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  • 1. EU-CARIFORUM Economic Partnership Agreement (EPA) Overview Workshop for Regional Media
  • 2. EU-CARIFORUM Economic Partnership Agreement (EPA) Welcome Trevor L Boothe L. Director, Technical Cooperation, Partnerships and Information
  • 3. EU-CARIFORUM Economic Partnership Agreement (EPA) An Overview Including: Mandate, Objectives, Organization & Process Amb. Dr. Amb Dr Richard L Bernal OJ L. Bernal, Director-General
  • 4. Presentation Outline The Cotonou Mandate EPA Negotiation Plan and Schedule g CARIFORUM Organisation Negotiation Objectives Overall Evaluation CRNM EPA Overview Workshop for Regional Media 4 Barbados * 15th February 2008
  • 5. The Cotonou Partnership Agreement (signed 23 J ( i d June 2000) Broad Objectives (Chap 1, Art. 34) include: – Smooth and gradual integration into the world economy – Promote sustainable development, – C t ib t t poverty eradication Contribute to t di ti – States play a full part in international trade – Cooperation to enhance production, supply and trading capacity, as well as capacity to attract investment CRNM EPA Overview Workshop for Regional Media 5 Barbados * 15th February 2008
  • 6. The Cotonou Partnership Principles (Chap 1, Art. 35): – “A true, strengthened and strategic partnership” to promote development, building on previous ACP-EC Conventions – Trade development measures to promote competitiveness – Build on regional integration process as a key instrument for integration into world economy – T k account of diff Take t f different needs and llevels of d l t d d l f development of ACP t f countries and regions – Ensure S&D for all ACP countries and special treatment for LDCs p taking due account of the vulnerability of small, landlocked and island countries i.e., asymmetrical commitments CRNM EPA Overview Workshop for Regional Media 6 Barbados * 15th February 2008
  • 7. Cotonou Provisions New Trading Arrangements (Chap 2 Art 36 & 37) 2, Art. – Conclude new WTO compatible trading arrangements, removing progressively barriers to trade between them and enhancing cooperation in all areas relevant to trade – NTAs to be introduced gradually; recognition of need for a preparatory period ending on 31 December 2007 during which non-reciprocal non reciprocal preferences are maintained – Agree on the need to review commodity protocols CRNM EPA Overview Workshop for Regional Media 7 Barbados * 15th February 2008
  • 8. Cotonou Provisions Negotiations to start September 2002 New trading arrangement to enter into force on 1 January 2008 Regional configurations to be agreed Caribbean (and other ACP regions) aim to negotiate an EPA LDCs have EBA option Non-LDCs could seek alternative to EPA All ACP All-ACP Phase - no negotiations CRNM EPA Overview Workshop for Regional Media 8 Barbados * 15th February 2008
  • 9. Why finish on time? 1. Expiration of GATT Article 1 waiver Dec. 31, 2007; 2. 2 Without EPA GSP or MFN would hurt traditional sectors and EPA, result in job losses (only Haiti would get EBA as an LDC); 3. Cotonou trade protocol would have to be renegotiated; 4. Even if 3 above happened, WTO members would be hostile to pp , renewing a waiver for ACP; 5. 5 Interim agreements were inferior to comprehensive agreements as market access leverage would be lost; 6. Getting f mover advantage, and extracting more concessions G first from EU CRNM EPA Overview Workshop for Regional Media 9 Barbados * 15th February 2008
  • 10. CARIFORUM EC CARIFORUM-EC Negotiations CARIFORUM-EC negotiations launched in Kingston, April 2004 p Plan and Schedule for EPA agreed Four negotiating groups – Market Access (Goods) – Services and Investment – Trade-related Issues (TRI) – Legal and Institutional Issues Four Phases Three levels of negotiation: Ministerial, Principal Negotiators and Technical CRNM EPA Overview Workshop for Regional Media 10 Barbados * 15th February 2008
  • 11. CARIFORUM Organisation Training of officials and others Regional coordination – TWGs – Mi i t i l (COTED and other) Ministerial d th ) – Heads of Government Consultations: national and sectoral Non-official Stakeholders – private sector engagement – civil society (NGOs, media, trade unions, academia, parliamentarians, etc.) College of N C ll f Negotiators i CRNM EPA Overview Workshop for Regional Media 11 Barbados * 15th February 2008
  • 12. Negotiation Objectives CARIFORUM objectives include – Minimise negative impact of liberalisation in all areas, particularly regarding LDCs; C – Maximise market access in goods, – Retain preferences & minimize preference erosion – Improve services access, particularly where the Region can benefit in the short term; – Encourage investment that is environment-friendly CRNM EPA Overview Workshop for Regional Media 12 Barbados * 15th February 2008
  • 13. Negotiation Objectives Enhance competitiveness and diversification through iinnovation ti Protect and stimulate SMEs Promote regional integration, economic cooperation and good governance Conclude C l d a modern t d agreement d trade t Keep subjects manageable avoiding politically or economically unacceptable ones i ll t bl Secure additional funding for capacity building, iintegration support, EPA implementation, etc. t ti t i l t ti t CRNM EPA Overview Workshop for Regional Media 13 Barbados * 15th February 2008
  • 14. Negotiation Objectives EC stated objectives – Foster regional integration conceived as single economic space – Market building purpose – Non-commercial ambition – Reciprocity expected even for LDCs in EPA – Continued support for CF development priorities CRNM EPA Overview Workshop for Regional Media 14 Barbados * 15th February 2008
  • 15. Issue Areas/Concerns CARIFORUM issues/concerns DR, Haiti and The Bahamas within CARIFORUM and CARICOM constructs Region-to-region agreement; R i t i t – CF two-tiered integration reality; – EC’s regional integration ambition exceeds Region’s stated EC s Region s ambition • Single economic space, • f circulation, free i l ti • common institutions – Parties to EPA; WTO compatibility (Market access & Services) CRNM EPA Overview Workshop for Regional Media 15 Barbados * 15th February 2008
  • 16. Issue Areas/Concerns Non reciprocity Non-reciprocity and CARICOM LDCs & Haiti Dominance of revenue concern Relationship bet een concessions granted to between the EC and intra-CF concessions: Regional preference; f MFN demand re industrialised countries and major developing countries ACP solidarity & coordination y CRNM EPA Overview Workshop for Regional Media 16 Barbados * 15th February 2008
  • 17. Overall Evaluation Achievements – Adequate technical preparation and stakeholder consultation – The Region has kept together: Intra-regional coordination a major challenge – Negotiators did a good job: they could do nothing without MS approval; mandates often inflexible – CF completed a full EPA – the only region so far - and within mandated timeframe – Objectives achieved (subject-wise, balance, asymmetry and most of all developmental) CRNM EPA Overview Workshop for Regional Media 17 Barbados * 15th February 2008
  • 18. Overall Evaluation Precedents for the Region and for negotiations: – Subject comprehensiveness – Reciprocity – 25 years phasing of liberalisation – Inclusion of moratorium – Treatment of ODCs – Best EU Services offer; the inclusion of entertainment; address tourism concerns CRNM EPA Overview Workshop for Regional Media 18 Barbados * 15th February 2008
  • 19. Overall Evaluation Precedents (continued): – Treatment of Innovation – Transparency without market access in GP – Treatment of development High cost of no-EPA avoided: GSP and MFN Influence on future negotiations CRNM EPA Overview Workshop for Regional Media 19 Barbados * 15th February 2008
  • 20. Overall Evaluation Areas for Improvement – Greater consultation with certain categories of stakeholders – Generally weak stakeholder responsiveness to queries – Insufficient information dissemination – Member states not doing their homework occasioning delays in the coordination process – Insufficient inter-ministerial coordination at national level CRNM EPA Overview Workshop for Regional Media 20 Barbados * 15th February 2008
  • 21. What lies ahead? Public relations aspect: private sector, civil society reactions i t ti Signature, provisional application and ratification, entry into force Implementation challenges p g Economic reform agendas EC to deliver on commitments (effective and timely aid delivery) Monitoring of implementation and impact CRNM EPA Overview Workshop for Regional Media 21 Barbados * 15th February 2008
  • 22. Conclusion If the EPA is to reduce poverty: – The private sector must seize opportunities; – Governments should use the security of EPA aggressively to attract investment; – The region should utilise the EPA to further regional integration; and – EC funding should be forthcoming on a timely basis; CRNM EPA Overview Workshop for Regional Media 22 Barbados * 15th February 2008
  • 23. Questions CRNM EPA Overview Workshop for Regional Media 23 Barbados * 15th February 2008
  • 24. Thank You Please visit our Website: http://www.crnm.org Contact: Amb. Dr. Richard L. Bernal, OJ richard.bernal@crnm.org richard bernal@crnm org Tel: +1876 946 2329 Fax: +1876 978 4360 CRNM EPA Overview Workshop for Regional Media 24 Barbados * 15th February 2008
  • 25. EU-CARIFORUM Economic Partnership Agreement (EPA) Market Access In Goods Henry S. Gill Senior Director
  • 26. AGENDA 1. NEW TRADING ARRANGEMENTS IN COTONOU 2. CARIFORUM NEGOTIATING OBJECTIVES J 3. ADDITIONAL ISSUE AREAS/CONCERNS 4. 4 WHAT ACCESS DID CARIFORUM OBTAIN? 5. WHAT ACCESS DID CARIFORUM GIVE? 6. DEVELOPMENT COOPERATION SUPPORT 7. DID CARIFORUM GET A GOOD DEAL? CRNM EPA Overview Workshop for Regional Media 26 Barbados * 15th February 2008
  • 27. 1. NEW TRADING ARRANGEMENTS Title 2, Chapter 2, Articles 36 & 37 • Agree to conclude new WTO compatible trading g p g arrangements, removing progressively barriers to trade between them and enhancing cooperation in all areas relevant to trade – From non-reciprocal preferences to reciprocity – WTO requirement: “Substantially all trade” (SAT) Substantially trade • How much? Around 90% of two-way trade • How soon? 10-12 years – Development cooperation – Scope of NTAs CRNM EPA Overview Workshop for Regional Media 27 Barbados * 15th February 2008
  • 28. 1. NEW TRADING ARRANGEMENTS • The Parties agree that the NTAs shall be introduced gradually and recognise the need, therefore, for a preparatory period ….which shall end by 31 December 2007… during which the non-reciprocal preferences shall be maintained – ‘P ‘Preparatory period’ f d’ for: • “Economic partnership agreements shall be negotiated” starting September 2002 • Capacity-building in the public and private sector, including measures to enhance competitiveness, for strengthening regional organisation and for support to regional integration initiatives, etc. – ‘Gradually’ means: Gradually • Roll-over of Lomé preferences under Cotonou until 31 December 2007 • Reciprocity kicks in gradually after that date CRNM EPA Overview Workshop for Regional Media 28 Barbados * 15th February 2008
  • 29. 1. NEW TRADING ARRANGEMENTS • “Negotiations shall aim notably at establishing the timetable g y g for the progressive removal of barriers to trade between the Parties, in accordance with the relevant WTO rules” • “N ti ti “Negotiations shall t k account of th l l of d l h ll taken t f the level f development t and the socio-economic impact of trade measures on ACP countries, and their capacity to adapt and adjust their economies to the liberalisation process… • Parties agree on the need to review commodity protocols in the context of NTAs in particular as regards their compatibility NTAs, with WTO rules • NTAs to enter into force January 1, 2008 CRNM EPA Overview Workshop for Regional Media 29 Barbados * 15th February 2008
  • 30. 2. 2 CARIFORUM NEGOTIATING OBJECTIVES – Maximise market access in goods through removal of tariffs and quotas – Retain preferences & minimize preference erosion – Remove non-tariff blockages g – Minimise negative impact of liberalisation/opening on • Production and particularly SMEs • Employment • Tariff revenue & ODC concerns • Food security concerns • Rural livelihood and rural development – Secure additional funding for capacity building, integration support, EPA implementation, etc. CRNM EPA Overview Workshop for Regional Media 30 Barbados * 15th February 2008
  • 31. 3. OTHER CARIFORUM ISSUES & CONCERNS • DR, Haiti and The Bahamas within CARIFORUM a dC and CARICOM constructs CO co st ucts • Non-reciprocity and CARICOM LDCs & Haiti • EC’s Regional Preference demand that is the EC s demand, is, relationship between concessions granted to the EC and intra-CF concessions • EC’s MFN demand CRNM EPA Overview Workshop for Regional Media 31 Barbados * 15th February 2008
  • 32. 4. WHAT ACCESS DID CARIFORUM OBTAIN? • Immediate DFQF access to EU market for all products d – DOMs special case – rice and sugar two-year delays • Improved rules of origin g • Sugar: – Sugar Protocol (Caribbean quota 465,336 tons of total ACP quota of 1.4 million tons): • EU C Council d il denounced SP l t S t effective 1 O t b 2009 d last Sept. ff ti October • Quotas increased by 60,000 tons • Reallocation of shortfall on SP – After Sept 2009: DFQF CRNM EPA Overview Workshop for Regional Media 32 Barbados * 15th February 2008
  • 33. 4. WHAT ACCESS DID CARIFORUM OBTAIN? • Rice: – Two years for DFQF to begin – In 2008 and 2009 quota increases (29% and 72%, respectively) above present 145 000 t ti l ) b t 145,000 tons: – Tariff (65 euro per ton) removed immediately – No distinction between broken rice and whole grain g • Bananas: – DFQF – Joint Declaration on Bananas: commits funding for industry adjustments including diversification and addressing social impacts of NTAs g p f CRNM EPA Overview Workshop for Regional Media 33 Barbados * 15th February 2008
  • 34. 4. WHAT ACCESS DID CARIFORUM OBTAIN? • Zero for zero on export subsidies, i.e., EU eliminates such subsidies on products that CF liberalises liberalises. • However, CF allowed to keep such subsidies that it applies in keeping with WTO rules. pp p g • CF exports excluded from EC use of multilateral safeguards g CRNM EPA Overview Workshop for Regional Media 34 Barbados * 15th February 2008
  • 35. 5. WHAT ACCESS DID CARIFORUM GIVE? • CF to liberalise at least 80% of imports • CF liberalisation starts after 3 years, i.e. 2011 • Lib li ti commitments extend 25 years! Liberalisation it t t d ! – In 2011: 52.8% of imports liberalised – Within Withi 5 years 2013 2013: 56.0% liberalised 56 0% lib li d – Within 10 yrs 2018: 61.1% liberalised – Within 15 yrs 2023: 82.7% 82 7% liberalised – Within 20 yrs 2028: 84.6% liberalised – Within 25 yrs 2033: y 86.9% liberalised CRNM EPA Overview Workshop for Regional Media 35 Barbados * 15th February 2008
  • 36. 5. WHAT ACCESS DID CARIFORUM GIVE? • CF excludes from liberalisation 13.1% of imports – 493 most sensitive items (6-digit ) level): – Mainly agricultural and processed agricultural products, including meat and fishery products; – Beverages and tobacco; – Some chemicals, paints, soaps, apparel; –IIron and steel products; d l d – Furniture, mattresses and other industrial products. products CRNM EPA Overview Workshop for Regional Media 36 Barbados * 15th February 2008
  • 37. 5. WHAT ACCESS DID CARIFORUM GIVE? • 10 yrs for cars and gasoline (convert to excise tax) • Removal of ODCs: maintained over 7 yrs and phased out over next 3 yrs (EU assistance tax reform) • However, two protections for CARIFORUM: – Safeguard provision • but no ‘special safeguard’ for Agriculture – Balance of payments provision CRNM EPA Overview Workshop for Regional Media 37 Barbados * 15th February 2008
  • 38. 6. DEVELOPMENT COOPERATION SUPPORT: Examples f E l from A i lt Agriculture and Fi h i d Fisheries • Improvement in the competitiveness of potentially viable production, including downstream processing through innovation, training, promotion of linkages and other support activities; • Development of export marketing capabilities, including market research, as well as the identification of options for the improvement of marketing infrastructure and transportation, and the identification of financing and cooperation options for producers and traders; d d d • Compliance quality standards relating to food production and marketing, including standards relating to environmentally and socially sound agricultural practices and organic and non-genetically modified foods; g g y ; • Promotion of private investment and public-private partnerships in potentially viable production; • Improvement in the ability of CARIFORUM operators to comply with national, regional and i i l d international technical, h l h and quality standards f fi h and fi h i l h i l health d li d d for fish d fish products; • Building or strengthening the scientific and technical human and institutional capability at regional level for sustainable trade in fisheries products, including p y g p , g aquaculture CRNM EPA Overview Workshop for Regional Media 38 Barbados * 15th February 2008
  • 39. 7. IS IT A GOOD DEAL? • Is market access assymetrical? Could it be more so? y • Is our liberalisation gradual taking account of CARIFORUM sensitivities & vulnerability? • Could we have got any more market access? • Have our development priorities been catered to? • What is the alternative to EPA? – GSP and MFN access • Current status: Agreement not yet in force or even applied provisionally but CARIFORUM already enjoys EPA access as of January 1, 2008 j y y CRNM EPA Overview Workshop for Regional Media 39 Barbados * 15th February 2008
  • 40. Questions CRNM EPA Overview Workshop for Regional Media 40 Barbados * 15th February 2008
  • 41. Thank You Please visit our Website: http://www.crnm.org htt // Contact: Henry S. Gill henry.gill@crnm.org yg @ g Tel: +1246 430 1670 Fax: +1246 228 9528 CRNM EPA Overview Workshop for Regional Media 41 Barbados * 15th February 2008
  • 42. Coffee Break CRNM EPA Overview Workshop for Regional Media 42 Barbados * 15th February 2008
  • 43. EU-CARIFORUM Economic Partnership Agreement (EPA) An Overview Services & Investment Ramesh Chaitoo Head, Services Trade Unit
  • 44. Basic Structure of S& I provisions i i 1. 1 Rules or disciplines on Services & Investment 2. 2 Market access commitments (Schedules) 3. Protocol on Cultural cooperation 4. Link with other parts of EPA CRNM EPA Overview Workshop for Regional Media 44 Barbados * 15th February 2008
  • 45. Preparatory work • Decided on CF market access interests • Very long and tedious process - national & regional consultations, ministerials, sectoral groups, etc. • CRNM recommended that countries identify: (i) S t Sectors i which th need i in hi h they d investment & t t efficiencies to promote development (ii) Sectors with offensive market access interests in the EU ( ) (iii) Sensitive sectors CRNM EPA Overview Workshop for Regional Media 45 Barbados * 15th February 2008
  • 46. Cariforum Broad objectives j • Get improved market access in EU & support to improve export capacity in services • Preserve the space for Caribbean countries to continue to promote their own national p processes of economic development • EPA Services negotiations must take into account and be guided b th i t t db id d by the internall regional integration process among Caribbean countries & reflect the particular p sensitivities and needs of individual countries and/ sub-groupings within the Caribbean. CRNM EPA Overview Workshop for Regional Media 46 Barbados * 15th February 2008
  • 47. Cariforum Services Objectives Obj ti • Professional services, tourism , • Entry for Short term Visitors for Business Purposes & Mode 4 • Market access for cultural industries in spite of EC sensitivities - Cultural protocol • Development support f dealing with: D l t t for d li ith Information asymmetries, EU regulatory regimes, regimes interface with EC firms capacity firms, building, etc. CRNM EPA Overview Workshop for Regional Media 47 Barbados * 15th February 2008
  • 48. EU Main interests • Big infrastructural services - finance, maritime transport, computer and related, environmental • Commercial Presence (Mode 3) in p particular & key p y personnel • Meet WTO rules and scrutiny • Did not make formal requests for market opening by CF CRNM EPA Overview Workshop for Regional Media 48 Barbados * 15th February 2008
  • 49. Key Points • Services supplied by government excluded • Subsidies not covered by Agreement • Government free to regulate • Government procurement not covered • Immigration p g policies & p procedures not covered CRNM EPA Overview Workshop for Regional Media 49 Barbados * 15th February 2008
  • 50. Structure of Services & Investment Titl I t t Title • Chap 1 - General provisions • Chap 2 - Commercial Presence (Investment) • Chap 3 - Cross Border Supply of services • Chap 4 - Temporary Presence of Natural Persons for Business Purpose • Chap 5 - Regulatory Framework (with sectoral rules) ) CRNM EPA Overview Workshop for Regional Media 50 Barbados * 15th February 2008
  • 51. Sectoral provisions • Computer • Courier • Telecoms • Financial services • M iti Maritime t transportt • Tourism 6. E-commerce 7. Cooperation CRNM EPA Overview Workshop for Regional Media 51 Barbados * 15th February 2008
  • 52. Investment Interests • Address the declining interest of EU firms in Caribbean by a new complete framework • CF wanted comprehensive Investment p provisions: EC had limited mandate • Create a regime for investment & trade in EPA g to attract EU & 3rd country firms to CF states • Eliminate the need to negotiate new bilateral investment treaties CRNM EPA Overview Workshop for Regional Media 52 Barbados * 15th February 2008
  • 53. Investment Rules • Market access • National Treatment and MFN • Excludes - nuclear materials; arms; audiovisual; cabotage; air traffic rights • Forbids corruption by investors • Maintains core labour standards • Safeguard the environment • Forbids lowering of environmental, labour or g occupational health & safety standards to attract investment CRNM EPA Overview Workshop for Regional Media 53 Barbados * 15th February 2008
  • 54. Market Access for investment • EC - commitments very broad and deep except for a few sectors such as energy, health, education • EC - limitations on landholding, and other restrictions in mainly new Members • CF - commitments in manufacturing, mining, etc but limitations re landholding type of corporate landholding, entity, SMEs, etc. • CF - Reservations in agriculture, forestry, fishing, mining, food & beverage, furniture, in some states; Only Dominican Republic liberalized electricity & gas CRNM EPA Overview Workshop for Regional Media 54 Barbados * 15th February 2008
  • 55. Rules on Services • Mainly GATS approach • National Treatment, MFN N ti lT t t • Similar exclusions of sectors as investment chapter • Mutual recognition of qualifications • Special categories of natural persons for temporary entry: – Key personnel (managers, specialists) & graduate trainees (managers – Business services sellers – Contractual services suppliers – Independent professionals I d d t f i l – Short term visitors for business purposes CRNM EPA Overview Workshop for Regional Media 55 Barbados * 15th February 2008
  • 56. Short term visitors for business purposes b i EC and CF states to facilitate temporary entry for the following activities for up to 90 y days: – Research & design – Marketing – Training seminars – Trade fairs and exhibitions – Sales & purchasing – Tourism personnel CRNM EPA Overview Workshop for Regional Media 56 Barbados * 15th February 2008
  • 57. Services Market Access Granted G t d • CF - Positive list for services commitments like GATS template; limited sectoral coverage to 60-75% of services sectors. (Dom Rep is 90 %). S %) Some opening in the f i i h future. Very limited V li i d Mode 4 commitments. • EC - Different structure but positive list • Very broad sectoral coverage - more than 90 %; much greater access granted for Mode 4 to CF suppliers than in WTO; Limitations in new member states & starting in 2011 & 2014 CRNM EPA Overview Workshop for Regional Media 57 Barbados * 15th February 2008
  • 58. Tourism • Rules to prevent anti-competitive anti competitive behaviour by large tourism operators • Support for SMEs • Cooperate re mutual recognition of tourism requirements. qualifications, li i t lifi ti licences • Development support for training, standards, environmental management CRNM EPA Overview Workshop for Regional Media 58 Barbados * 15th February 2008
  • 59. Cultural Industries • Major g j gains - in market access and Cultural Protocol which provides for collaboration, support, movement of artists and cultural practitioners and special provisions for audio audio- visual collaboration • 26 EU states granted access for Contractual Service suppliers in Entertainment services • First time ever for EC in a sector that is very sensitive and for which trade commitments are not normally taken CRNM EPA Overview Workshop for Regional Media 59 Barbados * 15th February 2008
  • 60. Entertainment Services CPC 9619 Entertainment services (other than audio-visual) 96191 Theatrical producer, singer group, band and orchestra entertainment services 96192 Services provided by authors, composers, sculptors, p y , p , p , entertainers and other individual artists 96193 Ancillary theatrical services n.e.c. 96194 Circus, Circus amusement park and similar attraction services 96195 Ballroom, discotheque and dance instructor services 96199 Other entertainment services n.e.c. CRNM EPA Overview Workshop for Regional Media 60 Barbados * 15th February 2008
  • 61. Temporary entry access for CF Contractual Service Suppliers (CSS) in 29 sectors in EU 1. Legal advisory services in respect of international public law and foreign law 2. Accounting and bookkeeping services 3. Taxation advisory services 4. Architectural services 5. Urban planning and landscape architecture services 6. Engineering services 7. Integrated Engineering services 8. Medical and dental services 9. Veterinary services 10. Midwives services 11. Services provided by nurses, physiotherapists and paramedical personnel 12. Computer and related services p 13. Research and development services CRNM EPA Overview Workshop for Regional Media 61 Barbados * 15th February 2008
  • 62. Temporary Entry for CSS in EU p y y 14. Advertising services 15. Market Research and Opinion Polling 16. Management consulting services 17. Services related to management consulting 18. Technical testing and analysis services 19. Related scientific and technical consulting services 20. Maintenance and repair of equipment 21. Chef de cuisine services 22. Fashion model services 23. Translation and interpretation services 24. Site investigation work 25. Higher education services (only privately-funded services) 26. Environmental services 27. Travel agencies and tour operators' services g p 28. Tourist guides services 29. Entertainment services other than audiovisual services CRNM EPA Overview Workshop for Regional Media Barbados * 15th February 2008 62
  • 63. Access for Independent Professionals in EU P f i l i 1. Legal advisory services in respect of international public law and foreign law (i.e. non-EU law) (i e non EU 2. Architectural services 3. Urban planning and landscape architecture services 4. Engineering services 5. Integrated Engineering services 6. 6 Computer and related services C t d l t d i 7. Research and development services 8. Market Research and Opinion Polling p g 9. Management consulting services 10. Services related to management consulting 11. 11 Translation and interpretation services T l i di i i CRNM EPA Overview Workshop for Regional Media 63 Barbados * 15th February 2008
  • 64. Technical Cooperation • Improve ability of CF suppliers to meet p y pp regulations and standards in EU • Improve export capacity of CF suppliers (culture, tourism, SME MRA ) i SMEs, MRAs) • Interaction & dialogue between CF and EC firms • Add Address quality and standards i CF lit d t d d in • Develop & implement regulatory regimes • Establish mechanisms for promoting investment & joint ventures • Other activities CRNM EPA Overview Workshop for Regional Media 64 Barbados * 15th February 2008
  • 65. Questions CRNM EPA Overview Workshop for Regional Media 65 Barbados * 15th February 2008
  • 66. Thank You Please visit our Website: http://www.crnm.org htt // Contact: Ramesh Chaitoo ramesh.chaitoo@crnm.org @ g Tel: +1246 430 1670 Fax: +1246 228 9528 CRNM EPA Overview Workshop for Regional Media 66 Barbados * 15th February 2008
  • 67. EU-CARIFORUM Economic Partnership Agreement (EPA) Trade Related Issues Including: Government Procurement, Innovation Procurement & Intellectual Property Malcolm Spence Senior Coordinator Intellectual Property, Science and Technology
  • 68. OVERVIEW PART II, TITLE IV , (Six Chapters) COMPETITION INNOVATION AND INTELLECTUAL PROPERTY PUBLIC PROCUREMENT ENVIRONMENT SOCIAL ASPECTS PROTECTION OF PERSONAL DATA CRNM EPA Overview Workshop for Regional Media 68 Barbados * 15th February 2008
  • 69. COMPETITION Targets anti-competitive collusion and abuse of dominant market position through information exchange and enforcement collaboration CRNM EPA Overview Workshop for Regional Media 69 Barbados * 15th February 2008
  • 70. COMPETITION Provides for support over 5 year institutional capacity building transition period and 6 years confidence building collaboration CRNM EPA Overview Workshop for Regional Media 70 Barbados * 15th February 2008
  • 71. COMPETITION Recognises CARIFORUM “variable variable geometry” integration commitments (e.g. CSME) Shelters public enterprises and other monopolies where necessary but promotes their withdrawal from discriminatory participation in competitive markets CRNM EPA Overview Workshop for Regional Media 71 Barbados * 15th February 2008
  • 72. INNOVATION AND INTELLECTUAL PROPERTY Recognises relationship between level of development, innovation system capacity and d l t i ti t it d level of protection of intellectual property Allows for the participation of CARIFORUM in EU framework programmes, specific programmes and other activities CRNM EPA Overview Workshop for Regional Media 72 Barbados * 15th February 2008
  • 73. INNOVATION AND INTELLECTUAL PROPERTY Assures that nothing in this Agreement shall be b construed as to impair the promotion of t d t i i th ti f access to medicines Provides for the protection of traditional knowledge and equitable benefit sharing from its use CRNM EPA Overview Workshop for Regional Media 73 Barbados * 15th February 2008
  • 74. INNOVATION AND INTELLECTUAL PROPERTY Provides for priority cooperation in: Competitiveness and Innovation Science and Technology Information and Communications Technology Eco-innovation and Renewable Energy CRNM EPA Overview Workshop for Regional Media 74 Barbados * 15th February 2008
  • 75. INNOVATION AND INTELLECTUAL PROPERTY Provides for priority cooperation in: Reinforcement of Regional initiatives in Intellectual Property Rights Preparation of National laws and support for National institutions in order to facilitate meeting the obligations undertaken CRNM EPA Overview Workshop for Regional Media 75 Barbados * 15th February 2008
  • 76. INNOVATION AND INTELLECTUAL PROPERTY Provides for priority cooperation in: Identifying and protecting products using Geographical indications, particularly where GIs would protect local traditional knowledge and biodiversity The development by trade or professional associations of codes of conduct CRNM EPA Overview Workshop for Regional Media 76 Barbados * 15th February 2008
  • 77. INNOVATION AND INTELLECTUAL PROPERTY Provides a 6/7 year transition period for the Intellectual P I t ll t l Property obligations, with the t bli ti ith th possibility of extension taking into account the development priorities and level of d l t i iti dl l f development in CARIFORUM CRNM EPA Overview Workshop for Regional Media 77 Barbados * 15th February 2008
  • 78. INNOVATION AND INTELLECTUAL PROPERTY Provides a 13/14 year transition period for Haiti H iti as an LDC with the possibility of ith th ibilit f extension taking into account decisions in the WTO Encourages the transfer of technology from the EU to CARIFORUM Encourages continued regional integration CRNM EPA Overview Workshop for Regional Media 78 Barbados * 15th February 2008
  • 79. INNOVATION AND INTELLECTUAL PROPERTY Improves protection of digital content and facilitates f ilit t access and delivery of licences d d li f li Improves the protection for Geographical Indications for products other than wines and spirits Provides asymmetrical obligations concerning patent Treaties CRNM EPA Overview Workshop for Regional Media 79 Barbados * 15th February 2008
  • 80. INNOVATION AND INTELLECTUAL PROPERTY Facilitates the collection of evidence on infringement and the enforcement of i fi t d th f t f Intellectual Property Rights CRNM EPA Overview Workshop for Regional Media 80 Barbados * 15th February 2008
  • 81. PUBLIC PROCUREMENT Provides that the public procurement process be transparent when the sum involved EXCEEDS: 130,000 SDRs for supplies 130,000 SDRs for 130 000 SDR f services i 5,000,000 SDRs for works CRNM EPA Overview Workshop for Regional Media 81 Barbados * 15th February 2008
  • 82. PUBLIC PROCUREMENT Provides an extensive list of exceptions, such as: exceptions Land or existing buildings Various financial services Agricultural p g products for food aid Programme material intended for broadcasting CRNM EPA Overview Workshop for Regional Media 82 Barbados * 15th February 2008
  • 83. PUBLIC PROCUREMENT An initial capacity building transition period of 2 years with a possible extension of 1 more year for individual States A transition period of 5 years for the Less Developed C D l d Countries of CARICOM i f CRNM EPA Overview Workshop for Regional Media 83 Barbados * 15th February 2008
  • 84. PUBLIC PROCUREMENT Provides for cooperation in the creation of a regional on-line facility for the effective dissemination of information on tendering opportunities If, i If in spite of this cooperation, the capacity still i f hi i h i ill does not exist at the end of the 2 year transition period, it can be extended by a further 3 years i d i b d db f h CRNM EPA Overview Workshop for Regional Media 84 Barbados * 15th February 2008
  • 85. PUBLIC PROCUREMENT No commitment is undertaken to provide Market Access CRNM EPA Overview Workshop for Regional Media 85 Barbados * 15th February 2008
  • 86. ENVIRONMENT Encourages the trade in goods and services beneficial to environment Recognises the need to regulate trade to ensure R i h d l d the achievement of a Party’s justifiable sustainable development objectives i bl d l bj i Recognises that CARIFORUM States might need special measures CRNM EPA Overview Workshop for Regional Media 86 Barbados * 15th February 2008
  • 87. ENVIRONMENT Provides a consultative process that precedes that of the Dispute Settlement Mechanism Provides f P id for cooperation in the development of i i h d l f environmentally friendly CARIFORUM products using CARIFORUM natural d i l resources Provides for cooperation in public awareness CRNM EPA Overview Workshop for Regional Media 87 Barbados * 15th February 2008
  • 88. SOCIAL ASPECTS Encourages adherence to internationally recognised core labour standards i d l b d d Recognises the need to regulate trade to ensure the achievement of a Party’s social cohesion and development policies CRNM EPA Overview Workshop for Regional Media 88 Barbados * 15th February 2008
  • 89. SOCIAL ASPECTS Provides a consultative process that precedes that of the Dispute Settlement Mechanism h f h Di S l M h i Provides for cooperation in the development of measures for the promotion of Decent Work Provides for cooperation in p p public awareness CRNM EPA Overview Workshop for Regional Media 89 Barbados * 15th February 2008
  • 90. PROTECTION OF PERSONAL DATA Encourages the transborder flow of personal data for processing by maintaining effective data protection regimes Recognises the importance of cooperation in R i th i t f ti i order to facilitate the development of appropriate data protection regimes i t d t t ti i CRNM EPA Overview Workshop for Regional Media 90 Barbados * 15th February 2008
  • 91. Questions CRNM EPA Overview Workshop for Regional Media 91 Barbados * 15th February 2008
  • 92. Thank You Please visit our Website: http://www.crnm.org htt // Contact: Malcolm Spence malcolm.spence@crnm.org p @ g Tel: +1246 430 1670 Fax: +1246 228 9528 CRNM EPA Overview Workshop for Regional Media 92 Barbados * 15th February 2008
  • 93. Lunch CRNM EPA Overview Workshop for Regional Media 93 Barbados * 15th February 2008
  • 94. EU-CARIFORUM Economic Partnership Agreement (EPA) EPA as a Development Tool Carl B. Greenidge Deputy Senior Director p y
  • 95. OUTLINE 1. EPA and not EPA 2. The Development Issue in the Context of ACP EU Relations 3. Caribbean Pre-occupations 4. Trade Instruments in Support of Development 5. 5 The C ribb n ‘Situation’, Th Caribbean ‘Sit ti n’ 2008 6. What is so special about EPAs? 7. EPAs and Development 8. EPA a la Cariforum 9. The Search for Development in EPAs p 10. Conclusions CRNM EPA Overview 95 11. Some useful references Workshop for Regional Media Barbados * 15th February 2008
  • 96. EPA and Not EPA • An EPA is only a FTA it is neither a panacea nor a regional development plan • In the discussions in the early days even the Commission spoke of ‘flanking measures measures’ meaning additional instruments • Widespread acknowledgement of need for supporting measures and a more efficient ti d ffi i t EDF procedures and management • In that sense the Cariforum EPA seeks to CRNM EPA Overview 96 be a ‘FTA plus’ Workshop for Regional Media Barbados * 15th February 2008
  • 97. The Development Issue in ACP-EU Relations Lomé: ‘man at the centre of development’ & was mainly pre occupied with assistance on pre-occupied economic issues in context of ACP states identification of development priorities: • Production • Export earnings problems arising from price fluctuations and • downward secular price trends for their main products – primary commodities CRNM EPA Overview 97 Workshop for Regional Media Barbados * 15th February 2008
  • 98. CRNM EPA Overview Workshop for Regional Media 98 Barbados * 15th February 2008
  • 99. The Development Issue in ACP-EU Relations ( ACP EU R l ti (cont.1) t 1) • Related investment problems encountered • Also reflecting lack of structural diversification and • inadequate command of technological change,low change low involvement in innovation and technological change – ‘white magic’ era • The challenge of industrialisation – Infant industries – LDLIDC P d ti LDLIDCs Production CRNM EPA Overview Workshop for Regional Media 99 Barbados * 15th February 2008
  • 100. The Development Issue (cont 2) ( t Cotonou shared these concerns but reflected EU insistence on adding their development concerns, and re-oriented cooperation towards: • Strengthening the role of the market in ACP states at all levels in enhancing efficiency and providing incentives – entire section devoted to this • Cementing Europe’s role as a global player in international economic arena • Acknowledging dysfunctional role of many ACP Governments and supporting the role of non-state actors • Problem of humanitarian crises with and without war • Putting ‘sustainability’ in development • Enhancing Aid effectiveness CRNM EPA Overview Workshop for Regional Media 100 Barbados * 15th February 2008
  • 101. Caribbean pre-occupations in development i d l t • Small size and international trade – Inhibits economies of scale in production runs inter alia, but its importance depends on the: • characteristics of sector • size of the product market • & can be attenuated by access to int. mkts • large markets improve prody – If the available data is controlled for location, level of development and incidence of petroleum, GDP growth in smaller states is better than that of larger ones – Reality is that smaller states are wealthier within and outside of the Caribbean • Vulnerability – for all the debate and fury over SIDs it is yet to find favour in a meaningful way in WTO CRNM EPA Overview • Diversification and new economic activities Workshop for Regional Media 101 th Barbados * 15 February 2008
  • 102. Caribbean pre-occupations in development ( i d l t (cont.) t) – If the available data is controlled for location, level of development and incidence of petroleum, GDP growth in smaller states is better than that of larger ones g – Reality is that smaller states are wealthier within and outside of the Caribbean • V l Vulnerability bilit – for all the debate and fury over SIDs it is yet to find favour in a meaningful way in WTO g y – Reason? • New economic activities – Si ifi Significance of services i d f i in development process? l t ? CRNM EPA Overview Workshop for Regional Media 102 Barbados * 15th February 2008
  • 103. TRADE INSTRUMENTS IN SUPPORT OF DEVELOPMENT Lomé Cotonou • Non-reciprocal trade • Enhanced competitiveness g agreement thru trade liberalisation • Gradual integration into • Support for Regional international economic system Cooperation/Integration • MDGs and Good Governance • C Compensatory E t Export t • Funds in support of regional Stabilisation Scheme – integration/cooperation Stabex, Sysmin , y • Flex • Project funding • Programme funding • LDLICs funding • LDLICs funding • EIB, CTA, EIB CTA CDE • EIB, CTA, CDE CRNM EPA Overview Workshop for Regional Media 103 Barbados * 15th February 2008
  • 104. The Caribbean Situation, 2008 Background against which policy is to be implemented: • Decline in output and productivity in many states • Regional integration scheme not yet completed • from FTA to partial CU to Common Market with Single FTA, CU, Economic Space • Most rapid growth since 1998 is in inter-regional trade • International trade environment characterized by: • declining preferential margins • low tolerance for preferential access • Effects of CAP review • Significance of services to region • Political sensitivity of employment levels y p y CRNM EPA Overview Workshop for Regional Media 104 Barbados * 15th February 2008
  • 105. What is So Special About EPAs? • Times have changed – cynicism and more critical observers • Replacing a highly prized mechanism and seeking to ensure no state is worse off – EU Council promise • Claims about trade development link questioned ti d • Issues in question: – Supply side constraints and how these are to CRNM EPA Overview 105 be lifted Workshop for Regional Media Barbados * 15th February 2008
  • 106. EPAs and Development The philosophy • Trade long seen as ‘engine of growth’ in context of development of both US and recent East Asian Tigers. Cotonou formalizes it in EPA. • Central to neo-classic model – on which Bretton Woods Consensus is based – is liberalised markets. The latter is the b i f the efficient allocation of resources and as a h basis for h ffi i ll i f d means of delivering competitiveness through increasing p private ownership, expanding exports and p p, p g p promotingg investments. In addition proposes: – Modernisation – Innovation – Increased market access and CRNM EPA Overview Workshop for Regional Media 106 – Enhanced regional integration Barbados * 15th February 2008
  • 107. EPAs and Development (cont.) Main features: – Regional approach to trade cooperation – WTO-compatible and involving • Asymmetrical reciprocity in return for • Limited preferential access – Aid for trade CRNM EPA Overview Workshop for Regional Media 107 Barbados * 15th February 2008
  • 108. EPA a la Cariforum • Favourable scope timing and extent of scope, market liberalisation • Nature of links to funding • Helpful treatment of services of special interest to the region and i t t t th i d • Defensive regulatory framework • Prominence of innovation and S&TD support pp CRNM EPA Overview Workshop for Regional Media 108 Barbados * 15th February 2008
  • 109. The Search for Development in EPAs • Development dictates that RTAs should not: – Limit economic policy space and opportunities available to developing state signatories – Require too liberal investment rules in exchange for inadequate and primarily FDI – Unfavourable balance between developing state obligations and priorities – Fail to include a ‘development chapter’ p p – Omit the inclusion of a monitoring mechanism • Proposed benchmark study to look in addition at: – MDGs – Sustainable development goals CRNM EPA Overview – Economic and social equity, especially poverty reduction Workshop for Regional Media 109 Barbados * 15th February 2008
  • 110. Conclusions • Trade is but one policy instrument p y • Development is multi-dimensional • The context in which the Caribbean’s EPA is to be implemented is one of frequent, and perhaps, rapid change not least of all in international markets. The challenge is therefore for the region to develop the capacity to adjust significantly and with dispatch as circumstances dictate • S h adjustment will i Such dj t t ill involve many areas, such as l h effective social networking, in order to maximise limited skills and quickly share and manage valuable, q y g sometimes specialised information expeditiously. CRNM EPA Overview Workshop for Regional Media 110 Barbados * 15th February 2008
  • 111. Conclusions (cont) • Trade policies alone cannot ensure development p p • Complementary policies will need to be consistently pursued • In absence of perfect foresight this trade framework will also need to be modified and adjusted over time • An ex ante review suggests that these concerns have been largely met • The real test is an empirical one and would require time to determine. The gap between the two exercise will be a test of whether Governments can implement policies when circumstances dictate CRNM EPA Overview Workshop for Regional Media 111 Barbados * 15th February 2008
  • 112. Some Useful References • Alesina, A and Spolare, E (2003) The size of nations. Cantab, MIT Press. pp 81-83. • Byron, J & Lewis, P (2007) Formulating y , , ( ) g sustainable development benchmarks for an EU-Cariforum EPA: Caribbean perspectives. Sept. ICTSD and the APRODEV. www.aprodev.net • E Easterly, W and K l d Kraay, A (2000) S ll states, Small small problems? Income, growth, and volatility in Small States. World Development Vol 28 #3 States Development. Vol. 28, #3. pp2013-2027 CRNM EPA Overview Workshop for Regional Media 112 Barbados * 15th February 2008
  • 113. Useful References (cont.) • IBRD (2005) A time to choose: Caribbean development in the 21st century. Washington, DC. Washington DC April 1212. • Meyn, M Stephens, C (2007) ACP-EU Partnership Agreements Final report ODI Agreements. report. for C.S. Nov. • V R i Van Reisen, M (2005) EU Global Player Gl b l Pl • Van Reisen, M (2001) Reform of EU Development Policy. CRNM EPA Overview Workshop for Regional Media 113 Barbados * 15th February 2008
  • 114. Questions CRNM EPA Overview Workshop for Regional Media 114 Barbados * 15th February 2008
  • 115. Thank You Please visit our Website: http://www.crnm.org Contact: Carl B. Greenidge carl.greenidge@crnm.org carl greenidge@crnm org Tel: +1246 430 1670 Fax: +1246 228 9528 CRNM EPA Overview Workshop for Regional Media 115 Barbados * 15th February 2008
  • 116. Final Discussions CRNM EPA Overview Workshop for Regional Media 116 Barbados * 15th February 2008