Opposition spokesman on industry, investment and commerce, Anthony Hylton, says that Britain’s exit from the European Union (EU) will have significant implications for Jamaica and the Caricomregion.

Speaking on Wednesday at Mayberry Investments’ monthly forum at the Knutsford Court Hotel in New Kingston, Hylton said that the long-term impact will, however, depend on how global and regional economies adjust to the evolving business environment, and the uncertainties associated with it.

Speaking on the subject of Britain’s decision to exit the EU, or “Brexit”, Hylton said that there would be serious implications for the assistance received by the region under current European Development Fund (EDF) arrangements.

He said that, for example, this would also affect the Economic Partnership Agreement (EPA), which provides for non-reciprocal treatment of exports from the region into the EU.

According to the former minister for industry, investment and commerce, the UK’s trade and economic relationship with Jamaica and the Caribbean, as articulated through the EPA, has been a vehicle for significant development assistance. However, Britain’s exit would affect this arrangement including some 346 milliion euros in aid for the region for 2014-2020.

“This represents a significant increase in funding which deals with major regional challenges such as the vulnerability to natural disasters and the increase in crime and violence,” he said.

He said that it also raises issues for Jamaica’s export-led policy, “which is a fundamental pillar of our economic expansion”.

He said that as Jamaica can expect short-term fallouts from Brexit, there must be a concerted effort on the part of the government to craft a broader strategy and approach to re-engaging its relationship with the United Kingdom and the EU.

However, he said that this broader strategy must be anchored by a platform for global competitiveness, not protectionism.

“We must design policies that are in step with the direction of global development guided by WTO rules,” Hylton cautioned.

“Trade and investment efforts cannot be organised in a vacuum. It must reflect the industry growth engine and the drive of the country’s productive assets. Any serious assessment of the implications of Brexit for Jamaica must, therefore, be guided by an understanding of the role of trade arrangements in the country’s economic growth process,” he added.

He said that international financial services will have to play a huge role in the country’s economic future.

“In this regard, much can be said about how the global economy has been reconfigured in the past two decades, and how the UK has strengthened its position and established itself as global leader in financial and investment services. The UK’s efforts to strengthen its relationship with China is an integral part of that equation,” he commented.

The forum also heard from Chief Executive Officer (CEO) of the Private Sector Organisation of Jamaica (PSOJ), Dennis Chung, and Executive-in-Residence at the Mona School of Business and Management (MSBM), James Moss-Solomon.

It was chaired by Mayberry’s CEO, Gary Peart.