CSME & EPA
Norman Girvan
In Honour of Trevor Farrell
October 9, 2008
CSME STATUS UPDATE
2007
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].
Part I. Trade Partnership For Sustainable Development
Part II. Trade And Trade-Related Matters
Title I. Trade In Goods
Chapter 1. Customs Duties
Chapter 2. Trade Defence Instruments
Chapter 3. Non-Tariff Measures
Chapter 4. Customs And Trade Facilitation
Chapter 5. Agriculture And Fisheries
Chapter 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 Issues
Chapter 1. Competition
Chapter 2. Innovation And Intellectual Property
Chapter 3. Public Procurement
Chapter 4. Environment
Chapter 5. Social Aspects
Chapter 6. Protection Of Personal Data
Part III. Dispute Avoidance And Settlement
Part IV. General Exceptions
Part V. Institutional Provisions
Part VI. General And Final Provisions
Girvan EPA 27/04/08
6
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 GDP
(Millions)
(PPP)
$ Bil.
12165
PER
CAPITA
GDP
(PPP)
24,811
CARIFORUM 25
138
5,532
CARICOM
65
4,220
EU
490
15
Implementation Machinery
JOINT CARIFORUM-EC COUNCIL
TRADE AND DEVELOPMENT COMMITTEE
COMMITTEE ON CUSTOMS COOPERATION AND TRADE
FACILITATION
PARLIAMENTARY COMMITTEE
CONSULTATIVE COMMITTEE
Prepared by Norman Girvan on the basis of the EPA text. 18/03/08.
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
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 procedure
6 Establish the rules of procedure of the CARIFORUM-EC Trade and Development Committee
7Adopt decisions and recommendations that parties agreed to collectively
8Provide periodic reports on the operation of the Agreement to the Council of Ministers
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
9
accession of new EU Member States on the Agreement.
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
10
and methods used for determining origin
Adopt measures to adjust the provisions of the Agreement where a state has become party to an economic integration agreement and such
11
agreement provides more favourable treatment to the third party than that granted by the Signatory CARIFORUM State to the
3
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.
Take decisions on all matters covered by the Agreement. Decisions taken shall be binding on the Parties and the Signatory CARIFORUM
16
States, and the Parties shall take measures to implement them in accordance with internal rules
Make recommendations regarding actions Parties should take concerning the implementation measures to attain the objectives of the
17
Agreement. .
18Adopt decisions and recommendations on matters which Signatory
Girvan CARIFORUM
EPA Legal States agreed to collectively
19Shall be informed of the adoption of any safeguard measures and of a timetable for its removal
10
CARIFORUM-EC Trade and Development Committee
Functions 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 disputes
Assist the Joint CARIFORUM-EC Council in the performance of its duties
Monitor the development of regional integration, economic and trade relations between the Parties
Monitor 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 Party
May 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.
11
Girvan EPA Legal
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