Title
Economic Partnership Agreement between the CARIFORUM States, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part
Preamble
ANTIGUA AND BARBUDA, THE COMMONWEALTH OF THE BAHAMAS, BARBADOS, BELIZE, THE COMMONWEALTH OF DOMINICA, THE DOMINICAN REPUBLIC, GRENADA, THE REPUBLIC OF GUYANA, THE REPUBLIC OF HAITI, JAMAICA, SAINT CHRISTOPHER AND NEVIS, SAINT LUCIA, SAINT VINCENT AND THE GRENADINES, THE REPUBLIC OF SURINAME, THE REPUBLIC OF TRINIDAD AND TOBAGO, hereinafter referred to as the ‘CARIFORUM States',
Of the one part, and
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, hereinafter referred to as ‘the United Kingdom' or ‘the UK',
Of the other part,
Hereinafter jointly referred to as ‘the Parties';
HAVING REGARD to the Economic Partnership Agreement between the CARIFORUM States, of the one part, and the European Community and its Member States, of the other part signed on 15 October 2008, hereinafter referred to as ‘the CARIFORUM-EU EPA';
RECOGNISING that the CARIFORUM-EU EPA will cease to apply to the United Kingdom when it ceases to be a Member State of the European Union or at the end of any transitional period or implementation period during which the rights and obligations under the CARIFORUM-EU EPA continue to apply to the United Kingdom;
DESIROUS of ensuring continuity of the effects of the CARIFORUM-EU EPA and maintaining certainty and stability in their trade and investment relationship;
HAVING REGARD to the Revised Treaty of Chaguaramas establishing the Caribbean Community including the CARICOM Single Market and Economy, the Revised Treaty of Basseterre establishing the Organisation of Eastern Caribbean States Economic Union and the Agreement establishing a Free Trade Area between the Caribbean Community and the Dominican Republic;
RECOGNISING that this Agreement builds on the experience of the Partnership Agreement between the Members of the African, Caribbean and Pacific (‘ACP') Group of States of the one part, and the European Community (‘EC') and its Member States of the other part, signed on 23 June 2000 and revised on 25 June 2005 and further revised on 22 June 2010 (‘Cotonou Agreement') and on the experience of the previous ACPEC Partnership Agreements in the area of regional cooperation and integration as well as economic and trade cooperation;
REAFFIRMING their commitment to the respect for human rights, democratic principles and the rule of law, which constitute the essential elements of this Agreement and to good governance, which constitutes the fundamental element of this Agreement;
CONSIDERING the need to promote and expedite the economic, cultural, and social development of the CARIFORUM States, with a view to contributing to peace and security and to promoting a stable and democratic political environment;
CONSIDERING the importance that they attach to the internationally agreed development objectives and to the United Nations Sustainable Development Goals;
CONSIDERING the need to promote economic and social progress for their people in a manner consistent with sustainable development by respecting basic labour rights in line with the commitments they have undertaken within the International Labour Organisation and by protecting the environment in line with the 2002 Johannesburg Declaration;
REAFFIRMING their commitment to work together towards the achievement of the objectives of poverty eradication, sustainable development and the gradual integration of the ACP States into the world economy;
DESIROUS of facilitating the implementation of the CARICOM Development Vision;
CONSIDERING their commitment to the principles and rules which govern international trade, in particular those contained in the Agreement establishing the World Trade Organisation (‘WTO');
CONSIDERING the difference in levels of economic and social development existing between the CARIFORUM States and the United Kingdom;
CONSIDERING the importance of the existing traditional links, and notably the close historical, political and economic ties between them;
CONSIDERING that they wish to strengthen those links and to establish lasting relations based on partnership and mutual rights and obligations, supported by a regular dialogue with a view of improving mutual knowledge and understanding;
DESIROUS of strengthening the framework for economic and trade relations between them through the establishment of an Economic Partnership Agreement which can serve as an instrument for the development of the CARIFORUM States;
DESIROUS of enhancing their economic relationship and, in particular, trade and investment flows, building on and improving the current level of preferential market access into the United Kingdom for the CARIFORUM States;
REAFFIRMING their commitment to support the regional integration process among CARIFORUM States, and in particular to foster regional economic integration as a key instrument to facilitate their integration into the world economy and help them to face the challenges of globalisation and achieve the economic growth and social progress compatible with sustainable development to which they aim;
AWARE that building capacities and addressing supply constraints in CARIFORUM States are required to take full advantage of increased trading opportunities and maximise the benefits of trade reforms and REAFFIRMING the essential role that development assistance, including trade-related assistance, can play in supporting CARIFORUM States to implement and take advantage of this Agreement;
RECALLING that the United Kingdom is committed to development aid, including aid for trade and to ensuring that a substantial share of the UK's development aid is devoted to ACP countries;
DETERMINED to ensure that the UK's development cooperation for regional economic cooperation and integration is carried out so as to maximise the expected benefits of this Agreement;
COMMITTED to cooperate, in accordance with the Paris Declaration on aid effectiveness and the Busan Partnership for Effective Development Cooperation, in order to facilitate the UK's contribution and other donors' participation in support of the efforts of the CARIFORUM States to achieve the objectives of this Agreement;
RECOGNISING that UK development cooperation in support of this Agreement shall continue to be guided by the internationally agreed aid effectiveness agenda and assessment of a government's commitment to the UK Partnership Principles, reducing poverty and achieving the Sustainable Development Goals;
CONVINCED that this Agreement will create a new and more favourable climate for their relations in the areas of trade and investments and create new dynamic opportunities for growth and development,
HAVE AGREED AS FOLLOWS:
Body
Article P I. Trade Partnership for Sustainable Development
Article 1. Objectives
The objectives of this Agreement are:
(a) Contributing to the reduction and eventual eradication of poverty through the establishment of a trade partnership consistent with the objective of sustainable development, and the Sustainable Development Goals;
(b) Promoting regional integration, economic cooperation and good governance thus establishing and implementing an effective, predictable and transparent regulatory framework for trade and investment between the Parties and in the CARIFORUM region;
(c) Promoting the gradual integration of the CARIFORUM States into the world economy, in accordance with their political choices and development priorities;
(d) Improving the CARIFORUM States' capacity in trade policy and trade related issues;
(e) Supporting the conditions for increasing investment and private sector initiative and enhancing supply capacity, competitiveness and economic growth in the CARIFORUM region;
(f) Strengthening the existing relations between the Parties on the basis of solidarity and mutual interest. To this end, taking into account their respective levels of development and consistent with WTO obligations, the Agreement shall enhance commercial and economic relations, support a new trading dynamic between the Parties by means of the progressive, asymmetrical liberalisation of trade between them and reinforce, broaden and deepen cooperation in all areas relevant to trade and investment.
Article 8. Cooperation Priorities
1. Development cooperation as provided for in Article 7 shall be primarily focused on the following areas as further articulated in the individual Chapters of this Agreement:
(i) The provision of technical assistance to build human, legal and institutional capacity in the CARIFORUM States so as to facilitate their ability to comply with the commitments set out in this Agreement;
(ii) The provision of assistance for capacity and institution building for fiscal reform in order to strengthen tax administration and improve the collection of tax revenues with a view to shifting dependence from tariffs and other duties and charges to other forms of indirect taxation;
(iii) The provision of support measures aimed at promoting private sector and enterprise development, in particular small economic operators, and enhancing the international competitiveness of CARIFORUM firms and diversification of the CARIFORUM economies;
(iv) The diversification of CARIFORUM exports of goods and services through new investment and the development of new sectors;
(v) Enhancing the technological and research capabilities of the CARIFORUM States so as to facilitate development of, and compliance with, internationally recognised sanitary and phytosanitary (‘SPS') measures and technical standards and internationally recognised labour and environmental standards;
(vi). The development of CARIFORUM innovation systems, including the development of technological capacity;
(vii) Support for the development of infrastructure in CARIFORUM States necessary for the conduct of trade.
2. The Development cooperation priorities as broadly articulated in paragraph 1 and further specified in the individual Chapters of this Agreement shall be implemented according to the modalities provided for in Article 7.
Article 41. Exchange of Information and Consultation
1. The Parties agree to exchange experiences, information and best practices and to consult on all issues related to the pursuit of the objectives of this Chapter and relevant to trade between the Parties.
2. The Parties agree that dialogue would be particularly useful in the following areas:
(a) Exchange of information on agriculture production, consumption and trade and on the respective market developments for agricultural and fisheries products;
(b) Promotion of investment in CARIFORUM agricultural, food and fisheries sectors, including small-scale activities;
(c) Exchange of information on agriculture, rural development and fisheries policies, laws and regulations;
(d) Discussion of policy and institutional changes needed to underpin the transformation of the agricultural and fisheries sectors as well as the formulation and implementation of regional policies on agriculture, food, rural development and fisheries in pursuit of regional integration;
(e) Exchange of views on new technologies as well as policies and measures related to quality.
Article 43. Cooperation
1. The Parties acknowledge the importance of the agricultural, food and fisheries sectors to the economies of CARIFORUM States and of cooperating to promote the transformation of these sectors, with the aim of increasing their competitiveness, developing their capacity to access high quality markets and in view of their potential contribution to the sustainable development of the CARIFORUM States. They recognise the need to facilitate the adjustment of the agricultural, food and fisheries sectors and the rural economy, to the progressive changes brought about by this Agreement, while paying particular attention to small scale operations.
2. Subject to the provisions of Article 7, the Parties agree to cooperate, including by facilitating support, in the following areas:
(a) Improvement in the competitiveness of potentially viable production, including downstream processing, through innovation, training, promotion of linkages and other support activities, in agricultural and fisheries products, including both traditional and non traditional export sectors;
(b) Development of export marketing capabilities, including market research, both for trade between CARIFORUM States and between the Parties, as well as the identification of options for the improvement of marketing infrastructure and transportation, and the identification of financing and cooperation options for producers and traders;
(c) Compliance with and adoption of quality standards relating to food production and marketing, including standards relating to environmentally and socially sound agricultural practices and organic and nongenetically modified foods;
(d) Promotion of private investment and public-private partnerships in potentially viable production;
(e) Improvement in the ability of CARIFORUM operators to comply with national, regional and international technical, health and quality standards for fish and fish products;
(f) Building or strengthening the scientific and technical human and institutional capability at regional level for sustainable trade in fisheries products, including aquaculture; and
(g) The process of dialogue referred to in Article 41.
Article 43A. Cariforum-uk Special Committee on Agriculture and Fisheries
1. The CARIFORUM–UK Special Committee on Agriculture and Fisheries (the ‘Special Committee on Agriculture and Fisheries') is hereby established to carry out the functions set out in paragraph 3. The Parties agree that the establishment of the Special Committee on Agriculture and Fisheries supersedes the establishment of the CARIFORUM-EU Special Committee on Agriculture and Fisheries by Decision 1/2017 of the CARIFORUM EU Trade and Development Committee. The CARIFORUM–UK Special Committee on Agriculture and Fisheries shall be composed of representatives of the United Kingdom, of the one part, and of representatives of the CARIFORUM Directorate and the Signatory CARIFORUM States, of the other part.
2. The Special Committee on Agriculture and Fisheries shall also be a forum for the Parties to exchange experiences, information and best practices and to consult on all issues related to the objectives set out in this Chapter and relevant to trade between the Parties.
3. The Special Committee on Agriculture and Fisheries shall:
(a) Generally keep under review all aspects of this Chapter;
(b) Generally keep under review all other aspects of the Agreement that relate to agriculture and fisheries, including the following areas of Title I of Part II — Trade in goods:
(i) Chapter 1 — All matters relating to trade in agricultural and fisheries goods, including tariffs;
(ii) Chapter 3 — Article 28 — Agricultural export subsidies;
(iii) Chapter 6 — Technical barriers to trade, as it relates to agricultural and fisheries goods; and
(iv) Chapter 7 — SPS measures, as it relates to agricultural and fisheries goods;
(c) Generally keep under review all aspects of Title IV, Chapter 2 — Innovation and Intellectual Property, as it relates to agriculture and fisheries goods, including Article 145 — Geographical indications and Article 149 — Plant varieties;
(d) Engage in dialogue on matters relating to agriculture and fisheries, including in the following areas:
(i) Agriculture production, consumption and trade and on the respective market developments for agricultural and fisheries products;
(ii) The promotion of investment in and knowledge transfer to CARIFORUM agricultural, food and fisheries sectors, including small-scale activities;
(iii) Agriculture, rural development and fisheries policies, laws and regulations;
(iv) The policy and institutional changes needed to underpin the transformation of the agricultural and fisheries sectors as well as the formulation and implementation of regional policies on agriculture, food, rural development and fisheries in pursuit of regional integration;
(v) New technologies, research and innovation as well as policies and measures related to quality; and (vi) trade policy developments concerning commodities and traditional agricultural products, including bananas, rum, rice and sugar;
(e) Assist the CARIFORUM-UK Trade and Development Committee with regard to the following functions:
(i) To supervise and be responsible for the implementation and proper application of the provisions of the Agreement relating to agriculture and fisheries and to discuss and recommend priorities for cooperation in this regard;
(ii) To oversee the further elaboration of the provisions of the Agreement relating to agriculture and fisheries and evaluate the application thereof;
(iii) To undertake action to avoid disputes and to resolve disputes that may arise regarding the interpretation or application of provisions of the Agreement relating to agriculture and fisheries, in accordance with the provisions of Part III thereof;
(iv) To discuss and undertake actions that may facilitate trade, investment and business opportunities in the agricultural and fisheries sectors between the Parties; and
(v) To discuss any matters pertaining to the agriculture and fisheries provisions of the Agreement and any issue liable to affect the attainment of its objectives; and
(f) Make recommendations to the CARIFORUM-UK Trade and Development Committee with a view to enhancing the implementation and operation of the agriculture and fisheries provisions of the Agreement.
Article P II. Trade and Trade-related Matters
Article Title II. Investment, Trade In Services and E-commerce
Chapter 1. General Provisions
Article 60. Objective, Scope and Coverage
1. The Parties and the Signatory CARIFORUM States, reaffirming their commitments under the WTO Agreement and with a view to facilitating the regional integration and sustainable development of the Signatory CARIFORUM States and their smooth and gradual integration in the world economy, hereby lay down the necessary arrangements for the progressive, reciprocal and asymmetric liberalisation of investment and trade in services and for cooperation on ecommerce.
2. Nothing in this Title shall be construed to require the privatisation of public undertakings or to impose any obligation with respect to government procurement.
3. The provisions of this Title shall not apply to subsidies granted by the Parties or the Signatory CARIFORUM States.
4. Consistent with the provisions of this Title, the Parties and the Signatory CARIFORUM States retain the right to regulate and to introduce new regulations to meet legitimate policy objectives.
5. This Title shall not apply to measures affecting natural persons seeking access to the employment market of the UK or of the Signatory CARIFORUM States, nor shall it apply to measures regarding citizenship, residence or employment on a permanent basis.
Nothing in this Title shall prevent the Parties or the Signatory CARIFORUM States from applying measures to regulate the entry of natural persons into, or their temporary stay in, their territory, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across their borders, provided that such measures are not applied in such a manner as to nullify or impair the benefits accruing to any Party under the terms of a specific commitment.
Article 61. Definitions
1. For the purposes of this Title:
(a) ‘measure' means any measure by the Parties or by the Signatory CARIFORUM States, whether in the form of a law, regulation, rule, procedure, decision, administrative action, or any other form;
(b) ‘measures adopted or maintained by the Parties or by the Signatory CARIFORUM States' means measures taken by:
(i) Central, regional or local governments and authorities; and
(ii). Non-governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities;
(c) ‘natural person of the United Kingdom' or ‘natural person of the Signatory CARIFORUM States' means a national of the United Kingdom or of one of the Signatory CARIFORUM States according to their respective legislation;
(d) ‘juridical person' means any legal entity duly constituted or otherwise organised under applicable law, whether for profit or otherwise, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association;
(e) ‘juridical person of a Party' means a juridical person of the United Kingdom or a Signatory CARIFORUM State set up in accordance with the laws of the United Kingdom or of a Signatory CARIFORUM State respectively, and having its registered office, its central administration, or its principal place of business in the territory of the United Kingdom or in the territory of a Signatory CARIFORUM State, respectively;
Should the juridical person have only its registered office or central administration in the territory of the United Kingdom or in the territory of the Signatory CARIFORUM States respectively, it shall not be considered as a juridical person of the United Kingdom or of a Signatory CARIFORUM State respectively, unless it engages in substantive business operations in the territory of the United Kingdom or of a Signatory CARIFORUM State, respectively;
Notwithstanding the preceding paragraph, shipping companies established outside the United Kingdom or the CARIFORUM States and controlled by nationals of the United Kingdom or of a Signatory CARIFORUM State, respectively, shall also be beneficiaries of the provisions of this Agreement, if their vessels are registered in accordance with their respective legislation, of the United Kingdom or of a Signatory CARIFORUM State and carry the flag of the United Kingdom or of a Signatory CARIFORUM State;
(f) An ‘economic integration agreement' shall mean an agreement substantially liberalising trade in services and investment pursuant to WTO rules.
Article 62. Future Liberalisation
In pursuance of the objectives of this Title, the Parties shall enter into further negotiations on investment and trade in services no later than five years from the date of entry into force of this Agreement with the aim of enhancing the overall commitments undertaken under this Title.
Article 63. Application to the Republic of Haiti
With a view to incorporating in Annex IV the commitments of the Republic of Haiti, which shall be compatible with the relevant requirements under the General Agreement on Trade in Services (hereinafter ‘the GATS'), the Parties and the Signatory CARIFORUM States shall make changes to this Annex by decision of the CARIFORUM-UK Trade and Development Committee. Pending the adoption of such decision, the preferential treatment granted by the United Kingdom under this Title shall not be applicable to the Republic of Haiti.
Article 64. Regional Cariforum Integration
1. The Parties recognise that economic integration among CARIFORUM States, through the progressive removal of remaining barriers and the provision of appropriate regulatory frameworks for trade in services and investment will contribute to the deepening of their regional integration process and the realisation of the objectives of this Agreement.
2. The Parties further recognise that the principles set in Chapter 5 of this Title to support the progressive liberalisation of investment and trade in services between the Parties provide a useful framework for the further liberalisation of investment and trade in services between CARIFORUM States in the context of their regional integration.
Chapter 2. Commercial Presence
Article 65. Definitions
For purposes of this Chapter:
(a) ‘commercial presence' means any type of business or professional establishment through:
(i) The constitution, acquisition or maintenance of a juridical person (1) or
(ii) The creation or maintenance of a branch or representative office within the territory of the United Kingdom or of the Signatory CARIFORUM States for the purpose of performing an economic activity;
(b) ‘investor' means any natural or juridical person that performs an economic activity through setting up a commercial presence;
(c) ‘investor of a Party' means a natural or juridical person of the United Kingdom or a natural or juridical person of a Signatory CARIFORUM State that performs an economic activity through setting up a commercial presence;
(d) ‘economic activity' does not include activities carried out in the exercise of governmental authority, i.e. activities carried out neither on a commercial basis nor in competition with one or more economic operators;
(e) ‘subsidiary' of a juridical person means a juridical person which is effectively controlled by another juridical person (2);
(f) ‘branch' of a juridical person means a place of business not having legal personality which has the appearance of permanency, such as the extension of a parent body, has a management and is materially equipped to negotiate business with third parties so that such third parties, although knowing that there will if necessary be a legal link with the parent body, the head office of which is abroad, do not have to deal directly with such parent body but may transact business at the place of business constituting the extension.
(1) The terms ‘constitution' and ‘acquisition' of a juridical person shall be understood as including capital participation in a juridical person with a view to establishing or maintaining lasting economic links. When the juridical person has the status of a company limited by shares, there is a lasting economic link where the block of shares held enables the shareholder, either pursuant to the provisions of national laws relating to companies limited by shares or otherwise, to participate effectively in the management of the company or in its control. Long-term loans of a participating nature are loans for a period of more than five years which are made for the purpose of establishing or maintaining lasting economic links; the main examples being loans granted by a company to its subsidiaries or to companies in which it has a share and loans linked with a profit-sharing arrangement.
(2) A juridical person is controlled by another juridical person if the latter has the power to name a majority of its directors or otherwise to legally direct its actions.
Article 66. Coverage
This Chapter applies to measures by the Parties or by the Signatory CARIFORUM States affecting commercial presence (3) in all economic activities with the exception of:
(a) Mining, manufacturing and processing of nuclear materials;
(b) Production of or trade in arms, munitions and war material;
(c) Audio-visual services;
(d) National maritime cabotage (4); and
(e) National and international air transport services, whether scheduled or non-scheduled, and services directly related to the exercise of traffic rights, other than:
(i) Aircraft repair and maintenance services during which an aircraft is withdrawn from service;
(ii) The selling and marketing of air transport services;
(iii) Computer reservation system (CRS) services;
(iv) Other ancillary services that facilitate the operation of air carriers, such as ground handling services, rental services of aircraft with crew, and airport management services.
(3) Measures relating to expropriation and investor-to-State dispute settlement such as those covered in bilateral investment treaties are not deemed to affect commercial presence.
(4) National maritime cabotage covers transport services within a Signatory CARIFORUM State or within the United Kingdom for the carriage of passengers or goods originating and terminating in that Signatory CARIFORUM State or in the United Kingdom.