Canada and the Caribbean community: Prospects for an enhanced trade arrangement
In July 2007, Canada and the 15-members of CARICOM announced negotiations to strengthen their trade relationship. Here we assess their respective interests in what we call an Enhanced Trade Arrangement (ETA), drawing on a review of i). bilateral trade and investment flows, and ii). the models used in agreements they recently concluded with third countries. For Canada these include a series of Free Trade Agreements (FTAs) with strong provisions on goods, services and investment, while for CARICOM, particularly relevant is the Economic Partnership Agreement (EPA) which it was able to negotiate with the European Union, a much larger trading partner than Canada. Drawing on elements of the EPA we identify innovative aspects that will help to define an ETA between CARICOM and Canada that both contributes to development in CARICOM and deepens commercial relations with Canada. We address trade in goods, services (including a special protocol on labour cooperation to cover temporary labour programs), standards, innovation, investment (including investment promotion and social obligations) and environmental cooperation.