VOL. 1 NO. 1 2009




Overview of the CarifOrum-EC
Economic Partnership agreement (EPa)
                                  ...
The EPA contains rules to ensure that trade
and investment between CARIFORUM and the
European Union is conducted on a tran...
for CARIFORUM industries to adjust to
  increased competition. The tariff liberal-
  ization regime is as follows:
   • In...
ChAPtER 3:
NON-tARIFF BARRIERs

This chapter addresses the reduction of the use
of other measures other than tariffs such ...
• After September 2009, when the Sugar                                                                                    ...
Title 2: Investment,
               Services & E-Commerce




               This title contains comprehensive rules and r...
highlights



 Category of Person                                        Main Criteria                                    ...
Title 3: Current Payments &
Capital Movement
CARIFORUM and Europe have agreed not                               for no mor...
ChAPtER 3                                                    • These provisions are subject to dispute
PUBLIC PROCUREMENt ...
Part III – Dispute Avoidance and Settlement




              These provisions are designed to avoid and settle disputes t...
Part V – Institutional Provisions

These provisions facilitate the establishment of institutions                          ...
Part VI – General and Final Provisions


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Tradewins Vol 1 June 2009 Overview Of The Cariforum Ec Epa

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This issue of Tradewins, which is published by the Caribbean Export Development Agency (CaribExpo) looks at the the CARIFORUM-EC Economic Partnership Agreement (EPA), which was concluded on December 16, 2007, and signed in October 15, 2008.

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Tradewins Vol 1 June 2009 Overview Of The Cariforum Ec Epa

  1. 1. VOL. 1 NO. 1 2009 Overview of the CarifOrum-EC Economic Partnership agreement (EPa) Prepared by Caribbean regional Negotiating machinery Background The Economic Partnership Agreement (EPA) WhAt ARE PREFERENCEs? CARIFORUM members of the was signed by the 27 European Union member a preference is a concession offered EPA: antigua and Barbuda, states and 14 CARIFORUM states (all except in a trade agreement by a Party to Bahamas, Barbados, Belize, Haiti) in October 2008 and it came into effect another without offering that same Dominica, Dominican republic, through provisional application in December concession to a third Country. for Grenada, Guyana, Haiti, 2008. It replaces the trade provisions of the instance in the LOmE Convention the Jamaica, St. Kitts and Nevis, Cotonou Agreement, signed in 2000, in which European Community offered duty free St. Lucia, St. Vincent and the European Community unilaterally granted quota free market access for a range the Grenadines, Suriname, African, Caribbean and Pacific (ACP) countries of products that originated from the Trinidad and Tobago non-reciprocal market access to Europe on more africa Caribbean and Pacific regions favourable terms than those enjoyed by goods and exported to the EC market. European Union members from other countries. There was special access for of the EPA: austria, Belgium, some traditional exports like sugar, rum, rice into Bulgaria, Cyprus, Czech the European market which was very important which meets the substantive criteria of Article republic, Denmark, Estonia, to ACP countries. XXIV of the GATT or Article V of the General finland, france, Germany, The Cotonou’s non-reciprocal trade prefer- Agreement on Trade in Services (GATS) respec- Greece, Hungary, ireland, italy, ences required a waiver in the World Trade tively. In exchange for the waiver, the EU and Latvia, Lithuania, Luxembourg, Organization (WTO) because it was contrary to ACP states had agreed to replace the Cotonou malta, Netherlands, Poland, the basic rule enshrined in Article 1 of the GATT, preferential trade arrangement with a reciprocal, Portugal, romania, Slovakia, that all members must be treated no less than WTO-compatible agreement by the end of 2007. Slovenia, Spain, Sweden, any other member (most favoured nation (MFN) The CARIFORUM-EC EPA is the first EPA to be united Kingdom principle) unless they belong to a regional trade completed between Europe and one of the six agreement or economic integration agreement sub-regions of the ACP. Tradewins is a publication of the Caribbean Export Development Agency (Caribbean Export) © 2009 Tradewins is made possible through the kind support of the European Union. 1
  2. 2. The EPA contains rules to ensure that trade and investment between CARIFORUM and the European Union is conducted on a transparent and predictable basis while accommodating the What does the EPA look like? marked differences in size and level of develop- ment between the two regions. The EPa is divided into six parts and Part iV: General Exceptions Objectives contains annexes and protocols. The main sections are as follows: Part V: institutional Provisions The EPA as a trade agreement with development components, is designed to open up and enhance Part i: Trade Partnership for Part Vi: General and final Provisions trade between Europe and CARIFORUM by Sustainable Development removing the barriers to trade between them and Seven annexes {Due to its size, by improving CARIFORUM’s capacity to trade Part ii: Trade and Trade-related matters the CarifOrum Schedule of Tariff competitively. Through enhanced open trade, it is title I. Trade in Goods Liberalization for goods from the EC expected that the EPA will: title II. investment, Trade in (appendix to annex iii) is contained in a • Expand and improve CARIFORUM’s industries Services and E-commerce separate document but all the schedules and economic growth by enabling CARIFORUM title III. Current Payments and for services and investment (annex iV) States to develop exports in services and a wider Capital movements are included in the main EPa document}. range of goods in which they have a compara- tive advantage; title IV. Trade-related issues • Increase employment and business opportunities; Three Protocols • Improve CARIFORUM’s access to European Part iii: Dispute avoidance and technology and technical ‘know how’; Settlement final act • Increase competition within CARIFORUM and thereby improve efficiency in produc- tion processes. Part II: Trade and Trade-related Matters on items subject to phased reduction commitments, until 2011. This is what is referred to as the 3-year moratorium. This group of items includes products which either have a high degree of revenue sensitivity or are produced by domestic industries which require a degree of protection from the competition posed by imports. • Tariffs on very sensitive goods such as Title 1: Trade in Goods food items and processed food imported into CARIFORUM will not be removed. ChAPtER 1 Altogether 13.1 % of products imported CUstOMs DUtIEs highlights from Europe will continue to be subject • Immediate duty-free/quota-free market to tariffs. These products makeup the In keeping with the concept of special and access for all CARIFORUM goods into the Exclusions List. differential treatment, CARIFORUM States EU except rice and sugar. (This was imple- • Tariffs have been a significant source of will reduce tariffs on imported goods, but mented in January 2008). In the case of revenue for some CARIFORUM States not to the same extent, or at the same pace rice and sugar, full liberalization will not so they will reduce tariffs on products as Europe. In addition, less onerous commit- occur until 2010 and 2015 respectively. from the EU gradually in several Phases. ments have been agreed upon for the smaller • On the other hand, CARIFORUM is This will allow CARIFORUM time to CARIFORUM states. not obliged to begin reducing its tariffs find alternative revenue sources and 2 Tradewins is a publication of the Caribbean Export Development Agency (Caribbean Export) © 2009 Tradewins is made possible through the kind support of the European Union.
  3. 3. for CARIFORUM industries to adjust to increased competition. The tariff liberal- ization regime is as follows: • In 2009 CARIFORUM will remove tariffs on 52.8 % of the goods imported from Europe pursuant to the commitment to apply a zero rate of duty on these goods at this time. The revenue impact on the CAREIFORUM States associated with the liberalization of these products will either non-existent or relatively minor, as prior to the conclusion of the EPA, most of these products already faced applied rates of zero percent or close to zero percent; REDUCtION OF tRADE BARRIERs • In five years from the date of applica- tion of the EPA (2013), CARIFORUM will remove tariffs on 56% of the goods In 10 years or by 2018, tariffs will be removed from 61.1 % of the goods imported from Europe; imported from Europe... • In 10 years or by 2018, tariffs will be removed from 61.1 % of the goods imported from Europe; are biscuits and other bakery products, WTO Safeguard Clause subject to the • In 15 years or by 2023, 82.7% will be jams and jellies, fruit juices and other terms and conditions of Article XIX of liberalized; beverages, garments, and air condi- the General Agreement on Tariffs and • In 20 years or by 2028, 84.6% will be tioning units. As was the case under the Trade (GATT); liberalized; Cotonou Agreement, inputs obtained • The CARIFORUM States and Europe • In 25 years or by 2033, tariffs on the from any CARIFORUM country, the EC, can resort to the use of a bilateral remaining CARIFORUM products will other ACP countries (with some excep- safeguard mechanism created by the be eliminated, and this will take the tions) and, under certain conditions, Agreement for a limited period of total level of liberalization to 86.9%. neighbouring developing countries, time in the event that the importa- • Most Favoured Nation (MFN) principle– will qualify as “originating goods” and tion of goods from the other side The CARIFORUM States or the EU so can be used in the production of only, causes or threatens to cause: (a) must give the same terms to the other final goods that will qualify for prefer- serious injury to domestic industries; side if under another trade agreement ential treatment. or (b) sectoral disturbances that concluded after the EPA: cause major social problems; or (c) • The EU gives to a non-CARIFORUM ChAPtER 2 disturbances to agricultural markets country or group more advantageous tRADE DEFENCE MEAsUREs or mechanisms that regulate those treatment than those in the EPA. markets. These safeguards are not • CARIFORUM States extend to a “major This chapter outlines the circumstances subject to the WTO dispute settle- trading economy” treatment which is appropriate for either CARIFORUM or ment provisions. more advantageous than that offered Europe to impose temporary barriers to • Permitted use of Anti-Dumping Duties to Europe under the EPA. trade, including tariffs. in accordance with corresponding WTO • Rules of Origin (RoO) govern the iden- provisions to prevent the unfair and tification of goods that will qualify for highlights predatory trade practice of selling goods preferential treatment under the EPA. • Permitted use of Safeguards, which are in overseas markets at less than their cost The EPA RoO are based on the struc- barriers to trade imposed temporarily of production. ture and principles of those contained to prevent injury to domestic industries • In accordance with the WTO Agreement on in the Cotonou Agreement. There has, caused by imports:- Subsidies and Countervailing Measures, however, been some relaxation of the • In cases where increased imports Countervailing Measures such as duties qualifying conditions for a number of from the other side as well as third can be employed to prevent unfair compe- products, thereby making it easier for state sources are causing injury to a tition between subsidized imports and CARIFORUM producers to export to domestic industry, the CARIFORUM competing domestic products. the EC. Examples of these products States and Europe can invoke the Tradewins is a publication of the Caribbean Export Development Agency (Caribbean Export) © 2009 Tradewins is made possible through the kind support of the European Union. 3
  4. 4. ChAPtER 3: NON-tARIFF BARRIERs This chapter addresses the reduction of the use of other measures other than tariffs such as quotas and import or export licenses which, by way of their application impede trade. Both sides agreed not to apply quantitative restric- tions, including import licenses. The rules also seek to ensure there is no unfair competition between imports and like domestic products within the domestic market. highlights • The EPA reaffirms the provision of the GATT to the extent that discrimination against imports is prevented through the application of the National Treatment (NT) principle:- • No charges and internal taxes may be applied to imports if they are not similarly applied to like domestic From January 2008 until September 2009, CARIFORUM will be products; eligible to export an additional 60,000 tonnes of sugar into Europe. • Regulations and laws affecting internal sale, offers for sale, purchase, transpor- tation, distribution or use of a product, Europe’s respective customs operations providing support in a range of areas, e.g. must be applied to both the imports are required through commitments to: research, downstream processing, improving and similar domestic products; • reduce, simplify and standardize production and quality standards, and • The application of the NT principle in customs data and documentation; promoting investment. A special process of the EPA does not prevent a govern- • simplify procedures for goods clearance; dialogue between the two sides will be set up ment from offering domestic support • publicly disclose customs laws, proce- to address agricultural and fisheries issues. to national producers. dures and explanations of such laws Although Europe is obliged to eliminate and procedures; highlights export subsidies on products which the • cooperate and dialogue between • Seventy five percent of all CARIFORUM’s CARIFORUM countries have agreed to liber- CARIFORUM and Europe. imports of agricultural and fisheries alize, the CARIFORUM countries are able to • The provision of financial and non-finan- products have been excluded from liber- maintain this type of subsidy on their prod- cial support to CARIFORUM to assist in: alization under the EPA. These sensitive ucts for the duration of the transition periods • Development of modern customs products will continue to be protected by afforded to developing countries by both the techniques; tariffs applied by CARIFORUM states. Agreement on Agriculture and the SCM. • Automation of customs and other • Liberalization commitments have also trade procedures; been back-loaded with only 29% of tariff ChAPtER 4 • Compliance with relevant interna- lines being subject to tariff elimination by CUstOMs AND tRADE tional standards and regulations the end of year 10. FACILItAtION including WTO rules, the Kyoto • There are also special provisions on tradi- Convention and the World Customs tional agricultural exports. The Chapter sets out to improve customs and Organization (WCO). Sugar trade administrative procedures to ensure • From January 2008 until September that trade between CARIFORUM and Europe ChAPtER 5 2009, CARIFORUM will be eligible to is made easier and that trading procedures AgRICULtURE AND FIshERIEs export an additional 60,000 tonnes are more predictable. of sugar into Europe. This quantity, Agriculture and fisheries are an important which is above the Sugar Protocol highlights part of the EPA. There is a chapter dedicated quota, is to be shared between • Transparency, efficiency, accountability to the issues, which addresses the development CARICOM signatories to the Protocol and integrity of CARIFORUM’s and needs of these sectors and commits the EU to and with the Dominican Republic. 4 Tradewins is a publication of the Caribbean Export Development Agency (Caribbean Export) © 2009 Tradewins is made possible through the kind support of the European Union.
  5. 5. • After September 2009, when the Sugar purpose of such goods access into the Protocol expires, CARIFORUM sugar Commitment to designate contact EC market. imported into Europe will be free of points to facilitate the channelling • Firms’ capacity to comply with inter- duty. However, between October 1, national regulatory requirements. and exchange of information 2009 and September 2015 Europe can still impose tariffs on CARIFORUM regarding technical regulations, ChAPtER 7 sugar exports under very special standards and conformity assess- sANItARy AND PhytOsANItARy circumstances. (sPs) MEAsUREs Rice ment procedures as defined in the • CARIFORUM rice exporters will WTO Technical Barriers to Trade Provisions under this Chapter outline how receive increased quotas of 187,000 either CARIFORUM or Europe may use Agreement. tonnes for 2008 and 250,000 tonnes trade restrictions designed to protect risks to for 2009. These quotas will be duty humans, animals or plants associated with free in contrast to the €65 per tonne disease, pests and contaminants. At the same duty that would have applied. ChAPtER 6 time, these provisions aim to prevent unin- • Licensing and other arrangements tEChNICAL BARRIERs tO tRADE tended impediments to trade which may come related to the rice quota will be about because of these trade measures. There kept under review to ensure that This aspect of the EPA is aimed at helping both are also inclusions in this chapter aimed to CARIFORUM rice producers get the CARIFORUM and European states to comply assist CARIFORUM to comply with European maximum benefits from the trading with each other’s mandatory standards. At sanitary and phytosanitary (SPS) measures arrangement. the same time, these provisions help ensure and to better develop their own regionally • Duty-free/quota free access for rice that lack of information about such standards harmonized SPS measures. from 2010. Under the new arrange- does not unnecessarily impede trade between ment there is no distinction between CARIFORUM and Europe. highlights whole grain and broken rice. This • Commitment to cooperate in establishing makes it easier for CARIFORUM rice highlights harmonized SPS measures both in the EU producers to benefit from the higher • Commitment to designate contact points and between CARIFORUM States; priced market for whole grain rice. to facilitate the channelling and exchange • Commitment to establish arrangements Bananas of information regarding technical regu- to facilitate the recognition of equivalence • Duty-free/quota free access from lations, standards and conformity assess- of specified SPS measures; inception of the EPA. ment procedures as defined in the WTO • Agreement that in the event that no • Joint Declaration on Bananas which Technical Barriers to Trade Agreement. harmonized SPS measures exist or commits the EU to assist in funding • Financial and non-financial development there is no recognition of equivalence, the CARIFORUM banana industry’s support to assist with the development of: CARIFORUM and Europe will consult on socio-economic adjustments to the • CARIFORUM centres of expertise ways to facilitate trade and reduce unnec- changing trading environment. for the assessment of goods for the essary administrative requirements. Tradewins is a publication of the Caribbean Export Development Agency (Caribbean Export) © 2009 Tradewins is made possible through the kind support of the European Union. 5
  6. 6. Title 2: Investment, Services & E-Commerce This title contains comprehensive rules and regulatory principles • The EU liberalized more than 90% of its services sectors and for services and investment including national treatment and all modes of supply. most favoured nation treatment. Both sides agreed to cooperate CARIFORUM states scheduled 50-75% of service sectors in on e-commerce and not to charge customs duties on electroni- order to facilitate investment and the transfer of technology. cally delivered products. It also contains cooperation provisions The main new areas of market opening by CF include: to develop and improve the CARIFORUM services sector. Exclu- • Business services sions from coverage are: audio-visual services; maritime cabo- • Computer and computer related services tage; arms and munitions; some air services, nuclear materials. • Research and Development • Environmental services ChAPtER 2 • Management consultancy COMMERCIAL PREsENCE • Maritime Transport • Entertainment The EPA contains the standard rules on investment such as • Tourism national treatment and MFN but it also includes provisions to safeguard the public interest. It requires that governments take ChAPtER 4 measures to ensure that investors safeguard the environment tEMPORARy PREsENCE OF NAtURAL and maintain high labour and occupational health and safety PERsONs FOR BUsINEss PURPOsE standards. And governments are bound not to lower standards to attract investment. Furthermore, they are required to take The EPA has clearer rules for the temporary movement of measures that forbid investors from engaging in corruption of natural persons (mode 4 in GATS jargon) than the WTO public officials to obtain concessions or favours. because it introduces specific categories of service suppliers that can gain entry into the markets of either Party. (See ChAPtER 3 Table). The EU’s commitments on the Movement of Natural CROss BORDER sUPPLy OF sERVICEs Persons in the EPA are significantly greater than their GATS commitments and conditional services offer in the Doha This chapter contains similar rules on national treatment and Round thereby granting better treatment to Caribbean most favoured nation treatment and addresses the access which suppliers. As expected, CARIFORUM made significantly CARIFORUM and Europe will provide to each other in services less commitments in mode 4 and mainly for intra-corpo- which are traded across their borders. rate transfers. 6 Tradewins is a publication of the Caribbean Export Development Agency (Caribbean Export) © 2009 Tradewins is made possible through the kind support of the European Union.
  7. 7. highlights Category of Person Main Criteria Length of stay Allowed (i) Key personnel, which includes: Business visitors Persons responsible for setting up a 90 days per calendar year commercial presence and paid by a source outside of the host territory. intra-corporate transfers Persons employed by a company in the up to 3 years - managers sending country at least a year before entry - Specialists to the host country to work within a partner company there. (ii) Graduate trainees university graduates, employed by a up to 1 year company for at least a year and entering either Party for career development or training in a branch or parent company. (iii) Business services sellers Persons entering to negotiate a sale or an 90 days per year agreement but who receive remuneration from a source outside of a Party and do not make direct sales. (iv) Contractual Service Suppliers (CSS). Professionals with 3 years experience up to 6 months per year employed by a company in the sending country, which does not have a presence in the other party but has a service contract with a client in the other party. (v) independent Professionals (iP) Self-employed professionals with 6 years up to 6 months per year experience and service contract. (vi) Short Term Visitors for Business Persons that are not selling services can up to 90 days per year Purpose enter either Party to perform a range of activities such as: research and design, marketing research, training, trade fairs and exhibitions, sales, purchasing and tourism The EU opened 29 sectors to allow that may enter the EU. There is also an to CARIFORUM and Europe in: Computing professional employees of CARIFORUM innovative Protocol on Cultural Coopera- services; Courier services; Telecommuni- firms referred to as “contractual service tion to complement CARIFORUM market cations; Financial services and Tourism. suppliers” (CSS) to enter the EU to supply access in EU Recreational services markets The chapter also provides for development services for up to 6 months in a year. This and to facilitate greater cooperation in support to: includes new areas such as entertainment, the development of cultural industries. It • Develop the capacity of CARIFORUM fashion model, chef de cuisine services, also provides for co-produced audiovisual firms which do not need university degrees. works to be treated as domestic content in • Develop sectoral standards and regu- Eleven (11) sectors have been opened the EU and CARIFORUM. latory regimes up to allow self-employed CARIFORUM • Build human resources within professionals to enter the EU to supply ChAPtER 5 CARIFORUM through training services for up to 6 months. There are sECtORAL RULEs • Develop equivalence of CARIFORUM some restrictions in the newer EU member A regulatory framework is outlined for key skills and Mutual Recognition of states but no limits on the number of CSS sectors of particular development interest qualifications Tradewins is a publication of the Caribbean Export Development Agency (Caribbean Export) © 2009 Tradewins is made possible through the kind support of the European Union. 7
  8. 8. Title 3: Current Payments & Capital Movement CARIFORUM and Europe have agreed not for no more than six months in the event to impose restrictions on the free move- that current payments and capital move- ment of capital related to direct invest- ment cause or threaten to cause difficulties ments. They have the right to implement with the operation of monetary policy or preventative or precautionary measures exchange rate policy. Title 4: Trade-Related Issues These provisions are intended to complement sharing information etc) in the investigation research and development, and participation and support the EPA’s economic and sustainable of alleged anti-competitive practices. in joint ventures. The intellectual property development focus by improvements in areas provisions aim to help create a suitable that affect quality of life and competitiveness. ChAPtER 2 legislative and administrative environment INNOVAtION AND INtELLECtUAL which will provide protection of intellectual ChAPtER 1 PROPERty property. CARIFORUM and Europe agreed COMPEtItION to adequately implement their obligations These provisions ensure that competition is The aim is to help create an environment that under agreements which address intellectual free from distortion and is fair. By so doing the fosters creativity and innovation within the CARI- property to which they may be signatory, interest of both consumers and businesses FORUM States. The creation of new products, such as the WTO TRIPS Agreement. especially small business will be protected. marketing techniques and business practices can • CARIFORUM LDCs are not obligated to There are rules against anti-competitive busi- improve economic growth and development. apply the provisions under the Intellectual ness practices such as the abuse of market Property section until 2014; power and dominance, and a commitment to The EPA seeks to facilitate the develop- • There will be support to develop and establish legislation to prevent such practices ment of CARIFORUM innovation systems enforce the protection of intellectual by firms. There are also provisions allowing to enhance the competitiveness of CARI- property, including geographical indica- the Parties, if they so desire, to cooperate (by FORUM firms through technology transfer, tions and traditional knowledge. 8 Tradewins is a publication of the Caribbean Export Development Agency (Caribbean Export) © 2009 Tradewins is made possible through the kind support of the European Union.
  9. 9. ChAPtER 3 • These provisions are subject to dispute PUBLIC PROCUREMENt settlement procedures only after all stages of a three stage dispute avoidance The Public Procurement chapter sets out process have been completed. Development Funding comprehensive rules governing the transpar- ency of procurement activities of the Parties. ChAPtER 6 funding for the implementation of the Obligations address all aspects of the procure- PERsONAL DAtA PROtECtION EPa will emanate from a variety of ment process including the publication of sources. Principal among these are relevant national laws and regulations, The principles and general rules established the CarifOrum regional indicative publication of procurement notices, as well under these provisions are intended to Programme (CriP), National indicative as equal and timely access by suppliers to establish a legal regime which allows for the Programmes (NiPs), the Eu member relevant documentation and other pertinent personal data of CARIFORUM and EC citi- States’ aid for Trade (afT) contributions information. However, the provisions do not zens and residents to be protected during data and the Seventh framework Programme confer rights of access to the procurement processing operations. (fP7). Both the CriP and NiPs are markets of the Parties. Governments are there- funded from the EC through the fore free to open or restrict, as the case may • Commitment to establish regulatory European Development fund. The 10th be, their public procurement opportunities, in and legal regimes which are designed to CriP has an allocation of €165 million accordance with their own national laws. facilitate the collection and processing of which €70 million is reserved for of personal data especially with regard direct EPa implementation. The CriP is ChAPtER 4 to services based on data transfer whist complemented by NiPs – a number of ENVIRONMENt ensuring the protection of privacy of which entail funding supportive of EPa customers and transparency. implementation. for example, the €289 These provisions are designed to assist the • Financial and non-financial support to million NiP for the Dominican republic prevention of environmental degradation as a develop legal and regulatory regimes in focuses on enhancing competitiveness result of trade. CARIFORUM. while that for a major share of the €80 million Jamaican NiP targets trade highlights development. These envelopes of • Provisions to prevent the degradation of financial assistance to CarifOrum are the environment and to foster sustainable additional to current EC funding of the development; adjustment in major Caribbean industries • Right of CARIFORUM and Europe to such as sugar, banana, rum and rice. regulate environmental protection in accordance with their own sustainable development priorities but in a manner that does not cause arbitrary or unjustifi- able discrimination against each other; • These obligations are subject to dispute settlement procedures only after all stages of a three stage dispute avoidance process have been completed. ChAPtER 5 sOCIAL AsPECts These provisions are indicative of the Parties acknowledgment of the need to pursue trade and the benefits of trade while upholding international labour standards. • Reaffirmed commitment to ILO labour rights and standards; • Prevention of the use of labour standards for protectionist trade purposes; Tradewins is a publication of the Caribbean Export Development Agency (Caribbean Export) © 2009 Tradewins is made possible through the kind support of the European Union. 9
  10. 10. Part III – Dispute Avoidance and Settlement These provisions are designed to avoid and settle disputes that breach of the EPA. may arise between the EC and its member states and the CARI- • Europe must exercise restraint in imposing such sanctions FORUM states and in seeking trade compensation from the CARIFORUM States. There is no corresponding CARIFORUM obligation. ChAPtER 1 ARBItRAtION PROCEDURE ChAPtER 3 COMMON PROVIsIONs • Dispute resolution is facilitated within three tiers • Consultation • Dispute settlement provisions of the EPA are without • Mediation prejudice to any action in the WTO framework, including • Arbitration dispute settlement action; ChAPtER 2 • Where the EC Party or a CARIFORUM State has started the COMPLIANCE dispute settlement process with regard to a particular issue under the Dispute settlement proceedings of either the EPA • In the event that the EC Party is successful in a dispute, or the WTO, that Party may not start new dispute settlement sanctions can only be imposed on the individual proceedings in another forum until the first proceeding has CARIFORUM State or States which have been found to be in been determined. Part IV – General Exceptions These provisions stipulate the circumstances in which CARI- mentation of national (or as the may be, regional) measures to FORUM or Europe may derogate from the rules under the EPA. protect: public morals; public security, human, plant or animal Such derogations would only be permitted if they are grounded health and life. The EPA does not prevent the implementation of factually on one or more of several specified matters and do measures by CARIFORUM or Europe to prevent tax evasion or not constitute disguised restrictions on trade or are applied in tax avoidance. a discriminatory matter. The EPA does not prevent the imple- 10 Tradewins is a publication of the Caribbean Export Development Agency (Caribbean Export) © 2009 Tradewins is made possible through the kind support of the European Union.
  11. 11. Part V – Institutional Provisions These provisions facilitate the establishment of institutions in an expeditious manner and that the development vested with specific responsibilities essential to ensuring that the dimension of the EPA is fulfilled. objectives of the EPA are met. They are modelled on the structure of Cotonou Institutional Provisions and present a structure of The CARIFORUM-EC Parliamentary Committee governance with which the CARIFORUM States are familiar. • Comprised of representatives from the European They are as follows: Parliament and the legislatures of the CARIFORUM States The Joint CARIFORUM-EC Council: • Facilitates meeting and exchange of views of these • Highest institution representatives on the implementation of the EPA • Will meet at Ministerial level at regular intervals not exceeding two years The CARIFORUM-EC Consultative Committee • Is vested with responsibility to supervise the imple- • Designed for the engagement of civil society in the mentation of the EPA EPA implementation process. • May take decisions concerning any aspect of the agree- • Composition to be determined by the Joint ment as jointly agreed by CARIFORUM and the EC. CARIFORUM-EC Council The CARIFORUM-EC Trade and Development Committee None of these Institutions involve supra-nationality or the • Second highest institution ceding of sovereignty of the CARIFORUM States or the EU. • Assists the Joint CARIFORUM-EC Council Governments on both sides have only jointly agreed to delegate • Vested with specific responsibilities vital to ensuring authority on issues relating specifically to the implementation that all matters affecting the partnership are resolved of the EPA to these institutions. Tradewins is a publication of the Caribbean Export Development Agency (Caribbean Export) © 2009 Tradewins is made possible through the kind support of the European Union. 11
  12. 12. Part VI – General and Final Provisions ABOUt Us Our Vision Caribbean Export is a catalyst for regional economic prosperity through strategic interventions on trade development and investment promotion Our Mission To increase the competitiveness of Caribbean countries by providing quality trade development and investment promotion services through effective programme execution These provisions express final arrangements to Countries (LDCs) of CARICOM and the and strategic alliances. be facilitated. Dominican Republic on all other goods; Key Result Areas and goals • Market access and trade as covered in all areas Fostering an enabling • From the signature of the EPA CARIFORUM under the Agreement are facilitated between environment – for trade and states are obliged to extend to each other any the Outermost Regions of Europe. investment within the region advantage that is extended to Europe: • Provides for the possibility of revising the EPA in through regional integration, cooperation and advocacy • With immediate effect between CARICOM order to: initiatives designed to position and the Dominican Republic on all duties • include the Overseas Countries and the region more effectively in the attracting zero rated duty; Territories (OCTs) associated with the world economy. • Within 1 year between More Developed European Community; Enhancing Competitiveness – Countries (MDCs) of CARICOM and the • adjust to the pending expiration of the increase the competitiveness of Dominican Republic on all other goods; Cotonou Agreement in 2020; firms in CarifOrum countries in selected sectors through • Within 2 years between Less Developed • broaden and supplement the scope of the EPA. investment, management and product development, market expansion and export diversification. Promoting Investment – Promote this tradewins is a joint publication of the Caribbean Export Development Agency the Caribbean region as a prime destination for intra and extra- (Caribbean Export) and the Caribbean Regional Negotiating Machinery (CRNM). regional investment. Caribbean Export Development Agency Caribbean Regional Negotiating Strengthening Institutional head Office sub Regional Office Machinery (CRNM) Capacity and Networking – mutual Building, Hastings main road, Calle Carlos Lora No. 9 3rd floor, the mutual Building Enhance the capacity of public Christ Church, BB15154 Ensanche Los restauradores Hastings main road, Hastings, and private sector BSOs, Mailing Address Christ Church Santo Domingo particularly sector associations, Barbados P.O. Box 34B, Brittons Hill Post Office, DOmiNiCaN rEPuBLiC trade promotion organisations Tel: (246) 430-1670 St. michael, BB14000, BarBaDOS Tel: +1 (809) 531-2411 and investment promotion Tel: +1(246) 436-0578 fax: +1 (809) 473-7532 fax: (246) 228-9528 agencies, and support the development of vibrant fax: +1(246) 436-9999 E-mail: c.export@codetel.net.do Caribbean business networks to E-mail: info@carib-export.com improve services to clients. Website: www.carib-export.com We are very interested in your feedback. Please email your comments to tradewins@carib-export.com. all material copyright © 2009 Caribbean Export. 12 Tradewins is a publication of the Caribbean Export Development Agency (Caribbean Export) © 2009 Tradewins is made possible through the kind support of the European Union.

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