Dr. Anthony Gonzales, Senior Lecturer, Institute of International Relations

"Reciprocity and the Future of ACP/EU Relations."

Comments

Mr. Harker agreed with Dr. Gonzales' comment relating to tariffs and wondered whether the region should have a different tariff schedule with the EU than that which might actually be negotiated. He asked whether Dr. Gonzales was in favour of anti-export tariffs which, some had argued, could militate against the region's export performance.

Dr. Gonzales agreed that tariffs and protection could create an anti-export bias. He emphasised the need for a reasonable liberalisation schedule which could equally apply to the EU. He pointed to the limits of unilateral trade liberalisation and stated that there would be an eventual need for reciprocity.

Secondly, he stated that these treaties not only created trade but also had a diversionary effect. He said that trade was being diverted from other regions to Eastern Europe ( for example, $250 billion in exports, in areas such as garment and steel, coming from Eastern Europe, are expected in the years ahead) and that this had to be at some other exporters' expense.

Mr. Bulbulia stated that in looking at Lomé 2000 one had to try to re-evaluate these principles. Market access was not the central issue. The region must be aware of the EU's long term plans for trade with it and remember that its export base was not manufactured goods. Tariff reductions were not feasible in the Caribbean as the region depended on these for 50-70% of its tax income. Hence, he suggested that they find out whether the EU was willing to enter into the agreements they wanted them to.

Dr. Gonzales remarked that capacity could not be developed without market access and that the two areas of concern should not be divorced. Investment and market access were intricately linked. A certain amount of financial and technical assistance was needed to build capacity. Market access was also critical in terms of services.