EPA Presentation for Legislative Drafters - Ms. Allyson Francis


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CARIFORUM-EU Economic Partnership Agreement - Trade in Services
Ms. S. H. Allyson FRANCIS, Trade in Services and Investment Specialist, EPA Implementation Unit, CARICOM Secretariat

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EPA Presentation for Legislative Drafters - Ms. Allyson Francis

  1. 1. <ul><li>SEMINAR ON THE CARIFORUM-EU ECONOMIC PARTNERSHIP AGREEMENT (EPA) FOR LEGISLATIVE DRAFTERS </li></ul><ul><li>TRADE IN SERVICES </li></ul><ul><li>S. H. Allyson Francis </li></ul><ul><li>Trade in Services & Investment Specialist </li></ul><ul><li>CARICOM Secretariat EPA Implementation Unit </li></ul><ul><li>[email_address] </li></ul><ul><li>[email_address] </li></ul>
  2. 2. The EPA <ul><li>Objectives </li></ul><ul><ul><li>Reduction & eventual eradication of poverty through trade partnership; </li></ul></ul><ul><ul><li>Promoting regional integration, economic cooperation and good governance; </li></ul></ul><ul><ul><li>Promoting the integration of CARIFORUM (CF) States into the world economy; </li></ul></ul><ul><ul><li>Support for increasing investment & private sector initiative; and </li></ul></ul><ul><ul><li>Strengthening relations taking into consideration levels of development and int’l obligations </li></ul></ul>
  3. 3. Services trade <ul><li>Services are traded by four modes </li></ul><ul><li>Mode 1 - Cross-border trade (the supplier or the consumer do not move e.g. advisory services via the internet, providing drafts); </li></ul><ul><li>Mode 2 - Consumption abroad (the consumer moves to obtain the service e.g. tourism, non-national purchasing Architectural services paid from their home country); </li></ul><ul><li>Mode 3 - Commercial presence (the supplier establishes in the territory to supply a service e.g. branches); and </li></ul><ul><li>Mode 4 - Movement of natural persons (temporary movement of the supplier to provide a service e.g. consultancy services) </li></ul>
  4. 4. Scheduling <ul><li>Positive listing of restrictions in services sectors – what is listed is liberalised (may contain restrictions) </li></ul><ul><li>None – No discriminatory legislation/regulations </li></ul><ul><li>Unbound - States have the ability to regulate/change the trade regime in the sector </li></ul><ul><li>Unbound * - Not feasible </li></ul><ul><li>NB: Only discriminatory requirements are scheduled therefore there may be other regulatory requirements to be met. </li></ul><ul><li>NB: the schedule sets the upper limits of restrictions a State may allow activities to be undertaken that is more liberal that what is schedule </li></ul>
  5. 5. Services Title <ul><li>Chapter 1 – General Provisions </li></ul><ul><li>Chapter 2 – Commercial Presence </li></ul><ul><li>Chapter 3 – Cross Border Supply of Services </li></ul><ul><li>Chapter 4 - Temporary Presence of Natural Persons for Business Purpose </li></ul><ul><li>Chapter 5 – Regulatory Framework (MR, Computer, Courier, Telecom, Financial, Int’l Maritime & Tourism) </li></ul><ul><li>Chapter 6 – Electronic Commerce </li></ul><ul><li>Chapter 7 - Cooperation </li></ul>
  6. 6. General Provisions <ul><li>An arrangement for the progressive, reciprocal & asymmetric liberalization </li></ul><ul><li>Do not apply to subsidies </li></ul><ul><li>States retain the right to regulate & introduce new regulations to meet legitimate policy objectives </li></ul><ul><li>Do not apply to measures regarding citizenship, residence or employment </li></ul><ul><li>Measure must not be applied to nullify or impair benefits </li></ul><ul><li>Future liberalization no later than 5 yrs from date of entry into force </li></ul>
  7. 7. General Provisions (cont’d) <ul><li>Bahamas & Haiti to schedule commitments no later than 6 months after signature (preferential treatment not applicable until) </li></ul><ul><li>Recognize the importance of Regional Integration </li></ul><ul><li>Does not include activities in the exercise of governmental authority </li></ul><ul><li>Do not apply to activities such as mining, manufacturing, processing of nuclear materials, production of arms, audio-visual services, national & international air transport etc. </li></ul>
  8. 8. Market Access (MA) <ul><li>Parties shall accord treatment no less favorable than that provided for in the specific commitments </li></ul><ul><li>Measures not to be maintained unless specified- Limitations such as on </li></ul><ul><ul><li>the number of commercial presences (quotas, monopolies, exclusive rights or other requirements such as ENT) </li></ul></ul><ul><ul><li>the total value of transactions or assets </li></ul></ul><ul><ul><li>the total number of operations or quantity of output </li></ul></ul><ul><ul><li>the participation of foreign capital </li></ul></ul><ul><ul><li>specific types of commercial presence </li></ul></ul>
  9. 9. National Treatment (NT) <ul><li>Where there are MA commitments States shall grant treatment no less favorable than that accorded to their own like service provider (treatment will be considered less favorable if it modifies the conditions of competition in favor of the other party) </li></ul>
  10. 10. Most-Favored Nation Treatment (MFN) <ul><li>The EC shall accord treatment no less favorable than the most favorable accorded to third country with whom they conclude & agreement with after signature of the EPA </li></ul><ul><li>CF shall accord treatment no less favorable than the most favorable accorded to any major trading economy – (major trading economy is any country with more than 1% world share in merchandise trade or group with more that 1.5%) </li></ul>
  11. 11. Temporary Presence of Natural Persons for Business Purposes <ul><li>Key Personnel – National employed by a legal entity responsible for setting up or the proper control ( all sectors liberalised under mode 3) </li></ul><ul><ul><li>Business visitors – must be in a senior position, do not engage in direct transaction with the gen. public & do not receive payment from a source in the host </li></ul></ul><ul><ul><li>Intra-corporate transfers – must have been employed or partners for at least 1year, transferred on a temporary basis </li></ul></ul><ul><ul><ul><li>Managers (directing, supervising auth. to recruit or dismiss or recom.) </li></ul></ul></ul><ul><ul><ul><li>Specialists (must possess uncommon knowledge) </li></ul></ul></ul>
  12. 12. Temporary Presence of Natural Persons (cont.) <ul><li>For any activity that CARIFORUM or the EU has allowed persons to invest in, graduate trainees should be granted access. </li></ul><ul><li>Graduate trainees – national employed by a legal entity for at least 1 year, possess a university degree, temporarily transferred for career development & training in business techniques or methods (recipient co. may be required to submit training programme) </li></ul>
  13. 13. Business Service Sellers (BSS) <ul><li>Representatives of a service supplier seeking temporary entry to negotiate the sale of services or entering into agreements to sell services </li></ul><ul><li>For all sector liberalized </li></ul><ul><li>Temporary entry for 90days </li></ul><ul><li>Do not engage in making direct sales to the public </li></ul><ul><li>Do not receive remuneration from a source in the host State </li></ul><ul><li>For all sectors liberalised under modes 1, 2 & 3 </li></ul>
  14. 14. Contractual Services Suppliers <ul><li>National employed by a legal entity, with no commercial presence in the other territory, have concluded a bona fide contract requiring temporary presence to fulfill </li></ul><ul><li>Conditions </li></ul><ul><ul><li>Must have a registered business or an employee of a juridical person </li></ul></ul><ul><ul><li>Must possess a university degree or equivalent and professional qualifications (except fashion model chef de cuisine & entertainment); </li></ul></ul><ul><ul><li>Must first obtain a service contract must not exceed a period of twelve months (temporary entry and stay not more than 6 months); </li></ul></ul>
  15. 15. Conditions for CSS (cont.) <ul><ul><li>Must have been an employee of the juridical person for at least 1 year immediately preceding application; </li></ul></ul><ul><ul><li>Must possess at least three years professional experience; </li></ul></ul><ul><ul><li>Remuneration only for the contract; and </li></ul></ul><ul><ul><li>Subject to Economic Needs Test (ENT) - The main criteria will be the assessment of the relevant market situation in the Member State or the region where the service is to be provided, including with respect to the number of, the impact on, existing services suppliers </li></ul></ul>
  16. 16. Independent Professional <ul><li>National, self-employed with no commercial presence in the other territory, have concluded a bona fide contract requiring temporary presence to fulfill </li></ul><ul><li>Conditions </li></ul><ul><ul><li>Self employed </li></ul></ul><ul><ul><li>Must possess a university degree or equivalent and professional qualifications; </li></ul></ul><ul><ul><li>Must first obtain a service contract must not exceed a period of twelve months (temporary entry and stay not more than 6 months); </li></ul></ul><ul><ul><li>Must have at least 6 years professional experience at the date of application; </li></ul></ul><ul><ul><li>Subject to Economic Needs Test (ENT) </li></ul></ul>
  17. 17. Other Provisions <ul><li>Short Term visitors for business purposes </li></ul><ul><ul><li>Research and Design; Marketing research; Training seminars; Trade Fairs; Sales; Purchasing; </li></ul></ul><ul><ul><li>Provided they are not engaged in selling their services to the general public; do not receive remuneration in the territory of temporary stay, not to engage through a contract outside of the territory of temporary stay; </li></ul></ul><ul><ul><li>Temporary stay up to 90 days </li></ul></ul>
  18. 18. Mutual Recognition (MR) <ul><li>Nothing in this Title shall prevent the Parties from requiring that natural persons must possess the necessary qualifications and/or professional experience specified in the territory where the service is supplied, for the sector of activity concerned. </li></ul><ul><li>Professional bodies encouraged to Jointly develop & provide recommendations on MR of criteria applied re authorisation, licensing, operation and certification </li></ul><ul><li>Negotiations to start no later than 3 years after entry into force of the Agreement </li></ul>
  19. 19. MR (cont.) <ul><li>Start with accounting, architecture, engineering & tourism </li></ul><ul><li>Recommendations to be reviewed by the Joint Committee for consistency </li></ul><ul><li>If consistent negotiate through comp. auth a MRA </li></ul><ul><ul><li>Consistent with GATS Art. VII – , shall not be in a manner which constitutes a means of discrim. between countries in its application & shall afford oppor. for other interested Mem to negot. </li></ul></ul><ul><li>CF- EC Trade & Development Committee to review progress every 2 years </li></ul>
  20. 20. Transparency <ul><li>Parties shall ensure all laws, regulations, procedures and administrative rulings, international commitments relating to any trade matter covered by this Agreement are </li></ul><ul><li>promptly published or made publicly available and brought to the attention of the other Party </li></ul><ul><li>Establish enquiry points </li></ul><ul><ul><li>May not be depositories of laws & regulations </li></ul></ul><ul><li>Respond promptly to request for information </li></ul>
  21. 21. Procedures <ul><li>Where a specific commitment has been made & authorization is required, the competent authorities of the Parties shall, within a reasonable period of time after the submission of an application considered complete inform the applicant of the decision concerning the application. </li></ul><ul><li>The Parties shall maintain or institute judicial, arbitral or administrative tribunals or procedures which provide, at the request of an affected investor or service supplier, for a prompt review of, and where justified, appropriate remedies for, administrative decisions. </li></ul>
  22. 22. E-Commerce <ul><li>Recognises e-commerce increases trade opportunities </li></ul><ul><li>Agree to cooperate & promote the development of e-commerce </li></ul><ul><li>Must be compatible with the highest int’l standards of data protection </li></ul><ul><li>Deliveries considered provision of services </li></ul><ul><li>Dialogue or regulation (exchange of information) – recognition of certificates or electronic signature, liability of intermediary providers, protection of consumers, treatment of unsolicited communications </li></ul>
  23. 23. Contractual Service Suppliers (CSS) <ul><li>The EC made commitments in 29 sectors </li></ul><ul><li>For the EC 10 commitments enter into force in 2011 </li></ul><ul><li>For Bulgaria & Romania 2014 </li></ul><ul><li>EC directives on mutual recognition of diplomas only apply to nationals of EU Member States. The right to practise a regulated professional service in one Member State does not grant the right to practise in another Member State. (In order for third-country nationals to obtain EC-wide recognition of their qualifications, it is necessary a Mutual Recognition Agreement to be negotiated) </li></ul>
  24. 24. Areas of access for CARIFORUM CSS in the EU <ul><li>Legal advisory services in respect of international public law and foreign law </li></ul><ul><li>Accounting and bookkeeping services </li></ul><ul><li>Taxation advisory services </li></ul><ul><li>Architectural services </li></ul><ul><li>Urban planning and landscape architecture services </li></ul><ul><li>Engineering services </li></ul><ul><li>Integrated Engineering services </li></ul><ul><li>Medical and dental services </li></ul><ul><li>Veterinary services </li></ul><ul><li>Midwives services </li></ul>
  25. 25. Areas of access for CARIFORUM CSS in the EU (cont’d) <ul><li>11 . Services provided by nurses, physiotherapists and paramedical personnel </li></ul><ul><li>12. Computer and related services </li></ul><ul><li>13. Research and development services </li></ul><ul><li>Advertising services </li></ul><ul><li>Market Research and Opinion Polling </li></ul><ul><li>Management consulting services </li></ul><ul><li>Services related to management consulting </li></ul><ul><li>Technical testing and analysis services </li></ul><ul><li>Related scientific and technical consulting services </li></ul><ul><li>Maintenance and repair of equipment </li></ul>
  26. 26. Areas of access for CARIFORUM CSS in the EU (cont’d) <ul><li>21. Chef de cuisine services </li></ul><ul><li>22. Fashion model services </li></ul><ul><li>23. Translation and interpretation services </li></ul><ul><li>24. Site investigation work </li></ul><ul><li>25. Higher education services (only privately-funded services) </li></ul><ul><li>26. Environmental services </li></ul><ul><li>27. Travel agencies and tour operators' services </li></ul><ul><li>28. Tourist guides services </li></ul><ul><li>29. Entertainment services other than audiovisual service s </li></ul>
  27. 27. Areas of access for CARIFORUM IP in the EU <ul><li>Market access was granted in 11 sectors. </li></ul><ul><li>Legal advisory services in respect of international public law and foreign law (i.e. non-EU law) </li></ul><ul><li>Architectural services </li></ul><ul><li>Urban planning and landscape architecture services </li></ul><ul><li>Engineering services </li></ul><ul><li>Integrated Engineering services </li></ul><ul><li>Computer and related services </li></ul><ul><li>Research and development services </li></ul><ul><li>Market Research and Opinion Polling </li></ul><ul><li>Management consulting services </li></ul><ul><li>Services related to management consulting </li></ul><ul><li>Translation and interpretation services </li></ul>
  28. 28. Movement of Natural Persons <ul><li>In those sectors in which economic needs tests (ENTs) are applied for Mode 4, the main criterion will be availability of persons with the requisite skills in the local labour market. With regard to other modes of supply, the main criteria for ENTs will be the assessment of the relevant market situation where the service is to be provided, with respect to the number of, and the impact on, existing service suppliers. </li></ul>
  29. 29. <ul><li>INVESTMENT </li></ul>
  30. 30. Elements of the investment provisions <ul><li>Contained in the legal text and in the schedule of commitments </li></ul><ul><li>Negative listing of restrictions in non-service sectors – what is listed is not liberalised (may contain restrictions) </li></ul>
  31. 31. Behavior of investors <ul><li>Parties shall take measures to : </li></ul><ul><li>Forbid & held liable investor who offers, promises or gives undue benefits to any public official; </li></ul><ul><ul><li>Most legislation addresses public officials have to also address investors </li></ul></ul><ul><li>Ensure investors act in accordance with core labour standards; </li></ul><ul><ul><li>Freedom of association; elimin. of forced labour; abolition of child labour; and elimin. of discrimination in the work place </li></ul></ul><ul><li>Ensure investors do not manage or operate investment counter to int’l environmental standards; and </li></ul><ul><li>Ensure investors establish local community liaison processes </li></ul><ul><ul><li>Especially in projects involving extensive natural resource-based activities </li></ul></ul>
  32. 32. Standards & Review <ul><li>FDI must not be encourage by lowering environmental, labour health & safety standards </li></ul><ul><li>With a view to progressive liberalisation review the investment framework no later than three years after entry into force of the Agreement. </li></ul><ul><ul><li>What legislation relates to investment </li></ul></ul><ul><ul><li>Is the environment conducive to investment </li></ul></ul><ul><ul><li>What is the flow of investment between Europe and Antigua & Barbuda </li></ul></ul><ul><ul><li>Which areas of investment should be targeted for Europeans </li></ul></ul>
  33. 33. Schedule: Non-services investment <ul><li>Sectors covered </li></ul><ul><li>Agriculture, hunting & forestry </li></ul><ul><li>Fishing </li></ul><ul><li>Mining & quarrying </li></ul><ul><li>Manufacturing </li></ul><ul><li>Production, transmission & distribution of electricity, gas, steam & hot water </li></ul>
  34. 34. Investment Schedule <ul><li>CF has the ability to within two years after entry into force of the Agreement to list any non-conforming measures </li></ul><ul><li>Schedule is not a commitment on privatisation </li></ul><ul><li>Right to regulate to meet national policy objective </li></ul><ul><li>Only discriminatory measures/limitation listed </li></ul><ul><li>No rights directly to natural or juridical persons </li></ul><ul><li>Does not include measures concerning subsidies </li></ul><ul><li>Does not include measures relating to qualification requirements and procedures, technical standards and licensing requirements and procedures (even if not listed, apply in any case to investors of the other Party) </li></ul>
  35. 35. Cooperation <ul><li>Cooperate by providing support through technical assistance, training & capacity building: </li></ul><ul><ul><li>Improve ability to gather information on & meet regulations & standards of the EC; </li></ul></ul><ul><ul><li>Improve export capacity particularly marketing of tourism & cultural services, SMEs; </li></ul></ul><ul><ul><li>Facilitate interaction & dialogue; </li></ul></ul>
  36. 36. Cooperation (cont.) <ul><ul><li>Address quality & standards needs under the agreement & domestic & regional markets. Also ensure participation in the development & adoption of sustainable tourism standards; </li></ul></ul><ul><ul><li>Developing & implementing regulatory regimes; and </li></ul></ul><ul><ul><li>Mechanisms for promoting investment & joint ventures & enhancing the capacities of IPA </li></ul></ul>
  37. 37. <ul><li>Computer & Related </li></ul><ul><li>Services </li></ul>
  38. 38. Computer & Related Services <ul><li>Commitments made based on understanding in the Section 2 </li></ul><ul><li>Covers the basic functions used to provide all computer and related services </li></ul><ul><li>Includes consulting, strategy, analysis, planning, specification, design, development, installation, implementation, integration, testing, debugging, updating, support, technical assistance, or management of or for computers or computer systems, computer programms, data porcessing, data storage, data hosting or database services, maintenance & repair & training </li></ul><ul><li>Content of core services such as banking is not included </li></ul>
  39. 39. EU Commitments in Computer & Related Services <ul><li>Modes 1, 2 & 3 - None </li></ul><ul><li>CSS & IP </li></ul><ul><ul><li>CY, DE, EE, EL, FR, IE, LU, MT, NL, PT, SI, SE: None. </li></ul></ul><ul><ul><li>15 Member States with ENT ES, IT, PL : Economic needs test for independent professionals. </li></ul></ul>
  40. 40. LCA Commitments in Computer & Related Services <ul><li>Consultancy services related to the installation of computer hardware </li></ul><ul><ul><li>(MA) </li></ul></ul><ul><ul><li>Modes 1 & 2 – Unbound </li></ul></ul><ul><ul><li>Mode 3 - ENT may be applied. Main criteria: Location of business and employment situation in the sub-sector </li></ul></ul><ul><ul><li>Mode 4 - Unbound & ENT for key personnel (business visitors, managers & specialists) & graduate trainees </li></ul></ul><ul><ul><li>NT – Modes 1, 2 & 3 - None </li></ul></ul>
  41. 41. LCA Commitments in Computer & Related Services (cont’d) <ul><li>Software Implementation Services (except Systems and software consulting services & Systems analysis services) </li></ul><ul><ul><li>Modes 1, 2, 3 & 4 - None </li></ul></ul><ul><li>Data Processing Services </li></ul><ul><ul><li>Modes 1 & 2 – None </li></ul></ul><ul><ul><li>Mode 3 - Percentage of local persons to be employed </li></ul></ul><ul><li>Mode 4 - Unbound & ENT for key personnel (business visitors, managers & specialists) & graduate trainees </li></ul>
  42. 42. LCA Commitments in Computer & Related Services (cont’d) <ul><li>Data base services </li></ul><ul><ul><li>Modes 1, 2 & 3 – None </li></ul></ul><ul><ul><li>Mode 4 - Limitation on number of non-nationals in managerial positions. Subject to an economic needs test </li></ul></ul>
  43. 43. <ul><li>TELECOMMUNICATION SERVICES </li></ul>
  44. 44. Telecommunications Services <ul><li>Section 4 - Sets the principles for telecommunications services other than broadcasting </li></ul>
  45. 45. Regulatory Authority <ul><li>Body (bodies) charged with regulating telecoms </li></ul><ul><li>Must be legally distinct & functionally independent & empowered to regulate the sector </li></ul><ul><li>Task must be made public & easily accessible </li></ul><ul><li>Decisions & procedures must be impartial </li></ul><ul><li>Parties have the right to appeal to an indep. body </li></ul>
  46. 46. Authorisation <ul><li>Authorisation by notification </li></ul><ul><li>Terms & conditions must be made public </li></ul><ul><li>May be required to address issues of numbering & frequencies </li></ul><ul><li>Where a license is required: </li></ul><ul><ul><li>the criteria & the reasonable time granting must be made publicly available; </li></ul></ul><ul><ul><li>the reasons for denial shall be made known in writing to the applicant on request; </li></ul></ul><ul><ul><li>the applicant shall be able to seek recourse before an appeal body where a licence is unduly denied; </li></ul></ul><ul><ul><li>licence fees shall not exceed the administrative costs normally incurred in the management, control and enforcement of the applicable licences. </li></ul></ul>
  47. 47. Competitive safeguards <ul><li>Subject to the regulatory framework set out for Telecoms. in ATG </li></ul><ul><li>Major suppliers must be prevented from engaging in or continuing anti-competitive practices </li></ul>
  48. 48. Interconnection <ul><li>Authorised suppliers have the right to negotiate interconnection agreements </li></ul><ul><li>Info. to be used solely for the purpose for which it was supplied </li></ul><ul><li>interconnection shall be provided: </li></ul><ul><ul><li>under non-discriminatory terms , conditions & rates and of a quality no less favourable than that provided for its own like services or other affiliates; </li></ul></ul><ul><ul><li>in a timely fashion, on terms, conditions and rates that are transparent & reasonable; and </li></ul></ul><ul><ul><li>upon request, at points in addition to the network termination points offered to the majority of users (subject to charges that reflect the cost of construction of necessary additional facilities) </li></ul></ul>
  49. 49. Interconnection (cont.) <ul><li>Procedures must be made publically available </li></ul><ul><li>Interconn. agreements or reference offers must be made publically available by major suppliers </li></ul><ul><li>A service supplier shall have recourse, to an independent domestic body to resolve disputes regarding appropriate terms, conditions and rates for interconnection </li></ul>
  50. 50. Universal service <ul><li>Parties have the right to define the kind of US obligations it wishes to maintain </li></ul><ul><li>Obligations must be administered in a transparent, objective non-discriminatory manner </li></ul><ul><li>All suppliers are entitled to ensure US </li></ul>
  51. 51. Telecommunications <ul><li>Parties must ensure confidentiality of data </li></ul><ul><li>National regulatory authorities shall resolve disputes in a reasonable time </li></ul>
  52. 52. EU Commitments in Telecommunications Services <ul><li>All services consisting of the transmission and reception of signals by any electromagnetic means, excluding broadcasting </li></ul><ul><li>Modes 1, 2 & 3 None </li></ul><ul><li>No commitments in mode 4 </li></ul>
  53. 53. EU Commitments in Telecommunications Services <ul><li>Satellite broadcast transmission services </li></ul><ul><li>Modes 1, 2 & 3 - EC: None except that service providers in this sector may be subject to obligations to safeguard general interest objectives related to the conveyance of content through their network in line with the EU regulatory framework for electronic communications (Mode 3 no none) </li></ul><ul><ul><li>BE: Unbound </li></ul></ul><ul><li>No commitments in mode 4 </li></ul>
  54. 54. ATG Commitments in Telecommunications Services <ul><li>Voice telephone services, Packet-switched data transmission services, Circuit-switched data transmission services, Telex services, Telegraph services, Facsimile Services & Private leased circuit services </li></ul><ul><li>Mode 1 - By pass of exclusive operators not permitted until 2012. None as of January 1, 2012 </li></ul><ul><li>Mode 2 – None </li></ul><ul><li>Mode 3 - Reserved to exclusive operators until 2012. None as of January 1, 2012 for international services </li></ul><ul><li>Mode 4 Unbound, ENT for key personnel (business visitors, managers & specialists) & graduate trainees </li></ul>
  55. 55. <ul><li>FINANCIAL </li></ul><ul><li>SERVICES </li></ul>
  56. 56. Financial Services <ul><li>Special provisions Section 5 Articles 103 – 108 </li></ul><ul><li>Means any service of a financial nature offered by a financial service supplier </li></ul><ul><li>Comprises </li></ul><ul><ul><li>Insurance & insurance-related services </li></ul></ul><ul><ul><ul><li>Direct insurance (including co-ins.) </li></ul></ul></ul><ul><ul><ul><li>Reinsurance & retrocession </li></ul></ul></ul><ul><ul><ul><li>Insurance intermediation </li></ul></ul></ul><ul><ul><ul><li>Services auxiliary to insurance </li></ul></ul></ul>
  57. 57. Financial Services (cont.) <ul><li>Banking & other financial services include: </li></ul><ul><ul><li>Acceptance of deposits etc. </li></ul></ul><ul><ul><li>Leasing </li></ul></ul><ul><ul><li>Payments & money transmission </li></ul></ul><ul><ul><li>Guarantees & commitments </li></ul></ul><ul><ul><li>Money brokering </li></ul></ul><ul><ul><li>Settlement of clearing services </li></ul></ul><ul><ul><li>Advisory, intermediation </li></ul></ul>
  58. 58. Financial Services (cont.) <ul><li>Financial service supplier does not include a public entity – all natural or juridical persons providing financial services </li></ul><ul><li>Public entity- central bank or monetary auth. Or entity owned or controlled by the Parties engaged in governmental functions </li></ul><ul><li>New financial services – includes services related to existing or new products or the manner in which the product is delivered </li></ul>
  59. 59. Prudential carve-out <ul><li>Parties may adopt or maintain measures for prudential reasons </li></ul><ul><ul><li>Protection of investors, depositors etc. </li></ul></ul><ul><ul><li>Ensure integrity & stability of the financial system </li></ul></ul><ul><li>Not required to disclose information relating to affairs & acc </li></ul>
  60. 60. Effective & transparent regulations <ul><li>New provision (GATS Plus) </li></ul><ul><li>Provide measures either by official publication or in other written or electronic form to allow for comment </li></ul><ul><li>Make available requirements for application to supply financial services </li></ul><ul><li>Provide information on request of an applicant </li></ul><ul><li>Parties shall endeavor to facilitate the implementation & application of int’l agreed standards for regulating & supervising the sector </li></ul>
  61. 61. New Financial Services <ul><li>Parties must permit financial service suppliers to provide any new financial service of a type similar to those permitted under its domestic law in like circumstances </li></ul><ul><li>Where authorisation is required it shall be made within a reasonable time </li></ul>
  62. 62. Specific exceptions <ul><li>Parties not prevented from conducting activities forming part of public retirement plans except where regul allows financial service supplier in competition with public entities or private institutions </li></ul>
  63. 63. Data processing <ul><li>Parties must allow transfer on information into & out of the territory for data process in the ordinary course of business </li></ul><ul><li>Safeguards shall be adopted to protect privacy & fundamental rights & freedoms </li></ul>
  64. 64. <ul><li>INTERNATIONAL </li></ul><ul><li>MARITIME </li></ul><ul><li>TRANSPORT </li></ul><ul><li>SERVICES </li></ul>
  65. 65. Maritime Transport <ul><li>Principles regarding liberalisation pursuant to the provisions on cross-border, commercial presence & temporary presence </li></ul><ul><li>Int’l maritime transport – carriage of goods using more than one mode of transport under a single contract (have the right to directly contract with providers of other modes of transport) </li></ul>
  66. 66. Principles regarding liberalisation (cont.) <ul><li>Maritime cargo handling – activities by stevedore companies, but not the direct activities of dockers . </li></ul><ul><li> The activities covered include the organisation and supervision of: </li></ul><ul><ul><li>(i) the loading/discharging of cargo to/from a ship; </li></ul></ul><ul><ul><li>(ii) the lashing/unlashing of cargo; </li></ul></ul><ul><ul><li>(iii) the reception/delivery and safekeeping of cargoes before shipment or after discharge; </li></ul></ul>
  67. 67. Other activities defined <ul><li>customs clearance services </li></ul><ul><li>container station and depot services </li></ul><ul><li>maritime agency services </li></ul><ul><li>freight forwarding services </li></ul>
  68. 68. Maritime Transport (cont.) <ul><li>Considering the level of liberalisation Parties shall </li></ul><ul><li>Apply unrestricted access to int’l maritime & trade on a commercial & non-discriminatory basis </li></ul><ul><li>Grant to ships flying the flag of the other party no less favorable treatment </li></ul>
  69. 69. Maritime Transport (cont.) <ul><li>Parties shall not introduce cargo-sharing arrangements in future bi-lateral agreements </li></ul><ul><li>Upon entry Parties shall abolish and abstain from introducing any unilateral measures & administrative, technical & other obstacles </li></ul>
  70. 70. Maritime Transport (cont.) <ul><li>Parties shall permit int’l maritime service suppliers to establish & operate under no less favorable conditions that those accorded to their own or third country suppliers, whichever is better </li></ul><ul><li>Parties shall make available at the port on non-discrim. terms & conditions: </li></ul><ul><ul><li>pilotage, towing and tug assistance, provisioning, fuelling and watering, garbage collecting and ballast waste disposal, port captain’s services, navigation aids, shore-based operational services essential to ship operations, including communications, water and electrical supplies, emergency repair facilities, anchorage, berth and berthing services. </li></ul></ul>
  71. 71. EU Commitments on Maritime Transport Services (Mode 3) <ul><li>International passenger & freight transportation (except nat’l cabotage) - Economic activities considered as public utilities at a national or local level may be subject to public monopolies or to exclusive rights granted to private operators. </li></ul><ul><li>25 Member States - Unbound for the establishment of a registered company for the purpose of operating a fleet under the national flag of the State of establishment </li></ul><ul><li>17 Member States - Feedering services by authorisation </li></ul>
  72. 72. EU Services auxiliary to Maritime Transport <ul><li>a) Maritime Cargo Handling Services </li></ul><ul><li>b) Storage and warehousing Services </li></ul><ul><li>c) Customs Clearance Services </li></ul><ul><li>d) Container Station and Depot Services </li></ul><ul><li>e) Maritime Agency Services </li></ul><ul><li>f) Maritime Freight Forwarding Services </li></ul><ul><li>g) Rental of Vessels with Crew </li></ul><ul><li>h) Pushing and towing services </li></ul><ul><li>i) Supporting services for maritime transport </li></ul><ul><li>j) Other supporting and auxiliary services (including catering) </li></ul>
  73. 73. <ul><ul><li>TOURISM </li></ul></ul><ul><ul><li>SERVICES </li></ul></ul>
  74. 74. Tourism Services <ul><li>Introduces disciplines on prevention of anticompetitive practices </li></ul><ul><ul><li>Tour operators, travel agencies, CRS </li></ul></ul><ul><ul><ul><li>No unfair prices, exclusivity clauses, refusal to deal, tied sales or quantity restrictions </li></ul></ul></ul><ul><li>Facilitate transfer of technology to establishments </li></ul><ul><ul><li>What is needed? </li></ul></ul><ul><li>Facilitate the participation of SME in the tourism sector </li></ul><ul><ul><li>What is preventing their full participation? </li></ul></ul>
  75. 75. Tourism Services <ul><li>Cooperate on MR </li></ul><ul><ul><li>Which of the disciplines to begin with </li></ul></ul><ul><ul><li>Who to seek partnership with in the EU </li></ul></ul><ul><li>Provides for addressing environmental & quality standards – must not constitute unnecessary barriers to trade & allow for CF participation in int’l standard setting organ. </li></ul><ul><ul><li>Determine the activities that the sector wants to participate in </li></ul></ul>
  76. 76. Development Cooperation in Tourism <ul><li>Takes into consideration asymmetries </li></ul><ul><li>Subject to Article 7 of the Agreement </li></ul><ul><ul><li>Upgrade nat’l accounting systems </li></ul></ul><ul><ul><ul><li>Introduction of the TSA </li></ul></ul></ul><ul><ul><li>Develop capacity for environmental management </li></ul></ul><ul><ul><li>Facilitate the development of marketing strategies for SME’s </li></ul></ul><ul><ul><li>Provide for exchange programmes & training, including languages </li></ul></ul><ul><li>Development of projects to address the areas highlighted </li></ul>
  77. 77. Exchange of information and consultation <ul><li>Modalities for dialogue to be developed by the Trade and development Committee </li></ul><ul><li>Private and other relevant stakeholder to be part of the dialogue </li></ul><ul><li>Regular dialogue on the issuance of travel advisories </li></ul>
  78. 78. <ul><li>CHALLENGES </li></ul><ul><li>OPPORTUNITIES </li></ul>
  79. 79. Challenges <ul><li>Absence of tax treaties to avoid double taxation </li></ul><ul><li>Foreign exchange controls </li></ul><ul><li>Language </li></ul><ul><li>Ignorance of cultural norms, customs and values </li></ul><ul><li>Protectionist policies </li></ul><ul><li>Meeting the right people </li></ul><ul><li>Cost of travel </li></ul><ul><li>Ignorance of the laws </li></ul><ul><li>Residential status requirement in some EU States </li></ul><ul><li>Absence of harmonisation and accreditation between institutions in CF & the EU </li></ul>
  80. 80. Challenges <ul><li>Small size of firms </li></ul><ul><li>Lack of business operation in the EU </li></ul><ul><li>Unwillingness to collaborate </li></ul><ul><ul><li>Need to revise, implement & enforce required legislation </li></ul></ul>
  81. 81. Opportunities <ul><li>Openness to foreigners </li></ul><ul><li>Use of English </li></ul><ul><li>Access to other markets (Also the link between the FCORs and the mianland) </li></ul><ul><li>Contacts in place </li></ul><ul><li>Pricing </li></ul><ul><li>Positive attitude towards joint ventures/partnerships </li></ul><ul><li>Diaspora populations </li></ul><ul><li>Implementation of the Agreement </li></ul><ul><li>Removal of the visa requirement for the FCORs </li></ul><ul><li>Access to the FCORS - regular LIAT flights </li></ul><ul><li>Utilizing the expertise in the FCORS to meet standards to access the EU markets </li></ul>
  82. 82. Opportunities <ul><ul><li>Special opportunity for joint ventures </li></ul></ul><ul><li>Ability to add unique value-added </li></ul><ul><li>Some States in the region have resources and personnel to provide training in some areas </li></ul><ul><ul><li>Promoting investment to increase demand </li></ul></ul>
  83. 83. Other issues to consider (Demand-side) <ul><li>Demand-side issues (market access, consumers, target markets, regulatory regimes) </li></ul><ul><li>Which sectors are of priority </li></ul><ul><li>Which EU Markets are priority targets </li></ul><ul><li>Determine the regulatory requirements for access </li></ul><ul><li>Identify persons & companies in the EU for partnership </li></ul><ul><li>Need to MRA to capitalize upon opportunities </li></ul>
  84. 84. Other issues to consider (Supply-side) <ul><li>Supply-side issues (Competitiveness, product quality, HR, Technological capabilities) </li></ul><ul><li>develop a central point for negotiating different aspects of cultural </li></ul><ul><li>Identify best practices & standards for MR </li></ul><ul><li>Need to develop capacity to meet nat’l & int’l standards </li></ul><ul><li>Increased investment in new technologies </li></ul><ul><li>Technical assistance for professional development </li></ul><ul><li>Development of policies and legislation </li></ul><ul><li>Provide training to contest the EU market </li></ul>
  85. 85. Implementation issues <ul><li>CARIFORUM-EC cooperation and regional CARIFORUM integration </li></ul><ul><li>Future Liberalisation </li></ul><ul><ul><li>Identification of new sectors and the conditions of liberalisation </li></ul></ul><ul><li>Facilitatory Measures, Sectoral Measures & Measures on Mode of Supply </li></ul><ul><li>Analysis of regulatory framework - Amending legislation & adopting new </li></ul><ul><ul><li>Harmonisation & enactment of a modern regulatory framework </li></ul></ul>
  86. 86. Implementation issues (cont.) <ul><li>Ensure MA & NT granted in accordance with the schedule </li></ul><ul><ul><li>CF & EU </li></ul></ul><ul><ul><li>Analysis of schedule to det. opportunities avail. </li></ul></ul><ul><ul><li>What is needed for market penetration </li></ul></ul><ul><li>Train specialists to monitor other FTAs and address granting/receipt of MFN to service providers </li></ul><ul><li>Develop policies and legislation to govern the behaviour of investors & maintenance of standards on investments </li></ul>
  87. 87. Implementation issues (cont.) <ul><li>Conduct nat’l consultations toward development of policies and legislation for the implementation of provisions & commitments in services & investment </li></ul><ul><li>Conduct nat’l consultations towards the future liberalisation of services & investment commitments </li></ul><ul><li>Review legislation & implement new legislation to facilitate trade in all sectors liberalised – assessment being conducted </li></ul><ul><li>Complete the process of the CARICOM – DR services schedule </li></ul>
  88. 88. Implementation (cont.) <ul><li>Develop a national strategic development plan </li></ul><ul><li>Development/implementation of required legislation for registration & certification </li></ul><ul><li>Training </li></ul><ul><li>Development/amendment of legislation to address the use of title and practice as an architect & engineer </li></ul>
  89. 89. Implementation issues (cont.) <ul><li>Movement of Natural Persons – </li></ul><ul><li>Mechanism to address the ENT </li></ul><ul><ul><li>Collection of data </li></ul></ul><ul><ul><li>Thorough assessment of what policy is in place for temporary entry </li></ul></ul><ul><ul><li>What labour market test is in place (national & regional) </li></ul></ul><ul><ul><ul><li>How do we assess the HR needs </li></ul></ul></ul><ul><li>Effect given to the definitions & terms for Temporary presence </li></ul><ul><li>Sensitization of all stakeholders on legal requirements for temporary movement </li></ul><ul><ul><li>Training seminars with immigration & labour officials </li></ul></ul>
  90. 90. Implementation issues (cont.) <ul><li>Development of projects for the sustainable development of tourism </li></ul><ul><li>Establishment of programmes for environmental & quality standards applicable to tourism services </li></ul><ul><li>Determine what are the technological needs of established tourism services industries </li></ul><ul><li>Determine what is needed for the better participation of SME in the tourism sector </li></ul><ul><li>Determine what are the development cooperation and technical assistance needs of the tourism sector. </li></ul>
  91. 91. Implementation (cont.) <ul><li>Government policies on culture and trade, intellectual property, ICT, industrial and innovation upgrading etc developed </li></ul><ul><li>Model Co-production Treaty prepared </li></ul><ul><li>Harmonized regional policies based on the Protocol prepared </li></ul><ul><li>Market intelligence gathering system introduced </li></ul><ul><li>Coordinated regional system for the classification, registration and certification of cultural professionals developed </li></ul><ul><li>Technical assistance needs identified to strengthen industry associations and support services for the cultural industries </li></ul><ul><li>Technical assistance needs of the different sectors identified </li></ul>
  92. 92. Implementation issues (cont.) <ul><li>establishment of enquiry points </li></ul><ul><li>facilitate prior publication of new measures; </li></ul><ul><li>specify and publicize application requirements; </li></ul><ul><li>establish mechanisms for the timely response to application queries </li></ul><ul><li>Create the policy framework for conducting e-commerce </li></ul><ul><li>Develop & implement legislation on ICT </li></ul><ul><li>Thorough analysis of development cooperation needs for the services sector </li></ul><ul><ul><li>Development of proposals & projects </li></ul></ul>
  93. 93. Way forward (cont.) <ul><li>What is necessary for your sector to become more competitive </li></ul><ul><li>What activities must be undertaken to implement the provisions </li></ul><ul><li>What you need to know about the EU & DR market </li></ul><ul><li>How the cooperation provisions can assist your development </li></ul><ul><li>Do you have the relevant laws & regulations in place </li></ul><ul><li>Do you have the necessary technology </li></ul><ul><li>Where is training required </li></ul><ul><li>How effective is the organizational structure </li></ul><ul><li>How do non-nationals operate in the market </li></ul><ul><li>Greater collaboration/coordination between Ministries and agencies </li></ul>
  94. 94. Way forward <ul><li>Implement the provisions of the CSME that will allow for the free movement of Service Suppliers; </li></ul><ul><ul><li>Registration, Certification, Recognition & MR </li></ul></ul><ul><li>Implement necessary regulations for the regulatory and administrative operation of professionals; </li></ul><ul><li>Determine the areas of interest for developing co-production agreements </li></ul><ul><ul><li>Negotiation of regional co-production agreements </li></ul></ul><ul><li>Determine the sectors of interest for exporting </li></ul><ul><li>Create the relevant professional bodies to discuss with EU counterparts and agree on professional standards </li></ul>
  95. 95. Way forward <ul><li>More public-private collaboration </li></ul><ul><li>Government-Government collaboration </li></ul>
  96. 96. Thank you