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SICA

Towards an integrated By CARLOS MORALES TRONCOSO Minister of Foreign Affairs, The

ooking at ourselves in the mirror of the CARIFORUM and the EU and . European Union, our 22 Central American CARIFORUM countries enjoy duty-free, quota- and Caribbean countries have plenty of free access for all of their exports to the EU. Central work ahead. The potential is clear. With American countries enjoy the same generous access La total real GDP of US$238 billion in 2012, our for all of their industrial exports and, after a transition countries could represent the fourth largest economy period, for all of their agricultural exports too. of Latin America. Moreover, services and investment from our region Strategically located right at the centre of transport have been liberalised. routes between Europe, North America, developing- The EU and its Member States, for their part, enjoy country markets in Latin America and the Asia- privileged access to our markets, with countries such CARLOS Morales Pacific region, many of our countries are trying to as mine having liberalised over 90 per cent of imports is the Foreign Minister of position themselves for the post-Panamax world of already. the Dominican Republic, wider vessels needing shorter transport routes and I wouldn’t be surprised, however, if investors an office he has held customised port services. wondered what the relevance of these agreements is three times previously. With a total population of over 70 million, our for deepening regional integration further within and A chemical engineer, standards of living are as high as that of the typical Asian between CARIFORUM and Central America. After trained at the Louisiana consumer. No wonder many of our countries appreciate all, why would a UK investor bother considering State University, he was so much British financial services, spirits or automobiles. the potential of an integrated Caribbean Basin if our President of the Central Today, halfway through its pro tempore Presidency 22 countries are unable grant each other the four Romana Corporation, of SICA, the Dominican Republic is ideally placed to freedoms they enjoy in the EU? Managing Director of assess the pending challenges ahead for these regions The answer is already foreseen in our agreements. the State Sugar Council of the Caribbean Basin. Our perspective is enhanced The CARIFORUM-EU EPA includes the so-called and Ambassador to the having just chaired in 2013 the Caribbean Forum “regional preference” clause, by virtue of which United States, before (CARIFORUM), comprising the 14 countries of the what each of us gave the EU has to be given to each serving twice as Vice- plus the Dominican Republic. individual CARIFORUM Member State. Many of our President. He was the Two key building blocks are now in place to neighbours benefit already from the high degree of Dominican Republic’s overhaul our relationship with the European Union in openness of the Dominican Republic and thus enjoy a negotiator of both general and the UK in particular. Since January 2008, growing trade surplus. the CARIFORUM-EU CARIFORUM countries, including SICA Members The Central America-EU Association Agreement, agreement, and the and the Dominican Republic, enjoy the benefits for its part, grants EU Member States a single, simple Dominican Republic’s of our Economic Partnership Agreement (EPA) with the trade regime, with unified tariffs and trading documents, accession to SICA. EU and its Member States. And since January 2013 the with quick tariff phase-out periods and with customs Association Agreement between the EU and Central- procedures in the process of becoming harmonised. American countries such as , , The strategic orientation of both of our agreements , and is up and running. is clear: to consolidate regionalism as a major policy Both of these agreements include clear rules goal for all of our countries. liberalising investment as well as trade in goods and For the Dominican Republic, the time has come now services. With a commitment to protecting and to seek convergence between these two agreements, promoting the environment and social sectors. With so that the same approach to regionalism prevails WTO-compatible rules on customs procedures. And for all members of the Caribbean Basin. So that any with the will of all Parties to strengthen the governance investor, no matter his or her nationality, can enjoy required for full transparency in official transactions, the same freedoms available in London, Madrid, Paris including regulations, tenders, investment contracts or or Rome. So that we can all enjoy the potential we trade-related procedures. now have of becoming the fourth largest economy Investors interested in the region will no doubt of Latin America, with strong transport links within celebrate the importance of these agreements in and without the region. And with higher and more 10 strengthening the relationship between the EU and equitable standards of living for all. F

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