Gareth Manning, Sunday Gleaner Reporter

Veronica Davis, a small farmer and higgler from Free Hill St. Ann, reaps carrots from her farm. Small farmers like Ms. Davis are expected to benefit from the economic partnership agreement.

Miss Maizie, a vendor in the May Pen, Clarendon market, takes her produce from James Hill each Friday for sale. She grows mostly cash crops - tomatoes (lots of it), some lettuce, callaloo and peppers (scotch bonnet and sweet peppers). As in most markets, her produce is similar to several other vendors' fare and competition is therefore fierce. She sells her goods at a reasonable price, nevertheless she either finds that each weekend she must slash her prices drastically or give away or throw away several pounds of produce so she doesn't have to take them back home.

But what Miss Maizie does not know is that she and farmers like her could benefit from the soon-to-be-signed-off economic partnership agreements (EPA) between the Caribbean and the European Union (EU), and she could soon export her tomatoes to Europe and other countries through the EU. The EPA, which is a trading relationship between the European Union and the region, will allow farmers like Miss Maizie to grow their produce for markets in Europe where several countries are still finding it difficult to fill the chronic shortage in tomatoes - caused by the damage of hurricanes Charley and Francis in 2004 - to some of the largest tomato producers in Florida.

A good price

Tomatoes are a basic ingredient in several processed foods and are of course the basic ingredient in pastes such as tomato ketchup. Not only would Miss Maizie find that she no longer has to worry about her produce going to waste, but she could fetch a good price for each rosy red plum on the European market. She could also find that there is a market for her other vegetables for which demand on the world market is rapidly growing as the need for healthy and organic foods increases.

To this end, CARICOM countries should welcome the new EPA being ironed out between the region and the EU, not simply because as of 2008 there will be no more Lome Agreement - which forces the EU to accept some CARICOM goods on preferential terms - but because it will play a significant part in repositioning CARICOM economies to compete in the global market.

The new trade agreements will be based on reciprocity that will allow the region to capitalise on and formalise its non-traditional exports sector and strengthen the base of traditional exports to be better able to withstand competitors.

The EPA will have four broad objectives:

Sustainable development of the Caribbean states;

An enhanced ability of small Caribbean states to play a more meaningful role in the international community;

The facilitation of Caribbean economic structural transformation;

Help to build a level of Caribbean economic adjustment conducive to overall socio-economic development.

These broad objectives are to be reinforced by a number of agreed principles, which, among other things, should

Support and build on the existing regional integration process;

Promote the development objectives and strategies of the countries within the region;

Encompass a variety of forms of special and differential treatment that include (but are not limited to) longer transitional periods and technical assistance from the EU.

RESEARCH AND DEVELOPMENT

Jamaica has made some meaningful progress to date in the negotiations through the Caribbean Regional Negotiating Machinery (CRNM), but there are still some critical areas and issues to be resolved so Jamaica could benefit. Some can be resolved in the time frame allotted for the negotiations. Other areas such as our human resources need to be addressed urgently.

Certainly our human resources are rich in innovative bright minds, but often their expertise is lost to developed economies as they migrate in search of jobs.

Much more is needed to encourage innovation and entrepreneurship in order for us to compete effectively in the global village. In this regard, what is needed is urgent investment and spending in the area of research and development. Less than 0.1 per cent of the budget is being spent on research and development when the creative industries are collectively accounting for seven per cent of world gross domestic product (GDP). CARICOM must take advantage of that. More support programmes for the development of ideas and competitiveness need to be identifiedand existing support programmes strengthened.

The education drive on intellectual property rights needs to be intensified, for example, so people understand the importance of their ideas and their value.

Entrepreneurship also needs to be strengthened by developing more agencies or increasing access to existing ones so the ideas of the ordinary people can be honed and funding provided to develop and implement these ideas. The Jamaica Business Development Centre and the Tourism Product Development Company are clearly not enough to do this.

The Jamaican creative sector, which includes movies, music and art, to name a few, is an excellent example of one of the informal exports from which we could develop goods and services for export. This is a point with which political economist Professor Lloyd Best would wholeheartedly agree. The spring of creativity is almost infinite and without a doubt would help in the sustenance and enhancement of several other critical sectors such as tourism and agriculture. The sector is worth all of $1.3 trillion globally according to the CRNM, and grows by 10 per cent each year. (Imagine that!) Jamaica's own industry is said to be worth tens of billions alone, but very little accrues to the local industry because of the informality of the sector.

Great deal of scorn

There is still a great deal of scorn for some of the most prolific and profitable genres coming out of the local music industry, such as dancehall. This affects the development of policy to govern the industry. High tariffs and customs on goods that feed into the sector also need to be broken down. Freer movement of artists and musicians is needed if Jamaica is to benefit from a trade in creative goods and services with the EU. The development of specialised schools for training and honing creativity is also desperately needed. Without these necessary and critical interventions, the local industry could face pressure for market openings that see more import of creative products. Profitability of the local industries might also be low as a result.

These are some of the areas that still need to be addressed and dealt with urgently if Jamaica is to make the most of the new trade agreement.

Jamaica and CARICOM in general, have to make substantial structural adjustments, but not without the full support of its various sectors and people. As Barbadian Junior Minister on Foreign Affairs and Foreign Trade, Kerrie Simmonds, puts it, to believe one could do so without the necessary input from the various sectors would mean simply to live in a "fool's paradise."

What is lacking is an understanding among all the sectors across the region of how we ought to respond to the changes the EPA will bring to our lives. There is no more room for talks on protectionism and preferential trade with the EU. The region is being challenged to face the realities of the changing global environment and it must reposition itself so it can take advantage of the opportunities that it will present. CARICOM has no choice but to face those challenges.

Protectionism

It is within this context that the region has agreed to enter into an EPA with the European Union, Simmonds states. There may be no room for talks of protectionism, but the agreement gives the region the opportunity to talk about development, which in our context means the provision of special and differential treatment that is proportionate to our existing capacity and vulnerability. In other words, we need the support of the EU to make the necessary adjustment. Development in this sense, as the young state minister points out, "must of necessity reflect flexibility in applying trade rules and granting more effective regional access to EU markets. They must help us to achieve well-designed and executed trade capacity-building measures, and binding commitments on EU development support aimed at responding promptly and fully to CARI-FORUM's needs."

In order to benefit, the region must insist that it is given the necessary technical assistance and funding to massage local industries sothey can meet the demands that are to be made on them by the EU markets. Therefore, Miss Maizie and farmers like her, will be needing all the technical and financial help they can get to meet the demands of the new market. Further, the region must insist that it be given enhanced and more effective access to EU markets.

Finally, this new EPA with the EU must be seen as a means of strengthening the region's efforts to integrate regional economies. It is in league with the development vision of the region - a vision for sustainable development that is holistic and grasps the different dimensions of development. If the EPA is neglected, CARICOM's future will be in trouble.

gareth.manning@gleanerjm.com