Expanding the CRNM Private Sector Outreach

Beginning with this issue, the Caribbean Regional Negotiating Machinery (CRNM) will be producing monthly trade briefs for Caribbean businesses, offering information on general or sector-specific developments in trade and negotiations and an assessment of their implications for the region's private sector. These briefs will be distributed electronically to the targeted mailing list and will aim to solicit private sector commentary on developments within the various negotiating arenas as part of a wider series of private sector outreach activities; developed through broad consultation with the region's private sector stakeholders.

[More on the CRNM Private Sector Outreach]

Consultations with CARICOM Private Sector on Trade Negotiations with Canada

The CRNM is organizing a consultation with the private sector in CARICOM in preparation for market access negotiations with Canada to receive input to the possible scope of negotiations and the barriers faced in doing business. Private sector companies and associations with significant trading interest in the Canadian market, or doing business with Canada should participate and are invited to pre-register their attendance at http://www.crnm.org/psCaricom_Canada.htm.

On behalf of CARICOM Member States, CRNM is inviting views on any priorities, objectives and concerns regarding a free trade agreement with Canada. In particular, we are seeking views on the following:

1. Opinions on areas of export interest, including products for which Canada should eliminate barriers. The CRNM is also seeking views on products for which there may be concerns if access to the CARICOM market for Canadian products were to be improved
2. Views on general rules of origin issues for specific products or sectors
3. Suggestions on "trade facilitation" issues, e.g. significant impediments related to export/ import procedures
4. Views and experiences with customs-related issues for both travellers and commercial goods destined for the Canadian market
5. Views on general investment issues to be included in the scope of the investment negotiations, the type of problems faced by CARICOM investors in Canada
6. Views on general cross-border trade in services issues to be included in the scope of negotiations, services sectors in Canada that could be of interest for further liberalization, and opinions on measures affecting access, including regulatory measures that may restrict cross-border trade in services
7. Views on any other related issues including environmental protection, labour rights, human rights, culture and other social concerns, as they relate to a possible agreement with Canada

With a view to facilitating these submissions, the CRNM has established a virtual discussion forum on Issues and Experiences in CARICOM/ Canada trading at http://www.caribrnm.net/forum/. Interested parties are invited to participate.

[More on Background to Negotiations on CARICOM Canada Trading Arrangements]

Update on EPA Negotiations

The current CARIFORUM-EU European Partnership Agreement (EPA) negotiations represent a radical departure from the approach adopted in previous Lome and Cotonou Agreements. EPA negotiations are expected to prepare new ground in two fundamental respects. Firstly, in contrast to a comprehensive pan ACP-EU agreement, these new trading arrangements are being negotiated between the EU and each of the six ACP regions (CARIFORUM, East and Southern Africa, SACU-MAT (Southern African Customs Union - Mozambique, Angola and Tanzania), ECOWAS (West Africa), CEMAC and Sao Tome e Principe (Central Africa) and the Pacific Forum). Secondly, in order to comply with WTO rules, EPA involve the award of reciprocal market access, as opposed to the provisions of Cotonou where ACP members are not obliged to grant the EC access to markets of developing countries.

CARIFORUM Member States exported €2.916 billion to the EU in 2003. Conclusion of a new trading arrangement, expected to come into effect after the expiry of the current WTO waiver of the Cotonou Agreement, is critical in order to secure market access conditions for several of the region's exports. The current dialogue on sugar and bananas has underscored that the Caribbean already faces severe threats to its traditional exports. An EPA, if constructively designed, could not only preserve existing market access conditions but also afford an expansion of the volume of Caribbean exports shipped to the burgeoning EU market.

EPA negotiations aim to increase Caribbean market access opportunities for trading with the EU by addressing some of the non-tariff border measures. For example, simplifying the present rules of origin might facilitate greater Caribbean exports. In any event, the current Cotonou rules are predicated on a non-reciprocal trade agreement and therefore cannot apply in the new dispensation where both sides will liberalize their respective markets. Another cluster of issues that EPA negotiations seek to address is the region's capacity to comply with European Community SPS and TBT measures. An EPA can support the regional integration process by strengthening new institutions such as CROSQ, a Caribbean Accreditation Board, the Caribbean Animal and Food Health and Safety Agency and the Caribbean Regional Competition Commission. Another possible area of concern relates to the award of business visas to facilitate the conduct of legitimate business within the EU.

In all CARIFORUM Member States, except Guyana, Services are the major contributor to the GDP of the economies. Service exports from the region to the EU are also significant and an EPA would offer a unique opportunity to secure even greater market access. CARIFORUM negotiators are focused on removing supply side bottlenecks; in contrast to the EC argument that the development of a regional market will automatically spur improved flows of investment (domestic and foreign). Negotiating a bi-regional CARIFORUM-EC Investment Agreement and the establishment of a CARIFORUM Regional Investment Facility that generates access to low cost investment capital are examples of possible approaches that could in theory engender an improved supply of goods and services exported to the EC.

Negotiations between 15 CARIFORUM Member States and the European Union (EU) on an Economic Partnership Agreement (EPA) were officially launched on April 16th, 2004 in Kingston, Jamaica. CARIFORUM comprises the 14 CARICOM Member States and the Dominican Republic. In the first phase of negotiations concluded in September 2004, broad principles governing the negotiations and charting the major objectives to be pursued within each of the four stages of the bi-regional negotiations were agreed. Currently the region is involved in Phase II of negotiations, scheduled between September 2004 and September 2005. The objective of the second phase of the four- phase process is to establish a common understanding of the priorities for support of the Caribbean regional integration process and the targets to be attained by the time of EPA implementation on January 1, 2008. Phase II will end in September 2005 with a Ministerial meeting and will be immediately followed by Phase III. To date, the CRNM has held several discussion meetings with negotiators and stakeholders, including consultations with Non-State Actors held at the national level.

[More of the detailed brief on EPA negotiations]

[Click Here To post views on EPA arrangements within a virtual discussion forum]

Comments in relation to this trade brief content may be forwarded to the barbados.office@crnm.org

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