OFFICE OF TRADE NEGOTIATIONS

for trade matters

SPECIAL OTN Update

May03,2012

UPDATE:

CARICOM-Canada Negotiations for a Trade and Deve lopmen t Ag reem en t

I. OverallBrief/UpdateonCARICOMCanada The WTO General Council on 30 November 2011 approved a new waiver for CARIBCAN until December 31 2013. Canadas application for the waiver became necessary in order to preserve CARICOMs preferential access whilst the two Sides complete their negotiations of a new WTO compatible trade agreement.
During the margins of the WTO Ministerial Conference, CARICOM and Canada met in discussions where both Sides took stock of the progress achieved to date in the negotiations and considered the steps that, in light of the Parties ambitions and sensitivities, will become necessary in order to complete the negotiations within the currently available timeframe implicit in the new waiver. It should be noted that since the launch of negotiations for a CARICOM-Canada Trade and Development Agreement in November 2009, three Rounds of Negotiations have

been held. While the first two Rounds allowed both Sides to articulate their broad perspectives and approaches regarding the negotiations, textual negotiations commenced during the Third Round in April 2011. To date, while Canada has tabled textual proposals in all subject areas, CARICOM has tabled text proposals in Fourteen (14) subject areas.

CARICOM-Canada Trade and Development Agreement

OTN UPDATE is the flagship electronic trade newsletter of the Office of Trade Negotiations (OTN), formerly the Caribbean Regional Negotiating Machinery (CRNM). Published in English, it is a rich source of probing research on and detailed analyses of international trade policy issues and developments germane to the Caribbean. Prepared by the Information Unit of the OTN, the newsletter focuses on the OTN, trade negotiation issues within its mandate and related activities. Its intention is to provide impetus for feedback by and awareness amongst a variety of stakeholders, as regards trade policy developments of currency and importance to the Caribbean. http://www.crnm.org

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A. The Treatment of Development CARICOM is also in the process of developing textual proposals in the area of Tourism, Energy, ICT (including telecoms) and E-commerce. CARICOM has been continuing consultations on the substance of emerging draft texts in these areas. In the meanwhile, CARICOM has articulated its priorities and objectives in these areas through the tabling of Concept Notes. At this stage, informal discussions have been held with Canada in the area of Culture, which is another important area in which CARICOM has offensive interests. These discussions have been helping both Sides to gain a better sense of each others objectives and sensitivities associated with the sector and have been helpful to CARICOM in furthering its work in the development of a textual proposal in this area. CARICOM is undertaking consultations on the treatment of Financial Services and is currently developing a text proposal with the aim of tabling a formal proposal order in upcoming negotiating sessions on Trade in Services. The Region is currently working towards the development of offers in both Services and Investment. The OTN has been continuing to support the Member States in the development of their offers and in the undertaking of their national consultations on outstanding matters, including Tourism, Energy, ICT, E-commerce, financial services, and culture, and in that regard, has been providing technical assistance to the Member States when required. D. Trade-Related Issues 1. Competition Policy Both sides have had the opportunity to review each others texts. In future Rounds, discussion on this area will be continued. 2. Transparency in Government Procurement Negotiations in this area are at an advanced stage. CARICOM expects that the next Round of negotiations will address substantively the remaining outstanding issues.

CARICOM and Canada have tabled proposals for Chapters on Development Co-operation and Trade-Related Cooperation, respectively. The inclusion of a strong development dimension in the Agreement is regarded by CARICOM as an essential outcome of the negotiations. CARICOMs proposal features a framework Chapter on Development but is further complemented by subject specific proposals on development co-operation in the draft chapters in each subject area. As the negotiations evolve, discussions on this issue of importance to the Region will be continued.
B. The Treatment of Market Access of Goods

CARICOM has tabled text in the following subject areas under this heading: Rules of Origin Agriculture and Fisheries Sanitary and Phytosanitary Measures (SPS) Technical Barriers to Trade (TBT) Alcoholic Beverages (Rum) Safeguards
CARICOM and Canada have been engaging on these areas and on the proposals that have been submitted by CARICOM. Preliminary exchanges have also been held on the tariff liberalization modalities. In upcoming Rounds of negotiations, the Parties are expected to address technical issues related to tariff liberalisation modalities including the format for the exchange of tariff offers, base rates, reference date and tariff elimination categories.

With regard to Investment, framework text proposals have been exchanged. In the area of Services, CARICOM has tabled Framework texts on Trade in Services and Facilitation of Business Persons.

C. Services and Investment

OTN UPDATE is the flagship electronic trade newsletter of the Office of Trade Negotiations (OTN), formerly the Caribbean Regional Negotiating Machinery (CRNM). Published in English, it is a rich source of probing research on and detailed analyses of international trade policy issues and developments germane to the Caribbean. Prepared by the Information Unit of the OTN, the newsletter focuses on the OTN, trade negotiation issues within its mandate and related activities. Its intention is to provide impetus for feedback by and awareness amongst a variety of stakeholders, as regards trade policy developments of currency and importance to the Caribbean. http://www.crnm.org

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3. Trade and Innovation CARICOM has proposed to address Trade and Innovation in the negotiations. CARICOM has been continuing the development of its initial textual proposal and in that regard, consultations have been ongoing. The OTN has also been providing technical assistance to Member States during their consultation process. It is anticipated that progress in the development of the textual proposal will culminate in the tabling of an initial CARICOM text at a subsequent Round.

E. Labour and Environment

Canadas approach has been to propose addressing Labour and Environment issues through the negotiation of Side Agreements. Currently there is no CARICOM mandate to negotiate Side Agreements on Labour or Environment in these negotiations. Without prejudice to the existing mandate, CARICOM Heads of Government have agreed that CARICOM should propose the establishment of Joint Working Groups on Labour and Environment to allow Officials from both Sides

to clarify issues and to allow for exchanges on their respective interests in relation to these issues. Canada has accepted CARICOMs proposal. Preparations are underway to support CARICOMs participation in the Joint Working Groups. Activities in this regard include the undertaking of a regional consultative process and the preparation of the Concept Notes on Labour and on Environment which are to outline the key interests and priorities of the Region, guided by the recommendations of the CARICOM Working Groups. These Concept Notes will be approved by the relevant CARICOM Working Groups.
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AconsultationonthecurrentnegotiationsforasuccessorreciprocalarrangementfortheCARIOM Canada(CARIBCAN).Courtesy:trulycaribbean.net

OTN UPDATE is the flagship electronic trade newsletter of the Office of Trade Negotiations (OTN), formerly the Caribbean Regional Negotiating Machinery (CRNM). Published in English, it is a rich source of probing research on and detailed analyses of international trade policy issues and developments germane to the Caribbean. Prepared by the Information Unit of the OTN, the newsletter focuses on the OTN, trade negotiation issues within its mandate and related activities. Its intention is to provide impetus for feedback by and awareness amongst a variety of stakeholders, as regards trade policy developments of currency and importance to the Caribbean. http://www.crnm.org