THE CARIFORUM-EU ECONOMIC PARTNERSHIP AGREEMENT IN A NUTSHELL

Barbados Private Sector Trade Team Workshop Breaking the Barriers Down: Welcoming the Brands of Barbados Conference Room of the BCCI/BEC, Barbados 5 April 2012

www.crnm.org

Dr Chantal Ononaiwu, Trade Policy & Legal Specialist

INTRODUCTION
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The Economic Partnership Agreement (EPA) between the 15 CARIFORUM States and the EU and its 27 Member States provides a comprehensive framework for trade and investment and related cooperation between the regions.

INTRODUCTION
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The EPA is wide-ranging and covers:

trade in goods trade in services, investment and e-commerce trade-related issues competition policy, innovation and intellectual property, government procurement, labour, environment, personal data protection

Overviews of the EPA and key parts of the Agreement are readily accessible (see e.g. Guides by CRNM and Barbados EPA Implementation Unit)

INTRODUCTION
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Focus of the presentation is on opportunities the EPA affords Barbados manufacturers to develop their businesses through trade, owing to:
Preferential access of CARIFORUM exports to the EU market Cooperation on customs procedures and trade facilitation Consultation and cooperation on SPS and TBT-related issues Cooperation on promoting innovation and competitiveness of CARIFORUM firms Market access for investors establishing a commercial presence Temporary entry of business persons in the EU

THE EPA
Key Features

Preferential Access of CARIFORUM Exports to the EU Market

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EPA provides for duty-free quota-free access for all CARIFORUM products to the EU market (including the French Caribbean Outermost Regions) Rules of origin permit cumulation, i.e. goods can qualify as originating in the CARIFORUM States if they incorporate materials from the CARIFORUM States, EU Overseas Countries and Territories, other ACP countries and neighbouring Latin American countries

Preferential Access of CARIFORUM Exports to the EU Market

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Rules of origin afford Barbadian manufacturers exporting to the EU scope to source inputs from other countries (some of which have preferential trade agreements with CARICOM)

Opportunities for investment from/partnerships with firms seeking to capitalise on preferential access of CARIFORUM goods to the EU market

Improving Customs Procedures and Trade Facilitation in CARIFORUM States

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EPA provides for technical cooperation and assistance on

modernisation of customs techniques introduction of procedures and practices reflecting international standards automation of customs and trade procedures

Recognition of the need for the business community to be engaged in this process of reform

timely and regular dialogue with firms on legislative proposals advance notification of new or amended legislation and procedures cooperation between firms and administrations, e.g. via MOUs

Improving Customs Procedures and Trade Facilitation in CARIFORUM States

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Potential to harness EPA-related assistance to support governments initiatives to simplify and modernise customs procedures, which can enhance the trade environment and reduce business costs for manufacturers Essential for the private sector proactively engage in the reform process

Consultations and Cooperation on SPS and TBT-related Issues

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The EPA provides for:

Consultations

between the Parties to solve specific SPS problems or problems related to technical measures that may affect CARIFORUM-EU trade Collaboration between the Parties to enable specific products to meet technical regulations and standards required to access the EU market Cooperation to develop the capacity of CARIFORUM enterprises to meet regulatory and market requirements in the EU

Promoting Innovation and Competitiveness of CARIFORUM Firms

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Specific emphasis on increasing the competitiveness of the agricultural, food and fisheries sectors through innovation, training and promotion of linkages Provision for participation of CARIFORUM enterprises in the EUs framework programmes Provision for cooperation in the areas of
competitiveness and innovation science and technology information society and ICT Eco-innovation and renewable energy

Market Access for Investors

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Barbados committed to grant market access to EU investors establishing a commercial presence in manufacturing (including through capital participation in local enterprises) Barbadian investors wishing to set up a commercial presence in the EU (including to provide related or auxiliary services) also afforded access

Temporary Entry of Business Persons

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Provision for temporary entry of employees of Barbadian firms setting up a commercial presence in the EU to work in the commercial presence there (business visitors, intra-corporate transfers, graduate trainees) Opportunities for Barbadian entrepreneurs to enter the EU on a short-term basis for business purposes, e.g. negotiating or concluding sales agreements, market research, trade fairs, exhibitions

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Harnessing the Opportunities of the EPA

Harnessing the Opportunities of the EPA

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Manufacturers seeking to export to the EU must enhance their understanding of the EU market consumption profiles of EU Member States and requirements for supplying goods to these markets Export-oriented manufacturers should develop contacts and seek out market opportunities in the EU, using facility for short term visitors for business purposes

Harnessing the Opportunities of the EPA

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Manufacturers looking to export to the EU should explore viability of sourcing inputs from countries covered by cumulation provisions of the Rules of Origin Manufacturers and the BMA must work closely with the EPA Implementation Unit, including to assess their needs and those of the sector and submit requests for technical assistance

THANK YOU
chantal.ononaiwu@crnm.org www.crnm.org

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