1. SPECIAL
OFFICE OF TRADE NEGOTIATIONS
… for trade matters
OTN Update
December 8, 2010
The EPA Built-in Agenda
The negotiation of the CARIFORUM-EU1 Economic Services and Investment
Partnership Agreement was completed in 2007 and the
Agreement was signed in 2008. However, the In the subject area of Services, Article 62 speaks to
Agreement contains what is referred to as a built-in a commitment of the Parties to engage in further
agenda for future negotiations in a number of areas. negotiations on investment and trade in services,
That agenda addresses the commitments the Parties no later than five years from the date of entry into
have made regarding future work that they will force of the EPA with the aim of enhancing the
undertake with respect to a number of disciplines under overall commitments undertaken.
the Agreement.
There is also a similar commitment towards
progressive liberalization of Investment as specified
in Article 74. In this regard, the Parties have agreed
to review the legal framework, the investment
environment, and the flow of investment between
them consistent with their commitments in
international agreements. This is to be undertaken
1
The Treaty of Lisbon, which was signed on December 13 2007, no later than three years after the entry into force of
amended the Treaty on European Union and the Treaty establishing
the European Community. Following its entry into force on December the EPA and at regular intervals thereafter. Also
1, 2009, the economic and political union of 27 European states is with respect to Services, the EPA speaks to the
referred to as the European Union. The former nomenclature, the
European Community (EC) has been superseded. commencement of negotiations of Mutual
Recognition Agreements (MRAs) no later than
OTN UPDATE is the flagship electronic trade newsletter of the Office of Trade Negotiations (OTN), formerly the Caribbean Regional Negotiating Machinery
(CRNM). Published in English, it is a rich source of probing research on and detailed analyses of international trade policy issues and developments
germane to the Caribbean. Prepared by the Information Unit of the OTN, the newsletter focuses on the OTN, trade negotiation issues within its mandate
and related activities. Its intention is to provide impetus for feedback by and awareness amongst a variety of stakeholders, as regards trade policy
developments of currency and importance to the Caribbean.
http://www.crnm.org

2. 2
three years after entry into force. Under Article 85 of it is expected that CARIFORUM and the EU will use
the EPA, both sides have made the commitment to the recommendations to negotiate an agreement
encourage professional bodies to develop and provide on mutual recognition through their assigned
recommendations on mutual recognition of procedures competent authorities.
for the authorization, licensing, operation and
certification of investors and service suppliers. It is The movement towards an MRA in architecture in
intended that mutual recognition agreements will be particular has been building momentum. In this
negotiated in sectors such as accounting, architecture, regard, a Memorandum of Understanding was
engineering and tourism. signed in November 2009 between the Association
of Commonwealth Societies of Architects in the
MRAs set out the arrangements and conditions Caribbean (ACSAC), the Federation of Caribbean
through which trade partners are able to accept each Association of Architects (FCAA) and the Global
other’s methods of accrediting professionals in the Foundation for Democracy and Development -
respective educational and certification systems. While Center for the Study of Architecture, Urban
the EU has regulations which facilitate the mutual Planning and Habitat of the Dominican Republic
recognition of diplomas exclusively for EU nationals, (CEDARQ-FUNCLODE), and the Architects Council
for non-EU nationals, the right of professional service of Europe (ACE).
providers to practise in one EU member state does not
automatically confer the right to practise in another. The MOU reflected an intention to cooperate in
The establishment of MRAs with European various areas and exchange information with a
counterparts will be of benefit to CARIFORUM view to negotiating a Mutual Recognition
professionals because the agreements will create an Agreement.
arrangement that will assist the reduction of the At a meeting convened in June 2010 by the
administrative burden, time and cost of meeting Government of Curacao, the EU and Caribbean-
domestic requirements in each EU Member State Export for Regional Architects and Interior
market where they do business. Designers, a second MOU was signed between the
The process of the negotiation of MRAs is largely a FCAA, the ACSAC, the Unie Van Architected in
private sector driven exercise which emphasises Suriname (UAS), and the Society of Antillean
dialogue and consultation between relevant Architects & Engineers (SAIA) of the British Virgin
professional bodies in CARIFORUM and the EU. Islands.
Based on negotiations amongst themselves, This MOU designated FCAA as a coordinator of
professional bodies of both regions will be expected to some specific MRA related activities, and
eventually make recommendations on mutual recognized the need for an intra-Caribbean MRA
recognition to the CARIFORUM-EU Trade and (the latter was a major conclusion of the meeting).
Development Committee which will assess the FCAA has already written formally to the Architects
consistency of those recommendations with the EPA. If Council of Europe advising them of the progress
it is determined that there is sufficient correspondence made and plans.
in the regulation of the professions in each region, then
OTN UPDATE is the flagship electronic trade newsletter of the Office of Trade Negotiations (OTN), formerly the Caribbean Regional Negotiating Machinery
(CRNM). Published in English, it is a rich source of probing research on and detailed analyses of international trade policy issues and developments
germane to the Caribbean. Prepared by the Information Unit of the OTN, the newsletter focuses on the OTN, trade negotiation issues within its mandate
and related activities. Its intention is to provide impetus for feedback by and awareness amongst a variety of stakeholders, as regards trade policy
developments of currency and importance to the Caribbean.
http://www.crnm.org

3. 3
With respect to the OTN’s work plan in the area of which may impact the way the origin of goods is
MRAs, an OTN/TradeCom Project that supports MRA determined. Any modifications of the ROO shall be
preparations is being rolled out. That project facilitates effected by a decision of the Joint CARIFORUM-EU
the undertaking of comparative analyses of both intra- Council.
CARIFORUM and CARIFORUM-EC qualification-
related regulations for architects which will (i) identify Regarding Competition Policy, six (6) years after
the specific negotiating objectives in an MRA, (ii) the specified CARIFORUM Competition authorities
develop a CARIFORUM model-MRA, and (iii) facilitate are established, the operation of the Competition
a mission between CARIFORUM and the EC that will Policy Chapter is to be reviewed. One of the
allow CARIFORUM professionals to meet with their primary areas to be canvassed in the review is that
European professional counterparts and to explore of enforcement cooperation between the Parties.
markets there. The expectation is that by that time, CARIFORUM
Competition authorities will have developed
A similar study was also approved by TradeCom for sufficient practice and experience in the
CARIFORUM Engineers. Both studies were started in enforcement of the competition policy rules. It is
October 2010 and will be concluded in December further anticipated that having the benefit of such
2010. It is hoped that a similar facility can be created experience will better enable CARIFORUM to come
for Accountants. to an agreement with the EU on the expansion of
the scope of the enforcement cooperation
The work being marshalled in this vein will also provisions, as well as the scope of the
provide useful insights which could help inform the CARIFORUM entities with which the European
strategy and proposals developed with respect to the Commission will cooperate.
treatment of professional services in the CARICOM-
Canada negotiations for a Trade and Development The built-in agenda also addresses Intellectual
Agreement. Property. With respect to Geographical Indications
the Agreement has allowed for discussions on
protection of products as Geographical Indications.
Possible Geographical Indications in the
Other Areas of Interest CARIFORUM States are to be submitted to the
The EPA also addresses a commitment of the Parties Trade and Development Committee for discussion
to continue to address Rules of Origin (ROO) as well and comment within the first six months after the
as Competition Policy. With respect to Rules of Origin, Agreement enters into force. The Trade and
within the first five years of the entry into force, the Development Committee is the institutional platform
Parties are expected to review the provisions related which provides the opportunity to exchange
to ROO, with a view to further simplifying the concepts experience with European specialists on, for
and methods used for determining origin. This review example, retrieving Geographical Indications from
will take into account the likely developments in use as generic terms.
technologies, production processes and other factors,
OTN UPDATE is the flagship electronic trade newsletter of the Office of Trade Negotiations (OTN), formerly the Caribbean Regional Negotiating Machinery
(CRNM). Published in English, it is a rich source of probing research on and detailed analyses of international trade policy issues and developments
germane to the Caribbean. Prepared by the Information Unit of the OTN, the newsletter focuses on the OTN, trade negotiation issues within its mandate
and related activities. Its intention is to provide impetus for feedback by and awareness amongst a variety of stakeholders, as regards trade policy
developments of currency and importance to the Caribbean.
http://www.crnm.org

4. 4
The Agreement also includes provisions on Agreement. With respect to the review of the Rules
cooperation to identify and develop CARIFORUM of Origin within the first five years of the entry into
Geographical Indications to the point where they force for instance, it would be impractical that a
have acceptable grounds for legal protection before review of the ROO take place, for example, in the
1 January 2014, the date by which the year 2023, 3 years after the year of entry into force
CARIFORUM States must establish a system for of 2020, and 15 years after the signing and
the protection of Geographical Indications. provisional application of the Agreement. Arguably,
it would be in the interest of both Parties for a
review of the ROO and thus the entry into force, to
take place much earlier than this schedule would
Management of timing
allow. The example as illustrated outlines an
Most of the work scheduled under the built-in unlikely scenario. However, the point is that the
agenda relates to timeframes that are contingent date of entry into force and the dates of signature
upon the entry into force of the agreement. The and provisional application of the Agreement are
EPA will enter into force after the Parties have not meant to be incongruously separated by long
notified each other that they have completed the timeframes.
procedures necessary for this purpose. In so doing,
That aside, in the interim period before entry into
the Parties will have expressed their consent to be
force is effected, much preparatory work related to
bound by the Agreement. Provisional application of
the built-in agenda will need to be put in train as
the Agreement, which took effect on December 29,
soon as possible. In this regard, the Region will
2008, has enabled the signatory states to derive
need to prioritize the planning of technical work and
benefit from the Agreement until it enters into force.
activities which will need to be conducted to
The domestic procedures that are necessary for
support the commencement and completion of the
entry into force of the EPA vary across the
built-in agenda. This planned programme will need
CARIFORUM states. In most cases, a decision of
to be executed at both the regional and national
the Cabinet will suffice though this does not
levels.
preclude referral of the matter to the legislature. In
contrast, in Antigua and Barbuda, Haiti, the The commencement of work on the built-in agenda
Dominican Republic and Suriname, an act of the by CARIFORUM States should be considered
legislative branch of government is required. . separate to the programme of work and activities
as outlined in part in the EPA Roadmap2 that is
To date, not all the CARIFORUM states have
currently being carried out to facilitate the
completed the necessary procedures to enable
entry into force of the EPA. Therefore, correlating
timelines related to the built in agenda will be
delayed until such processes are completed.
2
However, in practical terms, entry into force should The EPA Roadmap is available at
http://www.crnm.org/index.php?option=com_docman&task=cat_vi
not follow an extensively protracted period after the ew&gid=72&Itemid=95
signing and provisional application of the
OTN UPDATE is the flagship electronic trade newsletter of the Office of Trade Negotiations (OTN), formerly the Caribbean Regional Negotiating Machinery
(CRNM). Published in English, it is a rich source of probing research on and detailed analyses of international trade policy issues and developments
germane to the Caribbean. Prepared by the Information Unit of the OTN, the newsletter focuses on the OTN, trade negotiation issues within its mandate
and related activities. Its intention is to provide impetus for feedback by and awareness amongst a variety of stakeholders, as regards trade policy
developments of currency and importance to the Caribbean.
http://www.crnm.org

5. 5
implementation of the EPA. However, the as well as new spheres of cooperation that could
commencement and later completion of the work further enhance the trade and investment
and activities identified under the built-in agenda relationship between CARIFORUM and Europe.
will be essential to the realization of the full benefits
of the Agreement as previously shown, for
example, in the case of the negotiation of MRAs.
Furthermore, CARIFORUM’s undertaking of the The Road Ahead
required programme planning and initial
In the cases of both CARIFORUM and the EU,
preparatory work necessary to implement the built-
completing the built-in agenda will be a challenging
in agenda would the Region’s commitment and
process fraught with many institutional,
intent to honour the Agreement through ratification
administrative and logistical hurdles. CARIFORUM
and to engender the full realization of its potential
itself faces many capacity constraints that add a
benefits sooner rather than later.
different dimension to their challenges. Limited
The process that is contemplated to facilitate the capacity for extensive and sustained consensus
implementation of the built-in agenda is also of building and coordination of positions amongst
strategic value to the Region. By facilitating a governments, and between governments and the
tracking of its evolving trade relationship with private sector is a perennial problem within
Europe under the Agreement, the Region will be developing countries, albeit not unknown within the
better positioned to navigate, adjust and coordinate Organisation for Economic Co-operation and
its trade and development policies towards Europe Development (OECD) countries. The early
as well as other key existing and potential trade planning and mapping of activities under the built in
partners. agenda would help to identify specific challenges
as well as possible solutions to those challenges,
The commitment to engage in further negotiations which could also be supported through the use of
in Services and Investment, for example, will the development assistance which has been
provide the Region with an opportunity to negotiate earmarked under the Agreement.
improved terms of access to the EU market. Such
terms should be consistent with the evolving
capacity and development of the Region’s sectors. ***************
At the same time, those terms should also be
developed to ensure that the Region captures the
benefits and trading opportunities that Europe may
accord to its trading partners in the future. This
could involve not only a deeper and wider removal
of restrictions to the EU market but could also
include the establishment of new or more robust
rules and disciplines on services and investment,
OTN UPDATE is the flagship electronic trade newsletter of the Office of Trade Negotiations (OTN), formerly the Caribbean Regional Negotiating Machinery
(CRNM). Published in English, it is a rich source of probing research on and detailed analyses of international trade policy issues and developments
germane to the Caribbean. Prepared by the Information Unit of the OTN, the newsletter focuses on the OTN, trade negotiation issues within its mandate
and related activities. Its intention is to provide impetus for feedback by and awareness amongst a variety of stakeholders, as regards trade policy
developments of currency and importance to the Caribbean.
http://www.crnm.org