Briefing note for Members of the 8th legislature 2014-2019 On CARIFORUM FdR 1031029EN PE 531.818
Delegation to CARIFORUM-EU Parliamentary Committee (D-CAR) 1. Brief background of the delegation On 8 September 2010 the European Parliament Delegation to the Cariforum EU Parliamentary Committee held its inaugural meeting. The 15 countries of CARIFORUM are: Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, St Lucia, St Vincent and the Grenadines, St Kitts and Nevis, Suriname, Trinidad and Tobago. The European Parliament gave its assent to the Economic Partnership Agreement CARIFORUM-EC on 25 March 2009. It is the first full EPA to be concluded and implemented. Its article 231 provides for the creation of a CARIFORUM-EU Parliamentary Committee, whose main task is to monitor the application and management of this commercial agreement. It also states that the Parliamentary Committee is able to request of the Joint CARIFORUM-EU Council specific relevant information regarding the implementation of the Agreement and make recommendations to the same Council, as well as to the CARIFORUM-EU Trade and Development Committee. The Parliamentary Committee comprises two delegations with an equal number of members from the European Parliament and from the 15 Parliaments of the CARIFORUM states respectively. The decision to establish the permanent European Parliament Delegation to the Committee was taken on 15 June 2010 and a constituent meeting of the delegation was held on 8 September 2010. Out of the 15 members of the EP delegation, nine members are from the Committee on International Trade and six from the Committee on Development. 2 EU Cariforum relations Economic Partnership Agreement On the basis of a report by David MARTIN (S&D/UK), the European Parliament gave its assent to the Economic Partnership Agreement CARIFORUM-EC on 25 March 2009. Economic Partnership Agreements (EPAs) are trade agreements negotiated by the European Commission (DG Trade) with regional groups of the African, Caribbean and Pacific countries (ACP). Since 2002 the Commission and the ACP countries have been working to put in place new Economic FdR 1031029EN PE 531.818 2
Partnership Agreements before the end of 2007, knowing that, on 1 January 2008, the WTO waiver covering the existing trade arrangements between the ACP and the EU would expire. In fact, EPAs are trade agreements which respond to WTO rules and requirements. The Economic Partnership Agreement (EPA) between the European Union (EU) and the states of the Caribbean Forum (CARIFORUM) was signed in October 2008 and is a comprehensive and far reaching agreement. It covers trade in goods and services, investment, trade related issues like innovation and intellectual property. The agreement also features a strong development cooperation component. The agreement is provisionally applied as of 29 December 2008. The European Parliament ratified the agreement on 25 March 2009. The EU-CARIFORUM EPA provides asymmetric and progressive opening of trade in goods. After its initialisation in 2007, the EU removed all remaining customs duties and quotas on CARIFORUM exports as of 1 January 2008 with the exception of rice and sugar, for which transitional arrangements apply. This is a significant improvement compared to the Cotonou Agreement tariff preferences. In return, CARIFORUM countries committed themselves to open their markets gradually (61% of EU exports in 10 years, 83% in 15 years and 87% in 25 years). Tariffs are not to be reduced on a number of sensitive products identified by means of stakeholder consultations in each CARIFORUM country, such as animal products, vegetable products, animal or vegetable fat, prepared foods, beverages and tobacco. The provisions on trade in services in the EPA are particularly important as the CARIFORUM states have a comparative advantage in this field and are a net supplier of services. The EU has granted market access to 94% of its services sectors and has also made commitments for mode 4 delivery of services (presence of natural persons). These commitments go beyond those made by developed nations in the General Agreement on Trade in Services (GATS). The liberalization commitments made by the CARIFORUM states are mostly in those sectors where the countries want to boost investment to upgrade infrastructure, such as telecommunications and transport and those sectors with export opportunities such as tourism and business services. Total CARIFORUM commitments cover around 65% and 75% of their services sectors. Development component Unlike standard Free Trade Agreements (FTAs), the EPA also includes a large chapter on development issues, with objectives listed in line with the Cotonou Agreement. EU support to the region of a total of 146.7 million euros include a specific EPA support programme for an amount of EUR 47 million, a EUR 28 million Regional Private Sector Development Programme, which should help the private sector exploit opportunities that the EPA can offer, as well as activities to support the Caribbean Single Market and Economy (EUR 27.5 million), implementation of the Economic Union of the Organisation of East Caribbean States (EUR 12.6 million) and special programmes for Haïti and investing in human capital. The Regional Indicative Programme for the 11th EDF is still under negotiations with Cariforum. FdR 1031029EN PE 531.818 3
Trade picture The 15 countries of CARIFORUM are: Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, St Lucia, St Vincent and the Grenadines, St Kitts and Nevis, Suriname, Trinidad and Tobago The EU is CARIFORUM's second largest trading partner, after the US. In 2011, trade between the two regions came to over 8 billion. In 2011 CARIFORUM ran a trade deficit with the EU of some 2.2 billion. In other words, CARIFORUM countries exported 2.2 billion less in goods and services to the EU than they imported from the EU. The main exports from the Caribbean to the EU are in: fuel and mining products, notably petroleum gas and oils; bananas, sugar and rum; minerals, notably gold, corundum, aluminium oxide and hydroxide, and iron ore products; fertilisers. The main imports into the Caribbean from the EU are in: boats and ships, cars, constructions vehicles and engine parts; phone equipment; milk and cream; Parliamentary resolutions The European Parliament gave its assent to the Economic Partnership Agreement CARIFORUM-EC on 25 March 2009. It also adopted an accompanying resolution 1[1] expressing its views on the partnership. The responsible committee, the Committee on International Trade engaged in a regular dialogue with the Commission to monitor implementation of the EPA, but a further resolution was not adopted by Parliament on the Cariforum EU EPA. 3. The activities of the Parliamentary Committee Two Parliamentary Committee meetings took place since the start in 2010. During the first one in Brussels on 15-16 June 2011 the JPC discussions were held in two half-day sessions and encompassed a follow-up and report back from the above mentioned Trade and Development Committee, the exchange of views with Commissioner De Gucht on the state of play of the implementation of the agreement, and a discussion on the programming of development support under the agreement. Ambassador Errol Humphrey, previous ambassador of Barbados to the EU and part of the Cariforum negotiating team for the EPA, presented a very recently accomplished study on 'Implementing the EPA, challenges and bottlenecks in the CARIFORUM region.' The body elected its two Co-Presidents, David Martin (S&D, UK) and Surujrattan Rambachan (Trinidad and Tobago), as well as its Vice-Presidents Mrs Eleni Theocharous (EPP, Cyprus), Mr Niccolò Rinaldi (ALDE, IT), Mr Rizek Afif Nazario, Dominican Republic and Mr Rabindre Parmessar, Suriname. 1[1] http://www.europarl.europa.eu/meetdocs/2009_2014/documents/ta/25/03/2009%20-%200175/p6_taprov(2009)0175_en.pdf FdR 1031029EN PE 531.818 4
The second Parliamentary Committee meeting took place on 3-4 April 2013 in Trinidad and Tobago. The Caribbean side showed a great commitment, and the fact that they were represented at a high level can be seen as a proof of this. The first day was mostly dedicated to discussions and internal procedures. The Committee adopted its Rules of Procedure, as well as a joint declaration. The Committee also heard several interventions from the private sector. During the second day, participants had the opportunity to participate in field trips to the university as well as to former sugar producing areas, where the European Union is now supporting projects to achieve diversification. The two main issues discussed, apart from the Rules of Procedure, related to the Commission proposal for a visa waiver for citizens from the region and the EU s future development policy, and in particular the so called differentiation. A third Parliamentary Committee that was planned to take place in March 2014 had to be cancelled. 4. The activities of the EP Delegation The EP Delegation to the Parliamentary Committee entered in active dialogue with the Commission to follow the work of the Joint CARIFORUM-EU Council and the CARIFORUM- EU Trade and Development Committee. Besides that a whole range of issues were addressed which mainly focused on the implementation of the agreement, including: the implementation of the Cultural Protocol, using provisions, such as twinning between cities, more direct cooperation in entertainment and audio-visual industries, a possibility to create a creative industry platform etc. Implementation of the labour mobility provisions opening up new markets for Caribbean companies and professionals to offer services in the EU especially of qualified professionals such as accountants, engineers, architects, tourism. Visa requirements and the proposal of the European Commission to no longer require visas from several Caribbean countries to enter the European Union The reform of EU aid, targeting aid to the world s poorest countries and the impact this differentiation might have on the Caribbean countries 5. Current issues and medium-term prospects This delegation, which was specifically established to monitor the implementation of a trade agreement, will first and foremost continue with that mission. The agreement is now applied for over 5 years. Initial reluctance to implement the agreement is being overcome and the first effects are becoming visible. As foreseen in the agreement, it will be comprehensively reviewed on the basis of an independent assessment after 5 years of operation. This evaluation will be an important starting point of the work of DCAR in the coming period. FdR 1031029EN PE 531.818 5
6. History of the delegation Former EP Delegation Chair: David MARTIN (S&D/UK) Co-Presidents and Vice Presidents of Parliamentary Committee during the 7th legislature: Co-Presidents: David Martin (S&D, UK) and Surujrattan Rambachan (Trinidad and Tobago), Vice-Presidents Mrs Eleni Theocharous (EPP, Cyprus), Mr Niccolò Rinaldi (ALDE, IT), Mr Rizek Afif Nazario, Dominican Republic and Mr Rabindre Parmessar, Suriname. Date and place of Parliamentary Committee meetings: Date Place 15-16 June 2011 Brussels 3-4 April 2013 Trinidad & Tobago FdR 1031029EN PE 531.818 6