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„Enabling business with Europe“
    GIZ EPA Implementation Support Project
       Robert Glass, Executive Project Manager




                                                 05/31/12   Seite
GIZ - EPA Implementation Support Project

                Objective:

Relevant regional and national institutions contribute to a
development friendly implementation of the CARIFORUM-EC EPA



                Comp. 1: Support for governmental
implementation and
                Public-Private-Dialogue

                Comp. 2: Improve the business enabling
environment for selected sectors (Main focus: Service related
sectors)
                                                      05/31/12
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                                                                   Page
Institutional landscape, or …
                                                 “The juggernaut of EPA implementation”

      … CCLEC                                         CROSQ                   CAHFSA             CAIPA          ITU/CTU …


                                                       Advocacy, Lobbying, Policy
                   CARIFORUM-EU Business Forum
                    CARICOM_DR Business Forum




                                                                                                                       Private sector operators
                                                                   Regional                    Manufacturers’
Harmonization




                                                       CAN
                                                                   EPA Unit                     Association




                                                                                                                                                  Integration
                                                      CAMINO
                                                                                                Coalition of


                                                                   Guidance



                                                                                  Monitoring
                                                                                                Service Ind.
                                                      CSWA
                                                                                               Small Business
                                                      CASME                                         Ass.

                                                       CAIC
                                                                    NEPAIU                       Chamber of
                                                                                                 Commerce

                                                  Capacity building, Training, Information

                  Customs                             Bureau of
                … Dept.                               Standards                 MoA                 IPA                MoT …
                                                                                                            05/31/12
                                                                                                          05/31/12         Seite
                                                                                                                             Page
Business environment of a small/medium firm…
              “Uniqueness versus enabling environments”


        Factor                      … in Barbados                                    … in Germany
Customs procedure        3 to 5 days procedure                          Approaching one window policy, 24h
                                                                        EU27 = customs union

Market size              Local market                                   Free product circulation within
                         (280k population plus tourism)                 EU27 single market (320Mio pop.)

Labor                    Free movement for limited selection of         Free labor market for EU25
                         academic professionals in CC, not CF           5 year transition for Bulgaria and Romania

Currency and financial   Limited convertibility, regional transfer cost Euro zone (17 countries), no additional fees for
flow                     55USD per wire on either side                  transfer between member states


Energy cost              For commercial use higher than for             Discount for commercial consumers,
                         domestic users, incentive for RE               reduced tax for fuel in agriculture & bio

Transportation           Import duty on all vehicles: 130%              No import duty, VAT: 17%,
                         plus VAT 19%                                   Road tax for trailers on all highways

For food producers       - Food safety regime under dev.                HACCP compulsory for all
                         - CAHFSA under development                     producers/importers (consumer protection)

Tax regime               Simple progressive income tax                  Complex progressive income and
                                                                        commercial tax scheme (overreglated)


                                                                                          05/31/12
                                                                                        05/31/12      Seite
                                                                                                        Page
Institutional Strengthening and sustainability

Advocacy of a business support organization:
“Who pays the piper, calls the tune”


                                                              Donors:
      Government:
                                                              Poverty alleviation,
      - Policy advice
                                                              Stakeholder dialogue,
      - Legal framework dev.
                                                              Gender aspects,
      - Statistical data
                                                              Ownership, etc.
                                        BSO /
                                        BMO

                                            Fee
                                            s




                               Members:
                               Business information,
                               Training, Capacity building,
                               Lobbying,
                               Market access, etc.

                                                                             05/31/12
                                                                           05/31/12     Seite
                                                                                          Page
Public Private Dialogue (PPD) as best practice:
Area A expresses successful implementation.
“Unity pays off, for the individual and for the region”

:




                                                     05/31/12
                                                   05/31/12     Seite
                                                                  Page
Ongoing project activities


TA for private sector development in selected sectors,
in cooperation with Caribbean


  Capacity building for SME’s: „Export-Ready“ Program

  TA for the BIZCLIM funded CARIFORUM-EU Buisiness Forum 2012
  (mission of 50 Exporters to the EU)

  TA for sustainable institutional development




                                                          05/31/12
                                                        05/31/12     Seite
                                                                       Page
Caribbean Export Dev Agency & GIZ: COMMON
OBJECTIVES


    Enhancing              Capacity building of BSOs to            Enabling business to
 competitiveness of            be more effective in                    exploit EPA
      firms in                delivering export and                   opportunities
   CARIFORUM               investment services to their
     countries                      members
                                                                      Capacitating
                                                                     BSOs to impact
                                                                      on SMEs to
                                                                        export


                      STRATEGIC FIT & common OBJECTIVES

                        Calls for: Joint Venture project on a
                                50/50 funding basis

                         proposed exportREADY
                                program
              8                                           GEORG.VILLINGER@STW.DE
Tools towards reaching the objectives
   Enhancing
                                                                                      Enabling
competitiveness
                                                                                    businesses to
   of firms in
                                                                                     exploit EPA
  CARIFORUM
                                                                                    opportunities
   countries



                                 Seminar 1:              Seminar 3:
                             Export Marketing        Export Marketing
                            training for SMEs in    training for SMEs in
                               Manufacturing           Services sector
                Seminar 2:                   Seminar 4:          Consulting/Coaching:
                                                                          CSIs
                  ProNet                       ProNet
                                                                  supporting national
           training for SMEs in         training for SMEs in     Coalitions of Services
              Manufacturing                Services sector              Industry




Capacity building of                                                                Capacitating
  BSOs to be more                                                                  BSOs to impact
      effective in                                                                  on SMEs to
delivering export and                                                                 export
investment services
  to their members
                        9                                        GEORG.VILLINGER@STW.DE
ProNet for Manufacturers: Table of Content




    10                        GEORG.VILLINGER@STW.DE
Partnership: GIZ, Caribbean Export & BSOs

                                              SKILLS TRANSFER, RESOURCING and IMPACT
                                           Supporting SMEs by strenghtening BSO staff members
Assistance, work to be done, etc.




                                                                                                                             Assistance, work to be done, etc.
amount of funding, Technical




                                                                                                                             amount of funding, Technical
                                                                                    other
                                                                                    BSOs
                                                                                                      SMEs
                                                                                                                     other
                                                                                                                     BSOs




                               DEVELOPMENT STAGE IMPLEMENTATION STAGE                              ROLL-OUT STAGE
                               - Adaptation of material   - Pilot training (Role Reversal          - BSOs capacitated
                                                            ToT-training) of trainers                to impact on
                                                          - Final adaptation                         SMEs
                                                          - M&E



                                                    11                                      GEORG.VILLINGER@STW.DE
Challenges ahead:

 Multitude of agreements and regional overlap
 (CSME, CARICOM-DR, CAFTA-DR and other bilateral agreements)

 Private sector to define priorities and needs through PPD
 (Break the EPA down to a praxis related level...)

 Transformation of development needs into project formulation

 Ensure sustainability of developments on entrepreneur level

 Time is running:
 - transition periods are meant for adaptation
 - other EPA’s are being negotiated
                                                         05/31/12
                                                       05/31/12     Seite
                                                                      Page
Thank you for your attention.

 Contact:    EPA Implementation Support Project
             C/O Caribbean Export Development Agency
             Hastings, Barbados
             Robert.Glass@giz.de

 Internet:   www.giz.de




                                                   05/31/12
                                                 05/31/12     Seite
                                                                Page

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Doing Business with Europe

  • 1. „Enabling business with Europe“ GIZ EPA Implementation Support Project Robert Glass, Executive Project Manager 05/31/12 Seite
  • 2. GIZ - EPA Implementation Support Project Objective: Relevant regional and national institutions contribute to a development friendly implementation of the CARIFORUM-EC EPA Comp. 1: Support for governmental implementation and Public-Private-Dialogue Comp. 2: Improve the business enabling environment for selected sectors (Main focus: Service related sectors) 05/31/12 05/31/12 Seite Page
  • 3. Institutional landscape, or … “The juggernaut of EPA implementation” … CCLEC CROSQ CAHFSA CAIPA ITU/CTU … Advocacy, Lobbying, Policy CARIFORUM-EU Business Forum CARICOM_DR Business Forum Private sector operators Regional Manufacturers’ Harmonization CAN EPA Unit Association Integration CAMINO Coalition of Guidance Monitoring Service Ind. CSWA Small Business CASME Ass. CAIC NEPAIU Chamber of Commerce Capacity building, Training, Information Customs Bureau of … Dept. Standards MoA IPA MoT … 05/31/12 05/31/12 Seite Page
  • 4. Business environment of a small/medium firm… “Uniqueness versus enabling environments” Factor … in Barbados … in Germany Customs procedure 3 to 5 days procedure Approaching one window policy, 24h EU27 = customs union Market size Local market Free product circulation within (280k population plus tourism) EU27 single market (320Mio pop.) Labor Free movement for limited selection of Free labor market for EU25 academic professionals in CC, not CF 5 year transition for Bulgaria and Romania Currency and financial Limited convertibility, regional transfer cost Euro zone (17 countries), no additional fees for flow 55USD per wire on either side transfer between member states Energy cost For commercial use higher than for Discount for commercial consumers, domestic users, incentive for RE reduced tax for fuel in agriculture & bio Transportation Import duty on all vehicles: 130% No import duty, VAT: 17%, plus VAT 19% Road tax for trailers on all highways For food producers - Food safety regime under dev. HACCP compulsory for all - CAHFSA under development producers/importers (consumer protection) Tax regime Simple progressive income tax Complex progressive income and commercial tax scheme (overreglated) 05/31/12 05/31/12 Seite Page
  • 5. Institutional Strengthening and sustainability Advocacy of a business support organization: “Who pays the piper, calls the tune” Donors: Government: Poverty alleviation, - Policy advice Stakeholder dialogue, - Legal framework dev. Gender aspects, - Statistical data Ownership, etc. BSO / BMO Fee s Members: Business information, Training, Capacity building, Lobbying, Market access, etc. 05/31/12 05/31/12 Seite Page
  • 6. Public Private Dialogue (PPD) as best practice: Area A expresses successful implementation. “Unity pays off, for the individual and for the region” : 05/31/12 05/31/12 Seite Page
  • 7. Ongoing project activities TA for private sector development in selected sectors, in cooperation with Caribbean Capacity building for SME’s: „Export-Ready“ Program TA for the BIZCLIM funded CARIFORUM-EU Buisiness Forum 2012 (mission of 50 Exporters to the EU) TA for sustainable institutional development 05/31/12 05/31/12 Seite Page
  • 8. Caribbean Export Dev Agency & GIZ: COMMON OBJECTIVES Enhancing Capacity building of BSOs to Enabling business to competitiveness of be more effective in exploit EPA firms in delivering export and opportunities CARIFORUM investment services to their countries members Capacitating BSOs to impact on SMEs to export STRATEGIC FIT & common OBJECTIVES Calls for: Joint Venture project on a 50/50 funding basis proposed exportREADY program 8 GEORG.VILLINGER@STW.DE
  • 9. Tools towards reaching the objectives Enhancing Enabling competitiveness businesses to of firms in exploit EPA CARIFORUM opportunities countries Seminar 1: Seminar 3: Export Marketing Export Marketing training for SMEs in training for SMEs in Manufacturing Services sector Seminar 2: Seminar 4: Consulting/Coaching: CSIs ProNet ProNet supporting national training for SMEs in training for SMEs in Coalitions of Services Manufacturing Services sector Industry Capacity building of Capacitating BSOs to be more BSOs to impact effective in on SMEs to delivering export and export investment services to their members 9 GEORG.VILLINGER@STW.DE
  • 10. ProNet for Manufacturers: Table of Content 10 GEORG.VILLINGER@STW.DE
  • 11. Partnership: GIZ, Caribbean Export & BSOs SKILLS TRANSFER, RESOURCING and IMPACT Supporting SMEs by strenghtening BSO staff members Assistance, work to be done, etc. Assistance, work to be done, etc. amount of funding, Technical amount of funding, Technical other BSOs SMEs other BSOs DEVELOPMENT STAGE IMPLEMENTATION STAGE ROLL-OUT STAGE - Adaptation of material - Pilot training (Role Reversal - BSOs capacitated ToT-training) of trainers to impact on - Final adaptation SMEs - M&E 11 GEORG.VILLINGER@STW.DE
  • 12. Challenges ahead: Multitude of agreements and regional overlap (CSME, CARICOM-DR, CAFTA-DR and other bilateral agreements) Private sector to define priorities and needs through PPD (Break the EPA down to a praxis related level...) Transformation of development needs into project formulation Ensure sustainability of developments on entrepreneur level Time is running: - transition periods are meant for adaptation - other EPA’s are being negotiated 05/31/12 05/31/12 Seite Page
  • 13. Thank you for your attention. Contact: EPA Implementation Support Project C/O Caribbean Export Development Agency Hastings, Barbados Robert.Glass@giz.de Internet: www.giz.de 05/31/12 05/31/12 Seite Page