade Facilitation Agreement.
The EU knows very well that the force lies in unity. As a major supporter and donor of the Caribbean integration process, the EU continues to see the OECS as a forerunner of regional integration and will back that process by all available means.
The EU is also an important trade partner for OECS countries and has become a first export destination for OECS countries. The OECS countries are also part of the EU’s Economic Partnership Agreement (EPA) with the CARIFORUM group.
Signed in 2008, the EPA not only provides duty free and quota free access to the EU market, but it also contains commitments on trade in services, investment, trade-related issues such as competition policy, government procurement, intellectual property rights, as well as sustainable development aspects. It also allows for the necessary flexibilities to account for the special needs of less developed members and we are currently reviewing the functioning of the Agreement focusing more on the effective implementation of those provisions that are instrumental for improving the bilateral and investment climate.
The EU supported OECS member states with the implementation of the EPA in key areas such as Innovation and Intellectual Property Rights, Technical Barriers to Trade, Sanitary and Phyto-sanitary measures, and Capacity building, notably in the Customs and Trade facilitation areas, with significant effects in terms of improving conditions for trade.
The EU will continue to provide trade related cooperation assistance to OECS countries in the future. For instance, through the ongoing “Strengthening Regional Integration Programme”, the EU is seeking to consolidate the OECS Economic Union and promote a more inclusive and climate-resilient economy. In addition, as part of the Global Gateway strategy, we are currently compiling a 3600 package of financial de-risking and operational tools that aim to create better conditions for quality investments, in particular in the areas of a green and digital transition.
In this context, the OECS States will however need to step-up efforts to modernise their investment frameworks and improve conditions of doing business. In this regard, the EU welcomes the active participation of some OECS Members in the ongoing negotiations towards an agreement on Investment Facilitation for Development and encourages all OECS WTO-Members to join this initiative.
In times of global uncertainty and the constant emergence of new challenges, it is more important than ever to maintain and strengthen the rules-based economic cooperation. The WTO - and its reform – will continue to be an important element for this. In this regard, we commend OECS countries’ support on solutions to overcome the impasse of the Dispute Settlement system. In the meantime, we would invite them to consider joining the Multi-Party Interim Appeal Arbitration Arrangement (so called MPIA), which is a temporary but active mechanism for solving trade disputes.
However, we would also welcome further progress by OECS countries in implementing WTO rules and existing Agreements, notably in terms of notifications’ compliance. We also encourage OECS countries to consider accession to the Government Procurement Agreement and, on the environmental front, we hope that OECS countries will take part in plurilateral environmental initiatives, such as the Informal Dialogue on Plastics Pollution and Sustainable Plastics Trade. Finally, we also encourage the OECS countries to consider joining the Joint Statement Initiative on Services Domestic Regulation.
The EU appreciates the OECS WTO-Members’ replies to our advance questions, which we will review carefully. On behalf of the EU, I wish all OECS WTO-Members a successful 4th Trade Policy Review.