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The services component of the EPA. S. H. Allyson Francis sonja.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

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the services component of the epa
The services component of the EPA

S. H. Allyson Francis

sonja.francis@gov.gd

sonjafrancis@hotmail.com

outline
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
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 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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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

'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
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
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

ec commitments
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
Cross-border provision

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

commercial presence commitments
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
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
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
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
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 cont32
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
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
Areas of access for CARIFORUM CSS in the EU
  • Legal advisory services in respect of international public law and foreign law
  • Accounting and bookkeeping services
  • Taxation advisory services
  • Architectural services
  • Urban planning and landscape architecture services
  • Engineering services
  • Integrated Engineering services
  • Medical and dental services
  • Veterinary services
  • Midwives services
areas of access for cariforum css in the eu cont d
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

  • Advertising services
  • Market Research and Opinion Polling
  • Management consulting services
  • Services related to management consulting
  • Technical testing and analysis services
  • Related scientific and technical consulting services
  • Maintenance and repair of equipment
areas of access for cariforum css in the eu cont d36
Areas of access for CARIFORUM CSS in the EU (cont’d)

21. Chef de cuisine services

22. Fashion model services

23. Translation and interpretation services

24. Site investigation work

25. Higher education services (only privately-funded services)

26. Environmental services

27. Travel agencies and tour operators' services

28. Tourist guides services

29. Entertainment services other than audiovisual services

independent professionals ip
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
Areas of access for CARIFORUM IP in the EU
  • Legal advisory services in respect of international public law and foreign law (i.e. non-EU law)
  • Architectural services
  • Urban planning and landscape architecture services
  • Engineering services
  • Integrated Engineering services
  • Computer and related services
  • Research and development services
  • Market Research and Opinion Polling
  • Management consulting services
  • Services related to management consulting
  • Translation and interpretation services
tourism services
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
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
EU Commitments in Tourism (Cross-border/Modes 1 & 2)

Hotels, Restaurant & Catering Services

  • All except for 3 Member States have unbound, except for catering services

Travel Agencies & Tour Operators

  • 2 Member States with Unbound (BG & HU)

Tourist Guides Services

  • 10 Member States with Unbound

No limitations under modes 2

eu commitments in tourism establishment mode 3
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
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
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 446
EU Commitments in Tourism (CSS/Mode 4)

Travel Agencies and Tour Operators Services

  • 14 Member States - None
  • 12 Member States - ENT
  • 1 Member State – Unbound

Tourist Guides Services

  • 21 Member States – ENT
  • 5 Member States - Unbound
  • 1 Member State – None (SE)
slide47
CULTURE

&

ENTERTAINMENT

classification of other entertainment services uncpc
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
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
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 cont51
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 cont52
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 cont53
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
“European Works”

Directive 89/552/EEC

Works 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
Offer by the EC in Entertainment Services

For Mode 1

  • 25 Member States have scheduled Unbound

For 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
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 d57
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
eu commitments in computer related services
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.

telecommunications services
Telecommunications Services

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

regulatory authority
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

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
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
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
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
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
Telecommunications

Parties must ensure confidentiality of data

National regulatory authorities shall resolve disputes in a reasonable time

e commerce
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

slide70
FINANCIAL

SERVICES

financial services
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 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 cont73
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
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
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
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
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
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
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
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
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 banking
EC Commitment Banking

Mode 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 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
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
slide85
PROFESSIONAL

SERVICES

mutual recognition mr
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
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
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.

eu architectural commitments
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
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
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 limitations

Construction Services

  • Modes 1 & 2 - None
commercial presence limitations engineering construction services
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
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 years

MT: Nationality condition

key personnel graduate trainees architectural services
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
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
eu accounting commitments
EU Accounting Commitments

Mode 1

Accounting & 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
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
Accounting Commitments (cont.)

Commercial presence

Accounting & 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 cont101
Accounting Commitments (cont.)

Auditing Services

10 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 4102
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
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 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
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 persons107
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.

cariforum commitments in tourism
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
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
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
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
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.

cf commitments
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)

slide116
PROFESSIONAL

SERVICES

cariforum commitments in architectural services
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
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
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
cariforum commitments in 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
slide123
FINANCIAL

SERVICES

summary of cariforum commitments
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 persons125
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
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
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
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
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
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 cont131
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 cont132
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
slide133
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
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
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 cont136
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
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