The United Kingdom voting to leave the European Union will have immediate effects on Dominican trade with the European Union. Dominican ambassador to the UK, Federico Cuello has warned that Dominican exporters and importers will be the biggest losers. The decision (51.9% leave, 48.1% stay) will have almost immediate effects on Dominican exports of bananas, cacao, cigars and rum. UK sales of cars, chemicals, electronics, pharmaceuticals and whisky will also be hurt when the duty free provisions end. Trade relations between the UK and the DR are governed by the Economic Partnership Agreement (EPA), which allowed duty-free reciprocal exports.
Cuello recently warned that the impact would be felt almost immediately because the EPA would cease to apply the minute the UK signs the Withdrawal Agreement under Article 50 of the EU Lisbon Treaty.
Cuello has said that Dominican importers would most likely source new suppliers for imports in the United States, with which it has a free trade agreement, DR-CAFTA.
According to Cuello, the biggest losers, nevertheless, would be Dominican exporters. “After investing so much time and resources in meeting strict UK quality and fair trade standards, tens of thousands of smallholder farms producing bananas and cacao in cooperatives would be left without access to their largest European market,” he has stated.
Fresh produce that will be affected also includes air shipments of avocadoes, vegetables and mangoes, which are sold in UK fresh markets. He said the freight business would “evaporate overnight” as the trade barriers return with the UK’s exit from the European Union.
http://www.bbc.com/news/politics/eu_referendum/results
