NewsWhore
06-29-2007, 04:20 PM
Former DR trade negotiator Hugo Ramirez Risk has calculated the cost for the DR if the Caribbean fails to sign a reciprocal trade agreement with Europe, known as the European Partnership Agreement (EPA). In rum, the DR stands to lose EUR70 to EUR100 million in development cooperation funds. The DR expects to export five million cases of rum by year 2010, primarily to Europe. All DR rum has tax and quota free access to European markets today. This would be lost if the EPA is not signed. The first World Trade Organization-compatible collective brand "Dominican rum" was issued on 25 June in Santo Domingo, a major achievement of the Dominican Association of Rum Producers (Adopron).
Tobacco exports would also suffer considerably. The DR is a world leader in cigar exports to the European Union.
The additional quotas that would be opened with the signing of EPA would be lost. The European Commission has announced as of next year regional quotas will be administered on a first come-first served basis. This is because as of January 2008 the European Union will no longer provide guaranteed prices for its producers, nor as per WTO rulings, grant trade privileges to Cariforum exporters. Ramirez Risk, though, points out that after the initial phase (Jan 2008 to Sep 2009), during which the Sugar Protocol would continue to apply, the EC will maintain prices at remunerative levels for Caribbean partners. This would be lost if there were no EPA. The EC offers Cariforum sugar-containing products full duty free/quota free treatment. This again would be lost without an EPA.
The export of bananas is one of the main obstacles keeping Caribbean countries, other than the DR, from accepting the European Commission's terms. For the Caribbean, one of the major issues is the Most Favored Nation (MFN) tariff. The EC stresses that the EPA will maintain duty free/quota free access, which is meaningful. This against the background of public information that EU was to offer MFN suppliers a 50% reduction in the tariff over a six-year period - to EUR88 per metric ton - in exchange for a "peace clause" at WTO levels. The EU promises all efforts will be made to maintain as high a level of preference for the Caribbean as is practical. If there is no EPA, the DR will lose its first rank status on bananas exports to the EU.
More... (http://www.dr1.com/index.html#9)
Tobacco exports would also suffer considerably. The DR is a world leader in cigar exports to the European Union.
The additional quotas that would be opened with the signing of EPA would be lost. The European Commission has announced as of next year regional quotas will be administered on a first come-first served basis. This is because as of January 2008 the European Union will no longer provide guaranteed prices for its producers, nor as per WTO rulings, grant trade privileges to Cariforum exporters. Ramirez Risk, though, points out that after the initial phase (Jan 2008 to Sep 2009), during which the Sugar Protocol would continue to apply, the EC will maintain prices at remunerative levels for Caribbean partners. This would be lost if there were no EPA. The EC offers Cariforum sugar-containing products full duty free/quota free treatment. This again would be lost without an EPA.
The export of bananas is one of the main obstacles keeping Caribbean countries, other than the DR, from accepting the European Commission's terms. For the Caribbean, one of the major issues is the Most Favored Nation (MFN) tariff. The EC stresses that the EPA will maintain duty free/quota free access, which is meaningful. This against the background of public information that EU was to offer MFN suppliers a 50% reduction in the tariff over a six-year period - to EUR88 per metric ton - in exchange for a "peace clause" at WTO levels. The EU promises all efforts will be made to maintain as high a level of preference for the Caribbean as is practical. If there is no EPA, the DR will lose its first rank status on bananas exports to the EU.
More... (http://www.dr1.com/index.html#9)