CSME & EPA

Norman GirvanIn Honour of Trevor Farrell

October 9, 2008

CSME STATUS UPDATE2007

No. of action

elements% completed

A. Legal & Institutional Infrastructure 15 87.5

B. Single Market 31 64.7

B4. Free Movement of Goods 5 91.7

B5. Free Movement of Services 4 2 79.2

B6. Free Movement of Persons 16 59.4

B7 Free Movement of Capital 6 55.6

B8. Right of Establishment 2 50.0

C. Single Economy 37 15.4

C9. Common External Policy 3 97.2

C10. Harmonisation of Laws 16 1.0

C11. Sectoral Programmes & Enabling Environment 6 0.0

C12. Common Support Measures 12 8.3

Total 83 55.0

Key Incomplete elements of the Single Market & Economy

• Services• Investment Agreement• Financial Services Agreement• Common sectoral policies• Government procurement• Electronic commerce• Free circulation of goods • Treatment of goods originating in Free Zones

[i].

Girvan EPA 27/04/08Girvan EPA 27/04/08 66

Part I. Trade Partnership For Sustainable DevelopmentPart II. Trade And Trade-Related MattersTitle I. Trade In GoodsChapter 1. Customs DutiesChapter 2. Trade Defence InstrumentsChapter 3. Non-Tariff MeasuresChapter 4. Customs And Trade Facilitation Chapter 5. Agriculture And FisheriesChapter 6. Technical Barriers To Trade Chapter 7. Sanitary And Phytosanitary Measures Title II. Investment, Trade In Services And E-Commerce Title III. Current Payments And Capital Movement Title IV. Trade Related IssuesChapter 1. CompetitionChapter 2. Innovation And Intellectual PropertyChapter 3. Public ProcurementChapter 4. EnvironmentChapter 5. Social AspectsChapter 6. Protection Of Personal Data Part III. Dispute Avoidance And SettlementPart IV. General ExceptionsPart V. Institutional ProvisionsPart VI. General And Final Provisions

Preamble

Chapter One: Principles

Chapter Two: Institutional Arrangements

Chapter Three: Establishment, Services, Capital and Movement of Community Nationals

Chapter Four: Policies For Sectoral Development

Part One: Industrial Policy

Part Two: Agricultural Policy

Part Three: Common Supportive Measures

Chapter Five: Trade Policy

Part One: Preliminary

Part Two: Trade Liberalisation

Part Three: Subsidies

Part Four: Subsidies to Agriculture

Part Five: Dumping

Chapter Six: Transport Policy

Chapter Seven: Disadvantaged Countries, Regions and Sectors

Part One: Preliminary

Part Two: Regime for Disadvantaged Countries, Regions and Sectors

Part Three: Special regime for Less Developed Countries

Chapter Eight; Competition Policies and Consumer Protection

Chapter Nine: Disputes Settlement

Chapter Ten: General and Final Provisions

A ‘Level Playing Field’?

POPULATION

(Millions)

GDP

(PPP)

$ Bil.

PER CAPITA GDP (PPP)

EU 490 12165 24,811

CARIFORUM 25 138 5,532

CARICOM 15 65 4,220

JOINT CARIFORUM-EC COUNCIL

TRADE AND DEVELOPMENT COMMITTEE

COMMITTEE ON CUSTOMS CO-OPERATION AND TRADE

FACILITATION

CONSULTATIVE COMMITTEE

PARLIAMENTARY COMMITTEE

Prepared by Norman Girvan on the basis of the EPA text. 18/03/08.

Implementation Machinery

Girvan EPA Legal 10

  Joint CARIFORUM-EC Council  Composition

 Members of the Council of the European Union, members of the European Commission, and representatives of the Governments of the Signatory CARIFORUM States. "CARIFORUM States shall mandate one representative to act on their behalf on all matters ...for which they have agreed to act collectively"

  Frequency of Meetings  At regular intervals, not exceeding two years, and whenever the need arises  Functions and powers

1 Supervise the implementation of the Agreement.

2 Be responsible for the operation and implementation of the Agreement and ensure that the objectives of the Agreement are fulfilled

3 Examine major issues arising within the framework of the Agreement, as well as other issues (bilateral, multilateral or international in nature) that may affect trade between the Parties

4 Examine the Parties’ proposals and recommendations for the review of the Agreement 5Establish its own rules of procedure6 Establish the rules of procedure of the CARIFORUM-EC Trade and Development Committee 7Adopt decisions and recommendations that parties agreed to collectively8Provide periodic reports on the operation of the Agreement to the Council of Ministers

9 Shall be advised on any request made by a third State to become a member of the EU and decide on measures relating to the effects of the accession of new EU Member States on the Agreement.

10 May decide to allow the Parties to review the provisions of the Protocol on Rules of Origin with the view to further simplifying the concepts and methods used for determining origin

11Adopt measures to adjust the provisions of the Agreement where a state has become party to an economic integration agreement and such agreement provides more favourable treatment to the third party than that granted by the Signatory CARIFORUM State to the

12Review the operation of the provision on multilateral safeguards to decide whether to extend their application for a further period

13 Take decisions concerning which procurements should apply to the respective parties and under which conditions they apply.

14 Supply the CARIFORUM-EC Parliamentary Committee with requested information relevant to the implementation of the Agreement

15Decide on participation in the CARIFORUM-EC Consultative Committee.

16Take decisions on all matters covered by the Agreement. Decisions taken shall be binding on the Parties and the Signatory CARIFORUM States, and the Parties shall take measures to implement them in accordance with internal rules

17Make recommendations regarding actions Parties should take concerning the implementation measures to attain the objectives of the Agreement. .

18Adopt decisions and recommendations on matters which Signatory CARIFORUM States agreed to collectively

19Shall be informed of the adoption of any safeguard measures and of a timetable for its removal

Girvan EPA Legal 11

CARIFORUM-EC Trade and Development CommitteeFunctions and powers

Supervise and be responsible for the implementation and application of the Agreement, discuss and recommend cooperation priorities Oversee the further elaboration of the provisions of the Agreement and evaluate the results obtained Undertake action to avoid disputes and to resolve disputesAssist the Joint CARIFORUM-EC Council in the performance of its dutiesMonitor the development of regional integration, economic and trade relations between the PartiesMonitor and assess the impact of the implementation of the Agreement on the sustainable development of the Parties Discuss and undertake actions to facilitate trade, investment and business opportunities between the Parties Discuss any matters pertaining to the Agreement and any issue liable to affect the attainment of its objectives Assist the Joint CARIFORUM-EC Council in the area of development cooperation related matters Monitor the implementation of the cooperation provisions of the Agreement and coordinate such action with third party donors Make recommendations on trade-related cooperation between the Parties Review and discuss cooperation priorities and make recommendations on the inclusion of new priorities    Review and discuss cooperation issues pertaining to regional integration and implementation of the Agreement.

Set up and oversee any special committees or bodies to deal with matters falling within its competence, and determine their composition, duties and rules of procedure

Consider issues under this Agreement and take appropriate action in the exercise of its functions

Take decisions or make recommendations in the cases provided for in this Agreement or where such power has been delegated by the Joint CARIFORUM-EC Council.

Be notified of the start of phased elimination and the elimination of customs duties on the import of products originating in the EC PartyMay review the schedule of customs duty reductions and elimination in the event of serious difficulties in the import of a given product.

Facilitate consultations among Parties in cases where there are reports of failure to provide administrative co-operation and/or of irregularities or fraud.

Shall be notified of temporary suspension of preferential treatment of a product/s. Facilitate consultations on temporary suspensions of preferential treatment and their termination Provide the forum for Parties to modify the level of customs duties stipulated in Annex 2.

Resolve cases where a Party’s import duties have been affected by errors in the management of the preferential system of export, and in the application of the definition of "originating products"

Examine cases where a party has informed the Committee that safeguards measures need to be taken Make recommendations to the Parties concerned to remedy the circumstances with regard to safeguard measures.

Caricom Governance

Source: “CARICOM, Our Caribbean Community”

IMPLEMENTATION OF THE EPA

• 336 identified implementation actions – 90 legislative– 72 institutional– 110 policy– 64 other– Most are to be taken on provisional

application of the EPA

Outstanding for CSME implementation: 384 (2005)

How did this happen?

• Interests of Dominican Republic

• Politcal responsibility for EPA and CSME with different Prime Ministers

• CRNM not part of Caricom Secretariat

• CRNM negotiators in favour of WTO-plus EPA

• Decisions driven by short-term expediency: preserve market access

EPA ‘Disaster Mitigation’ Strategy

• Insertion Caricom as a Party to the EPA

• Defer WTO-plus subjects until settled in the WTO or completed in the CSME

• Clarify relationship between EPA and the Revised Treaty of Chaguaramas

• Incorporate review and revision mechanism

A Joint Declaration?

• Seeks to give precedence of the Revised Treaty of Chaguaramas over the EPA

• Implementation will take account of the needw of Caricom LDCs

• Review to be undertaken within 5 years and then five-yearly intervals

Signature--a blunder in the making?

• No October 31 deadline

• ACP initiative for high-level engagement with the EU

• Mandelson is on the way out

• MFN Clause will cause problems with the US