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Update on Implementation of the CARIFORUM-EC EPA and on the CARICOM-Canada Negotiations Workshop of Trade Policy & Negotiating Skills for Senior Officials Kingstown, 4-8 October 2010. Natallie Rochester-King Technical Adviser, Services Specialist - PowerPoint PPT Presentation
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Update on Implementation of the CARIFORUM-EC EPA and on the CARICOM-
Canada Negotiations
Workshop of Trade Policy & Negotiating Skills for Senior OfficialsKingstown, 4-8 October 2010
Natallie Rochester-King
Technical Adviser, Services Specialist Office of Trade Negotiations, CARICOM Secretariat
www.crnm.org
Presentation Outline
• CARICOM internal liberalisation of trade in services
• Liberalisation and regulatory cooperation in the CARIFORUM-EC EPA
• Snapshot of the CARIFORUM-EC EPA on Services and Investment
• Update on the CARICOM-Canada Negotiations
• Ongoing Technical Work for EPA Implementation and CARICOM-Canada Negotiations
2
Typical Provisions of a Trade in Services Agreement
• Scope & Definitions– What is covered, what is trade in services
• General Obligations & Disciplines– MFN, Transparency, Domestic Regulation, Mutual
Recognition, General and Security Exceptions, Monopolies
• Specific Commitments & Liberalisation– Market access, national treatment, list of commitments,
changes to commitments
• Institutional Provisions – Bodies set up to manage the Agreement (consultation,
dispute settlement, cooperation)
• Annexes (mainly sector-specific – telecom, fin services, culture)3
Services Liberalisation in CARICOM
Chapter 3- Establishment, Services, Capital & Movement of Community Nationals
Scope • Applies to right of establishment, right to provide services, right to
move capital • Does not apply to activities in the exercise of govt. authority
Member States’ Obligations:• Art. 32 (1) No new restrictions on the right of establishment (2)
Notification of existing restrictions
• Art. 33 – Phased removal of restrictions on the right to establishment subject to precedents & locus standi of private entities (Art.221 &222)
• Art. 37 – Removal of Restrictions on Provision of Services, including 3(c) on entry of personnel 3(e) access to land, buildings
• Art. 40 – Removal of Restrictions on Movement of Capital & Current Transactions 4
Services Liberalisation in CARICOMChapter 3- Establishment, Services, Capital & Movement of
Community Nationals
• Article 35 of the Revised TreatyAcceptance of Diplomas, Certificates and Other Evidence of Qualifications
• Free Movement for certain categories of persons:University GraduatesMedia WorkersSportspersonsArtistes MusiciansDomestic workersHigglers/Informal Commercial Importers (ICIs)Persons with Certified Vocational Qualifications (CVQs) 5
Stages for Development of Regime for Professional Services
Step 1 - Implementation of Skills Legislation to allow the free movement of university graduates
Step 2 - Development of regulatory and administrative arrangements for free movement
Step 3 - Establishment of a national and regional accreditation infrastructure – Caribbean Accreditation Authority for Education in
Medical and Other Health Professions – Caribbean Accreditation Council for Engineering and
Technology (in progress)
6
CARICOM Draft Professional Services Bill
• Work since 2003 to address absence and inadequacy of regulations for professional services in CSME
• Regional consultations on sector-specific bills – Health: Medical, Nursing & midwifery, Dental, Pharmacy,
Veterinary, Allied health, Medical Laboratory– Non Health: Engineering, Architecture, Accountancy,
Consultancy and Building Contracting • Process: – Bills sent to Chief Parliamentary Counsels Sub-
committee on Harmonisation of Laws Legal Affairs Committee MS Cabinet
7
CARICOM Draft Professional Services Bill
• Draft Bill contains six parts:– Interpretation and definitions– Establishment of a Council– Requirements & procedures for registration &
licensing– Discipline– Offences and penalites– Miscellaneous provisions
8
CARICOM Draft Professional Services Bill
• Professional Services Bill to improve regulation & regulatory harmonisation regionally– Seeks to regulate profession through regulatory framework & administrative
body– Body to register and license professionals (mandatory for practice), set
related qualification requirements and procedures including appeals– Geographical limitations to license possible for non-CARICOM nationals– Criteria for refusal of licenses & appeal against suspension/revocation– Temporary licensing– Framework for Ethics and discipline– Ministerial role with Council approval to carryout out the purposes of the Act
* Harmonisation of fees being discussed * Sets 3 year university degree as minimum for professionals with grandfathering* Not clear if all services providers to be ‘professionals’ & regulated * Safeguards through license revocation (not liked by Member States)
9
Status of Regulation Professional Services – Engineering
• Title not generally protected in law• In Commonwealth Caribbean only 6 countries
have registration boards – Includes Barbados, Jamaica, St. Lucia, T& T
• No licensing requirement in place in most CARICOM States
• Engineers have developed model law (in cooperation with Canada) but not in place
10
Status of Regulation Professional Services – Architecture
• Registration, licensing and qualification requirements not in place in all CARICOM countries
• Title not generally protected in law
• Largely similar regulations in Commonwealth CARICOM countries (organised under ACSAC, Commonwealth Society of Architects)
• Different system in Suriname, Haiti though some cooperation
11
Status of Regulation Professional Services – Accounting
• Legislation on registration & registration boards in some Member States (incl. The Bahamas, Barbados, Dominica)
• Institute of Chartered Accountants (ICAC) plays major role in regulation (mainly Commonwealth, coordinates w/Suriname); recognised regional body for International Federation of Accountants (IFAC)– Monitors prof. standards based on international standards– Quality standards through practice monitoring
12
OUTCOME OF CARIFORUM-EC EPA
13
CF-EC Title II on Trade in Services, Investment and E-Commerce – Art. 60 Objectives, Scope and Coverage
• Affirm WTO commitments and goal of Title to facilitate regional integration & sustainable development
• Sets out arrangements for the progressive, reciprocal and asymmetric liberalisation of investment, trade in services, and for cooperation on e-commerce– Trade in services covers all modes of supply but these
treated in specific chapters of Title II• Parties retain right to regulate and discretion over visa
& immigration policies • Doesn’t require privatisation & doesn’t apply to
subsidies or access to labour market
Structure of the CF-EC Title on Trade in Services, Investment and E-Commerce
• Chapters on: – Commercial Presence – coverage, market access, national treatment,
MFN, other agreements, investor & host state behaviour, review– Cross border supply of services - coverage, market access, national
treatment, MFN– Temporary Presence of Natural Persons for Business Purpose –
categories, broad commitments– Regulatory Framework - Mutual recognition agreements, Computer
services, financial services, Courier, telecommunications (regulatory authority, independent regulators), maritime transport, tourism
– Electronic Commerce – objectives & principles, regulatory aspects – Cooperation – commitment to cooperation, indicative list of support
areas for services suppliers
• Annexes & Protocols – Schedules of Market Access Commitments in Annexes– Protocol on Cultural Cooperation
CARIFORUM-EC EPA Title II – Investment Trade in Services & E-Commerce -Chapter 5
• Mutual Recognition (Art.85)– Parties to jointly develop MRA recommendations to the
CF-EC Trade and Development Committee– Parties to encourage prof. bodies to start negotiations
within 3 yrs of entry into force of the agreement (architecture named as a priority)
– Competent authorities to negotiate MRA is sufficient correspondence between regulations
– Negotiations to be WTO (GATS) compliant
16Natallie Rochester-King Implications of CF-EC EPA for Architects and Designers
EPA Trade in Services Compared to the GATS
• WTO Plus liberalisation for CARIFORUM and for the EC• Different EPA Mode 4 Categories removes grey areas in WTO • WTO Plus Provisions on Regulations for Some Sectors
– Section on Tourism– Computer Services, Courier Services (WTO plus )– Telecoms (WTO Telecom Annex + optional Telecom Reference Paper)– Maritime Transport (WTO plus for CARICOM)
• Protocol on Cultural Cooperation • Different EPA MFN Obligation
– Asymmetry • CF- MFN Triggered for better treatment to major trading economy
Consultations EC may opt out of better treatment • EC- MFN Triggered for better treatment to any 3rd country
• Detailed provisions on cooperation on trade in services & investment• Specific roles for Joint CARIFORUM-EC Institutions
17
UPDATE ON THE CARICOM-CANADA NEGOTIATIONS ON TRADE IN SERVICES AND
INVESTMENT
18
Canada as a Potential Services Market• Canada is a large commercial services importer and exporter, and
significant outward investor• Tourist Arrivals from Canada to SVG holding steady compared to decline
from US and UK for Jan-May 2010 over 2009 figures
• Vincentians entering Canada as foreign workers in various occupations
PLUS• Large Vincy population in Canada (about 7100 from 1991-2006)
• Goods trade taking place with Ontario, Alberta, Quebec, New Brunswick
• Canada has labor shortages in several sectors of interest
19
Canada as a Potential Services Market
• Vincentians entering Canada as foreign workers in various occupations– Auditors– Accountants– Investment Specialists– Creative and Performing Artists,
Athletes– Childcare and Home Support
Workers Metalwork and Woodwork Operators
– Trades Helpers and Labourers, Logging/Forestry workers
– Agriculture /Horticulture Workers
• Canada has labor shortages in several sectors of interest, including:– Management in various sectors
e.g. fin services, telecom– marketing & advertising– accounting, auditing, investment– construction– customer service– distribution– engineering; computer & info
systems– physicians, dentists & other
medical fields
20
Status of CARICOM-Canada Negotiations on Trade in Services (including Culture) & E-Commerce
• 1st Round, November 2009 – Exchanges on broad principles – Presentation of Canada’s Proposed Texts on Cross-Border Services &
Temporary Entry– Outline of CARICOM Broad Development Priorities– Outline of CARICOM interests in Cultural Cooperation and Trade in Cultural
Services
• 2nd Round, March 2010– Presentation of Canada’s Proposed Texts on Financial Services,
Telecommunications– Questions, clarifications and indication
• 3rd Round, To Be Determined– Presentation of CARICOM text proposals– Presentation of CARICOM proposals on development cooperation in services– Exchanges on specific market access interests
Structure of Canada’s Proposed Text on Trade in Services & Investment
• Chapter on Trade in Cross-Border Services• Chapter on Temporary Entry• Chapter on Financial Services• Chapter on Telecommunications • Chapter on Investment• Chapter on E-Commerce
(*Some agreements treat as trade in services, Canada’s bilaterals with Costa Rica & Peru include Cooperation)
Structure of CARICOM’s Proposed Text on Trade in
Services & Investment • Chapter on Trade in Services– Sector specific provisions on Financial Services,
Telecommunications, Tourism, Energy Services* Special Framework for Culture to be developed
• Chapter on Investment • Chapter on Facilitation of Business Persons– Movement of persons for services supply and investment
in non-services – Mutual recognition (traditional professions & vocations)– Temporary Licensing– Cooperation of Immigration Officials
23
Possible Scope of a Prof. Services MRA
• Participants/Parties – usually single negotiating entity for the sector
• Definitions e.g. Accredited Engineering Programme, Registered/Licensed Architect, registration, substantially equivalent academic formation, continued professional development, home/host/reciprocating jurisdiction
• Registration and Licensure practice• Eligibility for Registration/Licensure in host jurisdiction• Ratification and Implementation• Discipline and enforcement • Immigration and visa issues (usually limited commitment)• Information exchange• Dispute resolution • Term of Agreement
24Natallie Rochester-King Implications of CF-EC EPA for Architects and Designers
Recent/ Ongoing Technical Work
• CARICOM Regional Services Strategy (ongoing)– Inventory of policies and regulations– Comparative analysis and review of gaps – Development of Strategy including strengthening of laws
and regulations based on analysis above
• OTN Statistics on Trade in Services between Canada and CARICOM States (ongoing)
25
Recent/ Ongoing Technical Work • Analysis of EU Regulatory Regimes for Selected Services &
Consultations, June 2009• Analysis of Canada’s Provincial Regulatory Regimes for
Services, August 2009• CARICOM (OTN)/TradeCom Support to MRA Prep. Work for
CARIFORUM Engineers and Architects– Comparative analysis of CARIFORUM & EC legal regimes– Assessment of level of congruence– Identification of specific MRA negotiating objectives based on above– Timeframe – October –December 2010
* Application for similar work for Accountants submitted by ICAC under UK CARTFund
26
Key Elements of OTN/TradeCom for MRA Prep. Support for Architects & Engineers
• Two Projects to run concurrently with close coordination• Comparative analysis CARIFORUM national regimes & report on areas need
intra-CARIFORUM mutual recognition• Identification of institutional needs of CARIFORUM prof bodies • Institutional arrangements, laws and regulations required to initiate and
carryout MRA negotiations and to implement an MRA• Identification of specific areas where mutual recognition would be required
to enhance trade with European counterparts• Recommended strategy for CARIFORUM for MRAs where required including
possible priority EU States• Consultation on findings and Information Dissemination• Support to prof. bodies for info dissemination e.g. website improvement • Mission to Europe for dialogue with counterpart entities
27
Input Required from Professionals for Trade & MRA Prep. Work
• Info on Caribbean policies, laws and regulations for qualification, accreditation, licensing, continued education etc. for each sector
• Appropriate definitions for Domestic Regulation based on Caribbean reality e.g. Licensing requirements, licensing procedures, qualification requirements, qualification procedures, mandatory standards
• Feedback on specific experiences in EU & Canada market or in providing services to EU & Canadian operators
28Natallie Rochester-King Implications of CF-EC EPA for Architects and Designers
ADDITIONAL SLIDES:CARICOM INTERESTS IN SECTOR- SPECIFIC
PROVISIONS IN A CARICOM-CANADA AGREEMENT
CultureEPA as the base – Member States to identify value-added and specific interests in Canadian market e.g. Agenda for AV-Coproduction
Snapshot: Protocol III on Cultural Cooperation in the CF-EC EPA• Affirms UNESCO Convention on the Protection and
Promotion of the Diversity of Cultural Expressions• Recognises need for protection & promotion of cultural
heritage• Preferential schemes for promotion of local/regional cultural
content • Cooperation on IPR protection• Provides for training, cultural exchanges & dialogue• Soft commitment to facilitate entry of artists, other cultural
professionals, practitioners
Tourism
• EPA as the base – Member States to identify value-added and specific interests in Canadian market e.g. Health & Wellness, Standards
• Snapshot :• Technology transfer & sustainable development for tourism• Priority for SMEs • Provisions on Competition • Business to business matching and trade fairs • Mutual recognition• Training and other types of cooperation
Energy Services
Possible scope of provisions in a CARICOM-Canada Agreement:
– Mutual objectives on sustainable development and mitigating the impact of climate change to the economies of the Parties;
– Commitment to the development of new sources of energy to promote energy security;
– Confirmation of the joint interest in the mitigation of adverse environmental effects of energy production;
– Commitments on conservation and sustainable use of resources;– Commitments on local content while not excluding foreign service
providers;– Priority for energy services firms in the small and medium
categories;– Renewable and alternative energy sources;– Non-ownership of the natural resource;– Specific mechanisms to increase trade and investment between the
Parties in energy and energy-related services.
E-Commerce
Possible objectives of provisions on E-Commerce in a CARICOM-Canada TDA:
• To create a framework for regulatory cooperation between CARICOM and Canada, using the EPA indicative list of regulatory issues as a baseline for types of matters that may be addressed by the Parties;
• To facilitate increased investment in E-Commerce and related ICTs in CARICOM;
• To create a framework for cooperation focused on capacity building for CARICOM public and private sector for the increased availability of E-Commerce platforms and related information and communication technologies (ICTs), development of new applications, and regulation of E-Commerce as it evolves;
• To create a framework that facilitates increased access to and exploitation of E-Commerce platforms by micro, small and medium-sized enterprises with a view to increased CARICOM exports of goods and services.