Contents. Abbreviations and Acronyms
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1 Contents Abbreviations and Acronyms ix Executive Summary Broad findings How soon w ill commitments bite? The answer on tariffs is not soon The answer fo r other provisions is less certain The costs of leaving Regional impact xi xi xii xiii 1 Introduction Scope of the project Scope and structure of the report 2 Part A. Main Principles for Trade in Goods 2 Liberalisation Commitments in the Main CARIFORUM EPA Text Border restrictions The liberalisation approach Implementation period and fle x ib ility Export restrictions Common provisions MFN clause (part I, article 19) M ultilateral and bilateral safeguards Infant industry protection N on-tariff barriers and subsidies Customs and trade fa cilita tion Agriculture and fisheries Technical barriers to trade and sanitary and phytosanitary 11 standards 3 Liberalisation Commitments in the Main Pacific IEPA Text Review of ta riff concessions Export duties Free circulation of goods MFN clause Infant industry protection 13
2 3.6 Customs co-operation Technical barriers to trade and sanitary and phytosanitary standards Institutional provisions Rendezvous clause 15 Part B. Tariff Removal Commitments 4 The EPA Liberalisation Commitments Approach and methodology Approach Methodology Liberalisation in the two Pacific states Overview o f Fiji Islands ta riff liberalisation towards the EU Overview o f Papua New Guinea s ta riff liberalisation towards the EU Liberalisation by CARIFORUM states One liberalisation schedule or many? Terminology How the impact o f the EPA w ill vary between states Summary o f 2009 liberalisation Timetable fo r m ajor liberalisation Exclusions from liberalisation Para-tariffs and non-tariff barriers Hypothetical revenue loss from liberalisation 41 5 The Treatment of Exports The EU ta riff regimes on ACP exports The cost of losing preferences: the Pacific states Fiji Islands Papua New Guinea Conclusions fo r the Pacific states The cost of losing preferences: CARIFORUM The additional export advantages of DFQF access Which Pacific and CARIFORUM states w ill gain? Rules o f origin 61 Part C. Services 6 Services Provisions in the CARIFORUM EPA The approach to liberalisation Structure o f the EPA text National treatment and MFN 66
3 6.7.3 Social and labour Standards Regional provisions Horizontal services com m itm ents in the EPA Commercial presence - WTO GATS mode Cross-border supply and consumption abroad - WTO GATS 67 modes 7 and Presence o f natural persons - WTO GATS mode Protocol on Cultural Cooperation Sectoral services com m itm ents in the EPA Computer and courier services Telecommunications Financial services International m aritim e transport services Tourism services Development co-operation Concluding remarks on services 72 Part D. Conclusions 7 Broad Findings 76 8 What Happens Next? 78 References 82 Appendices 1 Summary of Key Provisions in the CARIFORUM EPA Text 83 2 Summary of Key Provisions in the Pacific IEPA Text 89 3 Comparative Structure of the CARIFORUM and PACP EPAs 92 4 Summaries of Individual CARIFORUM States Market Access Schedules 95 5 Summaries of Individual CARIFORUM States Exclusions Broad Composition of Individual CARIFORUM States Exclusions Loss of EU Preferences - The Broad Picture fo r Individual CARIFORUM States Individual CARIFORUM States Exports That Would Face Tariffs Outside 128 an EPA Tables 3.1 Provisions on SPS and TBT in the PACP EPA (Annex IMA and NIB) Summary of Fiji Islands market access schedule Summary of Fiji Islands exclusions Broad com position of Fiji Islands exclusions 24
4 4.4 Summary of Papua New Guinea s market access schedule Summary of Papua New Guinea s liberalisations Summary of Papua New Guinea s exclusions Broad composition of Papua New Guinea s exclusions Illustrative example of the CARIFORUM ta riff liberalisation schedules Distribution of goods between liberalisation tranches in the norm Breakdown of individual country variations from the norm Percentage of lines being liberalised w ithin each tranche which are different 35 from those being liberalised in the same tranche in the norm 4.12 Exceptions to the CET after fu ll EPA im plem entation Summary of CARIFORUM 2009 liberalisations Proportion of im port value accounted for by items with ta riff of 20 per cent 39 or more (or specific duty) 4.15 Broad composition of exclusions (by FIS section) Hypothetical revenue loss in CARIFORUM Hypothetical revenue loss in Pacific countries Fiji Islands: losing EU preferences - the broad picture Fiji Islands: exports that would face tariffs outside an EPA Papua New Guinea: losing EU preferences - the broad picture Papua New Guinea: exports that would face tariffs outside an EPA Summary of GSP/MFN impact on CARIFORUM states Countries which export goods affected by DFQF access Summary of CARIFORUM - EC services EPA 71 Figures 4.1 Example of the EU s HS-CN hierarchy 20 Boxes 4.1 Main data caveats and assumptions The task of calculating EPA revenue effects 43
5 Abbreviations and Acronyms A C P A fric a n, C aribbean and P acific A o A A g re em ent on A g ric u ltu re C A R IF O R U M C aribbean Forum C E T com m on extern al ta riff C R N M C aribbean R egional N e g o tia tin g M a ch in e ry D FQ F duty-free and quota-free E B A E ve ryth in g b u t A rm s EC European C o m m u n ity EPA E conom ic P artnership A greem ent E U European U n io n F T A free trade agreem ent G A T S G eneral A g reem ent o n Trade in Services G A T T G eneral A g re em ent o n Tariffs and Trade GSP G eneralised System o f Preferences FIS H arm onised System IE P A In te rim E conom ic P artnership A gre em e nt IIP in fa n t industry p ro te c tio n IM F In te rn a tio n a l M o n e ta ry Fund L D C least developed co u n try M F N m ost-favoured-nation N T n a tio n a l tre a tm e n t N T B n o n -ta riff barrier O D I Overseas D e velopm e nt In s titu te P A C P P acific A C P P N G Papua N e w G uinea P N K k in a (Papua N e w G uinea) R & D research and developm ent R oo rules o f o rig in S M E sm all and medium -sized enterprise SPS sanitary and phytosanitary standards T B T te ch n ica l barriers to trade T P R T ele co m m u n ica tio n Reference Paper (G A T S ) T Q ta riff quota W T O W o rld Trade O rg aniza tion
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