DOCSLIB.ORG

1 Status and Development Issues of the EC-CARIFORUM EPA

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
1 Status and Development Issues of the EC-CARIFORUM EPA Status and Development Issues of the EC-CARIFORUM EPA Negotiations Ambassador Dr. Richard L. Bernal Director General, Caribbean Regional Negotiating Machinery Address to the Committee on Economic Development, Finance and Trade of the ACP-EU Joint Parliamentary Assembly of EU-ACP Parliamentarians Sherbourne Conference Centre, Bridgetown, Barbados, 18 November 2006 Let me place on record my appreciation for the opportunity to address the ACP Parliamentary Group on the CARIFORUM-EC Economic Partnership Agreement (EPA) negotiations. This meeting is taking place immediately before the two regions commence the final engagement in the penultimate phase of the EPA negotiations and just before the formal and comprehensive review the EPA negotiations mandated in Article 37.4 of the Cotonou Agreement. This session therefore comes at a critical juncture in the EPA negotiations. I will briefly outline the current status of the negotiations for a CARIFORUM-EC Economic Partnership Agreement and discuss the issues, which have emerged in these negotiations. STATUS OF THE NEGOTIATIONS The ACP-EU Partnership Agreement (Cotonou Agreement), signed in Cotonou in June 2000, establishes a comprehensive framework for future ACP-EU relations. The core objectives of the partnership are economic development, the reduction and eventual eradication of poverty, and the smooth and gradual integration of ACP States into the world economy. These objectives are envisioned to be achieved by the conclusion of new WTO-compatible Economic Partnership Agreements (EPAs) between the ACP and the EU. Negotiations would be conducted during the period September 2002 and late 2007 to allow the EPAs to come into effect on 1st January 2008. The process began as scheduled with discussions at the ACP-EC level and the CARIFORUM-EC negotiations were launched on April 16, 2004. The Plan and Schedule, jointly agreed by CARIFORUM and the EC to launch stated that an EPA between CARIFORUM countries and the EC should contribute to realising the following broad objectives: 1. Promotion of economic development that is socially and environmentally sustainable; 2. Enhancement of the ability of small Caribbean states to play a more meaningful role in the international community; 3. Facilitation of Caribbean structural transformation leading to a reduction in the region’s acute economic vulnerability and 4. Assist the adjustment of Caribbean economies in a manner and at a pace that is conducive to overall economic and social development. The principles to guide the EPA negotiations express the means of attainment of the objectives. These include (1) promote sustainable development, (2) complimenting and advancing the region’s already ongoing integration, (3) special & differential treatment for 1 small and vulnerable CARIFORUM countries, (4) application of an asymmetrical approach to trade liberalisation (5) enhancement of international competitiveness and (6) assisting in capacity building by synchronizing the delivery of development cooperation with the process of trade liberalization and the adjustment. The negotiations between the EU and CARIFORUM have adhered to the agreed schedule. There has been progress in a wide range of issues and specific disciplines which reflects a sense of common purpose and a genuine spirit of constructive engagement. However there are persistent divergences indicative of philosophical differences. At this time the process is at a critical conjuncture because there are several fundamental issues which must be resolved. The opportunity to achieve resolution and continue the momentum is the series of negotiations which culminate in a ministerial meeting 29-30th November 2006 in Brussels. If these meetings do not resolve the outstanding issues it would put in jeopardy the completion of the negotiations within the agreed schedule. A delay in the completion of the negotiations will raise the question of a renewal/extension of the WTO waiver. Recent experience at the WTO demonstrates that it is increasingly difficult to secure waivers. Delays would extend the period of negotiations and increase the cost of the negotiations in human and financial resources. This would be very onerous for the small states of the CARIFORUM. Since April, 2004 there have been 6 rounds of negotiations at the level of Principal Negotiators and 7 meetings of the technical negotiators as well as Ministerial encounters. These engagements are serviced by an extensive programme of consultative meetings in the CARIFORUM region and technical work by the Caribbean Regional Negotiating Machinery and other regional organizations. CARIFORUM is committed to and will endeavour to forge an EPA within the schedule prescribed by the Cotonou Agreement and the terms of the WTO waiver. This commitment will be vigorously pursued but not at any cost. The negotiations will only be completed when CARIFURUM is satisfied that there is a development promoting EPA appropriate to its goals and circumstances supported by adequate development cooperation. Spokespersons for other ACP regions have alluded to or called for an extension to the EPA negotiation schedule. The position of the CARIFORUM in no way is prejudicial to the deliberations on this question by the Joint Review of EPA. ISSUES TO BE RESOLVED There are four major issues where there are divergent views. These need to be resolved in the negotiations later this month if the EPA negotiations are to proceed on schedule. These issues are: A. REGIONAL INTEGRATION This is an area of long-standing difference between CARIFORUM and the EC and one of the most important issues to be settled. There is a strong conviction on both sides that one of the key objectives of an EPA is to strengthen the CARIFORUM regional integration process, however different perspectives 2 persist over the eventual regional configuration and pace of integration. This has implications for the nature of the commitments, which will be assumed on the CARIFORUM side. 1. Variable Geometry of Regionalism In the negotiating sessions to date, the EC has sought to persuade CARIFORUM to pledge to establish regional arrangements which could assume common commitments in all disciplines, including market access schedules, SPS and TBT regimes, services, investment, government procurement, intellectual property, competition policy and dispute settlement mechanism. CARIFORUM’s approach to the regional economic space is that of a variable geometry which recognizes differentiation. The CARIFORUM position is based on the fact that there is no intention at this time to create a common economic space such as that provided by a customs union. The CARIFORUM-EC EPA must therefore take account of the reality of the co-existence of 3 streams of economic regionalism: namely (a) the Caribbean Single Market and Economy (CSME) involving 12 countries, (b) the CARICOM-Dominican Republic Free Trade Agreement (FTA) and (c) the Bahamas which is not currently a participant in either of these arrangements but is a member of the Caribbean Community. Within the CSME the Organization of Eastern Caribbean States enjoy certain derogations and Haiti is yet to assume full commitments the CSME. The CARIFORUM negotiators have repeatedly reiterated the principle of “variable geometry” because (a) it is the existing situation with respect to the region’s economic space, (b) it reflects the differences scope and the extent of implementation between the CSME and the CARICOM-Dominican republic FTA and (c) recognition that there is no contemplation at this time of creating a seamless economic space among CARIFORUM countries. It should be recalled that Article 28 of the Cotonou Agreement states “Cooperation shall provide effective assistance to achieve the objectives and priorities which the ACP States have set themselves”. An EPA must not re-shape ACP integration schemes but reinforce them while respecting their integrity. In response, and to its credit, the EC has dropped its proposal that CARIFORUM configure itself as a customs union as the basis for assuming EPA commitments. The EC nevertheless, has continued to stress that optimal levels EU development support could be realised only when CARIFORUM moves in the direction of constituting itself as a single seamless economic space. B. DEVELOPMENT The overarching objective of the CARIFORUM-EC is the promotion of sustainable economic development. All concerned with EPA must disabuse themselves of the notion an EPA should have a development dimension because this does not sufficiently recognize the centrality of development. To ensure that development infuses all aspects of the EPA, CARIFORUM has secured EC agreement to inserting a development chapter. Despite this concurrence one of the principal issues on which CARIFORUM and EC negotiators differ is how to make the EPAs development promoting instruments. While both parties share a common objective that the EPA should be a tool for CARIFORUM development, they advocate very different paths towards the ultimate goal. Three issues urgently require resolution: 3 1. Divergent Concepts The EC views development as a process that is driven by strengthened regional integration and trade liberalization, coupled with more stringent trade and investment rules, and accompanied by EU support for trade-related capacity building measures. This view of development does not give sufficient attention to the various structural deficiencies and supply-side rigidities that afflict small vulnerable economies. The challenges facing CARIFORUM are further exaggerated
Load more

Recommended publications
  • CARIFORUM-UE 3651/18 1 the Fourth Meeting of the Joint
    CARIFORUM-EU Brussels, 6 November 2018 ECONOMIC PARTNERSHIP AGREEMENT CARIFORUM-UE 3651/18 MINUTES Subject: Minutes of the Fourth Meeting of the Joint CARIFORUM-EU Council, held on 17 November 2017 in Brussels, Belgium The Fourth Meeting of the Joint CARIFORUM-EU Council (referred to hereafter as 'the Joint Council') took place in Brussels, Belgium, on 17 November 2017. The Joint Council was chaired on behalf of the European Union jointly by Mr Sven MIKSER, Minister of Foreign Affairs of Estonia, who represented the Council of the EU, and by Ms Cecilia MALMSTRÖM, European Commissioner for Trade. Ms Kamina JOHNSON SMITH, Minister of Foreign Affairs and Foreign Trade of Jamaica, served as CARIFORUM High Representative. CARIFORUM-UE 3651/18 1 EN 1. OPENING OF THE MEETING The Co-Chairs welcomed the participants to the Meeting. The list of participants is set out in Annex 1 to these Minutes. 2. ADOPTION OF AGENDA The Joint Council adopted the agenda as set out in document CARIFORUM-UE 3651/1/17 REV 1, as set out in Annex 2 to these Minutes. 3. PROCEDURAL MATTERS The Joint Council agreed on the procedures for conducting its business. 4. IMPLEMENTATION PROGRESS REPORT BY THE CARIFORUM-EU TRADE AND DEVELOPMENT COMMITTEE The Joint Council took note of the oral progress report by the EU on the Seventh Meeting of the CARIFORUM-EU Trade and Development Committee (TDC), held on 15 November 2017 in Brussels, Belgium. The progress report is set out in Annex 3A to these Minutes. The essence of the reaction by the CARIFORUM High Representative is set out in Annex 3B to these Minutes.
    [Show full text]
  • Economic Partnership Agreement Between the Cariforum States, of the One Part, and the European Community and Its Member States, of the Other Part
    Organization of American States ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE CARIFORUM STATES, OF THE ONE PART, AND THE EUROPEAN COMMUNITY AND ITS MEMBER STATES, OF THE OTHER PART Article 1 The objectives of this Agreement are: a)Contributing to the reduction and eventual eradication of poverty through the establishment of a trade partnership consistent with the objective of sustainable development, the Millennium Development Goals and the Cotonou Agreement; b)Promoting regional integration, economic cooperation and good governance thus establishing and implementing an effective, predictable and transparent regulatory framework for trade and investment between the Parties and in the CARIFORUM region; c)Promoting the gradual integration of the CARIFORUM States into the world Objectives economy, in conformity with their political choices and development priorities; d)Improving the CARIFORUM States' capacity in trade policy and trade related issues; e)Supporting the conditions for increasing investment and private sector initiative and enhancing supply capacity, competitiveness and economic growth in the CARIFORUM region; f)Strengthening the existing relations between the Parties on the basis of solidarity and mutual interest. To this end, taking into account their respective levels of development and consistent with WTO obligations, the Agreement shall enhance commercial and economic relations, support a new trading dynamic between the Parties by means of the progressive, asymmetrical liberalisation of trade between them and reinforce, broaden
    [Show full text]
  • EU Agreement on Enhanced Political Dialogue and Cooperation
    INSTITUTE FOR GLOBAL DIALOGUE a focus on current issues Issue 126/April 2016 The Implications of the Cuba -EU Agreement on Enhanced Political Dialogue and Cooperation Dr Siphamandla Zondi is the Siphamandla Zondi Head of Institute for Global Dialogue associated with Unisa Havana finds Brussels Again On Friday, 11 March 2016, the European Union and Cuba signed a historic agreement, the Political Dialogue and Cooperation Agreement (PDCA), to further improve relations that have grown slowly since the start of high-level dialogue between the two parties in 2008. This coincides with the growing rapprochement Global Insight aims to between Cuba and the US under Barack Obama, and suggests that something provide members of the deeper than meets the eye is happening in Cuba's foreign relations. policy community with concise but trenchant While this might be seen as marking the beginning of the end of an important analyses of topical issues. Comments and chapter of the Cold War global relations that remained frozen after the collapse of suggestions are invited. the Soviet Union. Relations between the West and Cuba represent a rescue of Cold War diplomacy and power relations. Whether the recent developments mark a break with this ideological quagmire and if the Cuba-EU agreement will overcome the deep-seated conditions that have frozen the relations up to this point are key questions to be debated as we discuss the future of Cuba in the world. Also crucial is to reflect on the implications of this for the Cuban model of governance and development. Repeatedly, the US intensified its efforts to bring Cuba to its knees, ensuring that the benefits of intense globalization after full-scale Cold War did not extend to this island state.
    [Show full text]
  • Latin America and the Caribbean
    LATIN AMERICA AND THE CARIBBEAN The EU’s relations with Latin America and the Caribbean are multifaceted and conducted at different levels. The EU interacts with the entire region through summits of the heads of state and government, while agreements and political dialogue bind the EU and the Caribbean, Central America, the Andean Community, Mercosur and individual countries. LEGAL BASIS — Title V (EU external action) of the Treaty on European Union; — Titles I-III and V (common commercial policy; development cooperation and humanitarian aid; international agreements) of the Treaty on the Functioning of the European Union. REGION-TO-REGION RELATIONS A. The summits The first summit between the EU, Latin America and the Caribbean was held in Rio de Janeiro in June 1999 and established a Bi-regional Strategic Partnership. The most recent biennial summit, held in June 2015 in Brussels, was the second between the EU and the Community of Latin American and Caribbean States (Comunidad de Estados Latinoamericanos y Caribeños, CELAC). The summits strengthen links between the two regions at the highest level and address issues on the bi-regional and international agendas. Debates have focused on topics such as democracy and human rights; fighting poverty; promoting social cohesion, innovation and technology; and the environment and climate change. The Brussels summit adopted a short political declaration, a longer declaration on the different aspects of the partnership and an EU- CELAC action plan, based on the priorities established by the recent
    [Show full text]
  • The European Union Perception of Cuba: from Frustration to Irritation* Joaquín Roy
    RFC-03-2 The European Union Perception of Cuba: From Frustration to Irritation* Joaquín Roy EXECUTIVE SUMMARY Fidel Castro dramatically selected the commemoration of the 50th anniversary of his failed attack against the Moncada Barracks in Santiago de Cuba on July 26, 1953, for his rejection of any kind of humanitarian assistance, economic cooperation, and political dialogue with the European Union (EU) and its member states, signalling one of the lowest points in European- Cuban relations.1 Just days before the anniversary of what later history would recognize as the prelude of the Cuban Revolution, the European Union’s Foreign Relations Council issued a harsh criticism of the regime’s latest policies and personal insults against some European leaders (notably, Spain’s José María Aznar), in essence freezing all prospects of closer relations. The overall context was, of course, the global uncertainty of the U.S. occupation of Iraq in the aftermath of the post-September 11 tension. Having survived the end of the Cold War and the perennial U.S. harassment, the Castro regime seemed to have lost its most precious alternative source of international cooperation, if not economic support. RESUMEN Fidel Castro escogió de manera espectacular la fecha de conmemoración del Aniversario 50 del fallido ataque al cuartel Moncada en Santigo de Cuba, el 26 de julio de 1953, para anunciar su rechazo a cualquier tipo de ayuda humanitaria, cooperación económica y diálogo político con la Unión Europea (UE) y sus estados miembros, lo cual marca uno de los niveles más bajos de las relaciones entre Cuba y la UE.
    [Show full text]
  • Assessing the Costs and Benefits of a Closer EU-Canada Economic
    Acknowledgements This report was produced by the Government of Canada (led by Foreign Affairs and International Trade Canada) and the European Commission (led by DG Trade), in response to a request formulated by Leaders at the 2007 EU-Canada Summit. The assistance of Professor Walid Hejazi (Rotman Business School, University of Toronto) in the drafting of this study and of Professor Joe Francois (University of Linz) in the economic modelling part of the study is gratefully acknowledged. TABLE OF CONTENTS Introduction and Executive Summary......................................................................................... i Introduction and Purpose of the Study ........................................................................................ i Executive Summary...................................................................................................................iii Part 1: Overview of Bilateral Economic Relations .................................................................... 1 1.1 The Current State of the EU-Canada Bilateral Economic Relationship............................... 1 1.2 Economic Policy-Making in the EU and Canada ................................................................. 4 1.3 Economic Relationships with Third Parties.......................................................................... 9 1.4 Analysis of Trade and Production Structures in the EU and Canada ................................. 15 Part 2: Analysis of Factors Affecting EU-Canada Trade and Investment...........................
    [Show full text]
  • EU Trade with Latin America and the Caribbean: Overview and Figures Page 1 of 34
    EU trade with Latin America and the Caribbean Overview and figures IN-DEPTH ANALYSIS EPRS | European Parliamentary Research Service Authors: Gisela Grieger and Roderick Harte Members' Research Service PE 625.186 – September 2018 EN This publication provides an overview of trade relations between the EU and Latin American and Caribbean countries and groupings. The EU has fully fledged agreements with two Latin American groupings (Cariforum and the Central America group), a multiparty trade agreement with three members of the Andean Community (Colombia, Ecuador, and Peru), and bilateral agreements with Chile and Mexico. Since November 2017, a new agreement governing trade relations with Cuba has also been provisionally applied. In addition, the EU is currently modernising its agreements with Mexico (with which it has reached an 'agreement in principle') and Chile. The EU also has framework agreements with Mercosur and its individual members (Argentina, Brazil, Paraguay, and Uruguay). The agreement with the former will be replaced, once the ongoing negotiations on an EU-Mercosur association agreement have been completed. This publication provides recent data on trade relations between the EU and Latin American and Caribbean countries and groupings, compares the main agreements governing trade relations that are already in place, and analyses the rationale behind the ongoing negotiations on the EU-Mercosur, EU-Mexico and EU-Chile agreements. This paper has been drawn up by the Members' Research Service, within the Directorate-General for Parliamentary Research Services (EPRS) of the Secretariat of the European Parliament. To contact the authors, please email: [email protected] Original manuscript, in English, completed in September 2018.
    [Show full text]
  • Caribbean Regional Report on the Mid-Term Review of SIDS Accelerated Modalities of Action
    Caribbean regional report on the mid-term review of SIDS accelerated modalities of action 2 2 ECLAC – Studies and Perspectives Series – The Caribbean – No. Caribbean regional report on the mid-term review... Contents Abstract ......................................................................................................................................... 7 Acronyms ..................................................................................................................................... 101 I. Means of implementation ............................................................................................................... 15 A. Coherence and linkages between the Caribbean SIDS sustainable development agenda, the 2030 Agenda for Sustainable Development, other global and regional frameworks and coordinating mechanisms ....................................................................................................... 15 1. Intergovernmental bodies ............................................................................................... 15 2. United Nations bodies .................................................................................................... 17 3. Selected cases supporting environmental governance in ............................................... 18 the context of sustainable development ................................................................................. 18 B. National institutionalisation of the SIDS sustainable development agenda ........................... 19 1. Regional
    [Show full text]
  • Continuing the United Kingdom's Trade Relationship with The
    Continuing the United Kingdom’s trade relationship with the CARIFORUM States Continuing the United Kingdom’s trade relationship with the CARIFORUM States Economic Partnership Agreement between the CARIFORUM States, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part May 2019 Continuing the United Kingdom’s trade relationship with the CARIFORUM States Presented to Parliament by the Secretary of State for International Trade by Command of Her Majesty May 2019 © Crown copyright 2019 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government- licence/version/3 Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. This publication is available at www.gov.uk/government/publications Any enquiries regarding this publication should be sent to us at [email protected] ISBN 978-1-5286-1286-9 CCS0519196036 05/19 Printed on paper containing 75% recycled fibre content minimum Printed in the UK by the APS Group on behalf of the Controller of Her Majesty’s Stationery Office Contents Introduction 6 Legal approach 7 Resources 7 Economic Background 8 Economic impact of the existing EPA 11 Potential loss to UK if the CARIFORUM-UK EPA is not ratified 12 Immediate impact if not ratified 12 Explanation of this Agreement, including Significant Differences between the CARIFORUM-UK EPA and the Existing EPA 16
    [Show full text]
  • Serving Whose Interests?: the Political Economy of Trade In
    1111 2 Serving Whose Interests? 3 4 5111 6 7 8 9 1011 1 2 3111 Services permeate almost every moment of our daily lives, whether they are 4 social services such as education, media and midwifery, or inputs to capitalist 5 production such as finance, transport, energy and telecommunications. Yet 6 they are being purged of their social essence in the name of ‘trade’ and 7 relegated to commodities in an international marketplace. Serving Whose 8 Interests? explores the political economy of ‘trade in services’ agreements 9 from a critical legal perspective. 20111 The complex ‘trade’ regime put in place by the General Agreement on 1 Trade in Services, and a new generation of GATS-compliant bilateral and 2 regional agreements, has the potential to constrain the policy choices of 3 virtually every government in the world. These agreements are exclusively 4 the tools of contemporary global capitalism, yet are represented as the 5 new pathway for development through the seemingly benign medium of 6 international trade law. In an evolving chess game, attempts by the major 7 powers to secure national regulations and policies that boost the profits of 8 their transnational corporations and advance their geopolitical ambitions 9 are being frustrated by reluctant Southern governments and the resistance 30111 of social activists. This book draws out the contradictions between the global 1 market model and the intrinsically social nature of services through a 2 combination of theoretical analysis of the legal texts and truly global case 3 studies of the social and political implications, leading the author to question 4 the sustainability of the trade in services regime.
    [Show full text]
  • EU and the Caribbean Seal Economic Partnership with Ground-Breaking Trade Deal
    IP/08/1510 Bridgetown, 15 October 2008 EU and the Caribbean seal economic partnership with ground-breaking trade deal The European Union and countries of the Caribbean region have today signed an Economic Partnership Agreement (EPA) which will strengthen ties between the two regions and promote regional integration in the Caribbean. The EPA is the first genuinely comprehensive North-South trade and development agreement in the global economy. It includes a package of measures to stimulate trade, investment and innovation, and to promote sustainable development, build a regional market among Caribbean countries and help eliminate poverty. Speaking at the signing ceremony, European Commission Vice-president Siim Kallas said: "This marks a new era in EU-Caribbean economic relations. The EPA puts the Caribbean firmly on the map for trade and investment. I pay tribute to the Caribbean leaders and negotiators for pursuing their vision of a prosperous future for their region." EU Commissioner for Development Louis Michel added: "This is a groundbreaking step forward for regional integration and development for the Caribbean. This deal creates new opportunities for the region in terms of stronger growth and exports, and more jobs." The EPA between the EU and the CARIFORUM group of Caribbean countries was negotiated between 2004 and 2007 after previous trade arrangements failed to stimulate development and were challenged as discriminatory at the WTO. The EPA is a binding international agreement that fully complies with WTO rules and provides security for Caribbean traders and investors. The deal includes chapters on trade in goods; trade in services; investment; competition; innovation and Intellectual Property, public procurement and development aid.
    [Show full text]
  • Getting to Know The
    Getting to Know the EPA is one of a series of guides produced by the Caribbean Regional Negotiating Machinery (CRNM) on the subject of the Economic Partnership Agreement (EPA) between African, Caribbean and Pacific States and Europe. This Frequently Asked Questions (FAQ) guide is designed to clarify basic facts about the EPA. Getting to Know the EPA : Provisions on Services and Investment Does the EPA text include provisions on Services and Investment? Yes. The EPA contains a comprehensive section on Investment and Services as well as common rules on E-commerce. It provides a special provision for the Bahamas and Haiti to join the Agreement but they must submit their commitments on investment and services within six months. Why does the EPA include provisions on Investment? While European investments into CARIFORUM have generally increased over the last decade, investment flows in recent years have been stagnant in most non-tourism sectors. The Parties agreed to investment liberalization in the EPA, in order to establish rules that facilitate the easier flow of investment across the borders of the European Union and all CARIFORUM countries, and a reduction in discriminatory treatment of foreign investors within their respective territories, and greater predictability and transparency. Such an agreement will benefit CARIFORUM countries in terms of transfer of technology, creation of jobs, quality products and services; while creating a more favourable investment climate for their investors in the European Union. The EU is a significant outward investor, with 9 EU members ranking in the top twenty leading outward investor economies. Therefore a properly managed relationship with the EU should create viable opportunities for CARIFORUM, and stimulate growth and dynamism in EU investment flows to the Caribbean.
    [Show full text]