Jagdeo propose freeze on EPA in light of global crisis

GEORGETOWN, Guyana, CMC



President Bharrat Jagdeo believes there should be a delay in implementing the Economic Partnership Agreement (EPA) trade deal with Europe because of challenges created by the global financial crisis.



Jagdeo told a gathering of African Caribbean Pacific Group of States and European Union (EU) parliamentarians on Wednesday that the Caribbean Community (CARICOM) counties were in need of such a reprieve in order to source funds to diversify their economies.



“If we have a moratorium on this we will be able to raise some of those funds,” he said.



“The investments we need in our economy now by opening it up are not coming because investors can’t find money; investment has dried up in many of our regions. I’m sure you can do that over the course of the next two days, come up with a series of reasons why we should hold back on these (EPAs),” the Guyanese leader said.



The EPA, signed by Caribbean governments last year, governs all trade between the region and the EU and calls for the removal of certain protectionist trade barriers.



However, Jagdeo pointed out that more developed countries, at the first signs of trouble, were turning to protectionist methods to safeguard their economies.



“Some of the leaders in these countries (Europe) were the strongest advocates of reciprocity in the EPA and of free trade; and the first sign of trouble move to protect their economies,” he said.



“Now, if these countries can’t handle open trade and they have a social safety net for their people and a large per capita GDP, what will reciprocity in the EPA do to us?” he said.