BAUGH... we have negotiated an exit clause in the EPA

Minister of Foreign Affairs and Foreign Trade, Dr Kenneth Baugh, has assured the nation that there is an exit clause to the controversial Economic Partnership Agreement (EPA), which gives Jamaica the right to pull out, if the European Community (EC) fails to meet its expectations.

"If we find that the EPA does not serve our interests, or if the EC is not honouring commitments, there is, in fact, an alternative," Dr Baugh told the House of Representatives, which was called back prematurely from its summer recess, on Tuesday, to debate the provisions of the agreement.
"We have negotiated an exit clause in the EPA, set out in article 244.3. This takes effect six months after notification," Dr Baugh said.

He, however, said that making the agreement work in the interest of the country should be the main focus of the debate.

"In this regard, this government, with the support of members of this house, will attempt to finish well what you, the local Opposition began negotiating even as far back as 2002," he said, referring to the fact that negotiating the agreement between the EC and the ACP (African, Caribbean and Pacific) states started in September, 2002.

However, the CARIFORUM-EC negotiations were launched in Kingston in April, 2004. CARIFORUM is made up of member countries of Caricom (Caribbean Community) plus the Dominican Republic.
Responding in the debate, Opposition Leader Portia Simpson Miller denied that the EPA was substantially negotiated by her government and was merely concluded by the present government.
"The current administration made some critical policy choices, among which is the decision on the motor vehicle tariffs, with which we agree, and their decision on the MFN clause, to which we are fundamentally opposed," she said.
She said that the matter of the MFN (Most Favoured Nation) provision was reintroduced in the discussions at the 11th hour and provided "the perfect basis" for the Government to have forestalled the negotiations.

The governing principle of the negotiations was that "nothing is agreed until everything is agreed," therefore, the negotiations were not concluded by her government nor was the current government unduly constrained or prevented from demanding changes to protect Jamaica's interest, she said.

The Opposition leader criticised the MFN clause in the EPA as destined to change international law and practice, as it would require CARIFORUM countries, including Jamaica, to extend to the European Union any more favourable treatment or concession given to other developing countries which the EPA defines as a "major trading economy".

But reacting to the Opposition's position on the MFN clause, Dr Baugh said that an independent analysis, done by the International Trade Centre, fully supported the position that the MFN provision would not prevent any CARIFORUM country from negotiating free-trade agreements with developing countries and that the clause is not automatic, but subject to consultations before application.

The debate resumes in the House of Representatives this afternoon .

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