Natallie Rochester-King Technical Adviser, Services Specialist

1. Update on Implementation of the CARIFORUM-EC EPA and on the CARICOM-Canada NegotiationsWorkshop of Trade Policy & Negotiating Skills for Senior OfficialsKingstown, 4-8 October 2010 Natallie Rochester-King Technical Adviser, Services Specialist Office of Trade Negotiations, CARICOM Secretariat www.crnm.org

2. Presentation Outline • CARICOM internal liberalisation of trade in services • Liberalisation and regulatory cooperation in the CARIFORUM-EC EPA • Snapshot of the CARIFORUM-EC EPA on Services and Investment • Update on the CARICOM-Canada Negotiations • Ongoing Technical Work for EPA Implementation and CARICOM-Canada Negotiations

3. Typical Provisions of a Trade in Services Agreement • Scope & Definitions • What is covered, what is trade in services • General Obligations & Disciplines • MFN, Transparency, Domestic Regulation, Mutual Recognition, General and Security Exceptions, Monopolies • Specific Commitments & Liberalisation • Market access, national treatment, list of commitments, changes to commitments • Institutional Provisions • Bodies set up to manage the Agreement (consultation, dispute settlement, cooperation) • Annexes (mainly sector-specific – telecom, fin services, culture)

4. Services Liberalisation in CARICOM Chapter 3- Establishment, Services, Capital & Movement of Community Nationals Scope • Applies to right of establishment, right to provide services, right to move capital • Does not apply to activities in the exercise of govt. authority Member States’ Obligations: • Art. 32 (1) No new restrictions on the right of establishment (2) Notification of existing restrictions • Art. 33 – Phased removal of restrictions on the right to establishment subject to precedents & locus standi of private entities (Art.221 &222) • Art. 37 – Removal of Restrictions on Provision of Services, including 3(c) on entry of personnel 3(e) access to land, buildings • Art. 40 – Removal of Restrictions on Movement of Capital & Current Transactions

5. Services Liberalisation in CARICOM Chapter 3- Establishment, Services, Capital & Movement of Community Nationals • Article 35 of the Revised Treaty Acceptance of Diplomas, Certificates and Other Evidence of Qualifications • Free Movement for certain categories of persons: University GraduatesMedia WorkersSportspersonsArtistes Musicians Domestic workers Higglers/Informal Commercial Importers (ICIs) Persons with Certified Vocational Qualifications (CVQs)

6. Stages for Development of Regime for Professional Services Step 1 - Implementation of Skills Legislation to allow the free movement of university graduates Step 2 - Development of regulatory and administrative arrangements for free movement Step 3 - Establishment of a national and regional accreditation infrastructure • Caribbean Accreditation Authority for Education in Medical and Other Health Professions • Caribbean Accreditation Council for Engineering and Technology (in progress)

7. CARICOM Draft Professional Services Bill • Work since 2003 to address absence and inadequacy of regulations for professional services in CSME • Regional consultations on sector-specific bills • Health: Medical, Nursing & midwifery, Dental, Pharmacy, Veterinary, Allied health, Medical Laboratory • Non Health: Engineering, Architecture, Accountancy, Consultancy and Building Contracting • Process: • Bills sent to Chief Parliamentary Counsels  Sub-committee on Harmonisation of Laws  Legal Affairs Committee  MS Cabinet

8. CARICOM Draft Professional Services Bill • Draft Bill contains six parts: • Interpretation and definitions • Establishment of a Council • Requirements & procedures for registration & licensing • Discipline • Offences and penalites • Miscellaneous provisions

9. CARICOM Draft Professional Services Bill • Professional Services Bill to improve regulation & regulatory harmonisation regionally • Seeks to regulate profession through regulatory framework & administrative body • Body to register and license professionals (mandatory for practice), set related qualification requirements and procedures including appeals • Geographical limitations to license possible for non-CARICOM nationals • Criteria for refusal of licenses & appeal against suspension/revocation • Temporary licensing • Framework for Ethics and discipline • Ministerial role with Council approval to carryout out the purposes of the Act * Harmonisation of fees being discussed * Sets 3 year university degree as minimum for professionals with grandfathering * Not clear if all services providers to be ‘professionals’ & regulated * Safeguards through license revocation (not liked by Member States)

10. Status of Regulation Professional Services – Engineering • Title not generally protected in law • In Commonwealth Caribbean only 6 countries have registration boards • Includes Barbados, Jamaica, St. Lucia, T& T • No licensing requirement in place in most CARICOM States • Engineers have developed model law (in cooperation with Canada) but not in place

11. Status of Regulation Professional Services – Architecture • Registration, licensing and qualification requirements not in place in all CARICOM countries • Title not generally protected in law • Largely similar regulations in Commonwealth CARICOM countries (organised under ACSAC, Commonwealth Society of Architects) • Different system in Suriname, Haiti though some cooperation

12. Status of Regulation Professional Services – Accounting • Legislation on registration & registration boards in some Member States (incl. The Bahamas, Barbados, Dominica) • Institute of Chartered Accountants (ICAC) plays major role in regulation (mainly Commonwealth, coordinates w/Suriname); recognised regional body for International Federation of Accountants (IFAC) • Monitors prof. standards based on international standards • Quality standards through practice monitoring

13. Outcome of CARIFORUM-EC EPA

14. CF-EC Title II on Trade in Services, Investment and E-Commerce – Art. 60 Objectives, Scope and Coverage • Affirm WTO commitments and goal of Title to facilitate regional integration & sustainable development • Sets out arrangements for the progressive, reciprocal and asymmetric liberalisation of investment, trade in services, and for cooperation on e-commerce • Trade in services covers all modes of supply but these treated in specific chapters of Title II • Parties retain right to regulate and discretion over visa & immigration policies • Doesn’t require privatisation & doesn’t apply to subsidies or access to labour market

15. Structure of the CF-EC Title on Trade in Services, Investment and E-Commerce • Chapters on: • Commercial Presence – coverage, market access, national treatment, MFN, other agreements, investor & host state behaviour, review • Cross border supply of services - coverage, market access, national treatment, MFN • Temporary Presence of Natural Persons for Business Purpose – categories, broad commitments • Regulatory Framework - Mutual recognition agreements, Computer services, financial services, Courier, telecommunications (regulatory authority, independent regulators), maritime transport, tourism • Electronic Commerce – objectives & principles, regulatory aspects • Cooperation – commitment to cooperation, indicative list of support areas for services suppliers • Annexes & Protocols • Schedules of Market Access Commitments in Annexes • Protocol on Cultural Cooperation

16. CARIFORUM-EC EPA Title II – Investment Trade in Services & E-Commerce -Chapter 5 • Mutual Recognition (Art.85) • Parties to jointly develop MRA recommendations to the CF-EC Trade and Development Committee • Parties to encourage prof. bodies to start negotiations within 3 yrs of entry into force of the agreement (architecture named as a priority) • Competent authorities to negotiate MRA is sufficient correspondence between regulations • Negotiations to be WTO (GATS) compliant Natallie Rochester-King Implications of CF-EC EPA for Architects and Designers

17. EPA Trade in Services Compared to the GATS • WTO Plus liberalisation for CARIFORUM and for the EC • Different EPA Mode 4 Categories removes grey areas in WTO • WTO Plus Provisions on Regulations for Some Sectors • Section on Tourism • Computer Services, Courier Services (WTO plus ) • Telecoms (WTO Telecom Annex + optional Telecom Reference Paper) • Maritime Transport (WTO plus for CARICOM) • Protocol on Cultural Cooperation • Different EPA MFN Obligation • Asymmetry • CF- MFN Triggered for better treatment to major trading economy Consultations EC may opt out of better treatment • EC- MFN Triggered for better treatment to any 3rd country • Detailed provisions on cooperation on trade in services & investment • Specific roles for Joint CARIFORUM-EC Institutions

18. Update on the caricom-canada negotiations on trade in services and investment

19. Canada as a Potential Services Market • Canada is a large commercial services importer and exporter, and significant outward investor • Tourist Arrivals from Canada to SVG holding steady compared to decline from US and UK for Jan-May 2010 over 2009 figures • Vincentians entering Canada as foreign workers in various occupations PLUS • Large Vincy population in Canada (about 7100 from 1991-2006) • Goods trade taking place with Ontario, Alberta, Quebec, New Brunswick • Canada has labor shortages in several sectors of interest

20. Canada as a Potential Services Market • Vincentians entering Canada as foreign workers in various occupations • Auditors • Accountants • Investment Specialists • Creative and Performing Artists, Athletes • Childcare and Home Support Workers Metalwork and Woodwork Operators • Trades Helpers and Labourers, Logging/Forestry workers • Agriculture /Horticulture Workers • Canada has labor shortages in several sectors of interest, including: • Management in various sectors e.g. fin services, telecom • marketing & advertising • accounting, auditing, investment • construction • customer service • distribution • engineering; computer & info systems • physicians, dentists & other medical fields

21. Status of CARICOM-Canada Negotiations on Trade in Services (including Culture) & E-Commerce • 1st Round, November 2009 • Exchanges on broad principles • Presentation of Canada’s Proposed Texts on Cross-Border Services & Temporary Entry • Outline of CARICOM Broad Development Priorities • Outline of CARICOM interests in Cultural Cooperation and Trade in Cultural Services • 2nd Round, March 2010 • Presentation of Canada’s Proposed Texts on Financial Services, Telecommunications • Questions, clarifications and indication • 3rd Round, To Be Determined • Presentation of CARICOM text proposals • Presentation of CARICOM proposals on development cooperation in services • Exchanges on specific market access interests

22. Structure of Canada’s Proposed Text on Trade in Services & Investment • Chapter on Trade in Cross-Border Services • Chapter on Temporary Entry • Chapter on Financial Services • Chapter on Telecommunications • Chapter on Investment • Chapter on E-Commerce (*Some agreements treat as trade in services, Canada’s bilaterals with Costa Rica & Peru include Cooperation)

23. Structure of CARICOM’s Proposed Text on Trade in Services & Investment • Chapter on Trade in Services • Sector specific provisions on Financial Services, Telecommunications, Tourism, Energy Services * Special Framework for Culture to be developed • Chapter on Investment • Chapter on Facilitation of Business Persons • Movement of persons for services supply and investment in non-services • Mutual recognition (traditional professions & vocations) • Temporary Licensing • Cooperation of Immigration Officials

24. Possible Scope of a Prof. Services MRA • Participants/Parties – usually single negotiating entity for the sector • Definitions e.g. Accredited Engineering Programme, Registered/Licensed Architect, registration, substantially equivalent academic formation, continued professional development, home/host/reciprocating jurisdiction • Registration and Licensure practice • Eligibility for Registration/Licensure in host jurisdiction • Ratification and Implementation • Discipline and enforcement • Immigration and visa issues (usually limited commitment) • Information exchange • Dispute resolution • Term of Agreement Natallie Rochester-King Implications of CF-EC EPA for Architects and Designers

25. Recent/ Ongoing Technical Work • CARICOM Regional Services Strategy (ongoing) • Inventory of policies and regulations • Comparative analysis and review of gaps • Development of Strategy including strengthening of laws and regulations based on analysis above • OTN Statistics on Trade in Services between Canada and CARICOM States (ongoing)

26. Recent/ Ongoing Technical Work • Analysis of EU Regulatory Regimes for Selected Services & Consultations, June 2009 • Analysis of Canada’s Provincial Regulatory Regimes for Services, August 2009 • CARICOM (OTN)/TradeCom Support to MRA Prep. Work for CARIFORUM Engineers and Architects • Comparative analysis of CARIFORUM & EC legal regimes • Assessment of level of congruence • Identification of specific MRA negotiating objectives based on above • Timeframe – October –December 2010 * Application for similar work for Accountants submitted by ICAC under UK CARTFund

27. Key Elements of OTN/TradeCom for MRA Prep. Support for Architects & Engineers • Two Projects to run concurrently with close coordination • Comparative analysis CARIFORUM national regimes & report on areas need intra-CARIFORUM mutual recognition • Identification of institutional needs of CARIFORUM prof bodies • Institutional arrangements, laws and regulations required to initiate and carryout MRA negotiations and to implement an MRA • Identification of specific areas where mutual recognition would be required to enhance trade with European counterparts • Recommended strategy for CARIFORUM for MRAs where required including possible priority EU States • Consultation on findings and Information Dissemination • Support to prof. bodies for info dissemination e.g. website improvement • Mission to Europe for dialogue with counterpart entities

28. Input Required from Professionals for Trade & MRA Prep. Work • Info on Caribbean policies, laws and regulations for qualification, accreditation, licensing, continued education etc. for each sector • Appropriate definitions for Domestic Regulation based on Caribbean reality e.g. Licensing requirements, licensing procedures, qualification requirements, qualification procedures, mandatory standards • Feedback on specific experiences in EU & Canada market or in providing services to EU & Canadian operators Natallie Rochester-King Implications of CF-EC EPA for Architects and Designers

29. ADDITIONAL SLIDES:CARICOM Interests in SECTOR- specific PROVISIONS IN A CARICOM-CANADA AgREEMENT

30. Culture EPA as the base – Member States to identify value-added and specific interests in Canadian market e.g. Agenda for AV-Coproduction Snapshot: Protocol III on Cultural Cooperation in the CF-EC EPA • Affirms UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions • Recognises need for protection & promotion of cultural heritage • Preferential schemes for promotion of local/regional cultural content • Cooperation on IPR protection • Provides for training, cultural exchanges & dialogue • Soft commitment to facilitate entry of artists, other cultural professionals, practitioners

31. Tourism • EPA as the base – Member States to identify value-added and specific interests in Canadian market e.g. Health & Wellness, Standards • Snapshot : • Technology transfer & sustainable development for tourism • Priority for SMEs • Provisions on Competition • Business to business matching and trade fairs • Mutual recognition • Training and other types of cooperation

32. Energy Services Possible scope of provisions in a CARICOM-Canada Agreement: • Mutual objectives on sustainable development and mitigating the impact of climate change to the economies of the Parties; • Commitment to the development of new sources of energy to promote energy security; • Confirmation of the joint interest in the mitigation of adverse environmental effects of energy production; • Commitments on conservation and sustainable use of resources; • Commitments on local content while not excluding foreign service providers; • Priority for energy services firms in the small and medium categories; • Renewable and alternative energy sources; • Non-ownership of the natural resource; • Specific mechanisms to increase trade and investment between the Parties in energy and energy-related services.

33. E-Commerce Possible objectives of provisions on E-Commerce in a CARICOM-Canada TDA: • To create a framework for regulatory cooperation between CARICOM and Canada, using the EPA indicative list of regulatory issues as a baseline for types of matters that may be addressed by the Parties; • To facilitate increased investment in E-Commerce and related ICTs in CARICOM; • To create a framework for cooperation focused on capacity building for CARICOM public and private sector for the increased availability of E-Commerce platforms and related information and communication technologies (ICTs), development of new applications, and regulation of E-Commerce as it evolves; • To create a framework that facilitates increased access to and exploitation of E-Commerce platforms by micro, small and medium-sized enterprises with a view to increased CARICOM exports of goods and services.