the cariforum-ec economic partnership agreement (epa) at a glance

8/9/2019 The Cariforum-EC Economic Partnership Agreement (EPA) at a Glance

1/47

Page | i

The EPA at aGlanceAn Overview of the CARIFORUMEC Economic

Partnership Agreement

Prepared by the CRNM Information Unit

Revised April 2009

Copyright CRNM 2008


2/47

Page | iiThe EPA at a Glance


3/47

Page | iii

1

Foreword .............................................................................................................................. Page v

About the CRNM ............ ................ ................ ................ ................ ................ ................ .................... ....... Page 1

Background .......................................................................................................................... Page 2

What is the EPA? ................................................................................................................... Page 3

Why an EPA? ......................................................................................................................... Page 4

When will the EPA come into effect? ................................................................................. Page 5

What was the Negotiating Process? .................................................................................. Page 6

Whats in the Provisions? ..................................................................................................... Page 9Part I Trade Partnership for Sustainable Development .................................................. Page 9

Part II Trade and Trade-Related Matters ....................................................................... Page 12

Title 1: Trade in Goods ............................................................................................................. Page 12

Chapter 1: Custom Duties ................ ................. ................. ................ ................. ................... ...... Page 12

Chapter 2: Trade Defence Measures .......................................................................................... Page 15

Chapter 3: Non-Tariff Barriers ........................................................................................................ Page 16

Chapter 4: Custom and Trade Facilitation .. ................ ................ ................. ................ .............. Page 17

Chapter 5: Agriculture and Fisheries ............... ................. ................. ................ .................... ...... Page 18

Chapter 6: Technical Barriers to Trade ........................................................................................ Page 21

Chapter 7: Sanitary and Phytosanitary (SPS) Measures ................. .................. ................. ....... Page 22

Title 2: Investment, Services and E-Commerce ..................................................................Page 23

Chapter 2: Commercial Presence ............................................................................................... Page 23

Chapter 3: Cross-Border Supply of Services ................................................................................ Page 25

Chapter 4: Temporary Presence of Natural Persons ................ ................. ................. ............... Page 25

Chapter 5: Regulatory Framework ............... ................. ................. ................. ................. ........... Page 27

Chapter 6: E-Commerce ............... ................. ................ ................. ................. ................... ......... Page 28

Title 3: Current Payments and Capital Movement ............................................................Page 29

Title 4: Trade-Related Issues .................................................................................................... Page 30

Chapter 1: Competition ................................................................................................................ Page 30

Chapter 2: Innovation and Intellectual Property ....................................................................... Page 30

Chapter 3: Public Procurement ..... ................ ................. ................. ................ ................... ......... Page 31

| Contents


4/47

Page | ivThe EPA at a Glance

Chapter 4: Environment ................................................................................................................ Page 32

Chapter 5: Social Aspects ... ................. ................ ................. ................. ................ ................... ... Page 32

Chapter 6: Personal Data Protection .......................................................................................... Page 33

Part III Dispute Avoidance and Settlement .................................................................. Page 34

Chapter 1: Arbitration Procedure ................................................................................................ Page 34

Chapter 2: Compliance ................................................................................................................ Page 34

Chapter 3: Common Provisions ................ ................ ................. ................ ................. ................ Page 35

Part IV General Exceptions ............................................................................................ Page 36

Part V Institutional Provisions .......................................................................................... Page 37

Part VI General and Final Provisions .............................................................................. Page 38

NOTES


5/47

Page | vThe EPA at a Glance

1

CARIFORUM States concluded an Economic Partnership

Agreement (EPA) with Europe, a longstanding and important

trading partner, in order to base their trade relations on WTO-

compatible rules. In the process their goal was to also transform

their trade relationship, into one that is more predictable and

consistent with the requirements of a modern trading

environment.

Through their participation in the EPA negotiation process,

CARIFORUM countries have carved some of the space they

need to adjust to the challenges of trade liberalization. In

addition, CARIFORUM States have been able to secure new

opportunities for the development of businesses, jobs and their

economies.

The EPA is, however, a long and comprehensive agreement.

This publication: The EPA at a Glance, was developed by theInformation Unit of the Caribbean Regional Negotiating

Machinery (CRNM), to provide a synopsis of the EPA. It is our

hope that the document will provide information in a concise

and accessible way, and help you, our valued stakeholders to

have a better understanding about the Agreement.

Should you require additional information about the EPA,

please visit our website at www.crnm.org or contact our Trade

Information Officer at [email protected]

CRNM Information Unit

| Foreword


6/47

Page | viThe EPA at a Glance


7/47

Page | 1

1

What is the CRNM

Established in 1997, the Caribbean Regional Negotiating

Machinery (CRNM) is the principal regional intergovernmental

organization mediating the Caribbeans encounter with the

global trading system. Tasked by Caribbean Community

(CARICOM) Governments, the RNM has primary responsibility

for coordinating and spearheading a cohesive, coherent

regional trade policy, both strategically and on technical issues

under negotiation. This entails developing and maintaining an

effective framework for the coordination and management of

the Caribbean Regions trade negotiating resources and

expertise, and undertaking/leading negotiations where

appropriate

Vision

The CRNM is the primary catalyst and agent of change leading

the process through which the Region maximizes the benefits

available from trade in the new, challenging, global economic

order.

Core Functions

1. To advise

2. To coordinate

3. To facilitate

4. To negotiate

| About the CRNM


8/47

Page | 2The EPA at a Glance

1

The Cotonou Agreement, signed in 2000, is a partnership

pact between the African, Caribbean and PacificGroup of States (ACP) and the Europe Community (EC).Its predecessor, the Lom Convention, originally signedin 1975 provided the framework within which traderelations and development cooperation between theAfrican, Caribbean and Pacific Group of States havebeen conducted with the European Union. The centre-piece of the trade relations has been non-reciprocalpreferential trade access for ACP goods into Europe. Thisarrangement provided access for some traditionalCaribbean exports such as sugar, rice and bananas aswell as other important commodities such as bauxite.

The Cotonou Agreement provided for the temporarycontinuation of Loms non-reciprocal tradepreferences as well as the negotiation of a successortrade framework based on WTO-compatible rules.

As part of the Uruguay Round and prior to the ending ofthe Lom Convention new rules had been negotiated togovern multilateral trade. Those rules are based onreciprocity in trade agreements and prohibitdiscrimination among developing states save inspecified circumstances.

As a consequence, the Cotonou Agreement with itsnon-reciprocal principle and preferential access forCaribbean (and other ACP) exports to Europe requiredspecial permission. After much difficulty a waiver wassecured from WTO members. The waiver request facedopposition from an international community opposed tonon-reciprocal trade agreements in general.Additionally, it was resisted by competitors in LatinAmerica, inter alia. Costly concession had to be made inorder to obtain the waiver in 2001. As with Cotonou theACP and EU also undertook to negotiate WTO-compatible alternatives, including EPAs. The

CARIFORUM-EC EPA is the first such agreement to benegotiated between the sub-regions of the ACP and theEurope Union.

| Background


9/47


1

The Economic Partnership Agreement or EPA is:

A reciprocal trade agreement between theCaribbean Group of States of the ACP andthe European Community (EC) designed toreplace the trade component of the CotonouAgreement, which was based on non-reciprocity.

A trade instrument with strong development

components.

To help CARIFORUM to enjoy a morepredictable market access to the EU for itstraditional exports. In the process that wouldhelp to encourage investment in traditionalexports.

Expected to provide new businessopportunities and scope to export a widerand more buoyant range of products andservices thereby increasing employment,labour skills rates of economic growth and

sustainable development.

Intended to reduce the cost of trading bymodernising and improving the regionsprocesses and procedures associated withimporting and exporting.

The negotiation of the Agreement wasconcluded on December 16, 2007.

| What is the EPA?


10/47


1

The preferential access of ACP countries forbananas, for example, into the EU has beenincreasingly and successfully challenged at the WTOby the United States of America and competing non-ACP WTO members such as Ecuador.

By replacing the Cotonou trade arrangement with aWTO-compatible EPA most of the remaining accessto European market will be preserved and othercountries will not be able to successfully challengethe ACPs privileged access.

In the absence of an EPA, all CARIFORUM countriesexcept Haiti would have had to resort to the lessfavourable European Generalized System ofPreferences (GSP) program. Under this system over257 of the regions exports would be taxed on entryto the EU thereby putting many of them including 8of the most important traditional exports out ofbusiness. In the case of Haiti, an LDC, the alternativewould have been the Everything but Arms (EBA)Initiative in the framework of the GSP. Although underthe EBA Haitis exports would be able to avoid thetariffs they would not enjoy the elements of the EPA

which pertain to rules of origin, support for innovationand assistance in access for services exports to theEU.

| Why an EPA?


11/47


1

On signature of the Agreement by Europe and eachof the participating CARIFORUM countries, the rightsand obligations under the Agreement would beconsidered legally binding. However, the rights andobligations would not take effect until one monthafter Europe and CARIFORUM notify each other oftheir respective administrative and legislativeadjustments necessary to implement the agreement.

However, until such time, Europe and CARIFORUMhave agreed to provisionally apply the EPA.

With effect from January 1 2008, therefore Caribbeanexports (except for two specific commodities) intothe EU enjoy duty free entry into the EU marketwithout quota restrictions.

| When will the EPA come into

effect?


12/47


1

Several fora were established to formulate regional

negotiating positions.

National and Regional Consultations: - entities

operating at national and regional levels

articulated their positions;

Technical Working Group (TWGs): - national and

regional interests were systematically

coordinated, harmonised and refined into

coherent regional negotiating positions.

Participating at this level were representatives of

governments, the private sector and Non-

governmental Organisations (NGOs);

The College of Negotiators: - The College

comprised representatives from regional

organizations, private individuals and

representatives of regional governments. It

formulated recommendations for an overall

negotiating strategy based on combined inputs

of the participating stakeholder groups;

CARICOM Council for Trade and Economic

Development (COTED) and the CARIFORUMCouncil of Ministers: - reviewed and considered

Colleges recommendations with the aim of

refining and approving the negotiating strategy;

CARICOM Heads of Government: - Provided final

authorization and approval of a mandate they

considered in alignment with the socio-political

and economic interests of the Community and

the individual Member States.

This process of review ensured, amongst other things,that the negotiating positions took account of the

interests of all Member States, including the Dominican

Republic. It was ensured that the positions were not at

variance with the agenda of the CARICOM integration

process as outlined in the Revised Treaty of

Chaguaramas.

| What was the

Negotiating Process?


13/47


Fig. 1.0 Illustration of the structure of the

Negotiating Process

To complement the formal consultation process at these

levels, a parallel process of consultation with regional

stakeholders, including the Private sector and Non-

Governmental Organizations (NGOs,) was also facilitated

and coordinated by the CRNM.


14/47


CARIFORUM Negotiators worked within the

following Negotiating Guidelines:

o Retain preferential access & minimizepreference erosion

o Minimize negative impact of liberalizationin all areas, particularly regarding LDCs;

o Maximize market access in goods to theEuropean market

o Improve services access, particularlywhere the Region can benefit in the short

term;

o Encourage in-coming investment that isenvironment-friendly

o Enhance CARIFORUM competitivenessand diversification through innovation

o Protect and stimulate Small and MediumEnterprises(SMEs)

o Promote regional integration, economiccooperation and good governance

o Conclude a trade agreement relevantand appropriate to CARIFORUM

development needs

o Seek additional funding for capacitybuilding, integration support, EPA

implementation.


15/47


1

Part I of the EPA Trade Partnership forSustainable Development

This opening section is very important because it:

sets the context of the provisions including therelationship between the EPA and the Cotonou;outlines the broad objectives and principles ofthe EPA;and presents the general terms of the tradepartnership between Europe and CARIFORUM.

What Stands Out

Objectives

The EPA as a trade agreement with developmentcomponents is designed to open up and enhancetrade between Europe and CARIFORUM by removingthe barriers to trade between them and by improvingCARIFORUMs capacity to trade competitively.Through enhanced open trade, it is anticipated thatthe EPA will:

Expand and improve CARIFORUMs industries

and economic growth by enablingCARIFORUM States to develop exports in

services and a wider range of goods in which

they have a comparative advantage;

Thereby expand employment and business

opportunities;

Provide improved opportunity for CARIFORUM

States to access from Europe at lower prices

goods and services in which they do not have

a comparative advantage;

Improve CARIFORUMs access to European

technology and technical know how;

Increase competition within CARIFORUMs

domestic markets caused by the increased

presence of European goods and services

and thereby improve efficiency in

CARIFORUM production processes;

Provide rules to ensure that trade between

CARIFORUM and Europe is fair and

accommodates the marked differences in

development between the two sides;

| Whats in the Provisions?


16/47


At the same time, ensure sustainability of

development by committing both

CARIFORUM and Europe to exercise

international best practices in trade thatprevent environmental degradation and the

undermining of labour standards, labour rights

and human rights.

Principles

The EPA is built upon the following principles of theCotonou:

Equality of the Partners and the ownership ofdevelopment process;

Participation;Regionalization;Special and differential treatment.

The EPA provisions contain the following trade principles:

Asymmetry;Cooperation and financial and non-financialdevelopment assistance from Europe;Reciprocity;Most Favoured Nation (MFN) tenet CARIFORUM andEurope are obliged to extend to each other benefits

granted to third parties;Fostering of regional integration;National treatment;Differentiation of treatment of CARICOM LDCs;Regional Preference.

Development Cooperation

For the EPA:

Development provisions are infused throughoutthe entire Agreement;Cooperation can take financial and non-financialforms;Financing pertaining to development is to becarried out in accordance with the rules andprocedures of the funding mechanisms under theCotonou Agreement.


17/47


Accessible Financial instruments for developmentinclude:

o The European Development Fund (EDF),specifically the10th EDF (2008-2013) whichprovides 165 million. This represents a108 million increase over the 9th EDF.

o Funding from the WTO Aid for Trade (AfT).Europe has pledged to provide additionalannual financial resources of 1 billion, perannum, by 2010 to AfT. The commitmentto make these funds available to financethe implementation of the EPA isreiterated in the EPAs Joint Declaration on

Development Cooperation.

o European Investment Bank (EIB) fromwhich 2 billion is available for investmentfinancing.

CARIFORUM States and Europe have agreed thatonce appropriate arrangements are in place forthe CARICOM Development Fund, it may be usedto channel and mobilize development supportresources from Europe to CARIFORUM.


18/47


Part II of the EPA Trade and TradeRelated Matters

This section of the EPA outlines how CARIFORUM andEurope are to cooperate to remove barriers to tradebetween them. It also addresses other related issuesthat affect the quality of trade and development.The section covers the following:

Trade in goods,Investment, Services and E-CommenceCurrent Payments and Capital MovementTrade Related Issues: Competition, Innovation andIntellectual Property, Public Procurement,

Environment, Social Aspects and Personal DataProtection.

Title 1: Trade in Goods

The Chapters that follow under Trade in Goods setout the terms under which trade betweenCARIFORUM and the European Community is to beopened up.

Chapter 1: Customs Duties

Brief Description: This Chapter outlines how tariffs onmost imports from both sides are to be reduced. In

keeping with the concept of special and differential

treatment of CARIFORUM States, CARIFORUM states

as a group are obliged to reduce tariffs, but not to

the same extent, or at the same pace as those to be

reduced by Europe. In addition, less onerous levels of

commitment have been allowed for CARICOM LDCs

which include the Members of the Organization of

Eastern Caribbean States and Haiti.


19/47


What Stands Out

Immediate duty-free/quota-free market accessfor all CARIFORUM goods. In the case of rice andsugar this will occur in 2010 and 2015,respectively, rather than immediately.

On the other hand, CARIFORUM is not obliged tobegin reducing its tariffs on items subject tophased reduction commitments, until 2011. This iswhat is referred to as the 3-year moratorium. Thisgroup of items includes products which eitherhave a high degree of revenue sensitivity or are

produced by domestic industries which require adegree of protection from the competition posedby imports.

Tariffs on sensitive goods, such as food items andprocessed food, imported into CARIFORUM willnot be removed. Altogether 13.1 % of suchproducts imported from Europe will continue toattract tariffs. These products makeup theExclusions List.

Tariffs are a significant source of revenue for

CARIFORUM States. CARIFORUM will, therefore, beallowed to reduce tariffs on products from the EUgradually in several Phases. This will allowCARIFORUM time to find alternative revenuesources and time for CARIFORUM industries toadjust to increased competition.

o In 2009 CARIFORUM will remove tariffs on52.8% of the goods imported from Europepursuant to the commitment to apply a zerorate of duty on these goods at this time. Therevenue impact on the CAREIFORUM Statesassociated with the liberalization of theseproducts will either be non-existent orrelatively minor, as prior to the conclusion ofthe EPA, most of these products alreadyfaced applied rates of zero percent or closeto zero percent;


20/47


o In five years from the date of application ofthe EPA (2013), CARIFORUM will remove tariffson 56% of the goods imported from Europe;

o In 10 years or by 2018, tariffs will be removedfrom 61.1 % of the goods imported fromEurope;

o In 15 years or by 2023, 82.7% will be liberalized;o In 20 years or by 2028, 84.6% will be liberalized;o In 25 years or by 2033, tariffs on the remaining

CARIFORUM products will be eliminated, andthis will take the total level of liberalization to86.9%.

The triggering of the Most Favoured Nation (MFN)principle. CARIFORUM or EU must discuss givingthe same terms to the other side if under a newFree Trade Agreement (FTAs) concluded after theEPA:

o Europe gives to a non-Cariforum countrymore advantageous terms than those in the

CARIFORUM-EC EPA.

o CARIFORUM States extend to a major tradingstate any treatment which is moreadvantageous than that offered to Europeunder the EPA.

Rules of Origin, which though based on thestructure and principles of those contained in theCotonou Agreement, are more relaxed to make iteasier for CARIFORUM producers goods to qualifyfor preferential treatment under the EPA. As wasthe case under the Cotonou Agreement, inputs

obtained from any CARIFORUM country, otherACP Countries (with some exceptions) and, undercertain conditions, neighboring developingcountries, will qualify as originating productsand so can be used in the production of finalgoods that will qualify for preferential treatment.


21/47


Chapter 2: Trade Defense Measures

Brief Description: This chapter outlines thecircumstances appropriate for either CARIFORUM or

Europe to impose temporary barriers to trade,

including tariffs. The barriers would be triggered if an

increase in imports from the trading partner causes

serious harm to certain industries or to the economy.

What Stands Out

Permitted use of Safeguards, which arebarriers to trade imposed temporarily toprevent injury to domestic industries by

imports :-

o In cases where increased imports fromthe other side as well as third state

sources are causing injury to a

domestic industry, the CARIFORUM

States and Europe can invoke the

WTO Safeguard Clause subject to the

terms and conditions of the Article XIX

of the General Agreement on Tariffs

and Trade (GATT);

o CARIFORUM States and Europe canhave resort to the use of a bilateralsafeguard mechanism created by theAgreement for a limited period of timein the event that the importation ofgoods causes or threatens to causeserious injury to domestic industries;sectoral disturbances that causemajor social problems; anddisturbances to agricultural markets ormechanisms that regulate those

markets. These safeguards are notsubject to the WTO dispute settlementprovisions.

Permitted use of Anti-Dumping Duties inaccordance with corresponding WTOprovisions. Anti-Dumping Duties are used inorder to prevent the unfair and predatorytrade practice of dumping.


22/47


The practice of dumping can involvedeliberately exporting a product at a price

below the cost of production in order todestroy the industry in the importing country.Controversially, it can also involve exportingproducts which have low export pricesbecause wages are exceptionally low orworking conditions are very poor.

In accordance with the WTO Agreement onSubsidies and Countervailing Measures,Countervailing Measures such as duties canbe employed to prevent unfair competitionbetween subsidized imports and competing

domestic products.

Chapter 3: Non-Tariff Barriers

Brief Description: This chapter addresses the reductionof the use of measures other than tariffs, such as

quotas and import or export licenses, which by way

of their application impede trade. It also ensures

there is no unfair competition between imports and

like domestic products within the domestic market.

What Stands Out

The EPA reaffirms the provisions of the GATT to theextent that discrimination against imports isprevented through the application of theNational Treatment (NT) principle:-

o No charges and internal taxes may beapplied to imports if they are not similarlyapplied to like domestic products;

o Regulations and laws affecting internal sale,offers for sale, purchase, transportation,distribution or use of a product, must beapplied to both the imports and similardomestic products;

o The application of the NT principle does notprevent a government from offering domesticsupport to national producers.


23/47


24/47


Financial and non-financial support toCARIFORUM to assist:

o Development of modern customs techniques;o Automation of customs and other trade

procedures;

o Compliance with relevant internationalstandards and regulations including WTOrules, the Kyoto Convention and the WorldCustoms Organization (WCO).

Chapter 5: Agriculture and Fisheries

Brief Description: The provisions here are aimed atencouraging the sustainable development of the

CARIFORUM agricultural and fisheries sector. The

provisions are also designed to improve CARIFORUM

food security, improve competitiveness and

innovation, and encourage the development of new

industries. In addition, there are provisions to help

shield CARIFORUMs sensitive traditional agricultural

exports from the effects of liberalization.

What Stands Out

Of the average annual value of imported EUagricultural and fisheries products for theperiod between 2002 and 2004, 75% willcontinue to attract tariffs.

EU commitment to eliminate duties on fishingvessels and other fisheries inputs used by

CARIFORUM

Financial and Non-financial tradedevelopment support:

o To improve the competitiveness of theCARIFORUM agricultural and fisheriessector;


25/47


o To promote investment fromprivate sources as well as fromprivate-public partnerships;

o For Cooperation and Dialogue.

Special arrangements for traditionalagricultural exports:-

o Europe is committed to consulting withCARIFORUM before policydevelopments take effect, and beforeany domestic, and or external policy

changes are made that would affectthe competitiveness of CARIFORUMexports.

Sugar

o From January 2008 until September 2009,CARIFORUM Sugar exports will be eligibleto export an additional 60,000 tonnes intoEurope. This quantity, which is above theSugar Protocol quota, is to be shared

between CARICOM signatories to theProtocol and with the DominicanRepublic. This additional quota isparticularly advantageous to largerCARIFORUM sugar producers which willnow be able to sell more at guaranteedprices.

o After September 2009, when the SugarProtocol expires, CARIFORUM sugarimported into Europe will be free of duty.

o However, between October 1, 2009 andSeptember 2015 Europe could still imposetariffs on CARIFORUM sugar exports. Itwould be able to do so if the quantitiesimported from the ACP as a wholeexceed 3.5 million tones and the amountfrom ACP countries which are not LDCsexceeds 1.38 million tonnes. Haiti will notbe subject to these measures.


26/47


Rice

oCARIFORUM Rice exporters will receiveincreased quotas of 187,000 tonnes for2008 and 250,000 tonnes for 2009. Thesequotas will be duty free in contrast to the65 per tonne duty that would haveapplied.

o Duty-free/quota free access for rice from2010

o Under the new arrangement there is nodistinction between whole grain andbroken rice. This makes it easier for

CARIFORUM rice producers to benefitfrom the higher priced market for wholegrain rice.

o Licensing and other arrangements relatedto the rice quota will be kept under reviewto ensure that CARIFORUM rice producersget the maximum benefit from the tradingarrangement.

Bananas

o Duty-free/quota free from inception of theEPA

o Joint Declaration on Bananas whichcommits EU to assist in funding theCARIFORUM banana industrys socio-economic adjustments to the changingtrading environment.

Fig. 2.0 This table illustrates the Major EU

Country Suppliers of Bananas


27/47


Chapter 6: Technical Barriers to Trade

Brief Description: This aspect of the Agreement isaimed at helping both CARIFORUM and Europe to

comply with each others mandatory standards. The

latter are related to the characteristics, processes

and production methods related to products which

are designed to protect human, animal and plant life

health or safety. At the same time, these provisions

help ensure that lack of information about such

standards does not unnecessarily impede trade

between CARIFORUM and Europe.

What Stands Out

Commitment to designate contact points tofacilitate the channelling and exchange ofinformation regarding technical regulations,standards and conformity assessmentprocedures as defined in the WTO TechnicalBarriers to Trade Agreement.

Financial and non-financial development

support to assist:

o Development of CARIFORUM centresof expertise for the assessment of

goods for the purpose of such goods

access into the EC market.

o The development of firms capacity tocomply with international regulatory

requirements.


28/47


Chapter 7: Sanitary and Phytosanitary (SPS)

Measures

Brief Description: Provisions under this Chapter outlinehow either CARIFORUM or Europe may use trade

restrictions designed to protect risks to humans,

animals or plants associated with disease, pests and

contaminants. At the same time, these provisions aim

to prevent unintended impediments to trade which

may come about because of these trade measures.

There are also inclusions in this chapter aimed to assist

CARIFORUM to comply with Europes Sanitary and

Phytosanitary Measures and to help CARIFORUM

States to better develop their own regionallyharmonized SPS measures.

What Stands Out

Commitment to cooperate in establishingharmonized SPS measures both in the EU andbetween CARIFORUM States;

Commitment to establish arrangements to

facilitate the recognition of equivalence ofspecified SPS measures;

Agreement that in the event that noharmonized SPS measures exist or there is norecognition of equivalence, CARIFORUM andEurope will consult on ways to facilitate tradeand reduce unnecessary administrativerequirements.


29/47


Title 2: Investment, Services & E-Commerce

The chapters under this section of the EPA contain

comprehensive provisions to facilitate and attractinvestment within CARIFORUM, to develop andimprove the CARIFORUM services sector, and toprovide common rules on e-commerce. Thesechapters are significant in that CARIFORUM andEurope have agreed for the first time to open uptheir services sectors and deal with investment policyunder a bilateral framework.

Chapter 2: Commercial Presence

Brief Description: This chapter addresses the wayeither CARIFORUM or European investors, andbusinesses established in either CARIFORUM States orin Europe are to be treated in order to facilitate tradein services and investment between the two parties.

What Stands Out

Investment

Most services sectors on each side have beenopened to investment. However, CARIFORUMand Europe have not made commitments toopen the following sectors to investment:-

o audio-visual services;o national (internal) maritime trade transport

and its regulation, and;o national and international air transport

services, whether scheduled or non-scheduled,

o production of or trade in arms, munitionsand war material;

o mining, manufacturing and processing ofnuclear materials;

o services directly related to the exercise oftraffic rights, other than:

i. aircraft repair and maintenanceservices during which an aircraft iswithdrawn from service;

ii. the selling and marketing of airtransport services;


30/47


iii. computer reservation system (CRS)services;

iv. other ancillary services that facilitatethe operation of air carriers, such asground handling services, rentalservices of aircraft with crew, andairport management services.

Discrimination against CARIFORUM Investorsoperating in the EU and European investorsoperating within CARIFORUM is prohibitedthrough the application of the NationalTreatment Principle:-

o CARIFORUM investors in Europemust be treated no worse thandomestic European investors

o European investors withinCARIFORUM must be treated noworse than domestic CARIFORUMinvestors.

Similar to what obtains under trade in goods,

there is a triggering of the Most Favoured

Nation (MFN) principle as a result of new Free

Trade Agreements (FTAs) with competing

countries.

The inclusion of rules to ensure that investors

safeguard the environment and maintain high

labour and occupational health and safety

standards.

The inclusion of rules that forbid investors from

engaging in corruption to obtain special

concessions.


31/47


Chapter 3: Cross Border Supply of Services

Brief Description: This chapter addresses the access

which CARIFORUM and Europe will provide to eachother in services which are traded across their

borders.

What Stands Out

CARIFORUM has access to over 90% of EU servicessectors.

CARIFORUM has opened up 50-75% of its keysectors to Europe in order to facilitate investment

and the transfer of technology to theseeconomically important sectors. These include:o Business serviceso Computer and computer related serviceso Research and Developmento Environmental serviceso Management consultancyo Maritime Transporto Entertainmento Tourism

Chapter 4: Temporary Presence of Natural

Persons for Business Purpose

Brief Description: In these provisions outline, market

access for independent CARIFORUM and European

professionals as well as professionals employed by

companies that have not established commercial

presence. The commitments offered here to

CARIFORUM are significantly more liberal than those

proposed by the Europeans in their WTO

commitments.

What Stands Out

29 European sectors have been opened up toallow professional employees of CARIFORUM firmsnot established in Europe or contractual servicesuppliers (CSS) to enter the EU to supply servicesfor up to 6 months.


32/47


All CSS except in the areas of fashion modelservices, chef de cuisine services, and

entertainment services must have professionalqualifications and must be UniversityGraduates;

Eleven (11) sectors have been opened up toallow self-employed CARIFORUM professionalsto enter the EU to supply services for up to 6months;

All self-employed professionals must haveprofessional qualifications and must beUniversity Graduates;

Visa requirements are not regulated by theEPA. Therefore CARIFORUM States and Europeare free to set and maintain all requirementsrelated to the administration of visas ;

Economic needs tests may apply but thereare no restrictions on the number of CSS thatmay enter the EU;

Short term entry of CARIFORUM businessvisitors into Europe to allow such businesspersons to engage in non-commercial

business activity such as networking andmaking business contacts, research,marketing and training.

Protocol on Cultural Cooperation tocomplement CARIFORUM market access in EURecreational services markets and to facilitategreater cooperation in the development ofcultural industries

The requirements agreed between the partiesconstitute a regularization of access procedures

and facilitate entry of CF professionals into the EU.Where the latter prefer to continue to use theold arrangements they may continues to do so.

Fig. 2.0 This diagram illustrat

Modes of Supply in Services

Trade


33/47


Chapter 5: Regulatory Framework

Brief Description:A regulatory framework is outlinedfor key sectors of particular development interest to

CARIFORUM and Europe.

What Stands Out

Specific disciplines and regulatory frameworksformulated for key sectors such as :

o Computing serviceso Courier serviceso Telecommunicationso Financial serviceso Tourism

Financial and non-financial developmentsupport to:

o Develop the capacity of CARIFORUMfirms

o Develop sectoral standards andregulatory regimes

o Build human resources withinCARIFORUM through training

o Develop equivalence of CARIFORUMskills and Mutual Recognition of skills


34/47


Chapter 6: E-Commerce

Brief Description: E-commerce, because it is

conducted using a globally accessible system such

as the internet, global trade is much accessible to a

wider potential consumer base. Therefore, e-

commerce can enhance and better enable trade

between CARIFORUM and Europe. Provisions in this

chapter outline the way CARIFORUM and Europe will

cooperate to promote e-commerce between them.

What Stands Out

Europe and CARIFORUM are to maintain

dialogue on issues related to the regulation of

e-commerce, including the recognition of

electronic signatures and the protection of

consumers in e-commerce


35/47


Title 3: Current Payments & Capital

Movement

Brief description: The chapters under this sectionillustrate the CARIFORUM and Europe agreement to

ease the process via which payments for commercial

transactions can be made and the process through

which capital related to investments is moved

between the two sides.

What Stands Out

CARIFORUM and Europe have agreed not toimpose restrictions on the free movement ofcapital related to direct investments;

CARIFORUM and Europe have the right toimplement preventative or precautionarymeasures for no more than six months in the eventthat current payments and capital movementcause or threaten to cause difficulties with theoperation of monetary policy or exchange ratepolicy.


36/47


Title 4: Trade-Related Issues

What Stands Out

These provisions are intended to complement and

support the EPA development foci. Rules on

Competition and transparency in government

procurement, for example, can send powerful and

positive signals to both investors and development

partners of CARIFORUMs commitment to engender

development in these areas.

Chapter 1: Competition

Brief Description: These provisions ensure thatcompetition is free from distortion and is fair. By so

doing the interest of both consumers and businesses

especially small business are protected.

What Stands Out

Rules against anti-competitive business practicessuch as the abuse of market power and

dominance, including the commitment toestablish legislation to prevent anti-competitivebusiness practices.

There are also provisions allowing the Parties, ifthey so desire, to cooperate (by sharinginformation etc) in the investigation of allegedanti-competitive practices.

Chapter 2: Innovation and Intellectual Property

Section 1: Innovation

Brief Description: These provisions are designed tohelp create an environment that fosters creativity

and innovation within the CARIFORUM States. The

creation of new products, marketing techniques and

business practices can lead to economic growth and

development.


37/47


What Stands Out

Development of CARIFORUM innovation systemsto develop and enhance the competitiveness ofCARIFORUM firms through technological transfer,research and development, and participation injoint ventures.

Section 2: Intellectual Property

Brief Description: The provisions under this section aim

to help create a suitable legislative and

administrative environment which will provide

protection of intellectual property.

What Stands Out

CARIFORUM and Europe agree to adequatelyimplement their obligations under agreementswhich address intellectual property to which theymay be signatory, such as the WTO TRIPSAgreement;

CARIFORUM LDCs are not obligated to apply theprovisions under the Intellectual Property section

until 2014;

Support to develop and enforce the protection ofintellectual property, including GeographicalIndications and traditional knowledge.

Chapter 3: Public Procurement

Brief Description: Under this Chapter Parties haveagreed to rules that would ensure relevant

information is freely disclosed in order to facilitate fairand acceptable processes in public tendering.

What Stands Out

Rules to facilitate transparency, enhancegovernance, and help prevent corruption anddiscrimination in public tendering processesrelated to the procurement of goods exceeding164,753;


38/47


Absence of any provisions that facilitate marketaccess;

The State retains capacity to determine criteria ofeligibility to tender for public contracts.

Chapter 4: Environment

Brief Description: These provisions are designed toassist the prevention of environmental degradation

as a result of trade.

What Stands Out

Provisions to prevent the degradation of theenvironment and to engender sustainabledevelopment;

Rights of CARIFORUM and Europe to regulateenvironmental protection in accordance withtheir own sustainable development prioritiesbut in a manner that does not cause arbitraryor unjustifiable discrimination against eachother;

The suspension of trade concessions to

enforce the provisions under this Chapter isnot permitted.

Chapter 5: Social Aspects

Brief Description: These provisions are indicative of theParties acknowledgment of the need to pursue trade

and the benefits of trade while preserving the

integrity of international labour standards.

What Stands Out

Reaffirmed commitment to ILO labour rights andstandards;

Prevention of the use of labour standards forprotectionist trade purposes;

The suspension of trade concessions to enforcethe provisions under this Chapter is not permitted


39/47


Chapter 6: Personal Data Protection

Brief Description: Principles and general rules havebeen established under these provisions which, when

applied, will help protect the fundamental rights and

freedoms of individuals from the CARIFORUM States

and Europe during data processing operations.

What Stands Out

Commitment to establish regulatory and legalregimes which are designed to facilitate thecollection and processing of personal data

especially with regard to services based on datatransfer whist ensuring the protection of privacy ofcustomers and transparency.

Financial and non-financial support to developCARIFORUM legal and regulatory regimes.


40/47


Part III of the EPA Dispute Avoidanceand Settlement

These provisions are designed to avoid and settle

disputes that may arise between Europe and

CARIFORUM.

Chapter 1: Arbitration Procedure

What Stands Out

Dispute resolution is facilitated within 3 tiers

o Consultationo Mediationo Arbitration

Chapter 2: Compliance

In the event that Europe becomes the successfulparty in a dispute, sanctions can only be imposedon the CARIFORUM State or States which havebeen found to be in breach of the EPA.

Europe must exercise restraint in imposing suchsanctions and in seeking trade compensationfrom the CARIFORUM States. There is nocorresponding CARIFORUM obligation.


41/47


Chapter 3: Common Provisions

What Stands Out

Dispute settlement provisions of the EPA arewithout prejudice to any action in the WTOframework, including dispute settlement action;

Where Europe or a CARIFORUM State has startedthe dispute settlement process with regard to aparticular issue under the Dispute settlementproceedings of either the EPA or the WTO, thatParty may not start new dispute settlement

proceedings elsewhere until the first proceedinghas come to an end.


42/47


Part IV of the EPA GeneralExceptions

These provisions stipulate the circumstances whereCARIFORUM or Europe may derogate from the rulesunder the EPA. Such derogations would only bepermitted if they would not qualify as arbitrary orunjustifiable discrimination against each other.

What Stands Out

The EPA does not prevent the implementation ofmeasures to protect:

o public morals,o public security,o human, plant or animal health and life

The EPA does not prevent the implementation ofnational measures by CARIFORUM or Europe toprevent tax evasion or tax avoidance.


43/47


Part IV of the EPA InstitutionalProvisions

These provisions facilitate the establishment of

institutions vested with specific responsibilitiesessential to ensuring that the objectives of the EPAare met. These institutions are parallel to the structureof Cotonou Institutional Provisions. In that sense theybreak no new legal ground or powers.

What Stands Out

The Joint CARIFORUM-EC Councilo Highest institutiono To meet at Ministerial level at regular intervals not

exceeding two yearso Vested with responsibility to supervise the

implementation of the EPAo May take decisions concerning any aspect of the

agreement as jointly agreed by CARIFORM and theEC.

The CARIFORUM-EC Trade and DevelopmentCommitteeo Second highest institutiono Assists the Joint CARIFORUM-EC Councilo Vested with specific responsibilities vital to ensuring

that all matters affecting the partnership areresolved in an expeditious manner and that thedevelopment dimension of the EPA is fulfilled

The CARIFORUM-EC Parliamentary Committeeo Comprised of representatives from the European

Parliament and the legislatures of the CARIFORUMStates

o Facilitates meeting and exchange of views ofthese representatives on the implementation of theEPA

The CARIFORUM-EC Consultative Committeeo Designed for the engagement of civil society in the

EPA implementation process.o Composition to be determined by Joint

CARIFORUM-EC Councilo This Committee facilitates a basic tenet of the

Cotonou Agreement and therefore the EPA whichis the facilitation of participation of different actorsother than the State in the Partnership.

None of these Institutions facilitate supra-nationalityor the ceding of sovereignty of the CARIFORUMStates or the EU. CARIFORUM and Europe have jointlyagreed to delegate authority on issues relatingspecifically to the implementation of the EPA to theseinstitutions.


44/47


Part VI of the EPA General and FinalProvisions

These provisions express final arrangements to befacilitated.

What Stands Out

CARIFORUM states are obliged to extend toeach other any advantage that is extendedto Europe:-

o With immediate effect betweenCARICOM and the DominicanRepublic on all duties attracting zero

rated duty;

o Within 1 year between MoreDeveloped Countries (MDCs) withinCARICOM and the DominicanRepublic on all other goods;

o Within 2 years between LessDeveloped Countries of CARICOM(LDC) within CARICOM and theDominican Republic on all othergoods;

o Not before 5 years for Haiti.

Market access and trade as covered in allareas under the Agreement are facilitatedbetween the Outermost Regions of Europe.

Possibility of revising the EPA in order to:

o include the Overseas Countries andTerritories (OCTs) associated with the

European Community;Within theRegion, the Overseas Countries and

Territories (OCTs) are:Anguilla,

Bermuda, the British Virgin Islands, the

Cayman Islands, Montserrat, and Turks

& Caicos (UK); French Guiana,

Guadeloupe, Martinique, and Saint

Martin (French); Aruba, Bonaire,

Curacao, Saba, Saint Eustatious

(Dutch)


45/47


o adjust to the pending expiration of the CotonouAgreement in 2020;o broaden and supplement the scope of the EPA.


46/47


| Notes


47/47

CCRRNNMM BBaarrbbaaddooss OOffffiiccee33rrdd FFlloooorr,, TThhee MMuuttuuaall BBuuiillddiinngg

HHaassttiinnggss MMaaiinn RRooaaddCChhrriisstt CChhuurrcchh,, BBAARRBBAADDOOSS

TTeell:: ++11((224466)) 443300--11667700FFaaxx:: ++11((224466)) 222288--99552288

EEmmaaiill::bbaarrbbaaddooss..ooffffiiccee@@ccrrnnmm..oorrgg

CCRRNNMM JJaammaaiiccaa OOffffiiccee

22nndd FFlloooorr,, JJAAMMPPRROO BBuuiillddiinngg1188 TTrraaffaallggaarrRRooaadd

KKiinnggssttoonn 1100,, JJAAMMAAIICCAA

TTeell:: ++11((887766)) 992277--55111144FFaaxx:: ++11((224466)) 997788--44336600

EEmmaaiill::jjaammaaiiccaa..ooffffiiccee@@ccrrnnmm..oorrgg

the cariforum-ec economic partnership agreement (epa) at a glance

Documents