Published: 03 April 2012

Why does the EPA include provisions on services?

Given the economic importance of the services sector to both the Caribbean and the European Union, the volume of trade in services between the two regions, and the inter-dependence of the services sector with manufacturing and agriculture, the EPA necessarily includes rules for the treatment of services suppliers and the provision of services.  Sixty percent of all CARIFORUM services exports to the EU are in tourism and travel-related services. CARIFORUM has negotiated rules and market access concessions on services in the EPA as the Services sector, especially the knowledge-based services sub-sector, presents the best prospect for economic diversification and global repositioning because of its value-added potential. For CARICOM (excluding Trinidad and Tobago), services account for approximately 62% of total exports, and in the case of the OECS countries, averages approximately 80% of total exports. Services exports therefore account for the major share of total exports of individual CARICOM countries, with the exception of Trinidad and Tobago, Guyana, Belize and Haiti.  Services output relative to total GDP for CARICOM countries was over 60% between 1996 and 2004 for the MDCs and over 80% for the LDCs.   The EU has a growing economy and represents a viable market of approximately 457 million persons in 27 countries, with a GDP per capita (purchasing power standard) of US$ 23,500.80 (2004).  The EU has great potential to absorb increased services exports from CARIFORUM as its import penetration rates for goods and services have increased between 2000 and 2005. 

What are the provisions on Services in the Agreement?

In the case of Services, there are specific provisions on the regulatory framework and cooperation for several key sectors, notably: 

- Tourism
- E-commerce; 
- Courier; 
- Telecommunications; 
- Financial services; and 
- Maritime transport;
- Cultural and Entertainment Services 

With respect to professional services, there are also provisions for cooperation and mutual recognition of qualifications as well as technical assistance for the tourism sector. With respect to the movement of services suppliers between Europe and the Caribbean, the EPA includes special provisions for Short Term Visitors for Business Purposes. This allows CARIFORUM nationals to visit the EU for brief periods for business reasons related to research and design, marketing, training, trade fairs and sales. While the EPA does not commit the Parties to the issuing visas, both sides have committed to making movement across borders easier. 

Does the Agreement on Services and Investment include provisions for assistance of CARIFORUM States?

Yes. The EPA has complementary development and trade components. The Agreement on Services and Investment includes provisions on development cooperation from the EU to address a range of needs in the Caribbean such as developing regulatory regimes, building the capacity of regional services firms, market intelligence, interaction with EU firms, among other activities.  In sector specific sections of the agreement there are also tailored cooperation mechanisms such as environmental management and equivalency in sustainable tourism standards in the tourism section, and cultural exchanges and dialogue, in the Protocol on Cultural Cooperation.  Human resource development in the Caribbean is another focus of the Annex on Tourism which provides for assistance and training to service suppliers and support for training institutions. In the services agreement, there are also provisions for cooperation and mutual recognition of qualifications.

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Published: 03 April 2012

Q:What about Vincentian companies providing entertainment services to EU consumers from SVG to EU consumers who are located in SVG? Does the EPA allow this activity?

A: With the following conditions, yes.

Cyprus, Czech Republic, Finland, Malta, Po-land, Romania, Slovakia, and Slovenia: There is no commitment to permit the supply of these ser-vices via this form of supply.

Bulgaria: There is no commitment to permit the supply of these services in SVG except for theatrical producers, singer groups, band and orchestra enter-tainment services; services provided by authors, composers, sculptors, entertainers and other individual artistes; ancillary theatrical services.

Estonia: There is no commitment to permit the supply of these services except for cinema services, and in Lithuania & Latvia, there is no commitment to permit the supply of these services except for cinema theater operation services.

Q: How about entertainment services provid-ers who are independent operators. Are they allowed to enter into contracts in the EU un-der the EPA?

A: Yes, independent entertainment services provid-ers who have a contract with a client in an EU Mem-ber State may travel to these countries to provide services under these conditions:

The person from SVG applying for temporary entry must be supplying a service and must be a self- em-ployed person established in SVG, and must have obtained a service contract for a period not exceed-ing 12 months.

The independent entertainment services provider must possess at least 6 years professional experience in the relevant sector.

The temporary entry will be for a cumulative period not exceeding 6 months (or 25 weeks in Luxem-bourg) during a 12- month period or for the duration of the contract (whichever is less).

The visa permits only the contracted service activity, no other business activities.

The independent professional in the entertainment services field will also be subject to the following conditions in certain countries:

Bulgaria, Cyprus, Czech Republic, Germany, Denmark, Estonia, Greece, Spain, Finland, France, Hungary, Ireland, Italy, Lithuania, Latvia, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Sweden & United Kingdom: Qualification may be required. Economic needs test will be applied.

Austria: Advanced qualification may be required. Eco-nomic needs tests will be applied.

Slovenia: The Vincentian professional’s duration of stay is limited to 7 days per event. For circus and amusement park services, the duration of stay is lim-ited to a maximum of 30 days per calendar year.

Belgium: There is no commitment to permit the sup-ply of these services via this form of supply.

Q: What about an EU firm that wishes to sup-ply entertainment services to Vincentians who are resident in an EU Member State?

A: There are no restrictions on EU entertainment service suppliers providing services to Vincentian in an EU state.

Q: Is an EU entertainment services firm per-mitted to invest in or operate a business in SVG?

A: Yes An EC Entertainment Services firm can operate a business in SVG subject to registering the business and applying for work permit. The entry of contractual service suppliers and independent personnel are sub-ject to economic needs test.

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Published: 03 April 2012

ENTERTAINMENT SERVICES UNDER THE ECONOMIC PARTNERSHIP AGREEMENT (EPA)

The Economic Partnership Agreement (EPA) signed between CARIFORUM (the Caribbean Community and the Dominican Republic) and the European Community (EC) came into effect on January 1, 2008. Among other things, the Agreement covers issues such as market access for trade in goods, services and investment as well as other areas such as intellectual property rights, ecommerce, innova-tion and development cooperation.

These Questions and Answers are designed to an-swer your questions about providing entertainment services to European Community countries using the provisions of the CARIFORUM/EC Economic Partnership Agreement.

Q: What types of entertainment services can Vincentian interests invest in or own in the EU?

A: Under the CARIFORUM/EC Economic Partner-ship Agreement, Vincentian companies may invest in or establish a legal entity in the EU in the entertain-ment services sector. The areas that are allowed for Vincentian investment are theater, live bands and circus and discotheque services. NOT allowed in this category, however, are audio-visual services.

Q: Other than the restriction on the provi-sion of audio-visual services, are there any other restrictions on Vincentian firms in the entertainment services field doing business in the EU?

Cyprus, Czech Republic, Finland, Malta, Po-land, Romania, Slovenia & Slovakia: There is no commitment to permit the supply of these ser-vices.

Latvia: There is no commitment to permit the supply of these services via this form of supply ex-cept for cinema theater operation services.

Estonia: There is no commitment to permit the supply of these services via this form of supply for other entertainment services except for cinema theater services.

Bulgaria: There is no commitment to permit the supply of these services via this form of supply ex-cept for theatrical producer, vocal group, band and orchestra entertainment services, services provided by authors, composers, sculptors, entertainers and other individual artists and ancillary theatrical ser-vices.

Q: What about the staff of entertainment services entities? Provided that the proper permissions are granted in the EU country, what members of staff are allowed to live and work in the country from SVG?

A: Key personnel, those considered to be manag-ers and specialists from the SVG entertainment services firm, may live and work for up to three years, subject to the normal visa and immigration requirements. Those senior staff whose responsibil-ity is limited to setting up the entertainment ser-vices business are allowed to be in the EC for 90 days during any 12- month period, and graduate trainees for up to one year – once again – subscrib-ing to normal visa and immigration requirements. Note, however, that the one exception in the EU is in France where the necessary authorization for the access to management functions is subject to a con-dition of nationality when the authorisation for more than two years is required.

Q: If an entertainment services firm wishes to enter an EU country to fulfill a contract and not necessarily to invest or open an office, what are the allowances under the EPA?

Vincentian entertainment services providers with a contract for services in EC Member States may go to those countries to provide their services; how-ever, there are some restrictions. A Vincentian wishing to provide these services must not be working on a contract that exceeds 12 months, and must have been an employee of the business for at least one year before the application for entry and have at least three years professional experience in their field.

The Vincentian is also not allowed to collect remu-neration other than what is paid by the Vincentian company for the contract during their stay, and may not stay for more than six months cumulative-ly – or for the duration of the contract if that is less. Only the number of people from the Vincentian company necessary to fulfill the contract will be al-lowed and they may not conduct any other business while in the Member State.

In addition to those general conditions throughout the EU, there are some country- specific conditions:

Bulgaria, Cyprus, Czech Republic, Germany, Denmark, Estonia, Greece, Spain, Finland, France, Hungary, Ireland, Italy, Lithuania, Lat-via, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Sweden & United Kingdom: Qualification may be required. Economic needs test will be applied.

Austria: Advanced qualification may be required. Eco-nomic needs tests will be applied.

Slovenia: The duration of stay for Vincentian supply-ing their services is limited to 7 days per event. For circus and amusement park services, the duration of stay is limited to a maximum of 30 days per calendar year.

Belgium: There is no commitment to permit the sup-ply of these services via this form of supply.

Q: Our entertainment services firm is able to provide services to a client in the EU without actually travelling there to live or work. Are there provisions in the EPA for that type of ac-tivity?

A: Yes, there are. However, under the EPA, the fol-lowing countries have made no commitment to permit the supply of entertainment services through this form:

Bulgaria, Cyprus, Czech Republic, Germany, Denmark, Estonia, Greece, Spain, Finland, France, Hungary, Ireland, Italy, Lithuania, Lat-via, Malta, Netherlands, Poland, Portugal, Ro-mania, Slovakia, Sweden & United Kingdom: Qualification may be required. Economic needs test will be applied.

Austria: Advanced qualification may be required. Eco-nomic needs tests will be applied.

Slovenia: The duration of stay for Vincentians supply-ing their services is limited to 7 days per event. For circus and amusement park services, the duration of stay is limited to a maximum of 30 days per calendar year.

Belgium: There is no commitment to permit the sup-ply of these services via this form of supply.

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