Caribbean Export Development Agency. Asociación Dominicana De Productos de Ron Caribbean Spa & Wellness Association -DR

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1 MINUTES OF CARICOM DR BUSINESS FORUM 13 th June, 2008 Sandals Grande, St Lucia PRESENT: CO-CHAIRS: Mr. Jose Manuel Armenteros: Mr. Nigel John Mr Philip Williams- Caribbean Export Development Agency Mr Alan Ramirez - Caribbean Export Development Agency Ms Veona Maloney Caribbean Export Development Agency Mr Fernado Gonzalez DR-Commonwealth Round Table Mr Roberto Despradel- Dominican Republic Mr. Ricardo Koenig- Dominican Exporters Association Mr Luis Castanos Asociación Dominicana De Productos de Ron Mr Tomas Hungria Caribbean Spa & Wellness Association -DR Mr Francisco Jose Castillo Consejo Nacional de la Empresa Privada Mr. Chester Cooper Bahamas Chamber of Commerce and Industry Mr. Chris Husbands St Lucia Chamber of Industry and Commerce Mr. Carlos Wharton Barbados Manufacturers Association Ms Michelle Hustler-Small Barbados Coalition of Services Industries Mr. Lisle Chase St Lucia Chamber of Industry and Commerce Ms Colette Erivan Guadeloupe Chamber of Industry and Commerce Ms Yvonne Gellineau-Simon Grenada Chamber of Industry and Commerce Ms Wendy Phipps St Kitts-Nevis Chamber of Industry and Commerce Mr. Mark Wilkin St Kitts-Nevis Chamber of Industry and Commerce Mr. Carol Evelyn St Kitts-Nevis Chamber of Industry and Commerce Mr. Greg Laughlin Trinidad & Tobago Manufacturers Association Mr. James Moss Solomon Dr Ronald Ramkissoon Republic Bank Ltd Dr Thackway Driver South Chamber of Trinidad and Tobago Mr. Nigel Hosein CARILEC Mr. Ganado Kromosoeto Suriname Chamber of Industry and Commerce Mr. Frank Myers ICATT Ms Carol Ayoung Ms Barbara Atwell Ms Melinda De Freitas Ms Cheryl Best George Ms Laura Montressor Ms Candice Lawrence 1. Welcome Both co-chairs agreed that the meeting must seek to ensure that there are convenient ways to formalize the CARICOM-DR Free Trade Agreement. Mr. Philip Williams, Executive Director of the Caribbean Export Development Agency indicated that while the CARICOM-DR Business Forum address Policy issues/elements that it must also seek to address match making as one of its strategic outcomes. Mr. James Moss-Solomon, Immediate Past President of, highlighted the need for an operational Strategic Plan for the Business Forum as it pertains to access to the EU markets. Mr. Moss-Solomon also drew the meeting s attention to the domestic affairs in EU as it pertained to Ireland.

2 2. Review of the minutes (Resolutions) and matters arising from the Second meeting of the CARICOM-DR Business Forum held on 18 th April, 2007 in the Dominican Republic-Mr. Frank Castillo The 2nd Meeting of the CARICOM-DR Business Forum was held in the Santo Domingo Chamber of Commerce Conference Room, Co-chaired by James Moss - Solomon representing CARICOM and Jose Ml. Armenteros representing the Dominican Republic. Co-presidents and members of the CARICOM-DR Business Forum met for their first bi-annual meeting of The meeting had 2 Main Objectives: 1. Submit solutions to the problems that have arisen in the implementation of the Free Trade Agreement CARICOM-DR 2. Define specific actions to be taken by the Business Forum to strengthen intraregional and external markets business relationships. The meeting, sponsored by Caribbean Export, resolved: 1. Request the CARIFORUM ministers for the immediate reactivation of the Joint Committee and the sub-committees, with the purpose of resolving pending issues of the negotiations which have hindered the possibility of taking advantage of the products and services business opportunities that have arisen through the Agreement. 2. To ensure a better flow of business people in the region, the Business Forum recommends: a. The Chambers of Commerce of the region can issue valid certification for visa purposes, which are recognized by competent authorities in charge and will offer the opportunity of acquiring multiple entries, 5 year visas to all the countries forming the CARIFORUM. 3. Recommended the re-enactment of the experience lived by the West Indies Producers Rum and Spirits Association, with the goal of promoting a constructive and effective dialogue among the private sectors of the region, exploring business alliances opportunities to capture third markets and to act as facilitators of contact between companies and associations of specific sectors to resolve the problems related with the implementation of the Agreement 4. Recommend the closing of the Services negotiations as a priority subject of discussion in the next Joint Committee meeting, particularly, the professional sub-services and the creative industry are pointed out as relevant areas for mutual recognition agreements 5. The CARICOM-DR Business Forum supports the creation of the CARIFORUM- EU Business Forum with the goal of promoting a greater flow in commerce and investment activity in frame of the EPA and therefore decided to use the CARICOM-DR Business Forum as platform of the new Forum 6. Recommend ministers to ponder over the creation of commercial representation offices of the CARIFORUM in selected European capitals as a way of maximizing business opportunities in the goods and services in those markets and attracting new investments that contribute to the diversifying and development of products and services with greater added value. 7. Decides to examine future intra CARIFORUM commercial statistics, including Services and excluding petroleum and gas with the goal of obtaining a more realistic perspective of the flow and evolution of the business opportunities in the CARIFORUM 3. Status of the CARICOM DR Free Trade Agreement Mr. Alan Ramirez The meeting was informed of the following unresolved issues:-

3 UNRESOLVED ISSUES IN THE CARICOM-DR FTA Following are key issues which remain unresolved in pursuing full implementation of the CARICOM-DR FTA. 1. Based on the timetable established in the agreement, the DR is seeking access to the OECS. 2. The DR is seeking duty free treatment for paints, solvents and thinners. CARICOM has seven paint producing countries, several of which are Lesser Developed Countries (LDCs) and are opposed to such a move. 3. The DR is seeking preferential treatment for soaps and detergents. CARICOM is opposing this proposal as LDCs such as Dominica have designated soaps and detergents as a sensitive sector. 4. CARICOM is seeking duty free treatment from DR for fresh water red tilapia fish. The DR is deferring this decision to a joint meeting of officials of the Agriculture Ministries. 5. CARICOM has requested from the DR protected treatment (i.e. adding these products to the list of protected items) for mixtures of juices containing citrus, banana and plantain chips, biscuits. The request is not being accepted by the DR and, as a result, these products remain under the trade liberalization commitments of the agreement. 6. CARICOM is seeking duty free treatment of beverages and glass bottles which the DR opposes. 7. With respect to finalization of the Schedule of Products subject to phased reduction of duty set out in Appendix I of the Protocol implementing the agreement, the DR took the position that products subject to phased reduction of duty should now be traded free of duty following the expiration of the phasing period for all products, now including rum, as the 5 years of exemption has expired. CARICOM disagrees and wishes for a longer phase-out time period. It has submitted a list of products which would benefit from this longer protection period. 8. CARICOM is willing to begin negotiations with the DR on trade in services and could do so on the basis of a positive list approach (i.e. where the parties specify only those sectors which would be open to trade, and hence sectors not listed would not be open to trade). 9. The EPA agreement is likely to affect the Caricom-DR Business Forum, since Caricom and the DR have conceded favorable treatment for goods and services to the EU that in principle shall be extended to both parties of the Caricom-DR FTA. 4. Implications of the EPA vis a vis the CARICOM-DR Business FTA- Mr. Roberto Despradel The meeting was informed that 1) due to unforeseen circumstances Mr. Ramesh Chaitoo of the CRNM will not be present 2) Ms Rhonda Wilson of the CARICOM Secretariat had submitted the attached brief re: the CARICOM_DR FTA viz-a viz the EPA. The meeting noted that:- a) Under the CARICOM-DR FTA, the status of the LDCs was reviewed by the Third Joint Council Meeting (August 2005) and it was agreed that the status of the LDCs would remain unchanged.

4 However with the recently initialed EPA agreement the LDCs are obliged to make reciprocal trade liberalization commitments and therefore the same treatment must be granted to the Dominican Republic in accordance with Article 238 (2) b) Due to the absence of any agreement between CARICOM and the DR on trade in services, the CARIFORUM s commitment to the EC on services liberalization constitute more favorable treatment to EC and this sets the floor for liberalization commitments on trade in services for the CRICOM-DR FTA. c) Need for the parties to the FTA to implement the existing obligations and deepen the relationship with respect to trade in services and investment d) Need to establish appropriate legal instruments for the Bahamas and Haiti which are party to the CARICOM-DR FTA e) Need to review the impact on CARICOM FTAs and future trading relationships with Canada and USA. f) A careful review of the text of the EPA would be required specifically as it relates to the apparent phased removal of special and differential treatment for Infant Industries 5. Important Issues for CARICOM- Michelle Hustler The BCSI, in collaboration with the TTCSI, conducted a services trade mission to the DR in November Fact is, before any of the participants had the occasion to be faced with possible technical barriers to trade, they were halted by the practical barriers to trade. These included the language barriers, cultural barriers, differences in the way business is conducted for example with the pace of business and the response time of the private sector counterparts in the DR, differences in the level of openness in doing business with non-nationals, etc. Though generous support was offered by the BSO s in the DR, including Caribbean Export, for different reasons, the trade mission participants did not avail themselves of these services. To ensure that the trade agreement bears full fruit, it is critical that in addressing trade issues between the two territories that the practical elements are given due consideration and measures are also put in place to address them. One of the trade mission participants did dialogue for a long period of time with the DR counterparts re. establishing a franchise. She was impeded by lack of funding. Carlos Warton With respect to the presentation made on the CARICOM-DR FTA the Barbados Manufacturers Association (BMA) queried why the DR private sector wanted CARICOM LDCs to phase out paints and varnishes since this product is listed as one that would attract MFN rates of duty. It was noted that there was still concern about the status of the DR Law 173. Barbadian stakeholders as well as the TTMA have indicated that they remain concerned about the ambiguous nature of the state of play. The BMA stakeholders want certainty that they would not be bound by the exclusivity provision in that particular Law. With respect to the reciprocal liberalisation of trade BMA noted that a number of locally produced items have already been subjected to phased liberalisation and therefore it

5 would be very difficult at this time to commit additional products at this time subject to regional preference considerations (see below). The BMA agreed with the comment /position that the owners of firms across the region need to meet and discuss the potential of improving the relationship between CARICOM and the DR. Members of BMA are still concerned about goods originating from free zones. They noted that the CARICOM Secretariat is yet to complete the built-in agenda on the treatment of goods originating from free zones. The commitments made in the EPA on services and investment will also have to be examined in the context of the CARICOM-DR Free Trade Agreement due to the regional preference clause in the EPA. Some of the constraints that are expected to arise in the EPA will also have to be addressed in the context of the CARICOM-DFR FTA. In particular mutual recognition and language as well as the visa and work permit issues. Caricom Stakeholders need to advance discussions on the CARICOM- DR FTA in light of the MDC commitment to provide regional preference within one year. ECONOMIC PARTNERSHIP AGREEMENT While most of Caricom s sensitive products have been excluded from the scope of the EPA it was noted that a few sensitive items have been subjected to phased reduction. However, these items have been excluded from liberalisation under the CARICOM-DR Agreement. Under Article 238 of the EPA, CARIFORUM Member States cannot grant better treatment to the EC and not offer similar treatment amongst themselves. Therefore it was anticipated that cement and perhaps garments (also all services and investment commitments made in the EPA) will have to be assessed in the near future. With respect to the linking of the Most Favoured Nation clause and the regional preference clause, it was noted that whatever better treatment the DR offers Canada as a result of their current negotiations, the former would have to offer the EC and as such offer it to CARICOM. The reverse also applies in that whatever better treatment CARICOM offers Canada, Member States would have to provide the same treatment to the EC and the DR. Therefore we are of the view that we use the CARICOM Secretariat and the CRNM to ensure that CAIRCOM and the DR are aware about developments taking place in their respective negotiations. 6. Important Issues for the Dominican Republic It was noted that: - Trade in Services is new to both CARICOM and the DR and it was suggested that a sub- committee on services be established. - With regard to CARICOM-Canada and DR-Canada trade negotiations that there must be constant communication between CARICOM and DR on issues of mutual interest - WIRSPA must be engaged - There is a need for a study on marine transportation 7. Creation of CARIFORUM-EU Business Forum- Mr. Williams explained that the Cariforum-EU business Project is being sponsored by Bizclaim. There are four components to the project:- A study of constraints to EU-Caribbean business

6 A preliminary study tour to 5 European countries A visit to Europe by up to 30 Caribbean business executives to develop export/investment opportunities and An EU/Caribbean Business Forum in the Caribbean Countries selected for the first study tour: Spain (Madrid) Belgium (Brussels) Netherlands (Amsterdam, The Hague, Rotterdam) Sweden (Stockholm) UK (London) The service sectors identified for special focus are: Construction, engineering and architectural services Management consulting ICT Cultural industries (including, film and books) Health & Wellness and Medical For the 2 nd Study Tour the areas of focus are:- IT, in its broadest sense Cultural Services Three main markets of focus:» Spain» Brussels» UK Follow up 8. Conclusion and Next Steps Preparatory workshop for BSOs and potential mission participants in Trinidad July Final selection of mission participants and organisation of mission Mission to selected EU markets September 2008 CARIFORUM EU Business Forum, November 2008 The meeting agreed that:- Four working committees will be established with a three month timeframe to get activities completed, or at least significantly advanced. A progress report will be submitted to Caribbean Export within this period. The four committees and chair (s) are as follows:- a) Agriculture- Mr. Ricardo Koenig-Dominican Exporters Association and Alan Ramirez of Caribbean Export b) Industrial issues- Fernando Gonzalez of the DR-Commonwealth round table. c) Unresolved issues- Carol Ayoung- See attached listed of issues.

7 d) Services- Dr Driver of the South Chamber of Trinidad and Tobago and Ms Michelle Hustler- Small of the Barbados Coalition of Service Industries. The proposed four activities for follow up by the Services subcommittee are:- a) Identify existing and potential service trade between CARICOM and DR b) Develop linkages between CARICOM and DR service providers. c) Identify and make recommendations about how the CARICOM - DR services section of the FTA will be implemented, given the context of EPA. d) Examine implications of other service agreements being negotiated, especially DR - Canada and CARICOM - Canada. 8. Any other business Caribbean Export has agreed to provide translation services for all communication emanating from the Business Forum. The date for the Next meeting is 27 th November, 2008 in Trinidad