The Implications of Brexit for the Caribbean’s Future Relationship with Britain and the EU

Abstract

The UK Brexit referendum to leave the EU has created concerns internationally, particularly for countries that have formal trade, aid and investment treaties with the EU and none with Britain alone. The notion of a Commonwealth Free Trade Agreement (FTA) is a non-starter and would bring no benefits to the Caribbean. But, Britain outside the EU deprives the Caribbean of a sympathetic voice on a range of issues, including financial services, and alters the level of official development assistance that will be available from remaining EU members that have no historical relationship with the English-speaking Caribbean. The importance of the UK as a market for their goods and services make it imperative for Caribbean countries to start early ‘talks’ with London so as not to be crowded out by FTAs that the UK will conclude with countries larger and richer than the Caribbean. At the same time, Brexit provides an opportunity for the Caribbean to revisit its unsatisfactory Economic Partnership Agreement with the EU. Caribbean countries need to determine their objectives and take early initiatives to realise them.