THE EPA AND CARIBBEAN DEVELOPMENT A Critical Perspective Norman Girvan Prepared for Civil Society Forum, Jamaica May 1, 2008

THE EPA AND CARIBBEAN THE EPA AND CARIBBEAN DEVELOPMENTDEVELOPMENT

A Critical PerspectiveA Critical Perspective

Norman GirvanNorman GirvanPrepared for Civil Society Forum, JamaicaPrepared for Civil Society Forum, Jamaica

May 1, 2008May 1, 2008

http://normangirvan.infohttp://normangirvan.info

Girvan EPA 27/04/08Girvan EPA 27/04/08 22

EPA—democratic governance? EPA—democratic governance?

The EPA isThe EPA is More than a trade agreement—will impact More than a trade agreement—will impact

many aspects of lives of Caribbean many aspects of lives of Caribbean peoplespeoples

Legally binding, difficult to amend once Legally binding, difficult to amend once legally in force and of indefinite durationlegally in force and of indefinite duration

Wide in scope, covering several areas of Wide in scope, covering several areas of national and regional policy national and regional policy

Limits governments’ ability to change Limits governments’ ability to change future policies in several areasfuture policies in several areas

Little known and understood by the publicLittle known and understood by the public


Part I. Trade Partnership For Sustainable DevelopmentPart II. Trade And Trade-Related MattersTitle I. Trade In GoodsChapter 1. Customs DutiesChapter 2. Trade Defence InstrumentsChapter 3. Non-Tariff MeasuresChapter 4. Customs And Trade Facilitation Chapter 5. Agriculture And FisheriesChapter 6. Technical Barriers To Trade Chapter 7. Sanitary And Phytosanitary Measures Title II. Investment, Trade In Services And E-Commerce Title III. Current Payments And Capital Movement Title IV. Trade Related IssuesChapter 1. CompetitionChapter 2. Innovation And Intellectual PropertyChapter 3. Public ProcurementChapter 4. EnvironmentChapter 5. Social AspectsChapter 6. Protection Of Personal Data Part III. Dispute Avoidance And SettlementPart IV. General ExceptionsPart V. Institutional ProvisionsPart VI. General And Final Provisions


Annexes, Protocols and Joint Declarations •Schedule of Cariforum commitments on liberalization of trade in goods•Schedule of Cariforum commitments on liberalization of trade in services •Schedule of Cariforum commitments on liberalization of investment (commercial presence) in non-service sectors•Protocol I on Definition of "Originating Products" (Rules of Origin) and Methods Of Administrative Cooperation•Protocol II on Mutual Administrative Assistance in Customs Matters•Protocol III on Cultural Cooperation•Joint Declaration on Development Cooperation•Joint Declaration on Bananas•Joint Declaration on Used Goods•Joint Declaration on Rice•Joint Declaration on Undelivered Quantities Under the Sugar Protocol


Does the EPA support development?’ Does the EPA support development?’ The Cotonou Partnership Agreement, under which EPAs are The Cotonou Partnership Agreement, under which EPAs are

negotiated, says that their principal objectives are poverty negotiated, says that their principal objectives are poverty reduction & sustainable developmentreduction & sustainable development

In order for a reciprocal trade agreement between unequal In order for a reciprocal trade agreement between unequal partners, such as the EU-CF EPA, to contribute to sustainable partners, such as the EU-CF EPA, to contribute to sustainable development of the less developed partners, there must be development of the less developed partners, there must be adequate resource transfers for the development of their economic adequate resource transfers for the development of their economic infrastructure and the supply capabilities of their firms. The EU has infrastructure and the supply capabilities of their firms. The EU has recognized this in their own internal arrangements by the provision recognized this in their own internal arrangements by the provision of ‘Structural Funds’ and ‘Social Cohesion Funds’ for their poorer of ‘Structural Funds’ and ‘Social Cohesion Funds’ for their poorer member states. member states.

There are no additional funding commitments provided through There are no additional funding commitments provided through the EPA to facilitate adjustment to the liberalization of imports the EPA to facilitate adjustment to the liberalization of imports from the EU and to take advantage of export opportunities in from the EU and to take advantage of export opportunities in goods and services from CFgoods and services from CF

Without such additional resources, existing inequalities between Without such additional resources, existing inequalities between unequal partners are likely to be worsened.unequal partners are likely to be worsened.


EPA AsymmetryEPA AsymmetryThe Caribbean getsThe Caribbean gets

Preservation of existing duty-free quota-free Preservation of existing duty-free quota-free access in Europe for 97% of exports of goods, access in Europe for 97% of exports of goods, with certain temporary exceptions, and eventual with certain temporary exceptions, and eventual coverage of 100% (but WTO and bilateral FTAs coverage of 100% (but WTO and bilateral FTAs will expose CF to more competition) will expose CF to more competition)

Slight improvement in Rules of Origin but no Slight improvement in Rules of Origin but no change in other trade barrierschange in other trade barriers

Opening of EU service sectors subject to many Opening of EU service sectors subject to many conditionsconditions

No binding commitments from EU on No binding commitments from EU on development support to build up supply capacityydevelopment support to build up supply capacityy


In return for…In return for… Phased liberalization of CF markets to the majority of EU goods over Phased liberalization of CF markets to the majority of EU goods over

a 15-year period; 13% of imports permanently excluded from a 15-year period; 13% of imports permanently excluded from liberalizationliberalization

Liberalization of the majority of services in the CF market for EU Liberalization of the majority of services in the CF market for EU firms and service providers firms and service providers

Binding commitments on policies in investment, competition, public Binding commitments on policies in investment, competition, public procurement, intellectual property and e-commerce; requiring new procurement, intellectual property and e-commerce; requiring new institutions and laws.institutions and laws.

Dispute Settlement and Implementation machinery leading to Dispute Settlement and Implementation machinery leading to indefinite, institutionalized involvement in Caribbean forum indefinite, institutionalized involvement in Caribbean forum decision-making processes in trade, development and regional decision-making processes in trade, development and regional integrationintegration

Establishment of a precedent of a ‘WTO-plus’ FTA to be used in Establishment of a precedent of a ‘WTO-plus’ FTA to be used in negotiations with other ACP countries, other developing countries negotiations with other ACP countries, other developing countries and in the WTO and in the WTO

On On


Services: market access for EU firms an regulatory Services: market access for EU firms an regulatory framework framework

75% of CF service sectors in MDCs and 65% in LDCs will be 75% of CF service sectors in MDCs and 65% in LDCs will be liberalized to EU liberalized to EU

Each CF country has made market access commitments for Each CF country has made market access commitments for service sectors, as set out in Annex 4. service sectors, as set out in Annex 4.

It is necessary to assess the potential impact on the It is necessary to assess the potential impact on the development of CF service industries; e.g. what will happen development of CF service industries; e.g. what will happen in banking and to SMEs in the tourist sector? Will local in banking and to SMEs in the tourist sector? Will local firms be displaced or acquired by larger EU firms? How will firms be displaced or acquired by larger EU firms? How will investment of EU firms affect national and regional investment of EU firms affect national and regional development plans for services industries? development plans for services industries?

A Regulatory Framework is specified for computer, courier, A Regulatory Framework is specified for computer, courier, telecommunications, financial, international maritime telecommunications, financial, international maritime transport and tourist services. How will this affect transport and tourist services. How will this affect government’s ability to regulate these sectors in the public government’s ability to regulate these sectors in the public interest?interest?


Services liberalized for Contractual Service Suppliers Services liberalized for Contractual Service Suppliers from the Caribbean (Art 83)from the Caribbean (Art 83)

1)1) Legal advisory services in Legal advisory services in international public law and international public law and foreign law foreign law

2)2) Accounting and bookkeeping Accounting and bookkeeping 3) Taxation advisory 3) Taxation advisory 4) Architectural 4) Architectural 5) Urban planning and landscape 5) Urban planning and landscape

architecture architecture 6) Engineering 6) Engineering 7) Integrated Engineering 7) Integrated Engineering 8) Medical and dental 8) Medical and dental 9) Veterinary 9) Veterinary 10) Midwives 10) Midwives 11) Services provided by nurses, 11) Services provided by nurses,

physiotherapists and physiotherapists and paramedical personnelparamedical personnel

12) Computer and related 12) Computer and related 13) Research and development 13) Research and development 14) Advertising 14) Advertising

15) Market Research and Opinion 15) Market Research and Opinion PollingPolling

16) Management consulting 16) Management consulting 17) Services related to 16 17) Services related to 16 18) Technical testing and analysis 18) Technical testing and analysis 19) Related scientific and technical 19) Related scientific and technical

consulting consulting 20) Maintenance and repair of 20) Maintenance and repair of

equipment, including equipment, including transportation,transportation,

21) Chef de cuisine 21) Chef de cuisine 22) Fashion model 22) Fashion model 23) Translation and interpretation 23) Translation and interpretation 24) Site investigation work24) Site investigation work25) Higher education services 25) Higher education services

(privately-funded)(privately-funded)26) Environmental 26) Environmental 27) Travel agencies and tour 27) Travel agencies and tour

operators' operators' 28) Tourist guides 28) Tourist guides 29) Entertainment services other than 29) Entertainment services other than

audiovisual services audiovisual services


Employees of CSS – conditions of access Employees of CSS – conditions of access

1.1. Must be working with a firm with a Must be working with a firm with a service contractservice contract in an EU in an EU member state not exceeding one year’s durationmember state not exceeding one year’s duration

2.2. Must have at least Must have at least 1 year’s working experience1 year’s working experience with the with the supplying firm as well as supplying firm as well as 3 years’ professional experience3 years’ professional experience

3.3. With certain exceptions*, must possess a university degree or With certain exceptions*, must possess a university degree or equivalent qualification equivalent qualification andand professional qualification professional qualification required in receiving state. required in receiving state. Mutual recognition agreementsMutual recognition agreements necessary.necessary.

4.4. Stay limited to cumulative period of Stay limited to cumulative period of six monthssix months in any 12- in any 12-month period or duration of contract, whichever is less month period or duration of contract, whichever is less

5.5. Access limited to performance of contractAccess limited to performance of contract6.6. Number limited to what is necessary to fulfill contract Number limited to what is necessary to fulfill contract as as

determineddetermined by local laws by local laws7.7. Other ‘discriminatory limitations’ are allowed, including Other ‘discriminatory limitations’ are allowed, including

limitations on the limitations on the number of employeesnumber of employees permitted entry as a permitted entry as a result of ‘economics needs tests’ in the receiving countries.result of ‘economics needs tests’ in the receiving countries.

8.8. Other conditions are specified in Annex 4.Other conditions are specified in Annex 4.

* Fashion model services, chef de cuisine services, and entertainment * Fashion model services, chef de cuisine services, and entertainment services other than audio-visual . services other than audio-visual .


Services liberalized for Independent Services liberalized for Independent Professionals (IPs) ( Professionals (IPs) ( Art 83Art 83))

1) Legal advisory services in international public law 1) Legal advisory services in international public law and foreign lawand foreign law

2) Architectural services2) Architectural services3) Urban planning and landscape architecture 3) Urban planning and landscape architecture

servicesservices4) Engineering services4) Engineering services5) Integrated Engineering services5) Integrated Engineering services6) Computer and related services6) Computer and related services7) Research and development services7) Research and development services8) Market Research and Opinion Polling8) Market Research and Opinion Polling9) Management consulting services9) Management consulting services10) Services related to management consulting10) Services related to management consulting11) Translation and interpretation services 11) Translation and interpretation services


Conditions of access of IPs Conditions of access of IPs ((Art 83)Art 83)1.1. Must be engaged in the supply of a service on a Must be engaged in the supply of a service on a

temporary basis in the other Party and must have temporary basis in the other Party and must have obtained a obtained a service contractservice contract not exceeding 12 months. not exceeding 12 months.

2.2. At least At least 6 years professional experience6 years professional experience..

3.3. A University degree or equivalent qualification A University degree or equivalent qualification andand professional qualification required by local regulations. professional qualification required by local regulations. Mutual recognition agreementsMutual recognition agreements necessary necessary

4.4. Stay limited to cumulative period of Stay limited to cumulative period of 6 months6 months in any 12 in any 12 month period or duration of contract, whichever is less.month period or duration of contract, whichever is less.

5.5. Other ‘discriminatory limitations’ are allowed, including Other ‘discriminatory limitations’ are allowed, including limitations on the limitations on the number of employeesnumber of employees permitted entry permitted entry as a result of ‘economics needs tests’ in the receiving as a result of ‘economics needs tests’ in the receiving countries.countries.

6.6. Other conditions are specified in Annex 4. Other conditions are specified in Annex 4.


Mutual Recognition AgreementsMutual Recognition AgreementsNecessary for all individuals providing services (CSS and IPs) Article Necessary for all individuals providing services (CSS and IPs) Article

85)85)

1.1. Caveat: Nothing in EPA shall ‘prevent Parties from requiring Caveat: Nothing in EPA shall ‘prevent Parties from requiring necessary qualifications and/or professional experience in necessary qualifications and/or professional experience in territory concerned’ territory concerned’

2.2. Professional bodies to be encouraged to jointly develop Professional bodies to be encouraged to jointly develop recommendations on MR for Trade and Development recommendations on MR for Trade and Development Committee (TDC) within three yearsCommittee (TDC) within three years

3.3. Priority to accounting, architecture, engineering and tourism.Priority to accounting, architecture, engineering and tourism.

4.4. TDC reviews to determine consistency with EPATDC reviews to determine consistency with EPA

5.5. If approved by TDC, Parties negotiate MRA ‘through their If approved by TDC, Parties negotiate MRA ‘through their competent authorities’ competent authorities’

6.6. Agreement must conform with WTO particularly Article VII of the Agreement must conform with WTO particularly Article VII of the GATS.GATS.


Possible asymmetries in Movement of Possible asymmetries in Movement of Natural PersonsNatural Persons

1.1. Most firms establishing ‘Commercial Presence’ are likely to be Most firms establishing ‘Commercial Presence’ are likely to be EU firms setting up business in CF countries. EU firms setting up business in CF countries.

2.2. Such firms will be allowed to bring in in ‘Key Personnel – Such firms will be allowed to bring in in ‘Key Personnel – Managers and Specialists – for up to 3 years and Graduate Managers and Specialists – for up to 3 years and Graduate Trainees for up to 1 year. The qualifications for these categories Trainees for up to 1 year. The qualifications for these categories are stated in general terms with few conditions attached.are stated in general terms with few conditions attached.

3.3. Most of the CF interest in services is in the ‘Movement of Most of the CF interest in services is in the ‘Movement of Natural Persons’ into the EU.Natural Persons’ into the EU.

4.4. The required qualifications and experience related to this The required qualifications and experience related to this category are very precisely stated, with many more category are very precisely stated, with many more reservations and conditions applying. reservations and conditions applying.

5.5. Contractual Service Suppliers and Independent Professionals Contractual Service Suppliers and Independent Professionals have no right to bring in ‘Graduate Trainees’have no right to bring in ‘Graduate Trainees’

6.6. Existing immigration, visa, work permit and residency Existing immigration, visa, work permit and residency regulations will continue to be in force.regulations will continue to be in force.

7.7. Thus on balance, the flow of Natural Persons from the Thus on balance, the flow of Natural Persons from the Caribbean to Europe may be much more difficult than in the Caribbean to Europe may be much more difficult than in the other direction other direction


‘‘WTO-plus’ provisions in the EPAWTO-plus’ provisions in the EPAThe EPA includes binding commitments onThe EPA includes binding commitments on Competition – policy, practice, regulationsCompetition – policy, practice, regulations Public Procurement - transparency Public Procurement - transparency Investment – treatment ofInvestment – treatment of Services - beyond WTO commitmentsServices - beyond WTO commitments Additional Intellectual Property protection Additional Intellectual Property protection E-commerce E-commerce

The first three are known as the ‘Singapore Issues’ The first three are known as the ‘Singapore Issues’ and were rejected for inclusion in the Doha and were rejected for inclusion in the Doha Round negotiations of the WTO by developing Round negotiations of the WTO by developing countries, as this would mean additional countries, as this would mean additional restrictions on their development policy options restrictions on their development policy options and impose onerous implementation obligations and impose onerous implementation obligations


Impact of WTO-plus provisionsImpact of WTO-plus provisions Pre-empt and proscribe government policies in key Pre-empt and proscribe government policies in key

areas of development areas of development

Pre-empt CSME regimes in services, investment, Pre-empt CSME regimes in services, investment, competition, public procurement, intellectual competition, public procurement, intellectual property, e-commerce which have not yet been property, e-commerce which have not yet been completedcompleted

Involve changes in laws, regulations and Involve changes in laws, regulations and implementations and compliance costsimplementations and compliance costs

Compromise the region’s negotiating positions in the Compromise the region’s negotiating positions in the WTO and in bilateral trade agreements with Canada, WTO and in bilateral trade agreements with Canada, the US and other trading partnersthe US and other trading partners


Why WTO-plus? Why WTO-plus? The EC argues that these provisions enhance the The EC argues that these provisions enhance the

development potential of the EPA development potential of the EPA This argument derives from the ideology of neo-This argument derives from the ideology of neo-

liberal globalisation position, which leads to the liberal globalisation position, which leads to the use of ‘trade’ agreements to ‘lock in’ neo-liberal use of ‘trade’ agreements to ‘lock in’ neo-liberal policies by sovereign states, giving them the policies by sovereign states, giving them the force of international treaty law force of international treaty law

Critics argue that this method of securing policy Critics argue that this method of securing policy changes is undemocratic and non-transparent.changes is undemocratic and non-transparent.

Note that securing WTO-plus provisions in Note that securing WTO-plus provisions in bilateral trade agreements (BTAs) is a major bilateral trade agreements (BTAs) is a major objective of the EU’s ‘Global Europe Project’ objective of the EU’s ‘Global Europe Project’


Competition – ExampleCompetition – Example““The Parties and the Signatory CARIFORUM States The Parties and the Signatory CARIFORUM States

shall progressively adjust, without prejudice to shall progressively adjust, without prejudice to their obligations under the WTO Agreement, any their obligations under the WTO Agreement, any State monopolies of a commercial nature or State monopolies of a commercial nature or character, so as to ensure that, by the end of the character, so as to ensure that, by the end of the fifth year following the entry into force of this fifth year following the entry into force of this Agreement, Agreement, no discrimination regarding the no discrimination regarding the conditions under which goods and services are conditions under which goods and services are sold or purchased exists between nationals of the sold or purchased exists between nationals of the Member States of the European Communities and Member States of the European Communities and those of the CARIFORUM Statesthose of the CARIFORUM States, unless such , unless such discrimination is inherent in the existence of the discrimination is inherent in the existence of the monopoly in question”monopoly in question”

(Article 129.4, emphasis added(Article 129.4, emphasis added) )


The Public Procurement Chapter The Public Procurement Chapter General Objective General Objective DefinitionsDefinitions ScopeScope Transparency of Government ProcurementTransparency of Government Procurement Methods of ProcurementMethods of Procurement Selective TenderingSelective Tendering Limited TenderingLimited Tendering Rules of OriginRules of Origin Technical SpecificationsTechnical Specifications Qualification of SuppliersQualification of Suppliers NegotiationsNegotiations Opening of tenders and award of contractsOpening of tenders and award of contracts Information on contract awardsInformation on contract awards Time LimitsTime Limits Bid challengesBid challenges ImplementationImplementation Review ClauseReview Clause CooperationCooperation


National Treatment’ in the EPA National Treatment’ in the EPA Prevent policies fostering development of local/regional firmsPrevent policies fostering development of local/regional firms

ExamplesExamplesArticle 27 Article 27 1. 1. ““2. Originating imports shall be accorded treatment no less 2. Originating imports shall be accorded treatment no less

favourable than that accorded to like domestic products favourable than that accorded to like domestic products in respect of all laws, regulations and requirements in respect of all laws, regulations and requirements affecting their internal sale, offering for sale, purchase, affecting their internal sale, offering for sale, purchase, transportation, distribution or use. ..(Art 27.2)transportation, distribution or use. ..(Art 27.2)

3 No Party or Signatory CARIFORUM State shall establish or 3 No Party or Signatory CARIFORUM State shall establish or maintain any internal quantitative regulation relating to maintain any internal quantitative regulation relating to the mixture, processing or use of products in specified the mixture, processing or use of products in specified amounts or proportions which requires, directly or amounts or proportions which requires, directly or indirectly, that any specified amount or proportion of any indirectly, that any specified amount or proportion of any product which is the subject of the regulation must be product which is the subject of the regulation must be supplied from domestic sources.”supplied from domestic sources.”

Exceptions: (i) payment of subsidies to national producers (ii) Exceptions: (i) payment of subsidies to national producers (ii) public procurement (iii) provisions of Art. 23public procurement (iii) provisions of Art. 23


National Treatment in Investment National Treatment in Investment and Services (Article 68) and Services (Article 68)

““In the sectors where market access commitments In the sectors where market access commitments are inscribed in Annex 4 and subject to any are inscribed in Annex 4 and subject to any conditions and qualifications set out therein, with conditions and qualifications set out therein, with respect to all measures affecting commercial respect to all measures affecting commercial presence, the EC Party and the Signatorypresence, the EC Party and the Signatory

CARIFORUM States shall grant to commercial CARIFORUM States shall grant to commercial presences and investors of each other treatment presences and investors of each other treatment no less favourable than that they accord to their no less favourable than that they accord to their own like commercial presences and investors’own like commercial presences and investors’


JOINT CARIFORUM-EC COUNCIL

TRADE AND DEVELOPMENT COMMITTEE

Implementation Committee

COMMITTEE ON CUSTOMS CO-OPERATION AND TRADE FACILITATION

CONSULTATIVE COMMITTEE

PARLIAMENTARY COMMITTEE


Reading the EPA Reading the EPA ((Art 233)Art 233)

‘‘Party’ or ‘Parties’ refer to Party’ or ‘Parties’ refer to • European Community (EC), representing 27 European Community (EC), representing 27

member states of EU member states of EU oror • CARIFORUM States “acting collectively” CARIFORUM States “acting collectively” • ““Signatory CARIFORUM States” refer to Signatory CARIFORUM States” refer to

individual states that have assumed rights and individual states that have assumed rights and obligations as separate entitiesobligations as separate entities

CARICOM as a juridical entity not a Party CARICOM as a juridical entity not a Party Many references to Committees with wide Many references to Committees with wide

powers (see powers (see Implementation Committee slide) slide)


Joint EC-Cariforum CouncilJoint EC-Cariforum CouncilPart V Articles 227-229Part V Articles 227-229

Composition: Members of the Council of the EU, Composition: Members of the Council of the EU, members of the EC, and representatives of the CF members of the EC, and representatives of the CF states. states.

In matters where CF states agree to act In matters where CF states agree to act collectively “One representative of the CF states collectively “One representative of the CF states will act on their behalf”will act on their behalf”

Responsible for operation and implementation of Responsible for operation and implementation of the Agreement and to “ensure that the Objectives the Agreement and to “ensure that the Objectives are fulfilled”are fulfilled”

Decisions are by consensus and are binding and Decisions are by consensus and are binding and Parties “shall take measures to implement them”Parties “shall take measures to implement them”

Other responsibilities set out in 19 paras. Other responsibilities set out in 19 paras.

Read ‘Institutional Machinery of the EPA’ at http://normangirvan.info Read ‘Institutional Machinery of the EPA’ at http://normangirvan.info


Trade and Development CommitteeTrade and Development CommitteeArticles 230-231, references in several other Articles Articles 230-231, references in several other Articles

Composed of Senior Officials – CF one Composed of Senior Officials – CF one representative in matters of collective representative in matters of collective action action

56 functions and responsibilities set out in 56 functions and responsibilities set out in Article 230 and other references Article 230 and other references

Special Committee on Customs Cooperation Special Committee on Customs Cooperation and Trade Facilitation – 13 functions, and Trade Facilitation – 13 functions, powers and responsibilitiespowers and responsibilities

Further details in ’Institutional Machinery of the EPA’Further details in ’Institutional Machinery of the EPA’


Towards regional disintegration?Towards regional disintegration?

Parties to the EPA are the EC, CF states ‘acting Parties to the EPA are the EC, CF states ‘acting collectively’ and 15 Signatory CF states. Neither collectively’ and 15 Signatory CF states. Neither Caricom nor Cariforum is juridically a Party Caricom nor Cariforum is juridically a Party

Most binding obligations are with ‘Signatory CF Most binding obligations are with ‘Signatory CF states’, implying that they are treated as states’, implying that they are treated as individual juridical entities for purpose of individual juridical entities for purpose of compliance with these obligations compliance with these obligations

In implementation, this will tilt bargaining power In implementation, this will tilt bargaining power even more heavily in favour of Europe. even more heavily in favour of Europe.

Dominican Republic will be a major playerDominican Republic will be a major player Cariforum states may end up competing with one Cariforum states may end up competing with one

another in implementation, possible widening of another in implementation, possible widening of intra-regional inequalities and regional intra-regional inequalities and regional disintegration.disintegration.


Marginalization of CSME?Marginalization of CSME?

EPA is EU-DR-Caricom ‘Single Market’ for Goods, Services, EPA is EU-DR-Caricom ‘Single Market’ for Goods, Services, and Capital and ‘Single Economy’ in Intellectual Property, and Capital and ‘Single Economy’ in Intellectual Property, Competition, Public Procurement, e-commerce, Competition, Public Procurement, e-commerce, Environment and Social Aspects Environment and Social Aspects

The EPA organs of governance may rival those of Caricom The EPA organs of governance may rival those of Caricom e.g., e.g.,

• What will the authority of the Conference of Caricom Heads What will the authority of the Conference of Caricom Heads of Government, or the Caricom Council for Trade and of Government, or the Caricom Council for Trade and Economic Development (COTED) vis-à-vis that of the Joint Economic Development (COTED) vis-à-vis that of the Joint EC-CF Council and the Trade and Development Committee?EC-CF Council and the Trade and Development Committee?

The purpose of the CSME was The purpose of the CSME was • to create a single economic space to enhance to create a single economic space to enhance

competitiveness and foster the development of regional competitiveness and foster the development of regional firms and production networks for successful exporting to firms and production networks for successful exporting to world markets; and world markets; and

• pool bargaining power. pool bargaining power. Is this path effectively foreclosed by the EPA ?Is this path effectively foreclosed by the EPA ?


How did we get to this?How did we get to this?Critical points in the EPA negotiations (1) 2000-2004Critical points in the EPA negotiations (1) 2000-2004

2000 – Cotonou Partnership Agreement sets out 2000 – Cotonou Partnership Agreement sets out EPA objectives, architecture & time-table for ACP EPA objectives, architecture & time-table for ACP

2000 – EU gives duty free quota free access to its 2000 – EU gives duty free quota free access to its market to all Least Developed Countries including market to all Least Developed Countries including non-ACPnon-ACP

2001 – Doha WTO meeting agrees to waiver for EU-2001 – Doha WTO meeting agrees to waiver for EU-ACP non-reciprocal trade preferences to 12/2007ACP non-reciprocal trade preferences to 12/2007

2003 - Phase 1 negotiations with all ACP concluded 2003 - Phase 1 negotiations with all ACP concluded without binding agreement on Phase 2 without binding agreement on Phase 2

2003 – Cancun WTO Ministerial ends with rejection 2003 – Cancun WTO Ministerial ends with rejection of ‘Singapore Issues’ from scope of Doha Round.of ‘Singapore Issues’ from scope of Doha Round.

2004 – Phase 2 negotiations begin with 6 separate 2004 – Phase 2 negotiations begin with 6 separate ACP groups; Cariforum negotiations within a ‘WTO-ACP groups; Cariforum negotiations within a ‘WTO-plus’ framework that includes some of the plus’ framework that includes some of the Singapore Issues Singapore Issues


The second phase: 2004--2007 The second phase: 2004--2007 2004: EC determines that GSP tariffs are the only 2004: EC determines that GSP tariffs are the only

alternative for countries that don’t wish to sign alternative for countries that don’t wish to sign EPAs. Bargaining power shifts decisively towards EPAs. Bargaining power shifts decisively towards the EC.the EC.

2005-2007 Doha Round at WTO deadlocked; EC 2005-2007 Doha Round at WTO deadlocked; EC adopts its ‘Global Europe’ project focusing on adopts its ‘Global Europe’ project focusing on bilateral agreements that are WTO-plus. bilateral agreements that are WTO-plus.

2006-2007 CF negotiations proceed on a WTO-2006-2007 CF negotiations proceed on a WTO-plus agreement; the main stumbling block is plus agreement; the main stumbling block is scope and speed of import liberalization scope and speed of import liberalization

End 2007 – EC pressures several African and End 2007 – EC pressures several African and Pacific countries to sign ‘Interim EPAs’ using Pacific countries to sign ‘Interim EPAs’ using threat of imposition of GSP tariffs; threat of imposition of GSP tariffs;

CF makes last-minute concessions in market CF makes last-minute concessions in market access and initials WTO-plus agreement access and initials WTO-plus agreement


So what happens now?So what happens now?

Option 1: Review, Revise Option 1: Review, Revise & Re-negotiate& Re-negotiate

Option 2: Sign now, make Option 2: Sign now, make the best of it, and try to the best of it, and try to change it later if necessarychange it later if necessary


Implement, then revise?Implement, then revise?

The Revision Clause relates to The Revision Clause relates to • extending the scope of commitments extending the scope of commitments

(e.g. in services, public procurement, (e.g. in services, public procurement, investment) investment)

• including Europe’s Overseas Countries including Europe’s Overseas Countries and Territories, and Territories,

• varying of specific measures by the varying of specific measures by the implementation committeesimplementation committees


The renegotiation optionThe renegotiation optionA Commonwealth-ACP High Level Technical Meeting held in A Commonwealth-ACP High Level Technical Meeting held in

Cape Town, S.A. April 8-9, 2008 included several ACP Cape Town, S.A. April 8-9, 2008 included several ACP Ministers, senior officials, NGOs, resource persons: some Ministers, senior officials, NGOs, resource persons: some conclusions:conclusions:

To ensure that EPAs are pro-development EC and ACP should review and renegotiate contentious issues.

There is still legal space to do so ACP unity needs to be maintained/restored ACP should engage with other stakeholders in

Europe


Decision of Caricom Heads 7-8 Decision of Caricom Heads 7-8 March 2008March 2008

Heads ‘noted that a number of Member Heads ‘noted that a number of Member States were still examining the text of the States were still examining the text of the EPA which in some cases would require EPA which in some cases would require the tabling of this Agreement in national the tabling of this Agreement in national parliaments’. parliaments’.

‘‘They committed themselves to take the They committed themselves to take the necessary steps to complete these internal necessary steps to complete these internal consultations in a timely manner to consultations in a timely manner to facilitate signature and provisional facilitate signature and provisional applications of the agreement by 30 June.’applications of the agreement by 30 June.’


Report – ‘EPA signing delayed – Report – ‘EPA signing delayed – Golding’Golding’

"For a number of reasons including the time that "For a number of reasons including the time that needs to be allowed for individual member states needs to be allowed for individual member states to carefully examine the text of the agreement, to carefully examine the text of the agreement, (and) recognizing that there have been two (and) recognizing that there have been two changes of government since the start of this changes of government since the start of this year, it was felt that it was necessary for new year, it was felt that it was necessary for new governments to advise themselves properly governments to advise themselves properly before committing to the agreement," said Mr. before committing to the agreement," said Mr. Golding at the 19th Inter-sessional CARCOM Golding at the 19th Inter-sessional CARCOM heads of Government meeting in the Bahamas.heads of Government meeting in the Bahamas.

http://www.radiojamaica.com/content/view/6209/26/ http://www.radiojamaica.com/content/view/6209/26/ (9 March 2008)(9 March 2008)


Prime Minister Thompson of Prime Minister Thompson of Barbados on CSME and EPABarbados on CSME and EPA

Speech to TTMA 15/04/08Speech to TTMA 15/04/08

‘‘Powerful case’ built against the signing of the Powerful case’ built against the signing of the EPAEPA

‘‘We must recommit ourselves as a region to the We must recommit ourselves as a region to the full implementation of the Single Market and full implementation of the Single Market and Economy while negotiating in WTO and Economy while negotiating in WTO and bilaterally’ bilaterally’

‘‘There is still room for negotiation on the EPA, There is still room for negotiation on the EPA, within the 3-year moratorium before formal within the 3-year moratorium before formal ratification of the Agreement’.ratification of the Agreement’.

The EPA ‘constitutes an imperfect basis from The EPA ‘constitutes an imperfect basis from which to move forward into the brave and which to move forward into the brave and unknown world of the 21st century’. unknown world of the 21st century’.

Documents

THE EPA AND CARIBBEAN DEVELOPMENT A Critical Perspective Norman Girvan Prepared for Civil Society Forum, Jamaica May 1, 2008