1

The services component of the EPA

S. H. Allyson Francissonja.francis@gov.gd

sonjafrancis@hotmail.com

Outline EPA (background & provisions) Key features on Services EU Services offers

Schedule of commitment

CARIFORUM Services offers Schedule of commitments

Supply-side, demand-side, implementation issues

Next steps

The EPA Objectives

Reduction & eventual eradication of poverty through trade partnership;

Promoting regional integration, economic cooperation and good governance;

Promoting the integration of CARIFORUM (CF) States into the world economy;

Support for increasing investment & private sector initiative; and

Strengthening relations taking into consideration levels of development and int’l obligations

Services trade

Services are traded by four modes Mode 1 - Cross-border trade (the supplier or the

consumer do not move e.g. advisory services via the internet, providing drafts);

Mode 2 - Consumption abroad (the consumer moves to obtain the service e.g. tourism, non-national purchasing Architectural services paid from their home country);

Mode 3 - Commercial presence (the supplier establishes in the territory to supply a service e.g. branches); and

Mode 4 - Movement of natural persons (temporary movement of the supplier to provide a service e.g. consultancy services)

Elements of the services provisions

Contained in the legal text and in the schedule of commitments

Positive listing of restrictions in services sectors – what is listed is

liberalised (may contain restrictions)

Services Title Chapter 1 – General Provisions Chapter 2 – Commercial Presence Chapter 3 – Cross Border Supply of

Services Chapter 4 - Temporary Presence of

Natural Persons for Business Purpose Chapter 5 – Regulatory Framework (MR,

Computer, Courier, Telecom, Financial, Int’l Maritime & Tourism)

Chapter 6 – Electronic Commerce Chapter 7 - Cooperation

General Provisions An arrangement for the progressive, reciprocal

& asymmetric liberalization Do not apply to subsidies States retain the right to regulate & introduce

new regulations to meet legitimate policy objectives

Do not apply to measures regarding citizenship, residence or employment

Measure must not be applied to nullify or impair benefits

Future liberalization no later than 5 yrs from date of entry into force

General Provisions (cont’d) Bahamas & Haiti to schedule commitments

no later than 6 months after signature (preferential treatment not applicable until)

Recognize the importance of Regional Integration

Does not include activities in the exercise of governmental authority

Do not apply to activities such as mining, manufacturing, processing of nuclear materials, production of arms, audio-visual services, national & international air transport etc.

Market Access (MA) Parties shall accord treatment no less

favorable than that provided for in the specific commitments

Measures not to be maintained unless specified- Limitations such as on the number of commercial presences (quotas,

monopolies, exclusive rights or other requirements such as ENT)

the total value of transactions or assets the total number of operations or quantity of

output the participation of foreign capital specific types of commercial presence

National Treatment (NT)

Where there are MA commitments States shall grant treatment no less favorable than that accorded to their own like service provider (treatment will be considered less favorable if it modifies the conditions of competition in favor of the other party)

Most-Favored Nation Treatment (MFN) The EC shall accord treatment no less

favorable than the most favorable accorded to third country with whom they conclude & agreement with after signature of the EPA

CF shall accord treatment no less favorable than the most favorable accorded to any major trading economy – (major trading economy is any country with more than 1% world share in merchandise trade or group with more that 1.5%)

Temporary Presence of Natural Persons for Business Purposes

Key Personnel – National employed by a legal entity responsible for setting up or the proper control (all sectors liberalised under mode 3) Business visitors – must be in a senior

position, do not engage in direct transaction with the gen. public & do not receive payment from a source in the host

Intra-corporate transfers – must have been employed or partners for at least 1year, transferred on a temporary basis

Managers (directing, supervising auth. to recruit or dismiss or recom.)

Specialists (must possess uncommon knowledge)

Temporary Presence of Natural Persons (cont.)

Graduate trainees – national employed by a legal entity for at least 1 year, possess a university degree, temporarily transferred for career development & training in business techniques or methods (recipient co. may be required to submit training programme)

For all sectors liberalised under mode 3

Business Service Sellers (BSS)

Representatives of a service supplier seeking temporary entry to negotiate the sale of services or entering into agreements to sell services

For all sector liberalized Temporary entry for 90days Do not engage in making direct sales to the

public Do not receive remuneration from a source in

the host State

For all sectors liberalised under modes 1, 2 & 3

Contractual Services Suppliers

National employed by a legal entity, with no commercial presence in the other territory, have concluded a bona fide contract requiring temporary presence to fulfill

Conditions for CSS Must have a registered business or an

employee of a juridical person Must possess a university degree or

equivalent and professional qualifications (except fashion model chef de cuisine & entertainment);

Must first obtain a service contract must not exceed a period of twelve months (temporary entry and stay not more than 6 months);

Must have been an employee of the juridical person for at least 1 year immediately preceding application;

Conditions for CSS (cont.)

Must possess at least three years professional experience;

Remuneration only for the contract; and

Subject to Economic Needs Test (ENT) - The main criteria will be the assessment of the relevant market situation in the Member State or the region where the service is to be provided, including with respect to the number of, the impact on, existing services suppliers

Independent Professional

National, self-employed with no commercial presence in the other territory, have concluded a bona fide contract requiring temporary presence to fulfill

Conditions for IP Self employed Must possess a university degree or equivalent

and professional qualifications; Must first obtain a service contract must not

exceed a period of twelve months (temporary entry and stay not more than 6 months);

Must have at least 6 years professional experience at the date of application;

Subject to Economic Needs Test (ENT) - The main criteria will be the assessment of the relevant market situation in the Member State or the region where the service is to be provided, including with respect to the number of, the impact on, existing services suppliers

Other Provisions

Short Term visitors for business purposes Research and Design; Marketing

research; Training seminars; Trade Fairs; Sales; Purchasing;

Provided they are not engaged in selling their services to the general public; do not receive remuneration in the territory of temporary stay, not to engage through a contract outside of the territory of temporary stay;

Temporary stay up to 90 days

Qualifications

'qualifications' means diplomas, certificates and other evidence (of formal qualification) issued by an authority designated pursuant to legislative, regulatory or administrative provisions and certifying successful completion of professional training.

Cooperation

Cooperate by providing support through technical assistance, training & capacity building: Improve ability to gather information on &

meet regulations & standards of the EC; Improve export capacity particularly

marketing of tourism & cultural services, SMEs;

Facilitate interaction & dialogue;

Cooperation (cont.)

Address quality & standards needs under the agreement & domestic & regional markets. Also ensure participation in the development & adoption of sustainable tourism standards;

Developing & implementing regulatory regimes; and

Mechanisms for promoting investment & joint ventures & enhancing the capacities of IPA

EU Services offers in the selected sectors

EC Commitments

The EC have scheduled their reservations in four different sections

Cross-border supply of services; Commitments on Establishment

(Commercial Presence); Reservations on Contractual Service

Suppliers (CSS) Independent Professionals (IP)- Reservations on Key Personnel and

Graduate Trainees.

Cross-border provision

Horizontal limitations on acquisition of land and real estate by foreign investors

Commercial Presence Commitments

Commercial presence (Mode 3)Horizontal limitations Limitations on acquisition of land and real

estate by foreign investors in 19 Member states

Limitations on the type of establishment includes limitation on the treatment accorded to branches or agencies established in a Member State by a third country company, also, residency & nationality conditions in the composition of the board of directors

Commercial presence horizontal limitations (Cont.)

EC reserve their right to prohibit or regulate the acquisition of a juridical person for overriding reasons of general interest in so far as they comply with Community law and international obligations.

Prior authorization; and Limitation on foreign participation

Movement of Natural Persons

Those measures (e.g. need to obtain a license, need to register with the Registrar of Companies, universal service obligations, need to obtain recognition of qualifications in regulated sectors, need to pass specific examinations, including language examinations, non-discriminatory requirement that certain activities may not be carried out in environmental protected zones or areas of particular historic and artistic interest), even if not listed, apply in any case to service suppliers of the other Party.

Key Personnel & Graduate Trainees

2 Member States require ENT for Graduate Trainees;

The number of ICT must not exceed 10%;

Restriction for Managing Directors and Auditors include - Residency requirement, trade permit, specific authorization

EC directives on mutual recognition of diplomas only apply to EC nationals.

Key Personnel & Graduate Trainees (Cont.)

EC directives on mutual recognition of diplomas only apply to EC nationals. The right to practise a regulated professional service in one Member State does not grant the right to practise in another Member State – (In order for third-country nationals to obtain EC-wide recognition of their qualifications, it is necessary to negotiate a Mutual Recognition Agreement)

Residency requirement in 4 Member States and years of experience required in 1 Member State

Key Personnel & Graduate Trainees (Cont.)

Commitments on key personnel and graduate trainees do not apply in cases where the intent or effect of their temporary presence is to interfere with or otherwise affect the outcome of any labour/management dispute or negotiation

Contractual Service Suppliers (CSS)

The EC made commitments in 29 sectors For the EC 10 commitments enter into force in

2011 For Bulgaria & Romania 2014

EC directives on mutual recognition of diplomas only apply to nationals of EU Member States. The right to practise a regulated professional service in one Member State does not grant the right to practise in another Member State. (In order for third-country nationals to obtain EC-wide recognition of their qualifications, it is necessary a Mutual Recognition Agreement to be negotiated)

Areas of access for CARIFORUM CSS in the EU

1. Legal advisory services in respect of international public law and foreign law

2. Accounting and bookkeeping services3. Taxation advisory services4. Architectural services5. Urban planning and landscape architecture services6. Engineering services7. Integrated Engineering services8. Medical and dental services9. Veterinary services10. Midwives services

Areas of access for CARIFORUM CSS in the EU (cont’d)

11. Services provided by nurses, physiotherapists and paramedical personnel

12. Computer and related services

13. Research and development services

14. Advertising services

15. Market Research and Opinion Polling

16. Management consulting services

17. Services related to management consulting

18. Technical testing and analysis services

19. Related scientific and technical consulting services

20. Maintenance and repair of equipment

Areas of access for CARIFORUM CSS in the EU (cont’d)

21. Chef de cuisine services22. Fashion model services23. Translation and interpretation services24. Site investigation work25. Higher education services (only privately-funded

services)26. Environmental services27. Travel agencies and tour operators' services28. Tourist guides services29. Entertainment services other than audiovisual

services

Independent Professionals (IP)

Market access was granted in 11 sectors.

13 Member States have no reservations for Accounting & Bookkeeping, 12 have no resrv. For Architectural Services, 14 have no resrv. for Travel Agencies and Tour Operators Services

Areas of access for CARIFORUM IP in the EU

1. Legal advisory services in respect of international public law and foreign law (i.e. non-EU law)

2. Architectural services3. Urban planning and landscape architecture services4. Engineering services5. Integrated Engineering services6. Computer and related services7. Research and development services8. Market Research and Opinion Polling9. Management consulting services10. Services related to management consulting11. Translation and interpretation services

TOURISM

Tourism Services Introduces disciplines on prevention of

anticompetitive practices Facilitate transfer of technology &

participation of SME Cooperate on MR Provides for addressing environmental

& quality standards – must not constitute unnecessary barriers to trade & allow for CF participation in int’l standard setting organ.

Development Cooperation in Tourism Takes into consideration

asymmetries Subject to Article 7 of the

Agreement Upgrade nat’l accounting systems Develop capacity for environmental

management Facilitate the development of

marketing strategies for SME’s Provide for exchange programmes &

training, including languages

EU Commitments in Tourism (Cross-border/Modes 1 & 2)

Hotels, Restaurant & Catering Services All except for 3 Member States have

unbound, except for catering servicesTravel Agencies & Tour Operators 2 Member States with Unbound (BG &

HU)Tourist Guides Services 10 Member States with UnboundNo limitations under modes 2

EU Commitments in Tourism (Establishment/Mode 3) Hotel, Restaurant & catering - Only

two Member States with reservation (BG & IT)

Travel agencies & Tour operators - Only two Member States with reservation (BG & PT)

No limitations for Tourist Guides Services

EU Commitments in Tourism (Key Personnel/Mode 4)

BG: The number of foreign managers is not to exceed the number of managers who are Bulgarian citizens, in cases where the public (state and/or municipal) share in the equity capital of a Bulgarian company exceeds 50 per cent

EU Commitments in Tourism (CSS/Mode 4)

Chef de cuisine services(part of CPC 87909) EC: Advanced technical qualification and

at least 6 years of demonstrable work experience at the level of chef de cuisine may be required. Economic needs test. (Where the qualification has not been obtained in the EC and its Member States, the Member State concerned may evaluate whether this is equivalent to the qualification required in its territory.)

EU Commitments in Tourism (CSS/Mode 4)

Travel Agencies and Tour Operators Services

14 Member States - None 12 Member States - ENT 1 Member State – UnboundTourist Guides Services 21 Member States – ENT 5 Member States - Unbound 1 Member State – None (SE)

CULTURE&

ENTERTAINMENT

Classification of other Entertainment Services (UNCPC) 96191 Theatrical producer, singer

group, band and orchestra entertainment services

96192 Services provided by authors, composers entertainers and other individual artists

96193 Ancillary theatrical services n.e.c.

96194 Circus, amusement park and similar attraction services

96195 Ballroom, discotheque and dance instructor services

96199 Other entertainment services n.e.c.

Protocol on Cultural Cooperation

Based on the UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions;

Speaks to having ratified or intending to do so promptly;

Highlights the importance of cultural cooperation taking into consideration the degree of development of cultural industries, imbalances of cultural exchanges and the existence of preferential schemes for the promotion of cultural content

Cultural Cooperation Protocol (cont.)

Sets the framework for cooperation; Improve conditions for exchange of cultural

activities & redressing the structural imbalances & asymmetrical patterns;

Preferential treatment for cultural exchanges & dialogue to develop cultural policies & industries; create opportunities for cultural goods &

services; and Foster good practices in IP

Cultural Cooperation Protocol (cont.)

Training and increased contacts between artists and other cultural professional & practitioners; and

Facilitate the temporary stay of cultural professionals & practitioners for a period of 90 days within 12months; Provided they are not engaged in selling their services to the general public; do not receive remuneration in the territory of temporary stay, not to engage through a contract outside of the territory of temporary stay

Cultural Cooperation Protocol (cont.)

Technical Assistance for the development of cultural industries; implementation of cultural policies and promoting production & exchange; and for the usage and transfer of technologies and know-how;

Promotion of networks; encourage joint productions;

dissemination of publications

Cultural Cooperation Protocol (cont.)Audio-visual Negotiation & implementation of co-production

agreements Facilitate access to co-production agreements EC wide access for co-production Access to funding for the creative sector Cooperation on standards to ensure

compatibility & interoperability of technologies Facilitate rental & leasing of technical material

& equipment. Facilitate the digitalisation of audio-visual

archives

“European Works”

Directive 89/552/EECWorks co-produced within the frameworks

of agreements concluded between the Community & third countries shall be deemed to be European works provided that: the co-producers from the Community

supply a majority share of the total cost of production and that the production is not controlled by one or more producers established outside the territory of the Member States

Offer by the EC in Entertainment Services

For Mode 1 25 Member States have scheduled UnboundFor Mode 2 CY, CZ, FI, MT, PL, RO, SK, SI: Unbound BG: Unbound, except for theatrical producer, singer

group, band and orchestra entertainment services (CPC 96191); services provided by authors, composers, sculptors, entertainers and other individual artists (CPC 96192); ancillary theatrical services (CPC 96193)

EE: Unbound for other entertainment services (CPC 96199), except for cinema theatre services

LT, LV: Unbound, except for cinema theatre operation services (part of CPC 96199)

Offer by the EC in Entertainment Services (cont’d)

CY, CZ, FI, MT, PL, RO, SI, SK: Unbound BG: Unbound except for theatrical

producer, singer group, band and orchestra entertainment services (CPC 96191), services provided by authors, composers, sculptors, entertainers and other individual artists (CPC 96192) and ancillary theatrical services (CPC 96193)

EE: Unbound for other entertainment services (CPC 96199) except for cinema theatre services

LV: Unbound except for cinema theatre operation services (part of CPC 96199)

Offer by the EC in Entertainment Services (cont’d)

26 Member States (excluding Belgium) granted access under Entertainment services (other than audio-visual) for CSS EC 15 Provisionally in 2008 EC10 after 3 years Bulgaria & Romania after 5 years

Computer & RelatedServices

EU Commitments in Computer & Related Services

Modes 1), 2) & 3) None CSS & IP

CY, DE, EE, EL, FR, IE, LU, MT, NL, PT, SI, SE: None.

15 Member States with ENT ES, IT, PL: Economic needs test for independent professionals.

TELECOMMUNICATION SERVICES

Telecommunications Services

Section 4 - Sets the principles for telecommunications services other than broadcasting

Regulatory Authority

Body (bodies) charged with regulating telecoms

Must be legally distinct & functionally independent & empowered to regulate the sector

Task must be made public & easily accessible

Decisions & procedures must be impartial

Parties have the right to appeal to an indep. body

Authorisation Authorisation by notification Terms & conditions must be made public May be required to address issues of numbering &

frequencies Where a license is required:

the criteria & the reasonable time granting must be made publicly available;

the reasons for denial shall be made known in writing to the applicant on request;

the applicant shall be able to seek recourse before an appeal body where a licence is unduly denied;

licence fees shall not exceed the administrative costs normally incurred in the management, control and enforcement of the applicable licences.

Competitive safeguards

Subject to the regulatory framework set out for Telecoms.

Major suppliers must be prevented from engaging in or continuing anti-competitive practices

Interconnection Authorised suppliers have the right to negotiate

interconnection agreements Info. to be used solely for the purpose for which it

was supplied interconnection shall be provided:

under non-discriminatory terms , conditions & rates and of a quality no less favourable than that provided for its own like services or other affiliates;

in a timely fashion, on terms, conditions and rates that are transparent & reasonable; and

upon request, at points in addition to the network termination points offered to the majority of users (subject to charges that reflect the cost of construction of necessary additional facilities)

Interconnection (cont.) Procedures must be made publically

available Interconnection agreements or

reference offers must be made publically available by major suppliers

A service supplier shall have recourse, to an independent domestic body to resolve disputes regarding appropriate terms, conditions and rates for interconnection

Universal service

Parties have the right to define the kind of US obligations it wishes to maintain

Obligations must be administered in a transparent, objective non-discriminatory manner

All suppliers are entitled to ensure US

Telecommunications

Parties must ensure confidentiality of data

National regulatory authorities shall resolve disputes in a reasonable time

E-Commerce Recognises e-commerce increases trade

opportunities Agree to cooperate & promote the

development of e-commerce Must be compatible with the highest

int’l standards of data protection Deliveries considered provision of

services Dialogue or regulation (exchange of

information) – recognition of certificates or electronic signature, liability of intermediary providers, protection of consumers, treatment of unsolicited communications

FINANCIALSERVICES

Financial Services

Special provisions Section 5 Articles 103 – 108

Means any service of a financial nature offered by a financial service supplier

Comprises Insurance & insurance-related services

Direct insurance (including co-ins.) Reinsurance & retrocession Insurance intermediation Services auxiliary to insurance

Financial Services (cont.) Financial service supplier does not

include a public entity – all natural or juridical persons providing financial services

Public entity- central bank or monetary auth. Or entity owned or controlled by the Parties engaged in governmental functions

New financial services – includes services related to existing or new products or the manner in which the product is delivered

Financial Services (cont.)

Banking & other financial services include: Acceptance of deposits etc. Leasing Payments & money transmission Guarantees & commitments Money brokering Settlement of clearing services Advisory, intermediation

Prudential carve-out

Parties may adopt or maintain measures for prudential reasons Protection of investors, depositors etc. Ensure integrity & stability of the

financial system Not required to disclose information

relating to affairs & acc

Effective & transparent regulations New provision (GATS Plus) Provide measures either by official

publication or in other written or electronic form to allow for comment

Make available requirements for application to supply financial services

Provide information on request of an applicant

Parties shall endeavor to facilitate the implementation & application of int’l agreed standards for regulating & supervising the sector

New Financial Services

Parties must permit financial service suppliers to provide any new financial service of a type similar to those permitted under its domestic law in like circumstances

Where authorisation is required it shall be made within a reasonable time

Specific exceptions

Parties not prevented from conducting activities forming part of public retirement plans except where regul allows financial service supplier in competition with public entities or private institutions

Data processing

Parties must allow transfer on information into & out of the territory for data process in the ordinary course of business

Safeguards shall be adopted to protect privacy & fundamental rights & freedoms

EC Commitment (Modes 1&2)Insurance 20 Member States - Unbound for direct

insurance services except for insurance of risks relating to: Maritime shipping and commercial aviation and space launching and freight (including satellites) & goods in international transit

FR: Insurance of risks relating to ground transport may be carried out only by insurance firms established in the Community.

EC Commitment (Comm. Pres)Insurance

12 Member States with limitations for establishment including: The need to have a legal form corresponding or

comparable to a joint stock company or a mutual insurance association

subject to the evaluation of supervisory authorities

Local incorporation prior operational experience of at least five years Establishment through a branch

EC Commitment (KP & GT)Insurance

AT: The management of a branch office must consist of two natural persons resident in Austria.

EE: For direct insurance, the management body of an insurance joint-stock company with foreign capital participation may include citizens of non-EC countries only in proportion to the foreign participation and not more than half of the members of the management group. The head of the management of a subsidiary or an independent company must permanently reside in Estonia.

ES: Residency requirement and three years of experience for the actuarial profession

IT: Residency requirement for the actuarial profession. FI: The managing directors and at least one auditor of an

insurance company shall have their place of residence in the EC, unless the competent authorities have granted an exemption

EC Commitment BankingMode 1 20 Member States (including France) -Unbound

except for provision of financial information and financial data processing and for advisory and other auxiliary services excluding intermediation

Mode 2 BG: Limitations and conditions relating to the use

of telecommunications network may apply. PL: For the provision and transfer of financial

information, and financial data processing and related software: Requirement to use the public telecommunication network, or the network of another authorised operator.

EC Commitment (Comm. Pres)Banking

EC: Only firms having their registered office in the Community can act as depositories of the assets of investment funds. The establishment of a specialised management company, having its head office and registered office in the same Member State, is required to perform the activities of management of unit trusts and investment companies

EC Commitment (KP & GT)Banking

BG: Permanent residence in Bulgaria is required for the executive directors and the managerial agent.

FI: The managing directors and at least one auditor of credits institutions shall have their place of residence in the EC, unless the Financial Supervision Authority has granted an exemption. The broker (individual person) on derivative exchange shall have his place of residence in the EC.

IT: Condition of residence within the territory of a Member State of the EC for “promotori di servizi finanziari” (financial salesmen)

LT: At least one manager must be an EC citizen. PL: Nationality requirement for at least one of the

bank executives

PROFESSIONALSERVICES

Mutual Recognition (MR) Nothing in this Title shall prevent the Parties

from requiring that natural persons must possess the necessary qualifications and/or professional experience specified in the territory where the service is supplied, for the sector of activity concerned.

Professional bodies encouraged to Jointly develop & provide recommendations on MR of criteria applied re authorisation, licensing, operation and certification

Negotiations to start no later than 3 years after entry into force of the Agreement

MR (cont.) Start with accounting, architecture,

engineering & tourism Recommendations to be reviewed by the

Joint Committee for consistency If consistent negotiate through comp. auth

a MRA Consistent with GATS Art. VII – shall not be in a

manner which constitutes a means of discrim. between countries in its application & shall afford oppor. for other interested Mem to negot.

CF- EC Trade & Development Committee to review progress every 2 years

Procedures Where a specific commitment has been made

& authorization is required, the competent authorities of the Parties shall, within a reasonable period of time after the submission of an application considered complete inform the applicant of the decision concerning the application.

The Parties shall maintain or institute judicial, arbitral or administrative tribunals or procedures which provide, at the request of an affected investor or service supplier, for a prompt review of, and where justified, appropriate remedies for, administrative decisions.

Architectural & EngineeringServices

EU Architectural Commitments

Mode 1 15 Member States have no reservations; 12 Member States have reservations of

unbound (States have the ability to regulate/change the trade regime in the sector) and one in addition requires application to national rules.

Mode 2 - there are no limitations

Architectural Commitments (cont.)

Commercial presence Only two Member States with

reservations (BG: For projects of national or regional significance, foreign investors have to act in partnership or as subcontractors of local investors.

LV: For architectural services, in order to receive a licence enabling them to engage in business activity with full range of legal responsibility and rights to sign a project, practice of 3 years in Latvia in the field of projecting and university degree is required.)

EU Commitments in Engineering & Construction Services

Engineering Services Mode 1

19 Member States have no limitations; 8 Member States have scheduled unbound

(States have the ability to regulate/change the trade regime in the sector)

Mode 2 - there are no limitationsConstruction Services Modes 1 & 2 - None

Commercial presence Limitations (Engineering & Construction Services)

Only one Member State with reservations - BG: For projects of national or regional significance, foreign investors have to act in partnership or as subcontractors of local investors.

EU Mode 4 For CSS - ENT reservations in 12 Member

States in Architecture and Engineering – No commitment for Construction services

For IP – ENT reservations in 12 Member States for Architectural & Engineering services – No commitment for Construction services

For Key personnel & Graduate trainees – reservations only in 5 Member States (residency, citizenship, trade permit & specific authorization)

Construction Services - BG: Foreign specialists must have experience in the field of construction of at least two yearsMT: Nationality condition

Key Personnel & Graduate Trainees (Architectural Services)

Only 5 Member States have reservations– EE: At least one responsible person

(project manager or consultant) must be resident in Estonia;

BG: Foreign specialists must have experience in the field of construction of at least two years. Nationality condition for urban planning and landscape architectural services; and

EL, HU, SK: Residence requirement

EU Commitment in construction Services

Modes 1 & 2 – None Mode 3 – KP & GT

BG: Foreign specialists must have experience in the field of construction of at least two years

MT: Nationality condition

Accounting, Auditing & Bookkeeping

Services

EU Accounting Commitments

Mode 1Accounting & Bookkeeping Services 20 Member States have no reservations; 7 Member States have reservations of

unbound (States have the ability to regulate/change the trade regime in the sector) and one in addition requires application to national rules.

EU Accounting Commitments (cont.)

Auditing Services 6 Member States have no reservations 21 Member States have reservations on

unbound 3 Member States have reservations of

either nationality (AT) approval (SE) or to work in conjunction with an accredited auditor (LT)

Mode 2 - there are no limitations

Accounting Commitments (cont.)

Commercial presenceAccounting & Bookkeeping Services Only three Member States with

reservations AT: Foreign accountants’ (who must be authorised

according to the law of their home country) equity participation and shares in the operating results of any Austrian legal entity may not exceed 25 per cent, if they are not members of the Austrian Professional Body

CY: Access is subject to economic needs test. Main criteria: the employment situation in the sub-sector.

DK: In order to enter into partnerships with Danish authorised accountants, foreign accountant have to obtain permission from the Danish Commerce and Companies Agency.

Accounting Commitments (cont.)

Auditing Services10 Member states with reservations

these include; Limitations on equity participation Economic Needs Test (ENT) – main

criteria is the employment situation in the sub-sector

Residency requirements approval

EU Mode 4 For CSS - ENT reservations in 12 Member

States in Accounting, Architecture and Engineering & Travel agencies & tour operators & 21 States for Tourist Guides Services

For IP – ENT reservations in 11 Member States for Accounting; and 12 Member States for Architectural & Engineering services

For Key personnel & Graduate trainees – reservations only in 5 Member States (residency, citizenship, trade permit & specific authorization)

Key Personnel & Graduate Trainees (Acc & BK Cont.)

Only 1 Member State with a reservation FR: Provision of accounting and

bookkeeping services is conditional on a decision of the Minister of Economics, Finance and Industry, in agreement with the Minister of Foreign Affairs. The requirement of residence cannot exceed 5 years.

Auditing Services Residency or nationality requirements in 7

Members States

CARIFORUM Services Commitments

CARIFORUM Commitments

GATS structure – does not include The Bahamas & Haiti

Takes into account regional integration progress and sensitivities of individual states/sub-groupings

Key personnel & Graduate trainee where there is a mode 3 commitment, subj. to an ENT – Main criterion is availability of persons with the requisite skills in the local labour market (mode 4) or an assessment of the relevant market situation ie. number of & impact on existing service suppliers

CARIFORUM Horizontal commitments Treatment may be reserved with

respect to subsidies or grants Mode 3 – requirements for

incorporation, registration & limitation on the acquisition of land

Mode 4 – Unbound except for Key Personnel & graduate trainees not available locally

Movement of Natural Persons In those sectors in which economic

needs tests (ENTs) are applied for Mode 4, the main criterion will be availability of persons with the requisite skills in the local labour market. With regard to other modes of supply, the main criteria for ENTs will be the assessment of the relevant market situation where the service is to be provided, with respect to the number of, and the impact on, existing service suppliers.

Tourism Services

CARIFORUM Commitments in Tourism

Hotels, Restaurants and Catering Services

Mode 1 - 12 Member States scheduled Unbound*(excluding restaurants)

Mode 2 - No reservations (None)Mode 3 – 7 MS scheduled none, other have

limitations on developments in excess certain nbr of rooms or on ownership of non-ethnic restaurants

Mode 4 – Unbound except as indicated in the horizontal section (ENT for KP, GT)

CARIFORUM Commitments in Tourism (Cont’d)

Marina Services 12 Ms made commitments – generally (Mode 1 & 2 None, Mode 3 limitation on type of marinas)

Spa Services 11 MS made commitments - 1), 2) 3)None (TTO unbound mode 2, 3 with limitations on mode 3)

Mode 4 – Unbound except as indicated

in the horizontal section (ENT for KP, GT)

Other CF Commitments in Tourism

Travel Agencies and Tour Operators Services 5 MS made commitments - Modes 1,

2, 3 None (DR with limitation on NT) Tourist Guide Services

Only the DR (Modes 1, 2 & 3 None)

Mode 4 – Unbound except as indicated in the horizontal section (ENT for KP, GT)

Summary of CARIFORUM Commitments in Tourism

Commercial Presence CARIFORUM countries were generally

liberal in their offer on commercial presence for Hotels, Restaurants and Catering with limitations such as ENTs relating only to small hotels & nationality conditions in Trinidad and Tobago

For Travel Agencies and Tour Operators, there were limited commitments (only 5 Member States)

For Tourist guide services only the DR which had no limitations except for mode 4

Summary of CARIFORUM Commitments in Tourism (cont.)

Temporary presence of natural persons for business purposes

Limited commitments on CSS and IP, with most states scheduling “Unbound except for horizontal commitments” - Except in Hotel Development, where Dominica and Grenada have limited entry to the managerial and specialist skill level. In Marina services, 3 of the 12 scheduling countries, Antigua and Barbuda, St. Lucia and Trinidad and Tobago, scheduled none for all categories except CSS and IP.

Culture & Entertainment

CF Commitments

All Member States have schedule None for modes 1 & 2

Mode 3 – KNA & GRD - have a require that persons may have to employ national artists & entertainers. TTO - Unbound

Mode 4 – subject to ENT for CSS & IP(BRB, BEL & SUR – limited to some sub-

sectors)

PROFESSIONALSERVICES

Architectural & EngineeringServices

CARIFORUM commitments in Architectural Services

All Member states have scheduled Architectural services (11 Member States have committed all areas)

Most have scheduled None for modes 1 & 2 (2 Member States, have scheduled Unbound)

Mode 3- 5 Member States have scheduled limitation on joint venture (others scheduled none or unbound)

Mode 4 – Unbound & ENT for KP, & GT)

CARIFORUM commitments in Engineering services

All Member states have scheduled Engineering services (9 Member States, have committed Engineering design services for the construction of civil engineering works & Engineering design services for industrial processes and production

13 Member States have scheduled none for modes 1 & 2

CARIFORUM commitments in Engineering services (cont.)

Mode 3) – None, Joint Venture, transfer of knowledge and technology required, e, Unbound

Mode 4 Unbound & ENT for key personnel (business visitors, managers & specialists) & graduate trainees

Accounting, Auditing & Bookkeeping

Services

CARIFORUM commitments in Accounting, Auditing & Bookkeeping Services

All Member States, have scheduled accounting & auditing services (3 Member States have further broken down commitments)

10 Member States have scheduled None for modes 1 & 2 (4 Member States have scheduled Unbound)

Mode 3 - 9 Member States have scheduled none, other Unbound or 1 phased-in

Mode 4 - Unbound & ENT for key personnel (business visitors, managers & specialists) & graduate trainees

FINANCIALSERVICES

Summary of CARIFORUM commitments In the majority of States there are no

limitations in modes 1 & 2 Reflective of the importance on these

modes for trade in services (for mode 1 have to take into consideration rates for telecommunication services)

Mode 3 is much more restrictive - Mostly unbound or joint venture requirements Reflects the need to develop regulations

and contribution to the sector through joint ventures

Mode 4 limited commitments - subject to ENT (availability of skills in the market) Reflects the endeavor to encourage the

development of small/individual suppliers

Movement of Natural Persons

Mechanism to address the ENT Collection of data Thorough assessment of what

policy is in place for temporary entry

What labour market test is in place (national & regional) How do we assess the HR needs

Other issues to consider (Demand-side)

Demand-side issues (market access, consumers, target markets, regulatory regimes)

Identify persons & companies in the EU for partnership

Need to MRA to capitalize upon opportunities

Other issues to consider (Supply-side)

Supply-side issues (Competitiveness, product quality, HR, Technological capabilities)

Identify best practices & standards for MR

Need to develop capacity to meet nat’l & int’l standards

Increased investment in new technologies

Technical assistance for professional development

Provide training to contest the EU market

Implementation issues

CARIFORUM-EC cooperation and regional CARIFORUM integration

Future Liberalisation; Facilitatory Measures Sectoral Measures Measures on Mode of Supply Harmonisation & enactment of a

modern regulatory framework

Implementation (cont.)

Complete the process of the CARICOM – DR services schedules

Develop a national strategic development plan

Development & enforcement of laws Development of required legislation

for registration & certification

Implementation issues (cont.)

Conduct nat’l consultations toward development of policies and legislation for the implementation of provisions & commitments in services & investment

Conduct nat’l consultations towards the future liberalisation of services & investment commitments

Review legislation & implement new legislation to facilitate trade in all sectors liberalised

Implementation issues (cont.)

Create the policy framework for conducting e-commerce

Develop & implement legislation on ICT

Analysis of regulatory framework - Amending legislation & adopting new

Training adequate project development to

draw down development assistance

Implementation issues (cont.)

Train specialists to monitor other FTA and address granting MFN to EU service providers – seminars with immigration

Sensitization of all stakeholders on legal requirements for temporary movement

Greater collaboration/coordination between Ministries and agencies

establishment of enquiry points

implement measures to: facilitate prior publication of new

measures; specify and publicize application

requirements; establish mechanisms for the

timely response to application queries.

Way forward (cont.) What is necessary for your sector to become

more competitive What you need to know about the EU & DR

market How the cooperation provisions can assist Do you have the relevant laws & regulations in

place Do you have the necessary technology Where is training required How effective is the organizational structure Cost of telecoms (important factor for mode 1)

Way forward Implement the provisions of the CSME

that will allow for the free movement of Service Suppliers; Registration, Certification, Recognition & MR

Implement necessary regulations for the regulatory and administrative operation of the profession;

Determine the areas of interest for developing co-production agreements Negotiation of regional co-production

agreements

Way forward (cont.)

Initiate the process for negotiating the MRA between CARIFORUM & the EU Development of proposals &

recommendations Develop/make operational the

mechanism to address implementation

Thank you