Rhonda G. Wilson Private Sector SpecialistEPA Implementation Unit
BackgroundSigned by 27 EU Member States and 14CARIFORUM States in October 2008Came into effect in December 2008 throughprovisional application.The EPA replaces the trade provisions of theCotonou Agreement, which was signed in 2000.The CARIFORUM/EU EPA is the first EPA to becompleted between Europe and one of the sixsub-regions of the ACP.
CARIFORUM-EU EPA• Most comprehensive and far reaching international trade agreement signed by CARIFORUM countries• Trade in goods, agriculture, fisheries; trade in services, investment & trade related issues: (competition, innovation, IP, personal data protection & public procurement)• The inclusion of these areas is beyond what is required under Art. XXIV of the GATT.
CARIFORUM-EU EPAA reciprocal preferential trade arrangementMarket access arrangements provide for immediate duty free and quota free entry of goods originating in CARIFORUM StatesThese originating goods must meet the qualifying rules of origin which can be found in Protocol 1 of the Agreement
EPA : An Update CARIFORUM European UnionAntigua and Barbuda Denmark FinlandBelize GreeceDominica ItalyDominican Republic Lithuania MaltaGuyana Slovakia Spain Sweden United Kingdom
Tariff Liberalization(Jan 01, 2011)BelizeDominican RepublicGrenadaGuyanaSt. Kitts and NevisSuriname
Expected benefits of the EPA Expand and improve CARIFORUM’s industries and economic growth by enabling CARIFORUM States to develop exports in services and a wider range of goods in which they have a competitive advantage. Increase employment and business opportunities. Improve CARIFORUM’s access to European technology and technical “know how.” Increase competition within CARIFORUM and so improve efficiency in production processes
EPA ImplementationObligations which the CARIFORUM governments have assumed as Parties to the Agreement (required legislative & policy actions)Opportunities for improving the competitiveness of economic operatorsIncreased and enhanced market access for regional exports
EPA Challenges to dateInformation deficit by both public and private sectors on the EPASlow and uneven pace of EPA implementation among CARIFORUM countriesLimited development assistanceLack of established links with BSOs in EuropeLack of current information on market opportunities in Europe
Two new publicationsEPA: Implementation by CARIFORUM States of the Phased Reduction of Customs DutiesEPA: The Rules of Origin under the CARIFORUM-EU Economic Partnership Agreement
Funds for the private sectorCaribbean Export Development Agency: 28.3m€IDB Compete Caribbean is a 5 year joint initiative of the CIDA, DFID and the IDB: US$40mTechnical Co-operation Agreement for private sector development strategies for the OECS: US $250,000
Involvement of the private sectorEstablish regular private sector collaboration at the level of the firms• Establish where possible, clusters to take advantage of economies of scale• Develop export and marketing strategies to target the European market.• Establish links with the private sector in Europe via the Chambers of Commerce & other BSOs.
Private sector requirementsEstablishment of priority areas where trade capacity building is required.Increased productivity and competitivenessImproved packagingIntegration into the global value chain through trade and investment.
Creative industries Are comprised of the following:
Entertainment IndustryMusic industry (incl. Festivals and cultural recording, live tourism performance & music Fashion and glamour publishing) industryFilm & television Collective management industry of copyright and relatedBook and magazine rights. publishing industryVisual arts
EPA Opportunities for SMEsTourismEntertainmentHealth and WellnessFashionManufacturing of selected gourmet food products and condiments.
Opportunities for TourismAllowing the establishment of tourism offices in the EU.Lowering the costs of various inputs imported from the EU.Providing rules on anti-competitive behaviour that are expected to work in favour of the regional tourism industry.
Modes of supplying servicesCross Border TradeConsumption AbroadCommercial PresencePresence of Natural Persons
Cross Border SupplyThe service itself is sent from one country or territory to another. In other words it is the service that crosses the border.Examples of this: music downloads, satellite broadcast of movies for cable TV, transmission of information via electronic mail, fax etc.
Consumption AbroadInvolves the consumption of services by nationals of one country, while physically in another country. The service is therefore supplied to the consumer who is not in his country of residence.Examples: (i) German tourists visit SVG for 2 wks. (ii) A British yacht comes to SVG for repairs
Commercial PresenceThis entails the establishment of a commercial presence in a foreign market through which the service is supplied to clients in that market.
Presence of Natural PersonsTemporary entry for individuals to go into another country on short-term contracts to supply services directly to customers (e.g. singers, musicians, nurses, consultants, architects) or to manage companies/subsidiaries located in Europe.
Recommendations for Exporters• Establish an Internet presence: a website is critical• Get information on the target country• Obtain legal and quality requirements• Understand the possible non-tariff barriers• Gain a thorough understanding of the market sector• Understand the distribution channels• Know your competitors• Keep abreast of current trade information.
ConclusionYou have the power to make it happen! THANK YOU FOR YOUR ATTENTION