Because Trade Matters...

CRNUPDATE
M
The CRNM is responsible for developing and maintaining a cohesive and effective framework for the
coordination and management of the Caribbean Region’s negotiating resources and expertise.

Is s u e :

09/ 0 1 Update on the Implementation of the

Cariforum-EC Economic Partnership
Agreement (EPA)

Provisional Application Two factors contributed to the prompt

On 15 October 2008, thirteen CARIFORUM States
and the EC signed the CARIFORUM‐EC Economic
Partnership Agreement (EPA) at a ceremony in
Barbados. Guyana subsequently signed the
Agreement on 20 October in Brussels. Haiti, the
only UN‐designated LDC in the CARIFORUM
Group, has not yet signed the Agreement.
Consistent with the Decision of 14 December 2006 by
the General Council of the WTO on Transparency
Mechanism for Regional Trade Agreements (RTAs),
the CARIFORUM‐EU EPA was jointly notified to the
Committee on Regional Trade Agreements (CRTA) on
16 October 2008. The notification was modified on
October 22 to reflect Guyana’s addition to the slate
of CARIFORUM signatory states.
notification of the Agreement. The first was the
then impending Appellate Body hearing on
bananas (16‐17 October) and the desire to ensure
that there was legal coverage for the preference
being accorded to CARIFORUM bananas exports.
The second was Article 243(3) of the EPA which
committed the parties to commence provisional
application of the Agreement “as soon as possible
but no later than 31 October 2008”.
The Transparency Mechanism dictates that, “as a
rule, notification must take place directly
following the parties’ ratification of the RTA or
any party’s decision on application of the relevant
parts of an agreement, and before the application
of preferential treatment between the parties”.
Consequently, it was necessary for the two Sides
to notify the Agreement prior to the date agreed
for the commencement of provisional application.

CRNM UPDATE is the flagship electronic trade newsletter of the Caribbean Regional Negotiating Machinery (CRNM). Published in English, it is a rich
source of probing research on and detailed analyses of international trade policy issues and developments germane to the Caribbean. Prepared by the
Information Unit of the CRNM, the newsletter focuses on the CRNM, trade negotiation issues within its mandate and related activities. Its intention is to
provide impetus for feedback by and awareness amongst a variety of stakeholders, as regards trade policy developments of currency and importance to
the Caribbean.
http://www.crnm.org
The Secretary General of the Council of the These studies are aimed at assisting in providing
European Union is the depository for the the EC and other potential donors with a better
Agreement. Given the region‐to‐region nature of understanding of the region’s needs. They also
the EPA, provisional application by the aim at translating the cooperation provisions of
CARIFORUM party could only take effect when all the EPA into concrete and actionable sector
of the CARIFORUM signatories individually programmes destined for any potential donor,
completed the domestic procedure necessary to detailing timing and activities required in order to
enable provisional application or ratification. The allow the region to fully implement the
last signatory CARIFORUM state deposited its commitments in the Agreement. Efforts are being
notification in mid‐December 2008 and made to accelerate the work of the Task Force.
Provisional Application took effect on 29th
December 2008. To date, studies chronicling CARIFORUM support
needs have been completed in the following six
areas:‐

WTO Transparency Mechanism 1. Competitiveness and Innovation;

Due to the presence of a non‐WTO Member (The 2. Customs and Trade Facilitation;
Bahamas) among the signatories to the
3. Competition Policy;
CARIFORUM‐EC EPA, the WTO Committee on
Regional Trade Agreements (CRTA) has not issued 4. Public Procurement,
a schedule for its consideration of the EPA. WTO
Members are yet to establish procedures on the 5. Technical Barriers to Trade; and
consideration of RTAs which include a non‐WTO 6. Sanitary and Phytosanitary
Member and it is unclear when consensus on this Measures for Fisheries Access to EU
issue will be reached. Further, currently, the WTO market.
Secretariat has in its queue 46 RTAs for which
factual presentations remain outstanding. Terms of reference for the launch of studies in
several other areas have also been completed.
It should be noted that other ACP sub‐Groups, CARIFORUM is currently working with the
such ad ESA, include non‐ WTO Members. Commission to finalize terms of reference for the
remaining areas.

With the signing of the Caribbean Regional

RPTF ‐ The State of Play Indicative programme (CRIP) on November 15 on
the occasion of the European Development Day,
The work programme of the CARIFORUM‐EC
the financial framework is now in place for
Regional Preparatory Task Force (RPTF) includes
drawing down resources to fund programmes
overseeing the preparation of a comprehensive
identified in the completed studies.
set of studies.

CRNM UPDATE is the flagship electronic trade newsletter of the Caribbean Regional Negotiating Machinery (CRNM). Published in English, it is a rich
source of probing research on and detailed analyses of international trade policy issues and developments germane to the Caribbean. Prepared by the
Information Unit of the CRNM, the newsletter focuses on the CRNM, trade negotiation issues within its mandate and related activities. Its intention is to
provide impetus for feedback by and awareness amongst a variety of stakeholders, as regards trade policy developments of currency and importance to
the Caribbean.
http://www.crnm.org
EPA Implementation issues While the major implementing legislation will not
be needed immediately upon provisional
The CARIFORUM‐EC EPA is a comprehensive application of the Agreement, some “immediate
agreement covering, inter alia, trade in Goods, action items”, such as the need to convene initial
Services and Investment, Competition Policy, meetings of the institutional bodies and more
Innovation and Intellectual Property, specifically the Joint CARIFORUM‐EC Council and
Transparency in Public Procurement, Environment the Trade and Development Committee, are
and Social Aspects, and Personal Data Protection. required.
There is also an overarching Development
Chapter, which outlines scope and cooperation Furthermore, both the act of signature of the
priorities, such as support to build human, legal agreement and provisional application, serve as
and institutional capacity, promotion of private triggers for the fulfillment by the CARIFORUM
sector and enterprise development, States of other specific obligations under the
diversification of export base and support to Agreement. The most clearly defined of these
develop infrastructure necessary to conduct obligations are the following:
trade. This chapter is complemented by subject‐
1. The implementation of a zero rate of duty for
specific development cooperation priorities. certain specified products of EC origin
The EPA is the central plank of the region’s 2. The implementation of the negotiated
strategy for dealing with the changing commitments in services and investment.
international trading environment. Its
implementation by both Parties to the Agreement 3. The notification of customs duties other than
therefore assumes very great importance now those set out in Annex III (ODC’s) to the
especially given that the pursuit of strengthened CARIFORUM‐EC Trade and Development
Committee (within six months of signature).
CARIFORUM regional integration is one of the
central tenets underlying the EPA. 4. The elimination of customs duties on exports
(within three years of signature.)
CARIFORUM has already started to give
consideration to an “EPA Implementation Road 5. The accordance of regional preferences intra
Map”. The Road Map, which will be refined based CARIFORUM commencing generally one year
on the output of the studies, sets out the after the signature of the Agreement ( but
legislative and policy actions required at the immediately with respect to the obligation to
national and regional levels; timelines for accord a zero rate of duty on all products
slated for immediate liberalization under the
accomplishment of each action; an estimate of
EPA .
the resources required for the implementation of
EPA commitments; and possible sources of 6. the designation of National Coordinators and
funding, including those already committed by the a Regional Coordinator to facilitate the
EC. In addition, several Member States have effective implementation of the Agreement
established or are in the process of establishing and communication (upon provisional
national EPA Implementation Units. application)

CRNM UPDATE is the flagship electronic trade newsletter of the Caribbean Regional Negotiating Machinery (CRNM). Published in English, it is a rich
source of probing research on and detailed analyses of international trade policy issues and developments germane to the Caribbean. Prepared by the
Information Unit of the CRNM, the newsletter focuses on the CRNM, trade negotiation issues within its mandate and related activities. Its intention is to
provide impetus for feedback by and awareness amongst a variety of stakeholders, as regards trade policy developments of currency and importance to
the Caribbean.
http://www.crnm.org
7. The designation of competent authorities to Recent Activities
facilitate the implementation of SPS measures
(upon provisional application) In addition to the dissemination of information to
stakeholders on the CARIFORUM‐EC EPA,
8. The designation of contact points to facilitate CARIFORUM has initiated actions aimed at taking
the exchange of information related to advantage of the opportunities under the EPA.
technical regulations and standards (upon Specifically, in September 2008, a study tour of
provisional application) European capitals was conducted involving
several Caribbean organizations and business
9. Establishment of a list of arbitrators (15)
owners, including the Caribbean Association of
through the CARIFORUM –EC Trade and
Industry and Commerce, Caribbean Export Agency
Development Committee (within 3 months of
and the Caribbean Regional Negotiating
provisional application)
Machinery. The tour focused on matching
10. Establishment of rules of procedures of the Caribbean and European businesses in the area of
Arbitration panels through the CARIFORUM‐ creative industry and Information and
EC Council (within 3 months of provisional Communication Technology (ICT).
application)
CARIFORUM and the EC also held its first Business
There are of course reciprocal obligations on the Forum on 24‐25 November in Barbados. The
EC side, some of which took effect on January 1, Business Forum aims to build private sector
2008. capacity in the CARIFORUM region by providing a
platform to facilitate dialogue between
CARIFORUM and European firms and investors.
Among the issues discussed were the
opportunities and challenges associated with
doing business in Europe and the CARIFORUM
region in the area of services export from a
general and sectoral perspective as well as how to
effectively use the EPA as a tool to expand trade
Please visit our website for more between the two regions
information on Caribbean Trade
or email:

marsha.drakes@crnm.org

CRNM UPDATE is the flagship electronic trade newsletter of the Caribbean Regional Negotiating Machinery (CRNM). Published in English, it is a rich
source of probing research on and detailed analyses of international trade policy issues and developments germane to the Caribbean. Prepared by the
Information Unit of the CRNM, the newsletter focuses on the CRNM, trade negotiation issues within its mandate and related activities. Its intention is to
provide impetus for feedback by and awareness amongst a variety of stakeholders, as regards trade policy developments of currency and importance to
the Caribbean.
http://www.crnm.org