Article 19 of the Cariforum-EC EPA commits Cariforum to grant Europe the same treatment it grants to any ‘major trading economy’ in subsequent free trade agreements; defined as a country or group of countries that accounts for more than 1 percent or 1.5 percent respectively of world merchandise exports. It is believed that the ‘Interim’ EPAs signed with several African and Pacific states contain a similar provision. 

This concession would apply to future trade agreements made with developing countries such as China (8.2 percent of world merchandise exports), Brazil (1.14) and India (1.00) and with  the MERCOSUR group (Argentina, Brazil, Paraguay and Uruguay, 1.53 percent).  In a statement to the WTO’s General Council, Brazil has argued that the EPA MFN clause is inconsistent with the GATT-WTO provisions for Special and Differential Treatment to developing countries and will inhibit South-South trade.

Posted below are the text of the relevant clause of Cariforum-EC EPA (Article 19),  the text of Brazil’s statement, and a comment by David Jessop, trade writer.

 Article 19 of the CARIFORUM-EC EPA

Brazil’s Statement to the WTO of February 4, 2008

Most Favoured Nation concession a danger for the Caribbean - David Jessop  Jamaica Gleaner, 14/03/08