Regional Media Workshop on the CARIFORUM – EU Economic Partnership

Agreement (EPA)

Regional Services and Investment implementation initiatives

Grenada

12-13 November, 2012 S. H. Allyson Francis

Trade in Services & Investment Specialist

EPA Implementation Unit, CARIFORUM Directorate

sfrancis@caricom.org

1

Outline

EPA Objectives Time lines

Regional Implementation Unit Setting the right environment Implementation Initiatives/Achievements Challenges Opportunities Next steps/way forward

The EPA

Objectives

Reduction & eventual eradication of poverty through trade partnership;

Promoting regional integration, economic cooperation and good governance;

Promoting the integration of CARIFORUM (CF) States into the world economy;

Support for increasing investment & private sector initiative; and

Strengthening relations taking into consideration levels of development and int’l obligations

Ratification

CARIFORUM

Antigua & Barbuda

Belize

Dominica

Dominican Republic

Guyana

EU

Malta - Greece

Slovakia - Denmark

Spain - Lithuania

Sweden - Italy

United Kingdom - Finland

Timelines

Upon signature – 20th October, 2008

Upon Provisional application 29 December, 2008

No later than six months after provisional application

Implementation Unit Unit Staff

Trade in Goods Specialists

Trade in Services and Investment Specialist

Legal Officer

Private Sector Specialist

Public Information and Education Specialist

Administrative Officer

Following the draft Road map

Development of a Regional work plan on implementation

All institutions except the consultative committee has been fully established

CARIFORUM-EC cooperation and regional CARIFORUM integration

Perspectives

Mandate

Facilitate implementation

Difference in Services trade

Setting the right environment

Policy & Regulatory framework

Role of the media

Raising awareness

Implementation initiatives/achievements

Aspects of the Regional Work Plan (Services & Investment)

Situational analysis conducted –basis for actions

Matrix developed, circulated and States consulted on

status of implementation, challenges faced, actions needed to meet requirements (Consider needs in legal framework, administrative policy, Institutional mechanisms/structure, human resources, training, equipment, organization, change management) and the estimated cost.

Facilitated the development of national work Plans

Monitoring and evaluation

Implementation initiatives/achievements

Draft National Serviced and Investment implementation plans Developed

Provide the basis for strategic national and regional initiatives

Regional Workshop conducted – drafts developed

Working with States to develop National EPA implementation plans

Policy framework to grant Market Access and National Treatment in selected areas developed - Tourism,

Financial Services, Maritime and Yachting, ICT, Education, Culture, hazardous waste and Health and Wellness developed

Developed work plan for funding under the 10th EDF

Analysis conducted to determine new areas of liberalisation under the EPA – may need to address many more sectors

Implementation initiatives/achievements (cont.)

Regional Preference addressed

Consultancy launched, report circulated. Meeting to be held 15-16 Nov

Facilitate regional integration

Relationship between CARICOM & the Dominican Republic (DR) –clarity to operators

Relationship with the Bahamas and Haiti

Draft agreement on Services and Investment between CARICOM and the DR

Implementation initiatives/achievements (cont.)

Advice given on the granting of Market access and National Treatment

Provided guidance to States for their analysis towards the developments of the requisite policy and legislation to grant MA and NT.

Conducted regulatory assessment in most CF States – MDCs -Information and Communication Technology Services, Transportation Services, Professional Services and Tourism.

Conducted Analysis of new sectors liberalised

Advice on Most Favored Nation Principle given

Train specialists to monitor other FTA and address granting AND receipt of MFN to service providers

Advice given during negotiations of CARICOM Canada Trade and Development Agreement

Actions taken on Architecture & Engineering

Mutual Recognition Agreements

Facilitate operations between EU and CF Architects, Engineers, Accountants and Tourism professionals

A mission to France, Belgium and the UK to promote interaction with architectural associations in Europe successfully organized;

Caribbean Architects Mutual Recognition Committee (CAMRAC) involvement within the negotiation of a strengthened MRA;

Improve the CARIFORUM architects capacity to develop inputs in view of the preparation of MRA negotiation;

.

Actions taken on Architecture & Engineering

MOU between the Architects’ Council of Europe (ACE) and Architects of CARIFORUM

the Caribbean Architects Mutual Recognition Agreement Committee (CAMRAC) was established to prepare and negotiate the MRA with Europe

CARIFORUM Engineers have formed a regional working group to coordinate internal preparations for discussions with counterparts

2010 projects - prospects for the negotiations of Mutual Recognition Agreements (MRA) of Professional Qualifications for Engineers as well as for Architects between the EU and CARIFORUM”.

Need to address regulatory differences between CF & EU

Institutional strengthening of CF professional assoc & registration bodies

Achievements/iniatives

Identification of specific actions required of CARIFORUM architects, regulatory agencies and Government to promote the integration of the profession in the region and to create the conditions for a successful negotiation and implementation of the results

Consultations undertaken with Caribbean Architect Mutual Recognition Agreement Committee (CAMRAC). Work plan discussed for national consultations

Facilitating national consultation – address the minimum criteria for the licensing and registration of architects which will form the basis of the Intra-Regional MRA, determine the most efficient way of generating the internal MRA and to review national legislation and policy matter.

Implementation initiatives and achievements

Article 74 Investment review undertaken

Provided States with better knowledge and understanding on investment issues in the EPA and what has to be done to better facilitate investment

Completed consultancy, report circulated, working with CAIPA on implementation of some of the findings

The EPA provides a comprehensive framework to improve the flow of investments between EU and CARIFORUM countries;

the EPA has not played a significant role to date in fulfilling its purposes;

There is little awareness of EPA - FDI tied advantages among the private sector in CARIFORUM countries and within the EU

EPA is an effective instrument of bilateral trade and investment between CARIFORUM and EU – lack of knowledge impacts

Implementation (cont.) Movement of Natural Persons –

Mechanism to address the ENT

Collection of data; thorough assessment of what policy is in place for temporary entry; and what labour market test is in place (national & regional)

Funding obtained through the OAS project to conduct analysis

Clarity on requirements for entry and access

Relationship with Revised Treaty of Chaguaramas

Determine issue with the EU

Effect given to the definitions & terms for Temporary presence

Areas for CSS and IP identified

Sensitization of all stakeholders on legal requirements for temporary movement

Training seminars with immigration & labour officials

Temporary Movement of Natural Persons

CARICOM Requirements

Establishment of the Competent Authority

Free Movement Committee

Free Movement of Skills Department/Desk

National Accreditation Body

Implement relevant procedures at point of entry

Domestic regulations vary in Member States;

Need for convergence;

Registration

Accreditation

Mutual recognition

Temporary Movement of Natural Persons

Not migration – can help to manage

Temporary - essential to provide assurances

Knowing unemployment rate

Skill set in States – what skills are needed - quotas

Certification procedures

Facilitating repatriation – collaboration with source countries

Visa requirements – screening/profiling where no visa req.

Benefits for specialisation, efficiency and competition

Compliments investment

Knowledge transfer

Brain drain

Wage disparities

Development of Modalities for Exchanges and Consultations on Tourism Services

In accordance with Article 118, the following modalities for the regular dialogue on Tourism matters between CARIFORUM and the EU were presented

CARIFORUM and the EU should undertake to relay information about any activity that falls under the areas of cooperation to the other side to enable appropriate action to be taken;

CARIFORUM and the EU should undertake to conduct biannual exchanges;

The forms of exchange should include –

Business-to-business (face-to-face) interactions;

Access to websites;

Notification of projects and activities;

Transmission of information through the national coordinators.

Development of Modalities for Exchanges and Consultations on Tourism Services

The forms and content of information exchange and consultation shall in particular be the matters listed below, but not limited to –

Sources of funding for tourism development;

Tourism, aviation and taxation;

The participation of CARIFORUM services suppliers in financing programs to support the sustainable development of tourism; Tourism, education and social development;

Undertaking joint CARIFORUM missions to attend trade fairs in Europe

Information and guidance to improve the industry’s environmental performance, both to reduce utilities costs and to become more attractive and competitive as a ‘green’ destination; The development of environmental and quality standards; Tourism, the environment and climate change;

Tourism initiatives

Environmental Management Certification Systems -

Reaping More Benefits for the Tourism Sector - develop recommendations and a detailed action plan for the implementation, of more cost effective and efficient environmental management certification systems, by the various tourism entities, taking into consideration the differing natural environments within and across Member States.

Development of internet marketing strategy for small and medium-sized tourism enterprises in

CARIFORUM States - increase global awareness of the

Caribbean tourism brand through impactful internet marketing initiatives, while also improving the revenue received by participating properties.

Cultural exchange & dialogue

The modalities should provide for -

Information exchange on key organisations to engage with including sources of financing for international projects and programmes;

The establishment of a helpdesk by CARIFORUM and the EU, respectively, that will be the central entity dealing with the development and dissemination of information; the help desk can serve as a Cultural portal and provide information on:

Market access requirements for all EU Member States for all services sectors, both legislation, non-legislative requirements;

Regulatory framework in place in each Member State for the provision of the service;

Access to business links will also allow for better exchange of best practices in areas such as technology and tools procurement;

Sector & product surveys:

Culture initiatives

Consultancy for the Development of a Mechanism for Streamlining the Registration of ARTISTS, Cultural practitioners AND ORGANISATIONS, taking into consideration the issues OF Classification and Certification - to develop a mechanism for streamlining the procedure for registration of artists, cultural workers and organisations by addressing in particular, the adoption by all CARICOM and CARIFORUM States to address the classification, certification and registration of these entities.

CARIFORUM Prospects in the EU Markets for Entertainment - develop an action plan and strategy to allow CARIFORUM to take advantage of the prospects in the EU markets for Entertainment and to enhance the sector’s competitiveness.

CHALLENGES

OPPORTUNITIES

Challenges

Absence of tax treaties to avoid double taxation Language Ignorance of cultural norms, customs and values Protectionist policies Meeting the right people Cost of travel Ignorance of the laws Residential status requirement in some EU States Absence of harmonisation and accreditation

between institutions in CF & the EU

Challenges

Private sector/general

Small size of firms

Lack of business operation in the EU

Unwillingness to collaborate

Need to change the mind set to exporting

Need to revise, implement & enforce required legislation

Lack of organization among practitioners

Lack of venture capital

Lack of standards & monitoring

Regional Challenges (Unit)

Lack of data

Delay in receipt of required information from Member States and sectors

No information on what is actually needed to inform assistance

Need for further targeted awareness building exercises to be identified

Lack of sufficient funding to execute identified projects. In addition if Member States are to identify projects for services and investment it will be difficult to guide them to sources of funding.

Regional Challenges (Unit)

Absence of harmonisation and accreditation between institutions in CF & the EU

Lack of adequate legislative and regulatory provisions particularly for the professionals

How do we assess the HR needs to develop an appropriate mechanism for conducting ENT

Opportunities

Openness to foreigners

Use of English

Access to other markets (Also the link between the FCORs and the mainland)

Pricing

Positive attitude towards joint ventures/partnerships

Diaspora populations

Implementation of the Agreement (developing projects, bidding on projects & project management)

Removal of the visa requirement for the FCORs

Access to the FCORS

Utilizing the expertise in the FCORS to meet standards to access the EU markets

Opportunities

• Special opportunity for joint ventures

Ability to add unique value-added

Some States in the region have resources and personnel to provide training in some areas

• Promoting investment to increase demand

• Real niche market due to unique value-added

• Development of Co-production agreements

• Joint ventures can facilitate operation in the sector

• Provision of specialized/expert advice

Country specific opportunities based on Biz Clim report for the CRNM

Estonia - society is relatively open, receptive to foreigners and partnerships; ability to penetrate nearby States such as Scandinavian and Baltic markets; good business linkages with persons from organisations that are prepared to facilitate matchmaking missions.

France - Somewhat closed to foreign service providers, the language and legal barriers opportunities based on lower costs – joint ventures using Mode 1 (using the internet to provide back office support) and Mode 4 (joint bids on short term contracts in the EU or the Caribbean). Good opportunities for tour operators and tour guides to provide tourism services to the Caribbean Diaspora living in the UK, Spain or The Netherlands

Country specific opportunities based on Biz Clim report for the CRNM

Germany - somewhat closed but is the largest economy in the EU; good command of English language very well; high cost society thus CF service providers to engage in partnerships which will reduce their costs e.g. in joint bids for contracts or providing support services through Mode 1 e.g. computer assisted drawings by architects and engineers or bookkeeping services for accountants

Italy - Reasonably receptive to foreign visitors and service providers; costs are higher than those in CF so these could be exploited in all of the selected industries e.g. providing back office support, tours to historical sites, etc.

Malta - Somewhat closed ,most businesses are very small family run operations and the market is very small. The Maltese Government is encouraging its business people to seek partnerships ; opportunity to penetrate North African markets; strong business linkages with persons from the selected industries that are prepared to facilitate matchmaking missions.

Country specific opportunities based on Biz Clim report for the CRNM

The Netherlands – Promotes diversity and not averse to joint ventures;Lowerr costs of service in Cariforum; willing to facilitate trade missions and matchmaking trips.

Spain – quite closed but opportunity for cost-based joint venture or carrying out back office and support services (using Mode 1).Spanish will be an asset.

The UK – Opportunities due to the diversity, the large Diaspora population living there, the historical connections, and the English language; relatively easy to establish business in the UK; can penetrate other EU markets; The Caribbean Diaspora in the UK remains relatively untapped by Caribbean services providers; cost advantages ; a U.K. trainer of trainers, funded by the EU, has conducted training courses on behalf of the Caribbean Tourism Organisation (CTO) for the Caribbean Tourist Guide industry

Way forward

Strategic plan – result oriented – EPA as a tool to development

What activities must be undertaken to implement the provisions

What you need to know about the EU & DR market

How the cooperation provisions can assist your development

Do you have the relevant laws & regulations in place

Is there the right environment for the efficient effect operation of your business

Do you have the necessary technology

Where is training required

How effective is the organizational structure

Way forward (cont.)

Implement the provisions of the CSME that will allow for the free movement of Service Suppliers; Registration, Certification, Recognition & MR

Developing and enhancing the environment for trade in Services

Determine the sectors of interest for exporting

Greater collaboration/coordination between Ministries and agencies

The role of the media

How do non-nationals operate in the market

Way forward (cont.)

Continue to work with States on the finalization of their work plans and the execution of projects highlighted therein.

Continue to work with national coordinators/implementation units to determine their needs

Continue to look for alternative sources of funding to execute plans at the national and regional level as identified in the work plans

Thank you

S. H. Allyson Francis

Trade in Services and Investment Specialist

Economic Partnership Agreement (EPA) Implementation Unit

sfrancis@caricom.org