TradeWins - Overview of the CF-EC Economic Partnership Agreement (EPA) Vol.1 June2009

8/8/2019 TradeWins - Overview of the CF-EC Economic Partnership Agreement (EPA) Vol.1 June2009

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Tradewins is a publication of the Caribbean Export Development Agency (Caribbean Export) 2009 Tradewins is made possible through the kind support of the European Union.

Ove v ew o the CarifOrum-ECEcono c P tne sh p ag ee ent (EPa)

Back round

Te Economic Partnership Agreement (EPA) was signed by the 27 European Union memberstates and 14 CARIFORUM states (all exceptHaiti) in October 2008 and it came into e ectthrough provisional application in December2008. It replaces the trade provisions o theCotonou Agreement, signed in 2000, in whichthe European Community unilaterally granted A rican, Caribbean and Pacifc (ACP) countriesnon-reciprocal market access to Europe on more

avourable terms than those enjoyed by goodsrom other countries. Tere was special access or

some traditional exports like sugar, rum, rice intothe European market which was very importantto ACP countries.

Te Cotonous non-reciprocal trade pre er-ences required a waiver in the World radeOrganization (W O) because it was contrary tothe basic rule enshrined in Article 1 o the GA ,that all members must be treated no less thanany other member (most avoured nation (MFN)principle) unless they belong to a regional tradeagreement or economic integration agreement

VOL. 1 NO. 1 2

CARIFORUM member of eEPA: ant g nd B b d ,B h s, B b dos, Bel ze,Do n c , Do n c n rep bl c,G en d , G y n , H t ,J c , St. K tts nd Nev s,St. L c , St. V ncent ndthe G en d nes, S n e,T n d d nd Tob go

European Union memberof e EPA: a st , Belg ,

B lg , Cyp s, Czechrep bl c, Den k, Eston ,f nl nd, f nce, Ge ny,G eece, H ng y, i el nd, it ly,L tv , L th n , L xe bo g,m lt , Nethe l nds, Pol nd,Po t g l, ro n , Slov k ,Sloven , Sp n, Sweden,un ted K ngdo

which meets the substantive criteria o Article XXIV o the GA or Article V o the General Agreement on rade in Services (GA S) respec-tively. In exchange or the waiver, the EU and ACP states had agreed to replace the Cotonoupre erential trade arrangement with a reciprocal, W O-compatible agreement by the end o 2007.Te CARIFORUM-EC EPA is the frst EPA to becompleted between Europe and one o the six sub-regions o the ACP.

WhAt ARE PREFERENCEs?a p e e ence s concess on o e edn t de g ee ent by P ty tonothe w tho t o e ng th t s e

concess on to th d Co nt y. fonst nce n the LOmE Convent on the

E ope n Co n ty o e ed d ty eeq ot ee ket ccess o ngeo p od cts th t o g n ted o thea c C bbe n nd P c c reg ons

nd expo ted to the EC m ket.

P ep ed by C bbe n reg on l Negot t ng m ch ne


2/122 Tradewins is a publication of the Caribbean Export Development Agency (Caribbean Export) 2009 Tradewins is made possible through the kind support of the European Union.

Te EPA contains rules to ensure that tradeand investment between CARIFORUM and theEuropean Union is conducted on a transparentand predictable basis while accommodating themarked di erences in size and level o develop-ment between the two regions.

Objec ive

Te EPA as a trade agreement with developmentcomponents, is designed to open up and enhancetrade between Europe and CARIFORUM by removing the barriers to trade between them andby improving CARIFORUMs capacity to tradecompetitively. Trough enhanced open trade, it isexpected that the EPA will: Expand and improve CARIFORUMs industries

and economic growth by enabling CARIFORUMStates to develop exports in services and a widerrange o goods in which they have a compara-tive advantage;

Increase employment and business opportunities; Improve CARIFORUMs access to European

technology and technical know how; Increase competition within CARIFORUM

and thereby improve e iciency in produc-tion processes.

The EPa s d v ded nto s x p ts nd

cont ns nnexes nd p otocols.

The n sect ons e s ollows:

P t i: T de P tne sh p o

S st n ble Develop ent

P t ii: T de nd T de- el ted m tte s

ti le I. T de n Goods

ti le II. invest ent, T de n

Se v ces nd E-co e ce

ti le III. C ent P y ents nd

C p t l move ents

ti le IV. T de- el ted iss es

P t iii: D sp te avo d nce nd

Settle ent

P t iV: Gene l Except ons

P t V: inst t t on l P ov s ons

P t Vi: Gene l nd f n l P ov s ons

Seven annexes {D e to ts s ze,

the CarifOrum Sched le o T

L be l z t on o goods o the EC

(append x to annex iii) s cont ned n

sep te doc ent b t ll the sched les

o se v ces nd nvest ent (annex iV)

e ncl ded n the n EPa doc ent}.

Th ee P otocols

f n l act

W a doe e EPA look like?

ChAPtER 1CUstOMs DUtIEs

In keeping with the concept o special and di erential treatment, CARIFORUM Stateswill reduce tari s on imported goods, but not to the same extent, or at the same paceas Europe. In addition, less onerous commit-ments have been agreed upon or the smaller CARIFORUM states.

hi li Immediate duty-free/quota-free market

access or all CARIFORUM goods into theEU except rice and sugar. ( his was imple-mented in January 2008). In the case o rice and sugar, ull liberalization will notoccur until 2010 and 2015 respectively.

On the other hand, CARIFORUM isnot obliged to begin reducing its tari s

on items subject to phased reductioncommitments, until 2011. his is what isre erred to as the 3-year moratorium. hisgroup o items includes products whicheither have a high degree o revenuesensitivity or are produced by domesticindustries which require a degree o protection rom the competition posedby imports.

Tariffs on very sensitive goods such asood items and processed ood imported

into CARIFORUM will not be removed. Altogether 13.1 % o products imported

rom Europe will continue to be subjectto tari s. hese products makeup theExclusions List.

Tariffs have been a significant source of revenue or some CARIFORUM Statesso they will reduce tari s on products

rom the EU gradually in several Phases.his will allow CARIFORUM time toind alternative revenue sources and

Title 1: Trade in Goods

Part II: Trade and Trade-related Matters


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REDUCtION OF tRADE BARRIERs

or CARIFORUM industries to adjust toincreased competition. he tari liberal-ization regime is as ollows:

In 2009 CARIFORUM will removetari s on 52.8 % o the goodsimported rom Europe pursuantto the commitment to apply a zerorate o duty on these goods at this

time. he revenue impact on theCAREIFORUM States associated withthe liberalization o these products will either non-existent or relatively minor, as prior to the conclusiono the EPA, most o these productsalready aced applied rates o zeropercent or close to zero percent;

In ive years rom the date o applica-tion o the EPA (2013), CARIFORUM will remove tari s on 56% o the goodsimported rom Europe;

In 10 years or by 2018, tari s will beremoved rom 61.1 % o the goodsimported rom Europe;

In 15 years or by 2023, 82.7% will beliberalized;

In 20 years or by 2028, 84.6% will beliberalized;

In 25 years or by 2033, tari s on theremaining CARIFORUM products willbe eliminated, and this will take thetotal level o liberalization to 86.9%.

Most Favoured Nation (MFN) principlehe CARIFORUM States or the EUmust give the same terms to the otherside i under another trade agreementconcluded a ter the EPA:

he EU gives to a non-CARIFORUMcountry or group more advantageoustreatment than those in the EPA.

CARIFORUM States extend to a majortrading economy treatment which ismore advantageous than that o eredto Europe under the EPA.

Rules of Origin (RoO) govern the iden -ti ication o goods that will quali y orpre erential treatment under the EPA.

he EPA RoO are based on the struc-ture and principles o those containedin the Cotonou Agreement. here has,however, been some relaxation o thequali ying conditions or a number o products, thereby making it easier orCARIFORUM producers to export tothe EC. Examples o these products

are biscuits and other bakery products, jams and jellies, ruit juices and otherbeverages, garments, and air condi-tioning units. As was the case under theCotonou Agreement, inputs obtained

rom any CARIFORUM country, the EC,other ACP countries (with some excep-tions) and, under certain conditions,neighbouring developing countries, will quali y as originating goods andso can be used in the production o

inal goods that will quali y or pre er-ential treatment.

ChAPtER 2 tRADE DEFENCE MEAsUREs

his chapter outlines the circumstancesappropriate or either CARIFORUM or Europe to impose temporary barriers totrade, including tari s.

hi li Permitted use of Safeguards, which are

barriers to trade imposed temporarily to prevent injury to domestic industriescaused by imports:-

In cases where increased importsrom the other side as well as third

state sources are causing injury to adomestic industry, the CARIFORUMStates and Europe can invoke the

W O Sa eguard Clause subject to theterms and conditions o Article XIX othe General Agreement on ari s and

rade (GA ); he CARIFORUM States and Europe

can resort to the use o a bilateralsa eguard mechanism created by the Agreement or a limited period otime in the event that the importa-

tion o goods rom the other sideonly, causes or threatens to cause: (a)serious injury to domestic industries;or (b) sectoral disturbances thatcause major social problems; or (c)disturbances to agricultural marketsor mechanisms that regulate thosemarkets. hese sa eguards are notsubject to the W O dispute settle-ment provisions.

Permitted use of Anti-Dumping Dutiesin accordance with corresponding W O

provisions to prevent the un air andpredatory trade practice o selling goodsin overseas markets at less than their costo production.

In accordance with the WTO Agreement onSubsidies and Countervailing Measures,Countervailing Measures such as dutiescan be employed to prevent un air compe-tition between subsidized imports andcompeting domestic products.

In 10 years or by 2018 , tari s will be removed rom 61.1 % o the goodsimported rom Europe...



ChAPtER 3:NON-tARIFF BARRIERs

Tis chapter addresses the reduction o the useo other measures other than tari s such asquotas and import or export licenses which,by way o their application impede trade. Bothsides agreed not to apply quantitative restric-

tions, including import licenses. Te rules alsoseek to ensure there is no un air competitionbetween imports and like domestic productswithin the domestic market.

hi li The EPA reaffirms the provision of the

GA to the extent that discriminationagainst imports is prevented through theapplication o the National reatment(N ) principle:-

No charges and internal taxes may be applied to imports i they are notsimilarly applied to like domesticproducts;

Regulations and laws a ecting internalsale, o ers or sale, purchase, transpor-tation, distribution or use o a product,must be applied to both the importsand similar domestic products;

he application o the N principle inthe EPA does not prevent a govern-ment rom o ering domestic support

to national producers. Although Europe is obliged to eliminateexport subsidies on products which theCARIFORUM countries have agreed to liber-alize, the CARIFORUM countries are able tomaintain this type o subsidy on their prod-ucts or the duration o the transition periodsa orded to developing countries by both the Agreement on Agriculture and the SCM.

ChAPtER 4CUstOMs AND tRADE

FACILItAtION

Te Chapter sets out to improve customs and trade administrative procedures to ensurethat trade between CARIFORUM and Europeis made easier and that trading proceduresare more predictable.

hi li Transparency, efficiency, accountability

and integrity o CARIFORUMs and

Europes respective customs operationsare required through commitments to:

reduce, simpli y and standardizecustoms data and documentation;

simpli y procedures or goods clearance; publicly disclose customs laws, proce-

dures and explanations o such lawsand procedures; cooperate and dialogue between

CARIFORUM and Europe. The provision of financial and non-finan -

cial support to CARIFORUM to assist in: Development o modern customs

techniques; Automation o customs and other

trade procedures; Compliance with relevant interna-

tional standards and regulations

including W O rules, the KyotoConvention and the World CustomsOrganization (WCO).

ChAPtER 5AgRICULtURE AND FIshERIEs

Agriculture and sheries are an important part o the EPA. Tere is a chapter dedicated to the issues, which addresses the development needs o these sectors and commits the EU to

providing support in a range o areas, e.g.research, downstream processing, improving production and quality standards, and promoting investment. A special process odialogue between the two sides will be set upto address agricultural and sheries issues.

hi li Seventy five percent of all CARIFORUMs

imports o agricultural and isheriesproducts have been excluded rom liber-alization under the EPA. hese sensitiveproducts will continue to be protected by tari s applied by CARIFORUM states.

Liberalization commitments have alsobeen back-loaded with only 29% o tarilines being subject to tari elimination by the end o year 10.

There are also special provisions on traditional agricultural exports.Sugar From January 2008 until September

2009, CARIFORUM will be eligible toexport an additional 60,000 tonneso sugar into Europe. his quantity, which is above the Sugar Protocolquota, is to be shared betweenCARICOM signatories to the Protocoland with the Dominican Republic.

From January 2008 until September 2009 , CARIFORUM will beeligible to export an additional 60,000 tonnes o sugar into Europe.


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A ter September 2009, when the SugarProtocol expires, CARIFORUM sugarimported into Europe will be ree o duty. However, between October 1,2009 and September 2015 Europe canstill impose tari s on CARIFORUMsugar exports under very specialcircumstances.

Rice CARIFORUM rice exporters will

receive increased quotas o 187,000tonnes or 2008 and 250,000 tonnes

or 2009. hese quotas will be duty ree in contrast to the 65 per tonne

duty that would have applied. Licensing and other arrangements

related to the rice quota will bekept under review to ensure thatCARIFORUM rice producers get themaximum bene its rom the tradingarrangement.

Duty-free/quota free access for ricerom 2010. Under the new arrange-

ment there is no distinction between whole grain and broken rice. hismakes it easier or CARIFORUM riceproducers to bene it rom the higherpriced market or whole grain rice.

Bananas Duty-free/quota free access from

inception o the EPA.

Joint Declaration on Bananas whichcommits the EU to assist in undingthe CARIFORUM banana industryssocio-economic adjustments to thechanging trading environment.

ChAPtER 6tEChNICAL BARRIERs tO tRADE

Tis aspect o the EPA is aimed at helping bothCARIFORUM and European states to comply with each others mandatory standards. At the same time, these provisions help ensurethat lack o in ormation about such standardsdoes not unnecessarily impede trade betweenCARIFORUM and Europe.

hi li Commitment to designate contact points

to acilitate the channelling and exchangeo in ormation regarding technical regu-lations, standards and con ormity assess-ment procedures as de ined in the W O

echnical Barriers to rade Agreement. Financial and non-financial developmentsupport to assist with the development o :

CARIFORUM centres o expertiseor the assessment o goods or the

purpose o such goods access into theEC market.

Firms capacity to comply with inter-national regulatory requirements.

ChAPtER 7sANItARy AND PhytOsANItARy(sPs) MEAsUREs

Provisions under this Chapter outline howeither CARIFORUM or Europe may usetrade restrictions designed to protect risks tohumans, animals or plants associated withdisease, pests and contaminants. At the sametime, these provisions aim to prevent unin-tended impediments to trade which may comeabout because o these trade measures. Tereare also inclusions in this chapter aimed toassist CARIFORUM to comply with Europeansanitary and phytosanitary (SPS) measuresand to better develop their own regionally harmonized SPS measures.

hi li Commitment to cooperate in establishing

harmonized SPS measures both in the EUand between CARIFORUM States;

Commitment to establish arrangementsto acilitate the recognition o equivalenceo speci ied SPS measures;

Agreement that in the event that no

harmonized SPS measures exist orthere is no recognition o equivalence,CARIFORUM and Europe will consult on ways to acilitate trade and reduce unnec-essary administrative requirements.

Commitment to designate contact points to acilitate the channelling and exchange o in ormationregarding technical regulations,standards and con ormity assess-

ment procedures as de ned in theW O echnical Barriers to rade Agreement.



Tis title contains comprehensive rules and regulatory principles or services and investment including national treatment and most avoured nation treatment. Both sides agreed to cooperateon e-commerce and not to charge customs duties on electroni-cally delivered products. It also contains cooperation provisionsto develop and improve the CARIFORUM services sector. Exclu-

sions rom coverage are: audio-visual services; maritime cabo-tage; arms and munitions; some air services, nuclear materials.

ChAPtER 2COMMERCIAL PREsENCE

Te EPA contains the standard rules on investment such asnational treatment and MFN but it also includes provisions tosa eguard the public interest. It requires that governments takemeasures to ensure that investors sa eguard the environment and maintain high labour and occupational health and sa ety standards. And governments are bound not to lower standards

to attract investment. Furthermore, they are required to takemeasures that orbid investors rom engaging in corruption o public ofcials to obtain concessions or avours.

ChAPtER 3CROss BORDER sUPPLy OF sERVICEs

Tis chapter contains similar rules on national treatment and most avoured nation treatment and addresses the access whichCARIFORUM and Europe will provide to each other in serviceswhich are traded across their borders.

The EU liberalized more than 90% of its services sectors andall modes o supply.CARIFORUM states scheduled 50-75% o service sectors inorder to acilitate investment and the trans er o technology.

he main new areas o market opening by CF include: Business services

Computer and computer related services Research and Development Environmental services Management consultancy Maritime ransport Entertainment ourism

ChAPtER 4tEMPORARy PREsENCE OF NAtURALPERsONs FOR BUsINEss PURPOsE

he EPA has clearer rules or the temporary movement o natural persons (mode 4 in GA S jargon) than the W Obecause it introduces speci ic categories o service suppliersthat can gain entry into the markets o either Party. (See

able). he EUs commitments on the Movement o Natural Persons in the EPA are signi icantly greater than their G A Scommitments and conditional services o er in the DohaRound thereby granting better treatment to Caribbeansuppliers. As expected, CARIFORUM made signi icantlyless commitments in mode 4 and mainly or intra-corpo-rate trans ers.

Title 2: Investment,Services & E-Commerce


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he EU opened 29 sectors to allow pro essional employees o CARIFORUM

irms re erred to as contractual service

suppliers (CSS) to enter the EU to supply services or up to 6 months in a year. hisincludes new areas such as entertainment,

ashion model, che de cuisine services, which do not need university degrees.Eleven (11) sectors have been openedup to allow sel -employed CARIFORUMpro essionals to enter the EU to supply services or up to 6 months. here aresome restrictions in the newer EU memberstates but no limits on the number o CSS

hi li

Ca e or of Per on Main Cri eria Len of s a Allowed

(i) Ke per onnel, w ic include :

B s ness v s to s Pe sons espons ble o sett ng p co e c l p esence nd p d by so ceo ts de o the host te to y.

90 d ys pe c lend ye

int -co po te t ns e s- m n ge s- Spec l sts

Pe sons e ployed by co p ny n thesend ng co nt y t le st ye be o e ent yto the host co nt y to wo k w th n p tneco p ny the e.

up to 3 ye s

( ) G d te t nees un ve s ty g d tes, e ployed by co p ny o t le st ye nd ente nge the P ty o c ee develop ent ot n ng n b nch o p ent co p ny.

up to 1 ye

( ) B s ness se v ces selle s Pe sons ente ng to negot te s le o ng ee ent b t who ece ve e ne t on

o so ce o ts de o P ty nd do notke d ect s les.

90 d ys pe ye

( v) Cont ct l Se v ce S ppl e s (CSS). P o ess on ls w th 3 ye s expe encee ployed by co p ny n the send ngco nt y, wh ch does not h ve p esence nthe othe p ty b t h s se v ce cont ctw th cl ent n the othe p ty.

up to 6 onths pe ye

(v) independent P o ess on ls (iP) Sel -e ployed p o ess on ls w th 6 ye sexpe ence nd se v ce cont ct.

up to 6 onths pe ye

(v ) Sho t Te V s to s o B s nessP pose

Pe sons th t e not sell ng se v ces c nente e the P ty to pe o nge o

ct v t es s ch s: rese ch nd des gn,ket ng ese ch, t n ng, t de s nd

exh b t ons, s les, p ch s ng nd to s

up to 90 d ys pe ye

that may enter the EU. here is also aninnovative Protocol on Cultural Coopera-tion to complement CARIFORUM market

access in EU Recreational services marketsand to acilitate greater cooperation inthe development o cultural industries. Italso provides or co-produced audiovisual works to be treated as domestic content inthe EU and CARIFORUM.

ChAPtER 5sECtORAL RULEs A regulatory ramework is outlined or key sectors o particular development interest

to CARIFORUM and Europe in: Computingservices; Courier services; elecommuni-cations; Financial services and ourism.

Te chapter also provides or developmentsupport to:

Develop the capacity o CARIFORUMirms

Develop sectoral standards and regu-latory regimes

Build human resources withinCARIFORUM through training

Develop equivalence o CARIFORUMskills and Mutual Recognition o quali ications



CARIFORUM and Europe have agreed notto impose restrictions on the ree move-ment o capital related to direct invest-

ments. hey have the right to implementpreventative or precautionary measures

Title 3: Current Payments &Capital Movement

or no more than six months in the eventthat current payments and capital move-ment cause or threaten to cause di iculties

with the operation o monetary policy orexchange rate policy.

Tese provisions are intended to complement and support the EPAs economic and sustainabledevelopment ocus by improvements in areasthat a ect quality o li e and competitiveness.

ChAPtER 1

COMPEtItIONTese provisions ensure that competition is

ree rom distortion and is air. By so doing theinterest o both consumers and businessesespecially small business will be protected.Tere are rules against anti-competitive busi-ness practices such as the abuse o marketpower and dominance, and a commitment toestablish legislation to prevent such practicesby frms. Tere are also provisions allowingthe Parties, i they so desire, to cooperate (by

Title 4: Trade-Related Issues

sharing in ormation etc) in the investigationo alleged anti-competitive practices.

ChAPtER 2INNOVAtION AND INtELLECtUALPROPERty

Te aim is to help create an environment that osters creativity and innovation within the CARI-FORUM States. Te creation o new products,marketing techniques and business practices canimprove economic growth and development.

Te EPA seeks to acilitate the develop-ment o CARIFORUM innovation systemsto enhance the competitiveness o CARI-FORUM frms through technology trans er,

research and development, and participationin joint ventures. Te intellectual property provisions aim to help create a suitablelegislative and administrative environment which will provide protection o intellectualproperty. CARIFORUM and Europe agreed

to adequately implement their obligationsunder agreements which address intellectualproperty to which they may be signatory,such as the W O RIPS Agreement. CARIFORUM LDCs are not obligated to

apply the provisions under the IntellectualProperty section until 2014;

There will be support to develop anden orce the protection o intellectualproperty, including geographical indica-tions and traditional knowledge.


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ChAPtER 3PUBLIC PROCUREMENt

Te Public Procurement chapter sets out comprehensive rules governing the transpar-ency o procurement activities o the Parties.Obligations address all aspects o the procure-ment process including the publication o

relevant national laws and regulations,publication o procurement notices, as well as equal and timely access by suppliers torelevant documentation and other pertinent in ormation. However, the provisions do not con er rights o access to the procurement markets o the Parties. Governments are there- ore ree to open or restrict, as the case may be, their public procurement opportunities, inaccordance with their own national laws.

ChAPtER 4ENVIRONMENt

Tese provisions are designed to assist theprevention o environmental degradation as aresult o trade.

hi li Provisions to prevent the degradation of

the environment and to oster sustainabledevelopment;

Right of CARIFORUM and Europe to

regulate environmental protection inaccordance with their own sustainabledevelopment priorities but in a mannerthat does not cause arbitrary or unjusti i-able discrimination against each other;

These obligations are subject to disputesettlement procedures only a ter allstages o a three stage dispute avoidanceprocess have been completed.

ChAPtER 5sOCIAL AsPECts

Tese provisions are indicative o the Partiesacknowledgment o the need to pursue tradeand the bene ts o trade while upholding international labour standards. Reaffirmed commitment to ILO labour

rights and standards; Prevention of the use of labour standards

or protectionist trade purposes;

These provisions are subject to disputesettlement procedures only a ter allstages o a three stage dispute avoidanceprocess have been completed.

ChAPtER 6PERsONAL DAtA PROtECtION

Te principles and general rules established under these provisions are intended toestablish a legal regime which allows or thepersonal data o CARIFORUM and EC citi-zens and residents to be protected during dataprocessing operations.

Commitment to establish regulatory and legal regimes which are designed to

acilitate the collection and processingo personal data especially with regardto services based on data trans er whistensuring the protection o privacy o customers and transparency.

Financial and non-financial support todevelop legal and regulatory regimes inCARIFORUM.

Developmen Fundin

f nd ng o the ple ent t on o the

EPa w ll e n te o v ety o

so ces. P nc p l ong these e

the CarifOrum reg on l ind c t veP og e (CriP), N t on l ind c t ve

P og es (NiPs), the Eu me be

St tes a d o T de (a T) cont b t ons

nd the Seventh f ewo k P og e

(fP7). Both the CriP nd NiPs e

nded o the EC th o gh the

E ope n Develop ent f nd. The 10th

CriP h s n lloc t on o 165 ll on

o wh ch 70 ll on s ese ved o

d ect EPa ple ent t on. The CriP s

co ple ented by NiPs n be o

wh ch ent l nd ng s ppo t ve o EPaple ent t on. fo ex ple, the 289

ll on NiP o the Do n c n rep bl c

oc ses on enh nc ng co pet t veness

wh le th t o jo sh e o the 80

ll on J c n NiP t gets t de

develop ent. These envelopes o

n nc l ss st nce to CarifOrum e

dd t on l to c ent EC nd ng o the

dj st ent n jo C bbe n nd st es

s ch s s g , b n n , nd ce.



Tese provisions are designed to avoid and settle disputes that may arise between the EC and its member states and the CARI-FORUM states

ChAPtER 1ARBItRAtION PROCEDURE

Dispute resolution is facilitated within three tiers

Consultation Mediation

Arbitration

ChAPtER 2COMPLIANCE

In the event that the EC Party is successful in a dispute,sanctions can only be imposed on the individualCARIFORUM State or States which have been ound to be in

breach o the EPA. Europe must exercise restraint in imposing such sanctions

and in seeking trade compensation rom the CARIFORUMStates. here is no corresponding CARIFORUM obligation.

ChAPtER 3COMMON PROVIsIONs

Dispute settlement provisions of the EPA are without

prejudice to any action in the W O ramework, including

dispute settlement action;

Where the EC Party or a CARIFORUM State has started thedispute settlement process with regard to a particular issueunder the Dispute settlement proceedings o either the EPAor the W O, that Party may not start new dispute settlementproceedings in another orum until the irst proceeding hasbeen determined.

Tese provisions stipulate the circumstances in which CARI-FORUM or Europe may derogate rom the rules under the EPA.Such derogations would only be permitted i they are grounded actually on one or more o several speci ed matters and donot constitute disguised restrictions on trade or are applied ina discriminatory matter. Te EPA does not prevent the imple-

Part IV General Exceptionsmentation o national (or as the may be, regional) measures toprotect: public morals; public security, human, plant or animal health and li e. Te EPA does not prevent the implementation o measures by CARIFORUM or Europe to prevent tax evasion or tax avoidance.

Part III Dispute Avoidance and Settlement


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Tese provisions acilitate the establishment o institutionsvested with speci c responsibilities essential to ensuring that theobjectives o the EPA are met. Tey are modelled on the structure

o Cotonou Institutional Provisions and present a structure o governance with which the CARIFORUM States are amiliar.Tey are as ollows:

he Joint CARIFORUM-EC Council: Highest institution Will meet at Ministerial level at regular intervals not

exceeding two years Is vested with responsibility to supervise the imple-

mentation o the EPA May take decisions concerning any aspect o the agree-

ment as jointly agreed by CARIFORUM and the EC.

he CARIFORUM-EC rade and Development Committee Second highest institution Assists the Joint CARIFORUM-EC Council Vested with speci ic responsibilities vital to ensuring

that all matters a ecting the partnership are resolved

in an expeditious manner and that the developmentdimension o the EPA is ul illed.

he CARIFORUM-EC Parliamentary Committee Comprised o representatives rom the European

Parliament and the legislatures o the CARIFORUMStates

Facilitates meeting and exchange o views o theserepresentatives on the implementation o the EPA

he CARIFORUM-EC Consultative Committee Designed or the engagement o civil society in the

EPA implementation process. Composition to be determined by the Joint

CARIFORUM-EC Council

None o these Institutions involve supra-nationality or theceding o sovereignty o the CARIFORUM States or the EU.Governments on both sides have only jointly agreed to delegateauthority on issues relating specifcally to the implementationo the EPA to these institutions.

Part V Institutional Provisions


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Tese provisions express nal arrangements tobe acilitated.

From the signature of the EPA CARIFORUMstates are obliged to extend to each other any advantage that is extended to Europe:

With immediate e ect between CARICOMand the Dominican Republic on all dutiesattracting zero rated duty;

Within 1 year between More DevelopedCountries (MDCs) o CARICOM and the

Dominican Republic on all other goods; Within 2 years between Less Developed

Part VI General and Final Provisions

ABOUt Us

Our Vi ion

C bbe n Expo t s c t lysto eg on l econo c p ospe ty

th o gh st teg c nte vent onson t de develop ent nd

nvest ent p o ot on

Our Mi ion

To nc e se the co pet t venesso C bbe n co nt esby p ov d ng q l ty t dedevelop ent nd nvest entp o ot on se v ces th o ghe ect ve p og e exec t on

nd st teg c ll nces.

Ke Re ul Area and goal

Fostering an enabling environment o t de nd

nvest ent w th n the eg onth o gh eg on l nteg t on,coope t on nd dvoc cy

n t t ves des gned to pos t onthe eg on o e e ect vely n thewo ld econo y.

Enhancing Competitiveness inc e se the co pet t veness o

s n CarifOrum co nt esn selected secto s th o ghnvest ent, n ge entnd p od ct develop ent,

ket exp ns on nd expo td ve s c t on.

Promoting Investment P o otethe C bbe n eg on s p edest n t on o nt nd ext -

eg on l nvest ent.

Strengthening Institutional Capacity and Networking Enh nce the c p c ty o p bl c

nd p v te secto BSOs,

p t c l ly secto ssoc t ons,t de p o ot on o g n s t ons

nd nvest ent p o ot ongenc es, nd s ppo t the

develop ent o v b ntC bbe n b s ness netwo ks to

p ove se v ces to cl ents.

Countries (LDCs) o CARICOM and thDominican Republic on all other goods;

Market access and trade as covered in all areasunder the Agreement are acilitated betweenthe Outermost Regions o Europe.

Provides for the possibility of revising the EPA inorder to:

include the Overseas Countries anderritories (OC s) associated with the

European Community; adjust to the pending expiration o the

Cotonou Agreement in 2020; broaden and supplement the scope o the EPA.

t i tradewin i a join publica ion of e Caribbean Expor Developmen A enc(Caribbean Expor ) and e Caribbean Re ional Ne o ia in Mac iner (CRNM).

sub Re ional Office

C lle C los Lo No. 9

Ens nche Los rest do es

S nto Do ngo

DOmiNiCaN rEPuBLiC

Tel: +1 (809) 531-2411

f x: +1 (809) 473-7532

E- l: c.expo [email protected]

head Office

m t l B ld ng, H st ngs m n ro d,

Ch st Ch ch, BB15154

Mailing Address

P.O. Box 34B, B ttons H ll Post O ce,

St. m ch el, BB14000, BarBaDOS

Tel: +1(246) 436-0578

f x: +1(246) 436-9999

E- l: n o@c b-expo t.co

We e ve y nte ested n yo eedb ck. Ple se e l yo co ents to t dew ns@c b-expo t.co .

all te l copy ght 2009 C bbe n Expo t.

Website: www.carib-export.com

Caribbean Re ional Ne o ia in

Mac iner (CRNM)

3 d floo , the m t l B ld ng

H st ngs m n ro d, H st ngs,

Ch st Ch ch

B b dosTel: (246) 430-1670

f x: (246) 228-9528

Caribbean Expor Developmen A enc

Documents

TradeWins - Overview of the CF-EC Economic Partnership Agreement (EPA) Vol.1 June2009