According to the Caribbean-EU Economic Partnership Agreement (EPA) export duties, which an exporting country charges on its own exports, will be eliminated by 2011, or three years after the EPA comes into effect.
In the case of Guyana this will apply to precious stones, bauxite, unrefined cane sugar, greenheart, molasses and aquarium fish, while in Suriname it will be some wood products, railway/ tramway sleepers, and Hoopwood/split poles, acc-ording to a release from the Jamaica office of the Caribbean Regional Negot-iating Machinery (RNM).
This is another in the series that the RNM has issued to inform the public on the EPA.
At present, the release noted, negotiators have completed negotiating based on their respective mandates, and member states can now sign the agreement.
The release said also that in the EPA there is a commitment to allow regional firms to set up operations in the EU while facilitating European firms to establish in select sectors in CARIFORUM states, possibly fostering joint venture and other partnership vehicles to improve competitiveness.
Another of the provisions in the final text of the EPA with direct application to CARIFORUM’s (CARICOM and the Dominican Republic) private sector and their agents is predictability in market access into the EU, the world’s largest import spending market for goods and services (including cultural services) with US$6.4 trillion spent on imports of goods and services in 2006.
The EPA will also allow duty-free, quota-free (DFQF) market access for all goods meeting qualifying rules of origin from CARIFORUM other than sugar and rice, from January 1 this year. And sugar will be DFQF from the end of September 2009 and rice from 2010, the release stated.
CARIFORUM gained 60,000 tonnes in additional sugar quota, split equally between the Dominican Republic and CARICOM, so CARICOM’s quota increase is 30,000 tonnes.
The release said further that the rice quota will now be duty free, compared to the reduced duty paid currently.
The rice quota will also be increased by 29% and 72% over the current quota for 2008 and 2009 respectively.
CARIFORUM’s rice quota is currently 145,000 tonnes and will be 187,000 tonnes in 2008 and 250,000 tonnes in 2009, after which the quota will be eliminated.
Entertainment
Another provision refers to market opening beyond global commitments – those made in the World Trade Organization (WTO)- in the services sectors, including creative industries, specifically entertainment.
Meanwhile, entertainment professionals (including theatre, live bands – other than audiovisual services) with qualifications will be able to perform in the EU.
There is also a commitment for promotion of co-production treaties in the audiovisual services sector, and the granting of market access in the EU for co-produced audiovisual works where the audiovisual works are owned or jointly-owned by nationals of the EU or CARIFORUM.
The EPA has resulted too in exclusions and long phase-in periods (up to 25 years) for sensitive products, including (non-exhaustive list) poultry, meat, fishery products, sauces, ice cream, syrup, beverages, ethanol, rum, vegetable oils, paints/varnishes, perfumes, make up/cosmetics, soaps, shoe polish, glass/metal polishes, candles, disinfectants, sleep systems/mattresses, furniture (and parts), and cotton pullovers/jerseys/cardigans.
There is also provision for securing access to significant resources to contribute to innovation development in the region, and protection of the market for regional government contracts.
The release said that the EPA also resulted in sheltering the banana industry from the many disputes mounted in the WTO in the past, including the ruling against EU preferences for the African Caribbean and Pacific states.
The EPA also provides for improvements in the rules of origin (i.e. the working processes that allow goods to qualify for duty relief under a trade agreement) in areas such as garments of knit and non-knit fabric which can now be produced from non-originating material and cigars and smoking tobacco, where now 40% by weight of the un-manufactured tobacco can be sourced from outside CARIFORUM, compared to 30% under Cotonou.
The RNM was created by CARICOM Governments to develop, coordinate and execute an overall negotiating strategy for various external trade negotiations in which the region is involved.
The RNM 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.
