Services Of the CAribbean

SOCACreating the conditions for greater services trade between CARICOM and the USA

Members:……………..

OutlineOverview

Regional Services

Work Plan

US Services Regime and Agreements

US in GATS

The Way Forward

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OverviewAim: To advance new trade and investment

opportunities between the US and CARICOM service sectors and industries

Launched November 20, 2013 in Washington, DC.

Focus:

- CBI Enhancement

- Trade Facilitation

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RationaleCARICOM countries only CBI beneficiaries with

goods-based preference regime with the US

CARICOM region has become a services-dominated economy

US-CARICOM trade policy and business discourse should be expanded to reflect services

US involvement in TiSA negotiations means CARICOM will face a more competitive services trade environment

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Regional ServicesCARICOM Services Trade with the world (2012)

- Exports: $9.6 billion

- Imports: $6.6 billion

Services sector fastest growing sector in CARICOM.

Services accounts for more than 60% GDP of CARICOM countries

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CARICOM Exports of Services to the World 2008 – 2012 (US$,000)

Exporters

2008 2009 2010 2011 2012

CARICOM 10,828,967

9,854,037

10,169,542

15,072,630

9,596,552

Bahamas 2,533,920 2,350,850 2,493,580 2,606,155 2,740,680

Barbados 1,822,480 1,502,829 1,638,150 1,762,510 1,801,308

Belize 386,479 344,382 353,837 340,152 412,990

Guyana 211,880 170,305 248,049

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Sources: ITC, UNCTAD, WTO joint dataset

CARICOM Exports of Services to the World 2008 – 2012 (US$,000)

Exporters 2008 2009 2010 2011 2012

Haiti 399,450 378,870 239,010 249,160 278,086

Jamaica 2,795,220

2,650,560 2,634,020 2,620,210 2,673,780

OECS (CARICOM)

1,559,238

1,404,741 1,447,296 1,481,384 1,514,386

Suriname 284,600 286,700 241,400 200,825 175,322

Trinidad and Tobago

935,700 764,800 874,200 5,812,234

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CARICOM Imports of Services from the World 2008 – 2012 (US$,000)

Importers

2008 2009 2010 2011 2012

CARICOM 7,395,512

6,452,095

6,965,414

11,978,403

6,625,911

Bahamas 1,402,900 1,196,060 1,181,100 1,292,419 1,537,661

Barbados 736,019 710,627 733,044 569,957 391,661

Belize 169,575 161,747 162,391 171,083 187,805

Guyana 323,112 272,421 343,834

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Sources: ITC, UNCTAD, WTO joint dataset

CARICOM Imports of Services from the World 2008 – 2012 (US$,000)

Importers 2008 2009 2010 2011 2012

Haiti 756,640 772,100 1,277,260 1,140,160 1,089,949

Jamaica 2,367,120

1,880,640 1,824,400 1,946,040 2,034,880

OECS (CARICOM)

916,046 883,919 797,785 792,226 789,836

Suriname 398,100 285,300 259,000 562,518 594,119

Trinidad and Tobago

326,000 383,100 386,600 5,504,000

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Work PlanLegislative initiatives in US Congress to address

CBI expansion:

- CBI goods preferences are unilateral, as per US law. Providing similar services preferences can be proposed and secured in a unilateral manner per act of Congress

- Service incentives in US market access for CBI CARICOM firms would enhance their ability to participate in the US services market

- To date, discussions have taken place with trade-related Committees in Congress with request for specific proposals to be advanced to Congress

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Work PlanExecutive action via the 2013 US-CARICOM Trade

and Investment Framework Agreement (TIFA)

- TIFA can encourage more investment in region in services growth

- TIFA agenda and work plan for 2014 is currently being discussed and SOCA initiative can fit in the discussion

- Room for growth, for example the US-Uruguay TIC/TIFA 2007 where preference arrangements for services, e-commerce and ICT, and investment, resulted in doubling US-Uruguay trade and investment flows to $2.2 billion in 2013

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Work PlanBusiness-to-Business (B2B) Partnerships

- Can stimulate US services investment and trade across the region

- Areas such as education, medical services, and ICTs have a real market need for stimulating and supporting new business efforts between US and regional firms

- Discussions to advance services focus on CBI CARICOM markets to their US services member companies already underway by groups such as the US Chamber of Commerce and the Association of American Chambers of Commerce in Latin America and the Caribbean (AACCLA)

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US Services Regime and AgreementsUS FTAs are reciprocal and binding

US services trade highly competitive. Example: ICT, Express Delivery Services, Professional Services, Financial Services

US market contains few barriers to services imports

US trade surplus in services is 25% higher with trade agreement partners than with other countries therefore FTA alternatives should be priority for accessing services market

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US in WTO GATSNo specific commitments:

- Medical and dental services

- Maritime transportation

Conditional commitments:

- Services auxiliary to financial administration

- Movement of natural persons

- Services auxiliary to insurance and pension funding

- Offshore banking

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ConstraintsDearth of services data in region

- International agencies do not track small country services data

- Hinders specific sector focus

- Collaborate with regional governments as per their priority

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Possible services preferences focusFinancial and Insurance Services

Education and Training Services; including Medical and Nursing

Health / Medical Tourism and Sports-Fitness Services

Entertainment and Film/Music/Audiovisual and Creative Industries Services

Tourism and Travel Services

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Possible services preferences focus ICT and Telecommunications Services

BPO/Call Centres and e-commerce Services

Energy Services

Logistics and Transportation Services

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THANK YOU

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Contact SOCA Secretariat

c/o Trinidad and Tobago Coalition of Services Industries

45 Cornelio Street, Woodbrook

Port of Spain

Trinidad and Tobago

Tele: (868) 622-9229 ; Fax: (868) 622-8985

Email: info@ttcsi.org ; Website: www.ttcsi.org

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