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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Overview & local businesses can access the EU market - Mr. Lincoln Price - Private Sector Liaision - Office of Trade Negotiations (CARICOM)
1. EPA Technical Workshop
Date: 10th – 11th March, 2011
Antigua & Barbuda Hospitality Training Institute
Lincoln Price
Private Sector Liaison, OTN (CARICOM)
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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)
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3. What is the EPA?
A reciprocal trade agreement between the Caribbean Group of States of the
ACP and the European Community (EC) designed to replace the trade
component of the Cotonou Agreement, which was based on non-reciprocity.
A trade instrument with development components to help CARIFORUM to
benefit from more predictable market access to the EU and reduce the cost of
trading 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 Agreement
on December 11 2009. Consequently the Agreement applies
provisionally from 29 December 2008.
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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)
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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.
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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 29
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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.
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12. Understanding the services schedule
See
explanatory guide to services schedule
Exploring services schedule
here we will examine aspects of the schedule relevant to
ATG
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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 EPA
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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.
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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/NIP
15
IPA/TPO
16. Promote your products via European Trade
shows
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
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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&S
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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)
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