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Information Kit

EEccoonnoommiicc PPaarrttnneerrsshhiipp AAggrreeeemmeenntt ((EEPPAA))



1



Table of Contents

Introduction to the CRNM ........................................................................................... p. 3

EPA Negotiations: An Overview .................................................................................p. 12

EPA Negotiations: Market Access in Goods ..............................................................p. 24

EPA Negotiations: Services & Investment .................................................................p. 34

EPA Negotiations: Trade-Related Issues ...................................................................p. 47

EPA Negotiations: Development in EPA ...................................................................p. 61

Cotonou Agreement: Art. 34-37 ....................................................................................p. 73

EPA Negotiations: CARIFORUM Offer - Levels of liberalization ............................p. 81

Comments by Jamaican Prime Minister ....................................................................p. 84

EPA: Highlights on Services & Investment ...............................................................p. 93

EPA: Achievements on Agriculture ............................................................................p. 97

EPA: Trade-Related Issues ...................................................................................... p. 101

EPA: Treatment of Tourism ..................................................................................... p. 106

EPA: Legal & Institutional Issues ............................................................................ p. 114

EPA: Treatment of Fisheries .................................................................................... p. 121

EPA: Rules of Origin ................................................................................................p. 124

EPA: Treatment of Professional Services ................................................................. p. 127

EPA: Provisions on Customs & Trade Facilitation ................................................. p. 135

EPA: Special & Differential Treatment .................................................................... p. 138

EPA: Public Procurement Chapter ............................................................................p. 148

EPA: Differentiation in the EPA ..............................................................................p. 159

EPA: Fact versus Fiction Series ................................................................................ p. 162

CRNM: EPA Guides .................................................................................................p. 173



CCRRNNMM GGeenneerraall BBrriieef f



About the CRN

Structure, Function &

Governance



18 February 2008 http://www.crnm.org

Background

Established in 1997 by the Caribbean Community(CARICOM) Governments, the Caribbean Regional

Negotiating Machinery (CRNM) is the principal

regional intergovernmental organization mediating

the Caribbean’s encounter with the global trading

system.

The CRNM has primary responsibility for

coordinating and spearheading a cohesive, coherent

regional trade policy, both strategically and ontechnical issues under negotiation.

2


Mandate

The CRNM is responsible for developing and maintaining acohesive and effective framework for the coordination andmanagement of the Caribbean’s external trade negotiatingresources and expertise.

Our mission is to help Member States maximize the benefits of

participating in global trade negotiations by:

Providing sound advice

Facilitating the generation of national and regional positions

Coordinating the formulation of a cohesive negotiating strategy

Leading negotiations where appropriate

3




Member States

The membership of the CRNM includes the followingcountries:

Antigua & Barbuda, Bahamas, Barbados, Belize,

Cuba, Dominica, Dominican Republic, Grenada,

Guyana, Haiti, Jamaica, St. Kitts & Nevis, St. Lucia,

St. Vincent & the Grenadines, Suriname, and

Trinidad & Tobago

4


Strategic FrameworkProgramme Activities and

Focus

Consultations and formulation of regional

negotiating positions: Ensuring maximum effectiveness

obtained from presence at negotiating arenas by facilitating the

involvement of national and regional resource groups/individuals in

the development of strategies through the use of InformationTechnology, convening of Reflection and Technical Working Groups

and preparation of technical papers.

Representation in negotiating forums: Ensure

that the region is present at the negotiating table so that its interests

are reflected in the content of agreements.

5




Strategic Framework

Programme Activities and

Focus cont’d

Building of regional negotiating capacity:Ensure technical capacity and trade negotiation skills are developed

and sustained in the region.

Research and studies: Enable provision of appropriate

advice on strategies to negotiating teams by identifying and

addressing knowledge gaps and needs through technical research

and analysis.

6


Strategic FrameworkProgramme Activities and

Focus cont’d

Resource mobilization and project

management: Strengthen technical and professional capacity

of the both CRNM and member states to effectively support the

negotiating teams by identifying needs and mobilizing human and

financial resources to achieve the region’s goals.

7




Negotiating Theatres

Currently, CRNM is involved on behalf of its member states in a packed agenda of trade negotiations, and is

engaged in its most formidable negotiations to date, both

in terms of scale and complexity.

The main negotiating theatres in which the Region is

simultaneously involved are: (i) World Trade

Organization (WTO); (ii) Economic Partnership

Agreement (EPAs) with The European Union; and (iii)

bilateral negotiations, which currently are primarilyfocused on negotiations with Canada.

8


Governance

• The governance structure established by the Heads

provides for reporting to the CARICOM Council for

Trade and Economic Development (COTED) which

provides CRNM with guidance and its negotiating

mandate. The Director General is also responsible to

the Caribbean Heads of government through the PrimeMinisterial Committee on External Negotiations.

• Financial Governance: CRNM has a finance committee

which comprises representatives of some member

states, a representative of the CARICOM Secretariat and

the CRNM Director General and Directors.

9




The CRNM Team

• The CRNM management team is comprised of: Director-General, as head of the organization, is responsible overall for the organization, a Senior Director with overarchingresponsibility for the technical work of the organisation, assistedby a Director, Technical; a Director, Technical Cooperation,Partnerships & Information responsible for relations with thedonor community and the overall management of grantagreements; and a Director, Finance and Administrationresponsible for budget finance and administration matters.

• The technical team comprises Caribbean Nationals who areexperts in the various issues which are the subject of thenegotiations .

• The College of Negotiators is made up of Regional Expertstogether with CRNM technical staff, who serve as either Lead or Alternate Negotiators

10


The CRNM Team Cont’d

• The CRNM is headquartered in Jamaica whose Prime

Minister holds Prime Ministerial responsibility within

CARICOM for External Negotiations. Barbados houses

the CRNM sub-office, and the CRNM also maintains a

presence in the Organisation of Eastern Caribbean

States (OECS) in St. Lucia, in the Cooperative Republicof Guyana, the Republic of Trinidad and Tobago,

Belgium and Switzerland.

• The work of the organization is supported by a small

team of technical and administrative staff.

11




CRNM Donor Support

• Canada – Canadian International Development Agency (CIDA)• Federal Republic of Germany - Deutsche Gesellschaft für

Technische Zusammenarbeit (GTZ)

• United Kingdom of Great Britain and Northern Ireland –

Department for International Development and Cooperation

(Caribbean) (DFIDC)

• United States of America – Agency for International

Development (USAID)

• Caribbean Development Bank (CDB)

• Commonwealth Secretariat (COMSEC)

• European Union (EU)• Inter American Development Bank (IDB)

• Ad hoc bilateral support

12


CRNM Partners – Indicative List

The CRNM also has working relationships inter-

alia with the following institutions:

CARICOM Secretariat

Association of Caribbean States (ACS)

Organisation of Eastern Caribbean States (OECS) University of the West Indies

Organization of American States (OAS)

United Nations Council Trade and Development (UNCTAD)

United Nations Economic Commission for Latin America and the

Caribbean (UN-ECLAC)

World Intellectual Property Organization (WIPO)

World Trade Organization (WTO)

13




For More Information

Please visit our Website:

http://www.crnm.org

Email: [email protected]

[email protected]



EEPPAA NNeeggoottiiaattiioonnss:: A Ann OOvveer r vvi i eew w – –

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p pr r ooccee s s s s



CRNM EPA Overview

Workshop for Regional Media

GBarbados * 15th February 2008

EU-CARIFORUM

Economic Partner

Agreement (EP

An OverviewIncluding: Mandate, Objectives, Organi

Process

Amb. Dr. Richard L. Bernal, OJDirector-General



CRNM EPA Overview



2

Presentation Outline

The Cotonou Mandate

EPA Negotiation Plan and Schedule

CARIFORUM Organisation

Negotiation Objectives

Overall Evaluation

CRNM EPA Overview



3

The Cotonou Partnership Ahe Cotonou Partnership Agreementreement(signed 23 June 2000)signed 23 June 2000)

Broad Objectives (Chap 1, Art. 34) include:

– Smooth and gradual integration into the world

economy

– Promote sustainable development,

– Contribute to poverty eradication

– States play a full part in international trade

– Cooperation to enhance production, supply and

trading capacity, as well as capacity to attract

investment



CRNM EPA Overview



4

The Cotonou Partnershiphe Cotonou Partnership

Principles (Chap 1, Art. 35): – “A true, strengthened and strategic partnership” to promote

development, building on previous ACP-EC Conventions

– Trade development measures to promote competitiveness

– Build on regional integration process as a key instrument for

integration into world economy

– Take account of different needs and levels of development of ACP

countries and regions

– Ensure S&D for all ACP countries and special treatment for LDCs

taking due account of the vulnerability of small, landlocked and

island countries i.e., asymmetrical commitments

CRNM EPA Overview



5

Cotonou Provisionsotonou Provisions

New Trading Arrangements (Chap 2, Art. 36 & 37)

– Conclude new WTO compatible trading arrangements, removing

progressively barriers to trade between them and enhancing

cooperation in all areas relevant to trade

– NTAs to be introduced gradually; recognition of need for a

preparatory period ending on 31 December 2007 during which

non-reciprocal preferences are maintained

– Agree on the need to review commodity protocols



CRNM EPA Overview



6

Cotonou Provisionsotonou Provisions

Negotiations to start September 2002 New trading arrangement to enter into force on 1

January 2008

Regional configurations to be agreed

Caribbean (and other ACP regions) aim to negotiatean EPA

LDCs have EBA option

Non-LDCs could seek alternative to EPA All-ACP Phase - no negotiations

CRNM EPA Overview



7

Why finish on time?1. Expiration of GATT Article 1 waiver Dec. 31, 2007;

2. Without EPA, GSP or MFN would hurt traditional sectors andresult in job losses (only Haiti would get EBA as an LDC);

3. Cotonou trade protocol would have to be renegotiated;

4. Even if 3 above happened, WTO members would be hostile torenewing a waiver for ACP;

5. Interim agreements were inferior to comprehensive agreementsas market access leverage would be lost;

6. Getting first mover advantage, and extracting more concessionsfrom EU



CRNM EPA Overview



8

CARIFORUM-EC Negotiations

CARIFORUM-EC negotiations launched in Kingston,

April 2004 Plan and Schedule for EPA agreed

Four negotiating groups – Market Access (Goods)

– Services and Investment

– Trade-related Issues (TRI)

– Legal and Institutional Issues

Four Phases

Three levels of negotiation: Ministerial, PrincipalNegotiators and Technical

CRNM EPA Overview



9

CARIFORUM Organisation

Training of officials and others Regional coordination

– TWGs – Ministerial (COTED and other) – Heads of Government

Consultations: national and sectoral Non-official Stakeholders

– private sector engagement – civil society (NGOs, media, trade unions, academia,

parliamentarians, etc.)

College of Negotiators



CRNM EPA Overview



10


CARIFORUM objectives include – Minimise negative impact of liberalisation in all

areas, particularly regarding LDCs;

– Maximise market access in goods,

– Retain preferences & minimize preference erosion

– Improve services access, particularly where the

Region can benefit in the short term; – Encourage investment that is environment-friendly

CRNM EPA Overview



11


Enhance competitiveness and diversification throughinnovation

Protect and stimulate SMEs

Promote regional integration, economic cooperationand good governance

Conclude a modern trade agreement

Keep subjects manageable avoiding politically or economically unacceptable ones

Secure additional funding for capacity building,

integration support, EPA implementation, etc.



CRNM EPA Overview



12


EC stated objectives – Foster regional integration conceived as single

economic space

– Market building purpose

– Non-commercial ambition

– Reciprocity expected even for LDCs in EPA

– Continued support for CF development priorities

CRNM EPA Overview



13

Issue Areas/Concernsssue Areas/Concerns

CARIFORUM issues/concerns

DR, Haiti and The Bahamas within CARIFORUM andCARICOM constructs

Region-to-region agreement; – CF two-tiered integration reality;

– EC’s regional integration ambition exceeds Region’s stated ambition

• Single economic space,

• free circulation,

• common institutions

– Parties to EPA;

WTO compatibility (Market access & Services)



CRNM EPA Overview



14

Issue Areas/Concernsssue Areas/Concerns

Non-reciprocity and CARICOM LDCs & Haiti Dominance of revenue concern

Relationship between concessions granted tothe EC and intra-CF concessions: Regionalpreference;

MFN demand re industrialised countries and

major developing countries ACP solidarity & coordination

CRNM EPA Overview



15

Overall Evaluation

Achievements – Adequate technical preparation and stakeholder

consultation

– The Region has kept together: Intra-regional coordinationa major challenge

– Negotiators did a good job: they could do nothing without MS approval; mandates often inflexible

– CF completed a full EPA – the only region so far - and within mandated timeframe

– Objectives achieved (subject-wise, balance, asymmetry and most of all developmental)



CRNM EPA Overview



16

Overall Evaluation

Precedents for the Region and for negotiations:

– Subject comprehensiveness

– Reciprocity

– 25 years phasing of liberalisation

– Inclusion of moratorium

– Treatment of ODCs

– Best EU Services offer; the inclusion of entertainment;

address tourism concerns

CRNM EPA Overview



17

Overall Evaluation

Precedents (continued):

– Treatment of Innovation

– Transparency without market access in GP

– Treatment of development

High cost of no-EPA avoided: GSP and MFN

Influence on future negotiations



CRNM EPA Overview



18

Overall Evaluation

Areas for Improvement – Greater consultation with certain categories of

stakeholders

– Generally weak stakeholder responsiveness to queries

– Insufficient information dissemination

– Member states not doing their homework occasioning

delays in the coordination process

– Insufficient inter-ministerial coordination at national level

CRNM EPA Overview



19

What lies ahead?

Public relations aspect: private sector, civil society reactions

Signature, provisional application and ratification,entry into force

Implementation challenges

Economic reform agendas

EC to deliver on commitments (effective and timely aid delivery)

Monitoring of implementation and impact



CRNM EPA Overview



20

Conclusion

If the EPA is to reduce poverty: – The private sector must seize opportunities;

– Governments should use the security of EPA aggressively toattract investment;

– The region should utilise the EPA to further regional integration;and

– EC funding should be forthcoming on a timely basis;

Thank you

CRNM EPA Overview



21

Thank You


http://www.crnm.org

Contact:Amb. Dr. Richard L. Bernal, OJ

[email protected]

Tel: +1876 946 2329 Fax: +1876 978 4360



EEPPAA NNeeggoottiiaattiioonnss:: M M aar r k k eet t A Accccee s s s s i i nn

G G ooood d s s



CRNM EPA Overview Workshop

for Regional Media

Barbados * 15th February 2008

EU-CARIFORUM

Economic Partner

Agreement (EPA

Market Access In Goo

Henry S. GillSenior Director




for Regional Media


2

AGENDA

1. NEW TRADING ARRANGEMENTS IN COTONOU

2. CARIFORUM NEGOTIATING OBJECTIVES

3. ADDITIONAL ISSUE AREAS/CONCERNS

4. WHAT ACCESS DID CARIFORUM OBTAIN?

5. WHAT ACCESS DID CARIFORUM GIVE?

6. DEVELOPMENT COOPERATION SUPPORT

7. DID CARIFORUM GET A GOOD DEAL?


for Regional Media


3

1. NEW TRADING ARRANGEMENTS

Title 2, Chapter 2, Articles 36 & 37

• Agree to conclude new WTO compatible trading

arrangements, removing progressively barriers to trade

between them and enhancing cooperation in all areas

relevant to trade

– From non-reciprocal preferences to reciprocity

– WTO requirement: “Substantially all trade” (SAT)• How much? Around 90% of two-way trade

• How soon? 10-12 years

– Development cooperation

– Scope of NTAs




for Regional Media


4


• The Parties agree that the NTAs shall be introduced gradually andrecognise the need, therefore, for a preparatory period ….which shall

end by 31 December 2007… during which the non-reciprocal

preferences shall be maintained

– ‘Preparatory period’ for:

• “Economic partnership agreements shall be negotiated” startingSeptember 2002

• Capacity-building in the public and private sector, includingmeasures to enhance competitiveness, for strengthening regionalorganisation and for support to regional integration initiatives, etc.

– ‘Gradually’ means:

• Roll-over of Lomé preferences under Cotonou until 31 December 2007

• Reciprocity kicks in gradually after that date


for Regional Media


5


• “Negotiations shall aim notably at establishing the timetable

for the progressive removal of barriers to trade between the

Parties, in accordance with the relevant WTO rules”

• “Negotiations shall taken account of the level of development

and the socio-economic impact of trade measures on ACP

countries, and their capacity to adapt and adjust their economies to the liberalisation process…

• Parties agree on the need to review commodity protocols in the

context of NTAs, in particular as regards their compatibility

with WTO rules

• NTAs to enter into force January 1, 2008




for Regional Media


6

2. CARIFORUM NEGOTIATING OBJECTIVES

– Maximise market access in goods through removal of tariffs and quotas

– Retain preferences & minimize preference erosion

– Remove non-tariff blockages

– Minimise negative impact of liberalisation/opening on

• Production and particularly SMEs

• Employment

• Tariff revenue & ODC concerns

• Food security concerns

• Rural livelihood and rural development

– Secure additional funding for capacity building, integrationsupport, EPA implementation, etc.


for Regional Media


7

3. OTHER CARIFORUM ISSUES & CONCERNS

• DR, Haiti and The Bahamas within CARIFORUM

and CARICOM constructs

• Non-reciprocity and CARICOM LDCs & Haiti

• EC’s Regional Preference demand, that is, the

relationship between concessions granted to the EC

and intra-CF concessions

• EC’s MFN demand




for Regional Media


8


• Immediate DFQF access to EU market for all products

– DOMs special case

– rice and sugar two-year delays

• Improved rules of origin

• Sugar:

– Sugar Protocol (Caribbean quota 465,336 tonnes of total ACP quota of 1.4 million tonnes):

• EU Council denounced SP last Sept. effective 1 October 2009

• Quotas increased by 60,000 tonnes• Reallocation of shortfall on SP

– After Sept 2009: DFQF


for Regional Media


9


• Rice:

– Two years for DFQF to begin

– In 2008 and 2009 quota increases (29% and 72%,respectively) above present 145,000 tonnes:

– Tariff (65 euro per ton) removed immediately

– No distinction between broken rice and whole grain• Bananas:

– DFQF

– Joint Declaration on Bananas: commits funding for industry adjustments including diversification and addressing social impacts of NTAs




for Regional Media


10


• Zero for zero on export subsidies, i.e., EU eliminates

such subsidies on products that CF liberalises.

• However, CF allowed to keep such subsidies that it

applies in keeping with WTO rules.

• CF exports excluded from EC use of multilateral

safeguards


for Regional Media


11


• CF to liberalise at least 80% of imports

• CF liberalisation starts after 3 years, i.e. 2011

• Liberalisation commitments extend 25 years!

– In 2011: 52.8% of imports liberalised

– Within 5 years 2013: 56.0% liberalised

– Within 10 yrs 2018: 61.1% liberalised







for Regional Media


12


• CF excludes from liberalisation 13.1% of imports – 493 most sensitive items (6-digitlevel):

– Mainly agricultural and processed agricultural products, including meat and fishery products;

– Beverages and tobacco;

– Some chemicals, paints, soaps, apparel;

– Iron and steel products;

– Furniture, mattresses and other industrial products.


for Regional Media


13


• 10 yrs for cars and gasoline (convert to excisetax)

• Removal of ODCs: maintained over 7 yrs and phased out over next 3 yrs (EU assistance tax

reform)• However, two protections for CARIFORUM:

– Safeguard provision

• but no ‘special safeguard’ for Agriculture

– Balance of payments provision




for Regional Media


14

6. DEVELOPMENT COOPERATION SUPPORT:

Examples from Agriculture and Fisheries

• Improvement in the competitiveness of potentially viable production, includingdownstream processing through innovation, training, promotion of linkages andother support activities;

• Development of export marketing capabilities, including market research, as well asthe identification of options for the improvement of marketing infrastructure andtransportation, and the identification of financing and cooperation options for

producers and traders;

• Compliance quality standards relating to food production and marketing, includingstandards relating to environmentally and socially sound agricultural practices andorganic and non-genetically modified foods;

• Promotion of private investment and public-private partnerships in potentiallyviable production;

• Improvement in the ability of CARIFORUM operators to comply with national,regional and international technical, health and quality standards for fish and fish

products;• Building or strengthening the scientific and technical human and institutional

capability at regional level for sustainable trade in fisheries products, includingaquaculture


for Regional Media


15

7. IS IT A GOOD DEAL?

• Is market access assymetrical? Could it be more so?

• Is our liberalisation gradual taking account of CARIFORUM sensitivities & vulnerability?

• Could we have got any more market access?

• Have our development priorities been catered to?

• What is the alternative to EPA?

– GSP and MFN access

• Current status: Agreement not yet in force or evenapplied provisionally but CARIFORUM alreadyenjoys EPA access as of January 1, 2008




for Regional Media


16

Thank You


http://www.crnm.org

Contact:Henry S. Gill

[email protected]

Tel: +1246 430 1670 Fax: +1246 228 9528



EEPPAA NNeeggoottiiaattiioonnss:: S S eer r vvi i ccee s s aannd d

I I nnvvee s st t mmeennt t




for Regional Media


EU-CARIFORUM

Economic Partner

Agreement (EP

An OverviewServices & Investment

Ramesh ChaitooHead, Services Trade Unit




for Regional Media


2

Basic Structure of S& I

provisions

1. Rules or disciplines on Services &Investment

2. Market access commitments (Schedules)

3. Protocol on Cultural cooperation

4. Link with other parts of EPA


for Regional Media


3

Preparatory work

• Decided on CF market access interests

• Very long and tedious process - national &regional consultations, ministerials, sectoralgroups, etc.

• CRNM recommended that countries identify:

(i) Sectors in which they need investment &efficiencies to promote development

(ii) Sectors with offensive market accessinterests in the EU

(iii) Sensitive sectors




for Regional Media


4

Cariforum Broad objectives

• Get improved market access in EU & support

to improve export capacity in services• Preserve the space for Caribbean countries to

continue to promote their own nationalprocesses of economic development

• EPA Services negotiations must take intoaccount and be guided by the internalregional integration process amongCaribbean countries & reflect the particular

sensitivities and needs of individual countriesand/ sub-groupings within the Caribbean.


for Regional Media


5

Cariforum ServicesObjectives

• Professional services, tourism

• Entry for Short term Visitors for BusinessPurposes & Mode 4

• Market access for cultural industries in spite of EC sensitivities - Cultural protocol

• Development support for dealing with:

Information asymmetries, EU regulatoryregimes, interface with EC firms, capacitybuilding, etc.




for Regional Media


6

EU Main interests

• Big infrastructural services - finance,maritime transport, computer and related,environmental

• Commercial Presence (Mode 3) inparticular & key personnel

• Meet WTO rules and scrutiny

• Did not make formal requests for market

opening by CF


for Regional Media


7

Key Points

• Services supplied by government

excluded

• Subsidies not covered by Agreement

• Government free to regulate

• Government procurement not covered

• Immigration policies & procedures not

covered




for Regional Media


8

Structure of Services &

Investment Title

• Chap 1 - General provisions• Chap 2 - Commercial Presence

(Investment)

• Chap 3 - Cross Border Supply of services

• Chap 4 - Temporary Presence of Natural

Persons for Business Purpose

• Chap 5 - Regulatory Framework (withsectoral rules)


for Regional Media


9

Sectoral provisions

• Computer

• Courier

• Telecoms

• Financial services

• Maritime transport

• Tourism

6. E-commerce

7. Cooperation




for Regional Media


10

Investment Interests

• Address the declining interest of EU firms inCaribbean by a new complete framework

• CF wanted comprehensive Investment

provisions: EC had limited mandate

• Create a regime for investment & trade in EPA

to attract EU & 3rd country firms to CF states

• Eliminate the need to negotiate new bilateral

investment treaties


for Regional Media


11

Investment Rules

• Market access

• National Treatment and MFN

• Excludes - nuclear materials; arms; audiovisual;cabotage; air traffic rights

• Forbids corruption by investors

• Maintains core labour standards• Safeguard the environment

• Forbids lowering of environmental, labour or occupational health & safety standards to attractinvestment




for Regional Media


12

Market Access for

investment• EC - commitments very broad and deep except

for a few sectors such as energy, health,education

• EC - limitations on landholding, and other restrictions in mainly new Members

• CF - commitments in manufacturing, mining, etcbut limitations re landholding, type of corporateentity, SMEs, etc.

• CF - Reservations in agriculture, forestry,fishing, mining, food & beverage, furniture, insome states; Only Dominican Republicliberalized electricity & gas


for Regional Media


13

Rules on Services

• Mainly GATS approach

• National Treatment, MFN

• Similar exclusions of sectors as investment chapter

• Mutual recognition of qualifications

• Special categories of natural persons for temporaryentry: – Key personnel (managers, specialists) & graduate trainees

– Business services sellers

– Contractual services suppliers

– Independent professionals

– Short term visitors for business purposes




for Regional Media


14

Short term visitors for

business purposes

EC and CF states to facilitate temporaryentry for the following activities for up to 90days: – Research & design

– Marketing

– Training seminars

– Trade fairs and exhibitions

– Sales & purchasing

– Tourism personnel


for Regional Media


15

Services Market AccessGranted

• CF - Positive list for services commitments likeGATS template; limited sectoral coverage to60-75% of services sectors. (Dom Rep is 90%). Some opening in the future. Very limitedMode 4 commitments.

• EC - Different structure but positive list

• Very broad sectoral coverage - more than 90%; much greater access granted for Mode 4 toCF suppliers than in WTO; Limitations in newmember states & starting in 2011 & 2014




for Regional Media


18

Entertainment Services

CPC 9619 Entertainment services (other than audio-visual)96191 Theatrical producer, singer group, band and

orchestra entertainment services

96192 Services provided by authors, composers, sculptors,

entertainers and other individual artists

96193 Ancillary theatrical services n.e.c.

96194 Circus, amusement park and similar attraction

services

96195 Ballroom, discotheque and dance instructor

services

96199 Other entertainment services n.e.c.


for Regional Media


19

Temporary entry access for CFContractual Service Suppliers (CSS)

in 29 sectors in EU1. Legal advisory services in respect of international public law and foreign

law

2. Accounting and bookkeeping services

3. Taxation advisory services

4. Architectural services

5. Urban planning and landscape architecture services

6. Engineering services7. Integrated Engineering services

8. Medical and dental services

9. Veterinary services

10. Midwives services

11. Services provided by nurses, physiotherapists and paramedical personnel

12. Computer and related services

13. Research and development services




for Regional Media


20

Temporary Entry for CSS in EU

14. Advertising services

15. Market Research and Opinion Polling

16. Management consulting services

17. Services related to management consulting

18. Technical testing and analysis services

19. Related scientific and technical consulting services

20. Maintenance and repair of equipment

21. Chef de cuisine services

22. Fashion model services

23. Translation and interpretation services

24. Site investigation work

25. Higher education services (only privately-funded services)

26. Environmental services

27. Travel agencies and tour operators' services

28. Tourist guides services

29. Entertainment services other than audiovisual services


for Regional Media


21

Access for Independent

Professionals in EU1. Legal advisory services in respect of international public law

and foreign law (i.e. non-EU law)

2. Architectural services

3. Urban planning and landscape architecture services

4. Engineering services

5. Integrated Engineering services

6. Computer and related services

7. Research and development services

8. Market Research and Opinion Polling

9. Management consulting services

10. Services related to management consulting

11. Translation and interpretation services




for Regional Media


22

Technical Cooperation

• Improve ability of CF suppliers to meetregulations and standards in EU

• Improve export capacity of CF suppliers (culture,tourism, SMEs, MRAs)

• Interaction & dialogue between CF and EC firms

• Address quality and standards in CF

• Develop & implement regulatory regimes

• Establish mechanisms for promoting investment

& joint ventures• Other activities


for Regional Media


23

Thank You


http://www.crnm.org

Contact:Ramesh Chaitoo

[email protected]

Tel: +1246 430 1670 Fax: +1246 228 9528



EEPPAA NNeeggoottiiaattiioonnss:: T T r r aad d ee R Reel l aat t eed d I I s s s suuee s s

– – i i nnccl l uud d i i nn g g :: g g oovveer r nnmmeennt t p pr r ooccuur r eemmeennt t , ,

i i nnnnoovvaat t i i oonn && i i nnt t eel l l l eecct t uuaal l p pr r oo p peer r t t y y




for Regional Media


EU-CARIFORUM

Economic Partner

Agreement (EP

Trade Related IssueIncluding: Government Procurement, In

& Intellectual Property

Malcolm SpenceSenior Coordinator

Intellectual Property, Science and Technology




for Regional Media


OVERVIEW

PART II, TITLE IV (Six Chapters)

COMPETITION

INNOVATION AND INTELLECTUAL

PROPERTY

PUBLIC PROCUREMENT

ENVIRONMENT

SOCIAL ASPECTS

PROTECTION OF PERSONAL DATA


for Regional Media


COMPETITION

Targets anti-competitive collusion and abuse

of dominant market position through

information exchange and enforcement

collaboration




for Regional Media


COMPETITION

Provides for support over 5 year institutional

capacity building transition period and 6 years

confidence building collaboration


for Regional Media


COMPETITION

Recognises CARIFORUM “variable

geometry” integration commitments (e.g.

CSME)

Shelters public enterprises and other

monopolies where necessary but promotes

their withdrawal from discriminatory

participation in competitive markets




for Regional Media


INNOVATION AND

INTELLECTUAL PROPERTY

Recognises relationship between level of

development, innovation system capacity and

level of protection of intellectual property

Allows for the participation of CARIFORUM

in EU framework programmes, specific

programmes and other activities


for Regional Media


INNOVATION AND


Assures that nothing in this Agreement shall

be construed as to impair the promotion of

access to medicines

Provides for the protection of traditional

knowledge and equitable benefit sharing from

its use




for Regional Media


INNOVATION AND


Provides for priority cooperation in:

Competitiveness and Innovation

Science and Technology

Information and Communications Technology

Eco-innovation and Renewable Energy


for Regional Media


INNOVATION AND



Reinforcement of Regional initiatives in

Intellectual Property Rights

Preparation of National laws and support for

National institutions in order to facilitate

meeting the obligations undertaken




for Regional Media


INNOVATION AND



Identifying and protecting products using

Geographical indications, particularly where

GIs would protect local traditional knowledge

and biodiversity

The development by trade or professionalassociations of codes of conduct


for Regional Media


INNOVATION AND


Provides a 6/7 year transition period for the

Intellectual Property obligations, with the

possibility of extension taking into account the

development priorities and level of

development in CARIFORUM




for Regional Media


INNOVATION AND


Provides a 13/14 year transition period for

Haiti as an LDC with the possibility of

extension taking into account decisions in the

WTO

Encourages the transfer of technology from the

EU to CARIFORUM

Encourages continued regional integration


for Regional Media


INNOVATION AND


Improves protection of digital content and

facilitates access and delivery of licences

Improves the protection for Geographical

Indications for products other than wines and

spirits

Provides asymmetrical obligations concerning

patent Treaties




for Regional Media


INNOVATION AND


Facilitates the collection of evidence on

infringement and the enforcement of

Intellectual Property Rights


for Regional Media


PUBLIC PROCUREMENT

Provides that the public procurement process

be transparent when the sum involved

EXCEEDS:

130,000 SDRs for supplies

130,000 SDRs for services

5,000,000 SDRs for works




for Regional Media


PUBLIC PROCUREMENT

Provides an extensive list of exceptions, such as:

Land or existing buildings

Various financial services

Agricultural products for food aid

Programme material intended for broadcasting


for Regional Media


PUBLIC PROCUREMENT

An initial capacity building transition period of

2 years with a possible extension of 1 more

year for individual States

A transition period of 5 years for the Less

Developed Countries of CARICOM




for Regional Media


PUBLIC PROCUREMENT

Provides for cooperation in the creation of aregional on-line facility for the effective

dissemination of information on tendering

opportunities

If, in spite of this cooperation, the capacity still

does not exist at the end of the 2 year transition

period, it can be extended by a further 3 years


for Regional Media


PUBLIC PROCUREMENT

No commitment is undertaken to provide

Market Access




for Regional Media


ENVIRONMENT

Encourages the trade in goods and services beneficial to environment

Recognises the need to regulate trade to ensure

the achievement of a Party’s justifiable

sustainable development objectives

Recognises that CARIFORUM States might

need special measures


for Regional Media


ENVIRONMENT

Provides a consultative process that precedes

that of the Dispute Settlement Mechanism

Provides for cooperation in the development of

environmentally friendly CARIFORUM

products using CARIFORUM natural

resources

Provides for cooperation in public awareness




for Regional Media


SOCIAL ASPECTS

Encourages adherence to internationally

recognised core labour standards

Recognises the need to regulate trade to ensure

the achievement of a Party’s social cohesion

and development policies


for Regional Media


SOCIAL ASPECTS

Provides a consultative process that precedes

that of the Dispute Settlement Mechanism

Provides for cooperation in the development of measures for the promotion of Decent Work

Provides for cooperation in public awareness




for Regional Media


PROTECTION OF PERSONAL

DATA

Encourages the transborder flow of personal

data for processing by maintaining effective

data protection regimes

Recognises the importance of cooperation in

order to facilitate the development of

appropriate data protection regimes


for Regional Media


Thank You


http://www.crnm.org

Contact:Malcolm Spence

[email protected]

Tel: +1246 430 1670 Fax: +1246 228 9528



EEPPAA NNeeggoottiiaattiioonnss:: D Deevveel l oo p pmmeennt t i i nn t t hhee

E E P P A A



EU-CARIFORUM

Economic Partner

Agreement (EPA

EPA as a Development T

Carl B. GreenidgeDeputy Senior Director



OUTLINE

1. EPA and not EPA 2. The Development Issue in the Context of ACP EU

Relations

3. Caribbean Pre-occupations

4. Trade Instruments in Support of Development

5. The Caribbean ‘Situation’, 2008

6. What is so special about EPAs?

7. EPAs and Development

8. EPA a la Cariforum 9. The Search for Development in EPAs

10. Conclusions

11. Some useful references 2

EPA and Not EPA

• An EPA is only a FTA it is neither a

panacea nor a regional development plan

• In the discussions in the early days even

the Commission spoke of ‘flanking

measures’ meaning additional instruments

• Widespread acknowledgement of need for

supporting measures and a more efficient

EDF procedures and management

• In that sense the Cariforum EPA seeks to

be a ‘FTA plus’3



The Development Issue in

ACP-EU Relations

Lomé:‘man at the centre of development’ &

was mainly pre-occupied with assistance on

economic issues in context of ACP states

identification of development priorities:

• Production

• Export earnings problems arising from price

fluctuations and• downward secular price trends for their main

products – primary commodities4

5



The Development Issue in

ACP-EU Relations (cont.1)

• Related investment problems encountered• Also reflecting lack of structural diversification

and

• inadequate command of technological

change,low involvement in innovation and

technological change – ‘white magic’ era

• The challenge of industrialisation

– Infant industries

– LDLIDCs Production6

The Development Issue(cont 2)

Cotonou shared these concerns but reflected EU insistence on adding

their development concerns, and re-oriented cooperation towards:

• Strengthening the role of the market in ACP states at all levels in

enhancing efficiency and providing incentives

– entire section devoted to this

• Cementing Europe’s role as a global player in international

economic arena• Acknowledging dysfunctional role of many ACP Governments and

supporting the role of non-state actors

• Problem of humanitarian crises with and without war

• Putting ‘sustainability’ in development

• Enhancing Aid effectiveness

7



Caribbean pre-occupations

in development

• Small size and international trade – Inhibits economies of scale in production runs inter alia, but its

importance depends on the:

• characteristics of sector

• size of the product market

• & can be attenuated by access to int. mkts

• large markets improve prody

– If the available data is controlled for location, level of development and

incidence of petroleum, GDP growth in smaller states is better than that

of larger ones

– Reality is that smaller states are wealthier within and outside of the

Caribbean• Vulnerability

– for all the debate and fury over SIDs it is yet to find favour in a

meaningful way in WTO

• Diversification and new economic activities 8

Caribbean pre-occupationsin development (cont.)

– If the available data is controlled for location, level of

development and incidence of petroleum, GDP growth in smaller

states is better than that of larger ones

– Reality is that smaller states are wealthier within and outside of

the Caribbean

• Vulnerability – for all the debate and fury over SIDs it is yet to find favour in a

meaningful way in WTO

– Reason?

• New economic activities

– Significance of services in development process?

9



TRADE INSTRUMENTS IN

SUPPORT OF DEVELOPMENT

Lomé

• Non-reciprocal trade

agreement

• Support for Regional

Cooperation/Integration

• Compensatory Export

Stabilisation Scheme –

Stabex, Sysmin

• Project funding• LDLICs funding

• EIB, CTA, CDE

Cotonou

• Enhanced competitiveness

thru trade liberalisation

• Gradual integration into

international economic system

• MDGs and Good Governance

• Funds in support of regional

integration/cooperation

• Flex

• Programme funding

• LDLICs funding

• EIB, CTA, CDE

10

The Caribbean Situation, 2008

Background against which policy is to be implemented:

• Decline in output and productivity in many states

• Regional integration scheme not yet completed

• from FTA, to partial CU, to Common Market with Single

Economic Space

• Most rapid growth since 1998 is in inter-regional trade

• International trade environment characterized by:

• declining preferential margins

• low tolerance for preferential access

• Effects of CAP review

• Significance of services to region

• Political sensitivity of employment levels

11



What is So Special About EPAs?

• Times have changed – cynicism and morecritical observers

• Replacing a highly prized mechanism and

seeking to ensure no state is worse off –

EU Council promise

• Claims about trade development link

questioned

• Issues in question:

– Supply side constraints and how these are to

be lifted12

EPAs and Development

The philosophy

• Trade long seen as ‘engine of growth’ in context of

development of both US and recent East Asian Tigers.

Cotonou formalizes it in EPA.

• Central to neo-classic model – on which Bretton Woods

Consensus is based – is liberalised markets. The latter isthe basis for the efficient allocation of resources and as a

means of delivering competitiveness through increasing

private ownership, expanding exports and promoting

investments. In addition proposes:

– Modernisation

– Innovation

– Increased market access and

– Enhanced regional integration13



EPAs and Development (cont.)

Main features: – Regional approach to trade cooperation

– WTO-compatible and involving

• Asymmetrical reciprocity in return for

• Limited preferential access

– Aid for trade

14

EPA a la Cariforum

• Favourable scope, timing and extent of

market liberalisation

• Nature of links to funding

• Helpful treatment of services of special

interest to the region and

• Defensive regulatory framework

• Prominence of innovation and S&TD

support

15



The Search for Development

in EPAs

• Development dictates that RTAs shouldnot: – Limit economic policy space and opportunities available to

developing state signatories

– Require too liberal investment rules in exchange for inadequate

and primarily FDI

– Unfavourable balance between developing state obligations and

priorities

– Fail to include a ‘development chapter’

– Omit the inclusion of a monitoring mechanism

• Proposed benchmark study to look in addition at:

– MDGs

– Sustainable development goals

– Economic and social equity, especially poverty reduction 16

Conclusions

• Trade is but one policy instrument

• Development is multi-dimensional

• The context in which the Caribbean’s EPA is to be

implemented is one of frequent, and perhaps, rapid

change not least of all in international markets. The

challenge is therefore for the region to develop thecapacity to adjust significantly and with dispatch as

circumstances dictate

• Such adjustment will involve many areas, such as

effective social networking, in order to maximise limited

skills and quickly share and manage valuable,

sometimes specialised information expeditiously.17



Conclusions (cont)

• Trade policies alone cannot ensure development• Complementary policies will need to be consistently

pursued

• In absence of perfect foresight this trade framework will

also need to be modified and adjusted over time

• An ex ante review suggests that these concerns have

been largely met

• The real test is an empirical one and would require time

to determine. The gap between the two exercise will be a

test of whether Governments can implement policieswhen circumstances dictate

18

Some Useful References

• Alesina, A and Spolare, E (2003) The size of

nations. Cantab, MIT Press. pp 81-83.

• Byron, J & Lewis, P (2007) Formulating

sustainable development benchmarks for an

EU-Cariforum EPA: Caribbean perspectives.Sept. ICTSD and the APRODEV.

www.aprodev.net

• Easterly, W and Kraay, A (2000) Small states,

small problems? Income, growth, and volatility in

Small States. World Development . Vol. 28, #3.

pp2013-2027 19



Useful References (cont.)

• IBRD (2005) A time to choose: Caribbeandevelopment in the 21st century.

Washington, DC. April 12.

• Meyn, M Stephens, C (2007) ACP-EU

Partnership Agreements. Final report. ODI

for C.S. Nov.

• Van Reisen, M (2005) EU Global Player

• van Reisen, M (2001) Reform of EU

Development Policy.20



Workshop Background Document

Articles 34 to 37 of the Cotonou Agreement



TITLE II

ECONOMIC AND TRADE COOPERATION

CHAPTER 1

OBJECTIVES AND PRINCIPLES

ARTICLE 34

Objectives

1. Economic and trade cooperation shall aim at fostering the smooth and gradual integration of the

ACP States into the world economy, with due regard for their political choices and development

priorities, thereby promoting their sustainable development and contributing to poverty eradication

in the ACP countries.

2. The ultimate objective of economic and trade cooperation is to enable the ACP States to play a

full part in international trade. In this context, particular regard shall be had to the need for the

ACP States to participate actively in multilateral trade negotiations. Given the current level of

development of the ACP countries, economic and trade cooperation shall be directed at enabling the

ACP States to manage the challenges of globalisation and to adapt progressively to new conditions

of international trade thereby facilitating their transition to the liberalised global economy.



3. To this end economic and trade cooperation shall aim at enhancing the production, supply and

trading capacity of the ACP countries as well as their capacity to attract investment. It shall further

aim at creating a new trading dynamic between the Parties, at strengthening the ACP countries trade

and investment policies and at improving the ACP countries’ capacity to handle all issues related to

trade.

4. Economic and trade cooperation shall be implemented in full conformity with the provisions of

the WTO, including special and differential treatment, taking account of the Parties’ mutual interests

and their respective levels of development.

ARTICLE 35

Principles

1. Economic and trade cooperation shall be based on a true, strengthened and strategic partnership.

It shall further be based on a comprehensive approach which builds on the strengths and

achievements of the previous ACP-EC Conventions, using all means available to achieve the

objectives set out above by addressing supply and demand side constraints. In this context,

particular regard shall be had to trade development measures as a means of enhancing ACP States’

competitiveness. Appropriate weight shall therefore be given to trade development within the

ACP States’ development strategies, which the Community shall support.

2. Economic and trade cooperation shall build on regional integration initiatives of ACP States,

bearing in mind that regional integration is a key instrument for the integration of ACP countries

into the world economy.



3. Economic and trade cooperation shall take account of the different needs and levels of

development of the ACP countries and regions. In this context, the Parties reaffirm their attachment

to ensuring special and differential treatment for all ACP countries and to maintaining special

treatment for ACP LDCs and to taking due account of the vulnerability of small, landlocked and

island countries.

CHAPTER 2

NEW TRADING ARRANGEMENTS

ARTICLE 36

Modalities

1. In view of the objectives and principles set out above, the Parties agree to conclude new World

Trade Organisation (WTO) compatible trading arrangements, removing progressively barriers to

trade between them and enhancing cooperation in all areas relevant to trade.

2. The Parties agree that the new trading arrangements shall be introduced gradually and recognise

the need, therefore, for a preparatory period.



3. In order to facilitate the transition to the new trading arrangements, the non-reciprocal trade

preferences applied under the Fourth ACP-EC Convention shall be maintained during the

preparatory period for all ACP countries, under the conditions defined in Annex V to this

Agreement.

4. In this context, the Parties reaffirm the importance of the commodity protocols, attached to

Annex V of this Agreement. They agree on the need to review them in the context of the new

trading arrangements, in particular as regards their compatibility with WTO rules, with a view to

safeguarding the benefits derived therefrom, bearing in mind the special legal status of the Sugar

Protocol.

ARTICLE 37

Procedures

1. Economic partnership agreements shall be negotiated during the preparatory period which shall

end by 31 December 2007 at the latest. Formal negotiations of the new trading arrangements shall

start in September 2002 and the new trading arrangements shall enter into force by 1 January 2008,

unless earlier dates are agreed between the Parties.

2. All the necessary measures shall be taken so as to ensure that the negotiations are successfully

concluded within the preparatory period. To this end, the period up to the start of the formal

negotiations of the new trading arrangements shall be actively used to make initial preparations for

these negotiations.



3. The preparatory period shall also be used for capacity-building in the public and private sectors

of ACP countries, including measures to enhance competitiveness, for strengthening of regional

organisations and for support to regional trade integration initiatives, where appropriate with

assistance to budgetary adjustment and fiscal reform, as well as for infrastructure upgrading and

development, and for investment promotion.

4. The Parties will regularly review the progress of the preparations and negotiations and, will

in 2006 carry out a formal and comprehensive review of the arrangements planned for all countries

to ensure that no further time is needed for preparations or negotiations.

5. Negotiations of the economic partnership agreements will be undertaken with ACP countrieswhich consider themselves in a position to do so, at the level they consider appropriate and in

accordance with the procedures agreed by the ACP Group, taking into account regional integration

process within the ACP.

6. In 2004, the Community will assess the situation of the non-LDC which, after consultations

with the Community decide that they are not in a position to enter into economic partnership

agreements and will examine all alternative possibilities, in order to provide these countries with a

new framework for trade which is equivalent to their existing situation and in conformity with

WTO rules.



7. Negotiations of the economic partnership agreements shall aim notably at establishing the

timetable for the progressive removal of barriers to trade between the Parties, in accordance with

the relevant WTO rules. On the Community side trade liberalisation shall build on the acquis and

shall aim at improving current market access for the ACP countries through inter alia, a review of

the rules of origin. Negotiations shall take account of the level of development and the

socio-economic impact of trade measures on ACP countries, and their capacity to adapt and adjust

their economies to the liberalisation process. Negotiations will therefore be as flexible as possible

in establishing the duration of a sufficient transitional period, the final product coverage, taking into

account sensitive sectors, and the degree of asymmetry in terms of timetable for tariff

dismantlement, while remaining in conformity with WTO rules then prevailing.

8. The Parties shall closely cooperate and collaborate in the WTO with a view to defending the

arrangements reached, in particular with regard to the degree of flexibility available.

9. The Community will start by the year 2000, a process which by the end of multilateral trade

negotiations and at the latest 2005 will allow duty free access for essentially all products from all

LDC building on the level of the existing trade provisions of the Fourth ACP-EC Convention and

which will simplify and review the rules of origin, including cumulation provisions, that apply to

their exports.



2.(a) If, despite the political dialogue conducted regularly between the Parties, a Party considers

that the other Party has failed to fulfil an obligation stemming from respect for human rights,

democratic principles and the rule of law referred to in paragraph 2 of Article 9, it shall,

except in cases of special urgency, supply the other Party and the Council of Ministers with

the relevant information required for a thorough examination of the situation with a view to

seeking a solution acceptable to the Parties. To this end, it shall invite the other Party to hold

consultations that focus on the measures taken or to be taken by the party concerned to

remedy the situation.

The consultations shall be conducted at the level and in the form considered most appropriate

for finding a solution.

The consultations shall begin no later than 15 days after the invitation and shall continue for a

period established by mutual agreement, depending on the nature and gravity of the violation.

In any case, the consultations shall last no longer than 60 days.

If the consultations do not lead to a solution acceptable to both Parties, if consultation is

refused, or in cases of special urgency, appropriate measures may be taken. These measures

shall be revoked as soon as the reasons for taking them have disappeared.

(b) The term "cases of special urgency" shall refer to exceptional cases of particularly serious and

flagrant violation of one of the essential elements referred to in paragraph 2 of Article 9, that

require an immediate reaction.



EEPPAA NNeeggoottiiaattiioonnss:: L Leevveel l oo f f

l l i i bbeer r aal l i i z z aat t i i oonn oo f f C C A A R R I I F F OO R RU U M M OO f f f f eer r



Level of Liberalization in CARIFORUM Offer – Dec 15th

PN Meeting

% Imports

from EU

% Total

Trade

Entry-into-force 52.8% 70.0%

lib within 5 yrs 56.0% 72.0%




lib within EPA 86.9% 92.0%



CCRRNNMM EEPPAA BBrriieef f ss



EEPPAA:: A A n n I I n n i i t t i i a a l l R R e e f f l l e e c c t t i i o o n n



1

CARICOM TRANSCRIPT

PRESENTATION BYPRIME MINISTER BRUCE GOLDING M.P.ON THE EUROPEAN PARTNERSHIP AGREEMENT

AT THE 19TH INTER-SESSIONAL MEETING NASSAU, BAHAMASMARCH 7-8, 2008

You will recall that at the outset of the meeting, I expressed some concerns that the agenda wasoverloaded and that one consequence of that was likely to be our inability to allocate theappropriate time and attention to issues that were both important and urgent. I can think of noitem on the agenda that is more urgent, more important, particularly because it involves morecontentious issues than the question of our external trade negotiations and more particularly theEPA arrangements that we have entered upon.

Members are already aware that on the 16th of December, CARIFORUM States and the EuropeanUnion reached an agreement on a new economic partnership. This was done merely 15 days before the deadline that was set for the conclusion of an agreement.

The negotiation, the conclusion of an agreement and the deadline, were mandated by the CotonouAgreement and the terms of the waiver which was granted by the WTO in November 2001. Letme try to set this agreement in some context. The Cotonou Agreement signed in March of 2000assimilated the preferential arrangements which we enjoyed under Lome. It however requiredthat these arrangements which were inconsistent with WTO rules and therefore required a waiver;it required that these arrangements be replaced by an Economic Partnership Agreement and thedeadline for completing that was set for the 31st December 2007.

There have been as we all know some very trenchant criticisms of the agreement. Some of themcoming from Caribbean personalities, very distinguished, and whose concerns must not bedismissed. What have been these criticisms?

One was that we approached the negotiations with undue and even reckless haste to sign. Ichallenge that. We knew from 2000 - seven years and nine months before the deadline - we knewthat this was the timetable that was set. The clock had started to tick and we should have heardthe ticking of that clock. The negotiations began in April of 2004. Could we have started thenegotiations earlier? Should we have started those negotiations earlier? I think so. In hindsight I believe that we should have proceeded more diligently in order to avoid finding ourselves in acrunch time position approaching the end of the negotiating period. In hindsight too, I don’t think that we were sufficiently seized - certainly many of the critical stakeholders in this effort - I don’t

think that we were sufficiently seized of the implications of any new agreement with Europe andtherefore, had we been more sensitized to this new adventure, perhaps we would have been better prepared for the negotiations themselves.

Some critics have argued that we did not have to sign and on that score I agree with them. Wedid not have to sign because there are choices. We could have made one of two choices. Wecould have eschewed any agreement if we felt that the agreement was not in the best interest of the Caribbean, of the region. We could have opted to enter upon trade with Europe determined by WTO rules which would have involved regional exports to Europe being subject to the general



2

system of preferences. That was a choice. We could have looked that choice straight in the eyeand determined whether or not, all things considered, that was a better arrangement for us.

Some critics say well, we could have applied for another waiver. Well, the truth is we couldn’thave applied for a waiver because we would have had no locus standi under WTO rules it is the preference granting party and not the preference receiving party that has the option of making an

application for a waiver. Based on clear signs that were given, the European Commission had nointention of going back to the WTO and even if they did, the chances of succeeding perhapswould have been as good as a snowball has of remaining a snowball in hell.

A third criticism is that we could have resigned ourselves going on the GSP arrangement butcontinue negotiations towards concluding a more appropriate agreement. My view and I offer this just as my own view, is that such an approach would have offered us – would have put us in a position to secure no better terms. I don’t think that it would have given us any greater leverage.Indeed, it is possible that the disposition of the European Commission to continuing thosenegotiations would not have been as favourable as they would have been.

Two other points I want to mention very quickly in terms of recognizing some of the concerns

that have been expressed. One is the argument that we have allowed access to our market inreturn for a continuation of access to the European market when we know that we have capacitylimitations and will not be able to exploit the opportunities that access to the European marketgives. My response to that Mr. Chairman is well whose responsibility is that? If we have acapacity problem whose job is it now to address that problem and to get that problem right? Andmore than that, forget about Europe. If we are going to stand up to competition which we have toface – not just in external markets but on our own supermarket shelves – then we are going tohave to address our capacity deficiencies whether we enter into an agreement with Europe or not.If we are to survive, if we are to offer our people the opportunity for development and growth, weare going to have to address that capacity issue.

The other point finally before I move on, is an argument that the development chapter - the

development component of the agreement – is weak. That is an issue I think we could probablydebate for the next ten years. I do feel – again I am expressing a view which I hold very strongly – that in these negotiations, reserving our right not to enter upon an agreement – Europe has noobligations to offer us any development assistance in the same way we are not obliged to allowthem duty free quota free access to our market. These are choices that we have. These arechoices that Europe has. And therefore we can discuss the strength of the developmentcomponent but simply to say that this is not a contingent liability in a trade negotiation. A tradeagreement must be assessed on the basis of what it provides and the rights it conveys. It cannot be measured in terms of what development assistance it contains.

What is it that we have agreed to Mr. Chairman? In terms of goods, immediate duty free quotafree access for all CARIFORUM exports to the EU with the exception of rice and sugar. Rice

will enjoy duty free quota free access commencing in 2010 with increase quotas for duty-freequotas for 2008/2009. In so far as rice is concerned, the distinction that has been preserved between whole grain and broken rice is to be eliminated. In so far as sugar is concerned, it willenjoy duty-free quota-free access commencing in October of next year with increased tariff ratequotas of 60,000 tones – 30,000 for CARICOM and 30,000 for the Dominican Republic – between now and then, and inter-regional reallocation of quotas in the event of delivery shortfall.

In terms of goods again, duty-free quota-free access of EU exports to CARIFORUM states butlimited as follows. Four hundred and ninety-three items amounting to 13% of CARIFORUM



3

imports from the EU will be permanently protected from tariff liberalization. These include freshfruits and vegetables, dairy and cheese products, processed agricultural products, chemicals,furniture and industrial products. One of the points I think we need to note is that 75 per cent of the agricultural imports which come in now from Europe will continue to be protected by tariff and have no sunset clause. Those will be protected in perpetuity. Secondly, I think we must notethat the EU is required to eliminate export subsidies on all the agricultural products which we

liberalize. That’s the other 25 per cent.

What are the tariff related commitments that CARIFORUM has made? It is important toappreciate where we are starting from. Our starting point is that up to the 31st of December without any EPA, 51 per cent of the imports from Europe already attracted zero duty. 51 per cent! The ending point which is where EPA is intending to take us, will still leave us with 13%of imports from Europe being protected from liberalization. So that what is to be liberalized over the next 25 years is 36% - that’s 51% plus the 13 that will not be liberalized, meaning no changeto the status quo. The status quo change will affect 36% of our tariffs. In that, we have sought to phase the liberalization to give us space to make the adjustments that we will be required to make.

Immediately - in terms of additional liberalization - immediately upon coming into force of the

agreement, we would liberalize 1.8 % of imports which are regarded as nuisance tariff becausethey don’t really impact upon our domestic economy. In the first five years another 3.2%. In thenext five year another 8.3%. In the next five years which would take us up to the fifteen year basket, 21.7%, which amounts to 60 per cent of the new tariff liberalization that has to be done.So, 60% of what we have to liberalize beyond what was liberalized from the very beginning, 60%of that is in the 15 year basket. In the 20 year basket we will liberalize another 1.9% and finallyin the 25 year basket the final 2.3% which would bring us up to 87% liberalization – actually86.9%.

So, there is no liberalization apart from the 1.8% of nuisance tariff. There is no liberalization for the first three years. Tariffs on revenue sensitive items such as gasoline, motor vehicles, motor vehicle parts, are to be phased out in years eight to ten and in so far as other duties and charges

are concerned another major negotiating issue. Current ODCs are to be maintained for the first 7years and then phased out in years eight to ten.

Finally on goods Mr. Chairman, during the first 3 years the EU is to exclude CARIFORUMexports from application of multilateral safeguard measures and employ constructive measures before imposing anti-dumping and countervailing duties. In regard to services, the EU willimmediately liberalize 94% of the W120 list of sectors. The Dom. Rep. has committed toliberalizing 90%, CARICOM MDC to liberalize 75%, CARICOM LDC to liberalize 65%. TheBahamas and Haiti are to submit their liberalization schedules within six months.

The EU is to grant access to CARIFORUM professionals in 29 sectors for Caribbean contractualservice suppliers subject to them having secured contracts and limited to up to ninety days

aggregated in any calendar year. This includes importantly entertainers for which a stout battlehad to be fought and we have got acceptance of that to all EU countries with the exception of Belgium and Italy. The EU will also grant access to CARIFORUM professionals in elevensectors for temporary entry. This has to do with CARIFORUM independent professionals or self-employed persons.

In the area of investment, reciprocal market access will be provided in most areas of agricultureand forestry, manufacturing, mining and service sectors. CARIFORUM has reserved protectionfor public services, utilities and other sensitive sectors. CARIFORUM will retain special



4

protection for small and medium enterprises in specific sectors and special rules governinginvestment in tourism, e-commerce, courier services, telecommunications, financial services andmaritime transport will apply.

A sticking point in the negotiations had to do with MSN treatment. The EU, the EC argued andinsisted that the obligation should exist that would require us to extend to each other, us to them

and them to us, similar treatment to that entered into by either party with a developing countrythat commands 1% or more of world’s merchandise exports or, in the case of a bloc of developingcountries 11/2%. This of course was in reaction to the fact that we do have some developingcountries like China and Brazil that are major exporters and it was in a sense to square bracketthem and to indicate that if we entered into trade agreements with them which were better thatwere contained in EPA, that those arrangements would also have to be extended to them. In sofar as regional preferences are concerned the EU insisted that any concessions granted byCARIFORUM to the EU in goods and services must automatically be extended from oneCARIFORUM state to another. We found it difficult to oppose that because that is certainlyconsistent with the principles of the CSME and indeed the principles of CARICOM. It does not preclude CARIFORUM states from granting to each other, terms that are more favourable thanthose granted to the EU.

The question of removing tariffs from EU imports circulating within CARIFORUM was another issue on which we were not able to reach agreement and therefore what we agreed to do was touse our best endeavours. We took that position because we do not yet have a CSME freecirculation regime and we did not wish to compromise any decisions that we may make in thefuture in that regard.

No commitments were given relating to government procurement since we did not want tocompromise the design and implementation of CSME government procurement regimes whichremain a work-in-progress and which we anticipate will go far beyond anything that we mighthave to assume under the EPA arrangement.

Regarding the development chapter Mr. Chairman, while the EPA does not provide an indicationof the levels of assistance that would be available to facilitate implementation, the commitmentsundertaken by CARIFORUM are in many instances conditioned upon delivery of such assistance.There are five sources of EU funding that are available to support the implementation of EPA.They are the national indicative programmes, the CARIFORUM regional indicative programme,the all ACP facility, the general budget of the EC and the aid for trade programme. CRIPconstitutes a….the tenth CRIP amounts to €132 Million with the CARIFROUM Ministers havingdecided in October of last year to allocate 30% of CRIP to EPA implementation. That will becomplemented by reserving all of the incentive tranche of the 33 Million, to EPA implementation.

The question of the…of the all ACP facility of €2.7 Billion which is also inserted in the ten EDF

is a matter of concern because we did not - and it is an area of disappointment I found – we werenot able to secure any commitments regarding the allocation from that fund to CARIFORUM.This is an all ACP facility and the further concern we have is that the disposition of the EuropeanCommission could well result in a bias being shown towards African countries because of their own stage of development and would work to our disadvantage. The modalities governing accessto this facility are still being worked out and it is something that we need to pursue aggressively.But we need to put ourselves in a position where we can tap into this source which means that the projects that would qualify for assistance under that funding head are things that we have to pursue as a matter of urgency.



5

The status Mr. Chairman of – lets looks at a couple of issues – I will try to be as brief as I can.Among the things arising out of this experience has been the need for us to do an evaluation of the negotiating process that was used, the structures that were employed, the results that have been obtained and whether or not that represents the way forward in terms of future negotiationsand what arrangements we need to put in place regarding implementation. This brings me to

what is emerging as perhaps the most contentious issue and that has to do with the role of theCRNM.

The CRNM was established in 1996 by the Heads of Government acting in their wisdom.Questions have been raised about the status of the CRNM. As you know COTED commissioneda consultant evaluation of the process and among the issues that they raised was the legal status,whether it was a legal entity because it is not a Treaty-based defined entity. It was set up and itoperated under the political direction of the Heads and was subject to supervision by the PrimeMinisterial Sub-committee on External Trade Negotiation. It is an issue that has to be addressedand it may well be that the Heads may decide that this is an issue that is better addressed incaucus. But let me raise some general issues here. It needs to be addressed because there areinherent conflicts between the mandate of the CRNM and established Treaty-defined Community

organs, COTED being one. In the case of COTED, COTED has special delegated authority todeal with things like tariffs that impact significantly on any trade agreement.

The complaint has been made and the independent consultants have pointed to what appeared to be a disconnect at times between the CRNM working in collaboration with the Heads of Government and COTED which complains that it was many instances left out of the loop. Theobservation was made in the discussion with the independent consultant that the level of supervision of the Prime Ministerial Sub-committee was less than what was required. Concernshave been raised for example about the funding of the CRNM and whether or not the sources of funds could have given the appearance if not the actuality of a compromising loyalty. Concernwas expressed as well that the negotiating brief that was provided to the CRNM even thoughclearly defined, as the negotiations progressed and as they got into dealing with tight sticking

point issues, that the negotiating briefs offered, fell into some level of ambiguity.

It is something that has to be addressed. I think it is a well known secret that there has beentension between the CRNM and the secretariat. I don’t think that we can afford to enter upon anyfurther negotiations until we confront that issue head on. It is something that I would suggest Mr.Chairman that perhaps the Heads in caucus need to focus on. Do we revisit that decisions thatwas made in 1996 to determine the value of that approach and to seek to resolve the matter dispassionately, devoid of emotion, respecting the Treaty and the institutions that are createdthereby, but at the same time allowing for pragmatism and recognizing that one of the challengesthat we have faced in the past has been how to execute decisions of the Community and to do soexpeditiously and in a timely manner.

When you are entering upon trade negotiations you cannot afford to have ambivalence. Mostimportantly, you cannot effectively anchor those negotiations if there is uncertainty in the mindsof the negotiators when they go to the negotiating table. So it is an issue that I believe has to beaddressed.

In so far as the consultants reports were concerned which was engaged by COTED, they made anumber of recommendations which the Heads will have to address. One is that the negotiatingmachinery must be Treaty-based with shared responsibility between the negotiating machinery,secretariat, COTED and other designated organs of the Community. It went further to suggest



6

that the secretariat needs to be restructured to better manage the economic cooperation functionsof the region and that these functions would have to include the implementation of tradeagreements and they are suggesting that that should be assigned – should be placed under thedirections of a single directorate headed by a Deputy Secretary General.They went further to propose that the CRNM should be integrated into the restructuredsecretariat. They urged that we accelerate preparation for the implementation of EPA. They urge

that we fast track the CSME implementation - let me just spend just a short moment on this.

The observation was made and I think that it has merit – that, CSME is in danger of beingsmothered under EPA because of how EPA was structured. EPA was not a negotiation betweenEurope and CARICOM. For the purpose of the negotiations the Dom. Rep. was included in the bargaining unit and therefore at the negotiating table it was not possible to give preeminence to aCARICOM position because our negotiating stance had to accommodate the interest of Dom.Rep. And the observation was made that one of the negative effects of this is that our owninternal need to deepen our integration process to expand the reach of the CSME and to in factcarry out parts of the mandate that was given for the establishment and development of the CSMEsuffered, because we were now in this wider theatre of negotiations.

They also suggests in the consultants recommendations that greater care be taken to synchronizenational and regional development objectives into future negotiations – the criticism having beenmade that a number of member states were not able, perhaps because of limitations in capacity or for other reasons, were not able to have their own national development strategies placed in the basket of issues that were going to be pursued in the negotiations.

Just two final points before I rap up.

In terms of implementation we are at a stage now where we have some challenges. We havesome important – some imperatives that we have to respond to. There are certain obligationsunder the EPA which require immediate action such as for example establishing theCARIFORUM/EC council, establishing the CARIFORUM/EC committee on trade and

development, the CARIFORUM/EC parliamentary committee, the CARIFORUM/ECconsultative committee. We on our side are required to establish national coordinators in eachmember state, as well as a regional CARIFORUM coordinator to help to manage the process of implementation. It was to that end that I took the liberty of asking the secretary general to prepare a road map for implementation, setting out the various obligations that have to be met, thelegislative action that have to be taken, the administrative structures that have to be put in place. Ithought it was necessary to do that – this was not a decision making enterprise or endeavour – itwas simply asking the secretary general to prepare for our consideration and to assist us inmaking the appropriate decision – a schedule of the things that have to be done in order to givelife to the agreement that we have signed. I do want to commend the secretary general becausehaving reviewed that document myself I think it is a well prepared document that can assist us both collectively as actions that have to be take by individual governments in order to actualize

the provisions of the agreement.

We face challenges Mr. Chairman, let’s be very clear. One of the things that have been said for example is that in terms of duty-free quota-free access we had that before so we have gainednothing more. My response to that is that we were about to lose it and therefore it is a question of retaining what we have enjoyed for a long time and were on the verge of losing. But duty-freequota-free access is not going to be of any value to us unless we can penetrate those markets.That is an area that I feel that we ought to turn our attention to in a very aggressive way. I believethat there are tremendous opportunities not only for local producers to seek to identify those areas



7

of this vast market of 450 million people with an average per capita income of someUS$17,000.00 - not only do I believe that with the appropriate institutional arrangements andsupport, we have producers who can get in there. We may be able to find just a niche because Idon’t believe that we will ever be mass producers in that European market but, a niche of theright size in that market can put thousands of our people to work. It is a question of identifyingthose niches and seeing to what extent we can get ourselves up to the level of efficiency and

productive competence to be able to penetrate those.

I think also that something that we have not seen enough of - and the blame perhaps has to beshared by both government and the private sector – but I have not seen enough efforts being madefor private sector companies in the region to recognize that while they may be huge giants in their own territories, in terms of the world stage they are merely specks that can hardly be seen. Oneof the decisions that we are going to have to make within this region is whether we want to bewhales in a swimming pool or we are prepared to be minnows in an ocean with the expectationthat in that ocean there may be sufficient nutrients to enable us to grow. It is not so much adecisions it’s a process. I have been surprised and impatient that somehow we don’t seem to bemoving in that direction. We perhaps need to look from the point of view of government and theinstitutional arrangements. Are we doing enough to facilitate, to induce, to encourage and we

have to enter into dialogue with the private sector to find out now why is it that you seem intenton continuing to compete among yourself, sharing this limited economic space that we have inthe region and in the process, instead of creating wealth, very often all of these good efforts aresimply redistributing the poverty that we have so much of and which we want to get rid of. It isan issue that I really feel that we as a community need to address and to address in a serious way.

There is a third window of opportunity that if we handle it strategically, I believe can reap richdividends. And that is to say to the foreign investment community that look, you want to get intoEurope? Here is a place to set sail from. A big part of the success of Ireland was, when Irelandin joining the EU was able to join under preferential arrangements in terms of taxes, in terms of awhole host of concessions, they went out to the world and said now look, if you guys want to getinto Europe the gateway to Europe – preferred gateway is Ireland. Because, if you come to

Ireland and you set up your businesses in Ireland – lower taxes, lower this, lower that – and thatwas so much a part of what we now know as Irish miracle.But I don’t think it is something that is going to come about by our standing at the wavinggalleries of our airports and looking at the aircrafts coming in to see which foreign investors aredeplaning. I do believe that we have to deliberately, in an organized structure strategic way, weneed to go into the international capital market – the investor community – to go and promote andto sell the advantages that EPA offers and to see to what extent we can attract that kind of capitaland that kind of investment into Jamaica.

Mr. Chairman if I have said I was going to close early and I didn’t I apologize. One final point.One final, final point!

This is not the first, this is not the first trade agreement we have entered into. If we do a clinicalexamination of the previous ones, our benefits have fallen far short of the promise that theyoffered. Was that because the agreements were bad? Or was it because our own response to theopportunities there was lethargic? I mean, you look at CBI for example, it certainly has not provided us with the benefits that we had anticipated. You look at CARIBCAN you can say thesame thing. So, we have a questionable tradition of having agreements but somehow not beingable to absorb the benefits that the agreements offer. We need to look very clinically at ourselvesto find out why we didn’t. We have a number of other negotiations that are scheduled. There isdisagreement as to the speed with which we should enter upon those agreements.



8

The independent consultants have in fact proposed that in fact we should list them in some order of priority. They have proposed Canada first, Dom. Rep. second, USA third, Costa Rica fourth,Central America fifth. As far as the Jamaican delegation is concerned we have slightly differentviews in terms of the order of priority. Those are matters that we need to discuss and todetermine. We know of the initiative being taken by Congressman Rangel which Prime Minister

Spencer brought us up to date on. We are called upon to have a presence in several theatres at thesame time. It is going to put strain on our negotiating capacity. I think that we have built upconsiderable capacity coming out of EPA and whatever may the criticisms we make of theCRNM I do feel that the CRNM is an institution of which we can be proud and I think that theyhave performed. As to how they ought to be configured within the CARICOM structure issomething I believe the Heads will have to examine.

My colleague is saying I am so ethnocentric that I spoke of about attracting investors to Jamaica.I didn’t mean to offend but I hope that Jamaica gets some of it. So, we need to examine that because Canada is anxious to start and I am concerned as to whether or not it is in our interest toset our own timetable because we have to determine whether or not that agreement is in our interest. If it is not in our interest then we can hold back. If it is in our interest, then I don’t think

that we should put them on indefinite hold.

There is the US situation which is tied up with Congressman Rangel’s initiatives and there are of course other negotiating commitments that we have closer within the region. We need to takedecisions on those, but before we embark on that we have to reconcile and clarify the ambiguitiesand uncertainties regarding our negotiating machinery.

I thank you Mr. Chairman.



EEPPAA:: H H i i g g h h l l i i g g h h t t s s o o n n S S e e r r v v i i c c e e s s & &

I I n n v v e e s s t t m m e e n n t t



CRNM – Highlights re Services & Investment in the EPA 1

HIGHLIGHTS RE SERVICES AND INVESTMENT IN THE CARIFORUM-EU

ECONOMIC PARTNERSHIP AGREEMENT (EPA)

RULES ON SERVICES AND INVESTMENT IN THE EPA

The EPA contains a comprehensive section on Investment and Services as well as common rules

on E-commerce. It provides a special concession for the Bahamas and Haiti to join theAgreement but they must submit their commitments on investment and services within six

months.

The rules on investment will give predictability and transparency to the conditions of market

access in manufacturing, mining, agriculture and forestry, and service sectors in European and

Cariforum states. In the European Union (EU), Cariforum investors will get national treatment

and most favoured nation treatment and vice versa. Both regions have liberalized most areas of manufacturing except for some sensitive areas in Cariforum. However, public services and

utilities and other sensitive sectors have not been opened to foreign participation. And Cariforumhas maintained special reservations for small and medium enterprises in some sectors. The EUalso has excluded a few sectors and maintains reservations in some sectors for some of its newer

member states.

The EPA also contains obligations that will ensure that investors safeguard the Environment and

maintain high Labour and Occupational Health and Safety standards. Furthermore, it forbids

investors from engaging in corruption to get special concessions from public officials.

In the case of Services, there are comprehensive rules in the EPA for the tourism sector as well

as the following areas: E-commerce; courier; telecommunications; financial services; and

maritime transport. In the case of tourism, large firms will be prevented from behaving in ananti-competitive manner in order to safeguard the interests of the mainly small firms in the

Caribbean. There are also provisions for cooperation and mutual recognition of qualifications as

well as technical assistance for the tourism sector.

The EPA also has special provisions for Short Term Visitors for Business Purposes in the

following areas: research and design, marketing, training, trade fairs, sales, purchasing and

tourism.

Finally, the Services and Investment Title provides for development cooperation from the EU to

address a range of needs in the Caribbean such as developing regulatory regimes, building thecapacity of regional services firms, market intelligence, interaction with EU firms, among other

activities.

SERVICE SECTORS LIBERALIZED BY THE EU

The EU has opened more than 90 percent of the sectors in the W120 list used as the basis fornegotiations under the GATS in the WTO. These range from Business services,

Communications, Construction, Distribution, Environmental, Financial, Transport, Tourism and




Recreation services. The commitments will start when the EPA enters into force for all EU states

except the new members, (Eastern and Central European states) whose commitments will start in2011, and Bulgaria and Romania in 2014. In the case of investment (Mode 3) the EC has

liberalized almost all sectors for Cariforum firms in the European Union with only some

exclusions in a few sectors and limitations in mainly the new EU member states. In other modes

of supply there has been great progress as well. In Mode 1 (cross border trade) the EC hasliberalized the vast majority of sectors. The same applies to Mode 2 (consumption abroad).

In the case of the temporary movement of natural persons (Mode 4) the EC has granted market

access for Caribbean professionals in 29 sectors for employees of Caribbean firms (Contractual

Service Suppliers - CSS) to be able to enter the EU to supply services once they get a contractThese are subject to conditions stipulated in the Services chapter of the EPA but the stays are for

up to six months in a calendar year. As well, the EU has liberalized 11 sectors for temporary

entry by Independent Professionals (IPs) or self employed persons. Although there are some

conditions (economic needs tests) in some states, there are no quotas on the amount of servicesuppliers that can enter the EU market. This is a very important concession by the EC to

Cariforum since in the WTO and in other bilateral FTAs the EU does not have marketaccess commitments of this kind for temporary entry.

In the case of Entertainment services, a sector in which the Caribbean is quite competitive, 25

European states will liberalize Entertainment services (CPC 9619) with some limitations in twostates. This level of market access for entertainment is a first for any trade agreement of the

EU and potentially a very big area for the Caribbean region. In the WTO only two EU states

have commitments for contractual service suppliers in entertainment services; and in the EU-

Chile Trade Agreement only four states do. In the EPA, the activities that are being liberalizedinclude the whole range of artists and cultural practitioners in music, dance, theatre, visual arts,

as well as sculptors, authors, poets, among others. The EC offer is subject to some controls and

conditions but there are no quotas or limits on the number of natural person who can enter underthis commitment. Caribbean artists, musicians, and other cultural practitioners and their crews

who are registered under businesses will be able to send their members or employees to almost

all EU states to supply entertainment services.

The market access granted by the EU in Entertainment is complemented with a historic and

innovative Protocol on Cultural Cooperation which provides for greater cooperation on all

cultural fronts and with special provisions on audiovisual. In particular, co-produced audiovisualproducts and services involving European and Caribbean creative teams will qualify as European

works and meet the cultural content rules in all EU states. When co-production treaties are

completed between individual EU states and Caribbean states or regions, it will also make itpossible for Caribbean audiovisual producers to access funding for creative projects.

Furthermore, through the Protocol, artists and other cultural practitioners (who are not involved

in commercial activities in the EU) will be able to enter European states to collaborate onprojects, upgrade their training, etc. And they will be allowed to stay in the EU for periods up to

90 days in any 12-month period. Previous EU trade agreements had almost nothing on cultural

cooperation. The Cariforum-EC EPA is the first to have comprehensive provisions that allow formovement of artists, musicians, and other cultural practitioners who can develop contacts that

can eventually lead to commercial contracts.




It is also important to note that all the market access commitments on services in the EPA arecovered by the dispute settlement provisions; so if Caribbean traders or investors or business

persons find officials in individual EC states reneging on their commitments or making it too

difficult for them to enter their jurisdiction, this can be challenged.

SERVICE SECTORS LIBERALIZED BY CARIFORUM

In terms of the level of liberalization by Cariforum compared to the EC, there is clear asymmetry

as expected. The EC opened more than 90 percent of service sectors. In the case of Cariforum,

the sectoral coverage is between 65 and 75 percent; but the Dominican Republic’s market

opening in services is more than 90 percent. The sectors that were liberalized by Cariforum statesinclude those that have positive development impacts and in which Member States are seeking

investment or new technologies as well as sectors that are important to create economic

opportunities in outsourcing contracts from European firms. To a large extent, most countriesliberalized cross-border trade and investment. However, there is quite limited temporary entry

(Mode 4) coverage for contractual service suppliers and independent professionals.

The main sectors that most Cariforum states have liberalized in the EPA are: Business services

(accounting, architecture, engineering, etc); computer and related; research and development;

environmental services; management consultancy; maritime transport; entertainment; tourism;

among others. Some of the commitments will be phased-in over time in some member states toaddress sensitivities at the national level. The services that Cariforum have opened should lead to

increased investment in the region in order to develop new service industries. As well, market

entry can result in greater efficiencies in a range of services that are inputs to manufacturing andother services. It is expected that there will be increased trade in the short term in business

services if regional firms position themselves to take advantage of outsourcing opportunities

from European firms.



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1

Caribbean-EU Economic Partnership Agreement (EPA)

Achievements in Agriculture

Chapter on Agriculture and Fisheries

CARIFORUM was able to achieve the insertion into the Agreement of a full chapter on Agriculture and

Fisheries. Chapter 5 of Title I of Part II of the Agreement sets out the objectives, which include

sustainable development and exploitation, and increased competitiveness, and special mention is made

of the contribution of these sectors to poverty eradication, food security and diversification. There is a

commitment on the part of the Parties to engage in a process of dialogue in a range of areas, including

technology, developmental experiences, investment promotion, policies and institutional issues. In

addition, the EU has made specific commitments on development cooperation, which cover the

following:

a. Improvement in the competitiveness of potentially viable production, including downstream

processing through innovation, training, promotion of linkages and other support activities, inagricultural and fisheries products, including both traditional and non traditional export sectors;

b. Development of export marketing capabilities, including market research, both for trade between

CARIFORUM States and between the Parties as well as the identification of options for the

improvement of marketing infrastructure and transportation, and the identification of financing and

cooperation options for producers and traders;

c. Compliance with and adoption of quality standards relating to food production and marketing,

including standards relating to environmentally and socially sound agricultural practices and organic

and non-genetically modified foods;

d. Promotion of private investment and public-private partnerships in potentially viable production;

e. Improvement in the ability of CARIFORUM operators to comply with national, regional and

international technical, health and quality standards for fish and fish products;

f. Building or strengthening the scientific and technical human and institutional capability at regional

level for sustainable trade in fisheries products, including aquaculture; and

g. Supporting the process of dialogue referred to above.

Export subsidies– the Agreement commits the EU to the elimination of export subsidies on all

agricultural products for which CARIFORUM has agreed to eliminate tariffs. This will be done according

to modalities to be agreed at the level of the Trade & Development Committee of the EPA. CARIFORUM

will not be required to eliminate any export subsidies that are applied in accordance with its rights

under the WTO Agreement on Agriculture and the Agreement on Subsidies and Countervailing

Measures.



2

Commodities – Sugar, Bananas, Rice and Rum

The agreement contains an article (Article 6), which commits the EU to engage in prior consultations

with CARIFORUM on any policy developments that my impact on the competitive position of the

region’s traditional exports on the EU market. This is particularly important in terms of any planned

liberalization of the market by the EU in the context of the WTO and bilateral free trade agreements butalso extends to the EU’s internal regulatory framework.

Sugar – The CARIFORUM region gained additional access to the EU market of 60,000 tonnes (i.e. over

and above the quantities available to Sugar Protocol signatories)for the period up to the end of

September 2009. Of the additional amount, 30,000 tonnes will go to the Sugar Protocol (i.e. CARICOM)

countries and the remainder to the Dominican Republic.

While the Sugar Protocol remains in effect (up to the end of September 2009) the EU has given

assurances that it will seek to ensure that any shortfalls on the SP quotas are reallocated among other

CARICOM countries.1

This was a key demand from the CARIFORUM side.

While the agreement limits, until 2015, the ability of CARIFORUM countries to “cumulate”2

with each

other and with other ACP States in respect of a number of manufactured products that contain sugar,

the EU has committed to reviewing that list of products, with a view to reducing it, at the end of three

years following signature of the agreement.

Rice – For a period of two years leading up to full duty-free and quota-free access, CARIFORUM rice

exporting countries will be given quotas of 187,000 tonnes for 2008 and 250,000 tonnes for 2009. The

quotas will be duty-free compared to the approximately €65 per tonne currently paid. The present

quota available to the ACP (Guyana and Suriname) amounts to 145,000 tonnes and the proposed quotas

for 2008 and 2009 would therefore represent increases of 29% and 72%, respectively. Further, the newarrangement makes no distinction between whole grain and broken rice, which means that CARIFORUM

exporters should be better able to target the higher-priced market for whole grain rice, once supplies

are available. In addition, the agreement contains a joint declaration committing the EU to keeping the

licencing and other arrangements relating to the quota under review with aim of ensuring that

CARIFORUM exporters obtain the maximum benefit from the trade.

Bananas –Bananas will gain full duty-free and quota-free access to the EU market from the inception of

the EPA. In effect, the recent ruling of the WTO dispute settlement panel against the EU’s preferences

granted to ACP banana exporters will become null and void insofar as CARIFORUM banana exports are

1See JOINT DECLARATION ON REALLOCATION OF UNDELIVERED QUANTITIES UNDER THE SUGAR PROTOCOL (page

402)

2Under the Rules of Origin, CARIFORUM countries will be able to incorporate raw materials from each other’s

production as well as from that of other ACP States and still have the final goods qualify for preferential treatment

into the EU. This is referred to a “cumulation”.



3

concerned since the duty-free preferences will now be protected under WTO rules governing free trade

areas.

The agreement also contains a comprehensive Joint Declaration on Bananas3

in which the importance

of the industry to several CARIFORUM countries is fully acknowledged, and which also recognizes the

need for the EU to maintain significant preferences for the product. Importantly, the Declaration alsocommits the EU to provide funding to assist the industry in making the necessary adjustments, including

diversification initiatives, and addressing the social impacts that may arise from the new trading

environment.

…

3See JOINT DECLARATION ON BANANAS (page 401)



EEPPAA:: T T r r a a d d e e - - R R e e l l a a t t e e d d I I s s s s u u e e s s



EPA BRIEF ON TRADE RELATED ISSUES

The negotiated commitments in Title IV of the CARIFORUM-EC EPA (EPA), “Trade

Related Issues” are intended to complement and support the fundamental development-

oriented paradigm of the EPA, and include the following subjects:

o Chapter 1: Competition

o Chapter 2: Innovation and Intellectual Property

o Chapter 3: Public Procurement

o Chapter 4: Environment

o Chapter 5: Social Aspects

o Chapter 6: Protection of Personal Data. They include It does so by

Taken together, these Chapters send a powerful positive signal, to both potential investorsand development partners, of the Region’s commitment to trade-related development.

Chapter 1: Competition

The Competition Chapter supports fair competition by proscribing two of the most

common forms of anti-competitive behaviour. Article 2, in so far as they may affect

trade between the EC and CARIFORUM, proscribes:

“(a) agreements and concerted practices between undertakings, which

have the object or effect of preventing or substantially lessening

competition in the territory of the EC Party or of the CARIFORUM States

as a whole or in a substantial part thereof;

(b) abuse by one or more undertakings of market power in the

territory of the EC Party or of the CARIFORUM States as a whole or in a

substantial part thereof.”

The CARIFORUM States have also committed to ensuring the enactment of enablinglegislation addressing the foregoing within 5 years of the coming into force of the EPA.

For the CARIFORUM Region, the provisions of the EPA Chapter help to ensure that thebenefits of trade liberalization, e.g., lower cost to consumers as a result of lower tariffs,

are not marginalized and/or eliminated owing to the anti-competitive behaviour of firms

which might wish to engage in market partitioning, or other abuse of dominant positions.

For CSME States in particular, the Chapter re-affirms obligations which they have

adopted in the Revised Treaty of Chaguaramas to implement measures proscribing themost common forms of anti-competitive behaviour. Further, by linking the

implementation of these obligations to the provision of development cooperation, the

EPA Chapter facilitates ongoing Regional Integration initiatives within the Community in

this subject.



Chapter 2: Innovation and Intellectual Property

The global objectives of this Chapter are to improve CARIFORUM competitiveness

through the development of CARIFORUM innovation systems in partnership with theEU and through access to relevant EU support programs. Examples of such support

programmes are the Competitiveness and Innovation Framework Programme (CIP) andthe Framework Programme for research and technological development, currently FP7.

Specific cooperation areas identified include eco-innovation and renewable energy, andinformation and communication technologies. Support is also to be provided for the

development of CARIFORUM intellectual property, including the development of

geographical indications and the protection of traditional knowledge, its relevant legal

systems and its enforcement institutions, without restricting existing flexibilities,particularly those required to address public health.

The key benefits are:

1. Recognition of (a) a relationship between creativity, innovation,

competitiveness, levels of development and the protection of intellectualproperty rights; and (b) the neighbouring status of CARIFORUM with the EU

through relevant outermost regions.

2. Facilitation and promotion of CARIFORUM participation in existing andfuture framework programs, specific programs and other activities. Examples

of this include, but are not limited to, the EU’s CIP and FP7.

3. Agreement on the facilitation of and support for cooperation in the

development of competitiveness and innovation; science and technology; eco-

innovation and renewable energy; and information and communicationtechnologies.

4. Agreement on the facilitation of and support for the development of

intellectual property, including the development of geographical indicationsand the protection of traditional knowledge, its relevant legal systems and its

enforcement institutions, without restricting existing flexibilities, particularly

those required to address public health.

5. Support for the creative industry, particularly the entertainment industry,

through protection of content in the digital environment in accordance withtreaties negotiated multilaterally, and the tightening of existing measures for

intervention to prevent and deter the ongoing infringement of their rights.



Chapter 3: Public Procurement

The negotiated commitments in the Public Procurement Chapter of the EPA

do not grant rights of access, by any Party or Signatory CARIFORUM State,

to the public procurement market of any other Party or Signatory

CARIFORUM State. The Chapter focuses on transparency rules that will serveto strengthen good governance initiatives, and offer a strong tool to assistgovernments in their efforts to fight corruption and to ensure the proficient

utilization of increasingly scarce resources. The principal benefits of the

negotiated rules of this Chapter will be realized at the National levels, where

transparency operates as a tool that allows governments to guarantee knowledgeof the facts for the purposes of verification and administrative control in the

efforts to achieve value for money in their procurement activities. Further,

transparency in a procurement process is important to both the bidder and thegovernment. Bidders will only be prepared to act as honest brokers if they have

confidence in the procurement procedure, and the transparency of governmental

action is a necessary requirement to engender that confidence.

Chapter 4: Environment

The purpose of this Chapter is to provide a framework within the Partnership that facilitates the

development of trade between the Parties in a manner that promotes environmental protection

and preservation. The express right of the Parties to regulate in accordance with their ownsustainable development priorities is recognized, provided that such regulation does not constitute

arbitrary or unjustifiable restrictions on trade between the Parties. The majority of the Chapter is

best endeavour in nature, allowing CARIFORUM States to enact and implement measures inaccordance with their own needs.

Chapter 5: Social Aspects

Chapter 5 is, in essence, a re-affirmation of existing commitments of CARIFORUMStates, specifically a commitment to the core labour standards as defined by the ILO.

One important aspect of this Chapter is the commitment that labour standards not be used

for protectionist trade purposes. This will help to ensure that trade practices do not

undermine social and socio-economic objectives. The express right of the Parties toregulate in accordance with their own social development priorities is recognized,

provided that such regulation encourages high levels of social and labour standards

consistent with the core rights and standards identified by the ILO. The majority of theChapter is best endeavour in nature, allowing CARIFORUM States to enact and

implement measures in accordance with their own needs.

Chapter 6: Protection of Personal Data

CARIFORUM States have committed to establishing Personal Data Protection regimes,

based on the principles promulgated by the OECD, with in seven years after the entry

into force of the EPA. Several CARIFORUM States, including Trinidad and Tobago, the



Bahamas, Barbados and St. Kitts and Nevis, recognizing the potential commercial

benefits of such a regime, are already in various stages of implementing national dataprotection regimes.

The rules on the protection of personal data as reflected in Chapter 6 will serve to bolster

investor confidence in commercial interests that involve the transfer and/or processing of personal data. This, in turn, can facilitate the Region’s thrust into new generationservices based on data transfer, including new business models created by outsourcing

(referred to as off-shoring when the supplier is located in another country/jurisdiction),

allowing multinational companies to concentrate on core products in one country, while

other market players provide support services in another country. The types of activitiesgenerally outsourced in this manner include call center activities, various financial

services, human resource functions, billing functions, etc. This is a fast-growing niche

market which, with targeted marketing strategies highlighting the caliber of the Region’slabour force, high literacy levels, full technological inter-connectivity, inter alia, has the

potential to make significant contribution to the further growth and development of the

Region.

Development Cooperation

All of the Trade Related Chapters noted above, include development cooperation

commitments, obliging the EC and CARIFORUM States to work together to establish

and implement the frameworks (legal, institutional and/or normative) primarily in theCARIFORUM States necessary facilitate compliance with commitments. As a first step

towards initializing these commitments, the European Commission and the

CARIFORUM Secretariat undertook to jointly carry out needs-assessment studies in theCARIFORUM States. The objective of these studies are to: (i) identify needs at the

national, CSME and CARIFORUM levels that must be addressed in order tooperationalize the relevant EPA commitments; and (ii) develop comprehensive andprioritized programmes of activities along with financing proposals in respect of the

identified needs. The studies are at various stages of implementation. Some have been

completed and approved by the relevant authorities on both Sides, some are currently

being undertaken, and others are awaiting completion of the consultant selection andengagement process.



EEPPAA:: T T r r e e a a t t m m e e n n t t o o f f T T o o u u r r i i s s m m



21February 2008 1

CARIBBEAN

REGIONAL NEGOTIATING MACHINERY

THE TREATMENT OF TOURISM IN THE CARIFORUM-EC

THE ECONOMIC PARTNERSHIP AGREEMENT

The Cotonou Agreement, which governs the relationship between CARIFORUM (CARICOMand the Dominican Republic) and the European Communities (EC), specifically provides for

cooperation strategies on tourism. Article 24 of the Agreement states that the EC will provide

support for development of the tourism sector; such support should aim at: sustainabledevelopment of the tourism industry; improve countries’ legal and institutional framework and

resources for related policies and programmes; improving the competitiveness of the sector,

especially small and medium-sized enterprises (SMEs), through investment and product

development; and strengthening linkages between tourism and other sectors of economicactivity. Negotiations between CARIFORUM and the EC towards an EPA, which replaces the

trade component of the Cotonou Agreement, on focused on these overarching objectives, not

only through market liberalisation in tourism services, but also through clear cooperationmechanisms.

The preparatory consultations with the Caribbean tourism industry and other stakeholders for theEPA negotiations were aimed at establishing priorities for the negotiations, achieving

convergence on a strategic approach towards the sector in the negotiations. Stakeholders

included the Caribbean Tourism Organisation, the Caribbean Hotel Association; national hotel

associations; investment promotion agencies; educational institutions; the maritime, airline andground transportation sectors.

Structure of the EPA Title on Investment, Trade in Services and E-Commerce

With respect to the structure of the Title on Investment, Trade in Services and E-Commerce, the

European Commission (EC), which negotiates on behalf of the European Union, proposed theinclusion of specific disciplines on several sectors of interest, namely: E-commerce; courier

services; telecommunications; financial services; and maritime transport. CARIFORUM

negotiators in turn insisted that tourism receive specific treatment given the economicimportance of the sector to region, and proposed a draft annex on tourism. There was some

resistance to the proposed annex on the part of the EC, however both sides finally agreed on a

mutually satisfactory text. The agreed provisions on Tourism Services have finally been

incorporated in Section 6 of the Title on Investment, Trade in Services and E-Commerce, andform part of Chapter 5 on Regulatory Framework. .

The Tourism Section of the EPA introduces for the first time disciplines on anti-competitivepractices of tourism operators specific to the tourism industry. The global tourism industry is

characterised by a vertically integrated market and a consolidated distribution channel controlled

by a limited number of large international players. The Tourism Section of the EPA therefore



21February 2008 2

safeguards the interests of the mainly small firms in the Caribbean in its article on the Prevention

of Anti-competitive Practices, which focuses on behaviour in tourism distribution networks1.

CARIFORUM operators do not currently have the capabilities to fully exploit increased market

access to Europe because of the high cost of marketing in Europe, and their limited access to

market information. The EPA responds to these obstacles through provisions on cooperation,exchange of information and a formal consultation mechanism, involving CARIFORUM and

European officials and industry associations. The consultation and dialogue would be managedby the CARIFORUM-EC Trade and Development Committee, a body specifically created by the

agreement; the Parties also agree to regular dialogue on the issuance of travel advisories.

The Tourism Section also targets other supply-side constraints by providing for access to

technology for firms in CARIFORUM states and facilitating the participation of their SMEs in

the tourism services sector. The Agreement also addresses issues related to sustainable

development and increased environment consciousness through the use of environmental andquality standards.

Human resource development in the Caribbean is another focus of the Section on Tourism whichprovides for assistance and training to service suppliers and support for training institutions.

There are also provisions on cooperation and mutual recognition of qualifications with tourism

being highlighted as one of the priority sectors for dialogue between the relevant professionalbodies in the Caribbean and Europe, and the initiation of mutual recognition no later than three

years after entry into force of the EPA. This is a significant achievement as tourism services is

not normally considered as part of the traditional “professions”.

In Chapter 4 dealing with Temporary Presence of Natural Persons for Business Purpose (Mode

4), there is specific provision for the movement of tourism personnel (hotel representatives, tour

and travel agents, tour guides or tour operators) attending or participating in tourism conventionsor tourism exhibitions under the category Short Term Visitors for Business Purposes. This is a

special category negotiated in the EPA and is complemented by provisions for cooperation

between government officials to facilitate the easier movement of services suppliers.

EC Market Access Commitments on Tourism Services in the EPA

The provisions on cooperation complement the market access commitments for furtherliberalization on both sides. For the purposes of trade negotiations, tourism services have been

categorized using the United Nations Central Product Classification (UNCPC). In the WTO

Services Sectoral Classification List they are presented with the corresponding CPC codes asfollows: (i) Hotels, restaurants and catering (CPC 641-643) (ii) Travel agencies and tour

operators (CPC 7471) (iii) Tourist guide services (CPC 7472).

The EC schedule is divided into the following sections:

1. List of Commitments on Commercial Presence

1Tourism distribution networks refers to tour operators and other tourism wholesalers (both out-bound and in-

bound), computer reservation systems and global distribution systems (whether or not connected to airlines or

provided through the Internet), travel agencies and other distributors of tourism services.



21February 2008 3

2. List of Commitments on Cross-border Services

3. Reservations on Key Personnel and Graduate Trainees4. Reservations on Contractual Services Suppliers and Independent Professionals

Discriminatory restrictions are explicitly stated in the schedule with the country/countries

imposing them; if no restriction is listed, none exists and the sector can be considered opened forthe particular mode of supply. Where countries list Unbound for a particular mode of supply it

means that the country reserves the right to place restrictions on that sector, and essentially hasnot made a commitment to liberalise the sector.

Cross Border Supply of Services

The EC offer on cross-border services combines commitments in cross-border services (Mode 1

- services delivered, for example, via Internet, mail) and consumption abroad (Mode 2 - where a

consumer of services moves into another Member’s territory to obtain a service).

The EC’s commitment on tourism services in the EPA, marginally improves on its WTO offer oncross-border services in the EPA as a result of the expansion of its membership and thescheduling by new Members of similar commitments. Generally the EC Member States have

been more liberal with catering than with Hotels and Restaurants in Mode 1, with the Czech

Republic and Poland joining the group of countries which have no discriminatory restrictions forcatering, while the rest of the sub-sector is Unbound. The other three countries - Estonia, Finland

and Hungary – have no limitations or restrictions in hotels, restaurants and catering. For Mode 1

supply of Travel Agencies and Tour Operator services only Bulgaria and Hungary have not

opened the sector (it remains Unbound). In the WTO, reservations apply in Cyprus, Malta,Slovak Republic and Poland. For Tourist Guide Services, 17 countries have no restrictions. The

following countries have not opened the sector: Bulgaria, Cyprus, Czech Republic, Hungary,

Italy, Lithuania, Malta, Poland, Slovak Republic and Slovenia.

There are no reservations on Mode 2 for any of the three tourism categories. Europeans can

therefore consume tourism services freely in CARIFORUM countries.

The EC has also scheduled Spa services and non therapeutic massages, but this limited to those

that are not provided as relaxation physical well-being services and not for medical or

rehabilitation services under Other Services. CARIFORUM, on the other hand, has scheduledtourism services under Other Services because of its relation to wellness tourism. The EC has not

opened spa services in Mode 1, perhaps because of limited technical feasibility, that is, the

customer would need to be physically present to receive the service. However, the EC has notlisted any reservations in Mode 2.

Commercial Presence

In the List of Commitments on Commercial Presence, or establishment, the EC only includes

countries that have discriminatory restrictions and limitations, therefore where an EU memberstate does not list such a measure in a sector falling under the scope of the agreement, there are



21February 2008 4

no restrictions on market access or national treatment. This mode of supplying tourism services

is very liberal in the EC.

For Hotel, Restaurants and Bars all EC Member States except Bulgaria and Italy have no

restrictions on commercial presence. Bulgaria requires incorporation, and Italy imposes

economic needs tests (ENTs); this compares favourably to the WTO where 7 other States alsohad limitations. For Travel Agencies and Tour Operator services, only Bulgaria and Portugal

have reservations requiring incorporation or maintenance of the firm’s corporate base in thatcountry. In the WTO five EU Member States did not open the sector at all, and 3 applied

economic needs tests as a condition to set up a business. There are no reservations on

commercial presence in any EU state for Tourist Guide Services. In addition, there are norestrictions on spa services.

Temporary presence of natural persons for business purposes

The EC has committed to allowing investors to engage Key Personnel2 and Graduate Trainees3

for every service sector liberalised in the EPA with some country specific reservations. Thetemporary entry and stay of key personnel and graduate trainees will be for a period of up tothree years for intra-corporate transfers, ninety days in any twelve month period for business

visitors, and one year for graduate trainees. Only Bulgaria has maintained reservations in these

categories for Hotel, Restaurants and Catering and Travel Agencies and Tour Operator Services,which stipulate that foreign managers cannot exceed local managers where the state/municipal

share in equity in a Bulgarian company is over 50%. However, 11 EU Member States have

maintained nationality requirements for Key Personnel and Graduate Trainees in Tour Guides

Services as they do in the WTO and Bulgaria has joined this group in the EPA. The nationalitycondition also applies for Key Personnel and Graduate Trainees across the EC for spa services.

The EU has not made an offer on Independent Professionals4

in any of the three tourism sub-sectors. The EU provided access for temporary presence for the Contractual service suppliers5

and categories in the areas of travel agencies, tour operator services and tourist guide services.

For Travel agencies and Tour operators: Belgium requires economic needs tests (ENTs), except

for CSS when the annual wage is above the amount defined by the relevant laws and regulations.

Denmark requires ENTs except for CSS stays of up to three months, while Ireland is only

providing bound access for tour managers. Bulgaria, Greece, Hungary, Lithuania, Latvia, Malta,

2Key personnel includes business visitors and intra-corporate transferees such as managers and specialists

3Graduate trainees have to be employed by an established organization that is a legal entity /juridical person, for at

least one year before taking up the training position; must have a university degree; must carry out training in a legal

entity in the Territory of the other Party.4Independent professionals are individuals, that is, not firms, who are established as self-employed in his country of

origin (but not in the territory of the other Party) and who have concluded a contract to supply services with a final

consumer in the territory of the other Party, but must travel temporarily to the consumer’s territory in order to fulfill

the contract.5

Contractual Service Suppliers are employed by a legal entity firm in either the CARIFORUM or the EC, are not

established in the territory of the other Party, whose employer/organisation has concluded a contract to supply

services with a final consumer in the territory of the other Party, but must travel temporarily to the consumer’s

territory in order to fulfill the contract.



21February 2008 5

Portugal, Romania, Slovak republic require ENTs. Fourteen EU Member States have not

scheduled any restrictions on the temporary movement of CARIFORUM Travel Agents andTour operators; this is a very significant concession. The EC’s EPA commitment is a significant

improvement to its WTO offer where 16 Member States did not open the sector at all, and

several limited their offer to tour managers only.

For Tourist Guide services: The EC’s EPA offer is a significant improvement to its WTO offer

where all EC Member States were closed or almost totally closed for this sub-sector. Austria,Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Germany, Estonia, Finland, Greece,

Hungary, Italy, Latvia, Luxembourg, Malta, Netherlands, Romania, Slovak Republic, Slovenia

and the UK require ENTs for CARIFORUM tour guides to temporarily access their markets.Sweden, has not registered any restrictions, while Spain, France, Lithuania, Poland and Portugal

have reserved the right to introduce future domestic regulation and measures which may restrict

access in this sector.

The EC did not make an offer on Contractual Services Suppliers or Independent Professionals in

Spa Services in the EPA.

CARIFORUM Market Access Commitments on Tourism Services in the EPA

Though the tourism sector is generally effectively open in CARIFORUM States, with limitationsfor foreign investors in the case of small hotels, they improved their binding commitments on

market opening in the tourism sector beyond those made in the WTO. CARIFORUM’s approach

to scheduling was to determine the negotiating position by the specific sub-sectors need for

investment, leading to the following categories: (i) sensitive sectors where there would be littleor no market opening (ii) sectors requiring investment where a liberal approach would be taken

(iii) sectors in which there is an offensive market interest, where requests would be made of the

trading partner (iv) sectors in which there is not particular export capacity or non-sensitive,which were to be used strategically for negotiating leverage.

CARIFORUM adopted the GATS positive list approach for scheduling services offers in theEPA. Therefore, the CARIFORUM schedule of commitments only reflects where States have

made a commitment. If a CARIFORUM State is not listed in the schedule, then it has not made a

commitment to remove restrictions in the particular sector. CARIFORUM States made

individual offers based on the particularities of their respective services markets. These offerswere consolidated to form the CARIFORUM. While there was convergence in broad sectoral

interests, the CARIFORUM schedule has some variance in commitments in some specific

services activities, as the negotiations took into account the internal regional integration processamong Caribbean countries, and the particular sensitivities and needs of individual countries and/

sub-groupings within the Caribbean. In addition, CARIFORUM has left flexibility for policy

makers to introduce measures to protect the domestic industry from surges in temporarymovement of natural persons. CARIFORUM has made commitments in: (i) Hotels, restaurants

and catering (ii) Travel agencies and tour operators (iii) Tourist guide services. Hotels,

restaurants and catering was further disaggregated by some States into Letting services of furnished accommodation, meal serving with full restaurant services, meal services in self-

service facilities, and beverage service facilities with entertainment. Under the category “Other”



21February 2008 6

(tourism services) some CARIFORUM countries made additional commitments on hotel

development, hotel management, marina services and spa services.

The CARIFORUM schedule of commitments on trade in services and on investment do not

include the Bahamas and Haiti, which will make such submissions in the first half of 2008 for

incorporation in the overall CARIFORUM schedules within six months of signature of theagreement.

Cross Border Supply of Services

For Hotels, Restaurants and Catering CARIFORUM scheduled Unbound for Mode 1 across theboard, with the exception of the Dominican Republic which listed no reservations in catering.

There were no reservations on Mode 2, consumption abroad for this category. For Travel

Agencies and Tour Operators, only 5 CARIFORUM countries made an offer, all of which listed

no reservations in Modes 1 and 2. Only the Dominican Republic scheduled Tourist guideservices and listed no reservations on either mode 1 or 2.

Commercial Presence

CARIFORUM countries were generally liberal in their offer on commercial presence for Hotels,

Restaurants and Catering with limitations such as ENTs relating only to small hotels, thedefinition of which ranges from 50-150 rooms. In the case of Trinidad and Tobago, there is a

nationality condition for hotels of less than 21 rooms. For Travel Agencies and Tour Operators,

there are no limitations for the 5 countries making an offer except in Trinidad and Tobago, where

the activity is only allowed for inbound passengers. For Tourist guide services the DominicanRepublic listed no reservations.

Temporary presence of natural persons for business purposes

Where there is a commitment on commercial presence by CARIFORUM, there is an automatic

commitment on Key Personnel and Graduate Trainees. CARIFORUM commitments on CSS andIP were generally limited, with most states scheduling “Unbound except for horizontal

commitments” almost across all tourism sub-sectors where commitments had been made. The

exceptions are in Hotel Development, where Dominica and Grenada have limited entry to the

managerial and specialist skill level. In Marina services, 3 of the 12 scheduling countries,Antigua and Barbuda, St. Lucia and Trinidad and Tobago, scheduled none for all categories

except CSS and IP.

Relationship between the EPA and the WTO

Tourism negotiations in the WTO have not made significant progress, with strong divergenceamong Members regarding the classification of the sector; and the significance of the

particularities of the sector, which some Members propose as a basis for developing specific

disciplines. However, there is consensus on the economic importance of the sector to a widecross-section of the WTO membership, and indeed globally.



21February 2008 7

The EPA negotiations represented an opportunity to reap benefits not achieved in the WTO: to

create meaningful rules for the sector; to establish a common understanding on issues facing thesector, for example in the area of standards; to create mechanisms to make it easier for EU

investors to choose the Caribbean; and to strengthen the capacity of CARIFORUM operators to

increase tourism exports and competitiveness. The EPA Tourism Section incorporates elements

of proposals on tourism, including those sponsored by the Dominican Republic and friends in theWTO in 2000 and 2001.

The region’s positions on international trade in tourism services coalesced through preparatory

consultations across CARIFORUM States and direct input from the region’s tourism and hotel

associations and other stakeholders. CARIFORUM has successfully advanced its position in thenegotiations, leading to disciplines on tourism in the EPA, and the creation of a common

understanding on tourism disciplines among almost a third of the WTO membership.



EEPPAA:: L L e e g g a a l l a a n n d d I I n n s s t t i i t t u u t t i i o o n n a a l l I I s s s s u u e e s s



1

CRNM BRIEF ON LEGAL AND INSTITUTIONAL ISSUES IN THE EPA

A. PARTIES TO THE AGREEMENT

The EPA is a region to region agreement and as such for the specific purposes of theAgreement, there are only two Parties to it, namely, the CARIFORUM States

(collectively) on the one hand and the European Community and its member states on theother hand. Each CARIFORUM State however is a recognized as a contracting Party to

the Agreement and this means that each such state is actually recognized as a “party” to

the Agreement in international law, with the result that each such state is obliged tocomply with the obligations imposed undertaken by it and is entitled to the due

performance of the obligations undertaken by other states.

In keeping with the notion of a region to region agreement, in areas where the capacity toaccept collective obligations currently exists or has been contemplated, the

CARIFORUM States have agreed to accept collective obligations. In areas however,where there is no existing regional competence and none such is contemplated orfeasible, the Agreement provides for the CARIFORUM states to be individually

responsible for discharging the obligations imposed upon them.

A further consequence of the region to region nature of the Agreement, is that dispute

settlement proceedings are also region to region in nature. In other words, such

proceedings have to be between the two Parties and not between the EC Party on the one

hand and an individual CARIFORUM State on the other for example. Thisnotwithstanding, the Agreement clearly provides that in cases where one or more

CARIFOURM States have failed to abide by their obligation under the Agreement with

the consequence that through the dispute settlement process, the EC has earned the rightto impose sanctions, such sanctions will only be imposed on the particular CARIFORUM

State or States whose measures have been found to be in breach of the Agreement.

B. DISPUTE SETTLEMENT

As in the WTO dispute settlement system, the dispute settlement mechanism of EPAemploys a consultation and dispute settlement panel type procedure. Upon a dispute

arising between the Parties, they are obliged to first enter into consultation with a view to

resolving the contentious issues between them. Where the consultations fail to resolve theissues in dispute, the Parties may then request the establishment of an arbitration panel to

resolve the dispute. Prior to requesting the establishment of a dispute settlement panel,

and after the consultations have been completed, the Parties as a further step in aid of finding an amicable resolution to their dispute, can refer the matter to a mediator.

It has already been noted that where the EC Party is the successful party to disputesettlement proceedings and has earned the right to impose sanctions, it must,

notwithstanding the region to region nature of the dispute settlement process,



2

specifically impose those sanctions only on the CARIFOPRUM State or States whose

measures have been found to be in breach of the Agreement. There is asymmetryinherent in the dispute settlement provisions as evidenced by Article 214 (3) which

obliges the EC to exercise due restraint in seeking trade related compensation from the

CAROIFORUM States or in seeking to impose appropriate measures against a

CARIFORUM state who has not complied with a determination of the Arbitration panelthat its measures must be brought into conformity with the EPA provisions. There is no

corresponding obligation on the CARIFORUM States.

C. INSTITUTIONS

Part V of the CARIFORUM-EC EPA establishes the following institutions each of which

have been vested with specific responsibilities essential to ensuring that the objectives of

the partnership are met.

(i) The Joint CARIFORUM - EC Council

(ii)

The CARIFORUM-EC Trade and Development Committee(iii) The CARIFORUM-EC Parliamentary Committee(iv) The CARIFORUM-EC Consultative Committee

The Joint CARIFORUM EC Council

This is the highest institution created by the EPA and will meet at Ministerial level at

regular intervals not exceeding two year periods. This institution is charged with the

responsibility of supervising the implementation of the EPA and is vested with normativepowers in that it may take decisions concerning any aspect of the agreement which will

be binding on the Parties.

The CARIFORUM –EC Trade and Development Committee

This is the second highest institutional body of the EPA and is charged with theresponsibility of assisting the Joint CARIFORUM-EC Council in supervising the

implementation of the Agreement. In practical terms, this body will be the “work horse”

of the trade partnership, having been vested with specific responsibilities vital to ensuring

that all matters affecting the partnership are resolved in an expeditious manner and thatthe development dimension of the Agreement is fulfilled. The Trade and Development

Committee has therefore been vested with specific trade related and development related

functions. Examples of these responsibilities are:

In the area of trade:

(a) to supervise and be responsible for the implementation and proper application of

the provisions of the Agreement and to discuss and recommend cooperation priorities

(b) to undertake action to avoid disputes and to resolve disputes that may arise

regarding the interpretation or application of the Agreement,



3

(c) to discuss and undertake actions that may facilitate trade, investment and businessopportunities between the Parties,

and, in the area of development:

(a) to monitor the implementation of the cooperation provisions laid down in the

Agreement and to coordinate such action with third party donors,

(b) to make recommendations on trade-related cooperation between the Parties;

(c ) to keep under periodic review the cooperation priorities set out in the Agreement,

and to make recommendations on the inclusion of new priorities, as appropriate.

The CARIFORUM –EC Parliamentary Committee

This Committee is to be comprised of representatives of the European Parliament on theone hand and of the legislatures of the CARIFORUM States on the other hand and will

provide a forum for these persons to meet and exchange views on the process of

implementation of the EPA and any other matter relative to the agreement. Such a forumwas deemed necessary given the emphasis of the EPA on promoting the sustainable

development of the CARIFORUM States and in furthering the traditions of good

governance of the each of the Contracting parties of the Agreement.

The CARIFORUM-EC Consultative Committee

This Committee is designed to be a forum for civil society to become engaged in the EPAimplementation process. Its composition will be determined upon by the Joint

CARIFORUM-EC Council in a manner that will ensure broad representation of interests.

This body is also crucial to ensuring that appropriate information and ideas emerge thatwill contribute to the fulfillment of the development dimension of the EPA.

The concern has been expressed that the EPA institutions conflict with the powers and

autonomy of the organs created by the Revised Treaty of Chaguaramas to govern theCaribbean Community (CARICOM).

Article 10 of the Revised Treaty establishes these Organs of the Community as being thefollowing:

(i) The Conference of Heads of Governments(ii) The Community Council of Ministers

(iii) The Council for Finance and Planning

(iv) The Council for Trade and Economic Development(v) The Council for Foreign and Community Relations and,

(vi) The Council for Human and Social Development



4

It must be appreciated that these institutions have functions specific only to the internal

administration of the Community, with respect to the conclusion of agreements on behalf of the Community and with respect to determining the internal and external policies of

the Community. Article 12 (2) of the Revised Treaty provides for example that “the

Conference [of Heads of Governments] shall determine and provide policy direction for

the Community.” With respect to the Community Council of Ministers, (the secondhighest organ of the Community) Article 13 provides for example that this Council“…shall, in accordance with the policy directions established by the Conference, have

primary responsibility for the development of Community strategic planning and

coordination in the areas of economic integration, functional cooperation and external

relations.”

In contrast, the EPA institutions have functions and responsibilities relative only to the

implementation and operationalisation of the trade partnership constituted by the EPA

and do not have roles in determining the internal or external policies etc of theCommunity or of any CARIFORUM State. It is sufficient to note the following

provisions of the EPA which set out the functions of the Joint CARIFORUM-EC Counciland the CARIFORUM EC Trade and Development Committee which make this pointeminently clear:

Article 227

Joint CARIFORUM-EC Council

1. A Joint CARIFORUM-EC Council is hereby established, which shall supervise the implementation of this Agreement…

2. Without prejudice to the functions of the Council of Ministers as

defined in Article 15 of the Cotonou Agreement, the Joint CARIFORUM-

EC Council shall generally be responsible for the operation and

implementation of this Agreement and shall monitor the fulfilment of its objectives. It shall also examine any major issue arising within the

framework of this Agreement, as well as any other bilateral, multilateral

or international question of common interest and affecting trade between

the Parties.

3. The Joint CARIFORUM-EC Council shall also examine proposals

and recommendations from the Parties for the review of this Agreement.

Article 230

CARIFORUM-EC Trade and Development Committee



5

3. The CARIFORUM-EC Trade and Development Committee shall

have, in particular, the following functions:

(a) In the area of trade:

(i) to supervise and be responsible for the implementation and proper application of the provisions of the Agreement and to discuss and

recommend cooperation priorities in this regard; …

(b) In the area of development:

(i) to assist the Joint CARIFORUM-EC Council in the performance of its

functions regarding development cooperation related matters falling

under this Agreement…

The highlighted portions serve to clearly indicate the scope of operation of these

bodies, namely with restriction only to matters arising under the EPA. As such,the bodies are no more incompatible with the CARICOM organs than are theother institutions created by other international agreements (for example, the

WTO General Council) to ensure the proper implementation of those

arrangements.

D. RELATIONSHIP BETWEEN THE EPA AND THE COTONOU

AGREEMENT AND THE WTO AGREEMENTS

The EPA has been designed to replace the now expired transitional trade regime of the

Cotonou Agreement and does not therefore conflict with the continuing provisions of thatAgreement. Rather, the EPA reinforces some of the core provisions of the Cotonou

Agreement such as Articles 2 and 9 dealing with the fundamental principles and the

essential and fundamental elements of that Agreement respectively. By virtue of its manyprovisions on development cooperation, the EPA also complements the developmental

aspects of the Cotonou Agreement. This notwithstanding, as a safeguard measure,

Article 241 of the Agreement provides that with the exception of the development

cooperation provisions of the Cotonou Agreement, in the event of a conflict between theprovisions of the EPA and those of the Cotonou agreement, the provisions of the EPA

will prevail.

Article 36 (1) of the Cotonou Agreement mandates that EPAs must take the form of

WTO compatible arrangements. This primarily meant that the EPAs should meet the

criteria established by Article XXIV of the General Agreement on Tariffs and Trade(GATT) 1994, a WTO compatible Free Trade Agreement but arguably also, that as far as

possible, EPA provisions should not conflict with WTO obligations. In compliance with

this mandate, the EPA has been designed to meet the core requirements for compatibilitywith GATT Article XXIV, one of which is the liberalization of substantially all the trade



6

between the Parties within the time allowed to do so by the Understanding on the

Interpretation of GATT Article XXIV.

The Parties have also taken every precaution to ensure that the EPA’s negotiated

commitments do not conflict with the provisions of the WTO Agreements and Article

242 specifically provides that nothing in the Agreement obliges the Parties or any of theCARIFORUM State to act in a manner inconsistent with their WTO obligations. To

ensure further coherence between the EPA and the existing or future WTO agreementsand with a view to defending the new arrangements in the WTO, the Parties are obliged

pursuant to Article 6 to endeavour to cooperate in all international fora where issues

germane to the Partnership are discussed.



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CARIFORUM/EU Economic Partnership Agreement (EPA) – Treatment of Fisheries

The fisheries sector in CARIFORUM is explicitly recognized in the EPA through the provisions contained

in the Chapter on Agriculture and Fisheries. This Chapter acknowledges the social and economic

importance of the fisheries sector and the need to maximize the benefits of its sustainable exploitation

in relation to factors such as food security, employment, poverty alleviation, foreign exchange earningsand social stability of fishing communities. It goes on to recognize the fragile nature of the region’s

complex and highly diverse fisheries and marine eco-systems and thus the need to employ effective and

scientifically-based conservation and management techniques in its exploitation. Further, in view of the

importance of safeguarding the livelihoods of fishing communities, the EPA recognizes the need to avoid

any major disruption of markets for fish products in CARIFORUM States.

These objectives are translated into concrete measures in the following ways. First, the EU and

CARIFORUM have agreed to establish an information exchange and consultation process that would

focus, inter alia, on production, consumption and marketing; technology development; investment

promotion; and policy-related issues. Next, specific projects will be drawn up and implemented with EUfunding to address areas such as processing, marketing, improving compliance with technical and quality

standards, investment promotion, and building regional intuitional capacity for sustainable management

and trade in fisheries products.

In relation to the tariff liberalization for fisheries products, the following should be noted. Of the total

imports by CARIFORUM of fisheries products from the EU, which averaged US$9,643,723 for the 2002-

2004 period, CARIFORUM will totally exclude 66% from any liberalization commitment. Of the

remainder, 33% will be liberalized in 20 years and an additional 1% in 25 years. The products to be

liberalized are those not generally produced in the region, such as salmon, tuna, herrings, mackerel,

sardines and cod. As with all market access commitments, CARIFORUM will not be required toundertake any tariff reductions until 2011. All fish and fish products entering the EU market will be duty-

free and quota-free, thereby locking in the preferences that existed under the Cotonou Agreement.

In relation to inputs for the fishing industry, CARIFORUM has committed to eliminating the duties on

fishing vessels at the start of its tariff liberalization programme, i.e. 2011. Elimination of duties on other

inputs, such as fishing nets and rods will take place over a 15 year period.

The Rules of Origin for fisheries products have also been adjusted, compared to those applicable under

the Cotonou Agreement. One such innovation allows processed fish products, such as fillets and dried or

salted fish, to qualify for duty free treatment even though the raw material would have been accessed

outside of the territorial waters of the country, subject to the qualification that the value of the non-originating materials must not exceed 15% of the ex works price of the finished product.

The rules, as they stand, require that fish will only qualify for “originating” or preferential treatment

once they are obtained either a) from inland waters or within the territorial waters (12 nautical miles) of

the states, or b) by vessels of either the CARIFORUM states or the EU. Notwithstanding the basic rule

based on the ownership of vessels, the EU has committed to allowing fish caught in the Exclusive



2

Economic Zones (EEZs) of CARIFORUM states to qualify for origin treatment, provided that this is done

with vessels leased or chartered by operators of the CARIFORUM country, and that EU operators would

have been given the right of first refusal. A similar, though not identical, provision existed under the

Cotonou Agreement.

CARIFORUM countries did, however, argue for a more complete overhaul of the Rules of Origin forfisheries. African, Caribbean and Pacific (ACP) states have long insisted that fish caught within their EEZs

of, and obligatorily landed in their states, should automatically qualify as originating goods but this has

been opposed by the EU. To this end, a declaration on the part of CARIFORUM countries has been

attached to the EPA text, which sets out the group’s position and signals that the issue will be brought

up for further negotiation in the future. In addition, both CARIFORUM and the EU have committed in

another declaration to continue examining the issue, within the Special Committee on Customs

Cooperation and Trade Facilitation, with a view to reaching a satisfactory solution.

With respect to commitments on investment in the fisheries sector through “commercial presence”,

(dealt with under the Title on Services and Investment) several CARIFORUM states have indicated

reservations on the entry of EU investors to the industry. Most have indicated that they reserve the right

to adopt or maintain measures on investment in the sector. For some states, there are differential

requirements (such as fees) for nationals and non-nationals in the eligibility for fishing licences,

restriction of foreign licences to nationals of countries with which the state has a treaty, and restriction

of entry into the artisanal fishery to nationals.

ND

February 19, 2008



EEPPAA:: R R u u l l e e s s o o f f O O r r i i g g i i n n



Rules of Origin

In the CARIFORUM-EC

EPA

Introduction

Rules of origin govern the qualification of goods for benefit of the

preferences available under a free trade arrangement, such as the Economic

Partnership Agreement (EPA) between CARIFORUM and the EC. These

arrangements can be set down in three areas:

• The production or manufacture and consignment of the goods;

• The certification of the goods as being eligible for preference;

and

• The provisions for administrative co-operation including

verification of origin.

This brief review of the conclusions of the negotiation of the EPA in the area

of rules of origin addresses the outcome in these three areas with reference to

the arrangements which obtained under the Cotonou Agreement.

Background

It is necessary to set this review against the contrasting initial positions

adopted by the two Sides in the negotiations and the resolution of these

differences.

CARIFORUM took the view at the outset that the provisions of Article 37 of

the Cotonou Agreement, which called for a review of the rules of origin in the

negotiation of the EPA, required an effort to take account of the concerns of

CARIFORUM exporters, in particular in those cases where the rules of origin

inhibited qualification of CARIFORUM exports for preferential access. At

the same time, CARIFORUM also made it clear that the structure of the rules

of origin in the Cotonou Agreement was acceptable for retention in the EPA.

The EC presented an initial proposal which called for substantial and far-

reaching change in the structure and detailed requirements of the rules of origin. These changes called inter alia for the provision of value-added

conditions across the board (in substitution for the Cotonou structure which

largely utilised conditions linked to change in tariff heading of third country

materials), the discontinuance of certification of origin with the substitution of

registration of exporters and changes in the verification procedures.



2

In the end, the rules of origin in the CARIFORUM-EC EPA maintain the

structure of the rules of origin in the Cotonou Agreement while providing for

changes in the conditions governing production and manufacture of some

goods and some adjustments in the other provisions.

One additional factor needs to be stated. The rules of origin in the EPA apply

to production and trade in both directions – trade from the EC States to

CARIFORUM States and vice versa. CARIFORUM adopted the position that

the provision of asymmetrical rules of origin would not have any useful

effect, having regard to the developed economies and the availability of

materials and production facilities in the EC.

Arrangements Dealing With Production Or Manufacture And

Consignment

The CARIFORUM-EC EPA provides relaxed qualifying conditions on anumber of products of export interest to CARIFORUM States including

biscuits and other bakery products, jams and jellies, fruit juices and other

beverages, garments, knitted and non-knitted, and air conditioning units. The

submissions on behalf of the producers suggest that these changes will allow

for CARIFORUM production to enjoy the preferences available under the

EPA.

The provisions dealing with consignment remain unchanged – goods must be

consigned directly from the country of production or manufacture to the

consignee in the importing State.

Certification of Goods as Eligible for Preference

The arrangements for certification of origin which were in place under the

Cotonou Agreement have been maintained.

Administrative Co-Operation Including Verification of OriginThe arrangements for administrative co-operation and verification of origin

remain largely unchanged.



EEPPAA:: T T r r e e a a t t m m e e n n t t o o f f P P r r o o f f e e s s s s i i o o n n a a l l

S S e e r r v v i i c c e e s s



February 2008

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1

CARIBBEAN


THE TREATMENT OF PROFESSIONAL SERVICES IN THE EPA

In the CARIFORUM-European Community (EC) Economic Partnership Agreement

Negotiations, the Parties negotiated provisions on market access and mutual recognition and

cooperation in Professional services. General provisions on professional services can be found inthe Title on Investment, Trade in Services and E-commerce. This text is accompanied in annexes

by the respective schedules of commitments of CARIFORUM and the EC for Trade in Services,

and for Investment; the Protocol on Cultural Cooperation

For the purposes of trade negotiations, professional services have been categorized using the

United Nations Central Product Classification (UNCPC). In the WTO Services Sectoral

Classification List they are presented with the corresponding CPC as follows: (i) legal services(ii) accounting, auditing and bookkeeping service (iii) taxation services (iv) architecture (v)

engineering (vi) integrated engineering (vii) urban planning and landscape architectural services

(viii) medical and dental services (ix) veterinary services (x) services provided by midwives,nurses, physiotherapists and para-medical personnel (xi) other professional services.

The trade negotiations focus on the removal of barriers to supplying services in relation to:(i) market access, the ability of foreign services suppliers to operate in the domestic

territory or to provide services to domestic consumers, and

(ii) national treatment, the extent to which foreign services suppliers are treated like

domestic services suppliers.

With respect to professional services, there are also provisions for cooperation and mutual

recognition of qualifications as well as technical assistance for the tourism sector. To facilitatethe movement of services suppliers between Europe and the Caribbean, the EPA includes special

provisions for Short Term Visitors for Business Purposes. This allows CARIFORUM nationals

to visit the EU for brief periods for business reasons related to research and design, marketing,training, trade fairs, sales, purchasing and tourism. While the EPA does not commit the Parties

for issuing visas, both sides commit to making movement across borders easier.

In the agreement, provisions on market access in Investment in goods and services were

presented in a separate schedule from market access in services. The provisions in the Title and

reservations in the investment schedules of commitment relate to commercial presence; that is

where the investor creates and maintains a legal entity, such as a branch or representative officein the territory of the other Party. Investment provisions include rules on corporate governance;

sustainable development & environmental protection; labour rights and labour standards.

Certain services are not liberalized under the agreement, namely: social security & pensions, and

government supplied services such as public health, energy, water. The agreement also maintains



February 2008

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2

the rights of states to employ domestic regulations, such as minimum qualification, licensing and

procedural requirements. There is therefore a need to get information on regulatory regimes forservices sectors in different EU economies and in CARIFORUM through the Enquiry Points

designated by the Parties in the agreement. The agreement does not apply to measures relating to

citizenship, residency, employment; immigration; or those aimed at safeguard human, animal

and plant life or health; public safety; morals; national security.

EC Market Access Commitments

Preferential access to the EU services market was a priority for CARIFORUM in the

negotiations, because of the size, steady growth, and increasing integration of the Europeanservices market, which consists of 27 countries. Therefore, CARIFORUM tried to realise market

access is some areas not scheduled by the EC or with less than full commitment in the World

Trade Organisation (WTO) negotiations, in which commitments to market openings would be

for the benefit of all WTO Members. Some of the restrictive measures targeted were:Restrictions on senior management/directors, residency and nationality requirements, and

economic needs tests (ENTs).

The EC schedule is divided into the following sections:

1. List of Commitments on Commercial Presence

2. List of Commitments on Cross-border Services3. Reservations on Key Personnel and Graduate Trainees

4. Reservations on Contractual Services Suppliers and Independent Professionals

Measures relating to qualifications requirements and procedures, technical standards andlicensing requirements and procedures that do not discriminate in terms of “national treatment”

are not listed in the schedules of commitment.

Commercial Presence

The List of Commitments on Commercial Presence lists reservations and limitations only,therefore where an EU member state does not list such a measure in a sector falling under the

scope of the agreement, there are no reservations. The EC was generally liberal in its

commitments on commercial presence, with a range of business services, telecommunications

services and maritime transport services being subject to no discriminatory restrictions orreservations on investment. However, there are some limitations on certain professional services,

namely: legal services; accounting, auditing and bookkeeping service; taxation services; medical

and dental services. Restrictions include maximum foreign equity participation, joint venturerequirements, quotas (legal services), specific legal form, economic needs tests, and minimum

years of practice in the territory (Latvia for architecture and urban planning). Of the 27 EU

States, the maximum number of countries listing reservations in a professional services categoryis 10 in auditing services. A few countries have listed “Unbound” in the health related

professional services, with the most countries (four) doing so for midwives services (Belgium,

Finland, Malta, Slovenia).



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Cross-border Services

The EC offer on cross-border services combines commitments in cross-border services (Mode 1

- services delivered, for example, via internet, mail) and consumption abroad (Mode 2 - where a

consumer of services moves into another Member’s territory to obtain a service). The

reservations listed by the EC relate to all the professional services listed in the W/120. The EC isrelatively conservative in its Mode 1 commitments when compared to Mode 2, with several

countries reservations and ‘Unbound’ in Mode 1, while there are no reservations in Mode 2.There are only reservations in Mode 2 for legal advisory services, where 15 EU listed

reservations for both Modes 1 and 2, bit none listed the sector as Unbound for the sector in cross-

border services. For Mode 1, auditing services are limited in 21 states; architecture and urbanplanning and landscape architectural services in 13 states; medical and dental services in 21

states; veterinary services in 23 states, and; services provided by midwives, nurses,

physiotherapists and para-medical personnel in 26 states.

The EC’s level of commitments in Mode 1 is generally less than ideal for CARIFORUM, given

the latter’s potential to export services via mode 1 as a result of the advances intelecommunications services and the relatively high cost of physical commercial presence inEurope.

Temporary movement of services suppliers (natural persons)

The EC has committed to allow investors to engage Key Personnel and Graduate Trainees for

every services sector subject to liberalisation in the EPA with some country specific reservations.

The temporary entry and stay of key personnel and graduate trainees will for a period of up tothree years for intra-corporate transfers, ninety days in any twelve month period for business

visitors, and one year for graduate trainees. In terms of reservations, nationality and residency

requirements apply for at least a few countries in all profession services, to a lesser extent inaccounting, auditing and bookkeeping services, and taxation advisory services. They apply more

widely to the health related professional services.

In Mode 4, though certain conditions remain for European and Caribbean services suppliers, the

EC has granted market access for Caribbean professionals in 29 sectors for employees of

Caribbean firms or Contractual Service Suppliers (CSS) to be able to enter the EU to supply

services once they get a contract for up to six months in a calendar year. This represents asignificant improvement when compared to the EC’s offer in the WTO. In addition, independent

Professionals or self employed professionals have access to the EU in 11 sectors.

These improvements applied to the following professional services:

(i) Legal advisory services in respect of public international law;

(ii) Accounting and bookkeeping service;(iii) Taxation advisory services;

(iv) Architectural services;

(v) Urban planning and landscape architectural services;(vi) Engineering;



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(vii) Integrated engineering;

(viii) Medical (including psychologists) and dental services;(ix) Veterinary services;

(x) Services provided by midwives, nurses, physiotherapists and para-medical

personnel.

Certain conditions still apply, such as economic needs tests but there are no restrictions on the

number of service suppliers that may enter the EU market. However, this level of quota freemarket access commitment in services is unprecedented in EU services trade commitments at the

bilateral level and the multilateral level. A few countries have scheduled “Unbound” for CSS and

IP in professional services, that is have not made a binding commitment to open the sector,especially in health related services; the sectors affected are: taxation advisory services, medical

and dental services, veterinary services, services provided by midwives, nurses, physiotherapists

and para-medical personnel.1

CARIFORUM Commitments on Professional Services

CARIFORUM adopted the GATS positive list approach for scheduling services offers in theEPA. CARIFORUM States made individual offers based on the particularities of their respective

services markets; these offers were consolidated to form the CARIFORUM. While there was

convergence in broad sectoral interests, the CARIFORUM schedule has some variance incommitments in some specific services activities, as the negotiations took into account the

internal regional integration process among Caribbean countries, and the particular sensitivities

and needs of individual countries and/ sub-groupings within the Caribbean.

The CARIFORUM schedule of commitments on trade in services and on investment do not

include the Bahamas and Haiti, which will make such submissions in the first half of 2008 for

incorporation in the overall CARIFORUM schedules within six months of signature of theagreement. The Title also includes provisions for future liberalization, with negotiations

scheduled to begin no later than five years after entry into force of the agreement.

CARIFORUM’s approach to scheduling was to determine the negotiating position by the

specific sub-sectors need for investment, leading to the following categories: (i) sensitive sectors

where there would be little or no market opening (ii) sectors requiring investment where a liberal

approach would be taken (iii) sectors in which there is an offensive market interest, whererequests would be made of the trading partner (iv) sectors in which there is not particular export

capacity or non-sensitive, which were to be used strategically for negotiating leverage.

1EU States scheduled “Unbound” for CSS & IP in professional services as follow: Poland - taxation advisory

services; Belgium, Greece, Finland, France, Hungary, Latvia, Lithuania, Slovak Republic - medical and dental

services; Austria, Bulgaria, France, Hungary, Latvia, Slovak Republic - veterinary services; Bulgaria, Finland,

France, Hungary, Slovak Republic - midwives, nurses, physiotherapists and para-medical personnel



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All CARIFORUM states have liberalized some professional services activity in the EPA, in at

least one mode in the EPA.2

Fewer countries undertook commitments in legal services, whichwere limited to home and international law, legal documentation and certification, and legal

advisory and information services.

CARIFORUM States have generally been somewhat liberal with commitments on cross-borderservices and commercial presence in the EPA because of the effective level of liberalisation

already existing in their territories. Unbound was scheduled for Modes 1 and 2 by a fewcountries in legal services, taxation, accounting auditing and bookkeeping, architectural, urban

planning and medical and dental services. Some states reflected their sensitivities in commercial

presence by scheduling ‘unbound in sectors such as engineering and health-related professionalservices. Joint-venture requirements were also widely used, and economic needs tests to a lesser

extent.

Where there is a CARIFORUM commitment on commercial presence, there is an automaticcommitment regarding Key Personnel and Graduate Trainees. A few countries made specific

commitments in CSS and IP in their overall commitments, including legal services (Belize,Dominica, Grenada, St. Lucia). While some countries scheduled ‘none’ (no restrictions except onCSS and IP where commitments had to be explicitly stated), for example Trinidad and Tobago

for veterinary services, most CARIFORUM countries scheduled ‘Unbound’ for temporary

movement of natural person except as stated in the horizontal (overarching commitments).Residency requirements were also used in professions such as architectural services.

Some of the commitments will be phased-in over time in some member states, which is an

approach taken to address sensitivities at the national level.

Mutual recognition

Currently, EC directives on mutual recognition of diplomas only apply to EC nationals, and the

right to practise in one Member State does not grant the right to practise in another Member

State. The EPA provides for the initiation of meetings between professional bodies of CARIFORUM and the EC for the negotiation of mutual recognition agreements no later than

three years after entry into force of the EPA. Such an agreement would essentially be to accept

each other’s methods of accrediting professionals in the respective educational and certification

systems. The rights of access of qualified CARIFORUM professionals to the European servicesmarket will not be reduced pending negotiation of MRAs, and CARIFORUM and European

professionals will be required to comply with any European industry standards, qualifications

and criteria in the territory of the other Party. Based on consultations with each other,professional bodies of both regions will make recommendations on mutual recognition to a Joint

Committee created by the agreement, which will assess their consistency with the EPA and

WTO obligations. The Joint Committee will also review progress in MRA negotiations everytwo years.

2Other services activities in which CARIFORUM undertook commitments include: computer and related; research

and development; environmental services; management consultancy; maritime transport; entertainment; and tourism.



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With respect to the temporary movement of professionals, disciplines on accounting,

architecture, engineering and tourism are noted as a priority for dialogue between the relevantprofessional bodies in the Caribbean and Europe, with a view to signing a mutual recognition

agreement (MRA) no later than three years after entry into force of the agreement. Given the

limited institutional capacity of some professional associations in CARIFORUM, standards for

CARIFORUM-EC recognition will need to be developed by appropriate professionalaccreditation bodies, and supported by any necessary legislative measures. The EPA provides for

European cooperation in this regard.

Relationship between the EPA and the CSME process

A common regime for professional services would create a seamless CARICOM professional

services market and enable easier negotiations with external professional bodies of mutual

recognition agreements that could apply equally to all Member States. This would be a moreefficient approach than the negotiation of different MRAs by each CARICOM State. Indeed, the

European Union has recognised the importance increased efficiency in the professional services

market through its own Professional Services Directive, which was designed to integrate theservices markets of its Member States.

So too has the CARICOM Community, Article 35 of the Revised Treaty of Chaguaramas,

Acceptance of Diplomas, Certificates and other Evidence of Qualifications, designates the

Council on Human and Social Development (COHSOD) as the competent Community organ to

oversee domestic regulation.

1. COHSOD … shall establish common standards and measures for accreditation or when necessary for the

mutual recognition of diplomas, certificates and other evidence of qualifications of nationals of the

Member States in order to facilitate access to, and engagement in, employment and non-wage earning

activities in the Community;

2. The Member States shall establish or employ … appropriate mechanisms to establish common standardsto determine equivalency or accord accreditation to diplomas, certificates and other evidence of

qualifications secured by nationals of other Member States;

3. COHSOD shall also establish measures for the coordination of legislative and administrative requirements

of the Member States for the participation of Community nationals in employment and for the conduct of

non-wage earning activities in the Community.

Integration of the CARICOM professional services market is well underway. The CARICOM

Secretariat, in consultation with Member States and the relevant professional bodies have drafted

the legislation specific to dentists, veterinarians, medical practitioners, nurses and mid-wives,

pharmacists, architects, engineering, accountancy, consultancy and building contracting. SeveralMember States have integrated specific provisions of this CARICOM Professionals legislation,

but few have adopted them in their entirety.

In the January 2008 meeting Joint meeting of the CARICOM Council on Trade and Economic

Development (COTED) and the COHSOD considered the latest draft of the Professional

Services Bill, considered the policy and financial implications of standardisation andharmonisation at the regional level and agreed to allocate the necessary resources to the

initiative.



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CARICOM-Dominican Republic Trade and Economic Integration

CARICOM and the Dominican Republic signed a free trade agreement (FTA) in 1998, yet

implementation has been limited to goods while progress on the built-in agenda on Trade inServices, Government Procurement, Intellectual Property and Trade Facilitation remains

outstanding. The CARICOM-DR FTA gives explicit priority to “the promotion and developmentof co-operative activities” in professional services; to the certification of professionals to carryout functions related to sanitary and phyto-sanitary measures (SPS) and technical barriers to

trade (TBT). The Plan of Action of the Agreement prescribes negotiation of the Annex on

Temporary Entry of Business Persons and the Appendix to the Annex on Trade in Services

relating to Professional Services.

Given the negotiation of the EPA with the Dominican Republic as a single regional bloc, and the

focus of the EPA initiative on market efficiency through regional integration, the CARICOM-DR FTA should have ideally been advanced during the Regional Integration Phase, the second of

four phases of the negotiations, September 2004-2005. However, the timing and substance of

that negotiation will be based on an assessment of the EPA outcomes and the planned approachto CARIFORUM integration, the desirability of which was affirmed in the Title on Investment,

Trade in Services and E-Commerce.

The EPA commitments on EC development assistance are supportive of CARIFORUM regional

integration, CARIFORUM-wide projects, institutions and regulatory CARIFORUM

regimes/regimes or bodies for the implementation of the agreement. With respect to professionalservices, the next step should perhaps be to ensure the mutual recognition of qualifications of the

Dominican Republic and CARICOM, to ensure that movement between CARIFORUM is not

more restrictive than between individual CARIFORUM States and Europe.



EEPPAA:: P P r r o o v v i i s s i i o o n n s s o o n n C C u u s s t t o o m m s s & & T T r r a a d d e e

F F a a c c i i l l i i t t a a t t i i o o n n



Getting to Know the EPA Provisions on Customs and Trade Facilitation

1

EPA Provisions on Customs and Trade Facilitation

The EPA creates reciprocal obligations in the area of Customs and Trade Facilitation for

the EC and CARIFORUM countries with the objective of ensuring effective control

while improving efficiency, transparency and non-discrimination in customs operationsand border management procedures of the Parties.

The Chapter places strong emphasis on co-operation on customs matters between the EC

and CARIFORUM. It recognizes the differences in the level of institutional development

and capacities of the Customs Administrations in the EC and CARIFORUM, particularly

in relation to the application of best practices and international standards. As a result, a

number of the commitments to be undertaken by CARIFORUM are conditional on the

provision of technical and technological assistance, financial support and training.

The Agreement establishes a clear link between specific (CARIFORUM) commitments

and the delivery of development support in the following areas:

a. the application of modern customs techniques, including risk assessment, advance

binding rulings, simplified procedures for entry and release of goods, post release

controls and company audit methods;

b. introduction of procedures and practices which reflect as far as practicable,

international instruments and standards applicable in the field of customs and

trade, including WTO rules and WCO instruments and standards, inter alia the

revised Kyoto Convention on the simplification and harmonisation of customs

procedures and the WCO Framework of Standard to Secure and Facilitate Global

Trade; and

c. The automation of customs and other trade procedures.

Specific provisions aimed at improving transparency, efficiency, integrity and

accountability of customs operations include commitments to:

(i) Reduce, simplify and standardize data and documentation;

(ii) Simplify requirements and formalities wherever possible, in respect of the

rapid release and clearance of goods;

(iii) Make publicly available (as far as possible through electronic means) all

legislation, procedures and fees and charges, as well as whenever possible the

necessary explanations.(iv) Conduct timely and regular dialogue with economic operators on legislative

proposals related to customs and trade procedures;

(v) Provide, wherever possible, advance information to economic operators when

new or amended legislation and procedures are introduced.



Getting to Know the EPA Provisions on Customs and Trade Facilitation

2

Protocol II on Mutual Administrative Assistance in Customs Matters provides an

operational framework for information sharing and collaboration between EC and

CARIFORUM Customs Authorities in order to ensure the correct application of their

respective customs legislation, in particular by preventing, investigating and combating

operations in breach of customs legislation.



EEPPAA:: S S p p e e c c i i a a l l & & D D i i f f f f e e r r e e n n t t i i a a l l T T r r e e a a t t m m e e n n t t

P P r r o o v v i i s s i i o o n n s s



1

CARIBBEAN


SPECIAL AND DIFFERENTIAL TREATMENT PROVISIONS IN THE CARIFORUM-ECECONOMIC PARTNERSHIP AGREEMENT

Background

1. Before proceeding to chronicle the Special and Differential Treatment (S&DT) provisionscontained in the CARIFORUM-EC Economic Partnership Agreement (EPA), it is firstnecessary to have a fundamental understanding of the concept.

2. S&DT is an established principle in the GATT and WTO legal system. Essentially, it is afundamental right which recognizes that by virtue of their development needs andresource constraints, which by extension would limit the derived benefits and

opportunities, developing and least developed countries (LDCs) are to be accordedspecial treatment by developed country partners. In the context of trade accords,therefore, the term S&DT, construed broadly, refers to the set of provisions whichoperationalize the notion that developing countries taking part in trade negotiations haveno obligation to reciprocate fully the concessions they receive1.

3. S&DT is a cross-cutting issue which can assume several forms. For instance, the WTOSecretariat has identified 145 provisions spread across the various MultilateralAgreements. These have been classified according to the following six-fold typology2:

(i) provisions aimed at increasing the trade opportunities of developing countryMembers;

(ii) provisions under which the interests of developing country would besafeguarded;

(iii) flexibility of commitments, of action, and use of policy instruments;

(iv) transitional time periods;

(v) technical assistance; and

(vi) provisions relating to least-developed country Members.

4. The aforementioned classification would be applied to the CARIFORUM-EC EPA in the

identification of S&DT provisions.

1Melendez-Ortiz, Ricardo., and Ali Dehlavi. 1999. “Sustainable Development and Environmental Policy Objectives:

A case for Updating Special and Differential Treatment in the WTO”

2WTO. 2000. Implementation of Special and Differential Treatment Provisions in WTO Agreements and Decisions.

Geneva



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Special & Differential Treatment in the EPA

5. The principle of S&DT is a central pillar of the EPA between CARIFORUM and the EC.In this regard, Article 35.3 of the Cotonou Partnership Agreement (CPA) reaffirms thecentrality of S&DT in the EPAs. Specifically, the Article states that “economic and trade

cooperation shall take account of the different needs and levels of development of the ACP countries and regions. In this context, the Parties reaffirm their attachment to ensuring special and differential treatment for all ACP countries and to maintaining special treatment for ACP LDCs and to taking due account of the vulnerability of small,landlocked and island countries.”

6. Moreover, according to Article 1(f) of the EPA, the objectives of the Agreement include“Strengthening the existing relations between the Parties on the basis of solidarity and mutual interest. To this end, taking into account their respective levels of development and consistent with WTO obligations, the Agreement shall enhance commercial and economic relations, support a new trading dynamic between the Parties by means of the progressive, asymmetrical liberalisation of trade between them and reinforce, broaden and deepen cooperation in all areas relevant to trade and investment.”

7. In giving expression to the principle of S&DT, a cursory examination of theCARIFORUM-EU EPA would confirm that the Agreement is punctuated with S&DTprovisions. However, in an effort not to reproduce the entire text of the Agreement, onlythe key S&DT provisions will be enumerated below. The provisions contained in the EPAare not only rooted in a desire to address the disparities in economic situation andcapacities between the Parties, but also, an effort to ensure consistency acrossnegotiating theatres as it relates to policy space, as well as in support of CARIFORUM’sregional integration processes.

KEY Special & Differential Treatment Provisions

8. An overarching S&DT provision is in the area of development cooperation. Not only isthere a chapter on development cooperation which sets the scope and priorities for suchcooperation, but embedded in every substantive chapter of the EPA are subject-specificcooperation provisions which aim at facilitating implementation of commitments,improving CARIFORUM’s ability to take advantage of the opportunities contained in theAgreement through increased competitiveness, improved export capabilities, fosteringcloser integration, building human, legal and institutional capacity and enhancingtechnological and research capabilities inter alia .

Trade in Goods:

Customs Duties

9. The most noticeable S&DT provision is this area relates to the levels of tariff reductioncommitments between CARIFORUM and the EC. Whereas the latter commits to fullduty-free, quota-free (DF/QF) for all tariff lines immediately, save for sugar and ricewhich will be subject to short transition periods, CARIFORUM commits to liberalise



3

86.9%3 of the value of its imports from the EC over twenty-five years, with three yearmoratorium across the board except for vehicles, parts and gasoline will benefit from tenyears moratorium. Haiti is exempted from liberalisation of gasoline. Consequently, S&DTis with respect to both coverage as well as transition time period;

10. Similarly, with respect to Other Duties and Charges, CARIFORUM commits to eliminate

such charges in ten years, with the flexibility that reduction will commence after yearseven;

11. S&DT is also accorded to the treatment of export duties, where CARIFORUM Stateswhich currently apply such duties have three years within which to eliminate them4;

12. As regards MFN clause, whereas the EC commits to offer CARIFORUM States MFNtreatment as a result of the EC becoming a party to a free trade area (FTA) with a thirdstate, CARIFORUM commits only to accord MFN treatment to the EC with respect toFTAs with any “major trading economy5”. Moreover, CARIFORUM has recourse to theTrade and Development Committee to seek a decision to deny offering MFN treatmentto the EC for any FTA a “major trading economy” ;

13. Under the rubric of provisions to safeguard the interest of developing countries,CARIFORUM has the flexibility to, in the event of serious difficulties in respect of importsof a given product; modify the time schedule for reduction or elimination. Suchmodification, however, would not lead to the time periods for reduction or eliminationbeing extended. Further, CARIFORUM-designated LDCs and Guyana also have theflexibility to seek modification of customs duty stipulated in CARIFORUM’s Schedule ofCommitments;

14. The Chapter-specific cooperation priorities in this area include cooperation efforts aimedat strengthening tax administration and improving tax revenues collection by facilitatingtechnical assistance in the area of fiscal reform as well as capacity and institutionbuilding.

Trade Defence Measures

15. As part of the EC’s commitment to safeguard the interest of CARIFORUM States, as itrelates to multilateral safeguard measures, the EC commits to exclude the latter exportsfrom multilateral safeguard measures as provided for in the WTO. Further, as it relates

3CARIFORUM liberalisation commitments would be implemented as follows: 52.8% of which 51% already attract

no duty will be zero rated from the start of implementation of liberalisation commitments; an additional 3.2% in 5

years, 8.3% in 10 years; 21.7%, 1.9% and 2.3% in 15, 20 and 25 years respectively, cumulatively accounting for

86.9% of EC imports.

4Only Guyana and Suriname currently apply export duties, in particular on forestry products.

5Major trading economy means any developed country, or any country or territory accounting for a share of

world merchandise exports above 1 percent in the year before the entry into force of the free trade agreement, or

any group of countries acting individually, collectively or through an free trade agreement accounting collectively

for a share of world merchandise exports above 1.5 percent in the year before the entry into force of the free

trade agreement



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to antidumping and countervailing measures, as an additional S&DT provision, the ECcommits to consider the use of constructive remedies before definitive antidumping orcountervailing duties on CARIFORUM’s exports to the EC are applied.

Non-tariff Measures

16. At least three key S&DT provisions can be extracted from the chapter on Non-tariffMeasures. The first is referred to as the zero for zero treatment of EU export subsidies.

Essentially, what it means is that the EC commits to eliminate export subsidies on all

tariff lines that CARIFORUM liberalise. The second provision allows CARIFORUM to

maintain recourse to Article 9.46 of the Agreement on Agriculture and Article 27 of the

Agreement on Subsidies and Countervailing Measures. Finally, on export prohibition, the

EC undertakes not to challenge Law No. 147 of 27 December 2000 of the Dominican

Republic which applies to the importation of motor vehicles and motor cycles in excess

of a certain number of years. This commitment is reflected in a Joint Declaration on

Used Goods.

Trade Facilitation

17. Similar to the other thematic areas, the Trade Facilitation Chapter places strongemphasis on co-operation between the EC and CARIFORUM. Further, due recognitionis given to the differences in level of institutional development and capacities, applicationof best practices and international standards of the Customs Administrations in the ECand CARIFORUM. Consequently, a number of CARIFORUM commitments areconditional on the provision of technical and technological assistance, financial supportand training. Therefore, in light of this systemic concern, the Agreement establishes aclear link between the implementation of specific commitments by CARIFORUM Statesand the delivery of development support in the following areas: :

a. the application of modern customs techniques, including risk assessment,advance binding rulings, simplified procedures for entry and release of goods, postrelease controls and company audit methods ;

b. introduction of procedures and practices which reflect as far as practicable,international instruments and standards applicable in the field of customs and trade,including WTO rules and WCO instruments and standards, inter alia the revised KyotoConvention on the simplification and harmonisation of customs procedures and theWCO Framework of Standard to Secure and Facilitate Global Trade; and

c. the automation of customs and other trade procedures.

6 This relates to subsidies to reduce the costs of marketing exports of agricultural products,

including handling, upgrading and other processing costs, and the costs of international

transport and freight; and providing internal transport charges on export shipments terms more

favourable than those for domestic shipment.



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Agriculture and Fisheries

18. Where compliance with the Agreement leads to problems with the availability of, or

access to, foodstuffs or other products essential to ensure food security of a

CARIFORUM State and where this situation gives rise or is likely to give rise to major

difficulties for such a CARIFORUM State, CARIFORUM State may take appropriatemeasures in accordance with the provisions on bilateral safeguards;

19. Additionally, the EC commits to endeavour to maintain significant preferential accesswithin the multilateral trading system for CARIFORUM’s traditional agricultural productsfor as long as is feasible and to ensure that any unavoidable reduction in preference isphased in over as long a period as possible;

20. The cooperation priorities include facilitating support aimed at improving

competitiveness; development of export marketing capabilities, compliance with and

adoption of quality standards relating to food production and marketing; promotion of

private investment and public-private partnerships in potentially viable production;

improvement in the ability of CARIFORUM operators to comply with national, regionaland international technical, health and quality standards for fish and fish products; and

building or strengthening the scientific and technical human and institutional capability at

regional level for sustainable trade in fisheries products, including aquaculture.

Sanitary and Phytosanitary Measures/Technical Barriers to Trade

21. The provisions of the Agreements on Sanitary and Phytosanitary Measures and

Technical Barriers to Trade were reaffirmed in the EPA. Consequently, the S&DT

provisions contained therein would apply. Further, the Parties agree to cooperate in

international standard setting bodies, including by facilitating the participation by

representatives of the CARIFORUM States in the meetings and the work of these

bodies.

22. Development cooperation initiatives will include: establishment of the appropriate

arrangements for the sharing of expertise; development of centres of expertise within

CARIFORUM for the assessment of goods access into the EC market; development of

the capacity of enterprises, in particular CARIFORUM enterprises to meet regulatory and

market requirements; developing and adopting harmonized technical regulations,

standards and conformity assessment procedures based on relevant international

standards; reinforcement of regional integration and the improvement of monitoring,

implementation and enforcement of SPS measures; cooperation in the international

bodies, including the facilitation of participation of representatives of CARIFORUM

States in the meeting of these bodies.

Investment, Trade in Services and E-Commerce

23. On Services, similar asymmetries exist with respect to scope of liberalisation as in thearea of goods trade. The EC has agreed to liberalise 94% of their services sector in the



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W120 list. Several sectors are of export interest to CARIFORUM such as Tourism,Recreation services, Business services. On the other hand, CARIFORUM Statessectoral coverage is around 65 and 75% for LDCs and MDCs respectively. TheDominican Republic has made the most ambitious offer for CARIFORUM States withliberalisation commitments of approximately 90%.

24. Additional asymmetry exists with respect to The Bahamas and Haiti which have sixmonths to submit their respective liberalisation schedules.

25. CARIFORUM was also able to maintain special reservations for small and medium-sizedenterprises (SMEs) in several sectors, as well as the right to regulate any sector oreconomic activity to meet national policy objectives.

26. Other forms of S&DT, especially with respect to tourism services include thecommitment by the EC:

• to facilitate the transfer of technology on a commercial basis to establishments inthe Signatory CARIFORUM States as it relates to tourism services;

• to encourage the participation of CARIFORUM services suppliers in international,

regional, sub-regional, bilateral and private financing programs to support the

sustainable development of tourism; and

• to facilitate the participation of the Signatory CARIFORUM States in relevantinternational organizations setting environmental and quality standardsapplicable to tourism services.

27. The development cooperation commitments cover the following areas: improving the

ability of service suppliers of CARIFORUM States to meet regulations and standards of

the European Community at the national and sub-national levels; improving the export

capacity of service suppliers of CARIFORUM States, with particular attention to the

marketing of tourism and cultural services, the needs of small and medium-sized

enterprises (SMEs), franchising and the negotiation of mutual recognition agreements;

facilitating interaction and dialogue between service suppliers of the EC Party and of

CARIFORUM States; addressing quality and standards needs in those sectors where

CARIFORUM States have undertaken commitments under EPA; developing and

implementing regulatory regimes for specific service sectors at CARIFORUM regional

level and in CARIFORUM States in those sectors where they have undertaken

commitments; and establishing mechanisms for promoting investment and joint

ventures between service suppliers in the EC and CARIFORUM States, and enhancing

the capacities of investment promotion agencies in CARIFORUM States.

Trade-related Issues

28. The Trade-related Issues (TRIs) in the EPA comprise the following areas: CompetitionPolicy, Innovation and Intellectual Property, Public Procurement, Environmental, SocialAspects, and Protection of Personal Data.



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29. On Competition Policy, the two Sides committed to have legislation in place to address

restrictions on competition in their jurisdiction within five years of the coming into force of

the EPA. While this provision is available to both the EC and CARIFORUM, the time

period for implementation is more relevant to CARIFORUM given its competition

authorities are still in a stage of infancy. Another S&DT relates to “public enterprises and

enterprises entrusted with special exclusive rights”. Specifically, where such enterprisesin CARIFORUM States are subjected to specific sectoral rules as mandated by their

respective regulatory frameworks they would not be bound or governed by provisions

contained therein.

30. The cooperation priorities include support to facilitate the efficient functioning of the

CARIFORUM Competition Authorities; assistance in drafting guidelines, manuals and,

where necessary, legislation; the provision of independent experts; and the provision of

training for key personnel involved in the implementation of and enforcement of

competition policy.

31. With regard to Innovation and Intellectual Property, the S&DT provisions relate to,

inter alia , transition time period, differential in Treaty compliance and measures aimed at

increasing trade opportunities such a transfer of technology. Most notable in this regard

are:

• the commitment by the two Sides to implement the provisions on IP by 2014. unless determined otherwise by the CARIFORUM-EC Trade and Development

Committee taking into account the development priorities and levels of

development of the Signatory CARIFORUM States;

• flexibility accorded to CARIFORUM to establish a system of protection of

geographical indication in their respective territories no later than 1 January2014;

• exemption of least developed countries from the provisions on intellectual

property, other than on equal pace with what may be required of them with

regard to the implementation of the TRIPS Agreement as well as the flexibility to

implement the provisions relating to standards on intellectual property and

enforcement no later than 1 January 2021;

• the transfer of technology to institutions and enterprises of the CARIFORUM

States in order to enable the CARIFORUM States to establish a viabletechnological base.

32. Cooperation priorities with respect to Innovation comprise initiatives in the area of

competitiveness and innovation, science and technology, information society and

information and communication technology and eco-innovation and renewable energy.

With respect to Intellectual Property, the cooperation priorities include: reinforcement of

regional initiatives, organisations and offices, support in the preparation of national laws



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and regulations and the identification of products that could benefit from protection as

geographical indications.

33. On Public Procurement, as regards transparency, CARIFORUM States have two

years, save for CARICOM-designated LDCs which have five years, from the entry into

force of the EPA to bring their measures into conformity with any specific proceduralobligation contained therein. Further, if at the end of the aforementioned implementation,

a review by the Trade and Development Committee reveals that one or more

CARIFORUM States need additional time to comply with their implementation

commitments, the implementation period may be extended by one year.

34. Exchange of experience and information about best practices and regulatoryframeworks; establishment and maintenance of appropriate systems and mechanisms tofacilitate compliance with the obligations on public procurement; and creation of an on-line facility at the regional level for the effective dissemination of information on tenderingopportunities, so as to facilitate the awareness of all companies about procurement

processes.

35. On Environment, it was agreed that the special needs and requirements ofCARIFORUM States shall be taken into account in the design and implementation ofmeasures aimed at protecting environment and public health that affect trade.

36. The cooperation priorities include the provision of technical assistance to producers inmeeting standards applicable in European Community markets; promotion andfacilitation of private and public voluntary and market-based schemes including relevantlabelling and accreditation schemes; technical assistance and capacity building, inparticular to the public sector, in the implementation and enforcement of multilateralenvironmental agreements, including with respect to trade-related aspects; and

assistance to producers to develop and/or improve production of goods and services,which the Parties consider to be beneficial to the environment.

37. On Protection of Personal Data, CARIFORUM has the flexibility to implement theprovisions contained therein no later than seven years after the entry into force of theAgreement.

38. The cooperation priorities in this area include exchange of information and expertise;assistance in drafting legislation, guidelines and manuals; provision of training for keypersonnel; assistance with the establishment and functioning of relevant institutionalframeworks; and assistance with the design and implementation of compliance initiativesaimed at economic operators and consumers in order to stimulate investor and public

confidence.

As is evident from the above the provisions on special and differential treatment cuts across all

of the thematic areas of the EPA. Some provisions are mandatory whereas others can be

considered best endeavour. What is important, however, is the operationalisation of the

provisions. An important element in this regard is the Regional Preparatory Task Force process

whose mandate is to translate needs for support identified in the negotiations into operational ideas for



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trade-related and other development assistance and work out these ideas up to the level of pre-

identification of fundable actions.

HGD17/03/2008



EEPPAA:: P P u u b b l l i i c c P P r r o o c c u u r r e e m m e e n n t t C C h h a a p p t t e e r r



Caribbean Regional Negotiating Machinery

Understanding the Nature and Scope of the Public Procurement Chapter of the

CARIFORUM-EC Economic Partnership Agreement (EPA)

By Mrs. Pratt Harrison - CRNM Technical Advisor' Government Procurement and

Competition Policy and EPA Lead Negotiator - Trade Related Issues

INTRODUCTION

The Caribbean Regional Negotiating Machinery (CRNM) has noted some

misunderstandings and misinterpretation of the negotiated text in Chapter 3, PublicProcurement , of the EPA. Recognizing that, with the exception of the DominicanRepublic, this is the first agreement on Public Procurement that the majority of theCARIFORUM (CF) region has undertaken, it is critical that the provisions are accuratelyinterpreted and clearly understood. This brief therefore seeks to provide a detailedexplanation of the key points of the Chapter as well as any implications these may havefor regional integration processes that are planned and/or currently underway.

THE NEGOTIATED PUBLIC PROCUREMENT COMMITMENTS

There appears to be a serious misinterpretation of the negotiated Public Procurementcommitments contained in Title IV (Trade Related Issues), Chapter 3 (Public

Procurement ) of the EPA, in particular sections of Articles 167 and 170, 171 and 174, asthey pertain to perceived rights of market access and consequent implications for theplanned CSME Government Procurement regime. In addition, there have been queriesabout the need for thresholds as well as concerns regarding the relevant negotiatingmandate. These concerns are addressed, in detail, below.

Article 167

Scope

The provisions of this Chapter apply only to those procuring entities listed in

Annex 6 and in respect of procurements above the thresholds set out in that

Annex.

The Parties and the Signatory CARIFORUM States shall ensure that the

procurement of their procuring entities covered by this Chapter takes place in a

transparent manner according to the provisions of this Chapter and the Annexes

pertaining thereto, treating any eligible supplier of either the Signatory

CARIFORUM States or the EC Party equally in accordance with the principle of

open and effective competition.



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Legal Assessment and Explanatory Detail: These provisions, being the core of the scopearticle, determine the precise nature of the obligations specified in the entire chapter. It istherefore important that these provisions be interpreted in their proper context and in line with themandate given to the CARIORUM Negotiators by the CARIFORUM Heads of Government.

The effect of paragraph 1 is to specifically address the commitment contained in the chapter tothe Signatory CARIFORUM States with respect only to the procurement activities carried out bythe entities specified in Annex I within the threshold limits also therein specified.1 By itself, thisprovision is not determinative of the issue of whether market access commitments are containedin the Chapter as it references the need to closely examine the ensuing provisions.

It is paragraph 2 which gives the clear indication that the Chapter is not intended to be onecontaining substantive market access commitments. In this regard, the most telling elements inthe provision are found in the following language. “The Parties and the Signatory CARIFORUM

States shall ensure that the procurement of their procuring entities covered by this Chapter takes

place in a transparent manner according to the provisions of this Chapter.” The highlighted

portion in particular indicates that the ensuing provisions serve only to further define the extent of the transparency obligation.

This paragraph, in effect therefore, binds the CARIFORUM States to carry out their procurementactivities (within the scope of paragraph 1 above) according to the rules of transparency set out inthe entire Chapter. It also binds CARIFORUM States to ensuring equal treatment with regards toopen and effective competition for eligible suppliers. The text does not attempt to determine whois eligible for participation in the procurement activities of CARIFORUM States. Thatdetermination lies solely within the discretion of the procuring entity and/or State concerned. Inpractical terms, if a procuring entity offered for coverage under the EPA carries out procurementof goods with value exceeding 164,753 Euro, then that entity must follow the transparency rulesof Chapter 3. However, eligibility to participate in the procurement exercise, i.e., whether open

to European suppliers, American suppliers, CARICOM suppliers, or restricted to national, oreven further – to a specific locale within the territory of the procuring State, is solely and entirely

up to the procuring State. Once eligibility has been determined, then all of the eligiblesuppliers (determined pursuant to criteria that is set by the procuring State or entity) must betreated equally in accordance with the principle of open and effective competition. This is verydifferent from an automatic eligibility to participate, which is what market access effectivelydictates.

This is supported by the definition of “eligible supplier” contained in Article 166 which reads:"eligible supplier means a supplier who is allowed to participate in the public procurement

opportunities of a Party or Signatory CARIFORUM State, in accordance with domestic law and

without prejudice to the provisions of this Chapter.”

Article 167.1 - Supporting the creation of regional procurement markets

1 Euro 164,753 (goods and services) and Euro 6,909,014 (works). It is to be further noted that owing to the

novelty of this area for many CARIFORUM Member States, CARIFORUM succeeded in obtaining thehighest thresholds in existing bilateral trade agreements. In addition, we successfully limited our procuringentity coverage to Central Government only, despite the EC’s wider coverage.



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1. The Parties recognize the economic importance of establishing

competitive regional procurement markets.

Explanatory Detail: This paragraph is a political statement, carrying no substantive obligation.

2. (a) With respect to any measure regarding covered procurement,each Signatory CARIFORUM State, including its procuring entities, shall

endeavour not to treat a supplier established in any CARIFORUM State less

favourably than another locally established supplier.

Explanatory Detail: In practical terms, for CARIFORUM, this paragraph states that with regardto procurements carried out by the Central Government entities listed in Annex I, and with valuesexceeding 164,753 Euro for goods and services, and 6,909,014 Euro for works, CARIFORUMState (A) will try not to treat a supplier from CARIFORUM State (B) any less favourably than ittreats a supplier established in State CARIFORUM (A). This is the exact circumstance thatcurrently obtains, in practice, in the CARIFORUM States. The EPA text does not obligeCARIFORUM State (A) to grant market access to CARIFORUM State (B). But CARIFORUM

State (A) is free to do so if national laws permit. In practice, therefore, this paragraph means that(i) CARICOM countries will continue to try to move towards the establishment of the CSMEGovernment Procurement regime, and (ii) CARICOM countries and the Dominican Republic willcontinue to try to move toward completion of the CARICOM-DR Free Trade Agreement, inparticular the government procurement protocol. There is no right of market access granted bythe text whether in respect of the EU or intra-CARIFORUM.

There have been some questions with regard to the establishment of an EU supplier in aCARIFORUM State, and the application of 2 (a) above in such a circumstance, as regards marketaccess. Let us examine the following scenario.

European Supplier (A) establishes in the Dominican Republic (DR) in accordance with the

national laws governing foreign direct investment and establishment, and therefore is no longer aEuropean supplier in accordance with DR law. That supplier is now a bonafide legal person of the DR and, by law, a DR supplier. Supplier (A) is a bonafide legal DR person, irrespective of whether the establishment is in part or in whole owned by European interests. The Government of Barbados offers a tender opportunity which interests Supplier (A). Under the EPA provision atparagraph 2 (a), there is no obligation for the Government of Barbados to treat Supplier (A) in thesame manner that it treats Barbadian suppliers. The EPA commitment is that the Government of Barbados should endeavour to do so, which is already satisfied by virtue of the fact that Barbadosis party to the CSME efforts underway to first establish a CSME GP regime and second, establisha CARICOM-DR GP regime in accordance with the requirements of the CARICOM-DR FreeTrade Agreement.

Further, some persons have queried whether the “endeavour” language is sufficient to prevent ourhypothetical DR supplier A from claiming a right to participate in the Government of Barbados’procurement exercise, based on paragraph 2 (a) of the EPA text.

Let us be clear that one cannot seek to re-define the meaning of the word endeavour. Both interms of the English language established interpretation as well as “trade-speak,” the termendeavour can in no way imply a substantive obligation which, in this case, would be to conferrights of market access. Trade professionals are very well aware of this long establishedprinciple, which is based numerous years of international trade precedent.



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(b) With respect to any measure regarding covered procurement, the EC

Party and the Signatory CARIFORUM States, including their procuring entities:

(i) shall endeavour not to discriminate against a supplier established in

either Party on the basis that the goods or services offered by that supplier for a particular procurement are goods or services of either Party;

Explanatory Detail: This paragraph means that if a European supplier establishes in aCARIFORUM State according the relevant laws of that State and therefore legally becomes aCARIFORUM local supplier, the Government of that CARIFORUM State, in its procurementactivities – having determined eligibility to participate, will try to not discriminate against thissupplier on the basis that he offers European goods or services. It also means that should theCARIFORUM State, at its own discretion, decide to allow EC participation in a particularprocurement, the Government will make efforts to not discriminate against the EC supplier on thebasis that he offers European goods and/or services for the procurement in question.

Again, let us examine this clause using our hypothetical DR supplier (A). The Government of Jamaica offers a tender opportunity for the purchase of goods. The Government of Jamaica, inaccordance with the relevant laws of Jamaica decides to open the procurement opportunity. DRsupplier (A) submits a tender offering to supply European-made goods. The Government of Jamaica will now evaluate all the tenders received on the basis of the specifications contained inthe tender document, and determine the “lowest qualified tender” which will win the contract.There is no bearing on whether the goods are European, American or Chinese. If a EuropeanSupplier in France submits a tender, the same analysis would apply. If the Government of Jamaica, in accordance with Jamaica laws, determines that the EU supplier is eligible toparticipate in its procurement opportunity, the EPA commitment means that the Government willtry not to discriminate against the EU supplier on the basis that he offers European goods.

Nothing in this paragraph confers a right on an EU or CF supplier to access the market of any CFState. The paragraph addresses considerations that arise after the eligibility decision has beendetermined by the procuring State. If a CF government decides that, in accordance with nationallaws, policy or the nature of the particular procurement, an EU supplier or CF supplier is eligibleto participate in the procurement opportunity, then the EPA commitment requires theGovernment to try not to discriminate against these suppliers on the basis that they offerEuropean goods. There is no obligation to not discriminate, and more importantly, there isabsolutely no bearing on the right to access the market of any CF State.

(ii) shall not treat a locally established supplier less favourably than another

locally established supplier on the basis of degree of foreign affiliation to or

ownership by operators or nationals of any Signatory CARIFORUM State or of

the EC Party.

Explanatory Detail: In practice, this paragraph means that if a CARIFORUM or Europeansupplier establishes in a CARIFORUM State according to the relevant laws of establishment, andtherefore becomes a local supplier of that State, the Government, its procurement activities, willnot treat this supplier less favourably than other local suppliers on the basis of the degree of foreign ownership or affiliation. This is the same circumstance that currently prevails in the CFStates. The premise of the paragraph is that no country, would wish to discriminate against itself



5

in this manner, as all CF States want to encourage FDI. Again, there is no right of market accessobligation contained in this paragraph.

It should also be noted that the specific references to “covered procurement” in paragraphs 2 (a)and (b), mean that on a proper contextual interpretation, the non-discrimination obligation infavour of both other CARIFORUM States and the EC applies only to those procurements in

respect of which there is an obligation to abide by the negotiated transparency rules. The truenature of the provision therefore is not one connoting a right of market access but rather, onefrowning upon discrimination in the administration of a procurement process in respect of whicheligibility criteria have been determined by a CARIFORUM State.

The concern has also been raised that paragraph 2 (b) (ii) undermines Article 32 of the RevisedTreaty of Chaguaramas (Revised Treaty). Article 32 of the Revised Treaty is headed “Prohibitionof New Restrictions on the Right of Establishment” and in order to ensure the proper achievementof the objectives of the internal market, mandates that CSME Member States must accord rightsof establishment to all entities who meet the criteria of a community national. With respect tocompanies, the qualifying criteria are set out in paragraph 5 (c) of Article 32 of the RevisedTreaty. Article 32 is meant therefore to assure automatic preferential treatment to community

nationals without the need for any further intra-regional legal instruments or bilateralarrangements. But it does not have the effect of denying national treatment or rights of establishment to other entities who do not meet the “community national” criteria of theprovision, for example, by way of percentage foreign ownership. Such other entities can receiverights of establishment pursuant to the terms of bilateral arrangements such as the EPA. Thisdecision is solely within the discretion of the CSME Member States. It should be noted thatduring the discussion of this text in the Technical Working Group meetings (i.e., CF regionalconsultation), no country objected to the text. The sole reservation was placed by theGovernment of Trinidad & Tobago, which was subsequently withdrawn after review of therelevant national law, which the representative stated did not allow the Government todiscriminate against itself in this regard.

3. Subject to paragraph 4 below, each Party, including its procuringentities, shall with respect to any measure regarding covered procurement,

accord to the goods and services of the other Party and to suppliers of the other

Party offering the goods or services of any Party, treatment no less favourable

than the treatment the Party, including its procuring entities, accords to domestic

goods, services and suppliers.

4. The Parties shall not be required to provide the treatment envisaged in

paragraph 3 unless a decision by the Joint CARIFORUM-EC Council to this

effect is taken. That decision may specify to which procurements by each Party

the treatment envisaged in paragraph 3 would apply, and under which

conditions.

Explanatory Detail. Paragraphs 3-4 above constitute a straightforward built-in agenda, wherebypursuant to a future decision of the CF-EU Joint Ministerial Council, if and when such a decisionshould arise, CF and the EU will negotiate market access commitments. That there is a built-inagenda facilitating the possibility to negotiate to market commitments at some point in the future,is itself a clear indication that the current provisions of the Chapter do not confer and are notintended to confer market access rights.



6

Queries have also been raised with respect to Article 170, and the obligation containedtherein to “invite suppliers” in light of the fact that suppliers are defined in Article 166 asbeing from both the EC and CARIFORUM. The relevant Article is reproduced below.

Article 170

Selective tendering

1. Whenever selective tendering procedures are employed, procuring

entities shall:

(a) Publish a notice of intended procurement;

(b) In the notice of intended procurement invite eligible suppliers to submit a

request for participation;

(c) Select the suppliers to participate in the selective tendering procedure in

a fair manner; and

Indicate the time limit for submitting requests for participation.

Explanatory Detail: The Selective Tendering method includes the publication of a notice of intended procurement inviting interested and eligible suppliers to submit a request forparticipation. Such a notice would necessarily include eligibility criteria, which – again – isdetermined solely at the discretion of the State concerned. There is no obligation for aCARIFORUM State to grant access to European or any other CARIFORUM State(s). Thedefinition of who constitutes an eligible supplier, as contained in Article 166, states: "eligible

supplier" means a supplier who is allowed to participate in the public procurement opportunities

of a Party or Signatory CARIFORUM State, in accordance with domestic law and without

prejudice to the provisions of this Chapter.

Other concerns and queries raised, as well as additional misunderstandings areaddressed below.

Extent of Detail of the Chapter

It should be recognized that CF and the EC negotiators agreed that the EPA should reflectinternational standard and best practices, as far as practicable, as regards transparency-related rules in public procurement. CF felt that in such a circumstance, CSME Stateswould not be prejudiced having already committed to adopting such standards for theCSME regime. Additionally, the DR would also not be prejudiced having adoptedsimilar standards as a result of the CAFTA. Indeed, several of the CSME Member States

already operate according to these practices. At the onset of substantive negotiationsboth Sides in a TNG proposed and discussed and agreed on elements to be negotiated aspart of the Chapter, and throughout the negotiating process CF and the EC both made anumber of proposals. The CF Member States in Technical Working Group (TWG)meetings discussed and agreed on CF proposals, and alternative proposals prior to puttinganything on the formal negotiating table with the EC. As a result, the Chapter containsfar less detail than the EC would have liked, because CF adamantly refused to includecertain elements or sub-elements that the CF negotiators perceived to have a substantive



7

bearing on market access although the elements themselves may have been transparency-related.

The Necessity for Thresholds

There must be a threshold, for efficiency purposes, below which the provisions of theChapter would not apply. Otherwise, procuring entities would find themselves bound tofulfilling all of the requirements of the chapter in order to execute relatively small valueprocurements, for example, to purchase a box of #10 pencils. The threshold is asafeguard that tries to ensure that the cost of the procurement process does not exceed thevalue of the goods or services being procured. The absence of thresholds in the EPAChapter would effectively negate the purpose of employing transparency and tenderingmethods - which is to assist in achieving value for money objectives.

Article 174, Qualification of Suppliers seems to confer rights of access to CF

markets on EU suppliers.

It is always important in reading the text to keep in mind that the entire chapter is subjectto Article 167 which defines the scope of all of the commitments to be undertaken. It isalso important to understand certain basic terms and expressions in Public Procurement.In this regard, qualification addresses the capacity to perform a particular contract, whileeligibility refers to the right to access the market. These are two different and distinctelements of the procurement process, where eligibility is a necessary pre-requisite forqualification, as no supplier will expend his efforts and monies to qualify for aprocurement opportunity in which he is not eligible to participate.

Article 174 has no bearing on eligibility; it deals solely with capacity to perform aparticular contract (e.g., technical competence, financial strength, technologicalcompetence, etc.) after eligibility has been established. Further recall that the EPA doesnot seek to prejudice or prescribe eligibility in any way. The eligibility decision remainswithin the sole discretion of the procuring State.

The EPA thresholds pre-emptively deny CSME States the opportunity to

revise domestic thresholds and agree on what the CSME levels should be.

The EPA threshold is a transparency threshold which has no bearing or impact on themarket access and process thresholds existing in the Member States and those that maybe set for application in the CSME. There seems to be some confusion in theunderstanding of the function of a market access threshold as opposed to a transparencythreshold. The essential function of the EPA transparency threshold, in practice, is thatwhen procuring entities make purchases above a certain value, they must abide by certainpublication requirements. This has no bearing on who the procuring entity decides togrant permission to participate in its procurement opportunity, which would be governedby a market access threshold. A CSME State or the Community itself can choose to setits market access thresholds at its discretion and in accordance with its needs. Atransparency threshold operates differently from a market access threshold; the former



8

setting the value above which governments undertake be transparent in their procurementactivities, and the latter setting the value above which governments undertake to grantrights of access to their procurement markets. The one does not impact the other. Theyrequire different actions.

The Limited Tendering Provisions in Article 171 of the EPA undermine theCSME because the EPA rules are the same as those planned for CSME. The

EPA rules needed to be more stringent and different in order to be

differentiated from the CSME.

It is always important to clearly understand the facts and issues at hand. Limitedtendering is a procurement method that allows the procuring entity to contract directlywith a supplier without executing a competitive tender process. The conditions underwhich limited tendering can be employed as set out in Article 171 of the EPA, are thesame as those which are planned for use in the CSME government procurement regime.In the first instance, international standards and best practices dictate what the conditions

for use of the limited tendering method of procurement should be. It is these standardsthat informed the CSME conditions. That the conditions in Article 171 of the EPA arethe same as those planned for the CSME was a necessary and deliberate act on the part of the CF negotiators. Consider the hypothetical circumstance wherein the CSME regimeallows for the use of limited tendering in the case of contracts awarded to the winner of adesign contest, but the EPA being more stringent and does not afford this flexibility.Each time that a CSME State attempted to take advantage of this flexibility it would be inviolation of the EPA. In this circumstance it is critical to ensure that the EPA provisionsare, at minimum, equal to those which are planned for the CSME in order to safeguardthe CSME flexibilities. EPA conditions for limited tendering that are more stringent thanthose planned for the CSME would undermine the relevant flexibilities in the CSME.

The Negotiating Mandate was exceeded and/or its Restrictions were ignored

This is indeed a very serious allegation and is being taken as such by the relevant CFNegotiators.

The need to clearly understand the negotiating mandate is primary and crucial. Themandate was to "exclude market access commitments." That was the CF redlineposition. This has, somehow has become inter-changeably used with "transparency only,"but the two are different things entirely. In the true technical sense, Transparency is not adiscipline in procurement. It is an attribute or principle that dictates how you go aboutcarrying out the various GP disciplines including market access. The principle of transparency and being transparent in procurement activities underlies and permeates allof the elements and disciplines in procurement, including market access. It is importanttherefore to begin to accurately reflect the true CF mandate so that the current misuse of terms does not continue to be inadvertently promulgated.

It is also important to recognize that, irrespective of nomenclature and titles, there can beno agreement where it is possible to have pure transparency only. What would happen to



9

the fairness provisions, or the due process provisions? How would such an agreement beenforced in the absence of these provisions?

It must also be appreciated that the EPA process was a negotiation and there is nonegotiation in the world in which any party will obtain precisely what it desires in every

respect. The very nature of a negotiation necessarily implies compromise. The Councilon Trade and Economic Development (COTED) expressed a desire to exclude the initialEuropean proposal on the paragraphs discussed at Article 167 (which at the time of review by the COTED contained binding rules-based commitments as opposed to thecurrent “endeavour” language) due to market access implications. CARIFORUMnegotiators were not successful in getting the paragraphs excised, but remained within themandate to exclude market access obligations by eventually obtaining EU agreement onthe insertion of “endeavour” language, which substantially altered the nature and scope of the original text.

The final negotiating mandate issued November 15, 2007 is reproduced below:

“THE CARIFORUM COUNCIL:

Reiterated its decision not to offer market access in relation to Government

Procurement;

Agreed that Article 3.1, “Supporting the Creation of Regional Procurement

Markets” of the Draft EPA be amended to reflect the above decision.”

It is clear that the CF Negotiators acted in accordance with the negotiating mandate,ensuring (i) that the Chapter did not grant rights of market access, and (ii) that the EC'sproposals for paragraphs 3-6 were amended to reflect that there should be no rights of market access granted. In so doing, the pace and content of the Region’s integrationagenda were safeguarded and are not negatively affected by negotiated commitments.

The Necessity for the Chapter

The importance of this Chapter should not be underestimated. Transparency can onlyimprove the national processes, permitting a greater level of scrutiny and consequently animprovement in compliance with established procedures in the pursuit of value for moneyobjectives. The cooperation provisions in Article 182 have already given rise to thepreparation of a document detailing the needs to be addressed in the CF Member States atthe regional, sub-regional, and national levels in order to comply with the EPA

commitments. The document, which has been approved by the relevant CF and EUauthorities, includes activities (as identified by the MS and the relevant regionalauthorities) in support of establishing the CSME regime, improving national regimes, anda financing proposal for approximately US$10M in support of undertaking the identifiedactivities. Further, this is the only Government Procurement Agreement in the world thatexcludes market access commitments. The WTO Working Group on Transparency inGovernment Procurement (WGTGP) tried unsuccessfully for over six (6) years to createa clear distinction between market access and transparency elements of government



10

procurement. Their difficulty was compounded by the fact that there are market accesselements in transparency and transparency elements in market access. Consequently, anartificial divide is very difficult to create. CARIFORUM’s success in this regard is thefirst of its kind in such negotiations worldwide. The import of this achievement is that infuture negotiations, particularly with larger developing and/or developed countries, CF

has the benefit of the indisputable precedent that, despite the failure of the WTO’s bid,such an agreement is indeed possible.

IMPLICATIONS FOR THE PLANNED CSME GOVERNMENT

PROCUREMENT REGIME

The foregoing should have clearly established that, in accordance with the CFNegotiating Mandate, the provisions of the EPA Chapter on Public Procurement do notconfer and are not intended to confer rights of market access as between CARIFORUMand the EC, and/or among CARIFORUM States. The key impact that the EPA

commitments will have on the CSME regime is in the provision of cooperation andassistance to facilitate the development and implementation of the CSME regime, as wellas to improve national processes, as necessary, in order to be in compliance with theCSME regime.

GENERAL OBSERVATIONS

Some of the queries and concerns as well as conclusions drawn indicate an alarming lack of understanding of the basics of public procurement. It is against this background thatthe CSME States, in particular, are in the midst of the fight for their survival in an ever-increasing global pace of trade liberalization. The time is now to begin to pay muchcloser attention to this critically important arena of public policy and operations. Statesare encouraged to focus urgent attention on improving the training, skills and techniquesand overall understanding of relevant personnel. This need is more urgent in light of thefact the we are now Party to one government procurement agreement, with another muchmore comprehensive undertaking coming quickly on its heels. And while the EPA grantstransition periods up to a maximum of five (5) years, the planned CSME regime shouldbe underway way before that period is expired.

Further, in a global environment of increasingly scarce resources, government suppliersare going to be looking more and more towards developing country markets forprocurement opportunities. As developing countries, therefore, it should be no surprisethat we will come under increased pressure from real and potential trading partners topermit them access to our government procurement markets. There is tremendous risk that we will not be able to successfully address and manage these pressures in accordancewith our own needs and interests and at out own pace, if we do not quickly andextensively improve our understanding of this subject, both as individual States andcollectively as a Region. It is the hope of the CRNM that the relevant authorities will actwith dispatch to do so.

END



EEPPAA:: D D i i f f f f e e r r e e n n t t i i a a t t i i o o n n i i n n t t h h e e E E P P A A



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CRNM NOTE ON DIFFERENTIATION IN CARIFORUM-EC EPA

Member States of the Caribbean Community (CARICOM) are classified in the Treaty of

Chaguaramas as either less developed countries1 (LDCs) or more developed countries2

(MDCs). Special and differential treatment (S&DT) is accorded to the LDCs within the context ofthe Treaty because of their differences in levels of development and economic structures. The

S&DT provisions aim to ensure that there is more equity as regards obligations and

commitments among parties to the Treaty, taking into consideration their levels of development,

needs, inter alia .

Within the context of the EPA between CARIFORUM3 and the EC, a key guiding principle is that

it should complement regional integration initiatives and the obligations enshrined therein.

Consequently, during the negotiation, CARIFORUM sought to ensure that the special needs of

CARICOM LDCs were taking onboard in the Agreement. In addition to the Special and

differential treatment accorded to CARIFORUM as a whole4, the special needs of CARICOM

LDCs are expressed in differentiated treatment on a range of issues in the EPA. Notable in thisregard are the following provisions:

On Trade in Goods, the LDCs and Guyana5, subject to a decision of the Trade and

Development Committee (TDC), may modify the level of customs duties stipulated in the EPA

tariff Schedule which may be applied to a product originating from the EC. However, such

modification should not result in an incompatibility between the EPA and Article XXIV of the

GATT 1994. This provision essentially seeks to preserve the flexibility CARICOM LDCs have in

Article 164 on Promotion of Industrial Development in the Treaty.

On Services liberalisation, the LDCs will undertake a lower level of sectoral liberalisation. LDCs

commit to liberalise approximately 65% of their services sectors, whereas the MDCs havecommitted to liberalise around 75%. The DR has committed to open more than 90% of services

sectors. Further, the Agreement provides a special concession for The Bahamas and Haiti; the

latter being the only UN-designated LDC in CARIFORUM; to submit their commitments on

services and investment within six months.

Another area where there is differentiation is with respect to regional preferences. In other

words, whatever concession a CARIFORUM State grants to the EC with respect to goods and

services will have to be automatically conferred on all other CARIFORM States. MDCs will

implement this provision after one year, two years for LDCs and five years for Haiti after the

date of signature of the EPA.

1The LDCs are: Antigua and Barbuda, Belize, Dominica, Grenada, Haiti, Montserrat, St Kitts and Nevis, Saint Lucia and St.

Vincent and the Grenadines. Haiti is the only UN designated LDC. Montserrat is however not a party to the EPA 2

The MDCs are: The Bahamas, Barbados, Guyana, Jamaica, Suriname and Trinidad and Tobago3

CARIFORUM is made up of CARICOM member states and the Dominican Republic.4

See CRNM Note on Special and Differential Treatment in the EPA5

Guyana is not an LDC within the CARICOM construct, but has recourse to Art 164 by virtue of its status as a

Highly-Indebted Poor Country (HIPC) as stipulated in Art 156 of the Treaty.



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On Intellectual Property, LDCs are exempt from the provisions on intellectual property

contained in the EPA, other than the requirement to implement what may be required of them

with regard to the implementation of the TRIPS Agreement as well as the flexibility to implement

the provisions relating to standards on intellectual property and enforcement no later than 1

January 2021;

On Public Procurement, as regards transparency, CARIFORUM States have two years, save

for CARICOM LDCs which have five years, from the entry into force of the EPA to bring their

measures into conformity with any specific procedural obligation contained therein.

HGD17/03/2008



TThhee EEPPAA:: F F aacct t vveer r s suu s s F F i i cct t i i oonn S S eer r i i ee s s



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The EPA: Fact vs. Fiction - Issue 1

THE EPA: FACT VS. FICTION

The EPA: Fact vs. Fiction is one of a series of guides produced by the Caribbean RegionalNegotiating Machinery (CRNM) on the subject of the Economic Partnership Agreement (EPA)

between Europe and CARIFORUM. The EPA: Fact vs. Fiction is intended to addressmisconceptions and to clarify facts about the EPA.

Fiction: The EPA replaces the Cotonou Agreement

Fact: EPAs do not replace the the Cotonou Agreement (CA). They replace only that section of Cotonou dealing with trade. Cotonou which was concluded in 2000 and covers three broad areas

of partnership - development finance cooperation, trade and economic cooperation as well ascultural, social and regional cooperation - between the ACP Group of States and the EU, does

not expire until 2020. The CA provided for the trade regime negotiated prior to 2000 (underLome in 1995) to be temporarily extended until 31 December 2007, and under the CA both sides

agreed to negotiate a replacement trade regime which was compatible WTO rules. These new

trading arrangements, including EPAs, would apply from 1 January 2008.

The temporary trade regime had been non-reciprocal and required a WTO waiver, whose validitycoincided with the expiry of the temporary regime. However the EPA by being reciprocal meets

the main requirement for WTO-compatibility. It therefore requires no WTO waiver.

The EPA thereby completes the commitment undertaken under the CA. While the EPA providesfor no terminal date for its existence, there is provision in the case of the CA itself for

termination, replacement or renewal of the agreement beyond 2020.

Fiction: The EPA has not honoured the commitment to the principle of asymmetry.

Fact: Quite the contrary, EPA obligations are highly asymmetrical with EU obligation being more

extensive and adjustment periods being shorter than those for the Caribbean; an approachconsistent with the differing economic and adjustment capacities of the two partners. Numerous

examples of important differences in obligations by both sides can be provided, but reference toa few salient ones should suffice.

Asymmetry is most evident in the area of market access in goods where the EU is liberalising all

eligible imports from CARIFORUM from 1 January 2008 (apart from rice and sugar after a brief

transition), whereas CARIFORUM is liberalising most of its imports from the EC over a 15-yeartransition with a number of sensitive imports liberalised over periods up to 25 years. CARIFORUM

does not have to begin to liberalise imports before 1 January 2011 and will permanently excludesome highly sensitive products from liberalisation.

In Services, the EU has made liberalisation commitments in 94% of the sectors whereas thecorresponding figures for CARIFORUM LDCs and MDCs are 65 and 75% respectively. CARIFORUMcountries have thus been able to exclude a larger number of service sectors, including sensitive

ones, than the EU.

The EU has also committed to providing development support to buttress regional integration,

facilitate the implementation of EPA commitments, assist adjustment and boost competitivenessand supply capacity in accordance with priorities identified by CARIFORUM, across the broad

spectrum of sectors negotiated.



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Fiction: EPA market liberalisation will be too fast for CARIFORUM and will disrupt production and

employment

Fact: The EPA reflects the objective of minimising negative liberalisation impacts, which

consumed a major share of CARIFORUM’s coordination effort. Each CARIFORUM countryundertook stakeholder consultations and determined very carefully what its sensitive products

and sectors are, taking into account revenue, production, employment, food security, livelihoods,rural development and environmental and other concerns.

Sensitive goods will either not be liberalised at all or liberalised over the longer periods (15, 20to 25 years). Products committed for immediate liberalisation are mainly those with tariffs

already zero-rated or with low or so-called nuisance tariffs. Thus, where import competition wasthe main concern, potentially competing goods imports were liberalised over the longest periods

to enable improved competitiveness. Since revenue is a more important concern for mostcountries, revenue-sensitive items will also be liberalised over longer phases or not at all, and

the EU has pledged assistance for countries wishing to make their tax systems less dependent ontrade taxes. This is especially applicable to countries heavily dependent on ODCs (Other Duties

and Charges) that have up to 10 years to eliminate them.

In the area of services, CARIFORUM’s commitments largely comprise the binding of

commitments in sub-sectors that were in practice liberalised, as well as some activities whoseliberalisation was considered beneficial for particular countries, and this determination was made

on a country-by-country basis.



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THE EPA: FACT VS. FICTION - Issue 2

Fiction: Since developing countries rejected the inclusion of the Singapore Issues in the DohaRound of negotiations, these issues should not have been included in the EPA.

Fact: In the context of the WTO the rules on investment, competition policy, transparency in

government procurement and trade facilitation are commonly referred to as the ‘SingaporeIssues’. The ‘Singapore Issues’ formally emerged at the WTO Ministerial Conference in 1996.

Initially, these issues were all included in the Doha Development Agenda. However, in 2004,

investment protection, competition policy, and transparency in government procurement, weredropped from the Doha Round of negotiations. Only trade facilitation has been retained.

The reasons for including the ‘Singapore Issues’ in the Cotonou Agreement are very clear. Rules

on these issues are intended to ensure fair play in areas related to investment and competition,provide transparency in government procurement and simplify the administration and process of

international trading. They are important to create a stable, transparent, efficient and predictable

economic environment. Such an environment is necessary to support a robust and thrivingeconomy and to foster the growth and development of the entire business sector. In addition,they protect the public interest from fraudulent and unethical behaviour of investors and

companies.

The EPA negotiations therefore presented a favourable opportunity for CARIFORUM to improveand build upon the Cotonou Agreement’s treatment of these areas.

Fiction: The Chapter on Government Procurement in the EPA includes provisions on marketaccess.

Fact: No commitments were made on market access in government procurement. Therefore, the

EPA does not require CARIFORUM Governments to allow EU firms to tender for Governmentcontracts.

The EPA has committed CARIFORUM Governments and Europe to rules on transparency ingovernment procurement. This means that the Parties have agreed to rules that would ensure

relevant information is freely disclosed in order to facilitate fair and acceptable processes inpublic tendering.

Fiction: The EPA negotiation process was undertaken without the benefit of stakeholder

consultation and guidance from regional officials.

Fact: The process of negotiations of the EPA began years ago and involved a wide range of

stakeholders. These stakeholders included State representatives, the private sector and non-state actors. The CARIFORUM Heads of Government took a decision to utilise a formalmechanism that would generate the best regional negotiating positions possible from amongst

the many diverse interests within CARIFORUM in an open, inclusive and transparent manner.

Several fora were established to formulate regional negotiating positions. National positionswhich were formulated through national consultations, as well as the positions of regional

sectoral interests and regional NGOs, were systematically harmonised and refined into coherentregional negotiating positions. This coordination activity took place through a series of meetings



5

which were open to officials from all Member States, the regional secretariats, regional privatesector and the NGO community. This forum of the Technical Working Group convened at least 29

meetings since the official launch of the EPA negotiations in 2004. Of that total, 11 were devoted

to market access issues in goods. Consultations on services were also considerable as 8 TWGswere convened.

Through these processes, the ensuing dialogue and exchange of positions through proposals andresearch papers would have engendered continuous consensus building. The combined inputs of

the participating stakeholder groups obtained from the national consultations and from the TWGswent into formulating the overall strategy, which was implemented by the EPA College of

Negotiators and CRNM technical negotiating staff.

In the EPA negotiations, the College was comprised of Lead and Alternate Lead negotiators foreach of the negotiating issues. These regional experts included CRNM technical staff and other

nationals from across the region. The primary objective of the EPA College was to devise anegotiating strategy and to ensure coherence between the Region’s positions as the negotiations

progressed.

The College’s harmonized strategy recommendations were referred to the CARICOM Council forTrade and Economic Development (COTED), as well as the CARIFORUM Council of Ministers for

review and consideration. These Institutions determined the negotiating mandate with theauthority of the CARIFORUM Heads of Government. The approval of strategy and final positions

therefore lay firmly within the ambit of the Region’s elected representatives.

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, and that the

positions were not at variance with the agenda of the CARICOM integration process as outlined inthe Revised Treaty of Chaguaramas. To this end, a number of Special COTEDs on External Trade

Negotiations and CARIFORUM Ministerials were convened. Those Meetings continuouslyconsidered and refined the Region’s positions as the EPA negotiations evolved.

It is clear that the consultation process was open and transparent. That process has been the

very underpinning of the Region’s success in concluding the EPA negotiations.



1



Fiction: The EPA commitment to ‘national treatment’ requires CARIFORUM Statesto remove domestic subsidies.

Fact: The obligation to apply national treatment does not require CARIFORUMStates to remove domestic subsidies. More precisely, the EPA expressly stipulatesthat the obligation to accord national treatment does not affect the ability of theCARIFORUM States to effect the payment of subsidies exclusively to nationalproducers.

National treatment is a principle of non-discrimination that governs thecompetitive relationship between a domestically produced good and a like importwithin the domestic market. Commitment to this principle obligates Parties to

accord to each other’s products, treatment no less favorable than that which theyaccord to their respective domestically produced goods.. National Treatmenttherefore prevents discrimination between imported products and the likedomestic products with respect to all laws, regulations, and requirements thataffect their internal sale, distribution or use.

Furthermore, the principle commits Parties not to apply charges such as licensefees, or domestic taxes such as VAT, on imported products in excess of thosewhich they apply to the like domestic products. In addition, such charges andtaxes may not otherwise be applied in such a manner as to afford the likedomestic product protection from competition from the like imported product.Such provisions on non-discrimination between domestic products and like

imports are not limited to the EPA but appear, for example, in Article III of theGeneral Agreement on Tariffs and Trade (GATT) 1994 and Article 90 of the Treatyof Chaguaramas.

Whereas unless its scope is circumscribed, obligation to accord national treatmentmight normally prevent governments from offering domestic support to nationalproducers and national production within any given sector, the articulation of thisobligation in the EPA does not have this effect. This arises from Article 27 (4) of the agreement which is in the following terms:

The provisions of this Article [dealing with nationaltreatment obligations] shall not prevent the payment of subsidies exclusively to national producers, includingpayments to national producers derived from the proceedsof internal taxes or charges applied consistently with theprovisions of this Article and subsidies effected throughgovernmental purchases of domestic products.



2

However, it must be noted that while the EPA does not affect the rights of the

parties to grant subsidies exclusively to domestic producers, it does not insulate aParty or CARIFORUM State which grants such a subsidy from the possibility that acountervailing duty might be imposed on imports of its products into anotherParty to redress or forestall injury to that Party’s domestic production of “like” products. Therefore, for example, if subsidized domestic products fromCARIFORUM when exported to the EC enter at lower prices because of the effectof the subsidy and as a result, cause or threaten injury to European industriesproducing like products, then countervailing duties may be applied to theseCARIFORUM products.

Fiction: The EPA has usurped the rights of CARIFORUM States to determine thedirection and pace of Caribbean Integration.

Fact: Regional integration initiatives are understood by CARIFORUM States asimportant to enabling their effective participation in the global environment. Thisis well illustrated, for example, in the Preamble of the Treaty of Chaguaramaswhich acknowledges the conviction of CARICOM Member States that theestablishment of a fully integrated and liberalized internal market is necessary to “achieve sustained economic development based on internationalcompetitiveness, coordinated economic and foreign policies, functionalcooperation and enhanced trade and economic relations with third States” including the European Community (EC).

The utility of such integration initiatives is reaffirmed in the articulation of aFundamental Principle of the Partnership between Europe and the ACP Statesunder Article 2 of the Cotonou Agreement. The EPA, which is based on thefundamental principles of the Cotonou, acknowledges the mutual understandingbetween Europe and the CARIFORUM States of the importance of regionalintegration in furthering the objectives of their Partnership and in achieving theobjectives of the EPA.

The EPA expressly recognizes and gives deference to the sovereign rights of CARIFORUM states to determine the direction of regional integration initiativesincluding the integration initiatives of the Organisation of Eastern CaribbeanStates (OECS), Free Trade Agreement between the Dominican Republic (DR) and

CARICOM (CARICOM –DR FTA) and the CARICOM Single Market and Economy(CSME).

Though CARIFORUM States would have, amongst themselves, pledgedcommitments to facilitate these various integration initiatives, in some cases theimplementation of these commitments has not been completed. Lack of progressattained in the implementation does not, in principle, forgo the obligation to thepledged commitments. The provisions in the EPA, which are designed to bolster



3

regional integration, are based upon the levels of ambition of regional integrationinitiatives already outlined in the Revised Treaty of Chaguaramas, the Treaty of Basseterre and the FTA between CARICOM and the DR.

Fiction: The EPA creates a supranational governance structure.

Fact: Supra-nationality, understood conceptually as governance structures thattranscend established borders or spheres of influence held by Nation States, is notestablished through the EPA.

The EPA contains provisions which establish certain institutional bodies designedto play key roles in (a) supervising the implementation of the Agreement, (b)facilitating dialogue and cooperation between the Parties, and (c ) enabling theopen participation of CARIFORUM and EC stakeholders in the process of implementing the EPA. These bodies which are therefore inherently crucial to

ensuring that the development dimension of the EPA is fulfilled are: The JointCARIFORUM-EC Council, the CARIFORUM-EC Trade and Development

Committee, the CARIFORUM-EC Parliamentary Committee, and the

CARIFORUM-EC Consultative Committee.

It is a regular feature of international agreements that joint institutionalframeworks are established to facilitate the fulfillment of the contractualobligations of the Contracting States. The establishment of these institutionalframeworks is in no way inconsistent with the doctrine of the sovereignty of statesin international law, nor in the regular course of events, do they constitute truesupra-national entities. The member states of CARICOM themselves, have longembraced the existence of these institutions in their international agreements.The Cotonou Agreement, for example, by establishing the Council of Ministers,

the Committee of Ambassadors and the Joint Parliamentary Assembly has aninstitutional framework similar to that of the EPA so as to facilitate theimplementation of the partnership between the EC and its Member States on theone hand and the grouping of African, Caribbean and Pacific States on the otherhand. It is also to be observed that the Cotonou established Council of Ministers,the highest institutional body established in that agreement, like the EPA JointCARIFORUM-EC Council, has the power to take decisions concerning thatagreement, which are binding on the Parties. The CARICOM countries have alsoembraced institutional arrangements with decision making powers in bilateraltrade agreements such as the CARICOM-Costa Rica Free Trade Agreement andthe CARICOM-DR Free Trade Agreement.

The establishment of the EPA institutional framework was squarely in keepingwith the Lomé and Cotonou acquis that the implementation of the Partnershipbetween Europe and the ACP countries should in principle be based on openparticipation of a range of stakeholders, dialogue between Europe and the ACPStates, and the ACP ownership of the development strategies implemented underthe Partnership. Further, the establishment of this framework in the EPA was notonly consistent with the experiences of the CARIFORUM States in embracing sucharrangements in international agreements, but was also essential to ensuring thatthe core objectives of the agreement are fulfilled. In this regard, the point must



4

be emphasized that the EPA is not intended to be a static agreement but oneintended to respond to the evolving developmental goals of the CARIFORUMStates. In light of this, the vesting of the power to take decisions binding on theParties in the Joint CARIFORUM-EC Council is vital to ensuring that properadjustments can be made to the agreement in the area of developmentcooperation throughout the life of the agreement without the need for the partiesto engage in perpetual negotiations ion this issue.

The ability of the CARIFORUM States to effect their own decision making inexercise of their rights of sovereignty, has not been transcended by the inclusionof the institutional provisions. Rather the Joint Council’s structure, rules andprocedures, for example, reflect a delegation of authority to a Ministerialrepresentative of the State rather than a ceding of the sovereign rights of Statesto a supranational body.

The Joint Council may only adopt decisions and recommendations by agreementof the Parties. Ultimately therefore, the decisions of the Joint Council which are tobe considered binding on the Parties are those which the Parties themselves

would have agreed upon through their Ministerial representatives. In effecttherefore, the CARIFORUM States will retain a key role in EPA governance. This isan element that does not obtain in true supra-national institutions such as theEuropean Commission which in accordance with the powers vested in it by theTreaty of Rome 1957 and subsequent treaties dealing with the integration of theEuropean Union, has the power to take decisions binding on the twenty seven EUmember states, even though such states have not been a part of the decisionmaking process.

It is also useful to note that the EPA institutional structure accords with theprinciple of transparency in governance. This is evident for example in therelationship between the CARIFORUM-EC Parliamentary Committee and the Joint

Council. The established CARIFORUM-EC Parliamentary Committee, composed of members from the legislatures of CARIFORUM States and the EuropeanParliament, is free to meet and exchange views on matters pertaining to EPAimplementation as well as the decisions of the Joint Council. Furthermore the JointCouncil is mandated to inform the Committee of their decisions and to provideany information as so requested by the Committee.



1



Fiction: In the negotiations of the Economic Partnership Agreement (EPA) thatwas intended to replace the trade provisions of the Cotonou Agreement,

reciprocity was forced upon the Region quite unexpectedly.

Fact: CARIFORUM was in no way caught by surprise in relation to either (a) the

phasing out of the unilateral granting of preferences by the EU under the CotonouAgreement of 2000, or (b) the need for the EPA to be based on reciprocity.

Indeed, the Cotonou Agreement, in providing that the non-reciprocal preferencesgranted under the Fourth ACP-EC Convention would be maintained during the so-

called “preparatory period” (2000-2007) for ACP States, expressed in Art. 36.1 aclear commitment for the Parties “to conclude new World Trade Organisation

(WTO) compatible trading arrangements, removing progressively barriers to trade

between them...”

The dual reference to the need to conclude WTO compatible trading arrangements

and the need for the new arrangements to effect a progressive removal of

barriers to trade between the “Parties”, is an explicit reference to the need for theEPAs to be legally consistent with Article XXIV of the General Agreement on

Tariffs and Trade which in effect, demands that free trade agreements must bereciprocal arrangements. It is to be further noted that the preparatory period

referenced in the Cotonou Agreement was by design intended to allow for capacitybuilding in both the private and public sectors of the ACP States in order to

facilitate the transition to a reciprocal trading environment in 2008.

Reciprocity can of course be full or symmetrical, wherein both sides extend

roughly equal concessions to each other, or it can be partial or asymmetrical,wherein both sides agree that lesser concessions would be required of one side.

Article 35.3 of the Cotonou Agreement commits the Parties to the latter obligationin enshrining that the Parties, taking account of the different needs and levels of

development of the ACP countries and regions, “reaffirm their attachment toensuring special and differential treatment for all ACP countries and to

maintaining special treatment for ACP LDCs and to taking due account of the

vulnerability of small, landlocked and island countries”.

In light of the above, the Region, in signing the Cotonou Agreement in 2000, was

fully aware that what was to be negotiated during the preparatory period as areplacement on January 1, 2008 for the temporary trade regime of Cotonou, wasa trade arrangement based upon the principle of asymmetrical reciprocity.



2

Fiction: The EPA makes no distinction between CARICOM MDCs and LDCs

Fact: The EPA does make distinctions between the CARICOM LDCs and MDCs. A

salient example is the fact that the LDCs enjoy on average twice as muchprotection as the MDCs, in that the share of their imports that is excluded from

liberalisation is 30%, whereas this figure is 15% for the MDCs. The corresponding

figure for the Dominican Republic is 5%. It should be noted as well thatCARIFORUM exempted from tariff liberalisation all items currently on the Revised

Treaty of Chaguaramas Article 164 list of products, which addresses thepromotion of the industrial development of CARICOM–designated LDCs.

Another example is in respect of the liberalisation of Services where the sectoral

coverage for LDCs is 65% which is less than the 75% sectoral coverage grantedby MDCs.

Differentiation is also reflected in the Chapter on Public Procurement wherein the

CARICOM MDCs and the Dominican Republic are allowed a period of two years

from the date of signature of the Agreement within which to bring their measuresinto conformity with the requirements of the Chapter, whereas the LDCs benefitfrom a longer transitional period of five (5) years.



CCRRNNMM EEPPAA GGuuiiddeess



Getting To Know the EPA: An Overview

Prepared by the Information Unit of the Caribbean Regional Negotiating Machinery (CRNM), thiselectronic newsletter focuses on the RNM, trade negotiation issues within its mandate and relatedactivities.

Getting to Know the EPA is one of a series of guides produced by the Caribbean RegionalNegotiating Machinery (CRNM) on the subject of the Economic Partnership Agreement (EPA)between African, Caribbean and Pacific States and Europe. This Frequently Asked Questions (FAQ)guide is designed to clarify basic facts about the EPA.

Background

The Cotonou Agreement, signed in 2000, is a partnership pact between the Europe Union (EU) andthe African, Caribbean and Pacific Group of States or ACP. Before the Cotonou Agreement,European –ACP trade relations were facilitated by what was primarily a trade and aid agreementknown as the Lomé Convention, which was originally signed in 1975. The Lomé Convention, whichfacilitated ACP trade access to Europe in preference to goods from other countries, was renewedand renegotiated successively thereafter creating four agreements - Lomé I, Lomé II, Lomé III, andLomé IV. The Cotonou Agreement, which will run for 20 years, is the successor to Lomé IV and wascreated to help the ACP deal with challenges that hinder their development such as poverty, lack of economic opportunities and conflict.

The Cotonou Agreement is based on three broad areas of partnership namely, DevelopmentCooperation, Trade and the Political Dialogue. While the Lomé Convention and the Cotonou Agreement share similar objectives, the Cotonou provides a comprehensive framework to addressthe political, economic, social, cultural and environmental aspects of ACP development.

Though the Cotonou Agreement allowed for the continuation of Lomé IV non-reciprocal tradepreferences, it also provides for the replacement of those preferences by the end of 2007.

What is the EPA?

The Economic Partnership Agreement or EPA is an instrument of trade partnership required by the

Cotonou Agreement to replace the trade component of Lomé IV. It is expected that it will help ACPcountries, including CARIFORUM, to reduce poverty and achieve economic growth throughsustainable trade with Europe.

What is CARIFORUM?

CARIFORUM is an abbreviation of Caribbean Forum, the Caribbean Group of States which areMembers of the African, Caribbean and Pacific (ACP) Group of States. These countries include theindependent States of the Caribbean Community, Cuba and the Dominican Republic. In the EPA



negotiations, Cuba, though an ACP member from the Caribbean Group, is not party to the Cotonou Agreement, and therefore has not participated in the EPA negotiations.

Why do we need an EPA at this time?

The current ACP trade relationship with the EU under the Cotonou Agreement is based on Lomé

IV duty-free non-reciprocal preferential access of most ACP goods to European markets. The accessis described as preferential because other states both developed and developing, do not enjoy thesame degree of access. In this sense it is also discriminatory. It is non-reciprocal in that these ACPstates are not obliged to provide the same access to EU goods.

After Lomé IV was signed in 1989, other negotiations were taking place at the international level toreduce barriers to trade between countries on the international market. The ACP States and Europe,as participating Members in that round of negotiations which culminated in the establishment of the WTO Agreement in 1994, agreed to the principle that countries should not discriminate against eachother, except in a few exceptional cases. This obligation to uphold this principle of non-discrimination compelled ACP States and the EU to make provision for the replacement of Lomépreferences under the Cotonou Agreement of 2000.

Until these preferences can be terminated, the trade relationship has required special exemption or waiver from the WTO. This WTO waiver that covers the current preferential access was grantedonly because of ACP and Europe’s agreement to reduce the preferences granted to ACP countries. This waiver will expire on 31st December 2007.

The Lomé IV preferences present implications for the treatment of non-ACP WTO Members thatseek better access in to Europe. Though the preferences are technically covered by a waiver, they have generated angst and disquiet amongst these interested WTO members. For example, in the caseof bananas, both the ACP and Europe were also compelled by the pressures of WTO litigation tofind a WTO compatible replacement to the Lomé preferences that would facilitate market access fortraditional ACP exports. Disputes lost by Europe and initiated in 1996 by Latin American countries

and the US, and again in 2006 by Ecuador, challenged Europe’s import regime for bananas, atraditional ACP export covered by Lomé IV.

Obtaining a waiver for another preferential non-reciprocal trade agreement after the current oneexpires is therefore considered improbable because of the political and economic interests of non- ACP WTO members in the discontinuation of ACP preferential access to Europe.

In addition to the consideration of the expiring WTO waiver, the Cotonou has built-in a schedule forthe discontinuation of the Lomé preferences by the beginning of 2008. We have until that date tonegotiate a new agreement that is WTO compatible. By replacing the current WTO incompatiblenon-reciprocal preferential trade arrangements with Europe, the EPAs should prevent othercountries from successfully challenging the ACP’s privileged access to European markets.

What makes the EPA WTO compatible?

Under the new relationship between the regions, trade liberalization in goods between the EU andthe ACP is required to ensure that the EPAs in goods are compatible with the rules on non-discrimination under the World Trade Organization. While non-discrimination is a pillar of the WTO,there are permitted exceptions where the principle need not be applied. Though the EPA in goods will in practice be discriminatory against non-ACP WTO members, it qualifies as a Regional Free Trade Agreement (RFTA) and therefore is technically permissible under the WTO rules, specifically



the General Agreement on Tariffs and Trade (GATT) Article XXIV. Under these rules the ACP andEU must exchange market access offers. This means they must exchange schedules for theliberalization of their respective goods markets. However, it is not necessary that the offers share thesame degree of liberalization commitment.

GATT Article XXIV is clear on the test that must be passed in order for an RFTA to be considered

WTO compatible. The most important elements of that test are that firstly, the RFTA must not raisethe overall level of protection and make access to products of other countries not participating in theRFTA more difficult. Secondly, there is an obligation to liberalize “substantially all trade” amongstthe participants of the RFTA.

The first test reflects an obligation to the principle to keep the level of discrimination at a minimumso that global trade is not excessively distorted. The second test is much more controversial in that“substantially all trade” is not defined by the WTO rules. The EPA obligates both the ACP and theEU to open their markets.

On one hand, the EU has offered duty-free, quota free access for all ACP goods, with some delay forrice and sugar. On the other, in the CARIFORUM negotiations, reaching consensus on the degree to

which CARIFORUM must liberalize to satisfy this WTO criterion has been particularly challenging and controversial. CARIFORUM liberalization presents difficult fiscal implications forCARIFORUM economies.

Though an EPA must address market access in goods, it may also address services and investment. If services are included, then the EPA as a RFTA, must also meet similar requirements under the WTOrules on trade in services.

What if there is no EPA by the beginning of 2008?

In light of the expiring Cotonou waiver, without an EPA, the only alternative is to use the EU’sGeneralized System of Preferences (GSP) from which all developing countries, including the ACP,

may benefit. Obtaining a waiver on another non-reciprocal preferential trade agreement is unlikely. Therefore the EU can no longer legally continue these trade arrangements after 2007.

For ACP countries that considered themselves not in a position to enter into an EPA, Article 37.6 of the Cotonou obligated them to request the EU to examine in 2004, all possible alternatives for ACPcountries, to ensure that ACP countries are provided market access that is equivalent to the currentpreferential market access.

However, the Cotonou Agreement is quite clear that any alternative arrangement must becompatible with the rules of the WTO. After consultation and examination, GSP was found to bethe only legally compatible alternative to the EPA but it facilitates less generous access than which iscurrently available under the Cotonou Agreement. Furthermore, GSP is not based on the principle of

partnership and development between Europe and the ACP. In recognition of this, CARIFORUMduring that consultation and examination period in 2004 did not indicate an inability to enter into anEPA with Europe.



What is GSP?

Under WTO rules, developed countries are allowed, at their discretion, to offer to all developing countries in a non-discriminatory fashion, non-reciprocal market access to their markets. The

arrangement through which this form of preferential access is offered is known as the GeneralizedSystem of Preferences. The European Union offers different levels of access under their GSPregime. The main ones are described below.

1. Under the Standard GSP scheme the available access is open to developing countries ingeneral so the margin of preference which Caribbean exports currently enjoy will becancelled out. Under GSP only a few products are eligible for duty-free access. A tariff willbe applied to the other products allowed under the Standard GSP that are ineligible for duty free treatment. This means that there would be a significant tariff jump for most ACPexports, including CARIFORUM’S largest exports. The resultant higher prices will makemost of the region’s current exports to the EU uncompetitive.

2. For some developing countries the Standard GSP is not the only option. Without an EPA

the world’s poorest countries or Least Developed Countries (LDC), some of which are ACPcountries, would still be eligible to benefit from the special ‘Everything but Arms’arrangement under the GSP scheme. This arrangement grants duty-free access to LDCs forall products except ammunition and guns. While Haiti, a CARIFORUM member, is a LDC,the rest of CARIFORUM do not qualify as LDCs. Therefore, most CARIFORUM States would not be eligible for this arrangement.

3. The last and newest arrangement under the Scheme is the GSP+ arrangement. This offersduty-free access to significantly more items than under Standard GSP. However, for mostCARIFORUM Countries GSP+ would not be beneficial. For example, of the top twelveCARIFORUM exports, eight would face tariffs that will be prohibitive to competitive export.In addition, sugar, bananas, rice and rum and alumina, all of which are significantCARIFORUM exports, are excluded from the EU GSP regime. Only a few CARIFORUM

industries would realize beneficial market access under GSP+ compared to standard GSP.

The effect of GSP would be damaging and would inhibit the ability of current exporters to continueexporting to Europe, and offers little prospects to new producers that seek to penetrate theEuropean market. Furthermore, the entire GSP scheme does not incorporate any framework fortrade in services such as tourism and cultural services.

What will the EPA cover?

The EPA is primarily designed to replace the current trade arrangement for goods, which will ceaseto exist at the beginning of 2008. The core of the EPA is trade in goods. CARIFORUM is however,especially interested in negotiating trade in services, investment and trade related issues like

innovation, as well as development assistance, within its EPA. Given the Caribbean’s declining eligibility for international aid and the decline of preferential market access, for the small developing countries of the Caribbean few avenues remain to support the process of diversifying theireconomies and developing in a sustainable way. The EPA presents a unique opportunity forCARIFORUM to obtain such support.Given the importance of these areas to the regional economy and its future, the EU has also been prepared to negotiate these areas.



What opportunities will the EPA provide?

1. The EPA will broaden access for CARIFORUM goods and services to the European markets,including the French territories of Guadeloupe, Martinique and French Guiana.

2. Like ordinary RFTAs, the EPA will also open up ACP markets to European exports. But unlikemost regional free trade arrangements the EPA will allow ACP countries as much time as possible toadjust to opening up their own markets to European goods. In addition to these flexibilities the EUhas pledged to provide financial and non-financial parallel development resources.

3. Under the EPA, opportunities will be provided for investment promotion and for local firms toimprove their international competitiveness.

4. The CARIFORUM EPA also seeks to avoid having development compromise the environmentand the rights of workers.

5. Mention has already been made of the obligation to open markets to EU exporters. The positiveside of this coin is that it can help to reduce the cost of imports. Therefore inputs for CARIFORUMproducers and service providers sourced from Europe could become cheaper, which could result inthe reduction of the price of local goods and services for consumers within CARIFORUM.

6. In addition to duty-free, quota-free access, a number of financing and technical assistancemeasures contained in the EPA, can help to reduce the cost of exporting to Europe, especially wherethese arise from administrative and processing inefficiencies and obligations.

7. Through improved competition between local goods and European goods, local consumers canexpect lower prices and wider variety of merchandise, making it easier on household budgets.

8. If new as well as established local industries take advantage of the many measures andopportunities negotiated to date in the EPA, they will be in a position to competitively develop,produce and sell high quality CARIFORUM goods and services on international markets.



Getting to Know the EPA: Provisions on Services and Investment



Does the EPA text include provisions on Services and Investment?

Yes. The EPA contains a comprehensive section on Investment and Services as well ascommon rules on E-commerce. It provides a special provision for the Bahamas and Haiti tojoin the Agreement but they must submit their commitments on investment and services within six months.

Why does the EPA include provisions on Investment?

While European investments into CARIFORUM have generally increased over the lastdecade, investment flows in recent years have been stagnant in most non-tourism sectors. The Parties agreed to investment liberalization in the EPA, in order to establish rules thatfacilitate the easier flow of investment across the borders of the European Union and allCARIFORUM countries, and a reduction in discriminatory treatment of foreign investors within their respective territories, and greater predictability and transparency. Such anagreement will benefit CARIFORUM countries in terms of transfer of technology, creationof jobs, quality products and services; while creating a more favourable investment climatefor their investors in the European Union. The EU is a significant outward investor, with 9EU members ranking in the top twenty leading outward investor economies. Therefore aproperly managed relationship with the EU should create viable opportunities forCARIFORUM, and stimulate growth and dynamism in EU investment flows to theCaribbean.

What are the provisions on Investment in the Agreement?

The EPA rules on investment prescribe the conditions of market access in manufacturing,mining, agriculture and forestry, and service sectors in European and CARIFORUM states.Except for some sensitive sectors, both the EU and CARIFORUM have liberalized severalareas of manufacturing. However, public services and utilities and other sensitive sectorshave not been opened to foreign participation. CARIFORUM has maintained specialreservations for small and medium enterprises in some sectors. The EU also has excluded afew sectors and maintains reservations in some sectors for some of its newer member states.



In the European Union (EU), CARIFORUM investors will be treated in the same way asnationals of the European Union. This means that CARIFORUM investors within the EU would be treated no less favorably than domestic EU investors within the EU, and vice versa.In addition, most-favoured nation treatment will apply, which means that investors from a

‘third country’, a country that is not Party to the EPA, will not be given better treatmentthan CARIFORUM investors within the EU, and vice versa.

The EPA includes provisions which guarantee that investment liberalization does not resultin high social and environmental costs. This has been facilitated through the inclusion of rules that ensure that investors safeguard the Environment and maintain high labour andoccupational health and safety standards. Furthermore, it forbids investors from engaging incorruption to get special concessions from public officials.

Why does the EPA include provisions on services?

Given the economic importance of the services sector to both the Caribbean and theEuropean Union, the volume of trade in services between the two regions, and the inter-dependence of the services sector with manufacturing and agriculture, the EPA necessarily includes rules for the treatment of services suppliers and the provision of services.

Sixty percent of all CARIFORUM services exports to the EU are in tourism and travel-related services. CARIFORUM has negotiated rules and market access concessions onservices in the EPA as the Services sector, especially the knowledge-based services sub-sector, presents the best prospect for economic diversification and global repositioning because of its value-added potential. For CARICOM (excluding Trinidad and Tobago),services account for approximately 62% of total exports, and in the case of the OECS

countries, averages approximately 80% of total exports. Services exports therefore accountfor the major share of total exports of individual CARICOM countries, with the exceptionof Trinidad and Tobago, Guyana, Belize and Haiti. Services output relative to total GDP forCARICOM countries was over 60% between 1996 and 2004 for the MDCs and over 80%for the LDCs.

The EU has a growing economy and represents a viable market of approximately 457 millionpersons in 27 countries, with a GDP per capita (purchasing power standard) of US$23,500.80 (2004). The EU has great potential to absorb increased services exports fromCARIFORUM as its import penetration rates for goods and services have increased between2000 and 2005.

What are the provisions on Services in the Agreement?

In the case of Services, there are specific provisions on the regulatory framework andcooperation for several key sectors, notably:

- Tourism- E-commerce;- Courier;



- Telecommunications;- Financial services; and

- Maritime transport;- Cultural and Entertainment Services

With respect to professional services, there are also provisions for cooperation and mutualrecognition of qualifications as well as technical assistance for the tourism sector. Withrespect to the movement of services suppliers between Europe and the Caribbean, the EPAincludes special provisions for Short Term Visitors for Business Purposes. This allowsCARIFORUM nationals to visit the EU for brief periods for business reasons related toresearch and design, marketing, training, trade fairs and sales. While the EPA does notcommit the Parties to the issuing visas, both sides have committed to making movementacross borders easier.

Does the Agreement on Services and Investment include provisions for assistance of CARIFORUM States?

Yes. The EPA has complementary development and trade components. The Agreement onServices and Investment includes provisions on development cooperation from the EU toaddress a range of needs in the Caribbean such as developing regulatory regimes, building the capacity of regional services firms, market intelligence, interaction with EU firms, among other activities. In sector specific sections of the agreement there are also tailoredcooperation mechanisms such as environmental management and equivalency in sustainabletourism standards in the tourism section, and cultural exchanges and dialogue, in theProtocol on Cultural Cooperation.

Human resource development in the Caribbean is another focus of the Annex on Tourism which provides for assistance and training to service suppliers and support for training

institutions. In the services agreement, there are also provisions for cooperation and mutualrecognition of qualifications.

Which sectors have been opened up by the EU to CARIFORUM?

The EU has opened more than 90 percent of the sectors listed in the World TradeOrganisation (WTO) W/120 Services Sectoral Classification List, which is based on UnitedNations Central Classification (UNCPC) categories and used as the basis for negotiationsunder the in the WTO. These sectors range from Business services, Communications,

Construction, Distribution, Environmental, Financial, Transport, Tourism and Recreationservices. This liberalization has been extended across the full range of modes of supply, which are defined in the table below. The EPA Services Chapter, like several Free Trade Agreements (FTAs), consolidates Modes 1 and 2 as cross-border services; however, formarket access commitments, CARIFORUM has maintained these as separate modes.



Modes of Supply in Services TradeMode 1: Cross-border supply is defined to cover services flows from the territory of one Member into the territory of another Member (e.g. banking or architectural services transmitted via telecommunications or mail);

Mode 2: Consumption abroad refers to situations where a service consumer moves into another Member's territory toobtain a service;Mode 3: Commercial presence means that a service supplier of one Member establishes a territorial presence, including through ownership or lease of premises, in another Member's territory to provide a service (e.g. domestic subsidiaries of foreign insurance companies or hotel chains); andMode 4: Presence of natural persons refers to persons of one Member entering the territory of another Member tosupply a service.

In Mode 1 and Mode 2 the EU has liberalized the vast majority of its sectors. In the case of investment (Mode 3) the EC has liberalized almost all sectors for CARIFORUM firms in theEuropean Union with only some exclusions and limitations in a few sectors, mainly applicable to the new EU Member States.

In Mode 4, though certain conditions remain for European and Caribbean services suppliers,the EC has granted market access for Caribbean professionals in 29 sectors for employees of Caribbean firms or Contractual Service Suppliers (CSS) to be able to enter the EU to supply services for up to 6 months in a calendar year. This represents a significant improvement when compared to the EC’s offer in the WTO.

Sectors Liberalized by the EU for Temporary Entry by Contractual Services Suppliers from Cariforum

(employees of services firms)

1) Legal advisory services in respect of international public law and foreign law (i.e. non-EU law)

2) Accounting and bookkeeping services3) Taxation advisory services4) Architectural services5) Urban planning and landscape architecture services

6) Engineering services7) Integrated Engineering services8) Medical and dental services

9) Veterinary services10) Midwives services11) Services provided by nurses, physiotherapists and paramedical personnel12) Computer and related services

13) Research and development services14) Advertising services15) Market Research and Opinion Polling16) Management consulting services

17) Services related to management consulting18) Technical testing and analysis services19) Related scientific and technical consulting services20) Maintenance and repair of equipment, including transportation equipment, notably in the context of an

after-sales or after-lease services contract21) Chef de cuisine services22) Fashion model services23) Translation and interpretation services

24) Site investigation work 25) Higher education services (only privately-funded services)26) Environmental services27) Travel agencies and tour operators' services

28) Tourist guides services

29) Entertainment services other than audiovisual services



In addition, independent Professionals or self employed professionals have been granted

access to the EU in 11 sectors. Certain conditions still apply, such as economic needs testsbut there are no restrictions on the number of service suppliers that may enter the EUmarket. This level of quota free market access commitment in services is unprecedented inEU services trade relations at the bilateral level and the multilateral level. Which sectors have been opened by CARIFORUM to the EU?

The sectors that were liberalized by CARIFORUM states include those that have positivedevelopment impacts and in which Member States are seeking investment or new technologies as well as sectors that are important to create economic opportunities inoutsourcing contracts from European firms. To a large extent, most countries liberalizedcross-border trade and investment. However, there is quite limited temporary entry (Mode 4)

coverage for contractual service suppliers and independent professionals.

The main sectors that most CARIFORUM states have liberalized in the EPA are: Businessservices (accounting, architecture, engineering, etc); computer and related; research anddevelopment; environmental services; management consultancy; maritime transport;entertainment; tourism; among others. Some of the commitments will be phased-in overtime in some member states to address sensitivities at the national level.

Are provisions on Tourism services included in the EPA?

Yes. The EPA delivered specific disciplines on tourism services because of its importance tothe social and economic development of both regions, whereas the WTO has beenunsuccessful in this regard. Therefore the EPA yielded benefits for the development of CARIFORUM’s tourism sector not achieved at the multilateral level. These rules arecomplemented by a commitment to legally binding relatively open market conditions foreach other. For example, The EC has made commitments for travel agencies, tour operators,tourist guides services. CARIFORUM States on the other hand have made commitments inrelation to hotels and restaurants, marina services and spa services.

Sectors Liberalized by the EU for Temporary Entry by Independent Professionals (self-employed persons)

1) Legal advisory services in respect of international public law and foreign law (i.e. non-EU law)

2) Architectural services3) Urban planning and landscape architecture services4) Engineering services5) Integrated Engineering services

6) Computer and related services7) Research and development services8) Market Research and Opinion Polling9) Management consulting services

10) Services related to management consulting

11) Translation and interpretation services



The EPA text establishes a common understanding on the regulatory framework for thetourism

The EPA has created institutions such as the CARIFORUM –EC Council and the

Committees which deal with specific issues to ensure the implementation of commitments inthe Agreement. For example the Joint Committee will facilitate the exchange of informationand consultation between officials and other stakeholders on matters pertaining to tourism.

What are benefits of the provisions on Tourism?

The EPA includes measures that would make it easier for EU investors to invest in theRegion, apart from the rules on competition mentioned above. It also recognises the exportcapacity and competitiveness constraints that confront the Region, through provisions aimedat strengthening CARIFORUM firms and institutions, including small firms which aretraditionally marginalised in the European and global market by larger international players.For example, there are provisions for programmes to facilitate cooperation between industry

associations, and mechanisms to improve access to market information.

With respect to the movement of tourism professionals, the tourism sector is highlighted asone of the priority sectors for dialogue between the relevant professional bodies in theCaribbean and Europe, with a view to signing a mutual recognition agreement (MRA).

Mutual recognition

The initiation of meetings between professional bodies for the negotiation of mutualrecognition agreements are scheduled no later than three years after entry into force of theEPA. Such an agreement would essentially be to accept each other’s methods of accrediting

professionals in the respective educational and certification systems. The rights of access of qualified CARIFORUM professionals to the European services market will not be reducedpending negotiation of MRAs, and CARIFORUM and European professionals will berequired to comply with any European industry standards, qualifications and criteria in theterritory of the other Party.

Do the EU services commitments also extend to the cultural sector?

Yes. The traditional relationship between the Caribbean and Europe under the Cotonou Agreement was limited to cooperation for cultural develop; however the EPA has

successfully secured market access commitments for CARIFORUM in some key areas. Inthe case of Entertainment services, a sector in which the Caribbean is quite competitive, 27European states will liberalize Entertainment services (CPC 9619) with some limitations intwo states. This level of market access for entertainment is a first for any trade agreementof the EU. In the WTO only two EU states have commitments for the temporary movement of contractual service suppliers in entertainment services; and in the EU-Chile Trade Agreement only four states. In the EPA, the activities that are being liberalized by theEU include the whole range of artists and cultural practitioners in music, dance, theatre, visual arts, as well as sculptors, authors, poets, among others; these are listed by CPC



number in the box below. CARIFORUM countries have also made market accesscommitments, particularly in the audiovisual sector, where they hope to send a clear marketsignal in order to attract European investment.

The EC offer maintain some controls and conditions but there are no quotas or limits on the

number of natural persons who can enter under this commitment. Caribbean artists,musicians, and other cultural practitioners and their crews who are registered underbusinesses will be able to send their members or employees to almost all EU states to supply entertainment services.

Is there any additional concession provided to develop cultural industries in theEPA?

Indeed there is! The Protocol on Cultural Cooperation is an innovative and historicconvention which provides for greater cooperation in the development of cultural industries.It is designed to complement the market access commitments under Recreational, Cultural

and Sporting services. While the Protocol applies across all cultural fronts, there areparticularly significant audiovisual provisions. Co-produced audiovisual products andservices involving European and Caribbean creative teams will qualify as European worksand meet the cultural content rules in all EU states. When co-production treaties arecompleted between individual EU states and Caribbean states or regions, the Protocol willalso make it possible for audiovisual producers from one CARIFORUM country to accessfunding for creative projects in another country with a co-production treaty. Furthermore,through the Protocol, artists and other cultural practitioners will be able to enter Europeanstates to collaborate on projects and upgrade their training for a period up to 90 days in any 12 month period.

The EPA, through this unprecedented Protocol, could be an effective tool in thedevelopment of CARIFORUM cultural industries and the region’s internationalcompetitiveness. For cultural practitioners, the EPA presents opportunities to developcontact networks which could later evolve into viable commercial opportunities.

EU Services Commitments – Entertainment Services

9619 Entertainment services

96191 Theatrical producer, singer group, band and orchestra entertainment services

96192 Services provided by authors, composers, sculptors, entertainers & other

individual artists

96193 Ancillary theatrical services n.e.c.

96194 Circus, amusement park and similar attraction services

96195 Ballroom, discotheque and dance instructor services

96199 Other entertainment services n.e.c.



Will the economic needs tests and other conditions prevent CARIFORUM access tothe EU services market?

The economic needs tests (ENTs) and all other conditions which may be applicable are notdesigned to unjustifiably prevent or impede CARIFORUM access. Rather these conditions

and controls are designed to prevent displacement of domestic firms and services suppliers,as well as “over-supply” of a particular service. The EU and CARIFORUM both opted toapply such conditions as deemed necessary to ensure that liberalization does not lead to suchdisplacement in sensitive sectors, and sectors where demand for foreign services suppliers will likely fluctuate. In domestic policy, ENTs may apply to local and foreign servicesproviders, or only to foreign suppliers.

When will the EPA commitments come into effect?

The commitments will start when the EPA enters into force for CARIFORUM and for allEU states except the new members, (Eastern and Central European states) whosecommitments will start in 2011, and Bulgaria and Romania in 2014.

What happens if these provisions are not honored?

The market access commitments on services in the EPA Title on Investment, Trade inServices and E-Commerce are covered by dispute settlement provisions. Therefore,Caribbean traders or investors or business persons will be able to challenge any restrictionsto entering into a European jurisdiction which are inconsistent with the agreement orreneging on European commitments which they may confront.

Is CARIFORUM obligated to match the commitments of the EC?

The EPA and a Regional Free Trade Agreement (RFTA) is not based on unilateralpreferences and therefore under WTO rules on RFTAs between developed and developing countries, reciprocity is required. Furthermore, the rules require that liberalizationcommitments covers substantially all services sectors between the Parties to the Agreement,and that they do not explicitly exclude any mode of supply. However, the level of reciprocity in the exchange of concessions does not have to be the same, or symmetrical, for developedand developing countries in order to meet the requirements of multilateral rules. Therefore,as a developing region, CARIFORUM has not matched the commitments of the EC in allservices sectors.

Are there any advantages to liberalizing CARIFORUM services?

CARIFORUM States’ strategy in binding the opening of their services market is intended toattract increased investment in the region in order to boost the performance of establishedsectors and promote growth of new service industries. As well, market entry can result ingreater efficiencies in a range of services that are inputs to manufacturing and other services.



It is expected that there will beincreased trade in the short termin a wide range of businessservices, such as professionalservices, computer services, and

scientific and technical testing and consulting services, if regional firms positionthemselves to take advantage of outsourcing opportunities fromEuropean firms. Significant gainsare also expected in tourism,maritime transportation andcultural and entertainmentservices.

The main sectors that most CF states have liberalized in the EPA.- Accounting, auditing and bookkeeping Services

- Architecture- Engineering- Computer and related Services- Research and development

- Management consulting- Services incidental to manufacturing- Related scientific and technical consultant services- Telecommunications

- Convention services- Courier services- Environmental services- Hospital services- Tourism and travel-related services

- Entertainment services

- Maritime transport



Getting to Know the EPA: Provisions on Agriculture



Does the EPA include provisions on Agriculture and Fisheries?

Yes! There is a full chapter dedicated to agriculture and Fisheries! Not only are theprovisions under this chapter aimed at increasing the competitiveness of this sector but they are aimed at securing the sustainable development and exploitation of CARIFORUM’s Agriculture and Fisheries sector. Emphases were placed on improving diversification, thissector’s viability, and its capacity to be a facilitator of poverty eradication.

Has CARIFORUM Committed to ‘opening up’ all aspects of this sector to theEuropeans?

No. In addition to duty free/quota free access for all CARIFORUM goods, CARIFORUMhas been able to ensure that a number of CARIFORUM products, including someagricultural products are excluded indefinitely from liberalization within the EPA to ensurethat local producers are protected. Sensitive goods have protection from liberalization insome cases up to 25 years. Furthermore, provisions are made to remove tariffs from 80% of goods imported from the EU gradually over a 15 year period.

Even though CARIFORUM liberalization is phased, wouldn’t Europe have an unfairadvantage because of its ability to subsidize their agricultural sector?

No. The EU is obligated under the EPA to eliminate export subsidies on all agriculturalproducts for which CARIFORUM has agreed to liberalize. On the other hand,CARIFORUM is not required to eliminate export subsidies which are sanctioned by the WTO under the Agreement on Agriculture and the Agreement on Subsidies andCountervailing Measures.



Have there been any funding commitments from the EU to development Agricultureand Fisheries?

Yes. The EU has made specific commitments on development cooperation the aim of which

is to allocate funding to core areas essential to the development of the sector. These include

1. Improvement in the competitiveness of potentially viable production, including

downstream processing through innovation, training, promotion of linkages and

other support activities, in agricultural and fisheries products, including both

traditional and non traditional export sectors;

2. Development of export marketing capabilities, including market research, both for

trade between CARIFORUM States and trade between the CARIFORUM States

and the EU, as well as the identification of options for the improvement of

marketing infrastructure and transportation, and the identification of financing and

cooperation options for producers and traders;

3. Compliance with and adoption of quality standards relating to food production and

marketing, including standards relating to environmentally and socially sound

agricultural practices and organic and non-genetically modified foods;

4. Promotion of private investment and public-private partnerships in potentially viable

production;

5. Improvement in the ability of CARIFORUM operators to comply with national,

regional and international technical, health and quality standards for fish and fish

products;

6. Building or strengthening the scientific and technical human and institutional

capability at regional level for sustainable trade in fisheries products, including

aquaculture; and

7. Supporting the process of dialogue referred to above.

How will the denouncement of the Sugar Protocol affect CARIFORUM SugarProducers?

The Sugar Protocol which was signed in 1975 obligated the EU, for an indefinite period, toguarantee ACP sugar producers access to the EU market for fixed quantities of ACP sugar atpreferential prices. The Protocol included a provision for the EU or the signatory ACPStates to discontinue the specific treatment under the Protocol by the EU or the ACP,subject to two years notice. However, that provision did not prejudice the EU commitmentto the principles of the Protocol. As a consequence, it was necessary for the EU to respectthese commitments while undertaking its sugar reform. The EU sugar reform, formally



adopted in 2006, became necessary after a WTO ruling indicated that Europe’s subsidies fordomestic producers were in violation of the WTO rules on trade.

The EU sugar reform has resulted in the discontinuation of guaranteed prices for EU sugarproducers. This factor, amongst others, required a reformulation of EU preferential

treatment of ACP sugar producers which are signatory to the Protocol.

While the EU will discontinue the fixed price/quota guarantees under the Protocol, ACPproducers, through the EPA, now have improved EU market access which is free fromquota or duty restrictions. The EPA has been formulated to help countries signatory to theProtocol to adapt to the effect of EU sugar reform, while preserving preferential marketaccess but with additional provisions to improve the competitiveness of the CARIFORUMsugar sector.

How has sugar been treated in the EPA?

Under the EPA, the CARIFORUM region has gained additional access to the EU market

of 60,000 tons, which is in excess of the 160,000 tons available under the Protocol. Thisadditional access will be available until the formal end of the Protocol in September 2009. This is particularly advantageous to the larger CARIFORUM sugar producers which willnow be able to sell more at guaranteed prices. Of the additional amount, 30,000 tons will goto CARIFORUM Sugar Protocol (i.e. CARICOM) countries and the remainder to theDominican Republic, which is not signatory to the Protocol. While the Sugar Protocolremains in effect the EU has given assurances that it will seek to ensure that any shortfallson the SP quotas are reallocated among other CARICOM countries.

The EPA also contains a provision which commits the EU to engage in prior consultations with CARIFORUM on any policy developments that may impact on the competitive

position of the region’s traditional exports on the EU market, which includes sugar. Suchpolicy developments include changes in the EU’s internal regulatory framework, any plannedliberalization of the sugar market by the EU at the level of the WTO, as well as liberalizationundertaken in other bilateral free trade agreements.

What about the treatment of other traditional exports like rice and bananas?

For a period of two years leading up to full duty-free and quota-free access, CARIFORUMrice exporting countries will be given quotas of 187,000 tons for 2008 and 250,000 tons for2009. The quotas will be duty-free compared to the approximately €65 per tonne currently paid. The present quota available to the ACP (Guyana and Suriname) amounts to 145,000

tonnes and the proposed quotas for 2008 and 2009 would therefore represent increases of 29% and 72%, respectively. Furthermore, the new arrangement makes no distinctionbetween whole grain and broken rice, which means that CARIFORUM exporters should bebetter able to target the higher-priced market for whole grain rice, once supplies are available.In addition, the Agreement contains a Joint Declaration committing the EU to keeping thelicensing and other arrangements relating to the quota under review with aim of ensuring that CARIFORUM exporters obtain the maximum benefit from the trade.



Bananas will gain full duty-free and quota-free access to the EU market from the inceptionof the EPA. In effect, the recent ruling of the WTO dispute settlement Panel against theEU’s preferences granted to ACP banana exporters, will no longer be applicable since theduty-free preferences under the EPA are now protected under WTO rules governing freetrade areas.

The Agreement also contains a comprehensive Joint Declaration on Bananas in which theimportance of the industry to several CARIFORUM countries is fully acknowledged, and which also recognizes the need for the EU to maintain significant preferences for theproduct. Importantly, the Declaration also commits the EU to provide funding to assist theindustry in making the necessary adjustments, including diversification initiatives, andaddressing the social impacts that may arise from the new trading environment.



EECC--CCaarriif f oorruumm

EEccoonnoommiicc PPaarrttnneerrsshhiipp

AAggrreeeemmeenntt ((EEPPAA))

( ( C C A A R R I I F F OO R RU U M M E E x x ccl l uu s si i oonn s s L Li i s st t ) )



1

Exclusions List Agreed by Principal Negotiators (Dec 15th

, Barbados)

HS6 Description

0105.11 Live Fowls Of The Species Gallus Domesticus, Weighing <= 185 G (Excl. Turkeys And

Guinea Fowls)

0105.12 Live Domestic Turkeys, Weighing <= 185 G

0105.19 Live Domestic Ducks, Geese And Guinea Fowls, Weighing <= 185 G

0105.92 Live Fowls Of The Species Gallus Domesticus, Weighing > 185 G But <= 2 Kg

0105.93 Live Fowls Of The Species Gallus Domesticus, Weighing > 2 Kg

0105.99 Live Domestic Ducks, Geese, Turkeys And Guinea Fowls, Weighing > 185 G

0201.10 Carcases Or Half-Carcases Of Bovine Animals, Fresh Or Chilled

0201.20 Fresh Or Chilled Bovine Cuts, With Bone In (Excl. Carcases And 1/2 Carcases)

0201.30 Fresh Or Chilled Bovine Meat, Boneless

0202.10 Frozen Bovine Carcases And Halfcarcases

0202.20 Frozen Bovine Cuts, With Bone In (Excl. Carcases And Halfcarcases)

0202.30 Frozen, Boneless Meat Of Bovine Animals

0203.11 Fresh Or Chilled Carcases And Half-Carcases Of Swine

0203.12 Fresh Or Chilled Hams, Shoulders And Cuts Thereof Of Swine, With Bone In

0203.19 Fresh Or Chilled Meat Of Swine (Excl. Carcases And Half-Carcases, And Hams, Shoulders

And Cuts Thereof, With Bone In)

0203.21 Frozen Carcases And Half-Carcases Of Swine

0203.22 Frozen Hams, Shoulders And Cuts Thereof Of Swine, Boneless

0203.29 Frozen Meat Of Swine (Excl. Carcases And Half-Carcases, And Hams, Shoulders And Cuts

Thereof, Boneless)

0204.10 Fresh Or Chilled Lamb Carcases And Half-Carcases

0204.21 Fresh Or Chilled Sheep Carcases And Half-Carcases (Excl. Lambs)

0204.22 Fresh Or Chilled Cuts Of Sheep, With Bone In (Excl. Carcases And Half-Carcases)

0204.23 Fresh Or Chilled Boneless Cuts Of Sheep0204.30 Frozen Lamb Carcases And Half-Carcases

0204.41 Frozen Sheep Carcases And Half-Carcases (Excl. Lambs)

0204.42 Frozen Cuts Of Sheep, With Bone In (Excl. Carcases And Half-Carcases)

0204.43 Frozen Boneless Cuts Of Sheep

0204.50 Fresh, Chilled Or Frozen Meat Of Goats

0206.10 Fresh Or Chilled Edible Offal Of Bovine Animals

0206.30 Fresh Or Chilled Edible Offal Of Swine

0206.41 Frozen Edible Livers Of Swine

0207.11 Fresh Or Chilled Fowls Of The Species Gallus Domesticus, Not Cut In Pieces

0207.12 Frozen Fowls Of The Species Gallus Domesticus, Not Cut In Pieces

0207.13 Fresh Or Chilled Cuts And Edible Offal Of Fowls Of The Species Gallus Domesticus0207.14 Frozen Cuts And Edible Offal Of Fowls Of The Species Gallus Domesticus

0207.24 Fresh Or Chilled Turkeys Of The Species Domesticus, Not Cut In Pieces

0207.25 Frozen Turkeys Of The Species Domesticus, Not Cut Into Pieces

0207.26 Fresh Or Chilled Cuts And Edible Offal Of Turkeys Of The Species Domesticus

0207.27 Frozen Cuts And Edible Offal Of Turkeys Of The Species Domesticus

0207.32 Fresh Or Chilled Ducks, Geese And Guinea Fowls Of The Species Domesticus, Not Cut Into

Pieces



2

HS6 Description

0207.33 Frozen Ducks, Geese And Guinea Fowls Of The Species Domesticus, Not Cut Into Pieces

0207.34 Fresh Or Chilled Edible Fatty Livers Of Ducks Or Geese Of The Species Domesticus

0207.35 Fresh Or Chilled Cuts And Edible Offal Of Ducks, Geese Or Guinea Fowls Of The Species

Domesticus (Excl. Fatty Livers)0207.36 Frozen Cuts And Edible Offal Of Ducks, Geese Or Guinea Fowls Of The Species Domesticus

0209.00 Pig Fat, Free Of Lean Meat, And Poultry Fat, Not Rendered Or Otherwise Extracted, Fresh,

Chilled, Frozen, Salted, In Brine, Dried Or Smoked

0210.11 Hams, Shoulders And Cuts Thereof Of Swine, Salted, In Brine, Dried Or Smoked, With Bone

In

0210.12 Bellies 'Streaky' And Cuts Thereof Of Swine, Salted, In Brine, Dried Or Smoked

0210.19 Meat Of Swine, Salted, In Brine, Dried Or Smoked (Excl. Hams, Shoulders And Cuts

Thereof, With Bone In, And Bellies And Cuts Thereof)

0210.20 Meat Of Bovine Animals, Salted, In Brine, Dried Or Smoked

0210.91 Meat And Edible Offal, Salted, In Brine, Dried Or Smoked, And Edible Flours And Meals Of

Meat Or Meat Offal, Of Primates


Meat Or Meat Offal, Of Whales, Dolphins And Purpoises 'Mammals Of The Order Cetacea'

And Manatees And Dugongs 'Mammals Of The Order Sirenia'


Meat Or Meat Offal, Of Reptiles 'E.G. Snakes, Turtles, Alligators'


Meat Or Meat Offal (Excl. Meat Of Bovine Animals And Swine And Meat And Edible Offal

Of Primates, Whales, Dolphins And Purpoises 'Mammals Of The Order Cetacea', Manat

0302.11 Fresh Or Chilled Trout 'Salmo Trutta, Oncorhynchus Mykiss, Oncorhynchus Clarki,

Oncorhynchus Aguabonita, Oncorhynchus Gilae, Oncorhynchus Apache And Oncorhynchus

Chrysogaster'

0302.12 Fresh Or Chilled Pacific Salmon 'Oncorhynchus Nerka, Oncorhynchus Gorbuscha,

Oncorhynchus Keta, Oncorhynchus Tschawytscha, Oncorhynchus Kisutch, Oncorhynchus

Masou And Oncorhynchus Rhodurus', Atlantic Salmon 'Salmo Salar' And Danube Salmon

'Hucho Hucho'

0302.19 Fresh Or Chilled Salmonidae (Excl. Trout 'Salmo Trutta, Oncorhynchus Mykiss,

Oncorhynchus Clarki, Oncorhynchus Aguabonita, Oncorhynchus Gilae, Oncorhynchus

Apache And Oncorhynchus Chrysogaster', Pacific Salmon 'Oncorhynchus Nerka,

Oncorhynchus Gorbuscha,

0302.21 Fresh Or Chilled Lesser Or Greenland Halibut 'Reinhardtius Hippoglossoides, Atlantic Halibut

'Hippoglossus Hippoglossus' And Pacific Halibut 'Hippoglossus Stenolepsis'

0302.22 Fresh Or Chilled Plaice 'Pleuronectes Platessa'

0302.23 Fresh Or Chilled Sole 'Solea Spp.'

0302.29 Fresh Or Chilled Flat Fish 'Pleuronectidae, Bothidae, Cynoglossidae, Soleidae,

Scophthalmidae And Catharidae' (Excl. Halibut 'Reinhardtius Hippoglossoides, Hippoglossus

Hippoglossus And Hippoglossus Stenolepsis', Plaice 'Pleuronectes Platessa' And Sole 'S

0302.31 Fresh Or Chilled Albacore Or Longfinned Tunas 'Thunnus Alalunga'0302.32 Fresh Or Chilled Yellowfin Tunas 'Thunnus Albacares'

0302.33 Fresh Or Chilled Skipjack Or Stripe-Bellied Bonito

0302.34 Fresh Or Chilled Bigeye Tunas 'Thunnus Obesus'

0302.35 Fresh Or Chilled Bluefin Tunas 'Thunnus Thynnus'

0302.36 Fresh Or Chilled Southern Bluefin Tunas 'Thunnus Maccoyii'

0302.39 Fresh Or Chilled Tunas Of The Genus 'Thunnus' (Excl. Thunnus Alalunga, Thunnus

Albacares, Thunnus Obesus, Thunnus Thynnus And Thunnus Maccoyii)



3

HS6 Description

0302.40 Fresh Or Chilled Herrings 'Clupea Harengus, Clupea Pallasii'

0302.50 Fresh Or Chilled Cod 'Gadus Morhua, Gadus Ogac, Gadus Macrocephalus'

0302.61 Fresh Or Chilled Sardines 'Sardina Pilchardus, Sardinops Spp.', Sardinella 'Sardinella Spp.',

Brisling Or Sprats 'Sprattus Sprattus'0302.62 Fresh Or Chilled Haddock 'Melanogrammus Aeglefinus'

0302.63 Fresh Or Chilled Coalfish 'Pollachius Virens'

0302.64 Fresh Or Chilled Mackerel 'Scomber Scombrus, Scomber Australasicus, Scomber Japonicus'

0302.65 Fresh Or Chilled Dogfish And Other Sharks

0302.66 Fresh Or Chilled Eels 'Anguilla Spp.'

0302.69 Fresh Or Chilled Freshwater And Saltwater Fish (Excl. Salmonidae, Flat Fish, Tunas,

Skipjack Or Stripe-Bellied Bonito, Herrings, Cod, Sardines, Sardinella, Brisling Or Sprats,

Haddock, Coalfish, Mackerel, Sharks And Eels)

0302.70 Fresh Or Chilled Fish Livers And Roes

0303.11 Frozen Sockeye Salmon [Red Salmon] 'Oncorhynchus Nerka'

0303.19 Frozen Pacific Salmon 'Oncorhynchus Gorbuscha, Oncorhynchus Keta, Oncorhynchus

Tschawytscha, Oncorhynchus Kisutch, Oncorhynchus Masou And Oncorhynchus Rhodurus'(Excl. Sockeye Salmon [Red Salmon] 'Oncorhynchus Nerka')

0303.21 Frozen Trout 'Salmo Trutta, Oncorhynchus Mykiss, Oncorhynchus Clarki, Oncorhynchus

Aguabonita, Oncorhynchus Gilae, Oncorhynchus Apache And Oncorhynchus Chrysogaster'

0303.22 Frozen Atlantic Salmon 'Salmo Salar' And Danube Salmon 'Hucho Hucho'

0303.29 Frozen Salmonidae (Excl. Pacific Salmon, Atlantic Salmon, Danube Salmon And Trout)

0303.31 Frozen Lesser Or Greenland Halibut 'Reinhardtius Hippoglossoides', Atlantic Halibut

'Hippoglossus Hippoglossus' And Pacific Halibut 'Hippoglossus Stenolepis'

0303.32 Frozen Plaice 'Pleuronectes Platessa'

0303.33 Frozen Sole 'Solea Spp.'

0303.39 Frozen Flat Fish 'Pleuronectidae, Bothidae, Cynoglossidae, Soleidae, Scophthalmidae Und

Citharidae' (Excl. Halibut, Plaice And Sole)

0303.41 Frozen Albacore Or Longfinned Tunas 'Thunnus Alalunga'0303.42 Frozen Yellowfin Tunas 'Thunnus Albacares'

0303.43 Frozen Skipjack Or Stripe-Bellied Bonito 'Euthynnus -Katsuwonus- Pelamis'

0303.44 Frozen Bigeye Tunas 'Thunnus Obesus'

0303.45 Frozen Bluefin Tunas 'Thunnus Thynnus'

0303.46 Frozen Southern Bluefin Tunas 'Thunnus Maccoyii'

0303.49 Frozen Tunas Of The Genus 'Thunnus' (Excl. Thunnus Alalunga, Thunnus Albacares,

Thunnus Obesus, Thunnus Thynnus And Thunnus Maccoyii)

0303.50 Frozen Herrings 'Clupea Harengus, Clupea Pallasii'

0303.71 Frozen Sardines 'Sardina Pilchardus, Sardinops Spp.', Sardinella 'Sardinella Spp.' And Brisling

Or Sprats 'Sprattus Sprattus'

0303.72 Frozen Haddock 'Melanogrammus Aeglefinus'

0303.76 Frozen Eels 'Anguilla Spp.'

0303.78 Frozen Hake 'Merluccius Spp., Urophycis Spp.'

0303.79 Frozen Freshwater And Saltwater Fish (Excl. Salmonidae, Flat Fish, Tunas, Skipjack Or

Stripe-Bellied Bonito, Herrings, Cod, Sardines, Sardinella, Brisling Or Sprats, Haddock,

Coalfish, Mackerel, Dogfish And Other Sharks, Eels, Sea Bass And Hake)

0303.80 Frozen Fish Livers And Roes

0304.10 Fresh Or Chilled Fillets And Other Fish Meat, Whether Or Not Minced

0304.20 Frozen Fish Fillets



4

HS6 Description

0304.90 Frozen Fish Meat, Whether Or Not Minced (Excl. Fillets)

0305.30 Fish Fillets, Dried, Salted Or In Brine, Not Smoked

0305.49 Smoked Fish, Incl. Fillets (Excl. Pacific Salmon, Atlantic Salmon, Danube Salmon And

Herrings)0305.59 Dried Fish, Salted, Not Smoked (Excl. Cod And Other Fillets)

0305.69 Fish, Salted Or In Brine Only (Excl. Herrings, Cod, Anchovies And Fillets In General)

0306.11 Frozen Rock Lobster And Other Sea Crawfish 'Palinurus Spp.', 'Panulirus Spp.' And 'Jasus

Spp.', Whether In Shell Or Not, Incl. Rock Lobster And Other Sea Crawfish In Shell, Cooked

By Steaming Or By Boiling In Water

0306.12 Frozen Lobsters 'Homarus Spp.', Whether In Shell Or Not, Incl. Lobsters In Shell, Cooked By

Steaming Or By Boiling In Water

0306.13 Frozen Shrimps And Prawns, Whether In Shell Or Not, Incl. Shrimps And Prawns In Shell,

Cooked By Steaming Or By Boiling In Water

0306.14 Frozen Crabs, Whether In Shell Or Not, Incl. Crabs In Shell, Cooked By Steaming Or By

Boiling In Water

0306.19 Frozen Crustaceans, Whether In Shell Or Not, Incl. Crustaceans In Shell, Cooked By

Steaming Or By Boiling In Water (Excl. Crawfish, Lobsters, Shrimps, Prawns And Crabs)0306.21 Rock Lobster And Other Sea Crawfish 'Palinurus Spp., Panulirus Spp. And Jasus Spp.',

Whether In Shell Or Not, Live, Dried, Salted Or In Brine, Incl. In Shell, Cooked By Steaming

Or By Boiling In Water

0306.22 Lobsters 'Homarus Spp.', Whether In Shell Or Not, Live, Dried, Salted Or In Brine, Incl.

Lobsters In Shell, Cooked By Steaming Or By Boiling In Water

0306.23 Shrimps And Prawns, Whether In Shell Or Not, Live, Dried, Salted Or In Brine, Incl. Shrimps

And Prawns In Shell, Cooked By Steaming Or By Boiling In Water

0306.24 Crabs, Whether In Shell Or Not, Live, Dried, Salted Or In Brine, Incl. Crabs In Shell, Cooked

By Steaming Or By Boiling In Water

0306.29 Crustaceans, Whether In Shell Or Not, Incl. In Shell, Cooked By Steaming Or By Boiling In

Water (Excl. Frozen And Crawfish, Lobsters, Shrimps, Prawns And Crabs)

0401.10 Milk And Cream Of A Fat Content By Weight Of <= 1%, Not Concentrated Nor Containing

Added Sugar Or Other Sweetening Matter0401.20 Milk And Cream Of A Fat Content By Weight Of > 1% But <= 6%, Not Concentrated Nor

Containing Added Sugar Or Other Sweetening Matter

0401.30 Milk And Cream Of A Fat Content By Weight Of > 6%, Not Concentrated Nor Containing

Added Sugar Or Other Sweetening Matter

0402.10 Milk And Cream In Solid Forms, Of A Fat Content By Weight Of <= 1,5%

0402.21 Milk And Cream In Solid Forms, Of A Fat Content By Weight Of > 1,5%, Unsweetened

0402.29 Milk And Cream In Solid Forms, Of A Fat Content By Weight Of > 1,5%, Sweetened

0402.91 Milk And Cream, Concentrated But Unsweetened (Excl. In Solid Forms)

0402.99 Milk And Cream, Concentrated And Sweetened (Excl. In Solid Forms)

0403.10 Yogurt, Whether Or Not Flavoured Or Containing Added Sugar Or Other Sweetening Matter,

Fruits, Nuts Or Cocoa

0403.90 Buttermilk, Curdled Milk And Cream, Kephir And Other Fermented Or Acidified Milk AndCream, Whether Or Not Concentrated Or Flavoured Or Containing Added Sugar Or Other

Sweetening Matter, Fruits, Nuts Or Cocoa (Excl. Yogurt)

0405.10 Butter (Excl. Dehydrated Butter And Ghee)

0405.20 Dairy Spreads Of A Fat Content, By Weight, Of >= 39% But < 80%

0405.90 Fats And Oils Derived From Milk, And Dehydrated Butter And Ghee (Excl. Natural Butter,

Recombined Butter And Whey Butter)

0406.10 Fresh Cheese, Incl. Whey Cheese, Not Fermented, And Curd

0406.20 Grated Or Powdered Cheese



5

HS6 Description

0406.30 Processed Cheese, Not Grated Or Powdered

0406.40 Blue-Veined Cheese

0406.90 Cheese (Excl. Fresh Cheese, Incl. Whey Cheese, Not Fermented, Curd, Processed Cheese,

Blue-Veined Cheese, And Grated Or Powdered Cheese)0407.00 Birds' Eggs, In Shell, Fresh, Preserved Or Cooked

0408.11 Dried Egg Yolks, Whether Or Not Sweetened

0408.19 Egg Yolks, Fresh, Cooked By Steaming Or Boiling In Water, Moulded, Frozen Or Otherwise

Preserved, Whether Or Not Sweetened (Excl. Dried)

0408.91 Dried Birds' Eggs, Not In Shell, Whether Or Not Sweetened (Excl. Egg Yolks)

0408.99 Birds' Eggs, Not In Shell, Fresh, Cooked By Steaming Or Boiling In Water, Moulded, Frozen

Or Otherwise Preserved, Whether Or Not Sweetened (Excl. Dried)

0409.00 Natural Honey

0701.90 Fresh Or Chilled Potatoes (Excl. Seed) – BELIZE ONLY

0702.00 Tomatoes, Fresh Or Chilled

0703.10 Fresh Or Chilled Onions And Shallots

0704.10 Fresh Or Chilled Cauliflowers And Headed Broccoli0704.90 Fresh Or Chilled Cabbages, Kohlrabi, Kale And Similar Edible Brassicas (Excl. Cauliflowers,

Headed Broccoli And Brussels Sprouts)

0705.11 Fresh Or Chilled Cabbage Lettuce

0705.19 Fresh Or Chilled Lettuce (Excl. Cabbage Lettuce)

0706.10 Fresh Or Chilled Carrots And Turnips

0706.90 Fresh Or Chilled Salad Beetroot, Salsify, Celeriac, Radishes And Similar Edible Roots (Excl.

Carrots And Turnips)

0707.00 Cucumbers And Gherkins, Fresh Or Chilled

0708.10 Fresh Or Chilled Peas 'Pisum Sativum', Shelled Or Unshelled

0708.20 Fresh Or Chilled Beans 'Vigna Spp., Phaseolus Spp.', Shelled Or Unshelled

0708.90 Fresh Or Chilled Leguminous Vegetables, Shelled Or Unshelled (Excl. Peas 'Pisum Sativum'

And Beans 'Vigna Spp., Phaseolus Spp.')

0709.60 Fresh Or Chilled Fruits Of The Genus Capsicum Or Pimenta

0709.70 Fresh Or Chilled Spinach, New Zealand Spinach And Orache Spinach

0709.90 Fresh Or Chilled Vegetables (Excl. Potatoes, Tomatoes, Vegetables Of The Allium Spp.,

Cabbages Of The Genus Brassica, Lettuces Of The Species Lactuca Sativa And Cichorium,

Carrots, Turnips, Salad Beetroot, Salsify, Celeriac, Radishes And Similar Edible Ro

0710.21 Shelled Or Unshelled Peas 'Pisum Sativum', Uncooked Or Cooked By Steaming Or By

Boiling In Water, Frozen

0710.22 Shelled Or Unshelled Beans 'Vigna Spp., Phaseolus Spp.', Uncooked Or Cooked By Steaming

Or By Boiling In Water, Frozen

0710.29 Leguminous Vegetables, Shelled Or Unshelled, Uncooked Or Cooked By Steaming Or By

Boiling In Water, Frozen (Excl. Peas And Beans)

0710.30 Spinach, New Zealand Spinach And Orache Spinach, Uncooked Or Cooked By Steaming OrBy Boiling In Water, Frozen

0713.10 Dried, Shelled Peas 'Pisum Sativum', Whether Or Not Skinned Or Split

0713.20 Dried, Shelled Chickpeas 'Garbanzos', Whether Or Not Skinned Or Split

0713.31 Dried, Shelled Beans Of Species 'Vigna Mungo [L.] Hepper Or Vigna Radiata [L.] Wilczek',

Whether Or Not Skinned Or Split

0713.32 Dried, Shelled Small Red 'Adzuki' Beans 'Phaseolus Or Vigna Angularis', Whether Or Not

Skinned Or Split

0713.33 Dried, Shelled Kidney Beans 'Phaseolus Vulgaris', Whether Or Not Skinned Or Split



6

HS6 Description

0714.10 Fresh, Chilled, Frozen Or Dried Roots And Tubers Of Manioc 'Cassava', Whether Or Not

Sliced Or In The Form Of Pellets

0714.20 Sweet Potatoes, Fresh, Chilled, Frozen Or Dried, Whether Or Not Sliced Or In The Form Of

Pellets

0714.90 Roots And Tubers Of Arrowroot, Salep, Jerusalem Artichokes And Similar Roots And Tubers

With High Starch Or Inulin Content, Fresh, Chilled, Frozen Or Dried, Whether Or Not Sliced

Or In The Form Of Pellets And Sago Pith (Excl. Manioc 'Cassava' And Sweet Po

0801.31 Fresh Or Dried Cashew Nuts, In Shell

0801.32 Fresh Or Dried Cashew Nuts, Shelled

0803.00 Bananas, Incl. Plantains, Fresh Or Dried

0804.30 Fresh Or Dried Pineapples

0804.40 Fresh Or Dried Avocados

0804.50 Fresh Or Dried Guavas, Mangoes And Mangosteens

0805.10 Fresh Or Dried Oranges

0805.20 Fresh Or Dried Mandarins Incl. Tangerines And Satsumas, Clementines, Wilkings And

Similar Citrus Hybrids0805.40 Fresh Or Dried Grapefruit

0805.50 Fresh Or Dried Lemons 'Citrus Limon, Citrus Limonum' And Limes 'Citrus Aurantifolia,

Citrus Latifolia'

0805.90 Fresh Or Dried Citrus Fruit (Excl. Oranges, Lemons 'Citrus Limon, Citrus Limonum', Limes

'Citrus Aurantifolia, Citrus Latifolia', Grapefruit, Mandarins, Incl. Tangerines And Satsumas,

Clementines, Wilkings And Similar Citrus Hybrids)

0806.20 Dried Grapes

0807.11 Fresh Watermelons

0807.19 Fresh Melons (Excl. Watermelons)

0807.20 Fresh Pawpaws 'Papayas'

0901.11 Coffee (Excl. Roasted And Decaffeinated)

0901.12 Decaffeinated Coffee (Excl. Roasted)0901.21 Roasted Coffee (Excl. Decaffeinated)

0901.22 Roasted, Decaffeinated Coffee

0901.90 Coffee Husks And Skins; Coffee Substitutes Containing Coffee In Any Proportion

0904.11 Pepper Of The Genus Piper, Neither Crushed Nor Ground

0904.12 Pepper Of The Genus Piper, Crushed Or Ground

0910.10 Ginger

0910.50 Curry

1005.90 Maize (Excl. Seed)

1006.10 Rice In The Husk, 'Paddy' Or Rough

1006.20 Husked Or Brown Rice

1006.30 Semi-Milled Or Wholly Milled Rice, Whether Or Not Polished Or Glazed1006.40 Broken Rice

1007.00 Grain Sorghum

1101.00 Wheat Or Meslin Flour

1102.20 Maize 'Corn' Flour

1106.20 Flour, Meal And Powder Of Sago Or Of Roots Or Tubers Of Manioc, Arrowroot, Salep,

Sweet Potatoes And Similar Roots And Tubers With A High Content Of Starch Or Inulin Of

Heading 0714



7

HS6 Description

1201.00 Soya Beans, Whether Or Not Broken

1202.10 Groundnuts In Shell, Not Roasted Or Otherwise Cooked

1202.20 Shelled Groundnuts, Whether Or Not Broken (Excl. Roasted Or Otherwise Cooked)

1208.10 Soya Bean Flour And Meal1501.00 Pig Fat, Incl. Lard, And Poultry Fat, Rendered Or Otherwise Extracted (Excl. Lard Stearin

And Lard Oil)

1507.10 Crude Soya-Bean Oil, Whether Or Not Degummed

1507.90 Soya-Bean Oil And Its Fractions, Whether Or Not Refined (Excl. Chemically Modified And

Crude)

1509.10 Virgin Olive Oil And Its Fractions Obtained From The Fruit Of The Olive Tree Solely By

Mechanical Or Other Physical Means Under Conditions That Do Not Lead To Deterioration

Of The Oil

1509.90 Olive Oil And Fractions Obtained From The Fruit Of The Olive Tree Solely By Mechanical

Or Other Physical Means Under Conditions That Do Not Lead To Deterioration Of The Oil

(Excl. Virgin And Chemically Modified)

1510.00 Other Oils And Their Fractions, Obtained Solely From Olives, Whether Or Not Refined, But

Not Chemically Modified, Incl. Blends Of These Oils Or Fractions With Oils Or Fractions Of Heading 1509

1511.10 Crude Palm Oil

1511.90 Palm Oil And Its Fractions, Whether Or Not Refined (Excl. Chemically Modified And Crude)

1512.19 Sunflower-Seed Or Safflower Oil And Their Fractions, Whether Or Not Refined, But Not

Chemically Modified (Excl. Crude)

1517.10 Margarine (Excl. Liquid)

1517.90 Edible Mixtures Or Preparations Of Animal Or Vegetable Fats Or Oils And Edible Fractions

Of Different Fats Or Oils (Excl. Fats, Oils And Their Fractions, Partly Or Wholly

Hydrogenated, Inter-Esterified, Re-Esterified Or Elaidinised, Whether Or Not Refined

1522.00 Degras; Residues Resulting From The Treatment Of Fatty Substances Or Animal Or

Vegetable Waxes

1601.00 Sausages And Similar Products, Of Meat, Offal Or Blood; Food Preparations Based On TheseProducts

1602.10 Homogenised Prepared Meat, Offal Or Blood, Put Up For Retail Sale As Infant Food Or For

Dietetic Purposes, In Containers Of <= 250 G

1602.20 Preparations Of Liver Of Any Animal (Excl. Sausages And Similar Products And Finely

Homogenised Preparations Put Up For Retail Sale As Infant Food Or For Dietetic Purposes, In

Containers Of A Net Weight Of <= 250 G)

1602.31 Meat Or Offal Of Turkeys 'Gallus Domesticus', Prepared Or Preserved (Excl. Sausages And

Similar Products, And Finely Homogenised Preparations Put Up For Retail Sale As Infant

Food Or For Dietetic Purposes, In Containers Of A Net Weight Of <= 250 G, Prepar

1602.32 Meat Or Offal Of Fowls Of The Species 'Gallus Domesticus', Prepared Or Preserved (Excl. Of

Meat Or Offal Of Turkeys 'Gallus Domesticus' Or Guinea Fowl, Sausages And Similar

Products, Finely Homogenised Preparations Put Up For Retail Sale As Infant Food Or

1602.39 Prepared Or Preserved Meat Or Meat Offal Of Ducks, Geese And Guinea Fowl Of TheSpecies Domesticus (Excl. Sausages And Similar Products, Finely Homogenised Preparations

Put Up For Retail Sale As Infant Food Or For Dietetic Purposes, In Containers Of A Net

1602.41 Hams And Cuts Thereof, Prepared Or Preserved

1602.42 Prepared Or Preserved Shoulders And Cuts Thereof, Of Swine

1602.49 Prepared Or Preserved Meat And Offal Of Swine, Incl. Mixtures (Excl. Hams, Shoulders And

Cuts Thereof, Sausages And Similar Products, Finely Homogenised Preparations Put Up For

Retail Sale As Infant Food Or For Dietetic Purpose, In Containers Of A Net Wei

1602.50 Prepared Or Preserved Meat Or Offal Of Bovine Animals (Excl. Sausages And Similar



8

HS6 Description

Products, Finely Homogenised Preparations Put Up For Retail Sale As Infant Food Or For

Dietetic Purposes, In Containers Of A Net Weight Of <= 250 G, Preparations Of Liver An

1602.90 Prepared Or Preserved Meat, Offal Or Blood (Excl. Meat Or Offal Of Poultry, Swine And

Bovine Animals, Sausages And Similar Products, Finely Homogenised Preparations Put Up

For Retail Sale As Infant Food Or For Dietetic Purposes, In Containers Of A Net Wei

1701.11 Raw Cane Sugar (Excl. Added Flavouring Or Colouring)

1701.12 Raw Beet Sugar (Excl. Added Flavouring Or Colouring)

1701.91 Refined Cane Or Beet Sugar, Containing Added Flavouring Or Colouring, In Solid Form

1701.99 Cane Or Beet Sugar And Chemically Pure Sucrose, In Solid Form (Excl. Cane And Beet

Sugar Containing Added Flavouring Or Colouring And Raw Sugar)

1702.11 Lactose In Solid Form And Lactose Syrup, Not Containing Added Flavouring Or Colouring

Matter, Containing By Weight >= 99% Lactose, Expressed As Anhydrous Lactose, Calculated

On The Dry Matter

1702.19 Lactose In Solid Form And Lactose Syrup, Not Containing Added Flavouring Or Colouring

Matter, Containing By Weight < 99% Lactose, Expressed As Anhydrous Lactose, Calculated

On The Dry Matter

1702.20 Maple Sugar, In Solid Form, And Maple Syrup (Excl. Flavoured Or Coloured)1702.30 Glucose In Solid Form And Glucose Syrup, Not Containing Added Flavouring Or Colouring

Matter And Not Containing Fructose Or Containing In The Dry State, < 20% By Weight Of

Fructose

1702.40 Glucose In Solid Form And Glucose Syrup, Not Containing Added Flavouring Or Colouring

Matter, And Containing In The Dry State >= 20% And < 50% By Weight Of Fructose (Excl.

Invert Sugar)

1702.50 Chemically Pure Fructose In Solid Form

1702.60 Fructose In Solid Form And Fructose Syrup, Not Containing Added Flavouring Or Colouring

Matter And Containing In The Dry State > 50% By Weight Of Fructose (Excl. Chemically

Pure Fructose And Invert Sugar)

1702.90 Sugars In Solid Form, Incl. Invert Sugar And Chemically Pure Maltose, And Sugar And Sugar

Syrup Blends Containing In The Dry State 50% By Weight Of Fructose, Not Flavoured Or

Coloured, Artifical Honey, Whether Or Not Mixed With Natural Honey And Caramel (1703.10 Cane Molasses Resulting From The Extraction Or Refining Of Sugar

1704.10 Chewing Gum, Whether Or Not Sugar-Coated

1704.90 Sugar Confectionery Not Containing Cocoa, Incl. White Chocolate (Excl. Chewing Gum)

1806.10 Cocoa Powder, Sweetened

1806.20 Chocolate And Other Food Preparations Containing Cocoa, In Blocks, Slabs Or Bars

Weighing > 2 Kg Or In Liquid, Paste, Powder, Granular Or Other Bulk Form, In Containers

Or Immediate Packings Of A Content > 2 Kg (Excl. Cocoa Powder)

1806.31 Chocolate And Other Preparations Containing Cocoa, In Blocks, Slabs Or Bars Of <= 2 Kg,

Filled

1806.32 Chocolate And Other Preparations Containing Cocoa, In Blocks, Slabs Or Bars Of <= 2 Kg

(Excl. Filled)

1806.90 Chocolate And Other Preparations Containing Cocoa, In Containers Or Immediate PackingsOf <= 2 Kg (Excl. In Blocks, Slabs Or Bars And Cocoa Powder)

1901.20 Mixes of doughs of Flour, Groats, Meal, Starch Or Malt Extract, Not Containing Cocoa Or

Containing < 40% By Weight Of Cocoa Calculated On A Totally Defatted Basis, N.E.S. And

Of Milk, Sour Cream, Whey, Yoghourt, K

1901.90 Malt Extract; Food Preparations Of Flour, Groats, Meal, Starch Or Malt Extract, Not

Containing Cocoa Or Containing < 40% By Weight Of Cocoa Calculated On A Totally

Defatted Basis, N.E.S. And Food Preparations Of Milk, Cream, Butter Milk, Sour Milk, Sour

C



9

HS6 Description

1902.11 Uncooked Pasta, Not Stuffed Or Otherwise Prepared, Containing Eggs

1902.19 Uncooked Pasta, Not Stuffed Or Otherwise Prepared, Not Containing Eggs

1902.20 Pasta, Stuffed With Meat Or Other Substances, Whether Or Not Cooked Or Otherwise

Prepared1902.30 Pasta, Cooked Or Otherwise Prepared (Excl. Stuffed)

1902.40 Couscous, Whether Or Not Prepared

1904.10 Prepared Foods Obtained By Swelling Or Roasting Cereals Or Cereal Products, E.G. Corn

Flakes

1904.90 Cereals (Excl. Maize [Corn]) In Grain Or Flake Form Or Other Worked Grains, Pre-Cooked

Or Otherwise Prepared, N.E.S. (Excl. Flour, Groats And Meal, Food Preparations Obtained

By Swelling Or Roasting Or From Unroasted Cereal Flakes Or From Mixtures Of Unro

1905.10 Crispbread

1905.20 Gingerbread And The Like, Whether Or Not Containing Cocoa

1905.31 Sweet Biscuits

1905.32 Waffles And Wafers

1905.40 Rusks, Toasted Bread And Similar Toasted Products1905.90 Bread, Pastry, Cakes, Biscuits And Other Bakers' Wares, Whether Or Not Containing Cocoa;

Communion Wafers, Empty Cachets Of A Kind Suitable For Pharmaceutical Use, Sealing

Wafers, Rice Paper And Similar Products (Excl. Crispbread, Gingerbread And The Like

2001.10 Cucumbers And Gherkins, Prepared Or Preserved By Vinegar Or Acetic Acid

2002.90 Tomatoes, Prepared Or Preserved Otherwise Than By Vinegar Or Acetic Acid (Excl. Whole

Or In Pieces)

2007.10 Homogenised Preparations Of Jams, Jellies, Marmalades, Fruit Or Nut Purees And Nut Pastes,

Obtained By Cooking, Whether Or Not Containing Added Sugar Or Other Sweetening Matter,

Put Up For Retail Sale As Infant Food Or For Dietetic Purposes, In Containers

2007.91 Citrus Fruit Jams, Jellies, Marmalades, Purees Or Pastes, Obtained By Cooking, Whether Or

Not Containing Added Sugar Or Other Sweetening Matter (Excl. Homogenised Preparations

Of Subheading 2007.10)

2007.99 Jams, Jellies, Marmalades, Purees Or Pastes Of Fruit, Obtained By Cooking, Whether Or NotContaining Added Sugar Or Other Sweetening Matter (Excl. Citrus Fruit And Homogenised

Preparations Of Subheading 2007.10)

2008.11 Groundnuts, Prepared Or Preserved (Excl. Preserved With Sugar)

2008.19 Nuts And Other Seeds, Incl. Mixtures, Prepared Or Preserved (Excl. Prepared Or Preserved

With Vinegar, Preserved With Sugar But Not Laid In Syrup, Jams, Fruit Jellies, Marmalades,

Fruit Pur┌ e And Pastes, Obtained By Cooking, And Groundnuts)

2008.20 Pineapples, Prepared Or Preserved, Whether Or Not Containing Added Sugar Or Other

Sweetening Matter Or Spirit (Excl. Preserved With Sugar But Not Laid In Syrup, Jams, Fruit

Jellies, Marmalades, Fruit Pur┌ e And Pastes, Obtained By Cooking)

2008.30 Citrus Fruit, Prepared Or Preserved, Whether Or Not Containing Added Sugar Or Other

Sweetening Matter Or Spirit, N.E.S.

2008.60 Cherries, Prepared Or Preserved, Whether Or Not Containing Added Sugar Or Other

Sweetening Matter Or Spirit (Excl. Preserved With Sugar But Not Laid In Syrup, Jams, FruitJellies, Marmalades, Fruit Pur┌ e And Pastes, Obtained By Cooking)

2008.70 Peaches, Incl. Nectarines, Prepared Or Preserved, Whether Or Not Containing Added Sugar

Or Other Sweetening Matter Or Spirit (Excl. Preserved With Sugar But Not Laid In Syrup,

Jams, Fruit Jellies, Marmalades, Fruit Pur┌ e And Pastes, Obtained By Cooking)

2008.91 Palm Hearts, Prepared Or Preserved, Whether Or Not Containing Added Sugar Or Other

Sweetening Matter Or Spirit (Excl. Prepared Or Preserved With Vinegar)

2008.92 Mixtures Of Fruits, Nuts And Other Edible Parts Of Plants, Prepared Or Preserved, Whether

Or Not Containing Added Sugar Or Other Sweetening Matter Or Spirit (Excl. Mixtures Of



10

HS6 Description

Nuts, Groundnuts And Other Seeds And Preparations Of The M│sli Type Based On Un

2008.99 Fruit And Other Edible Parts Of Plants, Prepared Or Preserved, Whether Or Not Containing

Added Sugar Or Other Sweetening Matter Or Spirit (Excl. Prepared Or Preserved With

Vinegar, Preserved With Sugar But Not Laid In Syrup, Jams, Fruit Jellies, Marmalade

2009.11 Frozen Orange Juice, Unfermented, Whether Or Not Containing Added Sugar Or Other

Sweetening Matter (Excl. Containing Spirit)

2009.12 Orange Juice, Unfermented, Brix Value <= 20 At 20ªc, Whether Or Not Containing Added

Sugar Or Other Sweetening Matter (Excl. Containing Spirit And Frozen)

2009.19 Orange Juice, Unfermented, Whether Or Not Containing Added Sugar Or Other Sweetening

Matter (Excl. Containing Spirit, Frozen, And Of A Brix Value <= 20 At 20ªc)

2009.21 Grapefruit Juice, Unfermented, Brix Value <= 20 At 20ªc, Whether Or Not Containing Added

Sugar Or Other Sweetening Matter (Excl. Containing Spirit)

2009.29 Grapefruit Juice, Unfermented, Brix Value > 20 At 20ªc, Whether Or Not Containing Added


2009.31 Single Citrus Fruit Juice, Unfermented, Brix Value <= 20 At 20ªc, Whether Or Not Containing

Added Sugar Or Other Sweetening Matter (Excl. Containing Spirit, Mixtures, Orange Juice

And Grapefruit Juice)

2009.39 Single Citrus Fruit Juice, Unfermented, Brix Value > 20 At 20ªc, Whether Or Not Containing

Added Sugar Or Other Sweetening Matter (Excl. Containing Spirit, Mixtures, Orange Juice

And Grapefruit Juice)

2009.41 Pineapple Juice, Unfermented, Brix Value <= 20 At 20ªc, Whether Or Not Containing Added


2009.49 Pineapple Juice, Unfermented, Brix Value > 20 At 20ªc, Whether Or Not Containing Added


2009.50 Tomato Juice, Unfermented, Whether Or Not Containing Added Sugar Or Other Sweetening

Matter (Excl. Containing Spirit)

2009.61 Grape Juice, Incl. Grape Must, Unfermented, Brix Value <= 30 At 20ªc, Whether Or Not

Containing Added Sugar Or Other Sweetening Matter (Excl. Containing Spirit)

2009.69 Grape Juice, Incl. Grape Must, Unfermented, Brix Value > 30 At 20ªc, Whether Or Not

Containing Added Sugar Or Other Sweetening Matter (Excl. Containing Spirit)

2009.71 Apple Juice, Unfermented, Brix Value <= 20 At 20ªc, Whether Or Not Containing Added


2009.79 Apple Juice, Unfermented, Brix Value > 20 At 20ªc, Whether Or Not Containing Added Sugar

Or Other Sweetening Matter (Excl. Containing Spirit)

2009.80 Juice Of Fruit Or Vegetables, Unfermented, Whether Or Not Containing Added Sugar Or

Other Sweetening Matter (Excl. Containing Spirit, Mixtures, And Juice Of Citrus Fruit,

Pineapples, Tomatoes, Grapes, Incl. Grape Must And Apples)

2009.90 Mixtures Of Fruit Juices, Incl. Grape Must, And Vegetable Juices, Unfermented, Whether Or

Not Containing Added Sugar Or Other Sweetening Matter (Excl. Containing Spirit)

2103.20 Tomato Ketchup And Other Tomato Sauces

2103.90 Preparations For Sauces And Prepared Sauces; Mixed Condiments And Seasonings (Excl.

Soya Sauce, Tomato Ketchup And Other Tomato Sauces, Mustard, And Mustard Flour And

Meal)2104.10 Soups And Broths And Preparations Therefor

2105.00 Ice Cream And Other Edible Ice, Whether Or Not Containing Cocoa

2106.90 Food Preparations, N.E.S.

2201.10 Mineral Waters And Aerated Waters, Not Containing Added Sugar, Other Sweetening Matter

Or Flavoured

2201.90 Ordinary Natural Water, Not Containing Added Sugar, Other Sweetening Matter Or

Flavoured; Ice And Snow (Excl. Mineral Waters And Aerated Waters, Sea Water, Distilled

Water, Conductivity Water Or Water Of Similar Purity)



11

HS6 Description

2202.10 Waters, Incl. Mineral And Aerated, With Added Sugar, Sweetener Or Flavour, For Direct

Consumption As A Beverage

2202.90 Non-Alcoholic Beverages (Excl. Water, Fruit Or Vegetable Juices And Milk)

2203.00 Beer Made From Malt

2204.10 Sparkling Wine Of Fresh Grapes

2204.21 Wine Of Fresh Grapes, Incl. Fortified Wines, And Grape Must Whose Fermentation Has Been

Arrested By The Addition Of Alcohol, In Containers Of <= 2 L (Excl. Sparkling Wine)

2204.29 Wine Of Fresh Grapes, Incl. Fortified Wines, And Grape Must Whose Fermentation Has Been

Arrested By The Addition Of Alcohol, In Containers Of > 2 L (Excl. Sparkling Wine)

2205.10 Vermouth And Other Wine Of Fresh Grapes, Flavoured With Plants Or Aromatic Substances,

In Containers Of <= 2 L

2205.90 Vermouth And Other Wine Of Fresh Grapes, Flavoured With Plants Or Aromatic Substances,

In Containers Of > 2 L

2206.00 Cider, Perry, Mead And Other Fermented Beverages (Excl. Beer, Wine Of Fresh Grapes,

Grape Must, Vermouth And Other Wine Of Fresh Grapes, Flavoured With Plants Or Aromatic

Substances)

2207.10 Undenatured Ethyl Alcohol, Of Actual Alcoholic Strength Of >= 80%2207.20 Denatured Ethyl Alcohol And Other Spirits Of Any Strength

2208.20 Spirits Obtained By Distilling Grape Wine Or Grape Marc

2208.30 Whiskies

2208.40 Rum And Tafia

2208.50 Gin And Geneva

2208.60 Vodka

2208.70 Liqueurs And Cordials

2208.90 Ethyl Alcohol Of An Alcoholic Strength Of < 80% Vol, Not Denatured; Spirits And Other

Spirituous Beverages (Excl. Compound Alcoholic Preparations Of A Kind Used For The

Manufacture Of Beverages, Spirits Obtained By Distilling Grape Wine Or Grape Marc, Whi

2309.90 Preparations Of A Kind Used In Animal Feeding (Excl. Dog Or Cat Food Put Up For Retail

Sale)

2402.10 Cigars, Cheroots And Cigarillos Containing Tobacco

2402.20 Cigarettes, Containing Tobacco

2402.90 Cigars, Cheroots, Cigarillos And Cigarettes Consisting Wholly Of Tobacco Substitutes

2403.10 Smoking Tobacco, Whether Or Not Containing Tobacco Substitutes In Any Proportion

2403.91 Tobacco, 'Homogenised' Or 'Reconstituted' From Finely-Chopped Tobacco Leaves, Tobacco

Refuse Or Tobacco Dust

2403.99 Chewing Tobacco, Snuff And Other Manufactured Tobacco And Manufactured Tobacco

Substitutes, And Tobacco Powder, Tobacco Extracts And Essences (Excl. Cigars, Cheroots,

Cigarillos And Cigarettes, Smoking Tobacco Whether Or Not Containing Tobacco Substitutes

2710.11 Light Oils And Preparations, Of Petroleum Or Bituminous Minerals Which >= 90% By

Volume 'Incl. Losses' Distil At 210ªc 'Astm D 86 Method' – HAITI ONLY

2804.40 Oxygen

2811.21 Carbon Dioxide

2901.29 Hyrocarbons, Acyclic, Unsaturated (Excl. Ethylene, Propene 'Propylene', Butene 'Butylene'

And Isomers Thereof And Buta-1,3-Diene And Isoprene)

3208.10 Paints And Varnishes, Incl. Enamels And Lacquers, Based On Polyesters, Dispersed Or

Dissolved In A Non-Aqueous Medium; Solutions Based On Polyesters In Volatile Organic

Solvents, Containing > 50% Solvent By Weight

3208.20 Paints And Varnishes, Incl. Enamels And Lacquers, Based On Acrylic Or Vinyl Polymers,

Dispersed Or Dissolved In A Non-Aqueous Medium; Solutions Based On Acrylic Or Vinyl



12

HS6 Description

Polymers In Volatile Organic Solvents, Containing > 50% Solvent By Weight

3208.90 Paints And Varnishes Based, Incl. Enamels And Lacquers, On Synthetic Polymers Or

Chemically Modified Natural Polymers, Dispersed Or Dissolved In A Non-Aqueous Medium,

And Solutions Of Products Of Subheading 3901 To 3913 In Volatile Organic Solvents, Conta

3209.10 Paints And Varnishes, Incl. Enamels And Lacquers, Based On Acrylic Or Vinyl Polymers,

Dispersed Or Dissolved In An Aqueous Medium

3209.90 Paints And Varnishes, Incl. Enamels And Lacquers, Based On Synthetic Or Chemically

Modified Natural Polymers, Dispersed Or Dissolved In An Aqueous Medium (Excl. Those

Based On Acrylic Or Vinyl Polymers)

3210.00 Paints And Varnishes, Incl. Enamels, Lacquers And Distempers (Excl. Those Based On

Synthetic Polymers Or Chemically Modified Natural Polymers); Prepared Water Pigments Of

A Kind Used For Finishing Leather

3301.29 Essential Oils, Whether Or Not Terpeneless, Incl. Concretes And Absolutes (Excl. Those Of

Citrus Fruit, Geramium, Jasmine, Lavender, Lavandine, Mint And Vetiver)

3301.90 Extracted Oleoresins; Concentrates Of Essential Oils In Fats, Fixed Oils, Waxes And The

Like, Obtained By Enfleurage Or Maceration; Terpenic By-Products Of The Deterpenation Of

Essential Oils; Aromatic Aqueous Distillates And Aqueous Solutions Of Essentia

3303.00 Perfumes And Toilet Waters (Excl. Aftershave Lotions, Personal Deodorants And Hair

Lotions)

3304.10 Lip Make-Up Preparations

3304.20 Eye Make-Up Preparations

3304.30 Manicure Or Pedicure Preparations

3304.91 Make-Up Or Skin Care Powders, Incl. Baby Powders, Whether Or Not Compressed (Excl.

Medicaments)

3304.99 Beauty Or Make-Up Preparations And Preparations For The Care Of The Skin (Other Than

Medicaments), Incl. Sunscreen Or Suntan Preparations (Excl. Medicaments, Lip And Eye

Make-Up Preparations, Manicure Or Pedicure Preparations And Make-Up Or Skin Care Powd

3305.10 Shampoos

3305.20 Preparations For Permanent Waving Or Straightening

3305.30 Hair Lacquers

3305.90 Preparations For Use On The Hair (Excl. Shampoos, Preparations For Permanent Waving Or

Straightening And Hair Lacquers)

3306.10 Dentifrices, Incl. Those Used By Dental Practitioners

3306.90 Preparations For Oral Or Dental Hygiene, Incl. Denture Fixative Pastes And Powders (Excl.

Dentifrices And Yarn Used To Clean Between The Teeth 'Dental Floss')

3307.10 Shaving Preparations, Incl. Pre-Shave And After-Shave Products

3307.20 Personal Deodorants And Antiperspirants

3307.30 Perfumed Bath Salts And Other Bath And Shower Preparations

3307.41 'Agarbatti' And Other Odoriferous Preparations Which Operate By Burning

3307.49 Preparations For Perfuming Or Deodorising Rooms, Incl. Odoriferous Preparations Used

During Religious Rites (Excl. Agarbatti And Other Odoriferous Preparations Which Operate

By Burning)

3307.90 Depilatories And Other Perfumery, Toilet Or Cosmetic Preparations, N.E.S.

3401.11 Soap And Organic Surface-Active Products And Preparations, In The Form Of Bars, Cakes,

Moulded Pieces Or Shapes, And Paper, Wadding, Felt And Nonwovens, Impregnated, Coated

Or Covered With Soap Or Detergent, For Toilet Use, Incl. Medicated Products

3401.19 Soap And Organic Surface-Active Products And Preparations, In The Form Of Bars, Cakes,

Moulded Pieces Or Shapes, And Paper, Wadding, Felt And Nonwovens, Impregnated, Coated

Or Covered With Soap Or Detergent (Excl. Those For Toilet Use, Incl. Medicated Pro



13

HS6 Description

3401.20 Soap In The Form Of Flakes, Granules, Powder, Paste Or In Aqueous Solution

3401.30 Organic Surface-Active Products And Preparations For Washing The Skin, In The Form Of

Liquid Or Cream And Put Up For Retail Sale, Whether Or Not Containing Soap

3402.11 Anionic Organic Surface-Active Agents, Whether Or Not Put Up For Retail Sale (Excl. Soap)

3402.12 Cationic Organic Surface-Active Agents, Whether Or Not Put Up For Retail Sale (Excl. Soap)

3402.13 Non-Ionic Organic Surface-Active Agents, Whether Or Not Put Up For Retail Sale (Excl.

Soap)

3402.19 Organic Surface-Active Agents, Whether Or Not Put Up For Retail Sale (Excl. Anionic,

Cationic Or Non-Ionic Agents And Soap)

3402.20 Surface-Active Preparations, Washing Preparations, Auxiliary Washing Preparations And

Cleaning Preparations Put Up For Retail Sale (Excl. Organic Surface-Active Agents, Soap

And Organic Surface-Active Preparations In The Form Of Bars, Cakes, Moulded Piece

3402.90 Surface-Active Preparations, Washing Preparations, Incl. Auxiliary Washing Preparations

And Cleaning Preparations (Excl. Those Put Up For Retail Sale, Organic Surface-Active

Agents, Soap And Organic Surface-Active Preparations In The Form Of Bars, Cakes,

3406.00 Candles And The Like

3808.10 Insecticides Put Up For Retail Sale Or As Preparations Or Articles3808.40 Disinfectants Put Up For Retail Sale Or As Preparations Or Articles

3906.90 Acrylic Polymers, In Primary Forms (Excl. Poly'Methyl Methacrylate')

3907.50 Alkyd Resins, In Primary Forms

3925.20 Doors, Windows And Their Frames And Thresholds For Doors, Of Plastics

3926.90 Articles Of Plastics And Articles Of Other Materials Of Heading 3901 To 3914, N.E.S

4016.93 Gaskets, Washers And Other Seals, Of Vulcanised Rubber (Excl. Hard Rubber And Those Of

Cellular Rubber)

4412.13 Plywood Consisting Solely Of Sheets Of Wood <= 6 Mm Thick, With At Least One Outer Ply

Of Tropical Wood Specified In Subheading Note 1 To This Chapter (Excl. Sheets Of

Compressed Wood, Hollow-Core Composite Panels, Inlaid Wood And Sheets Identifiable As

F

4418.10 Windows, Frenchwindows And Their Frames, Of Wood

4418.20 Doors And Their Frames And Thresholds, Of Wood

4418.30 Parquet Panels Of Wood (Excl. Blocks, Strips And Friezes For Parquet Flooring, Not

Assembled)

4602.10 Basketwork, Wickerwork And Other Articles, Made Directly To Shape From Plaiting

Materials Or Made-Up From Goods Of Heading 4601, And Articles Of Loofah (Excl. Wall

Coverings Of Heading 4814; Twine, Cord And Rope; Footware And Headgear And Parts

Thereof; V

4602.90 Basketwork, Wickerwork And Other Articles, Made Directly To Shape From Non-Vegetable

Plaiting Materials Or Made-Up From Goods Of Non-Vegetable Plaiting Materials Of Heading

4601 (Excl. Wall Coverings Of Heading 4814; Twine, Cord And Rope; Footware And Hea

4817.10 Envelopes Of Paper Or Paperboard (Excl. Letter Cards)

4817.20 Letter Cards, Plain Postcards And Correspondence Cards, Of Paper Or Paperboard (Excl.Those With Imprinted Postage Stamps)

4817.30 Boxes, Pouches, Wallets And Writing Compendiums, Of Paper Or Paperboard, Containing An

Assortment Of Paper Stationery

4818.10 Toilet Paper In Rolls Of A Width Of <= 36 Cm

4818.20 Handkerchiefs, Cleansing Or Facial Tissues And Towels, Of Paper Pulp, Paper, Cellulose

Wadding Or Webs Of Cellulose Fibres

4818.30 Tablecloths And Serviettes Of Paper Pulp, Paper, Cellulose Wadding Or Webs Of Cellulose

Fibres



14

HS6 Description

4818.40 Sanitary Towels And Tampons, Napkins And Napkin For Babies And Similar Sanitary

Articles, Of Paper Pulp, Paper, Cellulose Wadding Or Webs Of Cellulose Fibres

4819.10 Cartons, Boxes And Cases, Of Corrugated Paper Or Paperboard

4820.10 Registers, Account Books, Note Books, Order Books, Receipt Books, Letter Pads,

Memorandum Pads, Diaries And Similar Articles, Of Paper Or Paperboard

4820.20 Exercise Books Of Paper Or Paperboard

4820.30 Binders (Other Than Book Covers), Folders And File Covers, Of Paper Or Paperboard

5601.21 Wadding Of Cotton And Articles Thereof (Excl. Sanitary Towels And Tampons, Napkins And

Napkin Liners For Babies And Similar Sanitary Articles, Wadding And Articles Thereof

Impregnated Or Coated With Pharmaceutical Substances Or Put Up For Retail Sale For

5601.22 Wadding Of Man-Made Fibres And Articles Thereof (Excl. Sanitary Towels And Tampons,

Napkins And Napkin Liners For Babies And Similar Sanitary Articles, Wadding And Articles

Thereof Impregnated Or Coated With Pharmaceutical Substances Or Put Up For Retail

5601.29 Wadding Of Textile Materials And Articles Thereof (Excl. Of Cotton Or Man-Made Fibres;

Sanitary Towels And Tampons, Napkins And Napkin Liners For Babies And Similar Sanitary

Articles, Wadding And Articles Thereof, Impregnated Or Covered With Medicated Sub

6108.11 Women'S Or Girls' Slips And Petticoats Of Man-Made Fibres, Knitted Or Crocheted (Excl. T-Shirts And Vests)

6108.21 Women'S Or Girls' Briefs And Panties Of Cotton, Knitted Or Crocheted

6109.10 T-Shirts, Singlets And Other Vests Of Cotton, Knitted Or Crocheted

6110.20 Jerseys, Pullovers, Cardigans, Waistcoats And Similar Articles, Of Cotton, Knitted Or

Crocheted (Excl. Wadded Waistcoats)

6115.19 Panty Hose And Tights Of Textile Materials, Knitted Or Crocheted (Excl. Of Synthetic Fibres

And Hosiery For Babies)

6115.92 Full-Length Or Knee-Length Stockings, Socks And Other Hosiery, Incl. Stockings For

Varicose Veins And Footwear Without Applied Soles, Of Cotton, Knitted Or Crocheted (Excl.

Panty Hose And Tights, Women'S Full-Length Or Knee-Length Stockings, Measuring Per

6203.19 Men'S Or Boys' Suits Of Textile Materials (Excl. Of Wool, Fine Animal Hair Or Synthetic

Fibres, Knitted Or Crocheted, Track Suits, Ski Suits And Swimwear)

6203.21 Men'S Or Boys' Ensembles Of Wool Or Fine Animal Hair (Excl. Knitted Or Crocheted, SkiEnsembles And Swimwear)

6203.22 Men'S Or Boys' Ensembles Of Cotton (Excl. Knitted Or Crocheted, Ski Ensembles And

Swimwear)

6203.31 Men'S Or Boys' Jackets And Blazers Of Wool Or Fine Animal Hair (Excl. Knitted Or

Crocheted, And Wind-Jackets And Similar Articles)

6203.42 Men'S Or Boys' Trousers, Bib And Brace Overalls, Breeches And Shorts, Of Cotton (Excl.

Knitted Or Crocheted, Underpants And Swimwear)

6203.49 Men'S Or Boys' Trousers, Bib And Brace Overalls, Breeches And Shorts Of Textile Materials

(Excl. Of Wool, Fine Animal Hair, Cotton Or Synthetic Fibres, Knitted Or Crocheted,

Underpants And Swimwear)

6204.22 Women'S Or Girls' Ensembles Of Cotton (Excl. Knitted Or Crocheted, Ski Overalls And

Swimwear)

6204.42 Women'S Or Girls' Dresses Of Cotton (Excl. Knitted Or Crocheted And Petticoats)

6204.43 Women'S Or Girls' Dresses Of Synthetic Fibres (Excl. Knitted Or Crocheted And Petticoats)

6204.44 Women'S Or Girls' Dresses Of Artificial Fibres (Excl. Knitted Or Crocheted And Petticoats)

6204.49 Women'S Or Girls' Dresses Of Textile Materials (Excl. Of Wool, Fine Animal Hair, Cotton Or

Man-Made Fibres, Knitted Or Crocheted And Petticoats)

6204.52 Women'S Or Girls' Skirts And Divided Skirts Of Cotton (Excl. Knitted Or Crocheted And

Petticoats)

6204.53 Women'S Or Girls' Skirts And Divided Skirts Of Synthetic Fibres (Excl. Knitted Or Crocheted

And Petticoats)



15

HS6 Description

6204.59 Women'S Or Girls' Skirts And Divided Skirts Of Textile Materials (Excl. Of Wool, Fine

Animal Hair, Cotton Or Synthetic Fibres, Knitted Or Crocheted And Petticoats)

6204.61 Women'S Or Girls' Trousers, Bib And Brace Overalls, Breeches And Shorts Of Wool Or Fine

Animal Hair (Excl. Knitted Or Crocheted, Panties And Swimwear)

6204.62 Women'S Or Girls' Trousers, Bib And Brace Overalls, Breeches And Shorts Of Cotton (Excl.

Knitted Or Crocheted, Panties And Swimwear)

6204.69 Women'S Or Girls' Trousers, Bib And Brace Overalls, Breeches And Shorts Of Textile

Materials (Excl. Of Wool, Fine Animal Hair, Cotton Or Synthetic Fibres, Knitted Or

Crocheted, Panties And Swimwear)

6205.20 Men'S Or Boys' Shirts Of Cotton (Excl. Knitted Or Crocheted, Nightshirts, Singlets And Other

Vests)

6205.30 Men'S Or Boys' Shirts Of Man-Made Fibres (Excl. Knitted Or Crocheted, Nightshirts, Singlets

And Other Vests)

6206.30 Women'S Or Girls' Blouses, Shirts And Shirt-Blouses Of Cotton (Excl. Knitted Or Crocheted

And Vests)

6206.40 Women'S Or Girls' Blouses, Shirts And Shirt-Blouses Of Man-Made Fibres (Excl. Knitted Or

Crocheted And Vests)

6206.90 Women'S Or Girls' Blouses, Shirts And Shirt-Blouses Of Textile Materials (Excl. Of Silk, Silk Waste, Wool, Fine Animal Hair, Cotton Or Man-Made Fibres, Knitted Or Crocheted And

Vests)

6302.31 Bed-Linen Of Cotton (Excl. Printed, Knitted Or Crocheted)

6302.39 Bed-Linen Of Textile Materials (Excl. Of Cotton And Man-Made Fibres, Printed, Knitted Or

Crocheted)

6302.40 Table Linen, Knitted Or Crocheted

6302.51 Table Linen Of Cotton (Excl. Knitted Or Crocheted)

6303.11 Curtains, Incl. Drapes, And Interior Blinds, Curtain Or Bed Valances Of Cotton, Knitted Or

Crocheted (Excl. Awnings And Sunblinds)

6303.12 Curtains, Incl. Drapes, And Interior Blinds, Curtain Or Bed Valances Of Synthetic Fibres,

Knitted Or Crocheted (Excl. Awnings And Sunblinds)

6303.19 Curtains, Incl. Drapes, And Interior Blinds, Curtain Or Bed Valances, Knitted Or Crocheted(Excl. Of Cotton Or Synthetic Fibres, Awnings And Sunblinds)

6303.91 Curtains, Incl. Drapes, And Interior Blinds, Curtain Or Bed Valances Of Cotton (Excl. Knitted

Or Crocheted, Awnings And Sunblinds)

6303.99 Curtains, Incl. Drapes, And Interior Blinds, Curtain Or Bed Valances Of Textile Materials

(Excl. Of Cotton And Synthetic Fibres, Knitted Or Crocheted, Awnings And Sunblinds)

6910.10 Ceramic Sinks, Wash Basins, Wash Basin Pedestals, Baths, Bidets, Water Closet Pans,

Flushing Cisterns, Urinals And Similar Sanitary Fixtures Of Porcelain Or China (Excl. Soap

Dishes, Sponge Holders, Tooth-Brush Holders, Towel Hooks And Toilet Paper Holder

7113.19 Articles Of Jewellery And Parts Thereof, Of Precious Metal Other Than Silver, Whether Or

Not Plated Or Clad With Precious Metal (Excl. Articles > 100 Years Old)

7213.10 Bars And Rods, Hot-Rolled, In Irregularly Wound Coils Of Iron Or Non-Alloy Steel, With

Indentations, Ribs, Grooves Or Other Deformations Produced During The Rolling Process

7213.20 Bars And Rods, Hot-Rolled, In Irregularly Wound Coils, Of Non-Alloy Free-Cutting Steel(Excl. Bars And Rods Containing Indentations, Ribs, Grooves Or Other Deformations

Produced During The Rolling Process)

7213.91 Bars And Rods, Hot-Rolled, In Irregularly Wound Coils, Of Iron Or Non-Alloy Steel, Of

Circular Cross-Section Measuring < 14 Mm In Diameter (Excl. Bars And Rods Of Free-

Cutting Steel, And Bars And Rods With Indentations, Ribs, Grooves Or Other Deformations

7213.99 Bars And Rods, Hot-Rolled, In Irregularly Wound Coils, Of Iron Or Non-Alloy Steel (Excl.

Products Of Circular Cross-Section Measuring < 14 Mm In Diameter, Bars And Rods Of

Free-Cutting Steel, And Bars And Rods With Indentations, Ribs, Grooves Or Other Def



16

HS6 Description

7214.10 Bars And Rods, Of Iron Or Non-Alloy Steel, Not Further Worked Than Forged (Excl. In

Irregularly Wound Coils)

7214.20 Bars And Rods, Of Iron Or Non-Alloy Steel, With Indentations, Ribs, Groves Or Other

Deformations Produced During The Rolling Process

7214.91 Bars And Rods, Of Iron Or Non-Alloy Steel, Not Further Worked Than Hot-Rolled, Hot-

Drawn Or Hot-Extruded, Of Rectangular 'Other Than Square' Cross-Section (Excl. Containing

Indentations, Ribs, Grooves Or Other Deformations Produced During The Rolling Proc

7214.99 Bars And Rods, Of Iron Or Non-Alloy Steel, Only Hot-Rolled, Only Hot-Drawn Or Only Hot-

Extruded (Excl. Of Rectangular [Other Than Square] Cross-Section And Those Containing

Indentations, Ribs, Grooves Or Other Deformations Produced During The Rolling Proc

7217.10 Wire Of Iron Or Non-Alloy Steel, In Coils, Not Plated Or Coated, Whether Or Not Polished

(Excl. Bars And Rods)

7217.20 Wire Of Iron Or Non-Alloy Steel, In Coils, Plated Or Coated With Zinc (Excl. Bars And

Rods)

7217.30 Wire Of Iron Or Non-Alloy Steel, In Coils, Plated Or Coated With Base Metals (Excl. Plated

Or Coated With Zinc, And Bars And Rods)

7217.90 Wire Of Iron Or Non-Alloy Steel, In Coils, Plated Or Coated (Excl. Plated Or Coated With

Base Metals, And Bars And Rods)7227.10 Bars And Rods Of High-Speed Steel, Hot-Rolled, In Irregularly Wound Coils

7227.20 Bars And Rods Of Silico-Manganese Steel, Hot-Rolled, In Irregularly Wound Coils

7227.90 Bars And Rods Of Alloy Steel Other Than Stainless, Hot-Rolled, In Irregularly Wound Coils

(Excl. Products Of High-Speed Steel Or Silicon-Electrical Steel)

7306.30 Tubes, Pipes And Hollow Profiles, Welded, Having A Circular Cross-Section, Of Iron Or

Non-Alloy Steel (Excl. Of Cast Iron, Products Having Internal And External Circular Cross-

Sections And An External Diameter Of > 406,4 Mm, Or Line Pipe Of A Kind Used Fo

7306.90 Tubes, Pipes And Hollow Profiles 'E.G., Open Seam, Riveted Or Similarly Closed', Of Iron Or

Steel (Excl. Of Cast Iron, Seamless Or Welded Tubes And Pipes And Tubes And Pipes

Having Internal And External Circular Cross-Sections And An External Diameter Of

7312.10 Stranded Wire, Ropes And Cables, Of Iron Or Steel (Excl. Electrically Insulated Products And

Twisted Fencing Wire And Barbed Wire)7317.00 Nails, Tacks, Drawing Pins, Corrugated Nails, Staples And Similar Articles Of Iron Or Steel,

Whether Or Not With Heads Of Other Material (Excl. Such Articles With Heads Of Copper

And Staples In Strips)

7320.20 Helical Springs, Of Iron Or Steel (excl. For road motor vehicles)

7320.90 Springs And Leaves For Springs, Of Iron Or Steel, Incl. Flat Spiral Springs (Excl. Helical

Springs, Spiral Springs, Leaf-Springs And Leaves Therefor, Clock And Watch Springs, Spring

Washers And Other Lock Washers And Shock Absorbers And Torque Rod Or Tors

7321.11 Appliances For Baking, Frying, Grilling And Cooking And Plate Warmers, For Domestic Use,

Of Iron Or Steel, For Gas Fuel Or For Both Gas And Other Fuels (Excl. Large Cooking

Appliances)

7610.10 Doors, Windows And Their Frames And Thresholds For Door, Of Aluminium (Excl. Door

Furniture)

8414.51 Table, Floor, Wall, Window, Ceiling Or Roof Fans, With A Self-Contained Electric Motor Of An Output <= 125 W

8418.10 Combined Refrigerators-Freezers, With Separate External Doors

8418.21 Household Refrigerators, Compression-Type

8418.30 Freezers Of The Chest Type, Of A Capacity <= 800 L

8418.50 Refrigerated Or Freezing Chests, Cabinets, Display Counters, Show-Cases And Similar,

Refrigerating Or Freezing Furniture With A Refrigerating Unit Or Evaporator (Excl.

Combined Refrigerator-Freezers With Separate External Doors, Household Refrigerators An

8419.19 Instantaneous Or Storage Water Heaters, Non-Electric (Excl. Instantaneous Gas Water Heaters



HS6 Description

And Boilers Or Water Heaters For Central Heating)

8450.11 Fully-Automatic Household Or Laundry-Type Washing Machines, Of A Dry Linen Capacity

<= 6 Kg

8506.10 Manganese Dioxide Cells And Batteries (Excl. Spent)

8506.80 Primary Cells And Primary Batteries, Electric (Excl. Spent, And Those Of Silver Oxide,

Mercuric Oxide, Manganese Dioxide, Lithium And Air-Zinc)

8507.30 Nickel-Cadmium Accumulators (Excl. Spent)

8507.80 Electric Accumulators (Excl. Spent And Lead-Acid, Nickel-Cadmium Or Nickel-Iron

Accumulators)

8539.22 Filament Lamps Of A Power <= 200 W And For A Voltage > 100 V (Excl. Tungsten Halogen

Filament Lamps And Ultra-Violet Or Infra-Red Lamps)

8539.29 Filament Lamps, Electric (Excl. Tungsten Halogen Lamps, Lamps Of A Power <= 200 W And

For A Voltage > 100 V And Ultra-Violet Or Infra-Red Lamps)

8539.39 Discharge Lamps (Excl. Flourescent, Hot Cathode Lamps, Mercury Or Sodium Vapour

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