DOCUMENT FOR THE ESTABLISHMENT OF THE CARICOM/DOMINICAN REPUBLIC BUSINESS FORUM
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1 DOCUMENT FOR THE ESTABLISHMENT OF THE CARICOM/DOMINICAN REPUBLIC BUSINESS FORUM BACKGROUND In the Agreement establishing the Free Trade between the Caribbean Community and the Dominican Republic, provision is made for the active participation of the private sector in attaining its objectives. Article XIII of the Agreement specifically states that The Parties agree to promote active participation of the private sector in the fulfilment of the objective of this Agreement. To this end, the Parties establish a CARICOM/Dominican Republic Business Forum to analyse trade and investment opportunities, exchange business information and organise business encounters, and deal with any other relevant matter including any matter as may be referred to it by the Council. The Forum shall regulate its own procedures and may make recommendations to the Council on any matter within its competence. In this regard, the Parties agreed to establish a CARICOM/Dominican Republic Business Forum to undertake the following. - Analyse trade and investment opportunities - Exchange business information - Organise business encounters - Discussions and analyses on private sector proposals for the areas to be negotiated such as services, investment, government procurement, among others - Promote a speedy decision making process - Assist, wherever possible, in the solution of conflicting private sector groups - Deal with any other relevant matters including those referred to it by the Joint Council - Discussions on any other trade agreement including EPA In addition to its specific role as identified in the Agreement, the CARICOM/ Dominican Republic Business Forum should also seek to assist in the achievement of the primary objective of the Agreement, which is to strengthen the commercial and economic relations between the Parties. The CARICOM/Dominican Republic Business Forum can also assist by its involvement in the following specific areas, which have been identified in the Agreement: - Increase trade in goods and services; - Promotion of investments including Joint Ventures; - Business development initiatives for Agriculture, Mining, Industry, Construction, Tourism, Transportation, Telecommunications, Banking, Insurance, Capital Markets, Professional Services, Science and Technology
2 The CARICOM/Dominican Republic Business Forum shall also formulate recommendations to the Joint Council and be responsible for the overall promotion of the Agreement. Name The name of the organization shall be the CARICOM/Dominican Republic Business Forum in English and Foro Comercial de CARICOM-República Dominicana in Spanish Objectives The primary objectives of the CARICOM/Dominican Republic Business Forum shall be to actively promote the commercial interests of enterprises in countries which are Parties to the Agreement, contribute to the successful implementation of all aspects of the Agreement and be of service to the Joint Council. It shall also actively market various aspects of the Agreement and generally seek to create greater awareness of the Agreement in the Dominican Republic and CARICOM Member States. Constitution The CARICOM/Dominican Republic Business Forum shall establish its own constitution and operational procedures including, but not limited too. Membership CARICOM Counterpart: In terms of representation from the CARICOM private sector the following will participate Chambers of Industry and Commerce Manufacturers Associations Pan Caribbean Companies The Caribbean Association of Industry and Commerce (CAIC) A supportive role is identified for the following: Caribbean Export CARICOM Secretariat CARICOM Trade Promotion Organisations (TPOs) The representation for the CARICOM private sector to the CARICOM Dominican Republic Business Forum would be done in alphabetical order according to countries and would be rotated on an annual basis. 2
3 Chambers of Commerce and Industry should be represented in alphabetical order from A to Z there should be 2 representatives, a lead and an alternate. For example, the Antigua and Barbuda Chamber of Commerce would be the lead representative for the first year and the alternate would be the Barbados Chamber of Industry and Commerce. In the next year, the previous alternate, and a rotation similar to that of the Chambers will also apply. Pan Caribbean Companies and Trade Promotion Organisations should also be represented in alphabetical order from A to Z. Dominican Republic Counterpart The private sector of the Dominican Republic, in 2002, established a Steering Committee comprising seven (7) members of the Dominican Republic private sector comprising: The Santo Domingo Chamber of Commerce The National Business Council of the Dominican Republic (CONEP) The Industries Association of the Dominican Republic The Trinidad and Tobago Chamber of Commerce in the Dominican Republic Any other entity as identified by the Steering Committee A supporting role on the Steering Committee is identified for:- Centre for Investment and Exports (CEI-RD) Caribbean Export This Steering Committee is the single voice of the Dominican Republic private sector which will pursue the interest of the Dominican Republic in the promotion and implementation of the agreement. The Steering Committee will also consult with the private sector in the Dominican Republic and will present consensus-built positions to the Forum. It will also have a consultative group among the relevant private sector associations and supporting institutions. Following are some suggestions by the Secretariat on the formation and operation of the proposed Business Forum which Member States may wish to consider with a view to finalizing the CARICOM position on this matter. 3
4 Frequency of Meetings The meetings of the CARICOM Dominican Republic Business Council should be held: 1. At least twice yearly. 2. Concurrently with the CARICOM Dominican Republic Joint Council Meeting whenever possible. Place of Meetings The venue for meeting of the CARICOM Dominican Republic Business Council will alternate between the CARICOM region and the Dominican Republic. Committees A joint committee should be established to: 1. Ensure that the primary objectives/core activities of the CARICOM Dominican Republic Business Council are executed. 2. Pursue the interest of the private sector in the promotion and implementation of the agreement 3. Create greater awareness and encourage active participation by stakeholders The committee shall select a chairperson that would be rotated yearly and alternate between a member from the Dominican Republic and the CARICOM region. Each counterpart group will select its representative for chairmanship of the committee. Financing of Activities The parties agreed to accept Caribbean Export s proposal (attached) to finance selected activities for the Forum. Sponsorship will be approached by the Co-Chairs and CE together. CARIBBEAN EXPORT S PROPOSAL FOR THE OPERATIONALISATON OF THE DR-CARICOM BUSINESS FORUM Introduction: Trade between CARICOM and the Dominican Republic has not been as good as expected since the start of the Free Trade Agreement in It is widely considered that the relationship has not progressed and that the Agreement has not fulfilled its promise of increasing trade due to a number of factors, both internal and external to the agreement. Clearly, there is a need to address this matter. As the first full FTA signed by both sides, it is critical to use this agreement as a case study to identify possible areas of improvement in the implementation of trade agreements. In light of the EPA negotiations, the DR and 4
5 CARICOM need to agree on key areas of trade in order to adopt a joint position with the European Union; thus proving the possibility and need for further discussion and progress with regard to the CARICOM-DR trade relationship. The CARICOM/Dominican Republic Free Trade Agreement calls for the establishment of the CARICOM/DR Business Forum, the CAIC and the Steering Committee of the Dominican Republic have taken the lead to establish this Business Forum. Caribbean Export has, in its mandate, the promotion of intra-cariforum trade. The Agency has thus undertaken considerable work to promote the CARICOM/DR trade in previous years and has included in its strategy for the promotion of the DR/CARICOM bilateral agreements signed by the Region, as well as the promotion of the CSME, as a core part of these agreements. Caribbean Export s primary role to assist the CARIFORUM private sector predisposes it to align its activities to those agreed by the CARICOM/DR Business Forum. Thus allowing the Agency s technical work in the promotion and development of CARICOM/DR Trade to be undertaken in the framework of the Business Forum and in conjunction with the Joint Council. Key areas to be addressed in the CARICOM-DR Business Development: Areas of concern such as Law 173, sensitive products, cultural differences (business culture), critical factors for success and failure in market access and penetration, among others. Guaranteed flow of trade information that increases market knowledge and assists with market entry efforts. This includes latest market development, statistics, business opportunities, trade policy matters, etc. (for example, the DR would need to learn about the reality of the CSME and CARICOM would need to know the market perspective for the DR in light of the DR-CAFTA). Identification of common areas to be addressed in the bilateral negotiations and in the joint negotiation for the EPA. How to assist the private sector in CARICOM s LDCs and bring them on board. Proposed activities: 1. Registration of companies that presently conduct, or would like to conduct, business in the DR or CARICOM markets. Firms would be classified according to their area of interest, sector, size, etc; 2. Establishment of priorities in areas of business or potential business with the assistance of the Business Forum; 3. Facilitation of discussion through fora, blogs, seminars and other events on issues concerning both parties such as lack of knowledge, law 173, problems with the agreement implementation, lack of follow up, etc; 4. Sectoral teleconferences among entrepreneurs; 5. Support to trade missions to selected countries/sectors; 5
6 6. Online business information centre. Quarterly newsletter; 7. Promotion of business activities (events being held in the region) throughout CARIFORUM that could promote the increase of bilateral business. Support role of Caribbean Export to the Business Forum: Caribbean Export, with offices in Barbados and the Dominican Republic, is in a unique position to serve as a support to both sides of this Forum. The Agency through its offices can work directly with representatives on both sides and the chairperson wherever he or she may be. Caribbean Export s work is technical and would seek to support through its technical work and funds (whenever possible) initiatives arising from the Business Forum. If the proposed activities seem suitable for the Business Forum and it decides to endorse them, some of these activities can start soon after the official launch of the Forum in June. Funding: There are certain activities such as Nos. 1,6 and 7 for which funds have been identified to initiate actions. Activities 3 4 and 5 may also be financed by the 9 th EDF CTPSDP if proper procedures are followed, however previous priority decisions would have to be made by the Forum. Sponsors/donors could also be sought for activities such as some of the teleconferences and other events. 6
7 CORE ACTIVITIES The CARICOM/Dominican Republic Business Forum can consider the following to be included as its core activities: MANDATE Analyse trade opportunities Exchange business information Organise business encounters CORE ACTIVITIES A mechanism shall be developed to exchange and update information on trade opportunities in goods and services. Design and implement programmes for the sharing of information on: - Export opportunities - Import opportunities - Investment opportunities Activities in the respective parties will be analyzed to select the most suitable for participation. One possibility is the organization of annual expositions of manufactured products to be held, on a rotation basis in the Dominican Republic and in another Caribbean Country, which is a signatory to the Agreement. Promote active participation in trade missions to and from the Parties to the Agreement Promote and participate in other scheduled trade and industrial exhibitions Facilitate one-to-one business meetings, trade and investment inquiries Promotion of the Agreement The Dominican Republic shall independently design and implement its own marketing and promotion programme for the Dominican Republic CARICOM Member States shall determine the manner in which they shall develop their marketing promotion programmes for the CARICOM countries Investment promotion The CARICOM/Dominican Republic Business Forum shall provide guidance/technical assistance in the development of these programmes All Investment Promotion Agencies shall be requested to submit listings of opportunities for direct foreign investments and/or joint ventures. The CARICOM/Dominican Republic Business Forum shall develop and maintain a database of such projects which shall be promoted throughout the countries, which are parties to the Agreement. - Potential Joint Ventures - Opportunities for Foreign Direct Investments 7
8 Proposals on areas to be negotiated Promotion of a speedy decision making process Assistance to conflicting parties Other matters The members of the CARICOM/Dominican Republic Business Forum shall undertake discussions and analyses leading to proposals on areas to be negotiated such as services, investment, and government procurement, among others. Private sector representatives at the Forum will seek to define a speedy decision making process/mechanism to be presented to the Joint Council for consideration and approval. The CARICON/Dominican Republic Business Forum may engage, wherever possible, in assisting conflicting parties to reach a mutually convenient solution. Deal with other relevant matters including those referred to it by the Joint Council. 8
9 We the undersigned hereby agree to the establishment of the CARICOM-Dominican Republic Business Forum as stipulated in the Article XIII of the Agreement establishing the Free Trade between the Caribbean Community and the Dominican Republic. Signed in Barbados on June 9 th,
Director, External Trade, CARICOM Secretariat. CARICOM Secretariat, Guyana
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