Today is a day of special significance in CARIFORUM/European Union Relations. We will experience the many dimensions of that relationship. We will first witness the signature of a Country Strategy Paper (CSP) between the European Commission and Antigua and Barbuda, a Member State of CARIFORUM. Signature of that important cooperation document is taking place in the presence of Member States of CARIFORUM, representatives of some EU Member States, staff of the European Commission, Representatives of the French Overseas Departments in the Caribbean, Representative of the UK Overseas Countries and Territories in the Caribbean, Caribbean Regional Agencies and Institutions and the Representatives of the media in the Caribbean and Europe. The various elements constituting the Caribbean/EU Relationship and the various intra Caribbean Integration and cooperation processes are on display and are in evidence in this room. Later today, we will sign a document, a Civil Defense Platform, which will have the participation of these stakeholders.

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Today’s meeting is also of significance for the range and importance of the matters which CARIFORUM and the European Union, as partners, are scheduled to discuss. Foremost among our agenda items will be a discussion on the various regional integration and cooperation processes in the region. This includes the OECS and CARICOM Economic Integration processes and the cooperation processes involving CARICOM/Dominican Republic relations, Haiti/Dominican Republic Relations, Relations between CARIFORUM and the French DOMs and UK and Dutch OCTs in the Caribbean.

We will jointly explore how the European Union can provide meaningful support to the Caribbean as it seeks to use these economic integration and cooperation processes to secure its meaningful insertion and participation in the global economy.

AS you are aware, CARIFORUM and the European Union have recently signed an Economic Partnership Agreement (EPA). That Agreement imposes commitments on CARIFORUM Member States, it also creates some opportunities. Honouring of the commitments entered into by CARIFORUM Member States implies significant adjustment, organizational and institutional costs. Taking advantage of any opportunity, which may arise from the EPA, will require the region to address the supply side constraints affecting its capacity to efficiently and competitively produce goods and services for extra-regional and intra-CARIFORUM exports. This will require investments in innovation, technology, physical and human capital, infrastructure, plant and equipment and the other facilities required to generate competitive production. All of these will require significant sums.

Today, we will jointly explore how the European Commission can assist CARIFORUM in building capacity to honour its EPA commitments and to take advantage of EPA opportunities.

As you may be aware, CARIFORUM and the European Commission have signed a 10th European Development Fund (EDF) Regional Indicative Programme, covering the period, 2008 to 2013, for a value of Euro 165 million. These resources are intended to provide support for the integration and cooperation processes, which I have mentioned, as well as for EPA capacity building support. The region appreciates the support provided by the European Union but must point to the fact that the known requirements for support in these areas far exceed the Euro 165 million granted.

This is a particularly sensitive subject for most CARIFORUM Member States which will experience revenue losses arising from implementation of the trade liberalization provisions of the EPA. And of course for some of the more vulnerable CARIFORUM members whose critical banana industries face a very uncertain future based on the bilateral negotiations currently taking place between the EU and some of the MFN countries in Latin America, the region will require significantly more resources than what have been pledged. We anticipate that we may be able to access some of these additional resources through Aid for Trade commitments from European Union Member States. We anticipate that in today’s meeting we will discuss using the European Commission’s good offices to attempt to secure these additional resources.

One subject which we will discuss today is the establishment of an Infrastructure Fund for the Caribbean. This Fund, I am advised, is likely to cover areas which will include transport, both air and sea, energy, ICT and telecommunications. I am also advised that the Fund is intended to secure and promote public and private sector investments in these areas. An Infrastructure Fund for the Caribbean which will deal with these important areas is of special significance to small islands and other small economies which comprise CARIFORUM. Our physical characteristics, small populations and vulnerability make the per capita costs of investments in infrastructure extremely high particularly when we may have to repair and rebuild after every hurricane season. Any facility which can reduce such prohibitive investment costs and promote investments in infrastructure in CARIFORUM is to be welcomed.

We eagerly anticipate the discussion with the European Commission on the assistance which can be provided for the design of the Fund and its capitalization and operation.

Of course, it is not possible for there to be any meaningful joint discussion, dialogue or meeting between representatives of CARIFORUM Member States and representatives of the European Commission without a discussion on commodities. In that regard, we will discuss matters related to Sugar, Bananas, Rum and Rice all of which are important revenue earning export commodities for some CARIFORUM Member States.

Our discussion today will have a significant bearing on future CARIFORUM/EU relationship. These discussions can contribute to a qualitative change in that relationship.

I thank you.

CONTACT: piu@caricom.org