The new head of the EU delegation to Barbados and the Eastern Caribbean says the Economic Partnership Agreement scheduled to be signed soon between the EU and the Caribbean will help to reduce poverty by promoting sustainable development.

Speaking at the European Union’s Europe Day cocktail party on May 9 at the Graeme Hall Nature Sanctuary, Mr. Diaz said the EPA was “primarily a development tool to assist in regional integration efforts already in progress,” such as the CSME and the proposed OECS economic union.

Mr. Diaz said the completion of a full EPA had also allowed EDF funding to be directed towards many adjustment needs arising from commitments taken by CARIFORUM countries under the EPA. He noted that the 10th EDF “was geared towards regional economic integration, institutional support and EPA-related priority areas such as capacity building, infrastructure, technological and skills development.”

As such, said Mr. Diaz, the 10th EDF regional program will support CARICOM/CARIFORUM and the CSME, as well as the OECS and the proposed economic union. It would also include linkages with the EPA implementation, “in particular investing in human capital to prepare people and institutions of CARIFORUM to respond to the challenges posed by global trade and economic realities, including the EPA.”

Mr. Diaz also noted that the European Commission was now placing emphasis on good governance in the Caribbean region, particularly in the area of policy dialogue on public financial management. He said, “This is increasingly relevant as we move towards budget support which offers many potential advantages, including encouraging greater ownership, lowering transaction costs and more effective use of aid.”