Regional Media Workshop on the CARIFORUM EU Economic Partnership Agreement (EPA)

Transcription

1 Regional Media Workshop on the CARIFORUM EU Economic Partnership Agreement (EPA) Regional Services and Investment implementation initiatives Grenada November, 2012 S. H. Allyson Francis Trade in Services & Investment Specialist EPA Implementation Unit, CARIFORUM Directorate 1

2 Outline EPA Objectives Time lines Regional Implementation Unit Setting the right environment Implementation Initiatives/Achievements Challenges Opportunities Next steps/way forward

3 The EPA Objectives Reduction & eventual eradication of poverty through trade partnership; Promoting regional integration, economic cooperation and good governance; Promoting the integration of CARIFORUM (CF) States into the world economy; Support for increasing investment & private sector initiative; and Strengthening relations taking into consideration levels of development and int l obligations

4 Ratification CARIFORUM Antigua & Barbuda Belize Dominica Dominican Republic Guyana EU Malta Slovakia Spain Sweden United Kingdom - Greece - Denmark - Lithuania - Italy - Finland

5 Timelines Upon signature 20 th October, 2008 Upon Provisional application 29 December, 2008 No later than six months after provisional application

6 Implementation Unit Unit Staff Trade in Goods Specialists Trade in Services and Investment Specialist Legal Officer Private Sector Specialist Public Information and Education Specialist Administrative Officer Following the draft Road map Development of a Regional work plan on implementation All institutions except the consultative committee has been fully established CARIFORUM-EC cooperation and regional CARIFORUM integration

7 Perspectives Mandate Facilitate implementation Difference in Services trade Setting the right environment Policy & Regulatory framework Role of the media Raising awareness

8 Implementation initiatives/achievements Aspects of the Regional Work Plan (Services & Investment) Situational analysis conducted basis for actions Matrix developed, circulated and States consulted on status of implementation, challenges faced, actions needed to meet requirements (Consider needs in legal framework, administrative policy, Institutional mechanisms/structure, human resources, training, equipment, organization, change management) and the estimated cost. Facilitated the development of national work Plans Monitoring and evaluation

9 Implementation initiatives/achievements Draft National Serviced and Investment implementation plans Developed Provide the basis for strategic national and regional initiatives Regional Workshop conducted drafts developed Working with States to develop National EPA implementation plans Policy framework to grant Market Access and National Treatment in selected areas developed - Tourism, Financial Services, Maritime and Yachting, ICT, Education, Culture, hazardous waste and Health and Wellness developed Developed work plan for funding under the 10 th EDF Analysis conducted to determine new areas of liberalisation under the EPA may need to address many more sectors

10 Implementation initiatives/achievements (cont.) Regional Preference addressed Consultancy launched, report circulated. Meeting to be held Nov Facilitate regional integration Relationship between CARICOM & the Dominican Republic (DR) clarity to operators Relationship with the Bahamas and Haiti Draft agreement on Services and Investment between CARICOM and the DR

11 Implementation initiatives/achievements (cont.) Advice given on the granting of Market access and National Treatment Provided guidance to States for their analysis towards the developments of the requisite policy and legislation to grant MA and NT. Conducted regulatory assessment in most CF States MDCs - Information and Communication Technology Services, Transportation Services, Professional Services and Tourism. Conducted Analysis of new sectors liberalised Advice on Most Favored Nation Principle given Train specialists to monitor other FTA and address granting AND receipt of MFN to service providers Advice given during negotiations of CARICOM Canada Trade and Development Agreement

12 Actions taken on Architecture & Engineering Mutual Recognition Agreements Facilitate operations between EU and CF Architects, Engineers, Accountants and Tourism professionals A mission to France, Belgium and the UK to promote interaction with architectural associations in Europe successfully organized; Caribbean Architects Mutual Recognition Committee (CAMRAC) involvement within the negotiation of a strengthened MRA; Improve the CARIFORUM architects capacity to develop inputs in view of the preparation of MRA negotiation;.

13 Actions taken on Architecture & Engineering MOU between the Architects Council of Europe (ACE) and Architects of CARIFORUM the Caribbean Architects Mutual Recognition Agreement Committee (CAMRAC) was established to prepare and negotiate the MRA with Europe CARIFORUM Engineers have formed a regional working group to coordinate internal preparations for discussions with counterparts 2010 projects - prospects for the negotiations of Mutual Recognition Agreements (MRA) of Professional Qualifications for Engineers as well as for Architects between the EU and CARIFORUM. Need to address regulatory differences between CF & EU Institutional strengthening of CF professional assoc & registration bodies

14 Achievements/iniatives Identification of specific actions required of CARIFORUM architects, regulatory agencies and Government to promote the integration of the profession in the region and to create the conditions for a successful negotiation and implementation of the results Consultations undertaken with Caribbean Architect Mutual Recognition Agreement Committee (CAMRAC). Work plan discussed for national consultations Facilitating national consultation address the minimum criteria for the licensing and registration of architects which will form the basis of the Intra-Regional MRA, determine the most efficient way of generating the internal MRA and to review national legislation and policy matter.

15 Implementation initiatives and achievements Article 74 Investment review undertaken Provided States with better knowledge and understanding on investment issues in the EPA and what has to be done to better facilitate investment Completed consultancy, report circulated, working with CAIPA on implementation of some of the findings The EPA provides a comprehensive framework to improve the flow of investments between EU and CARIFORUM countries; the EPA has not played a significant role to date in fulfilling its purposes; There is little awareness of EPA - FDI tied advantages among the private sector in CARIFORUM countries and within the EU EPA is an effective instrument of bilateral trade and investment between CARIFORUM and EU lack of knowledge impacts

16 Implementation (cont.) Movement of Natural Persons Mechanism to address the ENT Collection of data; thorough assessment of what policy is in place for temporary entry; and what labour market test is in place (national & regional) Funding obtained through the OAS project to conduct analysis Clarity on requirements for entry and access Relationship with Revised Treaty of Chaguaramas Determine issue with the EU Effect given to the definitions & terms for Temporary presence Areas for CSS and IP identified Sensitization of all stakeholders on legal requirements for temporary movement Training seminars with immigration & labour officials

17 Temporary Movement of Natural Persons CARICOM Requirements Establishment of the Competent Authority Free Movement Committee Free Movement of Skills Department/Desk National Accreditation Body Implement relevant procedures at point of entry Domestic regulations vary in Member States; Need for convergence; Registration Accreditation Mutual recognition

18 Temporary Movement of Natural Persons Not migration can help to manage Temporary - essential to provide assurances Knowing unemployment rate Skill set in States what skills are needed - quotas Certification procedures Facilitating repatriation collaboration with source countries Visa requirements screening/profiling where no visa req. Benefits for specialisation, efficiency and competition Compliments investment Knowledge transfer Brain drain Wage disparities

19 Development of Modalities for Exchanges and Consultations on Tourism Services In accordance with Article 118, the following modalities for the regular dialogue on Tourism matters between CARIFORUM and the EU were presented CARIFORUM and the EU should undertake to relay information about any activity that falls under the areas of cooperation to the other side to enable appropriate action to be taken; CARIFORUM and the EU should undertake to conduct biannual exchanges; The forms of exchange should include Business-to-business (face-to-face) interactions; Access to websites; Notification of projects and activities; Transmission of information through the national coordinators.

20 Development of Modalities for Exchanges and Consultations on Tourism Services The forms and content of information exchange and consultation shall in particular be the matters listed below, but not limited to Sources of funding for tourism development; Tourism, aviation and taxation; The participation of CARIFORUM services suppliers in financing programs to support the sustainable development of tourism; Tourism, education and social development; Undertaking joint CARIFORUM missions to attend trade fairs in Europe Information and guidance to improve the industry s environmental performance, both to reduce utilities costs and to become more attractive and competitive as a green destination; The development of environmental and quality standards; Tourism, the environment and climate change;

21 Tourism initiatives Environmental Management Certification Systems - Reaping More Benefits for the Tourism Sector - develop recommendations and a detailed action plan for the implementation, of more cost effective and efficient environmental management certification systems, by the various tourism entities, taking into consideration the differing natural environments within and across Member States. Development of internet marketing strategy for small and medium-sized tourism enterprises in CARIFORUM States - increase global awareness of the Caribbean tourism brand through impactful internet marketing initiatives, while also improving the revenue received by participating properties.

22 Cultural exchange & dialogue The modalities should provide for - Information exchange on key organisations to engage with including sources of financing for international projects and programmes; The establishment of a helpdesk by CARIFORUM and the EU, respectively, that will be the central entity dealing with the development and dissemination of information; the help desk can serve as a Cultural portal and provide information on: Market access requirements for all EU Member States for all services sectors, both legislation, non-legislative requirements; Regulatory framework in place in each Member State for the provision of the service; Access to business links will also allow for better exchange of best practices in areas such as technology and tools procurement; Sector & product surveys:

23 Culture initiatives Consultancy for the Development of a Mechanism for Streamlining the Registration of ARTISTS, Cultural practitioners AND ORGANISATIONS, taking into consideration the issues OF Classification and Certification - to develop a mechanism for streamlining the procedure for registration of artists, cultural workers and organisations by addressing in particular, the adoption by all CARICOM and CARIFORUM States to address the classification, certification and registration of these entities. CARIFORUM Prospects in the EU Markets for Entertainment - develop an action plan and strategy to allow CARIFORUM to take advantage of the prospects in the EU markets for Entertainment and to enhance the sector s competitiveness.

24 CHALLENGES OPPORTUNITIES

25 Challenges Absence of tax treaties to avoid double taxation Language Ignorance of cultural norms, customs and values Protectionist policies Meeting the right people Cost of travel Ignorance of the laws Residential status requirement in some EU States Absence of harmonisation and accreditation between institutions in CF & the EU

26 Challenges Private sector/general Small size of firms Lack of business operation in the EU Unwillingness to collaborate Need to change the mind set to exporting Need to revise, implement & enforce required legislation Lack of organization among practitioners Lack of venture capital Lack of standards & monitoring

27 Regional Challenges (Unit) Lack of data Delay in receipt of required information from Member States and sectors No information on what is actually needed to inform assistance Need for further targeted awareness building exercises to be identified Lack of sufficient funding to execute identified projects. In addition if Member States are to identify projects for services and investment it will be difficult to guide them to sources of funding.

28 Regional Challenges (Unit) Absence of harmonisation and accreditation between institutions in CF & the EU Lack of adequate legislative and regulatory provisions particularly for the professionals How do we assess the HR needs to develop an appropriate mechanism for conducting ENT

29 Opportunities Openness to foreigners Use of English Access to other markets (Also the link between the FCORs and the mainland) Pricing Positive attitude towards joint ventures/partnerships Diaspora populations Implementation of the Agreement (developing projects, bidding on projects & project management) Removal of the visa requirement for the FCORs Access to the FCORS Utilizing the expertise in the FCORS to meet standards to access the EU markets

30 Opportunities Special opportunity for joint ventures Ability to add unique value-added Some States in the region have resources and personnel to provide training in some areas Promoting investment to increase demand Real niche market due to unique value-added Development of Co-production agreements Joint ventures can facilitate operation in the sector Provision of specialized/expert advice

31 Country specific opportunities based on Biz Clim report for the CRNM Estonia - society is relatively open, receptive to foreigners and partnerships; ability to penetrate nearby States such as Scandinavian and Baltic markets; good business linkages with persons from organisations that are prepared to facilitate matchmaking missions. France - Somewhat closed to foreign service providers, the language and legal barriers opportunities based on lower costs joint ventures using Mode 1 (using the internet to provide back office support) and Mode 4 (joint bids on short term contracts in the EU or the Caribbean). Good opportunities for tour operators and tour guides to provide tourism services to the Caribbean Diaspora living in the UK, Spain or The Netherlands

32 Country specific opportunities based on Biz Clim report for the CRNM Germany - somewhat closed but is the largest economy in the EU; good command of English language very well; high cost society thus CF service providers to engage in partnerships which will reduce their costs e.g. in joint bids for contracts or providing support services through Mode 1 e.g. computer assisted drawings by architects and engineers or bookkeeping services for accountants Italy - Reasonably receptive to foreign visitors and service providers; costs are higher than those in CF so these could be exploited in all of the selected industries e.g. providing back office support, tours to historical sites, etc. Malta - Somewhat closed,most businesses are very small family run operations and the market is very small. The Maltese Government is encouraging its business people to seek partnerships ; opportunity to penetrate North African markets; strong business linkages with persons from the selected industries that are prepared to facilitate matchmaking missions.

33 Country specific opportunities based on Biz Clim report for the CRNM The Netherlands Promotes diversity and not averse to joint ventures;lowerr costs of service in Cariforum; willing to facilitate trade missions and matchmaking trips. Spain quite closed but opportunity for cost-based joint venture or carrying out back office and support services (using Mode 1).Spanish will be an asset. The UK Opportunities due to the diversity, the large Diaspora population living there, the historical connections, and the English language; relatively easy to establish business in the UK; can penetrate other EU markets; The Caribbean Diaspora in the UK remains relatively untapped by Caribbean services providers; cost advantages ; a U.K. trainer of trainers, funded by the EU, has conducted training courses on behalf of the Caribbean Tourism Organisation (CTO) for the Caribbean Tourist Guide industry

34 Way forward Strategic plan result oriented EPA as a tool to development What activities must be undertaken to implement the provisions What you need to know about the EU & DR market How the cooperation provisions can assist your development Do you have the relevant laws & regulations in place Is there the right environment for the efficient effect operation of your business Do you have the necessary technology Where is training required How effective is the organizational structure

35 Way forward (cont.) Implement the provisions of the CSME that will allow for the free movement of Service Suppliers; Registration, Certification, Recognition & MR Developing and enhancing the environment for trade in Services Determine the sectors of interest for exporting Greater collaboration/coordination between Ministries and agencies The role of the media How do non-nationals operate in the market

36 Way forward (cont.) Continue to work with States on the finalization of their work plans and the execution of projects highlighted therein. Continue to work with national coordinators/implementation units to determine their needs Continue to look for alternative sources of funding to execute plans at the national and regional level as identified in the work plans

37 Thank you S. H. Allyson Francis Trade in Services and Investment Specialist Economic Partnership Agreement (EPA) Implementation Unit