Transcript Slide 1

Doing Business with Europe: How your Business can
Benefit from the CARIFORUM-EU EPA
A seminar for the Caribbean business community
Port of Spain, Trinidad and Tobago:
4-5 April 2011
CARIFORUM-EC Economic Partnership Agreement (EPA): Opportunities for
Caribbean Businesses
David Hales
Director
External Economic and Trade Relations
CARICOM Secretariat
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Preamble
Why an EPA?
 The CARIFORUM-EU EPA is a trade partnership for sustainable
development, which promotes regional integration and the gradual
integration of CARIFORUM countries into the world economy.
 EPAs are intended to replace the Preferential Trade Arrangements that
ACP States have enjoyed with the EU since 1975 under the four
successive LOME Agreements and the Cotonou Partnership Agreement.
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Negotiations completed in December 2007
14 CARIFORUM States signed the Agreement on 15 October 2008
Haiti signed on 10 December 2008
Provisional application from 29 December 2008
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Structure of the CARIFORUM-EU
EPA
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The CARIFORUM-EU EPA is a comprehensive Agreement by
virtue of the myriad of issue areas that it covers.
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These include: Development Cooperation, Market Access
(Customs Duties), Trade Defense Instruments, Trade Facilitation,
Agriculture and Fisheries, Investment, Trade in Services and Ecommerce, Current Payments and Capital Movement and
Dispute Avoidance.
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The EPA also provides rules, measures and provisions in Trade
Related Issues such as Competition, Innovation and Intellectual
Property, Government Procurement, Environment, Social
Aspects and Protection of Personal Data.
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Market Access - Commodities
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Reciprocal grant of preferences by the EC and CARIFORUM
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Sugar:
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Rice:
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Sugar Protocol to end by 30 September 2009
For the marketing period 2008-2009 CARIFORUM States signatory to
the Protocol to share 30,000 tonne quota increase
duty-free and quota-free access into to the EC market to apply from 1
January 2010
Tariff rate quota in place in 2009, with zero rate of duty and quota of
250,000 tonnes.
Bananas:
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duty-free and quota-free access into EU market from date of
application of the Agreement (i.e. 29 December 2008)
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Market Access – Tariff Liberalization
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For CARIFORUM, a number of items (representing
13.1% of CARIFORUM imports from the EU) have
been excluded from tariff liberalization altogether
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CARIFORUM enjoyed a three (3) year moratorium
across the board
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Reduction of Tariffs on motor vehicles subject to a
ten (10) year moratorium
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Haiti to enjoy a ten (10) year moratorium on certain
petroleum products (of tariff heading 2710.11)
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Market Access – Tariff Liberalization
(Continued)
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CARIFORUM to apply zero rates of duty on a number of items (which represent 52.8% of
CARIFORUM imports from the EU) from 1 January 2009)
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CARIFORUM to liberalize remaining tariffs over prescribed periods (i.e. phased reductions
over 5,10,15,20 and 25 years)
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By the end of fifteen years, CARIFORUM will have liberalized 82.7% of imports from the
EC and by twenty-five years, 86.9%
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Other Duties and Charges’ applied at the border by CARIFORUM States to be maintained
for seven years from the date of application of the Agreement and phased out in the
succeeding three years (i.e. by 29 December 2018)
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Region Preference – CARIFORUM States will confer upon each other concessions granted
to the EU.
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MFN Clause – The EU will grant to CARIFORUM anymore favourable treatment arriving
from subsequent agreements the EU concludes with any third party. CARIFORUM will
only have to grant to the EU any more favourable treatment to a major trading country
with whom they conclude FTA after signature of the EPA
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Trade Defense Instruments
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A bilateral safeguard mechanism, which allows CARIFORUM States to
apply safeguards at a threshold less onerous than that applicable to
multilateral safeguards
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For a period of ten years from the date of entry into force of the EPA,
a Signatory CARIFORUM State may take safeguard measures where
imports of an EC product cause or threaten to cause disturbances to an
infant industry producing like or directly competitive products
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While Safeguard provisions may be applied by a CARIFORUM State
for a period not exceeding four (4) years, such measures may be
extended for a further period not exceeding four (4) years, where
circumstances warranting imposition of safeguard measures persist.
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Safeguard provisions may be applied by the EC for a period not
exceeding two years; extension for a period of two years where
circumstances warrant is available.
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Customs and Trade Facilitation
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The provisions of this Chapter:
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aim to enhance the existing customs and trade facilitation
procedures in CARIFORUM States, while at the same time
maintaining effective control
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provides for harmonized legislation, practice and procedures
across CARIFORUM
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Technical Barriers to Trade and
Sanitary and Phytosanitary Measures
Content
TBT
This Chapter:
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emphasizes enhanced communication and exchange of
information on technical regulations, standards,
conformity assessment and on products affected by
TBTs
SPS
This Chapter:
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Includes provisions dealing with increased capacity of
CARIFORUM countries to protect plant, animal and
public health, while facilitating trade among countries
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Agriculture and Fisheries
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There is a commitment to development cooperation in areas such as
market development, promotion of investment, downstream
processing, development experiences, policy and institutional changes,
rural development, new technologies and issues relating to quality
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The EC has also committed to providing development support,
including in the following areas:
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improving competitiveness of both traditional and non-traditional
export sectors;
development of export marketing capabilities;
compliance with, and adoption of, quality standards;
promotion of private investment and public-private partnerships;
improvement in the ability of CARIFORUM operators to comply with
national, regional and international technical, health and quality
standards; and
building or strengthening scientific, technical, human and institutional
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Investment, Trade in Services and E-Commerce
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Differential market liberalization by the CARICOM MDCs and
the LDCs
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The EU has liberalized 94% of the sectors listed under the
GATS
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The Region has managed to elicit notable gains in the areas of
Mode 4 (temporary movement of natural persons) and
Cultural Industries.
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The Parties recognize that e-commerce increases trade
opportunities in many sectors and have committed to the
maintenance of dialogue on regulatory issues relating to ecommerce
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Investment, Trade in Services and E-Commerce (Cont’d)
(Regulatory Framework)
The EPA also sets out:
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principles for the new regulatory framework for all
courier services that are to be liberalized
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the regulatory principles for telecommunication services
other than broadcasting which are to be liberalized
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principles of the regulatory framework for financial
services liberalized
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principles regarding the liberalization of international
maritime transport services.
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Financial Services, Current Payments and Capital
Movements
 The Articles
on Financial
Services, Current Payments and Capital
Movements provide for effective market
access to, and facilitation for suppliers of
financial services of the Parties
(103-108 and 122-124)
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Trade Related Issues
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Competition (Articles 125-130)
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commitment to free and undistorted competition
support to be provided to CARIFORUM in the establishment,
strengthening and facilitation of the efficient functioning of
Competition Authorities at the national and regional levels
the Parties have committed to cooperate in addressing anticompetitive business practices.
Government Procurement
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CARIFORUM States are required to ensure transparency in the
conduct of procurement activities and non-discriminatory
treatment of eligible suppliers
CARIFORUM is required to comply with rules of
transparency.
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Institutional Provisions
(Articles 227-232)
 The following institutions will be established under
the Agreement:
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A Joint CARIFORUM-EC Council
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CARIFORUM-EC Trade and Development Committee
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Special Committee on Customs Cooperation and Trade
Facilitation
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CARIFORUM-EC Parliamentary Committee
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CARIFORUM-EC Consultative Committee
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The Way Forward
EPA Financing
 Guaranteed and programmable sources for financing EPA
implementation and accompanying measures:
 the National Indicative Programme (NIP) of CARIFORUM
Member States; and
th EDF Regional Indicative Programme (RIP) €72.6
 Under the 10
million allocated for the Caribbean
 Aid for Trade resources to be negotiated and mobilized
 UK Aid for Trade commitments to the CARIFORUM Region and the
establishment of a Trust fund of the CDB
Review
• Comprehensive review of the EPA, no later than Five (5) years after date
of signature, and at subsequent five (5) yearly intervals
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THANK YOU
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