14 December 2007 - trinidadexpress.com

A crisis looms at the start of the new year for trading in the European markets should Cariforum countries, including Trinidad and Tobago, fail to reach an agreement with the European Union by December 31.

Trade Minister Dr Keith Rowley remains optimistic, saying that he was confident an agreement would be the outcome of the negotiation but, "If we don't, the consequences are going to be very serious".

Rowley, speaking at the post-Cabinet press conference at Whitehall, Port of Spain yesterday explained that the World Trade Organisation (WTO) granted a waiver to developing countries to allow access to the European markets and this special trading arrangement will come to an end on December 31.

Cariforum, which comprises Caricom countries and the Dominican Republic have to negotiate and conclude an agreement which will last until 2020, and they have to do so in 17 days.

The European market is the second largest trade market to this country.

"If for any reason no agreement is had by December 31, it is clear and understood by all parties involved that new arrangements will automatically kick in on January, 2008. Those arrangements will put our trading position at a great disadvantage," Rowley said.

Those adverse effects, he explained, could see tariff arrangements attached to Caricom goods which would make the prices uncompetitive in the European market.

Rowley said if the country could not compete in that market then it would result in contraction of production which would automatically lead to reduction in employment.

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