Title
TRADE AND ECONOMIC CO-OPERATION AGREEMENT BETWEEN THE CARIBBEAN COMMUNITY (CARICOM) AND THE GOVERNMENT OF THE
Preamble
REPUBLIC OF CUBA
The Caribbean Community (CARICOM) and the Government of the Republic of Cuba (hereinafter referred to collectively as the Parties),
INSPIRED by the purposes of the Association of Caribbean States to promote an expanded economic space for regional trade and investment and to gradually and progressively foster economic integration, including the liberalization of trade, investment, transportation and other related areas:
AWARE of the need to accelerate the process of Caribbean integration and of the importance attached by the Parties to the various ongoing sub-regional integration processes aimed at increasing and facilitating international competitiveness of the region and facilitating its development:
RECOGNIZING the importance of improving the living standards of the Caribbean peoples and encouraging the progressive development of the economies of the Parties, taking into account the particular urgency of these aims for the less developed countries:
BEARING IN MIND the different levels of economic development between CARICOM Member States and Cuba:
CONSIDERING the desirability of promoting a free trade area, moving appropriately towards greater participation of the economies of the Parties in the world economy, developing more dynamic and balanced economic and trade relations based on mutual benefits and a gradual reduction in customs tariffs and trade obstacles:
COMMITTED TO the launch in the year 2001 of negotiations for the establishment of a Free Trade Area between the Parties:
TAKING INTO ACCOUNT the benefits of formulating clear and accurate guidelines that allow for an increased involvement of the business entities of the Parties in the economic development of CARICOM Member States and Cuba:
HAVING REGARD to the rights and obligations of CARICOM Member States under the Treaty establishing the Caribbean Community (CARICOM) and the rights and obligations of Cuba under the Treaty of Montevideo of 1980:
BEARING in mind that Article 25 of the Treaty of Montevideo of 1980 to which the Republic of Cuba is a signatory, authorizes the signing of Partial Scope Agreements with other countries and economic integration groupings in Latin America, as a means of promoting the integration of the Latin American and Caribbean region:
CONSIDERING the rights and obligations of Member States of CARICOM and of Cuba as Members of the World Trade Organization (WTO):
COMMITTED to establishing closer trade and investment relations,
AGREE AS FOLLOWS:
Body
Article 1. Interpretation
1. For the purpose of this Agreement -
(i) references to the Agreement shall include references to the Annexes to the Agreement; and
(ii) references to the territories of the Parties mean, in relation to each Member State of CARICOM and Cuba, respectively, its territory, as well as its air space and maritime areas, including the seabed and subsoil adjacent to the outer limit of the territorial sea, over which that State exercises, in accordance with national law and international law, jurisdiction and sovereign rights for the purpose of exploration and exploitation of the natural resources of such areas.
2. For the purpose of this Agreement, the More Developed Countries of CARICOM
(hereinafter referred to as the MDCs) are:
(i) Barbados
(ii) Guyana
(iii) Jamaica
(iv) Suriname
(v) Trinidad and Tobago
3. For the purpose of this Agreement, the Less Developed Countries of CARICOM (hereinafter
Referred to as the LDCs) are:
(i) Antigua and Barbuda
(ii) Belize
(iii) Dominica
(iv) Grenada
(v) Montserrat
(vi) St. Kitts and Nevis
(vii) Saint Lucia
(viii) St. Vincent and the Grenadines
Article 2. Objective
The objective of this Agreement is the strengthening of the commercial and economic relations between the Parties through:
(i) the promotion and expansion of trade in goods and services originating in the territories of the Parties by means of, inter alia, free access to the markets of the Parties, elimination of non-tariff barriers to trade, the establishment of a system of rules of origin, and harmonisation of technical, sanitary and phyto-sanitary measures;
(ii) the establishment of financial arrangements to facilitate the progressive development of two-way trade between the Parties;
(iii) the progressive liberalization of trade in services;
(iv) the encouragement of one Party in the market of the other Party so as to enhance the competitiveness of the Parties in the world market;
(v) the provision of facilities for the establishment and operation of joint ventures and other forms of economic co-operation activities;
(vi) the development of mechanisms that promote and protect the investments made by nationals of the Parties;
(vii) the promotion and development of co-operative activities;
(viii) the promotion of an ongoing system of consultation and coordination for the exchange of information and views on economic and social matters of mutual interest and, where feasible, for the adoption of common positions at international forums and vis-a-vis third countries and groups of countries.
(ix) the discouragement of anti-competitive business practices between the Parties;
(x) the continuity and progress of work initiated within the CARICOM-Cuba Joint Commission (the Joint Commission) established by both Parties for the development of mutual relations.
Article 3. Joint Commission
1. The Parties hereby agree that the Joint Commission shall exercise the following functions
Under this Agreement -
(i) supervise the implementation and administration of the Agreement and compliance with its provisions;
(ii) resolve any dispute arising from the interpretation and execution of this Agreement;
(iii) establish Committees and Export Groups, delegate responsibilities to them and supervise their work;
(iv) keep this Agreement under periodic review, evaluate its performance and recommend measures for compliance with its provisions;
(v) recommend any amendment or modification to this Agreement;
(vi) carry out such other functions in relation to this Agreement as may be mandated by the Parties;
2. All decisions shall be taken by consensus. The decision of the Joint Commission in relation
To this Agreement shall have the status of recommendations to the Parties.
Article 4. Joint Commission Meetings
1. In connection with its functions under this Agreement, the Joint Commission shall meet at least once a year on a date determined by the Parties.
2. Such meetings shall be chaired jointly by representatives of the Parties.
3. The meetings shall be held alternately in a CARICOM Member State and Cuba, or at any other location agreed by the Parties.
4. The agenda for each meeting shall be agreed between the Parties at least one month prior to each proposed meeting.
5. In the exercise of its functions under this Agreement, the Joint Commission may establish its own rules and procedures.
Article 5. Market Access
1. The Parties agree to implement a programme of trade liberalisation between them, at the same time, taking particular account of, the differences in the levels of development between Cuba and the LDCs of CARICOM.
2. Each Party agrees to grant good produced in the territory of the other Party access to its market under the following arrangements:
(i) the goods set down in Annex I to this Agreement which originates in the Member States of CARICOM and which satisfy the conditions in the Rules of Origin that appear in Annex VI to this Agreement shall receive duty free access on entry into Cuba;
(ii) the goods set down in Annex II to this Agreement which originate in Cuba and which satisfy the conditions in the Rules of Origin that appear in Annex VI to this Agreement shall receive duty free access on entry into the MDCs of CARICOM.
(iii) the goods set down in Annex III to this Agreement which originate in the Member States of CARICOM, and which satisfy the Rules of Origin that appear in Annex VI to this Agreement shall receive, on entry into Cuba, Phased Reduction of the MFN rate of duty to zero (0) per cent in four (4) annual equal stages over a period commencing one year after the entry into force of this Agreement;
(iv) the goods set down in Annex IV to this Agreement which originate in Cuba, and which satisfy the Rules of Origin that appear in Annex VI to this Agreement shall receive, on entry into the MDCs of CARICOM, Phased Reduction of the Most Favoured Nation (MFN) rate of duty to zero (0) per cent in four (4) annual equal stages over a period commencing one year after the entry into force of this Agreement.
3. The LDCs of CARICOM shall not be required to extend the treatment provided for in paragraphs 2(ii) and (iv) to goods which originate in Cuba.
4. The Parties agree that they will not apply any quantitative restrictions with respect to trade under this Agreement, but take into account the rights of the parties under the WTO Agreement and the obligations of CARICOM Member States under the Treaty establishing the Caribbean Community.
5. The Joint Commission may consider any request by the Parties for the modification of the Lists in Annexes I to IV.
Article 6. Treatment of Goods Produced In Free Trade Zones/export Processing Zones
1. Goods produced in or shipped from Free Trade Zones/Export Processing Zones in the territory of a Party shall, when imported into the territory of the other Party, be subj ect to the MFN rate of duty.
2. Where either CARICOM or Cuba decides to alter the treatment accorded to goods produced in or shipped from Free Trade Zones/Export Processing Zones, the Joint Commission will be advised of the action at the earliest opportunity and will consider the measures necessary to maintain the parity provided for in paragraph 1 of this Article.
Article 7. Rules of Origin
The Rules of Origin to be applied under this Agreement shall be those set out in Annex VI.
Article 8. Technical Standards
The Joint Commission shall review the governing technical regulations of the Parties and consider measures that, in its opinion, are required to ensure that such regulations do not constitute barriers to trade between the Parties. The Joint Commission shall establish rules and procedures to resolve any issues that may arise in the application of technical regulations.
Article 9. General Exemptions
Nothing in this Agreement shall prevent the adoption or enforcement by Cuba or any Member State of CARICOM of measures which are required -
(i) to protect public decency;
(ii) to protect human, plant and animal health, and to preserve the environment;
(iii) to protect public order;
(iv) to control the production, distribution and use of narcotics and psychotropic substances;
(v) to secure compliance with the laws and regulations pertaining to customs or
Marketing;
(vi) to secure compliance with the laws and regulations that govern foreign investments;
(vii) to protect intellectual property rights or prevent dishonest practices;
(viii) in connection with the production of and trade in gold and silver;
(ix) in connection with goods produced by prison labour;
(x) to protect national treasures of artistic, historical or archeological value;
(xi) to prevent or alleviate any critical food shortage; or
(xii) in connection with the preservation of non-renewable natural resources.
Article 10. Economic Cooperation
1. Each Party agrees to promote mutual economic and social co-operation in support of the economic integration of the Parties and the economic and social development of each Party.
2. Without prejudice to the generality of paragraph 1, the Parties agree to develop co-operation in the following areas:
(i) Development of Human Resources
(ii) Science and Technology
(iii) Meteorology and Natural Disaster Preparedness
(iv) Culture
Article 11. Double Taxation Agreements
The Parties agree to work towards the adoption of double taxation agreements between CARICOM Member States and Cuba.
Article 12. Trade Promotion
1. The Parties agree to establish trade promotion programmes, facilitate official and business missions, organize trade fairs and exhibits, exchange information, conduct market research projects, and carry out any other activities related to the implementation of the liberalization programmes and, in particular, the opportunities arising from the trade measures agreed upon herein.
2. Each Party agrees to promote the involvement of its business sector in the pursuance of the objective of this Agreement. For this purpose, the Parties shall explore the possible establishment of a CARICOM-Cuba Business Council that reviews business opportunities, furnishes information and promotes trade.
Article 13. Business Facilitation
1. The Parties agree to take all necessary steps, in accordance with their respective laws, to facilitate investment and the expansion of trade in goods and services between them. To this end, the Joint Commission will, as one of its first tasks under this Agreement, adopt a special programme of measures for the facilitation of business, including measures designed to achieve and maintain transparency and to encourage information exchange and also to harmonize customs procedures and technical standards.
2. The Parties agree, if and when necessary, to use their best endeavours to ensure that enterprises in their respective territories meet their obligations in respect of goods and services traded under this Agreement.
Article 14. Trade Financing
1. The Parties recognize the essential role of trade financing in the development of trade. Accordingly, they agree to take all necessary steps to encourage banks and other financial institutions engaged in foreign trade in their respective territories to increase their support to exporters/importers in the territories of the Parties for the purpose of expanding trade between the Parties.
2. The support contemplated under paragraph 1 includes -
(i) the establishment of lines of credit;
(ii) the confirmation of letters of credit;
(iii) the provision of guarantees;
(iv) the discounting of bills of exchange, commercial paper and similar instruments;
(v) the provision of pre-shipment and post-shipment finance;
(vi) export credit insurance.
3. In order to promote the greater involvement of institutions in the territories of the Parties in
The financing of trade between the Parties, the Joint Commission will establish an Experts Group of financial specialists to promote training and information exchange, to review the scope for improving the availability, conditions and competitiveness of credit terms offered and to promote the development of collaboration, including the establishment of joint ventures for the financing of trade between the Parties.
Article 15. Trade In Services
1. The Parties recognize the importance of trade in services for the development of their respective economies, and agree:
(i) To commence without delay, the exchange of information on their services sector, exchange of views on possible elements for a service regime;
(ii) Upon completion of the implementation of the CARICOM Services regime through the full application of the provisions of Protocol II amending the Treaty of Chaguaramas, or of the chapter of the Treaty containing these provisions, to commence as soon as possible negotiations for the establishment of a regime for trade in services between the Parties. In the establishment of the services regime, the Parties shall take into consideration their respective commitments in the General Agreement on Trade in Services (GATS) and the ongoing negotiations for services in the GATS:
(iii) To consider, in principle, inter alia, the following sectors or sub-sectors:
(a) Tourism and Travel-related services
(b) Entertainment Services
(c) Financial Services
(d) Professional Services
(e) Construction and related engineering services
(f) Computer and related services
(g) Telecommunication services
(h) Transport services
2. The Parties also agree to identify any elements essential to the development of trade in services which may be implemented prior to the conclusion on the Services Regime.
3. Pending conclusion of the negotiations referred to in paragraph 1 (ii) of this Article, and in accordance with the principles and rules of the General Agreement on Trade in Services (GATS), each Party shall accord immediately and unconditionally to services and service suppliers of the other Party, treatment no less favourable than that it accords to like services and service suppliers of any other country.
Article 16. Tourism
1. In furtherance of Article 15 (iii) (a), the Parties agree:
(i) To take co-ordinated action to meet the commitments of the Parties under the Declaration for the Establishment of the Sustainable Tourism Zone in the Caribbean;
(ii) To prepare and promote, jointly, tourism products and programmes designed to encourage multi-destination travel, to increase the number of visitors to the territories of the Parties and to diversify and develop the tourism product;
(iii) To provide to each other, technical assistance in the area of human resource development, foreign language training, hospitality training, tourism planning and development and hotel management training;
(iv) To examine the feasibility of establishing a Regional Centre for the training and development of management and supervisory personnel for the tourism sector;
(v) To co-operate in the area of passenger transport and to keep under review the adequacy of airline and cruise ship services in the Caribbean;
(vi) To consider joint venture arrangements in the area of cruise shipping;
(vii) To undertake cultural exchanges and the exchange of entertainers on a commercial basis;