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Overview & local businesses can access the EU market - Mr. Lincoln Price - Private Sector Liaision - Office of Trade Negotiations (CARICOM)
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Overview & local businesses can access the EU market - Mr. Lincoln Price - Private Sector Liaision - Office of Trade Negotiations (CARICOM)

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This session will contextualize focus on the shift in the nature of trade relationship between CARIFORUM and the European Union with the signature of the EPA. In particular, it will address issues …

This session will contextualize focus on the shift in the nature of trade relationship between CARIFORUM and the European Union with the signature of the EPA. In particular, it will address issues related to WTO compatibility, Reciprocity, Regional Integration, Most Favoured Nation Treatment, National Treatment, The New Emphasis on Services and Investment, Development Cooperation, and Trade Related Issues particularly Intellectual Property.

This session also seeks to discuss market access opportunities in services within the EU Market available to local businesses, paying particular attention to the services sector committed by Antigua and Barbuda, including but not limited to financial services, tourism, telecommunication services, marine services and transport, professional services, cultural services, health and wellness and construction services. This discussion should also include the required preparatory steps to be taken by local businesses to access markets under Mode 1 – Cross Border Supply and Mode 4 – Temporary Movement of Persons, as well as identify common non-tariff barriers that exist within the EU market.

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  • 1. EPA Technical Workshop Date: 10th – 11th March, 2011 Antigua & Barbuda Hospitality Training Institute Lincoln Price Private Sector Liaison, OTN (CARICOM)1
  • 2. Section 1  OVERVIEW OF THE CARIFORUM-EU ECONOMIC PARTNERSHIP AGREEMENT – CONTEXT AND PRINCIPLES  This session will contextualize focus on the shift in the nature of trade relationship between CF and the EU with the signature of the EPA. In particular, it will address issues related to WTO compatibility, Reciprocity, Regional Integration, Most Favoured Nation Treatment, National Treatment, The New Emphasis on Services and Investment, Development Cooperation, and Trade Related Issues particularly Intellectual Property.  EPA turning Point video (clip1)2
  • 3. What is the EPA? A reciprocal trade agreement between the Caribbean Group of States of theACP and the European Community (EC) designed to replace the tradecomponent of the Cotonou Agreement, which was based on non-reciprocity. A trade instrument with development components to help CARIFORUM tobenefit from more predictable market access to the EU and reduce the cost oftrading by modernizing and improving the region‟s business environment. The negotiation of the Agreement was concluded on December 16, 2007.The EPA was signed on October 15 2008 by most parties (inc Antigua &Barbuda). Guyana signed October 20, 2008. Haiti signed the Agreementon December 11 2009. Consequently the Agreement appliesprovisionally from 29 December 2008.3
  • 4. The EPA & the WTO Non-discrimination is a pillar of WTO However discrimination is allowed under a FTA where there is reciprocity (i.e. exchange of market access liberalization) It is not necessary that the offers share the same degree of liberalization commitment. GATT article 24 tests:  (i) to keep the level of discrimination at a minimum so that global trade is not excessively distorted.  (ii) to liberalise “substantially all trade” (However SAT is not defined by the WTO rules but practice suggests 80-90% of trade volume for goods usually in 10 yrs)  In 25 yrs, CF is expected to liberalise 86.9% of trade with the EU with the 4 larger countries making deeper cuts than the LDCs.
  • 5. Some features of the EPA  Development Cooperation (Art 1-8)  Reciprocity  Regional Integration  Most Favoured Nation Treatment,  National Treatment  Trade Related Issues (TRIs):  Competition Policy; Innovation and IPR; public Procurement; environment; social aspects (inc labour); protection of personal data  See21 Guide to EPA page 15  See turning point video (clip 2)5
  • 6. Services and Investment Title 2: Investment, Services & E-Commerce  The chapters under this section of the EPA contain comprehensive provisions to facilitate and attract investment within CARIFORUM, to develop and improve the CARIFORUM services sector, and to provide common rules on e-commerce. These chapters are significant in that CARIFORUM and Europe have agreed for the first time to „open up‟ their services sectors and deal with investment policy under a bilateral framework.6
  • 7. Services and Investment  Chapter 2: Commercial Presence  Chapter 3: Cross Border supply of Services  Chapter 4: temporary presence of natural persons  Chapter 5: regulatory framework  Chapter 6: e-Commerce  See Guide to EPA page 297
  • 8. Section 2  HOW CAN LOCAL BUSINESSES PREPARE TO ACCESS THE EU MARKET?  This session seeks to discuss market access opportunities in services within the EU Market available to local businesses, paying particular attention to the services sector committed by Antigua and Barbuda, including but not limited to financial services, tourism, telecommunication services, marine services and transport, professional services, cultural services, health and wellness and construction services. This discussion should also include the required preparatory steps to be taken by local businesses to access markets under Mode 1 – Cross Border Supply and Mode 4 – Temporary Movement of Persons, as well as identify common non-tariff barriers that exist within the EU market.8
  • 9. Antigua & Barbuda Goods trade with EU 900 800 700 600 500 400 300 200 100 0 2002 2003 2004 2005 2006 2007 2008 2009 exports (euro mn) 790 486 139 215 250 190 120 61 imports (euro mn) 375 97 131 239 308 500 272 266 Source: EU export Helpdesk http://exporthelp.europa.eu/index_en.html . Ret Feb 21,9 2011
  • 10. Understanding the goods schedule  See  explanatory guide to interpreting goods schedule.10
  • 11. Antigua & Barbuda Services trade surplus 600 500 400 300 200 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 imports (US$mn) 154 153 171 182 190 227 256 283 296 248 exports (US$mn) 416 403 394 418 477 463 477 517 542 523 Source: UN Comtrade Database. www.trademap.org Ret Feb 21, 201111
  • 12. Understanding the services schedule  See  explanatory guide to services schedule  Exploring services schedule  here we will examine aspects of the schedule relevant to ATG12
  • 13. OTN services studies on market opportunities  Audiovisual Sector study  MRA studies for engineers and architects (being completed)  Temporary entry regimes in CARICOM  Agri-food distribution services  Cultural Industries report  Telecoms Study  Entertainment services report  CHTA: Tourism Guide to the EPA13
  • 14. Thoughts on a Way forward: “taking ownership”  Services Firms and organizations should be formal (inc funding Coalitions of services Providers;  Understanding provisions of the EPA (inc Rules of Origin)  Understand EU market for services (attend tradeshows etc)  Establishing Observatories in the Services Coalitions  Document the export experience in a number of services areas;  Report these experiences to the National EPA Implementation Unit;  Understand how to tap into available resources;  Formulate general stakeholder mechanism for other Sectors beyond the pilot phase.14
  • 15. Extract benefits from the EPA? 1. Export contracts 2. Import contracts 3. JV partnerships 4. Acquisitions (for some SMEs) 5. Offshore expansions proinvest CDE/GIZ etc Your firm PSO/EPA IU EU PSO EU firm EU-CF BF CRIP/NIP15 IPA/TPO
  • 16. Promote your products via European Tradeshows Country Events (May-Dec 08) Belgium 49 Czech republic 75 Ireland 40 Italy 151 Latvia 29 France 231 Germany 407 Poland 72 UK 976 Sweden 56 2086 (this is not all EU) 16
  • 17. EPA and red tape: Understand the Documentary requirements Movement Certificate EUR.1 Only Invoice Declaration by the Exporter (shipments under €6000 or if an approved exporter) Commercial Invoice/Pro-forma Invoice Bill of Lading/Airway Bill Relevant Import permits/health permits/Labeling requirements Services exporters:  professional accreditation certificate, Schengen visa, business contract, work permit.  Schengen and work permit requirements have additional conditions  Other conditions of access are described in detail in EPA text schedules 17
  • 18. Understand EU Directives, Standards,Management Systems SAFETY At the FOOD border On the shelf PUBLIC PRIVATE •EU/National General Food Law HACCP HACCP Organic Products EureGap GMO‟s ISO 9000 Marketing standards for quality & labelling BRC Minimum Residue Levels Inter. Food Stand Phytosanitary issues Q&S18
  • 19. Activating EPA benefits  Goods  become a registered exporter  Understand ROOs (qualifying criteria for duty preference) /participate in the review process  Get a consignee/distributor who knows EPA/market access regulations  CESEFOR/IDIMA(Spain) willing to help certify CF furniture providers.  Services  Become a member of a professional association (coalition)  Negotiate Mutual recognition agreements  Creative industries professionals: consider registering as companies eg Roland Prince Co ltd. (EPA only covers legal entities, not informal ones)  Participate in the EPA consultative committee  Participate in Business Forums etc  Seek to utilize all existing and future TA programmes. See turning point video (clip 6)19
  • 20. Thank you  Lincoln Price  Private Sector Liaison  876-9060021  lprice@crnm.org  mdrakes@crnm.org  privatesector@crnm.org  www.crnm.org20