Do the EU services commitments also extend to the cultural sector?
Yes. The traditional relationship between the Caribbean and Europe under the Cotonou Agreement was limited to cooperation for cultural develop; however the EPA has successfully secured market access commitments for CARIFORUM in some key areas. In the case of Entertainment services, a sector in which the Caribbean is quite competitive, 27 European states will liberalize Entertainment services (CPC 9619) with some limitations in two states. This level of market access for entertainment is a first for any trade agreement of the EU. In the WTO only two EU states have commitments for the temporary movement of contractual service suppliers in entertainment services; and in the EU-Chile Trade Agreement only four states. In the EPA, the activities that are being liberalized by the EU include the whole range of artists and cultural practitioners in music, dance, theatre, visual arts, as well as sculptors, authors, poets, among others; these are listed by CPC number in the box below. CARIFORUM countries have also made market access commitments, particularly in the audiovisual sector, where they hope to send a clear market signal in order to attract European investment. The EC offer maintain some controls and conditions but there are no quotas or limits on the number of natural persons who can enter under this commitment. Caribbean artists, musicians, and other cultural practitioners and their crews who are registered under businesses will be able to send their members or employees to almost all EU states to supply entertainment services.
Is there any additional concession provided to develop cultural industries in the EPA?
Indeed there is! The Protocol on Cultural Cooperation is an innovative and historic convention which provides for greater cooperation in the development of cultural industries. It is designed to complement the market access commitments under Recreational, Cultural and Sporting services. While the Protocol applies across all cultural fronts, there are particularly significant audiovisual provisions. Co-produced audiovisual products and services involving European and Caribbean creative teams will qualify as European works and meet the cultural content rules in all EU states. When co-production treaties are completed between individual EU states and Caribbean states or regions, the Protocol will also make it possible for audiovisual producers from one CARIFORUM country to access funding for creative projects in another country with a co-production treaty. Furthermore, through the Protocol, artists and other cultural practitioners will be able to enter European states to collaborate on projects and upgrade their training for a period up to 90 days in any 12 month period.
The EPA, through this unprecedented Protocol, could be an effective tool in the development of CARIFORUM cultural industries and the region’s international competitiveness. For cultural practitioners, the EPA presents opportunities to develop contact networks which could later evolve into viable commercial opportunities.
Will the economic needs tests and other conditions prevent CARIFORUM access to the EU services market?
The economic needs tests (ENTs) and all other conditions which may be applicable are not designed to unjustifiably prevent or impede CARIFORUM access. Rather these conditions and controls are designed to prevent displacement of domestic firms and services suppliers, as well as “oversupply” of a particular service. The EU and CARIFORUM both opted to apply such conditions as deemed necessary to ensure that liberalization does not lead to such displacement in sensitive sectors, and sectors where demand for foreign services suppliers will likely fluctuate. In domestic policy, ENTs may apply to local and foreign services providers, or only to foreign suppliers.
What happens if these provisions are not honored?
The market access commitments on services in the EPA Title on Investment, Trade in Services and E-Commerce are covered by dispute settlement provisions. Therefore, Caribbean traders or investors or business persons will be able to challenge any restrictions to entering into a European jurisdiction which are inconsistent with the agreement or reneging on European commitments which they may confront.
Is CARIFORUM obligated to match the commitments of the EC?
The EPA and a Regional Free Trade Agreement (RFTA) is not based on unilateral preferences and therefore under WTO rules on RFTAs between developed and developing countries, reciprocity is required. Furthermore, the rules require that liberalization commitments cover substantially all services sectors between the Parties to the Agreement, and that they do not explicitly exclude any mode of supply. However, the level of reciprocity in the exchange of concessions does not have to be the same, or symmetrical, for developed and developing countries in order to meet the requirements of multilateral rules. Therefore, as a developing region, CARIFORUM has not matched the commitments of the EC in all services sectors.
Are there any advantages to liberalizing CARIFORUM services?
CARIFORUM States’ strategy in binding the opening of their services market is intended to attract increased investment in the region in order to boost the performance of established sectors and promote growth of new service industries. As well, market entry can result in greater efficiencies in a range of services that are inputs to manufacturing and other services. It is expected that there will be increased trade in the short term in a wide range of business services, such as professional services, computer services, and scientific and technical testing and consulting services, if regional firms position themselves to take advantage of outsourcing opportunities from European firms. Significant gains are also expected in tourism, maritime transportation and cultural and entertainment services.
The main sectors that most CF states have liberalized in the EPA
- Accounting, auditing and bookkeeping Services
- Convention services
- Architecture
- Courier services
- Engineering
- Environmental services
- Computer and related Services
- Hospital services
- Research and development
- Tourism and travel-related services
- Management consulting
- Entertainment services
- Services incidental to manufacturing
- Maritime transport
- Related scientific and technical consultant services
- Telecommunications
