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TRADE AGREEMENTSTRADE AGREEMENTS 101Natallie Rochester-Kingwww.crnm.org
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Implications of TradeImplications of Trade Agreements for Service Providers
Implications of Trade Agreements for Services Providers
Presentation Outline3
CARICOM Network of Services Trade Agreements What is negotiated in an agreement on trade in services ?Pros & cons for local services suppliersHow can CARICOM services suppliers influence negotiations?How can CARICOM services suppliers take advantage of How can CARICOM services suppliers take advantage of trade agreements?Checklist- what services suppliers need to know
Implications of Trade Agreements for Services Providers
Checklist what services suppliers need to know
CARICOM Network of Services T d Ag t
4Trade Agreements
CARICOM Single Market & Economy CARIFORUM EC EPA CARIFORUM-EC EPA World Trade Organisation (GATS) Built in agendaCARICOM C Ri / SICACARICOM-Costa Rica/ SICACARICOM Cuba CARICOM-Dominican Republic FTA
Implications of Trade Agreements for Services Providers
BACKGROUND5
Services classified using internationally agreed systems (UN CPC) Approach to listing – positive, negative, hybridPositive list separates four modes of supply of services
M1 Cross Border Services M2 Consumption AbroadM3 Commercial Presence/Establishment M4 Movement of Natural Persons
Commitments on market access & national treatment listed in a schedule Provisions on Definitions,Objectives,Scope & Coverage,Exceptions, Regulation, Cooperation, Future Liberalisation, Dispute Settlement A b il i d i i f h Agreement can set out a built-in agenda e.g. negotiation of other areas, specific cooperationWTO obligations affect the scope of bilateral agreements
Implications of Trade Agreements for Services Providers
What is negotiated in an agreement on trade in services ?
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trade in services ?
KEY PRINCIPLESMOST FAVOURED NATIONAL TREATMENT
Extension of most favourable treatment of services & suppliers of any other Member/ nation to like services & services suppliers of a Member/ the other Party (WTO automatic EPA – linked to major Member/ the other Party (WTO - automatic, EPA – linked to major trading economy & EC has option)Some Members listed MFN exemptions in WTO
BILATERAL ECONOMIC INTEGRATION (GATS Article V)Some WTO Members can grant each other better treatment in an economic integration agreement if there is inter alia:economic integration agreement if there is inter alia:
substantial sectoral coverage, removal of discriminatory measures, standstill notification of agreement and of any changes to WTO schedule to inform other Members with market interests
Implications of Trade Agreements for Services Providers
What is negotiated in an agreement on trade in services ?
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trade in services ?
MARKET ACCESS
Limitations & conditions agreed & listed in Schedule and granted on MFN basisgranted on MFN basisTypes of limitations & conditions M1 - requirement for local presence (M3); local mandatory
standards on software standards on software M2 – no insurance portability for hospital services M3- numerical quotas, ENTs, residency/ nationality/ legal form/local
equity requirement limits on transaction value access to equity requirement, limits on transaction value, access to infrastructure for services supply
M4 – work permits, labour market test, quotas
Implications of Trade Agreements for Services Providers
What is negotiated in an agreement on trade in services ?
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trade in services ?
NATIONAL TREATMENTN ON M NA Member/Party is obliged to grant treatment no less favourable than that accorded to its own like services & services suppliers (or in like circumstances) in respect of measures affecting the supply of services … i bj t t h d l d li it ti & ditii.e. subject to scheduled limitations & conditions
Formally identical or formally different treatment should not affect conditions of competition in favour of national services suppliersconditions of competition in favour of national services suppliers
Restrictions and conditionsM1 hi h il d dM1 – higher taxes on mail order goodsM2 – discriminatory currency controls for visitorsM3- joint venture / different capital/ local employment/ firm name
requirements
Implications of Trade Agreements for Services Providers
requirementsM4- nationality/residency/ licensing/ qualifications requirement
Pros & Cons of trade agreements for services suppliersservices suppliers
Legal commitment to allow services supply in mkt standstill on barriers
Commitments in related areas e.g. IP, Competition, supply in mkt, standstill on barriers
Better access to partner markets than other countries3rd country investment attraction tool
e.g. , Co pe o , E-commerce, Data ProtectionSettlement relevant disputesRegular Review 3 country investment attraction tool
Investors/personnel allowed for establishment in new mktTransparency of regime in partner mkt
/
Regular Review Low services supply capacity Limited knowledge of markets Potential mismatch of services (MA/NT granted, notifications, enquiry
points)Clear basic principles for regulationT h i l ti / i t
Potential mismatch of services supplied & market access secured Increased competition in domestic
k t Technical cooperation/assistanceConsultation & dialogue with other side on related issuesOther cooperation e g advance notice
market Inadequate regulation for sectors opened Low admin capacity to fulfil Other cooperation e.g. advance notice
of travel advisoriesLow admin capacity to fulfil obligations
How can services suppliers i fl g ti ti ?
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Form associations at the sector level (nationally and
influence negotiations?
regionally) & take advantage of CSI networkConduct research on partner markets & new market prospects p pDevelop sector growth strategies Determine negotiating position based on sensitivity & need for in estment need for investment Prepare position papers to feed into decision/policy making & improve advocacy Participate in Technical Working Groups through regional representative associations
Implications of Trade Agreements for Services Providers
How can services suppliers take d t g f t d g t ?
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K & l i i l d &
advantage of trade agreements?
Know & analyse outcomes in main sector, related sectors & other relevant areas e.g. IPImprove knowledge of partner countries & target marketsImprove knowledge of partner countries & target marketsDevelop strategies for using trade and cooperation commitments in agreementsgMonitor, evaluate, influence & participate in institutions created to implement agreementAssess real impact of the agreement regularly
Implications of Trade Agreements for Services Providers
Services Suppliers Need to Know …12
Services Suppliers Need to Know …
What services are demanded in partner markets?pAre these trends expected to change?What can/could you supply?/ y pp yAre you/could be a competitive supplier?What policies, supportive services or infrastructure p , ppdo you/would you need?What are the barriers to services trade in partner markets in sectors of interest ?
Implications of Trade Agreements for Services Providers
USEFUL LINKS
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Office of Trade Negotiations, CARICOM Secretariat - www.crnm.orgOffice of Trade Negotiations, CARICOM Secretariat www.crnm.org
United Nations Central Product Classification (UN CPC) - http://unstats.un.org
Text of Trade Agreements of American States www.sice.oas.org
WTO Services Gateway - http://www wto org/english/tratop e/serv e/serv e htmWTO Services Gateway - http://www.wto.org/english/tratop_e/serv_e/serv_e.htm
Canada DFAIT http://www.dfait-maeci.gc.ca/international/index.aspx
Dominican Republic Chamber of Commerce - http://www.camarasantodomingo.org.do/
European Commission http://ec europa eu/trade/European Commission - http://ec.europa.eu/trade/
MERCOSUR - http://www.mercosur.int/msweb/Portal%20Intermediario/
United States Trade Representative - www.ustr.gov
United States International Trade Commission www usitc govUnited States International Trade Commission - www.usitc.gov
Implications of Trade Agreements for Services Providers
Thank You14
Please visit our Website:
http://www crnm orghttp://www.crnm.org
C t tContact:Mrs. Natallie Rochester-King
Technical Advisor, Services,
Tel: +1876 908 2063 Fax: +1876 754 2998
Implications of Trade Agreements for Services Providers