Source: https://de.scribd.com/document/92249149/I-jong-Economic-Partnership-Agreement-Implications-for-the-Development-of-the-Domestic-Private-Sector-Report-Seminar-to-the-Suriname-Business-Fo
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I.jong - Economic Partnership Agreement - Implications for the Development of the Domestic Private Sector - Report Seminar to the Suriname Business Forum | European Union | World Trade Organization
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Council Conclusions on Central Asia
Economic Partnership Agreement:
Implications for the Development of the Domestic Private Sector
Drs. Imro San A Jong Meeting Chairman Wednesday 16 December 2009 Conference Room Chamber of Commerce and Industry Business Booster Building Trade Fair Complex
The text in front of you is as a true account as possible of the seminar. Taking into account the importance of the seminar and the complexity of the Economic Partnership Agreement (EPA), the chairman of the seminar, responsible for the compilation of this final report, has, where necessary, made a number of remarks captured in endnotes. With regard to a number of issues, it was important to put them in a broader context or in more layman terms. In the text, footnotes are indicated by numbers (1, 2, etc.) and endnotes in capital letters (A, B, etc).
In opdracht van het Suriname Business Development Center uitvoerend kantoor van het Suriname Business Forum
Verslag Seminaar Economic Partnership Agreement: Implications for the Development of the Domestic Private Sector
drs Imro San A Jong
EconomIc PARtnERShIP AgREEmEnt: ImPlIcAtIonS foR thE DEvEloPmEnt of thE DomEStIc PRIvAtE SEctoR
Conferentiezaal Kamer van Koophandel en Fabrieken
lISt of ABBREvIAtIonS SUmmARY 1. oPEnIng SESSIon 1.1 InTRoDuCTIon By IR. E.P. IssElT, DIRECToR suRInAME BusInEss DEvEloPMEnT CEnTER 1.2 oPEnIng sPEECh By Ing. o. Dos RAMos, ChAIRMAn oF suRInAME BusInEss FoRuM 1.3 sPEECh MRs. E. hERnAnDEz ARAgonEs, ChARgE DAFFAIREs DElEgATIon oF ThE EuRoPEAn CoMMIssIon In suRInAME 1.4 ThE oPEnIng sPEECh By DRs. C. P. MARICA, MInIsTER oF TRADE AnD InDusTRy 4 6 9 9 9 10 11
2. thE EPA In DEvEloPmEnt contExt: PoSSIBIlItIES, conStRAIntS AnD ImPlIcAtIonS 13 2.1 MR. REMCo vAhl: hoW suRInAME WIll BEnEFIT FRoM ThE EPA 13 2.2 PRoF. noRMAn gIRvAn: WhAT ARE ThE ConsTRAInTs ThAT EPA REPREsEnTs 16 AnD WhAT ARE ThE IMPlICATIons In joInIng ThIs EPA fIRSt RoUnD of qUEStIonS AnD AnSwERS 3. MARkET ACCEss FoR gooDs 3.1 MR. yvETTE RokADjI AnD DRs. PAul soEBAI: EPA, MARkET ACCEss FoR gooDs 3.2 PATRICIn BIsoEn, MsC: RulEs oF oRIgIn 3.3 IR. REn vAn EssEn: IMPlICATIons, BEnEFITs AnD RIsks FRoM ThE PRIvATE sECToR As REsulT oF ThE EPA 3.4 DRs. jEAn DjAsMAn: EPA, TRADE In sERvICEs 3.5 Ing. WIlgo BIlkERDIjk: IMPlICATIons, BEnEFITs AnD RIsks FRoM ThE PRIvATE sECToR As REsulT oF ThE EPA SEconD RoUnD of qUEStIonS AnD AnSwERS 4. cloSIng SESSIon 4.1 suMMARy sEMInAR ChAIRMAn 4.2 ClosIng oF ThE sEMInAR By IR. E.P. IssElT, DIRECToR suRInAME BusInEss DEvEloPMEnT CEnTER 5. conclUSIonS AnD REcommEnDAtIonS APPEnDIx 1 AgEnDA sEMInAR 2 InTRoDuCTIons AnD PREsEnTATIons 3 CuRRICuluM vITAEs 4 lIjsT vAn AAnWEzIgEn sEMInAAR 16 DEC 2009 EnDnotES 20 23 23 26 27 29 30 28 34 34 34
35 37 38 40 91 93 96 3
AsFA CED CF CRnM CoTED DFQF nAs DomRep EDF EPA Eu FDI Association of Manufacturers in suriname Customs and Excise Department CARIFoRuM, the group of countries composing the CARICoM Member states and the Dominican Republic, which concluded the EPA agreement with the Caribbean Regional negotiating Machinery, the institute that represented the CARICoM Member states during the CARIFoRuM-Eu EPA trade negotiations Council for Trade and Economic Development duty free and quota free The national Assembly of suriname The Dominican Republic European Development Fund CARIFoRuM EC Economic Partnership Agreement European union, European Community Foreign Direct Investment, defined within the EPA as commercial presence established by the creation or maintenance of a branch or representative office or the purchase of an existing company for the purpose of performing an economic activity. Fg FTA gATT hs ME MFn French guyana Free Trade Agreement general Agreement on Tariffs and Trade harmonized Commodity Description and Coding system; internationally acknowledged system to describe and code traded goods Micro Enterprise Most Favoured nation Clause: one of the fundamental pillars of free trade agreements stating that the imports of one country should be provided a treatment noT different than that of similar countries. no discrimination for instance in the application of duties, regulation and clearance MTI MRA nT Ministry of Trade and Industry. Mutual Recognition Agreement national Treatment Clause: also one of the fundamental pillars of free trade agreements stating that an imported good/service should receive the same treatment as similar goods/services produced locally nTB Plos Png Roo sBC sBF 4 non-Tariff Barriers such as Rules of origin, TBT, sPs Ministry of Planning and Development Cooperation Professor norman girvan Rules of origin suriname Business Development Centre suriname Business Forum
special and Differential Treatment. A provision within the gATT that acknowledges the needs and circumstances of developing countries and allows for treatment that differs from that applied to developed countries.
sME sPs
small and Medium sized Enterprise sanitary and Phyto-sanitary Measures; measures, especially in agriculture, with the objective to protect man, animals and plants from diseases, plagues and contamination.
Technical Barriers to Trade. Rules, requirements to be met by goods before they are allowed to enter a market. These could be requirements concerning packaging, labeling, contents of the product, standards, certification etc. TBTs have the objective to protect but can also be used to discriminate towards imported goods.
TF TWg
Trade Facilitation Technical Working group and the meetings thereof. TWgs were aimed at providing inputs from the different CARICoM Members states in preparation of the trade negotiations but also to take home the instructions from the negotiating institution and prepare for the next TWg
vsB WTo
suriname Trade and Industry Association World Trade organisation
SAMENVATTING December 2009, the sBC, the executive office of the sBF, organized a seminar on Wednesday 16
Op woensdag 16 december 2009 organiseerde het SBC, de werkarm van hetthe Domestic Private entitled Economic Partnership Agreement: Implications for the Development of SBF, een seminaar getiteld Economic Partnership of the Chamber of Commerce and Industry located on the grounds sector, in the conference room Agreement: Implications for the Development of the Domestic Private Sector, in de conferentiezaal van de Kamer van Koophandel en Fabrieken op het of the Trade Fair. The objective of this seminar was discuss the trade and development agreement Jaarbeursterrein. Het doel van het seminaar was om de handels en ontwikkelingsovereenkomst between de CF and the Eu, the EPA, signed on 16 December 2007 and signed on 15 october 2008, in tussen de CF en EU, de EPA, welke op 16 december 2007 werd afgerond en op 15 oktober 2008 in Bridgetown, Barbados. The seminar was concerned with Het ging the dialogue between the public Bridgetown, Barbados, werd ondertekend, te bespreken.improving in het bijzonder om de dialoog and private sector, particularly understanding the possible de gevolgen the de on voor de private tussen de private sector en de overheid te verhogen enimplications ofvan EPAEPA the economy and sector en de economische ontwikkeling beter te begrijpen. De focus van het seminaar was rond 3 the private sector. sleutelaspecten geconcentreerd, m.n.:
The seminar was focused around 3 key aspects: 1. Waarom is de EPA belangrijk voor Suriname?
1. Why is the EPA important for suriname? voor bedrijven en de economische ontwikkeling van 2. Wat zijn de gevolgen en effecten het land? 2. What are the implications and effects on companies and economic development? 3. Hoe should be implemented: te are the wat zijn played by the de overheid en de 3. how the EPAdient de EPA uitgevoerdwhatworden: roles to bede rollen van government and the privatesparticuliere sector daarbij? sector?
Voor het seminaar was een breed gemleerde gezelschap uitgenodigd, waaronder inleiders van de A en Professor Norman Girvan van de University van de which speakers from the Eu, Professor EUbroad spectrum of people and institutions were invited, ofWest Indies, evenals medewerkers van MHI, die aan de EPA onderhandelingen t.b.v. Suriname hebben meegewerkt en vertegenwoordigers norman girvan from the university of the West Indies, as well as staff members from MhI, who van het bedrijfsleven. De bedoeling was om kenners van de EPA aan het woord te laten en de EconomIc PARtnERShIP AgREEmEnt: ImPlIcAtIonS foR thE DEvEloPmEnt of thE DomEStIc PRIvAtE SEctoR aanwezigen, in het bijzonder de private sector en de vertegenwoordigers van de overheid, zo goed
participated in preparing the EPA negotiations, and representatives of the private and public sector. The intension was to have experts with knowledge of the EPA to have the floor and allow those present, in particular the private sector and representatives from the public sector, to be informed in detail about the agreement. By way of discussions, the meeting left open the opportunity to pose in-depth questions, receive answers or formulate bottlenecks in implementing the EPA. The seminar was structured in 4 parts: in the first part, the opening session, invitees were greeted by the sBC, the sBF and the Eu. In this part, the Minister of MTI also made the opening speech. The second part consisted of 2 very interesting presentations followed by ensuing discussions, in which differences in viewpoints and interests clearly indicated to what extent the EPA should be perceived as promising a bright future or should be approached with a great amount of concern. The second part was also characterized by to what degree more or less detail about the EPA was revealed. The third part consisted of 3 presentations by MTI and 2 from the private sector. The presentations of MTI were intended to provide more insight into how the EPA came about for suriname, in particular with respect to market access for goods, and services and investments. The presentations of the private sector had the objective to portray the bottlenecks the sector perceived in implementing the EPA and present proposals that can be solved specifically by policy measures. After the 2nd and 3rd session, the participants had the opportunity to communicate with the presenters. The 4th part was the conclusion of the seminar. The seminar gave a good impression of the complexity of the EPA, which matured greatly during the presentations of the Eu representatives and Png. Market access does not necessarily entail market presence and this seminar really provided a taste of what is in store in terms of efforts to establish market presence on the Eu market: non-tariff barriers with respect to goods, severe entry requirements including (discretional) decisions by local governments with respect to market access for services, and other Eu regulations that need to be met but are not included into the agreement. In this part of the seminar it became more apparent that we are not entirely aware of the impact the commitments will have on the region, in particular with respect to services. What also surfaced more clearly are the institutional monitoring and governing mechanisms the Eu has incorporated into the EPA to retain the CF market and to monitor the progress and possible adjustments of the agreement. It specifically regards the impact of the MFn Clause with respect to future FTAs the CF might conclude with parties outside the EPA: all advantages extended to future partners should also be extended to the Eu. This Clause does not make it attractive for future partners to conclude FTAs with the region, but also implicitly grants the Eu exclusive access to the CF market and ensure that this remains as such. At the WTo many Members, including Brazil, raised objections against this Clause; it would be contrary to the Enabling Clause and the principle of special and Differential Treatment. The presentations after the break were to review the commitments suriname made to the Eu, in particular the baskets of goods and the commitments with respect to services and investments. The presentation on goods described how these were distinguished into 3 categories, depending
on the incidence of tariff reduction. Rules of origin were also explained as a way to highlight the fundamentals of market access for goods. The presentation on services short provided an overview what commitments have been made by parties. Parts of the surinamese market immediately opened with the agreement going into force, and others will gradually open. Apart from the services regularly included in services agreements, the Eu has also agreed to open their market for the temporary entry of professionals and non-services sectors. given the commitments made in the EPA, more was expected from the presentations of the private sector to clearly indicate the bottlenecks the sector thinks it would meet in engaging the agreement. The presentations were characterized by fear, doubt and uncertainty with respect to possible impacts and the call for evaluations, sector studies and protection mechanisms in particular. In this respect, representatives of the Eu have frequently stressed that safety mechanisms have been built-in into the agreement and that no fear of flooding the surinamese market have to prevail. What emerged more clearly, at least that is the impression from the seminar, is that the private sector has become more aware that regular and intensive participation in activities of organized by MTI are of eminent importance to transform opportunities into advantages, but also to be better prepared to meet the challenges the EPA brings. on many occasions within the seminar, it was stressed, also by representatives of the private sector that the latter is not sufficiently taking advantage of the invitations and impulses to gain progress with the opportunity to position itself better into markets. Consequently it was also stressed that it would be very important for the private sector to actively participate within the EPA and services Implementation units, which will be/are initiated by MTI. The importance and success of the seminar was underscored by the participants. Also the questions posed by the media to various representatives after the conclusion of the seminar, emphasized the interest and importance of the subject. The sBC and sBF have looked back on a successful seminar and mention was made of future, more detail oriented seminars on the EPA.
1.1 IntRoDUctIon BY IR. E.P. ISSElt, DIREctoR SURInAmE BUSInESS DEvEloPmEnt cEntER Mr. Ernie Isselt, sBC director welcomes the authorities, invitees and other participants and explains that the sBF and sBC organize seminars with the objective to promote the exchange and cooperation between the public and private sector. Mr. Isselt makes note that an integration process is taking place worldwide and that the country, the private sector in particular, needs to find its place and space within the process. The EPA, concluded in october 2008 between the CF countries and the Eu, provides a perfect opportunity to achieve such. however, against the background of the norms, standards and requirements set by international institutions such as the WTo, the suriname private sector will need to prepare properly and is searching for methods to increase its participation in the integration process by expanding its competitive capacities. In this context, the support and cooperation of the public sector will be of crucial importance, for instance in establishing institutions, the creation of laws and regulation, etc. This seminar entitled Economic Partnership Agreement: Implications for the Development of the Domestic Private sector, should be perceived in this context, the public-private partnership cooperation. The objective is to have a better understanding of the impacts of the EPA on the private sector and the economic development of suriname, whereby 3 specific aspects were of importance: 1. Why is the EPA important for suriname? 2. What are the implications and effects for businesses and the development of the country? 3. how the EPA should be implemented: what are the roles to be played by the government and the private sector? Mr. Isselt introduces the chairman and wishes the attendants a successful seminar.
oPEnIng SPEEch BY Ing. o. DoS RAmoS, chAIRmAn of SURInAmE BUSInESS foRUm
The discussions regarding the implications of EPA on suriname are ongoing since 2005. The discussions are, for instance, currently continued within the nAs, preceding the ratification of the agreement. People are aware of the opportunities that the EPA present, but these are overshadowed by the many questions regarding possible negative effects that this agreement may have on the domestic market, small and medium enterprises in particular. The opportunities most frequently mentioned are, better quality of goods available for the consumer due to the subsequent reduction of tariffs, and advanced technologies as introduced/institutionalized by standards. Also the DFQF possibility that the EPA offers in terms of market access for goods, should
be regarded as an opportunity. The questions that also arise are; can private sector supply our goods and services at the desired price, quality and scale for the Eu market. The quota for rice, which will be in effect till 31 December 2009 and determined at 250,000 tonnes, was taken as an example; suriname and guyana are not in the position to furnish this quota. Despite the many limitations, the sBF chair encouraged the private sector and the government to consider the EPA as a challenge. Will we be able to meet the Eu standards? With respect to this aspect, the chair also referred to an example; fish. The reminded that suriname was able to meet the Eu standards for fish and through perseverance has eventually gained access to the Eu market. now the country has a standard bureau to assist the private sector. Can the private sector produce the quality and enough quantity to compete on the Eu market? There are enough questions raised by the agreement and the challenge, but the real challenge is: can we (the government) provide companies the support to meet the challenges and transform the opportunities in advantages by solving envisaged problems with specific policies?
SPEEch mRS. E. hERnAnDEZ ARAgonES, chARgE DAffAIRES DElEgAtIon of thE EURoPEAn commISSIon In SURInAmE
Mrs. hernandez Aragones, representative of the EC in suriname, welcomes everyone and congratulates suriname with signing the EPA agreement. she characterizes the agreement and the signing thereof as a milestone in the relationship between the Eu and the CF, including the outermost Regions, and foresees that with this agreement markets will open more than before and competition will increase. Change cannot happen at once, but has to take place in small manageable steps. Thats why, with respect to agricultural goods, preferential treatment will temporarily exist (as for sugar, rice and bananas) and the CF market will open through an agreed step by step procedure. The Eu market will open from day one, while import duties in CF countries will be reduced by 61% in 10 years, 83% in 15 years and 87% in 25 years to allow Eu imports into the regional market, whereby certain Eu goods will permanently be excluded from tariff reduction. Mrs. hernandez Aragones portrayed the EPA as a special agreement and recalled the commitments in tourism, the temporary presence of natural persons for commercial purposes and special professions; a provision, mrs. hernandez Aragones said, that the Eu has not provided in any other FTA is has concluded with other partners. Apart from the trade aspects, the agreement also addresses a development aspect to support CF countries in taking advantage of the opportunities. For this purpose, 165m has been allocated for the regional integration process. 10
To implement the EPA, a regional roadmap has been drafted. Furthermore, an agenda of issues can be drawn up for discussion within the CF-Eu joint Committee how the further improve the competition capacity of the region. The Eu representative wished the participants lots of success with the seminar and once again congratulated suriname with the signing of the EPA agreement.
thE oPEnIng SPEEch BY DRS. c. P. mARIcA, mInIStER of tRADE AnD InDUStRY
The minister welcomes the participants and said to be honored to be requested to again open a sBC seminar. The minister starts by recalling his own experiences with the EPA: moments during the negotiations were harsh words were uttered and the CF countries threatened to abandon the negotiations and moments were it looked as if the deadline for signing the agreement would not be met. For the minister it was a great honor to represent the President of the Republic of suriname to sign the agreement. The minister often stood still at the criticism towards the EPA and the proactive attitude necessary to transform opportunities into advantages. nationally there is a lot of criticism and pressures, referring to the critical discussions within nAs preceding the ratification of the agreement, but criticism should not be based on fear and falsehoods and the EPA should not be placed in a controversial context. The minister reminded that in implementing the EPA, everybody has access to the same information and commitments and the requirements to gain advantage are clear. With respect to the market access of goods, the DFQF applies and even though it is acknowledged that currently the country does not have enough export goods to supply the Eu market, efforts should be invested into that direction. In this vain, the minister referred to the efforts made by his Ministry. The Ministry follows an integrated approach whereby sBs is creating standards to ease market access and competition legislation is enacted to protect consumers and establishments against the abuse of dominant market position by particular companies. The minister called for a critical evaluation of the EPA by directing the energy towards generating advantages from the EPA. The minister referred to the IDB Competitiveness Enhancement Project to assist the private sector in achieving the advantages. The message with respect to criticism was clear; transform opportunities into advantages. The minister also called upon the sBF, the platform that is established to enhance the public-private partnership, to synthesize with the Ministry to assist in identifying and tackling the opportunities and challenges. The Minister referred to the current efforts with respect to the implementation of the EPA, by establishing an EPA Implementation unit (of which the establishment by way of an order was in its final phase). The EPA Implementation unit, which will consist of representatives of the public and private sector, should see to it that the EPA is properly implemented, monitored and coordinated, using
the regional EPA roadmap as a guiding principle. Together with the work plan, the unit may adjust the roadmap according to circumstances. The minister, familiar with the approach of Png, referred to the critical disposition of the Caribbean scholar, which should result in refinement and better preparation of successes and to overcome obstacles. The minister then declared the seminar opened and wished the attendees a fruitful participation of the seminar.
Pagina 12 van 90 2. thE EPA In DEvEloPmEnt contExt: PoSSIBIlItIES,
conStRAIntS AnD ImPlIcAtIonS EPA IN DEVELOPMENT CONTEXT: POSSIBILITIES, CONSTRAINTS IMPLICATIONS3
Het tweede part ofvan het seminaarintended to put the EPA in a broader context, ruimere context te The second deel the seminar was was bedoeld om EPA als geheel in een whereby all aspects plaatsen waarbij would be highlighted as much as possible. Forals mogelijk belicht zouden worden. of the agreement alle aspecten van de overeenkomst zoveel this purpose, Mr. Remco vahl, deputy Hiertoe waren de heren Remco Vahl, onderhoofd bij de Mr. Fabien Generaal van RicoEuropese head of the Director general of the European Commission, Directeur gehl and Mr. de zampetti Commissie, Fabien Gehl en Rico Zampetti uitgenodigd om de aanwezigen vanuit het standpunt van were invited to explain the EPA from the purview of the Eu. organizers have also chosen to invite Png, de EU de EPA uit te leggen. Echter is ook gekozen om een kenner van de regio en de EPA, Prof. an expert on the region and the EPA, to address the participants and provide a critical analysis of the Norman Girvan, aan het woord te laten en een kritische beschouwing van deze overeenkomst te agreement. It became a very lively discussion, die, vooral vanuit de kant from the point of view of geven. Het is een levendige discussie gewordenwhich disclosed, especially van PNG, heeft laten zien Png, that the zeer complexe en veelomvattende overeenkomst is die agreement that zorg be dat EPA een EPA should be considered a very complex and comprehensive met de nodigeshould en serieusheid bestudeerd dient teand woulden intensieve inspanningenreallyvergen om opportunities studied with care in seriousness worden require intensive efforts to zal transform de gunstige mogelijkheden daadwerkelijk in voordelen om concerned Het ging erosionin het bijzonder over de into tangible advantages. Png was particularly te zetten. with the bij PNG effects that future FTAs uithollingseffecten die toekomstige handelsovereenkomsten tussen deon the current agreement, between the parties (CF and Eu) and other parties outside the EPA may have partijen (CF en EU) en andere handelspartners buiten de EPA op de gesloten overeenkomst, dus de kansen voor thus the market access opportunities of CF countries. markttoegang voor CF landen, zou kunnen hebben.
The Eu representatives predominantly stressed the advantages that should rather be considered as opportunities, and indicated that the realization of the advantages is fully in the hands of the region itself; do not just focus on the extended market access, but developing the capacities necessary to
successfully enter the Eu market and maintain the market share. 13
De presentatie evenals de discussies in dit deel van het seminaar waren allen in het Engels, maar zijn voor dit EconomIc PARtnERShIP AgREEmEnt: de taal van het verslag gehouden. Nederlandstalig verslag overeenkomstigImPlIcAtIonS foR thE DEvEloPmEnt of thE DomEStIc PRIvAtE SEctoR
The presentation of this part of the seminar as well as answering questions partly took place through video conferencing, whereby the connection with Png was not always optimal.
mR. REmco vAhl: how SURInAmE wIll BEnEfIt fRom thE EPA
The presentation by Mr. Remco vahl and others, entitled how suriname Will Benefit from the EPA, started off with an overview of the structure and character of the EPA and proceeded by specifically focusing on important aspects of the agreement, such as: the advantages for regional and national development, the exceptional market access for goods and services, facilitating regulations and the development aspects (financial support and institutional strengthening) in the agreement. To use the words of Mr. vahl; unlimited market access for goods and unprecedented market access for services and enough provisions to take advantage of both the trade and development aspects of the agreement. The EPA is a comprehensive and partnership-based regional trade and development agreement. Trade liberalization and development cooperation have been integrated into an overarching development cooperation, congruent with the rules of the WTo, whereby market access into the Eu is achieved simultaneously with the entry into force of the agreement and access into the CF market will take place through a step by step process (extended over a maximum period of 25 years). These aspects endow this agreement its asymmetric and progressive character. The trade cooperation has been extended into other non-traditional areas such as market access for professionals, non-services sectors and provisions for government procurement. This entirety is supported by development cooperation, with the Eu making resources available in support of the integration process. The importance of EPA in terms of poverty alleviation, regional integration, expansion of investment opportunities and sustainable development were underlined. The agreement takes into account the differences in development levels and the partnership is based on solidarity, understanding of mutual interests, participation and dialogue. Market access for Goods With respect to market access for goods, apart from the frequently cited DFQF provision, the expansion of market opportunities outside the Eu market1 was also frequently stressed, such as the market of the Dominican RepublicA. Reference was also again made to the safety valves put in place to avoid the domestic market being swamped by Eu goods. The Eu presenters wanted to take away the fear sensed, which was also
1 not specifically referred to, but what probably also should be included in this remark are the so-called outermost Regions, which are also part of the EPA. These are dependencies that politically still resort under various Eu Member states and are therefore part of the Eu, but are noT part of the continent of Europe. They have special provisions within the EPA and are also allowed to sell on the CF market. It normally involves very small dependencies such as the Azores, de Canary Islands, French guyana, etc, 7 in total.
present in the nAs deliberations, that the surinamese market might at some time be flooded by Eu import goods and that local producers/sectors would be endangeredB. Market access Services and InvestmentsC Market access for services has been dubbed a comprehensive offer not only for the magnitude of the commitments, but also for the new sectors, in which the Eu have made commitments2 not formerly extended to other partners outside the EPA. Important in the market access for services, if the volume of services trade is taken into account, is the effect of the MFn Clause: Eu or CF commitments of future FTAs extended to partners outside the EPA that would be deemed more favorable than the current, should also be extended to the partners within the EPA. special attention has been devoted to 3 new area: a) Temporary presence of natural persons for business purposes3; b) Contractual services suppliers and independent professionals of establishments from CF countries4; c) Entertainment sector, whereby audiovisual co-productions of Eu and CF producers will be qualified as Eu productions and will gain easier access into the Eu market. The EPA Regulatory Framework: Transparency and Predictability The objective of the regulatory framework, EPA Rules, is to make trade more acceptable and attractive by agreeing on a set of rules to comply with. These rules concern, among others, trade rules (specifically concerning the environment, that regulation on the environment is not specified/ implemented such that it hampers trade), cooperation with regard to innovation (taking into account intellectual property rights and the developmental level of CF countries), competition legislation whereby a limited number of general principles have been agreed upon to avoid markets being abused by anti-competition behavior (maintaining minimal legislation with respect to cartel formation, abuse of dominant position, etc.) and supervision of a healthy competitive environment coordinated by local and regional competition authorities, transparency with respect to government procurement (without the obligation of CF countries to allow Eu companies to participate in government tendering process). Also included in the EPA Rules is dispute settlement (see endnote B) With regard to Trade Facilitation favorable references were also made by the presenter, without specifying what these areD. With respect to trade in bananas, mention was made that, on 15 December 2009, an agreement had been reached in geneva to end all conflicts regarding this matter. The agreement meant less protection
2 3 4 The Eu has made commitments in 94% of its her services sectors, while the CF has done that in for approximately 75%, of which 65% for CARICoM countries and 90% for DomRep. It regards 6 categories of natural persons allowed entry into and temporary stay in their territories of key personnel, graduate trainees, business services sellers, contractual services suppliers, independent professionals and short term visitors for business purposes. The EPA does not provide permanent access in mutual labor markets. Market access within the Eu in 29 sectors under the condition that a contract exists for a period no longer than 6 months. Apart from the professionals employed by establishments, trained independent service providers have access to 11 sectors within the Eu, such as advisory services, computer services, management consultancies, etc, also for a maximum period of 6 months.
for bananas from ACP countries, and financial support of up to 200m for a period of 4 years to accommodate adjustmentE.
PRof. noRmAn gIRvAn: whAt ARE thE conStRAIntS thAt EPA REPRESEntS AnD whAt ARE thE ImPlIcAtIonS In JoInIng thIS EPA5
The introduction by Png differed in a number of aspects relative to that of the former speaker: it was more comprehensive, more critical, showed more detail, more in-depth and of more importance with respect to burning questions such as the real practical value of the DFQF principle and the actual impact on the domestic market. Png started his presentation with the question why the seminar has been organized at this moment and not before the signing of the agreement took place. The subjects addressed by Png concerned: general remarks with respect to the EPA, trade in goods and import competition, trade in services and investments, the Mandatory Review Clause and government procurement. General Remarks with respect to the EPA Png started out by making a number of general remarks, creating a context to understand the subjects he wanted to address. The discussion issue Png confronted the seminar with concerned the implications (future) Eu trade relations with other partners outside the EPA will have on this agreement, in particular the fear that provisions that should assist CARICoM countries in the process of gradual integration, will disappear. The core of the Png presentation was caution and quick actions to evaluate the economic, institutional and political implications of the EPA, both national and regional. Concerning goods, the DFQF offer is not new since under loM and Cotonou the Eu had already opened their markets for 97%. The problem with the minor supply of export goods on the Eu market did not concern the favorable market access, but the non-tariff barriers the Eu had/has in place to hamper market presence. The most important change in the goods regime is the principle of reciprocity in terms of MFn and nT. With respect to services and investment, the question that lingers is the magnitude of the offer CARIFoRuM has extended to the Eu, suriname in particular, since it is not possible to trace a specific policy underlying its offer. Market access for services into the Eu is tied to lots of requirements, of which a number of them depend on the discretion of individual Eu Member states. The biggest concern/danger Png is foreseeing, concerns the commitments made in terms of the institutional supervision: the standstill and Review Clause. In his opinion, these commitments have undermined the scope of national and regional institutes (such as the Meeting of the heads of
5 The receipt of Png through videoconferencing was on moments unclear thats why some parts are not clearly defined. Where necessary there has been made use of the speaking notes.
state and CoTED) to create development policies and protect infant industries, by allowing the Eu to influence or involvement in regional organs. Market Access of Goods and Import Competition Png indicated that within the purview of market access for goods, more barriers exist than the DFQF offer suggests. Those impediments exist within the conditions stipulated in the non-tariff barriers to really establish market presence within the Eu marketF. he concluded, that due to these nTBs market access does not necessarily mean that market presence is guaranteed. he foresees that local companies will, in time, become junior partners of larger Eu establishments, whereby the locals will come off worse as a result of the superior negotiation position of Eu establishments. In the stepwise liberalization process of Eu imports into suriname, the country will liberate its market by 9% duty free imports in the coming 3 to 5 years. In the next 6 to 10 years, this increases to 20%, followed by 27% in 11 to 15 years. The number of goods on the Exclusion list contains approximately 27% of Eu imports6. however, the percentage of Eu imports on which import duties are levied is around 91%; due to the EPA, government revenues will drop drastically in the future 7. Furthermore, suriname should expect competition from Eu imports on goods such as rum, beer, wooden furniture, cleansers, fats and ice creamg. According to Png, due to the standstill Clause, these effects are already noticeable on the locally manufacturedh. Market Access Services and Investments The crux in the argument Png made concerning market access for services and investments, is that it did not receive the attention it should have, and that the region was blindsided by the opportunities offered by the Eu, while the threshold to enter the Eu market is made difficult due to the high rising requirements their services market imposes. By way of example, he demonstrated the requirements that independent professionals have to meet before entering the Eu market, especially when taken into account the difficulty of other forms of services supply relative to the availability of academics, which should be able to furnish the Eu market the fastest. however, requirements are set high and discriminatory, such as: (must have obtained) a service contract for a period not exceeding twelve months, at least six years professional experience in the sector of activity which is the subject of the contract, possess (i) a university degree or a qualification demonstrating knowledge of an equivalent level, and (ii) professional qualifications where this is required to exercise an activity pursuant to the law, regulations or requirements of the EC Party or of the signatory CARIFoRuM state applicable where the service is supplied, other discriminatory
6 7 Twice as much as the average imports other CF countries have on their Exclusion list. In 2004, total government revenues from Eu imports were us$11,5m.
limitations, including on the number of natural persons in the form of economic needs tests 8, which are specified in Annex Iv. With regard to the qualification of the university degree, a Mutual Recognition Agreement (MRA) should exist beforehand. Is it clear that the process of entering the Eu market by independent professionals, including arriving at a MRA, will take quite a while before professionals can really enter the Eu marketI. Png also scrutinized the commitments suriname made under the services and investment agreement and strongly suggested that the country commissions, as soon as possible, a detailed study of its services and investment commitments under the EPA to be aware of the implications and take the necessary measures, where needed. he particularly referred to the extensive market access extended between 2015-18 for services such as physiotherapy, paramedical services, computer and database services, etc 9. With regard to agriculture, Png indicated that the negative approach was followed, and that suriname made the necessary reservations concerning land ownership. Government Procurement According to Png, the text on government procurement is liable to various interpretations and its not clear what the nature of the commitments in government procurement is. According to experts and politicians in the region, the EPA text indeed does contain commitments, while the Eu and the CRnM contend that the text is intended only to introduce transparency within the procedures and rules for government procurement, but that this does not entail entry of Eu companies into the government bidding process. To take part in the bidding process, an Eu company should first be authorized. In Pngs opinion the EPA does accommodate entry into this part of the services market. he asserted the chapter on government procurement to be one of the most extensive and detailed, and in support of his interpretation quoted a number of passages of article 167.1, where its clear that the text is open to both interpretations and that the word shall refers to a binding commitment 10. Article 167.1 reads as follows: The Parties and the Signatory CARIFORUM States shall ensure that the procurement of their procuring entities ..... take place in a transparent manner ......, treating any eligible supplier of either the Signatory CARIFORUM States or the EC Party equally in accordance with the principle of open and effective competition. The text prescribes in a compelling manner that the signatories shall ensure that the process takes place in a transparent manner (the assertion of the
8 The requirement for an economic needs test is mentioned in the goods and services/investment parts of the EPA, but not clearly defined in the agreement. For certain services, the following applies: Access is subject to economic needs test. Main criteria: the employment situation in the subsector, but no limits are mentioned when employment situation does not allow CF candidates to enter. The conditions to be met by the needs test are not defined/agreed and, furthermore, there are no provisions in the EPA to challenge the findings of such tests. 9 Please refer to the presentation of Png. 10 In the language normally used in trade liberalization, the word shall always refers to a commitment or binding arrangement.
Eu and CRnM) and that the signatories shall also ensure that every supplier is allowed to bid for government tenders, taking the principles of open and effective competition into account, shall be treated equally (or be allowed market access, the assertion of experts and politicians in the region, incl. Png). language in the same vain is captured in article 167.1 (A), b (i) and (ii), whereby clear binding rules with respect to market access have been put forward: (i), shall endeavour not to discriminate against a supplier established in either Party and (ii), shall not treat a locally established supplier less favourably than another locally established supplier on the basis of degree of foreign affiliation to or ownership by operators or nationals of any Signatory CARIFORUM State or of the EC Party. Both points (i) and (ii) indicate that Eu companies are allowed to bid for government tenders, since the phrases not to discriminate against and not treat another locally established supplier can only be interpreted when one is in competition with someone else, thus is tendering. Point (ii) also allows Eu companies to do the bidding through local companies, in the form of foreign representatives, or companies owned by entrepreneurs or natural persons in CARIFoRuM or Eu countries (the FDI definition under Investmentsj). Clauses in the EPA Png recalled the clauses incorporated into the EPA. For a general overview, these clauses have been shortly described in endnote k k.
fIRSt RoUnD of qUEStIonS AnD AnSwERS11
The first questioned concerned the availability and distribution of tariffs under the different baskets of goods. Mr. vahl indicated that the list of goods is available on the Eu and CRnM websites. This question was relegated to the presentation on market access for goods, but Png iterated that it is important to make the list of goods available on the 6 digit level of the hs system. A very laborious activity, which MTI has already started. During the discussion on market access for goods, Mr. vahl again stressed the advantages and the fact that the agreement contains enough safety valves to protect local CF market. he recalled as an example the product rum where the import into all CF countries is excluded. The audience also wanted to know what measures are currently in place for export and import protection. Apart from questions, remarks were also made. An entrepreneur remarked that people are not fully prepared for the EPA, especially when it concerns exports. There is noT enough technical support and research. The policy of MTI is noT motivating or encouraging. Examples included the policy on business licenses, the lack of a proper investment law, expensive financing, etc. The question was raised if provisions for financing and technical assistance are available. Another remark focused on the often used word benefits by the Eu representatives, which should better be interpreted as potentials if certain requirements are met. According to the person who made the remark, there is potential in the supply of rum, wood, etc. and the question raised was: what are the financial possibilities within the EPA to support new products to enter the Eu market and the amounts available for the government and private sector to achieve this? The Eu representative acknowledged that the benefits they referred to, should be understood as opportunities, but was also quick to say that it will depend on the implemented policies in suriname to what extent the opportunities will really be transformed into benefits. he took rice as an example, whereby suriname and guyana had equal opportunities under the Cotonou Agreement to supply the Eu market, but did suriname took as much advantage as guyana from this opportunity? no, since suriname was hampered by local obstacles it could not solve. Concerning the financial support, the Eu representative declared that this will not depend on the successes of the EPA, but that funds will be available for regional programs and integration and, that beyond the EPA pledges, additional assistance will be available (i.e. Aid for Trade and EDF).
11 similar questions or questions raised more than once have been summarized. Questions were cued first and then the presenters and representatives of MTI had the opportunity to react. not all questions were answered, but for completeness they have been mentioned in this report.
Png made the remark that the EPA framework is based on the premise that if trade and investment are liberated, this will automatically result in development, but questioned whether this framework was the proper one to achieve this. Will this framework bring industrial and agricultural development behind a wall of domestic Eu barriers; currently within agriculture barriers still exist. Will we be able to compete with an economic partner that has attained a high level of technological development, has controls a large market share and has a great negotiating position at its disposal? With respect to cooperation, which is captured under various chapters in the EPA, Png pointed out that this issue is expressed only in terms of best endeavors, and do not offer the possibility to challenge the Eu if the intended cooperation is not met. Concerning additionality and conditionality of Eu financial assistance, Png said that these do not really present additional new resources, but that existing EDF resources have been channeled to the agreement, while the conditions to access the resources have been expanded. For this assertion, he referred to the Regional Indicative Program. Questions were asked about the market access for goods, specifically in what ways the EPA has been an improvement in that area. It concerned Customs certificates, such as the ATA carnet, insurance of freight to Fg and new regulations with respect to the economic zone. The inquirer wanted to know to what extent Customs certificates will still be applicable and if the insurance for freight will become cheaper with the EPA. The inquirer also wanted to know if the EPA has accomplished that suriname can gain increased advantages out of the economic zone. A question frequently posed was, what should be done to turn opportunities into advantagesl. Another question concerned the implementation of the EPA, while, according to the inquirer, the EPA has not yet been notified at the WTo. The inquirer also referred to the fact that Brazil raised an objection at the WTo against the MFn Clause in the EPA. With regard to the carnets and the insurance, Mr. vahl stated that these regulations fall outside the EPA. Entrepreneurs will need to take these respective regulations into account when trading with the Eu. Concerning the economic zone, the Eu representative indicated that the current Rules of origin is much more liberal than the one under the lom or Cotonou agreement. Mr. vahl reacted to the question to what extent the protest lodged by Brazil with regard to the MFn Clause, was a violation of the WTo rules. he stated that this Clause is not discriminatory to future trading partners of the CF and that the EPA, as stated earlier, has incorporated enough safeguards to protect the domestic markets of CF countries. Png gave a reaction on the implementation of the EPA and the approval by the WTo, saying that the EPA can be implemented on a provisional basis and that it is not in conflict with WTo rules. With
respect to the discriminatory character of the EPA, based on the MFn Clause, Png said that this Clause is not in conformity with the gATT, where a special and Differential provision is observed to protect less developed countries. The MFn Clause is undermining the freedom of CF countries to conclude FTAs with other partners, especially within the framework of the south-south relationship. Mr. vahl reaction was that the Eu needs to protect its interests12M Remarks were also made concerning services and investments. Eu representatives confirmed that this part of the agreement is indeed very conditional; depending on a number of requirements, to be met, but they also contended that the level of these requirements are much lower than in any other FTA. They reiterated the provision of temporary entry of natural persons, which was dubbed exceptional and unequalled. For some sectors a number of entry requirements have even been removed to enlarge market access. But still, market entry is not easy in the Eu compared to the CF market. The agreement on services and investment also concerns new market access for the CF if the potential is available. The commitments of the CF countries are meant to attract (Eu) FDI and to draw advantage of local potentialities. Although the Eu representatives acknowledged that market access does not necessarily mean market presence, they indicated that a platform exists to negotiate about issues and that it is possible to cooperate with the Eu to establish a regulatory framework to make it happen. They also reiterated that with regard to services and investment national Treatment has been agreed in the EPA (Article 68). This entails that CF and Eu countries will provide the same treatment to each others establishments/natural persons as they would have extended to their own domestic establishments/ natural persons. some differences are allowed, but they should not be such that conditions regarding competition are amended such that it would defer an advantage to domestic establishments/natural persons (Art.68, parts 2 and 3). however, in case such would manifest, it still does not mean that the disadvantaged party would be compensated for any possible injury/damage (Art.68. part 4).
12 The matter concerning the MFn Clause in the EPA agreement en the reactions within the WTo, can be read in endnote M.
3. mARKEt AccESS foR gooDS
Market access for goods was covered by 2 presentations from staff members of MTI; one focusing on the negotiations regarding goods, the results and the baskets of goods, and the other focusing on Roo. Roo and negotiations on market access for goods go hand in hand, since Roo define which import goods are agreed upon and the conditions to which these goods are allowed to enter: from which country and what tariff should be applied. The part on market access for goods was covered by Ms. yvette Rokadji, llC and Mr. Paul soebai, Msc and the part on Roo by Ms. Patricin Bisoen, Msc.
mR. YvEttE RoKADJI AnD DRS. PAUl SoEBAI: EPA, mARKEt AccESS foR gooDS13
Market access concerns international trade that goes in both directions: exports from CF to the Eu and vice versa. Exports from CF to Eu enjoy DFQF with transitional arrangements for rice and sugar. The DFQF access is associated requirements to be met with regard to necessary standards and Roo. starting from 01 january 2010, rice DFQF will be effective. For 2008 and 2009, duty free tariff rate quotas of 187.000 ton (29% expansion) and 250.000 ton (72% expansion relative to 2007) on export rice applied respectively relative to 148.000 ton before the conclusion of EPA. Export volumes above the quota carried a 65/ton levy. Apart from the volume expansion, the quota for rice was also expanded in qualitative terms: broken rice and whole-grain rice was included. one should not forget though, that after the quota period has expired, rice products from the CF will meet competition on the Eu market from other rice exporters, with little difference between the Eu price and the world market price. During the negotiations on market access for agricultural and non-agricultural products, goods from the Eu entering the CF countries have been categorized into 3 baskets or lists of goods. These are the Exclusion list, the Phase Reduction list and the zero list. While categorizing the goods in different baskets, goods on the negatieve lijst14 have been taken into account. Apart from duties associated with the different baskets, other duties and charges should be reduced and removed within a 10 year period; they are allowed to be applied in their present form, 7 years after conclusion of the EPA, but should be reduced to zero in the following 3 years15. These other duties and charges concern statistical Rights, Consent Rights and similar charges. All lists of goods have been compiled in consultation with the private sector and relevant ministries. This took place through regular network sessions, both before and after TWgs. The zero list contains all import goods that all allowed to enter on a 0% duty (duty free). The zero list contains goods that, for a large part, already carried a 0% duty before the EPA negotiations were set in motion, and also
13 Parts of the text is exerpted from ACP-Eu Trade Issues in the Rice sector, Agritrade Executive brief, june 2009. CARIFoRuM EPA negotiations: an initial reflection, junior lodge, Technical Coordinator, EPA negotiations at the CRnM. 14 The negative list is a list of import and export goods for which a license is mandatory. 15 Every CF country has the right/possibility to reduce other duties and charges to zero before the scheduled deadline as agreed.
includes inputs for production. The Phase Reduction list contains goods that will be reduced in tariff over various time periods. The phased reduction allows domestic industries time to gradually adjust the quality, price, standards and marketing of their products to at least that of the imported goods as to avoid falling into a sudden disadvantageous position. Most of the goods on this list Pagina 23 vannot are goods 90 produced in suriname, for instance: products manufactured with highly advanced technologies, goods mostly produced through chemical compounds/couplings/divisionste passen, zodat zij niet plotseling marketing van hun goederen geleidelijk aan die van de import aan such as salt and acid. in een nadelige positie komen te verkeren. Het zijn producten die niet in Suriname worden geproduceerd. Enkele voorbeelden zijn: producten to tariff reduction. vrij hoog geavanceerde The Exclusion list contains goods, which are not subjectvervaardigd met The underlying assumption technologie, producten die meestal middels chemische verbindingen/koppelingen/scheidingen zijn was the protection of domestic production, safeguarding competition edge, but also protection of voortgebracht. Verschillende zouten en zuren. De Exclusion List omvat goederen welke niet aan employment, rural development and other supply companiesn. tariefvermindering onderhevig zijn. De achterliggende gedachte was bescherming van de binnenlandse productie, veiligstelling van de concurrentiepositie, maar ook behoud van During the presentation, Mr. soebai explained the toeleveringsbedrijvenN. with respect to goods and werkgelegenheid, rurale ontwikkeling en andere commitments of suriname how the various trade liberalization tariff lists for CF countries should be interpreted16. Tijdens de presentatie gaf drs. P. Soebai uitleg van de verplichtingen van Suriname m.b.t. goederen en hoe de verschillende tarieflijsten voor handelsliberalisatie voor CF gelezen dienen te worden24.
Appendix 1 to Annex III Schedule Tariff Liberalisation CARIFORUM States
1/01/ 2009 1/01/ 2011 1/01/ 2013 1/01/ 2015 1/01/ 2017
1/01/ 2018
Voorbeeld Zero List
ATG BEL BRB DMA DOM GRD GUY HAI JAM KNA LCA SUR TTO VCT 0103.91.10 0103.91.10 0103.91.10 0103.91.10 0103.91 0103.91.10 0103.91.10 0103.91 0103.91.10 0103.91.10 0103.91 0103.91.10 0103.91.10 0103.91.10 Live Pure-Bred Swine, Weighing < 50 Kg (Excl. Pure-Bred For Breeding) For breeding. For breeding. For breeding. For breeding. For breeding. For breeding. For breeding. For breeding. For breeding. For breeding. For breeding.
Als voorbeeld van hoe de goederentabel te lezen en een Zero List product van Suriname te vinden, het volgende. De tarieflijn met 6 cijferige HScode 0103.91: Levende a product of suriname on the To demonstrate how the goods table should be interpreted/read to findvarkens met een gewicht van minder dan 50 kg geeft aan dat is used. The tariff line with 6-digit hscode is overeengekomen, die zero list, the following example voor deze productgroep een fasereductie 0103.91: live Pure-Bred op 01 januari 2009 bij een importtarief van 40% begint, op 01 januari 2011 naar 35% moet zijn swine, Weighing < 50kg indicates the for this product phase reduction has been agreed, starting with gebracht, op 01 januari 2013 naar 29% enz., en per 01 januari 2017 en verder dient een tarief van an import tariff of 40% on 01 january 2009, reduced to 35% on 01 january 2011, reduced to 29% on 17% te gelden. Deze productgroep bestaat uit 1 product en 1 subproductgroep t.w.: 01 january 2013 and from 01 january 2010 and beyond the tariff should be 17%. This product group consists0103.91.10, Levende varkens met een gewicht van minder dan 50 kg, speciaal voor het of 1 product and 1 sub product group, as follows: fokken, en 0103.91.10,	Live	Pure-Bred	Swine,	Weighing	less	than	50kg,	specifically	for	breading,	and 0103.91.90, Andere; alle andere levende varkens met een gewicht van minder dan 50 kg 0103.91.90,	Others;	all	other	live	swine	weighing	less	than	50	kg	not	included	0103.91.10. die niet tot 0103.91.10 horen.
16 For a detailed overview, refer to Appendix 1 to Annex III schedule of tariff liberalization of the CARIFoRuM states of the EPA agreement. All Suriname heeft product 0103.91.10 niet op de gefaseerde reductielijst geplaatst maar op de Appendices, Annexes and Protocols are part of the EPA agreement.
nultarieflijst (Zero List). Als onder de tarieflijncode 0103.91, de lijst van landencodes wordt
suriname has not placed the product 0103.91.10 on the Phased Reduction list, but on the zero list. Running down the list of country abbreviations under the tariff code 0103.91, one comes across suR, which stand for suriname, and can derive that for the product with tariff line number 0103.91.10 afgelopen, vindt tariff of 0% Suriname (SUR) en daar staat dat voor discerned met tarieflijn the agreed importmen die van will be applied. From the list it can also behet productthat various CF 0103.91.10 een overeengekomen importtarief van 0% zal worden toegepast. Uit de lijst valt ook op countries also have this product on their zero list. however, for all other products categorized under dat verschillende CF landen dit product ook op hun nultarief lijst hebben staan. Echter voor alle 0103.91, such as 0103.91.90, and imported from the Eu, zoals 0103.91.90, en doorunder the Phase the agree tariff schedule Suriname uit de andere producten die onder tarieflijncode 0103.91 vallen, Reduction list should be worden, Currently the CED is applying a 40% duty on 0103.91.90. applied. dient wel het overeengekomen gefaseerde reductieschema te EU gemporteerd zullen worden toegepast. Momenteel past de Douane een tarief van 40% op 0103.91.90 toe.
1/01/ 2009 1/01/ 2011 1/01/ 2013 1/01/ 2015 1/01/ 2017 1/01/ 2018
Voorbeeld Phased Reduction List
0410.00 0510.00
Turtles' Eggs, Birds' Nests And Other Edible Products Of Animal Origin, N.E.S. Ambergris, Castoreum, Civet And Musk; Cantharides; Bile, Whether Or Not Dried; Glands And Other Animal Products Used In The Preparation Of Pharmaceutical Products, Fresh, Chilled, Frozen Or Otherwise Provisionally Preserved
Voorbeeld Phased Reduction List 2
BEL BHM DMA GRD KNA SUR VCT
0510.00 0510.00 0510.00 0510.00 0510.00 0510.00 0510.00
5 30 5 5 30 5 5
4 24 4 4 24 4 4
3 17 3 3 17 3 3
2 10 2 2 10 2 2
Een voorbeeld van een product op de gefaseerde reductielijst van Suriname betreft productgroep met HS tarieflijncode 0510.00; Grijze Reduction list of civet en concerns the product group with An example of a product on the Phased amber, bevergeil, surinamemuskus; Spaanse vlieg; gal, ook indien gedroogd; klieren en andere stoffen van dierlijke and musk; cantharides; bile, whether orhet hs tariff line code 0510.00: Ambergris, castoreum, civet oorsprong, die worden gebruikt voor not bereiden van farmaceutische producten, vers, gekoeld, bevroren of anderszins voorlopig dried; glands and other animal products used in the preparation of pharmaceutical products, fresh, geconserveerd. Rechts van de omschrijving van de code in de tabel, geldt vanaf 01 januari 2009 een chilled, frozen or otherwise provisionallyproductgroep op de the description of the code in the table, preserved. Right of gefaseerde reductielijst geplaatst (zie nultarief. Echter heeft Suriname deze a zero tariffSUR) te beginnen bij het2009. however, suriname5% per 01 januari 2009 en die steeds rechts van applies from 01 january huidige importtarief van has placed the product group on the
Phased per afgesproken (refer to the right per 01 januari 2018with the current import duty of 5% on 01 met 1% Reduction list periode naar 0% of suR), starting af te bouwen. january 2009, which will be reduced by 1% per agreed period to 0% by 01 january 2018.
1/01/ 1/01/ 1/01/ 1/01/ 1/01/ 1/01/ 2009 2011 2013 2015 2017 2018
Voorbeelden Exclusion List
0409.00 0207.11 0207.12 0207.13
Natural Honey Fresh Or Chilled Fowls Of The Species Gallus Domesticus, Not Cut In Pieces Frozen Fowls Of The Species Gallus Domesticus, Not Cut In Pieces Fresh Or Chilled Cuts And Edible Offal Of Fowls Of The Species Gallus Domesticus
Excl Excl Excl Excl Excl Excl Excl Excl Excl Excl Excl Excl Excl Excl Excl Excl Excl Excl Excl Excl Excl Excl Excl Excl
Op deze Exclusion List komen productgroepen voor waarvan het huidige importtarief binnen de EPA op Exclusion list product groups are placed of which the current import tariff buiten de on the hetzelfde niveau zal blijven, tenzij in een toekomstige FTA met een andere partnerwill remain EU, andere afspraken gemaakt worden25 Natuur honing (0409.00) blijft op are Producten onder unchanged in the EPA agreement, unless .in a future FTA other commitments 40%.made with another 0207 (Vlees en eetbare slachtafvallen van pluimvee, vers, gekoeld of bevroren) waarvan 0207.11 partner outside the EPA17. natural honey will remain on 40%. Products under 0207 (Meat and edible (niet in stukken gesneden, vers of gekoeld), 0207.12 (niet in stukken gesneden, bevroren) en offal, of the poultry of heading 01.05, fresh, chilled or frozen) of which 0207.11 0207.13 (delen en slachtafvallen, vers of gekoeld) blijven op 10%.
DRS PATRICIN BISOEN: RULES OF ORIGIN Bij de presentatie over BISoEn, behandeld wat onder RoO verstaan moet worden, waarom RoO zo 3.2 mS. PAtRIcIn RoO zijn mSc: RUlES of oRIgIn belangrijk zijn bij de onderhandeling over goederen, en aan welke voorwaarden aan de basis van de samenstelling van RoO liggen. In this presentation was captured what should be understood by Roo, why Roo are so important in the RoO worden gedefinieerd om eenduidig de herkomst composition of Roo. negotiations on goods, and which provisions underlie the van een bepaald product vast te stellen, m.a.w. welk land heeft betreffend product voortgebracht. Deze regels behelzen voorwaarden waaraan voldaan moet worden om de herkomst van een product vast te stellen. Roo are defined to univocally establish the origin of a certain product, in other words: which country
Oorsprongregels zijn has produced the good inin het geval does een economisch samenwerkingsverband van belang question and van it meet the stipulated requirements. The rules comprise of vanwege of requirementsinvoertarieven met to qualify as originated in the countrytoegepast, vooral de voordelige that should be die onderling worden afgesproken en of export. a number indien invoerrechten komen weg te vallen. Er moet omdat er een groot fiscaal belang speelt kunnen worden vastgesteld of een goed uit een gebied afkomstig is waarmee het Within the framework of an economic cooperation, Roo are of importance due to the favorable import samenwerkingsverband is aangegaan. Indien de RoO dat niet zouden kunnen vaststellen, dan tariffs mutually agreed and applied, especially when buiten de overeenkomst tegen gereduceerde bestaat de mogelijkheid dat producten van landen import duties are removed. Due to the great importancehet the fiscalbinnenkomen, welke should oneerlijke establish if a good originated vana interest involved, one tot be able to concurrentie en verlies in tarieven of land
partners country/area for which a trade agreement exists. If Roo were not defined and established, the overheidsinkomsten zal leiden. possibility could occur that products of countries outside the trade agreement would enter a partner country at the reduced/or zero tariff rate, leading to unfair competition and the loss of government revenues.
Resultaat overeengekomen MFN Clausule in de EPA.
17 Result as agreed MFn Clause in the EPA.
Verslag Seminaar Economic Partnership Agreement. Implications for the Development of the Domestic Private Sector
The mechanism for applying Roo depends on the following basic principles: A. Composition of the rules: Wholly	Produced;	the	product	should	entirely	be	produced	in	the	partner	country.	For	instance,	rice, should be cultivated, harvested and processed in suriname before being exported to the Eu/before Eu will allow it to enter its market. Not	Wholly	Produced	/	x	%	(Protocol	I,	Annex	II18). For example: under tariff code 2006 are listed vegetables, fruit, nuts, fruit-peel and other parts of plants, preserved by sugar (drained, glace or crystallized). If the inputs (vegetables, fruit, nuts, fruit-peel and other parts of plants) are manufactured such that the value of any materials of Chapter 17 (sugar) used does not exceed 30% of the ex-works price of the product, the product is classified as originating in the country of export. In other words, if the value of sugar in the preserved final product does not exceed 30% of the product at the gate, than the final product is qualified as a product originating in the country of export. Change	in	tariff	code:	if	a	final	product	falls	in	another	HS	category	than	that	of	the	composing	elements its made off, that final product meets the agreed definition of Roo. For example, a painting is a combination of the products canvas and paint, transformed into a work of art by the artist. The tariff line for canvas is 5208.21.90, for paint 3213.90.00 and for the painting 9701.10.10. The final result, the painting, falls in another category as the composing elements, therefore meeting this requirement of the Roo definition and can thus be classified as a product originating in the country of export even if the composing elements, canvas and paint, are imported from countries outside the agreement. B. Proof of origin: the Certificate of origin serves as proof that respective goods are indeed stemming from a partner country. This is to certify that the goods have been produced in that country. In the EPA it has been agreed that the CED is the authority to issue the Certificate of origin, as well as verifying the authenticity of the certificate of imported products. C. investigation afterwards: if the CED has doubts about the certificate submitted at import, the CED inquires where the product originated, and the origin of the product is again investigated.
IR. REn vAn ESSEn: ImPlIcAtIonS, BEnEfItS AnD RISKS fRom thE PRIvAtE SEctoR AS RESUlt of thE EPA
The presentation by Mr. van Essen punctuated the concerns of the private sector, against the background of a dual economy that, one the one hand, depends heavily on the extractive mineral sector, which is labor-saving in nature and mostly managed by multinationals, and, on the other hand, local industries which are not very diversified and needs time, innovative technologies, policy and financing to be able to compete on both the domestic and Eu market.
18 Concerning the Definition of the Concept of originating Products and Methods of Administrative Cooperation.
De vsB vertegenwoordiger haalde vier punten aan om het concurrentievermogen van het lokale ondernemerschap te verbeteren: 1. Diversification of the assortment of products, specifically geared towards exports. It will be necessary to conduct serious sector and sub-sector feasibility studies on local, regional and international markets; 2. Improvement of the business environment on various levels. In a cross-cutting way, policy need to be increased with regard to education, technical training, increase in productivity and monitoring, creation and maintenance of employment (decent work), but most of all the availability of financing. on the company/working level, new innovative technologies need to be studied and introduced, improvement of the managment skills and skills development of employees on various levels. on sectoral level, cooperation of entrepreneurs in clusters/networks to reduce costs to exploit economies of scale. on national level, policy to reduce the cost to do business (energy, financial provisions, telecommunication, transport), but also the reduction in time needed to establish a business (business licenses) en improvement of the physical infrastructure (which has relatively improved). on regional level the unit value cost of transport (air, see and land transport) need to be reduced; 3. Special programs to improve doing business, especially for SmEs and mEs, without excluding larger multinational companies (investment and service provision); 4. optimal use of international institutions for social dialogue with the EPA and beyond. The achieve the above and in relation to point 4, reverence was made to the importance of the CARICoM Regional Indicative Program (CRIP), the national Indicative Program (nIP) and the resources from the 10th EDF of approximately 165 m. These programs and resources should be intensively tapped to assist the domestic private sector to integrate within and beyond the EPA. The allocation of the EDF resources and everything else available with regard to EPA should be a real and true expression of the commitments made under this agreement 19. Furthermore, due to the reciprocity and the opening of the Eu market for professionals, the danger for migration of scare human resources has been emphasized. Based on his experience, the vsB representative could not restrain himself from being skeptical about transforming opportunities into advantages. As such he stood still at the following points: 1. Does the political will exist within the government to introduce the necessary reforms on the fiscal and administrative level and is the government willing to protect its domestic private sector if necessary? 2. how will the economy be diversified without financial resources: donor assistance has terminated (Dutch Treaty Funds) and domestic savings fall short?
19 Png had already indicated that apart from the 165 m, everything else beyond that has been expressed in best endeavor terms than in terms of clear commitments.
3. how can the competitive edge of products be improved? 4. What will be done to improve the investment and business environment on all levels? With these core questions, Mr. van Essen concluded his presentation.
DRS. JEAn DJASmAn: EPA, tRADE In SERvIcES20
The introduction by Ms. Djasman started with explaining the different modes in which a commercial service can be offered on the market and how this categorization into modes is used during negotiations. After this introductions, the different market access commitments from the CF to the Eu were discussed, including the phasing of the CF services market and the terms to enter the CF, but most importantly, to enter the Eu market. At the end of the presentation, the cultural cooperation was examined. Within international trade, services are categorized into 4 types, , according to the way in which the service is delivered/offered, the so-called modes of supply. These 4 modes of supply are: Mode 1 - cross- border supply: the service is provided across the borders of countries. The service provider delivers the service from country A to the consumer in country B, for instance international telephone/internet services. Mode 2 consumption abroad: the service is consumed in a country other than that of the consumer. The service is provided in county A to a consumer from country B, for instance tourism. Mode 3 - commercial presence: the foreign service provider establishes his service in the country where it will be provided. service provider from county A establishes a business in country B, for instance a bank or international school21. Mode 4 - presence of natural persons: natural persons leaving their country to provide a service in another country, for instance fashion models, consultants, etc. During the negotiations, suriname immediately liberated a number of services sectors and attached restrictions to a number of others by liberating them on a certain period in the future and other that will remain closed. An number examples of services sectors that have immediately been liberated are TouRIsM AnD oThER sERvICEs ThAT ConCERn TRAvEllIng, (such as hotels, restaurants, travel agencies, tour operators), AIR TRAnsPoRT (automated reservation systems, maintenance and repair of airplanes),
20 De opsomming van diensten die door suriname en de Eu vrij zijn gegeven, zijn in dit verslag niet uitputtend. Daarvoor wordt naar Annex Iv van de EPA verwezen. 21 RBTT is een voorbeeld van mode 3, commercial presence.
TElECoMMunICATIon, FInAnCIAl sERvICEs (re-insurance), PRoFEssIons (auditors, accountants, tax agents, medical doctors, dentists, neurosurgeons, cat-scan services, veterinarians, midwives and nurses), sERvICEs RElATED To IMMovABlEs, EDuCATIon, hEAlTh CARE AnD soCIAl sERvICEs. services of which entry to Eu companies have been associated with a period, are ARChITECTs, EngInEERs, ConsTRuCTIon InDusTRy AnD CIvIl EngInEERIng, of which buildings and civil engineering works (01 january 013), PhysIo-ThERAPy AnD PARAMEDICAl PERsonnEl, InTRAMuRAl hEAlTh CARE AnD oThER sERvICEs oThER ThAn hosPITAl CARE (01 january 2015), CoMPuTER sERvICEs suCh As CoMPuTER ADvIsoRy BuREAus, sERvICEs RElATED To InsTAllATIon oF soFTWARE, DATA PRoCEssIng, DATABAsEs (01 january 2016), R&D In nATuRAl AnD soCIAl sCIEnCEs AnD huMAnITIEs (01 january 2018) and EnvIRonMEnTAl sERvICEs such as waste collection and processing, collection of toxic waste and recycling (01 january 2018). The Eu has also liberalized a large volume of services including non-services sectors such as AgRICulTuRE, hunTIng AnD FoREsTRy, FIshERIEs, MInIng oF MInERAls, MAnuFACTuRIng, PRoDuCTIon, TRAnsMIssIon AnD DIsTRIBuTIon on oWn ACCounT oF ElECTRICITy, gAs, sTEAM AnD WARM WATER. Also, as indicated earlier, temporary entry of natural persons for business purposes. With regard to cultural cooperation, audiovisual arrangements are made whereby audiovisual coproductions of Eu and CF producers will be qualified as Eu productionso.
Ing. wIlgo BIlKERDIJK: ImPlIcAtIonS, BEnEfItS AnD RISKS fRom thE PRIvAtE SEctoR AS RESUlt of thE EPA
The introduction by the AsFA would have been presented by another person than Mr. Bilkerdijk, still he was willing, at the last moment, to do the presentation. The emphasis of the presentation of Mr. Bilkerdijk concerned the risks associated with the implementation of the EPA and the measures to be taken to protect the private sector; to use his terminology safeguards and safety valves. The AsFA representative opens his presentation by indicating that his organization is welcoming the EPA and the different units, such as the EPA Implementation and Coalition of services Industries. he sees the establishment of an investment code and the proper functioning of a bureau of standards as foremost conditions for successful participation in the EPA.
The speaker referred to the lisbon Treaty to draw attention for the increasing integration of the Eu and the advanced institutional framework they have erected to protect and expand their interests. The EPA was characterized as an agreement of unequal partners and the speaker called for an evaluation, with reference to the period of preferential access into the Eu market whereby 40 of the 48 ACP countries remained poor. Apart from the worries, the speaker was bold enough to admit that the private sector is not anticipating enough on invitation and impulses to achieve progress and to position itself better in the market.
A number of general questions were asked about Roo. The audience wanted to know who is issuing the Certificate of origin (CED) and if a university degree is mandatory for certain professions. The latter should be researched and is one of the issues not properly detailed in the EPA and where Eu countries have the opportunity to erect barriers based on the fact that each Eu country has at its discretion the possibility to maintain their own rules and regulation. The question was also posed, what the status of the current relationship between the CARICoM and DomRep is. With respect to goods, it was said that the FTA comprises of a small number of goods on the Exclusion and Phased Reduction list. Most goods can enter duty free. Concerning services, no agreement exists and negotiations have not yet started. Preparatory discussions are ongoing and suriname still needs to determine a negotiating principle. The inquirer also wanted to know to what extent with respect to services, the same commitments will be made to DomRep as has been done in the case of the Eu. The question was answered by saying that this could be a possibility, but that it was also possible to offer more22. Question relating to the temporary presence of natural persons regarded the relationship between the agreement and the Eu immigration policies, and does access to personal insurance and residence? The answer to this question was that the normal immigration laws and other regulation with respect to residency, insurance, etc. applies and that, apart from the requirements in the EPA, also these would need to be met to enter the Eu market. The agreement does not foresee in special provisions for issues outside of trade. The reaction from the audience was that if one meets all requirements as stipulated in the agreement, but can still not enter the Eu market based on immigration rules, the agreement is in fact of little value. During the seminar the remark was also made that the private sector did not indicate bottlenecks, for instance in the agricultural, transport and construction sector and that this was experienced as disappointing. The question was asked, if prior to concluding the EPA, the private sector had commissioned in-depth studies and analysis of sensitive sectors? The question was substantiated by indicating that when the CRnM was in suriname to learn from the standpoints and needs of the private sector, there was little contribution and effort to be noticed. staff member of MTI recalled that prior to EPA, in 2005, MTI commissioned a study, of which the analysis of possible implications, and which sectors had potential, sWoT analysis of the surinamese economy as well as threats and opportunities 23.
22 The question was also raised if a separate agreement should be concluded with DomRep if they are also partner in the EPA agreement. This question has already been answered and included in the text of this report. 23 METRA Economic Consulting, suriname, Capacity Building in support of the Preparation of the Economic Partnership Agreement, Technical Assistance to the Ministry of Trade and Industry (8 ACP TPs 110 EPA # 059), Paramaribo, December 2005.
The study was financed by the Eu and conducted by METRA Economic Consulting, in cooperation with PRoPlAnP. In reply to the question to what extent an evaluation and adjustment period has been included into the EPA, it was answered by saying that this is formally possible and catered for in the agreement; Article 5 and the joint Declaration. of course, each country has the opportunity and even the obligation to regular and intermittent evaluations24. The question was raised if the period of phased reduction was occurring every 5 years (with 5 year intervals). This question was not answered affirmative but illustrated by an example. The next tariff reduction starts on 01 january 2011, but the reduction is not every 5 years but depends on the basket which contains the respective good. For instance, for product group with hs code 0501.00, tariff reduction starts from 01 january 2011, spread over 3 periods of 2 years and 1 period of 1 year. For 0305.62 (cod fish) this is 3 periods of 2 years and 6 periods of 1 year, followed by 1 period of 2 years before the tariff of zero percent has been reached. For most of the participants it was clear that finding resources and alternative methods to take as much advantage as possible, were of utmost importance. Apart from the resources mentioned in the EPA, Aid for Trade, which currently draws a lot of attention and is championed by the WTo, also offers possibilities. however, many developing countries have voiced their dissatisfaction on various fora with the long and complex procedures before the resources can be obtained. The possibilities to network together in regional context and to cluster were also mentioned as possibilities to efficiently use knowledge, technology, human capacities to cope with competition and to better prepare for trade negotiations.
24 Dit is ook n van de belangrijkste redenen voor het vestigen van een EPA Implementation unit.
4.1 SUmmARY SEmInAR chAIRmAn
All presenters and participants were thanked for their efforts and participation. The importance of the seminar was stressed and the many questions, bottlenecks, uncertainties and anxieties that were raised. The seminar displayed a good impression of the complexity of the EPA, which clearly surfaced during the presentations of the Eu representatives and Png. Market access does not automatically entail market presence and this seminar provided a taste of what is in store for the CF countries in terms of efforts it will take to establish market presence in the Eu. The presentations of the Eu representatives and Png were interesting in the sense that those mentioned first highlighted the advantages and the latter the apparent opportunities should be approached with a good amount of caution and that more evaluation and studies will be necessary to transform opportunities into advantages. It will be important to be aware of the implications and that the studies will assist in making proper preparations. The presentation provided an impression of the contents of the agreed commitments of suriname to the Eu by taking into consideration the various lists of goods and the commitments in terms of services and investments. More depth was expected from the presentations by the private sector, but the sector also acknowledged that they have not paid the necessary attention in the past to the EPA negotiations. The private sector is aware however, that intensive and regular participation is of utmost importance to transform opportunities into advantages and now has the opportunity to participate within the EPA Implementation unit and the Coalition of services Industries that will be initiated by MTI.
cloSIng of thE SEmInAR BY IR. E.P. ISSElt, DIREctoR SURInAmE BUSInESS DEvEloPmEnt cEntER
After the summary by the seminar chairman, the director shortly presented his impression of how the seminar progressed and underlined the fear of the private sector. he assured that the sBC will do all in its power to assist and support the private sector, especially with information about current developments. The director thanked the presenters, the chairman and the participants for their contributions.
This seminar has been a welcome intervention to assemble the private and public sector, together with experts of the EPA, into a meeting and discuss the EPA agreement. The important conclusion that can be drawn from this seminar is that the EPA is a complex and comprehensive agreement that demands additional study and evaluation to transform the opportunities into advantages and to fully understand the implications of this agreement on the domestic market, local industries and employment. In suriname both the private and public sector are not fully aware of these implications. The studies and evaluation can create a fundament for informed policymaking. The private sector will have to make more pointed and organized efforts to identify where they are witnessing opportunities and where necessary measures are needed for protection, if possible. Even though a number of studies have already been done with regard to implications, its important to: Evaluate	if	they	are	still	up	to	date	and	to	also	evaluate	where	the	private	sector	needs	more	information to make policy for the export and domestic market. A number of those studies have also identified and recommended the institutional framework necessary to make trade policy in a more coordinated manner. In this vain, the establishment of an inter-departmental trade commission comes to mind that has not yet been materialized25; Studies	where	companies	in	various	sectors,	if	desired	in	the	form	of	clusters,	can	work	together	to reduce costs per product, to raise the technological level and share it with the goal to achieve economies of scale; Intensive	participation	in	institute,	such	as	the	EPA	Implementation	Unit	and	the	Coalition	of	services Industries, which will initially be established by the government and subsequently should be adopted by the private sector; Participation	in	regional	institutes	and	the	cooperation	to	establish	them	so	that	similar	interests,	especially with regard to technology, regional sector policy and regulation can be promoted; The	establishment	of	a	unit	by	the	private	sector,	in	first	instance	geared	towards	the	EPA	that	can assist with information how to enter the Eu market. This unit should, for example, investigate what are the different laws, rules and regulations, procedures, standards, forms, institutes that have to be taken into account to supply a certain good or service on the Eu market. With the experience generated, this unit could extend this service to other markets such as CARICoM, DomRep, Canada, etc; A	unit	focused	on	the	protection	possibilities	that	the	EPA	allows	or	are	available	for	the	domestic	and the Eu market, to protect legal and natural persons against irregularities and, if necessary, to prepare legal cases26; A	unit	that	makes	preparations,	in	the	form	of	projects,	to	gather	financial	and	technical	assistance
25 METRA Economic Consulting, suriname, Capaciteitsopbouw ter ondersteuning van de voorbereiding van de Economische Partnerschap overeenkomst, Technische Assistentie aan het Ministerie van handel en Industrie. (8 ACP TPs 110 EPA # 059), Paramaribo, December 2005. Dr. Craig van grasstek, A national Trade strategy for suriname. Washington Trade Reports, 9 june 2006. 26 ook de beschermingsmogelijkheden die de WTo biedt, dienen in dit kader begrepen te worden.
for the private sector in general (institutional strengthening) and improvement of competitive edge of specific sectors. This would be a welcome support for and cooperation with the Ministries of MTI and Plos, which, among others, have the task to prepare project proposals and should formally ensure that the resources are available. This would instill the private sector with the knowledge and skill of the various international assistance possibilities and related procedures and can thus take more advantage of the available international financial resources. The indicated units could all be placed under the sBs; To	inform	the	private	sector,	the	government	and	the	public	in	general,	though	meetings,	of	the	progress, bottlenecks and successes of domestic companies, and the way in which successes have been achieved and to document these for the future. This could be done by commissioning research assignment through the university.
1. Agenda Seminar 2. Introductions en Presentations 3. curriculum vitaes 4. lijst van Aanwezigen Seminaar 16 december 2009
1. AgEnDA SEmInAR
PRogRAmmE: seminar: Date: Time: location: Economic Partnership Agreement (EPA): Implications for the Development of the Domestic Private sector Wednesday, December 16, 2009 08.30 14.45 hours Conference Room Chamber of Commerce and Industry (kkF), Business Booster Building, Trade Fair Complex, Prof. W.j.A. kernkampweg 37 - Paramaribo Chairman: Drs. Imro san A jong The suriname Business Forum (sBF) and the suriname Business Development Center (sBC) organizes a seminar with the purpose to enhance the dialog process between the government and the private sector and to better understand the implications of EPA over the private sector and over the economic development of the country, as such the seminar will focus on 3 specific issues: 1. Why EPA is important for suriname. 2. What are the implications and impacts over businesses and over the development of the country. 3. how EPA should be implemented: the role of the government and the role of private sector. AgEnDA: session 1: opening session 08.30 09.15 hours: 09.15 09.20 hours: 09.20 09.25 hours: 09.25 09.30 hours: 09.30 09.35 hours: 09.35 09.50 hours: Registration/test video conference facilities (coffee/juice/snack) Ir. Ernie P. Isselt Director suriname Business Development Center: Introduction overview seminar programme Day chairman- Imro san A jong Ing. orlando dos Ramos - Chairman suriname Business Forum: Welcome Mrs. Esmeralda hernandez Aragones - Charge dAffaires Delegation of the European union to suriname: speech Drs. Clifford Marica - Minister of Trade and Industry (hI): opening speech To explain the reason and goals of this seminar: engagement of suriname in the context of the signed EPA agreement
session 2: video conference overseas presentations 09.50 10.30 hours: 10.30 10.50 hours: 10.50 11.30 hours: Presentations EC Brussels - Mr. Remco vahl.: The Caribbean EPA: outcomes and opportunities for suriname Questions and Answers Presentation uWI Port-of-spain Prof. norman girvan: What are the constraints that EPA represents and what are the implications in joining this economic partnership agreement 11.30 12.15 hours: 12.15 12.40 hours: Questions and Answers Coffee break
session 3: Implications and discussions 12.40 13.15 hours: Presentations hI: Mrs. yvette Rokadji llM / Drs. Paul soebai: The EPA: Market access for goods Drs. Patricien Bisoen: Rules of origin 13.15 13.25 hours: Presentation Director suriname Trade and Industry Association (vsB) Ir. Rene van Essen: Implications, benefits and risks from the private sector as result of the Economic Partnership Agreement 13.25 13.45 hours: 13.45 14.00 hours: Presentation hI Drs. jean Djasman: The EPA: Trade in services Presentation Representative Manufacturers Association suriname (AsFA) Ing. Wilgo Bilkerdijk: Benefits and risks from the private sector and implications Economic Partnership Agreement (EPA-CF-EuRoPEAn unIon) 14.00 14.30 hours: Questions and Answers
session 4: Closing session 14.30 14.40 hours: 14.40 14.45 hours: 14.45 hours: summary Director sBC Ir. E.P. Isselt: Thanks / Closing snacks
2. IntRoDUctIonS AnD PRESEntAtIonS
InlEIDIng IR. ERnIE P. ISSElt, DIREctEUR SURInAmE BUSInESS DEvEloPmEnt cEntER Seminar Economic Partnership Agreement (EPA): Implications for the Development of the Domestic Private sector
Introductie Dames en heren goedemorgen, Mijn naam is Ernie Isselt en ik ben directeur van het suriname Business Development Center de werkarm/ executive office van het suriname Business Forum. Een hele korte introductie van dit evenement alvorens de leiding over te dragen aan de dagvoorzitter drs Imro san A jong. suriname zal moeten deelnemen en integreren in de Wereld Economie en wij moeten naar wegen zoeken om voordelen te halen uit dit integratieproces. De World Trade organization geeft de richting aan langs welke normen, standaarden en voorwaarden zo een integratie in de wereld economie moet plaatsvinden Een Economic Partnership Agreement is een overeenkomst welke het suriname mogelijk maakt cq een manier biedt om te integreren en wel specifiek met Europa en om dus ook (economisch) deel uit te kunnen maken van dit werelddeel. EPA heeft zowel voordelen als nadelen of kosten of een prijskaartje voor onze Domestic Private sector De Domestic Private sector wenst echter voorbereid te zijn voor dit soort overeenkomsten en kijkt uit naar methoden om haar deelname in dit integratie proces te vergroten door haar concurrerend vermogen te ontwikkelen. De lokale Private sector kan dit niet alleen doen en heeft de ondersteuning nodig van de overheid voor dit integratie proces in de wereldeconomie, door het vestigen van instituten, het maken van wet en regelgeving etc die deze committering ondersteunen. 40
sBF/sBC organizeren dit seminar met als doel het dialoog proces tussen de overheid en de private sector te verbeteren en om de consequenties van EPA voor de private sector en voor de economische ontwikkeling van het land beter te begrijpen; dit seminar zal daarom focussen op 3 specifieke aandachtspunten: 1. Waarom is EPA belangrijk voor suriname 2. Wat zijn de gevolgen en de invloeden op het bedrijfsleven en op de ontwikkeling van het land 3. hoe zou EPA geimplementeerd moeten worden: de rol van de overheid en de rol van de private sector. Ik geef de leiding hierbij over aan de dagvoorzitter de hr. drs. Imro san A jong. Paramaribo, 16 december 2009
oPEnIngStoESPRAAK vAn DE mInIStER vAn hAnDEl En InDUStRIE, DRS. c.P. mARIcA27 Concept Toespraak van de Minister van handel en Industrie dhr. drs. Clifford P. Marica bij de opening van het seminar van de suriname Business Development Center (sBC): Economic Partnership Agreement (EPA): Implications for the Development of the Domestic Private sector Woensdag 16 december 2009 09.15 uur kkF Beurshal Directeur van de suriname Business Development Center Ir. Ernie P. Isselt, voorzitter van de suriname Business Forum Ing. orlando Dos Ramos, Chargee dAffaires van de Delegatie van de Europese unie in suriname Mrs. Esmeralda hernandez Aragones. geachte aanwezigen, ook van mijn kant een van harte goedemorgen. Als Minister van handel en Industrie die belast is met de internationale handel en onder meer de implementatie van de Economic Partnership Agreement, is het voor mij een waar genoegen om vandaag dit zeer belangrijk seminaar van de suriname Business Development Center getiteld EPA: Implications for the Development of the Domestic Private sector te openen. De EPA tussen de CF landen en de Europese gemeenschap, is een omvangrijke overeenkomst, waar niet slechts de handel in goederen, diensten en daaraan gerelateerde handels, wettelijke en institutionele zaken zijn opgenomen, maar ook is opgenomen een overkoepelend ontwikkelingshoofdstuk dat ondersteuning zal bieden aan deze onderwerpen en het regionale CARICoM integratieproces. nu de EPA in de ratificatie fase zit, valt het mij op dat de kritiek op de EPA enorm groot is. Men zou kunnen stellen dat de EPA een zeer hete start meemaakt. De kritiek op de EPA komt vanuit alle hoeken van de samenleving en is natuurlijk goed en constructief, omdat het ons alert maakt op de mogelijke dreigingen die kunnen voortvloeien uit de EPA. Maar, de kritiek moet ook niet gebaseerd zijn op angst en onwaarheden, daarom zijn wij hier vandaag de dag om duidelijkheid hierin te brengen.
27 De werkelijke toespraak van de minister kan op enkele plaatsen verschillen van de feitelijke tekst die door het ministerie als toespraak van de minister is aangeboden.
suriname heeft sinds het begin in 2005 actief geparticipeerd aan de onderhandelingen. voor deze onderhandelingen hadden wij de input nodig van het bedrijfsleven en er zijn daartoe vele nationale consultaties gehouden. Deze onderhandelingen zijn definitief afgesloten op 16 december 2007, waarna de ondertekening van deze overeenkomst plaatsvond op 15 oktober 2008 in Barbados. heden ten dage, moeten wij ons nu richten op de implementatie van dit handelsverdrag. Dit is noodzakelijk om de voordelen te halen die de EPA biedt. zoals in elk handelsverdrag zijn er voordelen en bedreigingen. Met dit verdrag zullen wij ons niet alleen moeten focussen op de voordelen, maar juist samen werken om de bedreigingen in kaart te brengen en het hoofd te bieden. vanwege de omvangrijke aard van de EPA en de eveneens talrijke Implementatie Issues, is er een Implementation Roadmap ontwikkeld die binnen een tijdschema alle implementatie punten tracht te identificeren en uit te voeren. om het implementatie proces te cordineren en te monitoren, heeft het MhI reeds initiatieven ondernomen om een EPA Implementatie unit op te zetten. Deze unit zal zich primair richten op het toezicht op de implementatie van de internationale verplichtingen van suriname binnen de EPA op nationaal niveau. verder zal deze unit in dat kader de communicatie en cordinatie tussen overheidsinstanties en de private sector, die verantwoordelijkheid zijn voor de ontwikkeling en uitvoering van het handelsbeleid, bevorderen. Deze Implementatie unit zal bestaan uit vertegenwoordigers van de Ministeries van handel en Industrie, Financin, Planning en ontwikkelingssamenwerking, landbouw, veeteelt en visserij, justitie en Politie en de organisaties, AsFA, vsB en kkF. naast voornoemde taken en verantwoordelijkheden is n van de belangrijkste taken van deze unit het ontplooien van publieke bewustwordingsactiviteiten hetgeen onder meer inhoudt duidelijk de mogelijkheden, uitdagingen en bedreigingen van de EPA aan de gemeenschap in het algemeen en de private sector in het bijzonder uitleggen. Tijdens het vorig seminaar van mei van dit jaar dat ook door sBC was georganiseerd heb ik de wens uitgesproken dat wij gezamenlijk verder gaan werken om ervoor te zorgen dat, dat seminaar niet een eenmalige activiteit zou zijn, en u ziet het, vandaag zijn wij als ministerie weer hier om samen met de private sector informatie over de EPA met u te delen. Ik heb meteen ingestemd om mijn medewerking te verlenen voor het ter beschikking stellen van mijn staf voor het verzorgen van presentaties en om nadere informatie omtrent de EPA te verstrekken, omdat dit helemaal past binnen de taken en verantwoordelijkheden van mijn Ministerie, evenals die van de op te zetten Implementatie unit, namelijk publieke bewustwording. 43
het MhI heeft zich altijd ingespannen om het bedrijfsleven te faciliteren teneinde continuteit van productie en een soepel verloop van het handelsproces te garanderen. Dames en heren, Ik wil van deze plaats uit de initiatiefnemers, en allen die hebben bijgedragen aan de totstandkoming van dit seminaar, dankzeggen voor het goede werk dat zij verricht hebben en natuurlijk zoals altijd wil ik hen blijven aanmoedigen om op de ingeslagen weg voort te gaan en bouwen aan de verdere ontwikkeling van het surinaamse ondernemerschap. Ik wens u allen een succesvol seminaar toe en verklaar hierbij dit seminaar voor geopend. Dank u.
PRESEntAtIon outcomes and opportunities for Suriname
Dhr. Remco vahl, fabien gehl, Rico Zampetti European commission
PRES SENTATIE DHR. REMCO VA AHL, FABIEN GEHL, RICO ZAMPETTI, EUROPEAN COMMISSION Z U O
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SPEAKIng notES noRmAn gIRvAn SURInAmE: PRoS AnD conS of thE EPA A. Some introductory points EPA is not just a trade agreement. It includes The Trade	in	goods Services Investment Intellectual	property Public	procurement Competition	policy Labour The	environment Development	cooperation The	obligations	in	labour,	the	environment	and	development	cooperation	are	stated	in	general terms. liberalisation and rules tend to be quantified and time-bound. European and Caribbean officials stress the opportunities available from the EPA. In many cases e.g. for the export of goods, already existed and for various reasons Caribbean business have not been able to take significant advantage of them. In other casesnotably services, the access granted under the EPA is highly conditioned. The main change in the EPA from what obtained before is reciprocity. note that no new development assistance has been provided under the EPA. Eu officials have always insisted on that. What has happened is that funds provided under existing programmes, notably the European Development Fund (EDF) are being re-allocated to EPA Implementation, at least the regional allocation. The suriname EDFnIP document for 2008-2013, allocates over 88% to the transport sector, as before. Final general pointremember to take into account knock-on effects of EPA to other trade relations MFN	Clause	-	Anything	given	to	Brazil	&	Mercosur,	China,	India,	etc	that	is	more	favourable,	the Eu will be entitled to. This cramps south-south Trade agreements; e.g. a CARICoMMERCosuR FTA Same	applies	to	Canada	and	the	US.	E.g.	if	CARICOM-CANADA	FTA	frees	all	trade	in	10	years, CARICoM will have to give this to the Eu if it asks for it. The	DR	is	also	entitled	to	everything	given	to	the	EU	in	the	EPA	(Regional	Preference	Clause). so the EPA frees CARICoM-DR trade. not clear what will remain of the CsME after the EPA is fully implemented.
SURInAmE EconomY (from nIP oct. 08; p. 11) The public sector accounts for 40% of gDP. In the mining sector, alumina and gold represent more than 80% of total exports and 15% of gDP. Beyond the mining sector, a thin layer of manufacturers produce a small assortment of generally low quality products. As a consequence, suriname imports mainly consumer goods and almost all intermediate and capital goods. The service sector, accounting for 45% of gDP, is dominated by trade and transport activities. The fastest growing services sectors since 1998 have been personal services and transport and communications. In 2001, financial services overtook trade, restaurants and hotels as the single most important service activity in the country. The share of agriculture in gDP increased slightly between 1998 and 2002, from 8.4% to 9.5%. In contrast, the share of manufacturing in gDP declined steadily over the same period, even though the sector grew in real terms. The informal sector is also significant and may increase current estimates of gDP by up to 16% according to the Bureau of statistics.
B. trade in goods EPA locks in DFQF Market Access, except for certain commodities in transitional periods. note that: surinames exports to the Eu, consist mainly of primary commodities. (17% of total exports to Eu; Caricom (18%) and to nAFTA countries. suriname has had DFQF access to the Eu for most of its exports or many years under the lom and Cotonou agreements. But suriname has not been able to diversify its exports to the Eu, particularly into higher value goods and services which affords higher living standards for employees and a higher rate of growth, and greater resilience, for the economy one reason is that tariffs are not the only barrier to be overcome in a foreign market. For example, there are Rules of origin, which have to be satisfied for the goods to qualify for duty-free treatment. The Eu Roo have been criticised in the past as making it difficult for small firmsthe majority of firms in the ACPto qualify. o the value added thresholds used in the current rules are so much higher than those typical of commercial firms within poor countries often twice or three times as high - that certain lessons can be drawn. oDI Briefing Paper no 12m, Creating Development Friendly Rules of origin, p. 7, 2/2008) http://www.odi.org.uk/resources/download/4568.pdf The Eu had promised to overhaul its Roo for the EPAs to make them simpler. so far it hasnt done so. It did however adopt new Roo for Textiles and Clothing; Fish and some Agricultural Products. With the exception of textiles and clothing, the changes to the rules do not represent a major departure from previous Roo for the majority of EPA and IEPA signature countries (naumann 3/2008 Ex sum) 52
Besides Roo there are other Technical Barriers to Trade. In food products there are sPs. (see Annex from the EC website). CFs margin of preference is coming down as the Eu negotiates other FTAs with other countries, e.g. bananas, Central and south America, India. The general principle here is that Market Access does not guarantee Market Presence. Besides nTBs such as Roo and TBT, you have to get into distribution networks, advertising, etc. This is not easy for small firms. so the most likely result is that where there are some export opportunities suriname firms may be invited to become junior partners with large Eu firms that are well positioned in distribution networks. junior partnerships have some advantages, but also disadvantages (the senior partner has superior bargaining power, can influence distribution of benefits, can substitute another source when it suits him.)
c. Import competition Phasing of liberalisation (see Table in Annex). of the CF countries, suriname starts with one of the lowest percentages of imports from the Eu duty-free (9%). 9% is to be liberalised in years 3-5; 20% in years 6-10, and 27% in 11-15. surinames exclusion list is about twice the CF average (27%). however this is to be set against the fact that 91% of existing imports are dutiable; so that dependence on fiscal revenue and tariff protection is probably higher than most other CF countries. There are some surinamese products which are in competition with European imports, such as rum, beer, wooden furniture, cleaning products, fats, and ice cream. But there is significant potential to develop a number of areas of the economy (in agriculture, services and industry) where suriname has a competitive advantage. As for the fiscal impact of an EPA, in 2004 suriname earned us$11.5 million in import duties on goods of Eu origin. This amount is at risk in an EPA by 2012 nIP 16. ?? The infant industry protection that is allowed under the EPA is restricted to industries that already exist in suriname. you cannot introduce tariffs and quantitative restrictions that do not now exista standstill clause A development EPA ought to include targeted support to these industries with competitive advantage that is quantified, time-bound and capable of being monitored and legally enforced, in the same way that the tariff reductions are.
D. Services and Investment. A few points The services aspect of the EPA has generally not received the attention it deserves. The focus has been on the new opportunities supposedly made available. These opportunities are highly conditioned (more on this later). And it is equally important to consider the commitments for liberalisation at home The commitments are accompanied by detailed rules on the regulation of courier services, tourism, telecommunications, financial and maritime transport services. These restrict CF governments ability to regulate these industries except for legitimate policy objectives, which could be disputable Commitments under Mode 3Commercial Presenceamount to agreement to allow foreign direct investment in the sectors. CF countries have agreed to liberalise FDI in several non-service sectors. This needs to be carefully studied. Again, very little has been said about this. The EPA has an over-arching standstill clause on services that prohibits any new restrictions on market access (cross-border supply and commercial presence) and national treatment of Eu service firms; even for sectors not committed under the EPA. The only exceptions to this are for public services (the meaning of this is disputable); and where reservations have been explicitly entered in the schedule of commitments. In theory, suriname as CF MDC has liberalised 75% of its service sectors as to cross-border supply and commercial presence (FDI) to Eu service firms however it is not easy to extract exactly what suriname has committed itself to, and therefore what level of competition businesses will be exposed to, without a detailed reading of Annex 4:vI of the EPA. The format of Annex 4:vI does not make this easy: it needs to be read in conjunction with the WTo gATs agreement; and it utilises terms and codes that may be inaccessible to one unfamiliar with the background. surinames commitments contain several reservations as to access and government policies that also need to be taken into account The EPA has a rendezvous clause which requires renewed negotiations on services liberalisation within five years. This means that even where CF states have not liberalised under the EPA; or entered reservations on liberalised sectors; there will be continued pressure to liberalise If it has not already done so, The Trade Ministry should probably be asked to prepare and publish a detailed analysis of surinames commitments and their implications A close reading of surinames commitments by an expert in this field came up with this: Phasing	in	a	number	of	changes	between	2015	and	2018	for	e.g.	physios	and	paramedics	(2015), foreign investment in computer and data base services (2016), foreign investment in R&D from 2018; technical testing and analysis 2018; aspects of construction (2013),; and range of environmental services (2018); Residential health facilities services other than hospital services (2015). 54
Cross	border	commitments	are	quite	extensive,	including	data	processing	(BPO)	and	data	base (may include data storage), investigation and security, primary and secondary private education, libraries, archives, museums & other cultural services, news agency. some restrictions e.g. technical testing unbound. not bound for environmental services Extensive	opening	of	professional	services	on	market	access	and	national	treatment,	including heath care services, accounting, engineering, architecture, urban planning Health	sector:	Extensive	opening	of	professional	services	on	market	access	and	national	treatment on medical and dental, epidemiology, midwives, nurses, paramedics. Includes unrestricted cross border provision Education	excludes	non-profit,	public	&	publicly	funded	entities.	Reasons	for	variations	on different education categories are not obvious. not clear why primary and secondary education are unrestricted for cross border supply, but are for higher education. Environmental:	unrestricted	FDI	phased	in	by	2018	for	sewage,	refuse	disposal,	hazardous	waste, waste and waste water management, recycling, subject to technology transfer requirements. Courier	services,	unrestricted,	cross	fertilises	to	restrictions	on	regulatory	framework	for	universal service obligations, cross-subsidisation from postal, Telecoms	commitments	carefully	considered	on	market	access,	with	extensive	NT	commitments once Eu enters the market. Construction	wide	open.	Cross	fertilizes	with	professional	services	(architects,	engineers) Wholesale	and	retailing	appears	extensive Financial	services,	very	limited	EPA	commitments	to	reinsurance	and	retrocession Tourism	unrestricted	in	all	modes	for	hotels,	restaurants,	travel	agencies,	tour	operators,	etc, meaning cant restrict any activities for locals. Right of foreign suppliers in airport related services. Entertainment	is	unrestricted	for	96191,	96194,	96195.	News	agency	and	entertainment	reserve the right to use EnTs for Css and IP. Transport:	Detailed	limitations	on	maritime,	especially	on	foreign	investment.	Unlimited	commitments on rail and largely unrestricted on road, except FDI in freight road transport. surinames investment commitments: A negative list approach is used for Agriculture, hunting and forestry; Fishing; Mining and quarrying; Manufacturing. This means that these sectors are open to Eu investment except where activities are explicitly excluded by surinames schedule in the EPA. The following reservations by suriname are notable. Land	holding:	Foreign	companies	and	individuals	wishing	to	hold	property	need	to	first	obtain a licence. Investment:	Non-residents	are	required	to	obtain	a	permit	from	the	Foreign	Currency	Commission to acquire shares in a corporate legal entity.
Agriculture	and	hunting:	no	other	restrictions	reserved	Forestry	and	logging:	Nationality	and	residency	are	required	to	conduct	activities	in	this	sector. Fishing:	The	owner	of	a	foreign	vessel	can	only	obtain	a	licence	if	a	fishing	treaty	exists	between the Republic of suriname and the state of registration of the foreign fishing Mining	and	quarrying:	The	State	reserves	the	right	to	adopt	or	maintain	measures	concerning activities in this sector. The state reserves exclusive rights in the economic zone, continental plateau and the seabed for prospecting and exploration. Where a license may be granted for these activities residency is required. All minerals within the territory of the state of suriname, the territorial sea its bottom and sub-soil as defined in the law are the property of the state.
E. Export opportunities in services Argument that the majority of CF gDP and exports now consists of services and that is where the future lies; and the EPA open up many new opportunities Most CF services exports are tourism and international financial services provided through off-shore banking; which do not need an EPA (the latter is under pressure, too) The development cooperation for tourism is expressed in best endeavour language The Eu opening under the EPA consists mainly of professional services. These occupations are already favoured by the selective migration policies of the developed countries. unemployment and poverty are hardly concentrated among accountants and engineers. The only (semi) nonprofessional categories are entertainers, fashion models, and chefs de cuisine. The first of these have not had a difficulty in getting into Europe in the past. Most important, access provided under the EPA is highly conditioned. Essentially it leaves in the hands of individual member states the power to decide who they will take and who they wont (see Annex for details). similar conditions are entered for Contractual service suppliers note that the conditions for management personnel and graduate trainees that are required for commercial presence are very broadly and flexibly stated; and the permitted duration is 3 years (management) and 1 year (trainee).
f. fInAl notE: the EPAs mandatory Review clause At the 11th hour a joint Declaration was inserted in the context of our continued monitoring of the Agreement within its institutions, as provided for under article 5 of the Agreement, a comprehensive review of the Agreement shall be undertaken not later than five (5) years after the date of signature and at subsequent five-yearly intervals, in order to 56
determine the impact of the Agreement, including the costs and consequences of implementation and we undertake to amend its provisions and adjust their application as necessary. Article 5 of the EPA states The Parties undertake to monitor continuously the operation of the Agreement through their respective participative processes and institutions, as well as those set up under this Agreement, in order to ensure that the objectives of the Agreement are realized, the Agreement is properly implemented and the benefits for men, women, young people and children deriving from their Partnership are maximized. The Parties also undertake to consult each other promptly over any problem that may arise. It is notable that the jD imposes no a priori qualifications on the scope and nature of these amendments and adjustments allowed under the review. This could open the way for addressing the EPAs contentious clauses. To do so, someone would have to set up a comprehensive system to collect and analyze information on the impact of the EPA. This has not yet been done. n. girvan 15 December 2009
Annex 1: A note on Public Procurement The EPA contains a separate and detailed chapter on Public Procurement. There are differing interpretations of whether these amount to a commitment to open PP markets to Eu suppliersthe EC and the CRnM say no, many government officials and others say yes. The relevant provisions are as follows: Article 167.1 The Parties and the signatory CF states shall ensure that the procurement of their procuring entities covered by this Chapter takes place in a transparent manner according to the provisions of this Chapter and the Annexes pertaining thereto, treating any eligible supplier of either the signatory CF states or the EC Party equally in accordance with the principle of open and effective competition. Article 167.1A b) With respect to any measure regarding covered procurement, the EC Party and the signatory CF states, including their procuring entities: (i) shall endeavour not to discriminate against a supplier established in either Party on the basis that the goods or services offered by that supplier for a particular procurement are goods or services of either Party; (ii) shall not treat a locally established supplier less favourably than another locally established supplier on the basis of degree of foreign affiliation to or ownership by operators or nationals of any signatory CF state or of the EC Party. A.3. subject to paragraph A.4, each Party, including its procuring entities, shall with respect to
any measure regarding covered procurement, accord to the goods and services of the other Party and to suppliers of the other Party offering the goods or services of any Party, treatment no less favourable than the treatment the Party, including its procuring entities, accords to domestic goods, services and suppliers. A.4. The Parties shall not be required to provide the treatment envisaged in paragraph A.3
unless a decision by the joint CF-EC Council to this effect is taken. That decision may specify to which procurements by each Party the treatment envisaged in paragraph A.3 would apply, and under which conditions. (b) (ii) seems to open the way towards Eu firms forming joint ventures with local firms to bid on covered procurements A4 certainly opens the way for the Eu to exert pressure through the joint Council to apply A.3.
Annex 2: Summary cf Import liberalisation Schedules
Annex 2 Summary CF Import Liberalisation Schedules % and timing of imports to be liberalised COUNTRY ANTIGUA / BARBUDA BAHAMAS BARBADOS BELIZE DOMINICA DOMINICAN REPUBLIC GRENADA GUYANA HAITI JAMAICA ST. KITTS AND NEVIS ST. LUCIA ST. VINCENT/GREN SURINAME TRINIDAD/TOBAGO CF 0 7 32 48 13 17 53 9 53 60 56 18 38 8 9 73 53 5Y 7 2 0 6 3 8 14 1 0 0 16 0 7 9 0 3 10 Y 25 13 2 10 18 5 20 7 1 1 16 4 14 20 1 5 15 Y 35 34 24 27 27 21 25 18 7 26 17 22 30 27 18 22 20Y 2 3 1 1 2 3 2 2 2 2 2 5 2 2 0 2 25Y 2 2 1 3 1 5 3 1 4 1 2 2 2 3 1 2 EXC 22 13 23 39 27 5 28 18 27 13 29 29 37 28 6 13
Annex 3: Exporting to the EU (from Ec website)
Annex 3. Exporting to general requirements the EU (From EC Website)
General requirements http://exporthelp.europa.eu/display.cfm?page=rt/rt_generalRequirements html&docType= main&languageId=En
http://exporthelp.europa.eu/display.cfm?page=rt/rt_GeneralRequirements.html&docType= main&languageId=EN
This section will tell you which documents (transport, customs, insurance, commercial) must
This section will tell you which documents accompany all products entering the Eu. (transport, customs, insurance, commercial) must accompany all products entering the EU. General Requirements for all products
Commercial invoice Freight documents Packing list Overview overview
Customs Value Declaration Freight insurance Single Administrative Document (SAD)
general information applicable to all imported goods EU product classification system, general	information	applicable	to	all	imported	goods	-	EU	product	classification	system,	countries
countries forming the customs union, how the single market works, customs procedures, etc. basic	basic description most	significant	import/marketing	policies public health, environment, description	of	of most significant import/marketing policies	-	public	health,	environment,	technical standardisation, labelling and packaging, technical standardisation, labelling and packaging, etc. etc.
forming the customs union, how the single market works, customs procedures, etc.
general information value	added	taxes definition and scope, applicable laws, laws,	general	information	on	on value addedtaxes	-	definition	and	scope,	applicable	taxabletaxable
transactions, tax rates, etc.
general	information	on	excise	duties	-	definition	and	scope,	applicable	laws,	taxable	events	and	and products (alcohol, tobacco, energy products, etc.), rates, etc. products (alcohol, tobacco, energy products, etc.), rates, etc.
For details of the legal requirements or taxes applicable in a particular EU country for a particular product, see the Specific requirements section.
general information on excise duties definition and scope, applicable laws, taxable events
EconomIc PARtnERShIP AgREEmEnt: ImPlIcAtIonS foR thE DEvEloPmEnt of thE DomEStIc Verslag Seminaar Economic Partnership Agreement. Implications for the Development of the Domestic Private SectorPRIvAtE SEctoR 16 dec. 2009
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Annex 4: Eligibility requirements for Independent Professionals
Annex 4 Eligibility requirements for Independent Professionals
Conditions of access of IPS (Art 83)
Must be engaged in the supply of a service on a temporary basis in the other Party and must have obtained a service contract not exceeding 12 months. At least 6 years professional experience. A University degree or equivalent qualification and professional qualification required by local regulations. Mutual recognition agreements necessary Stay limited to cumulative period of 6 months in any 12 month period or duration of contract, whichever is less. Other discriminatory limitations are allowed, including limitations on the number of employees permitted entry as a result of economics needs tests in the receiving countries. Other conditions are specified in Annex 4.
SURINAME Direction of Trade 2008 Trade Block Imports as a Percentage of Total Imports (%) ASEAN European Union CARICOM Mercosur Nafta Unaffiliated Countries 1.6 22.7 22.8 3.8 25.2 23.9
Exports as a Percentage of Total Exports (%) 0.07 17.2 18.6 1.5 32.4 30.3
PRESEntAtIon EPA, markttoegang voor goederen (mA)
mr. Yvette Rokadji en Drs. Paul Soebai
PRESENTATIE MR. YVETTE ROKADJI EN DRS. PAUL SOEBA EPA, MARKET ACCESS GOEDEREN E A . AI: R
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PRESEntAtIon Rules of origin
Drs. Patricin Bisoen
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PRESENTATIE DRS PATRICIN BISOEN: RULES OF ORIGIN E C R
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SPEAKIng notES Ing. REn vAn ESSEn, vSB Presentatie van de vSB (vereniging Surinaams Bedrijfsleven) m.b.t. Implicaties, voordelen en risicos voor het Bedrijfsleven als gevolg van de Economic Partnership Agreement (EPAcARIfoRUm-EURoPESE UnIE) het is voor de vsB, de vereniging surinaams Bedrijfsleven, een grote uitdaging om aan het eind van een seminar met nieuwe of andere ideen of stellingen te komen over de implicaties, de voordelen en de risicos, die het surinaamse Bedrijfsleven kan verwachten als gevolg van het in werking treden van de Economische Partnerschap overeenkomst, die door de Europese unie, aangegaan zal worden met de CARIFoRuM regio. het betreft hier het vrije verkeer in goederen en diensten. u heeft hedenmorgen reeds uitvoerige uiteenzettingen over de voor- en nadelen van de EPA aangehoord, waardoor ik slechts kan volstaan met wat kanttekeningen. De vsB werd in 1950 opgericht en sindsdien behartigt deze organisatie de belangen van de werkgevers op het nationale, regionale, continentale en mondiale nivo. Daarbij zijn wij een onderdeel van respectievelijk de Ilo, IoE, CEC, CEATAl, EulAC e.a. overkoepelende groepen van non-state-Actors. In al deze organisaties staat de creatie en het behoud van arbeidsplaatsen centraal, waarna er groei wordt bereikt van het BBP. Indien wij de 7 doelstellingen van de z.g. EPAs voor ogen houden, dan komt allereerst de noodzaak naar voren om voor de goede orde eerst vast te stellen, welk deel van de economie van ons land gevolgen zal kunnen ondervinden van de handelsovereenkomst met de Europese unie. De exportopbrengsten van suriname zijn in de laatste jaren opgelopen tot meer dan 1500 miljoen usD, waarvan meer dan 80% voor rekening komt van de mijnbouwsector. naast de 3 mijnbouwexporten ( goud, aardolie en aluinaarde) wordt tevens gexporteerd: hout, rijst, garnalen, bananen, groenten e.d. Ik wil over de structuur van onze exporten nog het volgende in herinnering brengen. het overgrote deel van onze exporten is reeds gentegreerd in de wereldeconomie en suriname levert world-class-producten aan: noorwegen, Canada, de usA, japan, nederland, etc. het moet ook wel vermeld worden dat in de mijnbouwsector minder dan 5% van de arbeidsmarkt werkzaam in is. Dit is het grootste probleem in het land en wij moeten eigenlijk liever onze energie gebruiken om die zeer afhankelijke situatie te verbeteren. Met andere woorden: het aangaan van een Eu-CARIFoRuM-EPA zal niet onmiddellijk een einde maken aan onevenwichtigheden, zoals hiervoor is aangehaald.
De waarheid is dat ons suriname nogal wat interne problemen heeft, die in ons land eerst aangepakt zullen moeten worden, voordat wij gaan denken aan de integratie van het resterende deel van onze economie in de wereld-economie. Wij hebben veel te lang ons blindgestaard op enkele producten uit de grootlandbouw (rijst, bananen, suiker) waarbij vooral de subsidies van de Eu aantrekkelijk waren. Met de WTo op komst zullen deze snel verdwijnen en worden onze producten niet meer verkoopbaar (rendabel/concurrerend). Wij hadden al lang geleden moeten ingrijpen en daarbij onze efforts moeten steken in de ontwikkeling van: de agro-industrie, hout en houtproducten, meubels, bloemen, voeding, etc. Deze industrien zijn er op dit moment niet. Wat zullen wij doen aan de verbetering van ons concurrentievermogen? op de eerste plaats is het de hoogste tijd geworden om onze economische producten te diversificeren. zoals gezegd dienen per sector en per sub-sector serieuze studies gedaan moeten worden naar de haalbaarheid van de producten voor locale, regionale e.a. markten. op de tweede plaats moet er nog heel veel gebeuren op het vlak van de verbetering van het ondernemersklimaat van suriname. vooral het beleid inzake: onderwijs en vaktechnische opleidingen Productiviteit Werkgelegenheid (decent work). Financieringsfondsen slechts een integrale aanpak van de hiervoor genoemde problemen zal ons een kans geven om toch met concurrerende bedrijven op de markt te kunnen komen. op bedrijfsnivo op het nivo van de bedrijven moet gedachten worden aan: nieuwe technologien versterken van het management van de ondernemingen skills Development van de Werknemers, op verschillende nivo. suriname kan met een goed getrainde en zeer productief opererende arbeidsmacht gaan denken over de wijze waarop wij zouden kunnen penetreren op regionale e.a. markten. 78
zoals al gesteld moet er nog heel veel gebeuren op het vlak van de verbetering van het ondernemersklimaat van suriname. op sectoraal nivo: het samenwerken van ondernemers in business-netwerken (Clusters), om daardoor in staat zullen zijn om gezamenlijk iets te kunnen betekenen op de nieuwe en grotere markten. op nationaal nivo zal er alles aan gedaan moeten worden om de kosten van het ondernemen te kunnen verlagen. Aan de orde komen dan: energiekosten, financile voorzieningen, telecommunicatie, transport, vergunningen en fysieke infrastructuur, etc. De overheid zal een fonds moeten instellen van usD 1 miljard voor de komende tien jaar voor het bedrijfsleven (MkB). op regionaal nivo kan het concurrentievermogen slechts vergroot worden, indien de onderlinge verhoudingen worden verbeterd (lucht-, zee- en land-transport). op de derde plaats zullen er programmas ondernomen moeten worden op elk nivo, die het ondernemersklimaat verbeteren. op het nivo van de grotere multinationale bedrijven (investment en dienstverlening) op het nivo van de sMEs, de small and Medium sized enterpreneurs op het gebied van de M.E. (de micro enterpreneur) Werkgelegenheidscreatie van decent work zal hier het hart van moeten zijn. op de vierde plaats zal de ontwikkeling van de landen (inclusief suriname) zoal overeengekomen in de CoTonou-overeenkomst, waarop optimaal gebruik gemaakt moet van de internationaal aanvaarde structuren van de sociale dialoog. In plaats van u gerust te stellen met de integratie voordelen in de EPAs, wil ik u het volgende meegeven. Indien de CARICoM en ook de Regionale overheden de ontwikkelingen op het gebied van EPA serieus nemen, dan zal de allocatie van middelen uit b.v. het 10e EDF een weerspiegeling moeten zijn van hetgeen ik hiervoor heb aangegeven (Dit Fonds is Euro 160 miljoen). zonder die steun uit CRIP en nIP zal er niet veel mogelijk zijn (CARICoM Regional Indicative Program/ national Indicative Program). suriname heeft als klein land ook een kleine economie, waardoor er al gauw verstoringen zullen plaats vinden, indien market-access wordt toegestaan aan Europese Bedrijven, omdat in onze nationale sectoren nationale sectoren de regelgeving niet wordt nageleefd of serieus in haar gebied ontbreekt.
vanwege de a-symmetrische verhoudingen op veler gebied bestaat het gevaar dat een groot aantal beroepen en vaardigheden van de surinaamse bedrijvigheid zullen verdwijnen. Deze werden in de afgelopen 25 jaar op grond van loME e.d. opgebouwd via het accepteren van nationale preferentie. het opengooien van de lokale markt voor Europese bedrijven, kan niet worden gecompenseerd, nog worden vergeleken met het verlenen van toegang voor lokale bedrijven in de Europese markten. Deze bestaan naar mijn mening nauwelijks. Mijn opmerkingen komen voort uit het bestuderen van de gealloceerde fondsen t.b.v. het nIP en het CRIP uit de fondsen uit het 10e EDF. Tenslotte blijven een aantal vragen open die voor het aangaan van de EPA heel belangrijk zijn: 1) Bestaat er bij onze politieke overheid de wil om de hervormingen te realiseren (op fiscaal en bestuurlijke gebied)? En is de overheid bereid haar locale producenten waarnodig te beschermen? 2) hoe zullen wij onze economie diversificeren zonder middelen? Donorhulp droogt op en vanuit de eigen besparingen kan weinig verwacht worden. 3) hoe gaan wij het concurrentievermogen van onze economische producten vergroten? 4) Wat doen wij aan de verbetering van het investerings- en ondernemingsklimaat op alle nivos? Met de voorgaande informatie heeft de vsB getracht enkele zorgpunten met u te delen, die op nationaal nivo aangepakt moeten worden als wij verwachten dat de EPA voor ons een succes zal worden. Paramaribo, 16 december 2009. vereniging surinaams Bedrijfsleven
PRESEntAtIon EPA, trade in Services
Drs. Jean I. Djasman (ministerie van handel & Industrie)
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PRESENTATIE DRS. JEAN DJASMAN: EPA, TRADE IN SERVICES R A , E
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3. curriculum vitaes
REmco vAhl, Dg tRADE Ec Remco vAhl is deputy head of unit at the European Commissions Directorate-general for Trade (Dg TRADE). This unit is dealing with Economic Partnership Agreements (EPAs) in three ACP regions: West and Central Africa and the Caribbean. It also liaises with the European Parliament, the Council of Ministers and the joint ACP-Eu institutions on ACP trade matters. Remco vahl has worked on ACP trade for 12 years in the Commission, first in Dg Development and then in Dg TRADE. This has included rules of origin and agricultural issues and trade negotiations with the Caribbean. he has been deputizing since August 2005. he has followed very closely the EPs assent procedure for the EPAs. Previous posts: official at the European Commission since March 1995; Research assistant at leiden university, the netherlands (1991-1995) Education: PhD on the role of the European Commission in EC decision-making (leiden, 1996)
PRof. DR. noRmAn gIRvAn, PRofESSoRIAl RESEARch fEllow UwI InStItUtE of IntERnAtIonAl RElAtIonS norman girvan is Professorial Research Fellow at the uWI graduate Institute of International Relations at the university of the West Indies in st. Augustine, Trinidad and Tobago. he has been secretary general of the Association of Caribbean states, Professor of Development studies and Director of the sir Arthur lewis Institute of social and Economic studies at the university of the West Indies, and head of the national Planning Agency of the government of jamaica. he received his Bachelors degree in Economics of the university College of the West Indies and his PhD in Economics from the london school of Economics. he has published extensively on the political economy of development in the Caribbean and the global south. he is the recipient of several honours and awards
YvEttE RoKADJI, llc, StAfmEDEwERKER mhI, AfDElIng IntERnAtIonAlE EconomISchE BEtREKKIngEn heeft haar Meester titel behaald aan de Anton de kom universiteit van suriname, is thans langer dan 7 jaar werkzaam op de afdeling Internationale Economische Betrekkingen van het onderdirectoraat handel van het MhI. ze maakt deel uit van de werkgroep Market Access en is mede verantwoordelijk geweest voor de market access onderhandelingen binnen de CF-Eg EPA overeenkomst.
DRS. PAUl SoEBAI, StAfmEDEwERKER mhI, AfDElIng IntERnAtIonAlE EconomISchE BEtREKKIngEn Werkt langer dan 10 jaar bij het MhI, onderdirectoraat handel. hij is medeverantwoordelijk voor Market Acces in goederen, Agriculture en sanitary and Physo-sanitary rules alsmede statistieken binnen dit directoraat. Biedt ondersteuning bij de EPA-onderhandelingen tussen CF en de Europese gemeenschap.
DRS. BISoEn PAtRIcIEn, StAfmEDEwERKER mhI, AfDElIng IntERnAtIonAlE EconomISchE BEtREKKIngEn Werkt langer dan 10 jaar bij het MhI, en begonnen op de afdeling Invoer, uitvoer en Deviezencontrole en thans werkzaam op onderdirectoraat handel. ze is medeverantwoordelijk voor Technical Barriers to Trade aangelegenheden, Rules of origin en de verwerking van suspensionaanvragen binnen dit directoraat. Biedt ondersteuning bij de EPA-onderhandelingen tussen CF en de Europese gemeenschap.
DRS. JEAn DJASmAn, StAfmEDEwERKER mhI, AfDElIng IntERnAtIonAlE EconomISchE BEtREKKIngEn Is bedrijfseconoom, afgestudeerd van de universiteit van suriname, is thans langer dan 5 jaar werkzaam op de afdeling Internationale Economische Betrekkingen van het onderdirectoraat handel van het MhI. ze maakt deel uit van de werkgroep services van het Ministerie, die belast is met werkzaamheden betreffende de handel in diensten. Mw. Djasman heeft ook ondersteuning gegeven bij de EPA dienstenonderhandelingen tussen het CF en de Europese gemeenschap.
IR. REn vAn ESSEn, lAnDBoUwKUnDIgE En cUltUUR tEchnIcUS, vSB Dhr. Ing. Ren van Essen heeft landbouwkunde en cultuurtechniek in Wageningen, nederland gestudeerd. hij kwam in 1964 in suriname heeft bij sMl, surmac en Billinton gewerkt. In 1987 begon hij bij de good year Tire and Rubber Company in Africa en het Midden oosten. hij keerde naar suriname terug en werd in 1999 directeur van C. kersten en Co., en is vanaf 2005 beleidsadviseur bij Plos en vanaf 2007 directeur van de vsB. Ing. wIlgo BIlKERDIJK, mEchAnIc EngInEER En DIREctEUR BIllYS AUtomotIvE, ASfA
4. lijst van Aanwezigen Seminaar 16 Dec 2009
# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Alli Razia Ackton Benito Alikromo Anoushka Ameerali Robert Badloe Banbasszeeg Beeldsnijder C. Bilkerdijk Wilgo Bisoen P Cheung Tjiene Chin David Claver shequita Codrington kenneth Del Prado A Dilweg C.A. Djasman jean Djosetiko henna dos Ramos orlando Fernandes vincent Foe A Man kenneth gefferie vanuessa goedschalk john graanoogst Eline grauwde R. grootfaam-starke Marjorie gunputsing Roy s. halfhide Diana healy kathleen hernandez Aragones Esmeralda hoepel naomi naam vertegenwoordigende Instantie surinaams Bureau voor standaarden suriname Business Development Center suriname Business Development Center kkF s.s.A.W Caricom Competitivenes Commission Bakkeljauw fabriek AsFA/Billy's Automotive group nv Min. handel en Industrie Min handel en Industrie Ckj Produktie nv Min handel en Industrie Min. handel en Industrie Min handel en Industrie Randoe-suriname nv Min. handel en Industrie Min. handel en Industrie suriname Business Forum Min handel en Industrie vsB/sBF Min handel en Industrie C. kersten en Co nv suriname Business Development Center surinaams Bureau voor standaarden Min handel en Industrie Indeco nv sAB Margarine - en vetten fabriek nv Europese Delegatie F.h.R. lim A Po Instituut shequita.claver@minhi.gov.sr kencod72@yahoo.com a.delprado@yahoo.com cadilweg@randoe.com jean.djasman@minhi.gov.sr henna.djosetiko@minhi.gov.sr o.dosramos@ surinamebusinessforum.org ramdei@yahoo.com k.foeaman@surinamebusinessforum.org vanuesgef@gmail.com john.goedschalk@kersten.sr egraanoogst@sbc.sr exec.director@ssb.sr/dirssb@gmail.com marjoruth@gmail.com rgunputsing@indeco.sr d.halfhide@sabrum.com k.healy@vshunited.com esmeralda.hernandez-aragones@ ec.europa.eu naomihoepel@live.com stanwijckbabs@gmail.com zonweg@gmail.com wbilkerdijk@asfasuriname.com / billy@sr.net tispat@yahoo.com asmall@sbc.sr chamber2@sbc.sr E-mail Adres r.alli@ssb.sr
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naam hoever urtha Ilahi joan Isselt Ernie jadoenathmisier Aroen kalka Ratan kerkhoffs-zerp Margret khodabaks zevoera klinkers l. koorndijk judy lang sharon Man A hing Max Marica Cliford Meaney sebastian Eagleton Meegdenburg Wouter Moeniralam Afirah Mohan Romana Mungra soebhas nahar saskia olivieira Cornelly Pahlad-Abdul joan Pant soebai Phoelsingh, Deborah Arti Pique orpheo Pocornie nathalie Pross C Raissa van varsseveld Ramautar Romeo Ramautarsingh W. Rambaran Pravina Ramhit h Ramrattan sima Refos E Renfurm Ferrol
vertegenwoordigende Instantie Min. handel en Industrie prive suriname Business Development Center Min. handel en Industrie suriname Business Development Center Min handel en Industrie nederlandse Ambassade klinkers Public Policy Consultants Min van Buitenlandse zaken De West kkF Min. handel en Industrie Independent consultant CIC Min. van justitie en Politie Min. handel en Industrie ADEkuvs/sBF Min. handel en Industrie stg Women's Business group Centrale Bank van suriname Min. handel en Industrie Ministerie van Plos Min handel en Industrie ADEkuvs DWT Ministerie van Plos Min handel en Industrie Proplan Consultancy ADEkuvs Process Consultancy Ministerie van Plos kkF prive
E-mail Adres urtha.hoever@minhi.gov.sr eojjoan@hotmail.com episselt@sbc.sr a.jadoenathmisier@ surinamebusinessforum.org rkalka@sbc.sr odindustrie@gmail.com zevoera.khodabaks@minbuza.nl klinkers.kppc@xs4all.nl eur_hq_sme@yahoo.com sharonlang_2@hotmail.com chamber@sr.net
sebastianmeaney@hotmail.com wouter.vanmeegdenburg@cic.sur. com muskaan66@hotmail.com romana.mohan@minhi.gov.sr schmungra@yahoo.com saskia.nahar@minhi.gov.sr colivieira@yahoo.com jpahlad@cbvs.sr pant.soebai@minhi.gov.sr arti.phoelsingh@plos.sr/ a_phoelsingh@yahoo.com pheo_22@hotmail.com nava_nath@hotmail.com c.pross@d.w.t.net raissa.vanvarsseveld@plos.sr/ moeiset@yahoo.com ramautar67@hotmail.com proplan@sr.net virasha_15@hotmail.com ramhit@cq-link.sr sima.sultan@plos.sr chamber@sr.net frenfurm@hotmail.com
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naam Rozenberg setrosentono Tanja sewtahal Renuka sexstone Darrel silos steve simons j snel Marieke snijders Deborah l. soechitram soekhnandan Maikel soeri Cyril soetodiryo Wendy Tilborg Marjan o. Tuur Mauro vega Wielson Winston Wittenberg natasha Wong Fong sang karen zalmijn Arthur
vertegenwoordigende Instantie kkF ADEkuvs ADEkuvs Europese Delegatie Europese Delegatie prive MInov Centrale Bank van suriname kkF Centrale Bank van suriname Tjong A hung Consultancy ADEkuvs Ministerie van Financien Min. handel en Industrie Min. handel en Industrie suriname Business Development Center suriname Business Development Center Margarine - en vetten fabriek nv
E-mail Adres chamber@sr.net tanja_juliette@hotmail.com renuka_sewtahal@hotmail.com darrel.sexstone@ec.europa.eu steve.silos@ec.europa.eu jensimi6@gmail.com snelmarieke@gmail.com dsnijders@cbvs.sr chamber@sr.net msoekhnandan@cbvs.sr cyril.soeri@tah.sr wendy-soeto@hotmail.com mtilborg@yahoo.com maurotuur@yahoo.com ginna.leysnervega@minhi.gov.sr wwilson@sbc.sr nwittenberg@sbc.sr kwongfongsang@vshunited.com arthurzalmijn778@yahoo.com
however, this is not so self-evident and truly not a part of the EPA. The reference by Mr. vahl
concerned the regional preference the currently applies on market access for goods, whereby, within the FTA between the CARICoM Member states and DomRep, a phase reduction list (the so-called MFnlist) and an exclusion list has been accepted. All other products not mentioned, gain free (not duties) market access (the so-called negative Approach has been applied here in the trade negotiations). (source: ThE CARIBBEAn CoMMunITy (CARICoM) DoMInICAn REPuBlIC FREE TRADE ACT, 2001, Annex I, Agreement on Trade in goods, Article III, Market Access). This agreement is completely separate from the EPA. What is true, is that in case the FTA between the CARICoM Member states and DomRep would results in more favorable advantages, that these advantages should also be extended to like import products from the Eu. Thus the advantage of regional expansion due to the EPA is not so much for the CARICoM Member states, as for the Eu (source: EPA agreement, Article 70, Mostfavored-nation treatment).
All trade agreements are based on 3 fundamental pillars: (1) trade liberalization whereby barriers
(i.e. tariffs) are reduced/removed, (2) safeguards to protect local markets, monetary reserves and fiscal positions (Anti Dumping, Balance of Payment safeguard, countervailing measures to respond to foreign subsidized exports in certain circumstances, etc.), (3) dispute settlement (arbitrage) in cases where difference of opinion exists in the interpretation or application of (part/parts) of an agreement. The safety valves in the EPA are thus not unique and simply part of the standard format of any FTA (source: www.wto.org).
services and investments are mentioned and dealt with in the same breath, since investments are
defined as FDI; economic activity brought about by establishing/setting up a business as a commercial presence, acquired by taking over an existing business or the creation of a new branch or agency. If a service is set up in this way, it corresponds with the definition of Mode 3, commercial presence of the international classification for services (source: EPA, chapter 2)
Trade Facilitation concerns the improvement of procedures and control mechanism in all aspects
concerned with the displacement of goods, with the objective to reduce costs, improve transparency and efficiency, with regard for the policy objectives that rules and regulations advocates. Depending on which aspects are taken into account (or left out), the scope of trade facilitation can be interpreted broadly or narrowly. For instance, in some definitions, regulation regarding payment through the banking system is not considered part of trade facilitation (sources: www.wto.org, Asia-Pacific Research and Training network on Trade, April 2006). In the EPA agreement, trade facilitation is contained in Chapter 4, and mainly strives for harmonization, transparency and cooperation to simplify procedures and effective control. This might be one of the areas where CF countries may benefit from the technological edge the Eu has. 96
The Eu has been under pressure by the WTo and counties such as the usA and Ecuador, regarding
the preferential treatment extended to bananas from ACP countries. In 2006 the Eu set the price at 176/ton. The usA and Ecuador, the major suppliers of bananas on the Eu market, protested this price setting and in August 2008 the WTo ruled against the Eu for maintaining this system of price setting. on 15 December 2009, a year after signing the EPA, the Eu reached an agreement with latin American banana producers (Brazil, Colombia, Costa Rica, Ecuador, guatemala, honduras, Mexico, nicaragua, Panama, Peru and venezuela) to, among others, immediately reduce the price of bananas to 148/ton. The 12% reduction would apply till the end of 2010, after which the price will gradually be reduced to 114/ton (01 january 2017). The agreed regime will partly depend on the results of the Doha negotiations, but the successful conclusion of Doha will not change the trend in price decline for bananas. Currently the latin American banana producers supply 60% of the Eu market, while the share of the ACP countries is at 20%. The other 20% is mostly supplied by spanish and French Eu territories. ACP banana producers fear that, with the prospects of gradual price decline, their market share will further be reduced (sources: www.usatoday.com, www.acp-eucourier.info, WTo, WT/l/784, geneva Agreement on Trade in Bananas).
The nTBs concern, inter alia, Rules of origin (Roo), Technical Barriers to Trade (TBT), the erosion
of the agreed preferential tariffs (refer to footnote E on the reduction of the banana price) and other local elements of regulation not included in the trade agreement such as advertisements, marketing, taxation rules, etc (other aspects within the various phases of supplying a good onto a market, the socalled supply chain, which are not under the control of CF countries). source: suRInAME: PRos AnD Cons oF ThE EPA, speaking notes. norman girvan. For sBC seminar, December 16, 2009).
The above goods mentioned by Png are all contained in the Exclusion list of suriname; the
payment of duties by Eu goods will not be reduced within the EPA. It is possible however, for Eu businesses to start an establishment/agency (through the Investment Agreement in the form of FDI) in suriname and can, in this manner, offer competition to goods produced locally.
The standstill Clause implies that no taxes, quantitative and other limitations may be increased
or created that did not exist before the signing of the EPA. It is thus not possible to protect infant industries through these policy instruments. The government is allowed to subsidize (source: EPA Articles 13 and 15)
MRAs are aimed at acknowledging Caribbean qualifications and diplomas in Eu countries. The
agreement suggests that respective institutes enter into consultations with each other, set and agree rules for mutual acknowledgement, and submit these proposals to the (CARIFoRuM-EC Trade and Development Committee. The Commission, from its part, will start negotiations on governmental level to have the draft MRAs approved (source: EC-CARIFoRuM Economic Partnership Agreement. services and Investment Commitments. volume 1, Business and Trade Policy. Business guide International Trade Centre).
of importance are the definitions of supplier, eligible supplier, as defined in ChAPTER 3,
PuBlIC PRoCuREMEnT, Article 166, part (3) and (5) of the EPA agreement. A supplier is defined as any natural or legal person or public body or group of such persons or bodies of a signatory CARIFoRuM state or the EC Party which can provide goods, services or the execution of works. The term shall cover equally a supplier of goods, a service provider or a contractor. An eligible supplier is a supplier [as mentioned in Article 166 (3)] who is allowed to participate in the public procurement opportunities of a Party or signatory CARIFoRuM state, in accordance with domestic law and without prejudice to the provisions of Chapter 3. The text does not indicate under what conditions/when a business is allowed to tender for government works. Insomuch known, a business is allowed if it is a resident of one of the signatory countries of the EPA takes part in another local business and complies with all the legal stipulations related to government procurement. The EPA text does not set specific qualifications to be considered an eligible supplier.
In discussing goods and services, but also in discussing government procurement, a number
of clauses have been mentioned, such as the mfn and nt clauses. Apart from these clauses, in discussing the market access for goods, recall the use of the Standstill clause (see footnote g) The Rendezvous clause mandates that, with respect to trade liberalization for services, renegotiations will take place every 5 years. This opens the possibility for CF services not yet liberated under the current EPA of where reservations still exist, to still liberate those or at least to exercise pressure on those sectors/services With regard to goods, services and investments it is asserted that all advantages that CARIFoRuM countries have extended to the Eu, shall also be extended mutually; thus between the CARICAM countries and DomRep. This is the Regional Preference clause. Apart from abovementioned clauses, all applying to market access, another has been mentioned that has a more institutional character. The mandatory Review clause, which is an complement to Article 5 of the EPA agreement, states that 5 years after signing the agreement and every 5 years thereafter, a thorough evaluation of the effects of the EPA will take place, including the costs and consequences of the implementation with the objective to adjust, if necessary, what has been agreed upon and their applications. This will only be done properly if the EPA is thoroughly evaluated now and the effects are continually monitored and recorded. The latter is the most important recommendation of Png, especially regarding services and investment.
The ATA carnet is an international Customs document that allows the holder to temporary, mostly
for 12 months, secure goods intended for re-export from the payment of duties and other charges, as 98
long as the goods leave the country that issued the document with the stipulated time (source: http:// www.atacarnet.com/WhatisanATACarnetorCarnet.aspx, Corporation for International Business).
on 5 February 2008, during a meeting of the general Council of the WTo, Brazil raised an objection
against the MFn Clause of the Eu in the EPA with the ACP countries. Brazil indicated that the clause violates the Enabling Clause, discourages trade between developing countries and hands the Eu a unique opportunity to keep a market to itself it could not have accessed as desired before, and to expand her market share with much competition from other trading partners outside the agreement (source: Cheikh Tidiane Diye and victoria hanson, MFN provisions in EPAs: a threat to South-South trade?. Trade negotiations Insights. volume 7. number 2 / March 2008 and the official text of the Economic Partnership Agreement between the CARIFoRuM states of the one Part and the European Community and Its Member states of the other Part, EPA agreement, Article 70, Most-favored-nation treatment). The MFn clause mandates that CF countries automatically extend more favorable advantages to the Eu, if future FTAs with third parties would result in more favorable advantages than agreed during the EPA (source: EPA, PART II: TRADE AnD TRADE-RElATED MATTERs. TITlE II: InvEsTMEnT, TRADE In sERvICEs AnD E-CoMMERCE. ChAPTER 2: CoMMERCIAl PREsEnCE, ARTIClE 70: Most-favourednation treatment, part 1b). The clause specifies the character of third parties as a major trading economy being any developed country, or any country accounting for a share of world merchandise exports above one (1) percent in the year before the entry into force of the economic integration agreement referred to in paragraph 1, or any group of countries acting individually, collectively or through an economic integration agreement accounting collectively for a share of world merchandise exports above one and a half (1.5) percent in the year before the entry into force of the economic integration agreement. With Article 70 part 4, the Eu is excludes any potential future trading partner, since chances are small that another country would supply its goods on the CF market to endure fierce competition from the Eu. say suriname, for example, would liberalize a product on the EPA Exclusion list in favor of Brazil, since liberalization would be associated with increased technical assistance into the sector, suriname would be obliged to pass this advantage to all like imports from the Eu, thus effectively taking the product out of the Exclusion list. Furthermore, suriname would not be able to accommodate, say cars from Brazil, a lower tariff, without providing cars from Eu the same advantage. Brazil will not be tempted to conclude or even attempt a FTA with suriname, since the advantage of such a FTA is annihilated by the MFn Clause; Brazilian cars would endure fierce competition from Eu cars due to similar trade provisions to enter the surinamese market and suriname, as a developing country, would not be able to enjoy future FTAs with Brazil or any other trading partner for that matter. Article 70 part 5 leaves open a small possibility by stating that, if the party with whom a more favorable
FTA has been concluded does not meet the definition as referred to in Article 70 part 4, the CF countries shall enter into consultations and may decide whether the concerned signatory CARIFoRuM state may deny the more favorable treatment contained in the economic integration agreement to the EC Party. The joint CARIFoRuM-EC Council may adopt any necessary measures to adjust the provisions of this Agreement (also refer to footnote k). During said WTo meeting, many developed and developing countries have voiced their disgust over the MFn Clause and have indicated that, by way of this clause, the Eu not only wants to protect and consolidate its declining trade with third world countries, such as in Africa, but also wants to discourage growing trade with larger developing countries, such as Brazil, China and India. It is internationally acknowledged that the Eu has the right to trade with the ACP countries based on the principle of reciprocity, but its improper for the Eu to demand from developing countries to extend all future advantages they have allow third parties, to automatically extend those to the Eu too. The MFn Clause has been dubbed as a pre-emptive injustice. The above analysis has clearly proven that the MFn Clause is a formal erosion of the EPA provisions in favor of the CF countries. This subject will again be tabled at the next WTo general Council meeting, but will only happen after the EPA has been notified to the WTo. Its of eminent importance that suriname increases its efforts to ratify the agreement.
In the newspaper called Times of suriname from Friday 4 December 2009, the article appeared
mentioning that suriname will endure fierce competition in the poultry sector due to the EPA. This is inaccurate. The poultry sector will not experience competition from Eu imports, since chicken has been place on the Exclusion list and is therefore excluded from tariff reduction. If the current tariff is at 20%, it will remain on 20%. This applies to all goods on this list.
From the agreement it is not clear/hard to discern who is the owner of the Intellectual Property
Rights from these co-productions and how the share-out will take place since these have not yet been arranged in the cultural agreement. negotiations still need to take place [Protocol III, on Cultural Cooperation, Article 2(2)]. For the time being, talks only concern the development of a common understanding, which will be reached by dialogue and good practices concerning the Intellectual Property Rights. The original text quoted: The Parties shall cooperate to foster the development of a common understanding and enhanced exchange of information on cultural and audiovisual matters through an EC-CARIFoRuM dialogue, as well as on good practices in the field of Intellectual Property Rights protection. This dialogue will take place within the mechanisms established in this Agreement as well as in other relevant fora as and when appropriate.
In 2003 similar studies were conducted with the objective to analyze the implications of suriname
entering the WTo and CARICoM. That study was macro-economic and trade-technical in nature and 100
concluded that the surinamese economy is dual in nature, with a strongly developed import-intensive sector and labor-saving sector, and an underdeveloped capital-intensive sector that is not utilizing enough of its cultural, historical and social capital to expand its economic base and include more people into the economic process of production, capital and income development. This dual character and underutilization of domestic capital to generate development, results in important structural problems such as structural shortages on the current account of the balance of payments, an overextended public sector and net migration of scarce human capital to the netherlands predominantly. The study suggested a strategy whereby the import-intensive sectors, such as bauxite, gold, crude oil, would continue growing, but that policy would be developed to have sector producing and using domestic capital grow faster. sectors such as tourism, handicraft, music, textile, dance, drama, etc. the study was commissioned by MTI and financed by the unDP (source: Rosalea hamilton, Ph.D., Implications for surinames Economy of the WTo, FTAA, CsME, and ACP-Eu Trade Agreement. unDP Project suR/02/001, May 2003). Apart from this study, additional studies have been conducted regionally to analyze the export potential of Caribbean Economies with respect to the by way of systematic development and use of domestic capital. The study describes various potential sectors in various Caribbean countries. suriname has also been included into this study (source: vanus james, PhD., Building Competitive Caribbean Export Industries Rooted in local Talent and Resources. strategies for Employment growth and Poverty Alleviation. Preparatory Assistance Project unDP/sPPD. january 2002).
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