i.jong - economic partnership agreement - implications for the development of the domestic private...

Report Seminar

Economic Partnership Agreement:

Implications for the Development of the

Domestic Private Sector

prepared by

Drs. Imro San A JongMeeting Chairman

Wednesday 16 December 2009

Conference Room Chamber of Commerce and IndustryBusiness Booster Building

Trade Fair Complex

2 EconomIc PARtnERShIP AgREEmEnt: ImPlIcAtIonS foR thE DEvEloPmEnt of thE DomEStIc PRIvAtE SEctoR

Preface

The text in front of you is as a true account as possible of the seminar. Taking into account the importance

of the seminar and the complexity of the Economic Partnership Agreement (EPA), the chairman of the

seminar, responsible for the compilation of this final report, has, where necessary, made a number of

remarks captured in endnotes. With regard to a number of issues, it was important to put them in a

broader context or in more layman terms. In the text, footnotes are indicated by numbers (1, 2, etc.)

and endnotes in capital letters (A, B, etc).

In opdracht van het Suriname Business Development Center

uitvoerend kantoor van het Suriname Business Forum

VVeerrssllaagg SSeemmiinnaaaarr

EEccoonnoommiicc PPaarrttnneerrsshhiipp AAggrreeeemmeenntt::IImmpplliiccaattiioonnss ffoorr tthhee DDeevveellooppmmeenntt ooff

tthhee DDoommeessttiicc PPrriivvaattee SSeeccttoorr

Voorbereid door

drs Imro San A JongDagvoorzitter

Woensdag 16 december 2009

Conferentiezaal Kamer van Koophandel en FabriekenBusiness Booster Building

Jaarbeursterrein

Paramaribo

11 januari 2010

3EconomIc PARtnERShIP AgREEmEnt: ImPlIcAtIonS foR thE DEvEloPmEnt of thE DomEStIc PRIvAtE SEctoR

table of contents

lISt of ABBREvIAtIonS 4

SUmmARY 6

1. oPEnIng SESSIon 9 1.1 InTRoDuCTIon By IR. E.P. IssElT, DIRECToR suRInAME BusInEss 9 DEvEloPMEnT CEnTER 1.2 oPEnIng sPEECh By Ing. o. Dos RAMos, ChAIRMAn oF suRInAME BusInEss FoRuM 9 1.3 sPEECh MRs. E. hERnAnDEz ARAgonEs, ChARgéE D’AFFAIREs DElEgATIon oF 10 ThE EuRoPEAn CoMMIssIon In suRInAME 1.4 ThE oPEnIng sPEECh By DRs. C. P. MARICA, MInIsTER oF TRADE AnD InDusTRy 11

2. thE EPA In DEvEloPmEnt contExt: PoSSIBIlItIES, conStRAIntS AnD ImPlIcAtIonS 13 2.1 MR. REMCo vAhl: hoW suRInAME WIll BEnEFIT FRoM ThE EPA 13 2.2 PRoF. noRMAn gIRvAn: WhAT ARE ThE ConsTRAInTs ThAT EPA REPREsEnTs 16 AnD WhAT ARE ThE IMPlICATIons In joInIng ThIs EPA

fIRSt RoUnD of qUEStIonS AnD AnSwERS 20

3. MARkET ACCEss FoR gooDs 23 3.1 MR. yvETTE RokADjI AnD DRs. PAul soEBAI: EPA, MARkET ACCEss FoR gooDs 23 3.2 PATRICIën BIsoEn, MsC: RulEs oF oRIgIn 26 3.3 IR. REné vAn EssEn: IMPlICATIons, BEnEFITs AnD RIsks FRoM ThE PRIvATE 27 sECToR As REsulT oF ThE EPA 3.4 DRs. jEAn DjAsMAn: EPA, TRADE In sERvICEs 29 3.5 Ing. WIlgo BIlkERDIjk: IMPlICATIons, BEnEFITs AnD RIsks FRoM ThE PRIvATE sECToR As REsulT oF ThE EPA 30

SEconD RoUnD of qUEStIonS AnD AnSwERS 28

4. cloSIng SESSIon 34 4.1 suMMARy sEMInAR ChAIRMAn 34 4.2 ClosIng oF ThE sEMInAR By IR. E.P. IssElT, DIRECToR suRInAME 34 BusInEss DEvEloPMEnT CEnTER

5. conclUSIonS AnD REcommEnDAtIonS 35

APPEnDIx 37 1 AgEnDA sEMInAR 38 2 InTRoDuCTIons AnD PREsEnTATIons 40 3 CuRRICuluM vITAEs 91 4 lIjsT vAn AAnWEzIgEn sEMInAAR 16 DEC 2009 93

EnDnotES 96


lijst van Afkortingen

AsFA Association of Manufacturers in suriname

CED Customs and Excise Department

CF CARIFoRuM, the group of countries composing the CARICoM Member states and the

Dominican Republic, which concluded the EPA agreement with the

CRnM Caribbean Regional negotiating Machinery, the institute that represented the CARICoM

Member states during the CARIFoRuM-Eu EPA trade negotiations

CoTED Council for Trade and Economic Development

DFQF “duty free and quota free”

nAs The national Assembly of suriname

DomRep The Dominican Republic

EDF European Development Fund

EPA CARIFoRuM – EC Economic Partnership Agreement

Eu European union, European Community

FDI Foreign Direct Investment, defined within the EPA as commercial presence established

by the creation or maintenance of a branch or representative office or the purchase of

an existing company for the purpose of performing an economic activity.

Fg French guyana

FTA Free Trade Agreement

gATT general Agreement on Tariffs and Trade

hs harmonized Commodity Description and Coding system; internationally acknowledged

system to describe and code traded goods

ME Micro Enterprise

MFn Most Favoured nation Clause: one of the fundamental pillars of free trade agreements

stating that the imports of one country should be provided a treatment noT different

than that of similar countries. no discrimination for instance in the application of

duties, regulation and clearance

MTI Ministry of Trade and Industry.

MRA Mutual Recognition Agreement

nT national Treatment Clause: also one of the fundamental pillars of free trade agreements

stating that an imported good/service should receive the same treatment as similar

goods/services produced locally

nTB non-Tariff Barriers such as Rules of origin, TBT, sPs

Plos Ministry of Planning and Development Cooperation

Png Professor norman girvan

Roo Rules of origin

sBC suriname Business Development Centre

sBF suriname Business Forum


sDT special and Differential Treatment. A provision within the gATT that acknowledges the

needs and circumstances of developing countries and allows for treatment that differs

from that applied to developed countries.

sME small and Medium sized Enterprise

sPs sanitary and Phyto-sanitary Measures; measures, especially in agriculture, with

the objective to protect man, animals and plants from diseases, plagues and

contamination.

TBT Technical Barriers to Trade. Rules, requirements to be met by goods before they

are allowed to enter a market. These could be requirements concerning packaging,

labeling, contents of the product, standards, certification etc. TBTs have the objective

to protect but can also be used to discriminate towards imported goods.

TF Trade Facilitation

TWg Technical Working group and the meetings thereof. TWgs were aimed at providing

inputs from the different CARICoM Members states in preparation of the trade

negotiations but also to take home the instructions from the negotiating institution and

prepare for the next TWg

vsB suriname Trade and Industry Association

WTo World Trade organisation


SUmmARY Pagina 6 van 90

Verslag Seminaar “Economic Partnership Agreement. Implications for the Development of the Domestic Private Sector 16 dec. 2009

SAMENVATTINGOp woensdag 16 december 2009 organiseerde het SBC, de werkarm van het SBF, een seminaargetiteld “Economic Partnership Agreement: Implications for the Development of the DomesticPrivate Sector”, in de conferentiezaal van de Kamer van Koophandel en Fabrieken op hetJaarbeursterrein. Het doel van het seminaar was om de handels en ontwikkelingsovereenkomsttussen de CF en EU, de EPA, welke op 16 december 2007 werd afgerond en op 15 oktober 2008 inBridgetown, Barbados, werd ondertekend, te bespreken. Het ging in het bijzonder om de dialoogtussen de private sector en de overheid te verhogen en de gevolgen van de EPA voor de privatesector en de economische ontwikkeling beter te begrijpen. De focus van het seminaar was rond 3sleutelaspecten geconcentreerd, m.n.:

1. Waarom is de EPA belangrijk voor Suriname?2. Wat zijn de gevolgen en effecten voor bedrijven en de economische ontwikkeling van

het land?3. Hoe dient de EPA uitgevoerd te worden: wat zijn de rollen van de overheid en de

particuliere sector daarbij?

Voor het seminaar was een breed gemêleerde gezelschap uitgenodigd, waaronder inleiders van deEU en Professor Norman Girvan van de University van de West Indies, evenals medewerkers vanMHI, die aan de EPA onderhandelingen t.b.v. Suriname hebben meegewerkt en vertegenwoordigersvan het bedrijfsleven. De bedoeling was om kenners van de EPA aan het woord te laten en deaanwezigen, in het bijzonder de private sector en de vertegenwoordigers van de overheid, zo goed

on Wednesday 16 December 2009, the sBC, the executive office of the sBF, organized a seminar

entitled “Economic Partnership Agreement: Implications for the Development of the Domestic Private

sector”, in the conference room of the Chamber of Commerce and Industry located on the grounds

of the Trade Fair. The objective of this seminar was discuss the trade and development agreement

between de CF and the Eu, the EPA, signed on 16 December 2007 and signed on 15 october 2008, in

Bridgetown, Barbados. The seminar was concerned with improving the dialogue between the public

and private sector, particularly understanding the possible implications of the EPA on the economy and

the private sector.

The seminar was focused around 3 key aspects:

1. Why is the EPA important for suriname?

2. What are the implications and effects on companies and economic development?

3. how the EPA should be implemented: what are the roles to be played by the government and the

privates sector?

A broad spectrum of people and institutions were invited, of which speakers from the Eu, Professor

norman girvan from the university of the West Indies, as well as staff members from MhI, who


participated in preparing the EPA negotiations, and representatives of the private and public sector. The

intension was to have experts with knowledge of the EPA to have the floor and allow those present,

in particular the private sector and representatives from the public sector, to be informed in detail

about the agreement. By way of discussions, the meeting left open the opportunity to pose in-depth

questions, receive answers or formulate bottlenecks in implementing the EPA.

The seminar was structured in 4 parts: in the first part, the opening session, invitees were greeted

by the sBC, the sBF and the Eu. In this part, the Minister of MTI also made the opening speech. The

second part consisted of 2 very interesting presentations followed by ensuing discussions, in which

differences in viewpoints and interests clearly indicated to what extent the EPA should be perceived as

promising a bright future or should be approached with a great amount of concern. The second part

was also characterized by to what degree more or less detail about the EPA was revealed. The third

part consisted of 3 presentations by MTI and 2 from the private sector. The presentations of MTI were

intended to provide more insight into how the EPA came about for suriname, in particular with respect to

market access for goods, and services and investments. The presentations of the private sector had the

objective to portray the bottlenecks the sector perceived in implementing the EPA and present proposals

that can be solved specifically by policy measures. After the 2nd and 3rd session, the participants had

the opportunity to communicate with the presenters. The 4th part was the conclusion of the seminar.

The seminar gave a good impression of the complexity of the EPA, which matured greatly during the

presentations of the Eu representatives and Png. Market access does not necessarily entail market

presence and this seminar really provided a taste of what is in store in terms of efforts to establish

market presence on the Eu market: non-tariff barriers with respect to goods, severe entry requirements

including (discretional) decisions by local governments with respect to market access for services, and

other Eu regulations that need to be met but are not included into the agreement. In this part of the

seminar it became more apparent that we are not entirely aware of the impact the commitments will

have on the region, in particular with respect to services.

What also surfaced more clearly are the institutional monitoring and governing mechanisms the Eu has

incorporated into the EPA to retain the CF market and to monitor the progress and possible adjustments

of the agreement. It specifically regards the impact of the MFn Clause with respect to future FTAs the

CF might conclude with parties outside the EPA: all advantages extended to future partners should also

be extended to the Eu. This Clause does not make it attractive for future partners to conclude FTAs

with the region, but also implicitly grants the Eu exclusive access to the CF market and ensure that this

remains as such. At the WTo many Members, including Brazil, raised objections against this Clause; it

would be contrary to the “Enabling Clause” and the principle of “special and Differential Treatment”.

The presentations after the break were to review the commitments suriname made to the Eu, in

particular the baskets of goods and the commitments with respect to services and investments.

The presentation on goods described how these were distinguished into 3 categories, depending


on the incidence of tariff reduction. Rules of origin were also explained as a way to highlight the

fundamentals of market access for goods. The presentation on services short provided an overview

what commitments have been made by parties. Parts of the surinamese market immediately opened

with the agreement going into force, and others will gradually open. Apart from the services regularly

included in services agreements, the Eu has also agreed to open their market for the temporary entry

of professionals and non-services sectors.

given the commitments made in the EPA, more was expected from the presentations of the private

sector to clearly indicate the bottlenecks the sector thinks it would meet in engaging the agreement.

The presentations were characterized by “fear”, doubt and uncertainty with respect to possible impacts

and the call for evaluations, sector studies and protection mechanisms in particular. In this respect,

representatives of the Eu have frequently stressed that safety mechanisms have been built-in into the

agreement and that no fear of flooding the surinamese market have to prevail.

What emerged more clearly, at least that is the impression from the seminar, is that the private sector

has become more aware that regular and intensive participation in activities of organized by MTI are

of eminent importance to transform opportunities into advantages, but also to be better prepared to

meet the challenges the EPA brings. on many occasions within the seminar, it was stressed, also by

representatives of the private sector that the latter is not sufficiently taking advantage of the invitations

and impulses to gain progress with the opportunity to position itself better into markets. Consequently

it was also stressed that it would be very important for the private sector to actively participate within

the EPA and services Implementation units, which will be/are initiated by MTI.

The importance and success of the seminar was underscored by the participants. Also the questions

posed by the media to various representatives after the conclusion of the seminar, emphasized the

interest and importance of the subject. The sBC and sBF have looked back on a successful seminar

and mention was made of future, more detail oriented seminars on the EPA.


1. oPEnIng SESSIon

1.1 IntRoDUctIon BY IR. E.P. ISSElt,

DIREctoR SURInAmE BUSInESS DEvEloPmEnt cEntER

Mr. Ernie Isselt, sBC director welcomes the authorities, invitees and other participants and explains that

the sBF and sBC organize seminars with the objective to promote the exchange and cooperation between

the public and private sector. Mr. Isselt makes note that an integration process is taking place worldwide

and that the country, the private sector in particular, needs to find its place and space within the process.

The EPA, concluded in october 2008 between the CF countries and the Eu, provides a perfect opportunity

to achieve such. however, against the background of the norms, standards and requirements set by

international institutions such as the WTo, the suriname private sector will need to prepare properly

and is searching for methods to increase its participation in the integration process by expanding its

competitive capacities. In this context, the support and cooperation of the public sector will be of crucial

importance, for instance in establishing institutions, the creation of laws and regulation, etc.

This seminar entitled “Economic Partnership Agreement: Implications for the Development of

the Domestic Private sector”, should be perceived in this context, the public-private partnership

cooperation. The objective is to have a better understanding of the impacts of the EPA on the private

sector and the economic development of suriname, whereby 3 specific aspects were of importance:

1. Why is the EPA important for suriname?

2. What are the implications and effects for businesses and the development of the country?

3. how the EPA should be implemented: what are the roles to be played by the government and the

private sector?

Mr. Isselt introduces the chairman and wishes the attendants a successful seminar.

1.2 oPEnIng SPEEch BY Ing. o. DoS RAmoS, chAIRmAn of SURInAmE BUSInESS foRUm

The discussions regarding the implications of EPA on suriname are ongoing since 2005. The

discussions are, for instance, currently continued within the nAs, preceding the ratification of the

agreement. People are aware of the opportunities that the EPA present, but these are overshadowed by

the many questions regarding possible negative effects that this agreement may have on the domestic

market, small and medium enterprises in particular.

The opportunities most frequently mentioned are, better quality of goods available for the consumer

due to the subsequent reduction of tariffs, and advanced technologies as introduced/institutionalized

by standards. Also the DFQF possibility that the EPA offers in terms of market access for goods, should


be regarded as an opportunity. The questions that also arise are; can private sector supply our goods

and services at the desired price, quality and scale for the Eu market. The quota for rice, which will be

in effect till 31 December 2009 and determined at 250,000 tonnes, was taken as an example; suriname

and guyana are not in the position to furnish this quota.

Despite the many limitations, the sBF chair encouraged the private sector and the government to

consider the EPA as a challenge. Will we be able to meet the Eu standards? With respect to this

aspect, the chair also referred to an example; fish. The reminded that suriname was able to meet the

Eu standards for fish and through perseverance has eventually gained access to the Eu market. now

the country has a standard bureau to assist the private sector. Can the private sector produce the

quality and enough quantity to compete on the Eu market? There are enough questions raised by the

agreement and the challenge, but the real challenge is: can we (the government) provide companies

the support to meet the challenges and transform the opportunities in advantages by solving envisaged

problems with specific policies?

1.3 SPEEch mRS. E. hERnAnDEZ ARAgonES,

chARgÉE D’AffAIRES DElEgAtIon of thE EURoPEAn commISSIon In SURInAmE

Mrs. hernandez Aragones, representative of the EC in suriname, welcomes everyone and congratulates

suriname with signing the EPA agreement. she characterizes the agreement and the signing thereof

as a milestone in the relationship between the Eu and the CF, including the outermost Regions, and

foresees that with this agreement markets will open more than before and competition will increase.

Change cannot happen at once, but has to take place in small manageable steps. That’s why, with

respect to agricultural goods, preferential treatment will temporarily exist (as for sugar, rice and

bananas) and the CF market will open through an agreed step by step procedure. The Eu market will

open from day one, while import duties in CF countries will be reduced by 61% in 10 years, 83% in 15

years and 87% in 25 years to allow Eu imports into the regional market, whereby certain Eu goods will

permanently be excluded from tariff reduction.

Mrs. hernandez Aragones portrayed the EPA as a special agreement and recalled the commitments in

tourism, the temporary presence of natural persons for commercial purposes and special professions;

a provision, mrs. hernandez Aragones said, that the Eu has not provided in any other FTA is has

concluded with other partners.

Apart from the trade aspects, the agreement also addresses a development aspect to support CF

countries in taking advantage of the opportunities. For this purpose, €165m has been allocated for the

regional integration process.


To implement the EPA, a regional “roadmap” has been drafted. Furthermore, an agenda of issues can

be drawn up for discussion within the CF-Eu joint Committee how the further improve the competition

capacity of the region.

The Eu representative wished the participants lots of success with the seminar and once again

congratulated suriname with the signing of the EPA agreement.

1.4 thE oPEnIng SPEEch BY DRS. c. P. mARIcA, mInIStER of tRADE AnD InDUStRY

The minister welcomes the participants and said to be honored to be requested to again open a

sBC seminar. The minister starts by recalling his own experiences with the EPA: moments during

the negotiations were harsh words were uttered and the CF countries threatened to abandon the

negotiations and moments were it looked as if the deadline for signing the agreement would not be

met. For the minister it was a great honor to represent the President of the Republic of suriname to

sign the agreement.

The minister often stood still at the criticism towards the EPA and the proactive attitude necessary to

transform opportunities into advantages. “nationally there is a lot of criticism and pressures”, referring

to the critical discussions within nAs preceding the ratification of the agreement, “but criticism should

not be based on fear and falsehoods and the EPA should not be placed in a controversial context”. The

minister reminded that in implementing the EPA, everybody has access to the same information and

commitments and the requirements to gain advantage are clear. With respect to the market access of

goods, the DFQF applies and even though it is acknowledged that currently the country does not have

enough export goods to supply the Eu market, efforts should be invested into that direction.

In this vain, the minister referred to the efforts made by his Ministry. The Ministry follows an integrated

approach whereby sBs is creating standards to ease market access and competition legislation is

enacted to protect consumers and establishments against the abuse of dominant market position by

particular companies. The minister called for a critical evaluation of the EPA by directing the energy

towards generating advantages from the EPA. The minister referred to the IDB Competitiveness

Enhancement Project to assist the private sector in achieving the advantages. The message with

respect to criticism was clear; transform opportunities into advantages.

The minister also called upon the sBF, the platform that is established to enhance the public-private

partnership, to synthesize with the Ministry to assist in identifying and tackling the opportunities and

challenges. The Minister referred to the current efforts with respect to the implementation of the EPA,

by establishing an EPA Implementation unit (of which the establishment by way of an order was in

its final phase). The EPA Implementation unit, which will consist of representatives of the public and

private sector, should see to it that the EPA is properly implemented, monitored and coordinated, using


the regional EPA roadmap as a guiding principle. Together with the work plan, the unit may adjust the

roadmap according to circumstances. The minister, familiar with the approach of Png, referred to the

critical disposition of the Caribbean scholar, which should result in refinement and better preparation

of successes and to overcome obstacles. The minister then declared the seminar opened and wished

the attendees a fruitful participation of the seminar.


2. thE EPA In DEvEloPmEnt contExt: PoSSIBIlItIES,

conStRAIntS AnD ImPlIcAtIonS

The second part of the seminar was intended to put the EPA in a broader context, whereby all aspects

of the agreement would be highlighted as much as possible. For this purpose, Mr. Remco vahl, deputy

head of the Director general of the European Commission, Mr. Fabien gehl and Mr. Rico zampetti

were invited to explain the EPA from the purview of the Eu. organizers have also chosen to invite Png,

an expert on the region and the EPA, to address the participants and provide a critical analysis of the

agreement. It became a very lively discussion, which disclosed, especially from the point of view of

Png, that the EPA should be considered a very complex and comprehensive agreement that should be

studied with care in seriousness and would require intensive efforts to really transform opportunities

into tangible advantages. Png was particularly concerned with the “erosion effects” that future FTAs

between the parties (CF and Eu) and other parties outside the EPA may have on the current agreement,

thus the market access opportunities of CF countries.

Pagina 12 van 90


2. EPA IN DEVELOPMENT CONTEXT: POSSIBILITIES, CONSTRAINTS AND

IMPLICATIONS3Het tweede deel van het seminaar was bedoeld om EPA als geheel in een ruimere context teplaatsen waarbij alle aspecten van de overeenkomst zoveel als mogelijk belicht zouden worden.Hiertoe waren de heren Remco Vahl, onderhoofd bij de Directeur Generaal van de EuropeseCommissie, Fabien Gehl en Rico Zampetti uitgenodigd om de aanwezigen vanuit het standpunt vande EU de EPA uit te leggen. Echter is ook gekozen om een kenner van de regio en de EPA, Prof.Norman Girvan, aan het woord te laten en een kritische beschouwing van deze overeenkomst tegeven. Het is een levendige discussie geworden die, vooral vanuit de kant van PNG, heeft laten ziendat EPA een zeer complexe en veelomvattende overeenkomst is die met de nodige zorg enserieusheid bestudeerd dient te worden en intensieve inspanningen zal vergen om de gunstigemogelijkheden daadwerkelijk in voordelen om te zetten. Het ging bij PNG in het bijzonder over de“uithollingseffecten” die toekomstige handelsovereenkomsten tussen de partijen (CF en EU) enandere handelspartners buiten de EPA op de gesloten overeenkomst, dus de kansen voormarkttoegang voor CF landen, zou kunnen hebben.

3 De presentatie evenals de discussies in dit deel van het seminaar waren allen in het Engels, maar zijn voor ditNederlandstalig verslag overeenkomstig de taal van het verslag gehouden.

The Eu representatives predominantly stressed the advantages that should rather be considered as

opportunities, and indicated that the realization of the advantages is fully in the hands of the region

itself; do not just focus on the extended market access, but developing the capacities necessary to

successfully enter the Eu market and maintain the market share.


The presentation of this part of the seminar as well as answering questions partly took place through

video conferencing, whereby the connection with Png was not always optimal.

2.1 mR. REmco vAhl: how SURInAmE wIll BEnEfIt fRom thE EPA

The presentation by Mr. Remco vahl and others, entitled “how suriname Will Benefit from the EPA”,

started off with an overview of the structure and character of the EPA and proceeded by specifically

focusing on important aspects of the agreement, such as: the advantages for regional and national

development, the exceptional market access for goods and services, facilitating regulations and the

development aspects (financial support and institutional strengthening) in the agreement. To use

the words of Mr. vahl; “unlimited market access for goods and unprecedented market access for

services” and enough provisions to take advantage of both the trade and development aspects of the

agreement.

The EPA is a comprehensive and partnership-based regional trade and development agreement. Trade

liberalization and development cooperation have been integrated into an overarching development

cooperation, congruent with the rules of the WTo, whereby market access into the Eu is achieved

simultaneously with the entry into force of the agreement and access into the CF market will take place

through a step by step process (extended over a maximum period of 25 years). These aspects endow

this agreement its asymmetric and progressive character.

The trade cooperation has been extended into other non-traditional areas such as market access for

professionals, non-services sectors and provisions for government procurement. This entirety is

supported by development cooperation, with the Eu making resources available in support of the

integration process. The importance of EPA in terms of poverty alleviation, regional integration,

expansion of investment opportunities and sustainable development were underlined. The agreement

takes into account the differences in development levels and the partnership is based on solidarity,

understanding of mutual interests, participation and dialogue.

Market access for GoodsWith respect to market access for goods, apart from the frequently cited DFQF provision, the expansion

of market opportunities outside the Eu market1 was also frequently stressed, such as the market of the

Dominican RepublicA.

Reference was also again made to the safety valves put in place to avoid the domestic market being

swamped by Eu goods. The Eu presenters wanted to take away the fear sensed, which was also

1 not specifically referred to, but what probably also should be included in this remark are the so-called “outermost Regions”, which are also part of the EPA. These are dependencies that politically still resort under various Eu Member states and are therefore part of the Eu, but are noT part of the continent of Europe. They have special provisions within the EPA and are also allowed to sell on the CF market. It normally involves very small dependencies such as the Azores, de Canary Islands, French guyana, etc, 7 in total.


present in the nAs deliberations, that the surinamese market might at some time be flooded by Eu

import goods and that local producers/sectors would be endangeredB.

Market access Services and InvestmentsC Market access for services has been dubbed a comprehensive offer not only for the magnitude of the

commitments, but also for the “new” sectors, in which the Eu have made commitments2 not formerly

extended to other partners outside the EPA. Important in the market access for services, if the volume

of services trade is taken into account, is the effect of the MFn Clause: Eu or CF commitments of future

FTAs extended to partners outside the EPA that would be deemed more favorable than the current,

should also be extended to the partners within the EPA.

special attention has been devoted to 3 new area:

a) Temporary presence of natural persons for business purposes3;

b) Contractual services suppliers and independent professionals of establishments from CF countries4;

c) Entertainment sector, whereby audiovisual co-productions of Eu and CF producers will be qualified

as Eu productions and will gain easier access into the Eu market.

The EPA Regulatory Framework: Transparency and PredictabilityThe objective of the regulatory framework, “EPA Rules”, is to make trade more acceptable and

attractive by agreeing on a set of rules to comply with. These rules concern, among others, trade

rules (specifically concerning the environment, that regulation on the environment is not specified/

implemented such that it hampers trade), cooperation with regard to innovation (taking into account

intellectual property rights and the developmental level of CF countries), competition legislation

whereby a limited number of general principles have been agreed upon to avoid markets being abused

by anti-competition behavior (maintaining minimal legislation with respect to cartel formation, abuse

of dominant position, etc.) and supervision of a healthy competitive environment coordinated by local

and regional competition authorities, transparency with respect to government procurement (without

the obligation of CF countries to allow Eu companies to participate in government tendering process).

Also included in the “EPA Rules” is dispute settlement (see endnote B)

With regard to “Trade Facilitation” favorable references were also made by the presenter, without

specifying what these areD.

With respect to trade in bananas, mention was made that, on 15 December 2009, an agreement had

been reached in geneva to end all conflicts regarding this matter. The agreement meant less protection

2 The Eu has made commitments in 94% of its her services sectors, while the CF has done that in for approximately 75%, of which 65% for CARICoM countries and 90% for DomRep.

3 It regards 6 categories of natural persons allowed entry into and temporary stay in their territories of key personnel, graduate trainees, business services sellers, contractual services suppliers, independent professionals and short term visitors for business purposes. The EPA does not provide permanent access in mutual labor markets.

4 Market access within the Eu in 29 sectors under the condition that a contract exists for a period no longer than 6 months. Apart from the professionals employed by establishments, trained independent service providers have access to 11 sectors within the Eu, such as advisory services, computer services, management consultancies, etc, also for a maximum period of 6 months.


for bananas from ACP countries, and financial support of up to €200m for a period of 4 years to

accommodate adjustmentE.

2.2 PRof. noRmAn gIRvAn: whAt ARE thE conStRAIntS thAt EPA REPRESEntS AnD whAt

ARE thE ImPlIcAtIonS In JoInIng thIS EPA5

The introduction by Png differed in a number of aspects relative to that of the former speaker: it was

more comprehensive, more critical, showed more detail, more in-depth and of more importance with

respect to burning questions such as the real practical value of the DFQF principle and the actual

impact on the domestic market. Png started his presentation with the question why the seminar has

been organized at this moment and not before the signing of the agreement took place. The subjects

addressed by Png concerned: general remarks with respect to the EPA, trade in goods and import

competition, trade in services and investments, the “Mandatory Review Clause” and government

procurement.

General Remarks with respect to the EPAPng started out by making a number of general remarks, creating a context to understand the

subjects he wanted to address. The discussion issue Png confronted the seminar with concerned the

implications (future) Eu trade relations with other partners outside the EPA will have on this agreement,

in particular the fear that provisions that should assist CARICoM countries in the process of gradual

integration, will disappear.

The core of the Png presentation was caution and quick actions to evaluate the economic, institutional

and political implications of the EPA, both national and regional. Concerning goods, the DFQF offer

is not new since under loMé and Cotonou the Eu had already opened their markets for 97%. The

problem with the minor supply of export goods on the Eu market did not concern the favorable market

access, but the non-tariff barriers the Eu had/has in place to hamper market presence. The most

important change in the goods regime is the principle of reciprocity in terms of MFn and nT.

With respect to services and investment, the question that lingers is the magnitude of the offer

CARIFoRuM has extended to the Eu, suriname in particular, since it is not possible to trace a specific

policy underlying its offer. Market access for services into the Eu is tied to lots of requirements, of

which a number of them depend on the discretion of individual Eu Member states.

The biggest concern/danger Png is foreseeing, concerns the commitments made in terms of the

institutional supervision: the “standstill” and “Review” Clause. In his opinion, these commitments

have undermined the scope of national and regional institutes (such as the Meeting of the heads of

5 The receipt of Png through videoconferencing was on moments unclear that’s why some parts are not clearly defined. Where necessary there has been made use of the “speaking notes”.


state and CoTED) to create development policies and protect infant industries, by allowing the Eu to

influence or involvement in regional organs.

Market Access of Goods and Import CompetitionPng indicated that within the purview of market access for goods, more barriers exist than the DFQF

offer suggests. Those impediments exist within the conditions stipulated in the non-tariff barriers to

really establish market presence within the Eu marketF. he concluded, that due to these nTBs market

access does not necessarily mean that market presence is guaranteed. he foresees that local companies

will, in time, become “junior partners” of larger Eu establishments, whereby the locals will come off

worse as a result of the superior negotiation position of Eu establishments.

In the stepwise liberalization process of Eu imports into suriname, the country will liberate its market

by 9% duty free imports in the coming 3 to 5 years. In the next 6 to 10 years, this increases to

20%, followed by 27% in 11 to 15 years. The number of goods on the “Exclusion list” contains

approximately 27% of Eu imports6. however, the percentage of Eu imports on which import duties are

levied is around 91%; due to the EPA, government revenues will drop drastically in the future 7.

Furthermore, suriname should expect competition from Eu imports on goods such as rum, beer,

wooden furniture, cleansers, fats and ice creamg.

According to Png, due to the ‘’standstill Clause”, these effects are already noticeable on the locally

manufacturedh.

Market Access Services and InvestmentsThe crux in the argument Png made concerning market access for services and investments, is that

it did not receive the attention it should have, and that the region was blindsided by the opportunities

offered by the Eu, while the threshold to enter the Eu market is made difficult due to the high rising

requirements their services market imposes.

By way of example, he demonstrated the requirements that independent professionals have to meet

before entering the Eu market, especially when taken into account the difficulty of other forms of

services supply relative to the availability of academics, which should be able to furnish the Eu market

the fastest. however, requirements are set high and discriminatory, such as: (must have obtained) a

service contract for a period not exceeding twelve months, at least six years professional experience

in the sector of activity which is the subject of the contract, possess (i) a university degree or a

qualification demonstrating knowledge of an equivalent level, and (ii) professional qualifications where

this is required to exercise an activity pursuant to the law, regulations or requirements of the EC Party

or of the signatory CARIFoRuM state applicable where the service is supplied, other discriminatory

6 Twice as much as the average imports other CF countries have on their “Exclusion list”.7 In 2004, total government revenues from Eu imports were us$11,5m.


limitations, including on the number of natural persons in the form of economic needs tests 8, which

are specified in Annex Iv.

With regard to the qualification of the university degree, a “Mutual Recognition Agreement” (MRA)

should exist beforehand. Is it clear that the process of entering the Eu market by independent

professionals, including arriving at a MRA, will take quite a while before professionals can really enter

the Eu marketI.

Png also scrutinized the commitments suriname made under the services and investment agreement

and strongly suggested that the country commissions, as soon as possible, a detailed study of its

services and investment commitments under the EPA to be aware of the implications and take the

necessary measures, where needed. he particularly referred to the extensive market access extended

between 2015-18 for services such as physiotherapy, paramedical services, computer and database

services, etc 9.

With regard to agriculture, Png indicated that the “negative approach” was followed, and that suriname

made the necessary reservations concerning land ownership.

Government ProcurementAccording to Png, the text on government procurement is liable to various interpretations and it’s not

clear what the nature of the commitments in government procurement is. According to experts and

politicians in the region, the EPA text indeed does contain commitments, while the Eu and the CRnM

contend that the text is intended only to introduce transparency within the procedures and rules for

government procurement, but that this does not entail entry of Eu companies into the government

bidding process. To take part in the bidding process, an Eu company should first be authorized. In

Png’s opinion the EPA does accommodate entry into this part of the services market.

he asserted the chapter on government procurement to be one of the most extensive and detailed, and

in support of his interpretation quoted a number of passages of article 167.1, where it’s clear that the

text is open to both interpretations and that the word “shall” refers to a binding commitment 10.

Article 167.1 reads as follows: “The Parties and the Signatory CARIFORUM States shall ensure that the procurement of their procuring entities ..... take place in a transparent manner ......, treating any eligible supplier of either the Signatory CARIFORUM States or the EC Party equally in accordance with the principle of open and effective competition”. The text prescribes in a compelling manner that the

signatories “shall ensure” that the process takes place in a transparent manner (the assertion of the

8 The requirement for an “economic needs test” is mentioned in the goods and services/investment parts of the EPA, but not clearly defined in the agreement. For certain services, the following applies: “Access is subject to economic needs test. Main criteria: the employment situation in the sub-sector”, but no limits are mentioned when “employment situation” does not allow CF candidates to enter. The conditions to be met by the needs test are not defined/agreed and, furthermore, there are no provisions in the EPA to challenge the findings of such tests.

9 Please refer to the presentation of Png.10 In the language normally used in trade liberalization, the word “shall” always refers to a commitment or binding arrangement.


Eu and CRnM) and that the signatories “shall” also “ensure” that every supplier is allowed to bid for

government tenders, taking the principles of open and effective competition into account, shall be

treated equally (or be allowed market access, the assertion of experts and politicians in the region,

incl. Png).

language in the same vain is captured in article 167.1 (A), b (i) and (ii), whereby clear binding rules

with respect to market access have been put forward: (i), “shall endeavour not to discriminate against a supplier established in either Party…” and (ii), “shall not treat a locally established supplier less favourably than another locally established supplier on the basis of degree of foreign affiliation to or ownership by operators or nationals of any Signatory CARIFORUM State or of the EC Party”.

Both points (i) and (ii) indicate that Eu companies are allowed to bid for government tenders, since

the phrases “not to discriminate against” and “not treat another locally established supplier” can only

be interpreted when one is in competition with someone else, thus is tendering. Point (ii) also allows

Eu companies to do the bidding through local companies, in the form of foreign representatives,

or companies owned by entrepreneurs or natural persons in CARIFoRuM or Eu countries (the FDI

definition under Investmentsj).

Clauses in the EPA Png recalled the clauses incorporated into the EPA. For a general overview, these clauses have been

shortly described in endnote k k.


fIRSt RoUnD of qUEStIonS AnD AnSwERS11

The first questioned concerned the availability and distribution of tariffs under the different baskets

of goods. Mr. vahl indicated that the list of goods is available on the Eu and CRnM websites. This

question was relegated to the presentation on market access for goods, but Png iterated that it is

important to make the list of goods available on the 6 digit level of the hs system. A very laborious

activity, which MTI has already started.

During the discussion on market access for goods, Mr. vahl again stressed the advantages and the fact

that the agreement contains enough safety valves to protect local CF market. he recalled as an example

the product “rum” where the import into all CF countries is “excluded”.

The audience also wanted to know what measures are currently in place for export and import

protection.

Apart from questions, remarks were also made. An entrepreneur remarked that people are not fully

prepared for the EPA, especially when it concerns exports. There is noT enough technical support

and research. The policy of MTI is noT motivating or encouraging. Examples included the policy on

business licenses, the lack of a proper investment law, expensive financing, etc. The question was raised

if provisions for financing and technical assistance are available.

Another remark focused on the often used word “benefits” by the Eu representatives, which should

better be interpreted as “potentials” if certain requirements are met. According to the person who made

the remark, there is potential in the supply of rum, wood, etc. and the question raised was: what are the

financial possibilities within the EPA to support new products to enter the Eu market and the amounts

available for the government and private sector to achieve this?

The Eu representative acknowledged that the “benefits” they referred to, should be understood as

opportunities, but was also quick to say that it will depend on the implemented policies in suriname

to what extent the opportunities will really be transformed into benefits. he took rice as an example,

whereby suriname and guyana had equal opportunities under the Cotonou Agreement to supply the

Eu market, but “did suriname took as much advantage as guyana from this opportunity? no, since

suriname was hampered by local obstacles it could not solve”.

Concerning the financial support, the Eu representative declared that this will not depend on the

successes of the EPA, but that funds will be available for regional programs and integration and, that

beyond the EPA pledges, additional assistance will be available (i.e. Aid for Trade and EDF).

11 similar questions or questions raised more than once have been summarized. Questions were cued first and then the presenters and representatives of MTI had the opportunity to react. not all questions were answered, but for completeness they have been mentioned in this report.


Png made the remark that the EPA framework is based on the premise that if trade and investment are

liberated, this will automatically result in development, but questioned whether this framework was the

proper one to achieve this. Will this framework bring industrial and agricultural development behind a

wall of domestic Eu barriers; currently within agriculture barriers still exist. Will we be able to compete

with an economic partner that has attained a high level of technological development, has controls a

large market share and has a great negotiating position at its disposal?

With respect to cooperation, which is captured under various chapters in the EPA, Png pointed out that

this issue is expressed only in terms of “best endeavors”, and do not offer the possibility to challenge

the Eu if the intended cooperation is not met.

Concerning additionality and conditionality of Eu financial assistance, Png said that these do not

really present additional new resources, but that existing EDF resources have been channeled to the

agreement, while the conditions to access the resources have been expanded. For this assertion, he

referred to the “Regional Indicative Program”.

Questions were asked about the market access for goods, specifically in what ways the EPA has been

an improvement in that area. It concerned Customs certificates, such as the ATA carnet, insurance of

freight to Fg and new regulations with respect to the economic zone. The inquirer wanted to know to

what extent Customs certificates will still be applicable and if the insurance for freight will become

cheaper with the EPA. The inquirer also wanted to know if the EPA has accomplished that suriname can

gain increased advantages out of the economic zone. A question frequently posed was, what should be

done to turn opportunities into advantagesl.

Another question concerned the implementation of the EPA, while, according to the inquirer, the EPA

has not yet been notified at the WTo. The inquirer also referred to the fact that Brazil raised an objection

at the WTo against the MFn Clause in the EPA.

With regard to the carnets and the insurance, Mr. vahl stated that these regulations fall outside the

EPA. Entrepreneurs will need to take these respective regulations into account when trading with the

Eu. Concerning the economic zone, the Eu representative indicated that the current Rules of origin is

much more liberal than the one under the lomé or Cotonou agreement.

Mr. vahl reacted to the question to what extent the protest lodged by Brazil with regard to the MFn

Clause, was a violation of the WTo rules. he stated that this Clause is not discriminatory to future

trading partners of the CF and that the EPA, as stated earlier, has incorporated enough safeguards to

protect the domestic markets of CF countries.

Png gave a reaction on the implementation of the EPA and the approval by the WTo, saying that the

EPA can be implemented on a provisional basis and that it is not in conflict with WTo rules. With


respect to the discriminatory character of the EPA, based on the MFn Clause, Png said that this Clause

is not in conformity with the gATT, where a special and Differential provision is observed to protect less

developed countries. The MFn Clause is undermining the freedom of CF countries to conclude FTAs

with other partners, especially within the framework of the south-south relationship.

Mr. vahl reaction was that “the Eu needs to protect its interests”12M

Remarks were also made concerning services and investments. Eu representatives confirmed that this

part of the agreement is indeed very “conditional”; depending on a number of requirements, to be met,

but they also contended that the level of these requirements are much lower than in any other FTA. They

reiterated the provision of temporary entry of natural persons, which was dubbed “exceptional” and

“unequalled”. For some sectors a number of entry requirements have even been removed to enlarge

market access. But still, market entry is not easy in the Eu compared to the CF market.

The agreement on services and investment also concerns new market access for the CF if the potential

is available. The commitments of the CF countries are meant to attract (Eu) FDI and to draw advantage

of local potentialities. Although the Eu representatives acknowledged that market access does not

necessarily mean market presence, they indicated that a platform exists to negotiate about issues and

that it is possible to cooperate with the Eu to establish a regulatory framework to make it happen.

They also reiterated that with regard to services and investment “national Treatment” has been agreed in

the EPA (Article 68). This entails that CF and Eu countries will provide the same treatment to each other’s

establishments/natural persons as they would have extended to their own domestic establishments/

natural persons. some differences are allowed, but they should not be such that conditions regarding

competition are amended such that it would defer an advantage to domestic establishments/natural

persons (Art.68, parts 2 and 3). however, in case such would manifest, it still does not mean that the

“disadvantaged party” would be compensated for any possible injury/damage (Art.68. part 4).

12 The matter concerning the MFn Clause in the EPA agreement en the reactions within the WTo, can be read in endnote M.


3. mARKEt AccESS foR gooDS

Market access for goods was covered by 2 presentations from staff members of MTI; one focusing on

the negotiations regarding goods, the results and the baskets of goods, and the other focusing on Roo.

Roo and negotiations on market access for goods go hand in hand, since Roo define which import

goods are agreed upon and the conditions to which these goods are allowed to enter: from which

country and what tariff should be applied. The part on market access for goods was covered by Ms.

yvette Rokadji, llC and Mr. Paul soebai, Msc and the part on Roo by Ms. Patriciën Bisoen, Msc.

3.1 mR. YvEttE RoKADJI AnD DRS. PAUl SoEBAI: EPA, mARKEt AccESS foR gooDS13

Market access concerns international trade that goes in both directions: exports from CF to the Eu and

vice versa. Exports from CF to Eu enjoy DFQF with transitional arrangements for rice and sugar. The

DFQF access is associated requirements to be met with regard to necessary standards and Roo.

starting from 01 january 2010, rice DFQF will be effective. For 2008 and 2009, duty free tariff rate

quotas of 187.000 ton (29% expansion) and 250.000 ton (72% expansion relative to 2007) on export

rice applied respectively relative to 148.000 ton before the conclusion of EPA. Export volumes above

the quota carried a €65/ton levy. Apart from the volume expansion, the quota for rice was also expanded

in qualitative terms: broken rice and whole-grain rice was included. one should not forget though, that

after the quota period has expired, rice products from the CF will meet competition on the Eu market

from other rice exporters, with little difference between the Eu price and the world market price.

During the negotiations on market access for agricultural and non-agricultural products, goods from

the Eu entering the CF countries have been categorized into 3 baskets or lists of goods. These are

the “Exclusion list”, the “Phase Reduction list” and the “zero list”. While categorizing the goods in

different baskets, goods on the “negatieve lijst14” have been taken into account. Apart from duties

associated with the different baskets, “other duties and charges” should be reduced and removed

within a 10 year period; they are allowed to be applied in their present form, 7 years after conclusion

of the EPA, but should be reduced to zero in the following 3 years15. These “other duties and charges”

concern statistical Rights, Consent Rights and similar charges.

All lists of goods have been compiled in consultation with the private sector and relevant ministries.

This took place through regular network sessions, both before and after TWgs. The “zero list” contains

all import goods that all allowed to enter on a 0% duty (duty free). The “zero list” contains goods that,

for a large part, already carried a 0% duty before the EPA negotiations were set in motion, and also

13 Parts of the text is exerpted from “ACP-Eu Trade Issues in the Rice sector”, Agritrade Executive brief, june 2009. CARIFoRuM EPA negotiations: an initial reflection, junior lodge, Technical Coordinator, EPA negotiations at the CRnM.

14 The negative list is a list of import and export goods for which a license is mandatory.15 Every CF country has the right/possibility to reduce “other duties and charges” to zero before the scheduled deadline as agreed.


includes inputs for production. The “Phase Reduction list” contains goods that will be reduced in tariff

over various time periods. The phased reduction allows domestic industries time to gradually adjust

the quality, price, standards and marketing of their products to at least that of the imported goods as

to avoid falling into a sudden disadvantageous position. Most of the goods on this list are goods not

produced in suriname, for instance: products manufactured with highly advanced technologies, goods

mostly produced through chemical compounds/couplings/divisions such as salt and acid.

The “Exclusion list” contains goods, which are not subject to tariff reduction. The underlying assumption

was the protection of domestic production, safeguarding competition edge, but also protection of

employment, rural development and other supply companiesn.

During the presentation, Mr. soebai explained the commitments of suriname with respect to goods and

how the various trade liberalization tariff lists for CF countries should be interpreted16.

Pagina 23 van 90


marketing van hun goederen geleidelijk aan die van de import aan te passen, zodat zij niet plotselingin een nadelige positie komen te verkeren. Het zijn producten die niet in Suriname wordengeproduceerd. Enkele voorbeelden zijn: producten vervaardigd met vrij hoog geavanceerdetechnologie, producten die meestal middels chemische verbindingen/koppelingen/scheidingen zijnvoortgebracht. Verschillende zouten en zuren. De “Exclusion List” omvat goederen welke niet aantariefvermindering onderhevig zijn. De achterliggende gedachte was bescherming van debinnenlandse productie, veiligstelling van de concurrentiepositie, maar ook behoud vanwerkgelegenheid, rurale ontwikkeling en andere toeleveringsbedrijvenN.

Tijdens de presentatie gaf drs. P. Soebai uitleg van de verplichtingen van Suriname m.b.t. goederenen hoe de verschillende tarieflijsten voor handelsliberalisatie voor CF gelezen dienen te worden24.

Als voorbeeld van hoe de goederentabel te lezen en een “Zero List” product van Suriname te vinden,het volgende. De tarieflijn met 6 cijferige HScode 0103.91: “Levende varkens met een gewicht vanminder dan 50 kg” geeft aan dat voor deze productgroep een fasereductie is overeengekomen, dieop 01 januari 2009 bij een importtarief van 40% begint, op 01 januari 2011 naar 35% moet zijngebracht, op 01 januari 2013 naar 29% enz., en per 01 januari 2017 en verder dient een tarief van17% te gelden. Deze productgroep bestaat uit 1 product en 1 subproductgroep t.w.:

0103.91.10, “Levende varkens met een gewicht van minder dan 50 kg, speciaal voor hetfokken”, en

0103.91.90, “Andere”; alle andere levende varkens met een gewicht van minder dan 50 kgdie niet tot 0103.91.10 horen.

Suriname heeft product 0103.91.10 niet op de gefaseerde reductielijst geplaatst maar op denultarieflijst (“Zero List”). Als onder de tarieflijncode 0103.91, de lijst van landencodes wordt

24 Voor een gedetailleerd overzicht wordt naar “Appendix 1 to Annex III Schedule of tariff liberalisation of theCARIFORUM States” van de EPA overeenkomst verwezen. Alle Appendici, Annexen en Protocollen vormen deelvan de EPA overeenkomst.

Appendix 1 to Annex III Schedule Tariff Liberalisation CARIFORUM StatesDescription 1/01/ 1/01/ 1/01/ 1/01/ 1/01/ 1/01/

2009 2011 2013 2015 2017 2018

Voorbeeld Zero List0103.91 Live Pure-Bred Swine, Weighing < 50 Kg

(Excl. Pure-Bred For Breeding)40 35 29 23 18 18

ATG 0103.91.10 For breeding. 0 0 0 0 0 0BEL 0103.91.10 For breeding. 0 0 0 0 0 0BRB 0103.91.10 For breeding. 0 0 0 0 0 0DMA 0103.91.10 For breeding. 0 0 0 0 0 0DOM 0103.91 0 0 0 0 0 0GRD 0103.91.10 For breeding. 0 0 0 0 0 0GUY 0103.91.10 For breeding. 0 0 0 0 0 0HAI 0103.91 0 0 0 0 0 0JAM 0103.91.10 For breeding. 0 0 0 0 0 0KNA 0103.91.10 For breeding. 0 0 0 0 0 0LCA 0103.91 0 0 0 0 0 0SUR 0103.91.10 For breeding. 0 0 0 0 0 0TTO 0103.91.10 For breeding. 0 0 0 0 0 0VCT 0103.91.10 For breeding. 0 0 0 0 0 0

To demonstrate how the goods table should be interpreted/read to find a product of suriname on the

“zero list”, the following example is used. The tariff line with 6-digit hscode 0103.91: “live Pure-Bred

swine, Weighing < 50kg” indicates the for this product phase reduction has been agreed, starting with

an import tariff of 40% on 01 january 2009, reduced to 35% on 01 january 2011, reduced to 29% on

01 january 2013 and from 01 january 2010 and beyond the tariff should be 17%. This product group

consists of 1 product and 1 sub product group, as follows:

• 0103.91.10,“LivePure-BredSwine,Weighinglessthan50kg,specificallyforbreading”,and

• 0103.91.90,“Others”;allotherliveswineweighinglessthan50kgnotincluded0103.91.10.

16 For a detailed overview, refer to “Appendix 1 to Annex III schedule of tariff liberalization of the CARIFoRuM states” of the EPA agreement. All Appendices, Annexes and Protocols are part of the EPA agreement.


suriname has not placed the product 0103.91.10 on the “Phased Reduction list, but on the “zero

list”. Running down the list of country abbreviations under the tariff code 0103.91, one comes across

“suR”, which stand for suriname, and can derive that for the product with tariff line number 0103.91.10

the agreed import tariff of 0% will be applied. From the list it can also be discerned that various CF

countries also have this product on their “zero list”. however, for all other products categorized under

0103.91, such as 0103.91.90, and imported from the Eu, the agree tariff schedule under the “Phase

Reduction list” should be applied. Currently the CED is applying a 40% duty on 0103.91.90.

Pagina 24 van 90


afgelopen, vindt men die van Suriname (“SUR”) en daar staat dat voor het product met tarieflijn0103.91.10 een overeengekomen importtarief van 0% zal worden toegepast. Uit de lijst valt ook opdat verschillende CF landen dit product ook op hun nultarief lijst hebben staan. Echter voor alleandere producten die onder tarieflijncode 0103.91 vallen, zoals 0103.91.90, en door Suriname uit deEU geïmporteerd zullen worden, dient wel het overeengekomen gefaseerde reductieschema teworden toegepast. Momenteel past de Douane een tarief van 40% op 0103.91.90 toe.

Een voorbeeld van een product op de gefaseerde reductielijst van Suriname betreft productgroepmet HS tarieflijncode 0510.00; “Grijze amber, bevergeil, civet en muskus; Spaanse vlieg; gal, ookindien gedroogd; klieren en andere stoffen van dierlijke oorsprong, die worden gebruikt voor hetbereiden van farmaceutische producten, vers, gekoeld, bevroren of anderszins voorlopiggeconserveerd”. Rechts van de omschrijving van de code in de tabel, geldt vanaf 01 januari 2009 eennultarief. Echter heeft Suriname deze productgroep op de gefaseerde reductielijst geplaatst (zierechts van “SUR”) te beginnen bij het huidige importtarief van 5% per 01 januari 2009 en die steedsmet 1% per afgesproken periode naar 0% per 01 januari 2018 af te bouwen.


2009 2011 2013 2015 2017 2018

Voorbeeld Phased Reduction List0410.00 Turtles' Eggs, Birds' Nests And Other Edible

Products Of Animal Origin, N.E.S.40 32 23 14 5 0

Voorbeeld Phased Reduction List 20510.00 Ambergris, Castoreum, Civet And Musk;

Cantharides; Bile, Whether Or Not Dried; Glands And Other Animal Products Used In The Preparation Of Pharmaceutical Products, Fresh, Chilled, Frozen Or Otherwise Provisionally Preserved

0 0 0 0 0 0

BEL 0510.00 5 4 3 2 1 0

BHM 0510.00 30 24 17 10 4 0

DMA 0510.00 5 4 3 2 1 0

GRD 0510.00 5 4 3 2 1 0

KNA 0510.00 30 24 17 10 4 0

SUR 0510.00 5 4 3 2 1 0

VCT 0510.00 5 4 3 2 1 0

An example of a product on the “Phased Reduction list” of suriname concerns the product group with

hs tariff line code 0510.00: “Ambergris, castoreum, civet and musk; cantharides; bile, whether or not

dried; glands and other animal products used in the preparation of pharmaceutical products, fresh,

chilled, frozen or otherwise provisionally preserved”. Right of the description of the code in the table,

a zero tariff applies from 01 january 2009. however, suriname has placed the product group on the

“Phased Reduction list” (refer to the right of “suR”), starting with the current import duty of 5% on 01

january 2009, which will be reduced by 1% per agreed period to 0% by 01 january 2018.


Pagina 25 van 90


Op deze “Exclusion List” komen productgroepen voor waarvan het huidige importtarief binnen deEPA op hetzelfde niveau zal blijven, tenzij in een toekomstige FTA met een andere partner buiten deEU, andere afspraken gemaakt worden25. Natuur honing (0409.00) blijft op 40%. Producten onder0207 (Vlees en eetbare slachtafvallen van pluimvee, vers, gekoeld of bevroren) waarvan 0207.11(niet in stukken gesneden, vers of gekoeld), 0207.12 (niet in stukken gesneden, bevroren) en0207.13 (delen en slachtafvallen, vers of gekoeld) blijven op 10%.

3.2 DRS PATRICIËN BISOEN: RULES OF ORIGINBij de presentatie over RoO zijn behandeld wat onder RoO verstaan moet worden, waarom RoO zobelangrijk zijn bij de onderhandeling over goederen, en aan welke voorwaarden aan de basis van desamenstelling van RoO liggen.

RoO worden gedefinieerd om eenduidig de herkomst van een bepaald product vast te stellen,m.a.w. welk land heeft betreffend product voortgebracht. Deze regels behelzen voorwaardenwaaraan voldaan moet worden om de herkomst van een product vast te stellen.

Oorsprongregels zijn in het geval van een economisch samenwerkingsverband van belangvanwege de voordelige invoertarieven die onderling worden afgesproken en toegepast, vooralindien invoerrechten komen weg te vallen. Er moet – omdat er een groot fiscaal belang speelt –kunnen worden vastgesteld of een goed uit een gebied afkomstig is waarmee hetsamenwerkingsverband is aangegaan. Indien de RoO dat niet zouden kunnen vaststellen, danbestaat de mogelijkheid dat producten van landen buiten de overeenkomst tegen gereduceerdetarieven het land binnenkomen, welke tot oneerlijke concurrentie en verlies vanoverheidsinkomsten zal leiden.

25 Resultaat overeengekomen MFN Clausule in de EPA.


2009 2011 2013 2015 2017 2018

Voorbeelden Exclusion List0409.00 Natural Honey Excl Excl Excl Excl Excl Excl0207.11 Fresh Or Chilled Fowls Of The Species Gallus

Domesticus, Not Cut In PiecesExcl Excl Excl Excl Excl Excl

0207.12 Frozen Fowls Of The Species Gallus Domesticus, Not Cut In Pieces

Excl Excl Excl Excl Excl Excl

0207.13 Fresh Or Chilled Cuts And Edible Offal Of Fowls Of The Species Gallus Domesticus

Excl Excl Excl Excl Excl Excl

on the “Exclusion list” product groups are placed of which the current import tariff will remain

unchanged in the EPA agreement, unless in a future FTA other commitments are made with another

partner outside the EPA17. natural honey will remain on 40%. Products under 0207 (Meat and edible

offal, of the poultry of heading 01.05, fresh, chilled or frozen) of which 0207.11

3.2 mS. PAtRIcIËn BISoEn, mSc: RUlES of oRIgIn

In this presentation was captured what should be understood by Roo, why Roo are so important in the

negotiations on goods, and which provisions underlie the composition of Roo.

Roo are defined to univocally establish the origin of a certain product, in other words: which country

has produced the good in question and does it meet the stipulated requirements. The rules comprise of

a number of requirements that should be met to qualify as originated in the country of export.

Within the framework of an economic cooperation, Roo are of importance due to the favorable import

tariffs mutually agreed and applied, especially when import duties are removed. Due to the great

importance of the fiscal interest involved, one should be able to establish if a good originated in a

partner’s country/area for which a trade agreement exists. If Roo were not defined and established, the

possibility could occur that products of countries outside the trade agreement would enter a partner

country at the reduced/or zero tariff rate, leading to unfair competition and the loss of government

revenues.

17 Result as agreed MFn Clause in the EPA.


The mechanism for applying Roo depends on the following basic principles:

A. Composition of the rules:

• WhollyProduced;theproductshouldentirelybeproducedinthepartnercountry.Forinstance,

rice, should be cultivated, harvested and processed in suriname before being exported to the

Eu/before Eu will allow it to enter its market.

• NotWhollyProduced/x%(ProtocolI,AnnexII18). For example: under tariff code 2006 are

listed “vegetables, fruit, nuts, fruit-peel and other parts of plants, preserved by sugar (drained,

glace or crystallized). If the inputs (vegetables, fruit, nuts, fruit-peel and other parts of plants)

are manufactured such that the value of any materials of Chapter 17 (sugar) used does not

exceed 30% of the ex-works price of the product, the product is classified as originating in

the country of export. In other words, if the value of sugar in the preserved final product does

not exceed 30% of the product at the gate, than the final product is qualified as a product

originating in the country of export.

• Changeintariffcode:ifafinalproductfallsinanotherHScategorythanthatofthecomposing

elements it’s made off, that final product meets the agreed definition of Roo. For example,

a painting is a combination of the products canvas and paint, transformed into a work of

art by the artist. The tariff line for canvas is 5208.21.90, for paint 3213.90.00 and for the

painting 9701.10.10. The final result, the painting, falls in another category as the composing

elements, therefore meeting this requirement of the Roo definition and can thus be classified

as a product originating in the country of export even if the composing elements, canvas and paint, are imported from countries outside the agreement.

B. Proof of origin: the Certificate of origin serves as proof that respective goods are indeed stemming

from a partner country. This is to certify that the goods have been produced in that country. In the

EPA it has been agreed that the CED is the authority to issue the Certificate of origin, as well as

verifying the authenticity of the certificate of imported products.

C. investigation afterwards: if the CED has doubts about the certificate submitted at import, the CED

inquires where the product originated, and the origin of the product is again investigated.

3.3 IR. REnÉ vAn ESSEn: ImPlIcAtIonS, BEnEfItS AnD RISKS fRom thE PRIvAtE SEctoR

AS RESUlt of thE EPA

The presentation by Mr. van Essen punctuated the concerns of the private sector, against the background

of a dual economy that, one the one hand, depends heavily on the extractive mineral sector, which is

labor-saving in nature and mostly managed by multinationals, and, on the other hand, local industries

which are not very diversified and needs time, innovative technologies, policy and financing to be able

to compete on both the domestic and Eu market.

18 Concerning the Definition of the Concept of “originating Products” and Methods of Administrative Cooperation.


De vsB vertegenwoordiger haalde vier punten aan om het concurrentievermogen van het lokale

ondernemerschap te verbeteren:

1. Diversification of the assortment of products, specifically geared towards exports. It will be

necessary to conduct serious sector and sub-sector feasibility studies on local, regional and

international markets;

2. Improvement of the business environment on various levels. In a cross-cutting way, policy need to

be increased with regard to education, technical training, increase in productivity and monitoring,

creation and maintenance of employment (decent work), but most of all the availability of financing.

on the company/working level, new innovative technologies need to be studied and introduced,

improvement of the managment skills and skills development of employees on various levels.

on sectoral level, cooperation of entrepreneurs in clusters/networks to reduce costs to exploit

economies of scale. on national level, policy to reduce the cost to do business (energy, financial

provisions, telecommunication, transport), but also the reduction in time needed to establish a

business (business licenses) en improvement of the physical infrastructure (which has relatively

improved). on regional level the unit value cost of transport (air, see and land transport) need to be

reduced;

3. Special programs to improve doing business, especially for SmE’s and mE’s, without excluding

larger multinational companies (investment and service provision);

4. optimal use of international institutions for social dialogue with the EPA and beyond.

The achieve the above and in relation to point 4, reverence was made to the importance of the CARICoM

Regional Indicative Program (CRIP), the national Indicative Program (nIP) and the resources from the

10th EDF of approximately € 165 m. These programs and resources should be intensively tapped to

assist the domestic private sector to integrate within and beyond the EPA. The allocation of the EDF

resources and everything else available with regard to EPA should be a real and true expression of the

commitments made under this agreement 19.

Furthermore, due to the reciprocity and the opening of the Eu market for professionals, the danger for

migration of scare human resources has been emphasized.

Based on his experience, the vsB representative could not restrain himself from being skeptical about

transforming opportunities into advantages. As such he stood still at the following points:

1. Does the political will exist within the government to introduce the necessary reforms on the fiscal

and administrative level and is the government willing to protect its domestic private sector if

necessary?

2. how will the economy be diversified without financial resources: donor assistance has terminated

(Dutch Treaty Funds) and domestic savings fall short?

19 Png had already indicated that apart from the € 165 m, everything else beyond that has been expressed in “best endeavor” terms than in terms of clear commitments.


3. how can the competitive edge of products be improved?

4. What will be done to improve the investment and business environment on all levels?

With these core questions, Mr. van Essen concluded his presentation.

3.4 DRS. JEAn DJASmAn: EPA, tRADE In SERvIcES20

The introduction by Ms. Djasman started with explaining the different modes in which a commercial

service can be offered on the market and how this categorization into modes is used during negotiations.

After this introductions, the different market access commitments from the CF to the Eu were discussed,

including the phasing of the CF services market and the terms to enter the CF, but most importantly, to

enter the Eu market. At the end of the presentation, the cultural cooperation was examined.

Within international trade, services are categorized into 4 types, , according to the way in which the

service is delivered/offered, the so-called “modes of supply”. These 4 modes of supply are:

Mode 1 - “cross- border supply”: the service is provided across the borders of countries. The service

provider delivers the service from country A to the consumer in country B, for instance international

telephone/internet services.

Mode 2 – “consumption abroad”: the service is consumed in a country other than that of the consumer.

The service is provided in county A to a consumer from country B, for instance tourism.

Mode 3 - “commercial presence”: the foreign service provider establishes his service in the country

where it will be provided. service provider from county A establishes a business in country B, for

instance a bank or international school21.

Mode 4 - “presence of natural persons”: natural persons leaving their country to provide a service in

another country, for instance fashion models, consultants, etc.

During the negotiations, suriname immediately liberated a number of services sectors and attached

“restrictions” to a number of others by liberating them on a certain period in the future and other that

will remain closed.

An number examples of services sectors that have immediately been liberated are TouRIsM AnD

oThER sERvICEs ThAT ConCERn TRAvEllIng, (such as hotels, restaurants, travel agencies, tour

operators), AIR TRAnsPoRT (automated reservation systems, maintenance and repair of airplanes), 20 De opsomming van diensten die door suriname en de Eu vrij zijn gegeven, zijn in dit verslag niet uitputtend. Daarvoor wordt naar Annex Iv van de

EPA verwezen.21 RBTT is een voorbeeld van mode 3, “commercial presence”.


TElECoMMunICATIon, FInAnCIAl sERvICEs (re-insurance), PRoFEssIons (auditors, accountants,

tax agents, medical doctors, dentists, neurosurgeons, cat-scan services, veterinarians, midwives

and nurses), sERvICEs RElATED To IMMovABlE’s, EDuCATIon, hEAlTh CARE AnD soCIAl

sERvICEs.

services of which entry to Eu companies have been associated with a period, are ARChITECTs,

EngInEERs, ConsTRuCTIon InDusTRy AnD CIvIl EngInEERIng, of which buildings and

civil engineering works (01 january 013), PhysIo-ThERAPy AnD PARAMEDICAl PERsonnEl,

InTRAMuRAl hEAlTh CARE AnD oThER sERvICEs oThER ThAn hosPITAl CARE (01 january

2015), CoMPuTER sERvICEs suCh As CoMPuTER ADvIsoRy BuREAus, sERvICEs RElATED To

InsTAllATIon oF soFTWARE, DATA PRoCEssIng, DATABAsEs (01 january 2016), R&D In nATuRAl

AnD soCIAl sCIEnCEs AnD huMAnITIEs (01 january 2018) and EnvIRonMEnTAl sERvICEs such

as waste collection and processing, collection of toxic waste and recycling (01 january 2018).

The Eu has also liberalized a large volume of services including non-services sectors such as

AgRICulTuRE, hunTIng AnD FoREsTRy, FIshERIEs, MInIng oF MInERAls, MAnuFACTuRIng,

PRoDuCTIon, TRAnsMIssIon AnD DIsTRIBuTIon on oWn ACCounT oF ElECTRICITy, gAs,

sTEAM AnD WARM WATER. Also, as indicated earlier, temporary entry of natural persons for business

purposes.

With regard to cultural cooperation, audiovisual arrangements are made whereby audiovisual co-

productions of Eu and CF producers will be qualified as Eu productionso.

3.5 Ing. wIlgo BIlKERDIJK: ImPlIcAtIonS, BEnEfItS AnD RISKS fRom thE PRIvAtE SEctoR

AS RESUlt of thE EPA

The introduction by the AsFA would have been presented by another person than Mr. Bilkerdijk, still he

was willing, at the last moment, to do the presentation.

The emphasis of the presentation of Mr. Bilkerdijk concerned the risks associated with the

implementation of the EPA and the measures to be taken to protect the private sector; to use his

terminology “safeguards and safety valves”.

The AsFA representative opens his presentation by indicating that his organization is welcoming the

EPA and the different units, such as the EPA Implementation and Coalition of services Industries. he

sees the establishment of an investment code and the proper functioning of a bureau of standards as

foremost conditions for successful participation in the EPA.


The speaker referred to the “lisbon Treaty” to draw attention for the increasing integration of the Eu

and the advanced institutional framework they have erected to protect and expand their interests.

The EPA was characterized as an agreement of unequal partners and the speaker called for an

evaluation, with reference to the period of preferential access into the Eu market whereby 40 of the 48

ACP countries remained poor.

Apart from the worries, the speaker was bold enough to admit that the private sector is not anticipating

enough on invitation and impulses to achieve progress and to position itself better in the market.


SEconD RoUnD of qUEStIonS AnD AnSwERS

A number of general questions were asked about Roo. The audience wanted to know who is issuing

the Certificate of origin (CED) and if a university degree is mandatory for certain professions. The latter

should be researched and is one of the issues not properly detailed in the EPA and where Eu countries

have the opportunity to erect barriers based on the fact that each Eu country has at its discretion the

possibility to maintain their own rules and regulation.

The question was also posed, what the status of the current relationship between the CARICoM and

DomRep is. With respect to goods, it was said that the FTA comprises of a small number of goods on

the “Exclusion” and “Phased Reduction list”. Most goods can enter duty free. Concerning services,

no agreement exists and negotiations have not yet started. Preparatory discussions are ongoing and

suriname still needs to determine a negotiating principle.

The inquirer also wanted to know to what extent with respect to services, the same commitments will

be made to DomRep as has been done in the case of the Eu. The question was answered by saying that

this could be a possibility, but that it was also possible to offer more22.

Question relating to the temporary presence of natural persons regarded the relationship between the

agreement and the Eu immigration policies, and does access to personal insurance and residence?

The answer to this question was that the normal immigration laws and other regulation with respect to

residency, insurance, etc. applies and that, apart from the requirements in the EPA, also these would

need to be met to enter the Eu market. The agreement does not foresee in special provisions for issues

outside of trade. The reaction from the audience was that if one meets all requirements as stipulated

in the agreement, but can still not enter the Eu market based on immigration rules, the agreement is

in fact of little value.

During the seminar the remark was also made that the private sector did not indicate bottlenecks,

for instance in the agricultural, transport and construction sector and that this was experienced

as disappointing. The question was asked, if prior to concluding the EPA, the private sector had

commissioned in-depth studies and analysis of sensitive sectors? The question was substantiated by

indicating that when the CRnM was in suriname to learn from the standpoints and needs of the private

sector, there was little contribution and effort to be noticed.

staff member of MTI recalled that prior to EPA, in 2005, MTI commissioned a study, of which the

analysis of possible implications, and which sectors had potential, sWoT analysis of the surinamese

economy as well as threats and opportunities 23.

22 The question was also raised if a separate agreement should be concluded with DomRep if they are also partner in the EPA agreement. This question has already been answered and included in the text of this report.

23 METRA Economic Consulting, suriname, Capacity Building in support of the Preparation of the Economic Partnership Agreement, Technical Assistance to the Ministry of Trade and Industry (8 ACP TPs 110 – EPA # 059), Paramaribo, December 2005.


The study was financed by the Eu and conducted by METRA Economic Consulting, in cooperation with

PRoPlAnP.

In reply to the question to what extent an evaluation and adjustment period has been included into the

EPA, it was answered by saying that this is formally possible and catered for in the agreement; Article

5 and the “joint Declaration”. of course, each country has the opportunity and even the obligation to

regular and intermittent evaluations24.

The question was raised if the period of phased reduction was occurring every 5 years (with 5 year

intervals). This question was not answered affirmative but illustrated by an example. The next tariff

reduction starts on 01 january 2011, but the reduction is not every 5 years but depends on the basket

which contains the respective good. For instance, for product group with hs code 0501.00, tariff

reduction starts from 01 january 2011, spread over 3 periods of 2 years and 1 period of 1 year. For

0305.62 (cod fish) this is 3 periods of 2 years and 6 periods of 1 year, followed by 1 period of 2 years

before the tariff of zero percent has been reached.

For most of the participants it was clear that finding resources and alternative methods to take as much

advantage as possible, were of utmost importance. Apart from the resources mentioned in the EPA,

“Aid for Trade”, which currently draws a lot of attention and is championed by the WTo, also offers

possibilities. however, many developing countries have voiced their dissatisfaction on various fora with

the long and complex procedures before the resources can be obtained.

The possibilities to network together in regional context and to cluster were also mentioned as

possibilities to efficiently use knowledge, technology, human capacities to cope with competition and

to better prepare for trade negotiations.

24 Dit is ook één van de belangrijkste redenen voor het vestigen van een EPA Implementation unit.


4. cloSIng SESSIon

4.1 SUmmARY SEmInAR chAIRmAn

All presenters and participants were thanked for their efforts and participation. The importance of

the seminar was stressed and the many questions, bottlenecks, uncertainties and anxieties that were

raised. The seminar displayed a good impression of the complexity of the EPA, which clearly surfaced

during the presentations of the Eu representatives and Png. Market access does not automatically

entail market presence and this seminar provided a taste of what is in store for the CF countries in

terms of efforts it will take to establish market presence in the Eu.

The presentations of the Eu representatives and Png were interesting in the sense that those mentioned

first highlighted the advantages and the latter the apparent opportunities should be approached

with a good amount of caution and that more evaluation and studies will be necessary to transform

opportunities into advantages. It will be important to be aware of the implications and that the studies

will assist in making proper preparations.

The presentation provided an impression of the contents of the agreed commitments of suriname to

the Eu by taking into consideration the various lists of goods and the commitments in terms of services

and investments.

More depth was expected from the presentations by the private sector, but the sector also acknowledged

that they have not paid the necessary attention in the past to the EPA negotiations.

The private sector is aware however, that intensive and regular participation is of utmost importance

to transform opportunities into advantages and now has the opportunity to participate within the EPA

Implementation unit and the Coalition of services Industries that will be initiated by MTI.

4.2 cloSIng of thE SEmInAR BY IR. E.P. ISSElt, DIREctoR SURInAmE BUSInESS

DEvEloPmEnt cEntER

After the summary by the seminar chairman, the director shortly presented his impression of how

the seminar progressed and underlined the “fear” of the private sector. he assured that the sBC will

do all in its power to assist and support the private sector, especially with information about current

developments.

The director thanked the presenters, the chairman and the participants for their contributions.


5. conclUSIonS AnD REcommEnDAtIonS

This seminar has been a welcome intervention to assemble the private and public sector, together with

experts of the EPA, into a meeting and discuss the EPA agreement. The important conclusion that can

be drawn from this seminar is that the EPA is a complex and comprehensive agreement that demands

additional study and evaluation to transform the opportunities into advantages and to fully understand

the implications of this agreement on the domestic market, local industries and employment. In

suriname both the private and public sector are not fully aware of these implications. The studies and

evaluation can create a fundament for informed policymaking.

The private sector will have to make more pointed and organized efforts to identify where they are

witnessing opportunities and where necessary measures are needed for protection, if possible.

Even though a number of studies have already been done with regard to implications, it’s important to:

• Evaluate if they are still up to date and to also evaluatewhere the private sector needsmore

information to make policy for the export and domestic market. A number of those studies have also

identified and recommended the institutional framework necessary to make trade policy in a more

coordinated manner. In this vain, the establishment of an inter-departmental trade commission

comes to mind that has not yet been materialized25;

• Studieswherecompaniesinvarioussectors,ifdesiredintheformofclusters,canworktogether

to reduce costs per product, to raise the technological level and share it with the goal to achieve

economies of scale;

• Intensiveparticipation in institute,suchasthe“EPAImplementationUnit”andthe“Coalitionof

services Industries”, which will initially be established by the government and subsequently should

be adopted by the private sector;

• Participationinregionalinstitutesandthecooperationtoestablishthemsothatsimilarinterests,

especially with regard to technology, regional sector policy and regulation can be promoted;

• Theestablishmentofaunitby theprivatesector, in first instancegeared towards theEPA that

can assist with information how to enter the Eu market. This unit should, for example, investigate

what are the different laws, rules and regulations, procedures, standards, forms, institutes that

have to be taken into account to supply a certain good or service on the Eu market. With the

experience generated, this unit could extend this service to other markets such as CARICoM,

DomRep, Canada, etc;

• AunitfocusedontheprotectionpossibilitiesthattheEPAallowsorareavailableforthedomestic

and the Eu market, to protect legal and natural persons against irregularities and, if necessary, to

prepare legal cases26;

• Aunitthatmakespreparations,intheformofprojects,togatherfinancialandtechnicalassistance

25 METRA Economic Consulting, suriname, Capaciteitsopbouw ter ondersteuning van de voorbereiding van de Economische Partnerschap overeenkomst, Technische Assistentie aan het Ministerie van handel en Industrie. (8 ACP TPs 110 – EPA # 059), Paramaribo, December 2005.

Dr. Craig van grasstek, A national Trade strategy for suriname. Washington Trade Reports, 9 june 2006.26 ook de beschermingsmogelijkheden die de WTo biedt, dienen in dit kader begrepen te worden.


for the private sector in general (institutional strengthening) and improvement of competitive edge

of specific sectors. This would be a welcome support for and cooperation with the Ministries of MTI

and Plos, which, among others, have the task to prepare project proposals and should formally

ensure that the resources are available. This would instill the private sector with the knowledge and

skill of the various international assistance possibilities and related procedures and can thus take

more advantage of the available international financial resources. The indicated units could all be

placed under the sBs;

• Toinformtheprivatesector,thegovernmentandthepublicingeneral,thoughmeetings,ofthe

progress, bottlenecks and successes of domestic companies, and the way in which successes

have been achieved and to document these for the future. This could be done by commissioning

research assignment through the university.


APPEnDIx

1. Agenda Seminar

2. Introductions en Presentations

3. curriculum vitaes

4. lijst van Aanwezigen Seminaar

16 december 2009


1. AgEnDA SEmInAR

PRogRAmmE:

seminar: “Economic Partnership Agreement (EPA): Implications for the Development of the Domestic

Private sector”

Date: Wednesday, December 16, 2009

Time: 08.30 – 14.45 hours

location: Conference Room Chamber of Commerce and Industry (kkF), Business Booster Building,

Trade Fair Complex, Prof. W.j.A. kernkampweg 37 - Paramaribo

Chairman: Drs. Imro san A jong

The suriname Business Forum (sBF) and the suriname Business Development Center (sBC) organizes

a seminar with the purpose to enhance the dialog process between the government and the private

sector and to better understand the implications of EPA over the private sector and over the economic

development of the country, as such the seminar will focus on 3 specific issues:

1. Why EPA is important for suriname.

2. What are the implications and impacts over businesses and over the development of the country.

3. how EPA should be implemented: the role of the government and the role of private sector.

AgEnDA:

session 1: opening session

08.30 – 09.15 hours: Registration/test video conference facilities (coffee/juice/snack)

09.15 – 09.20 hours: Ir. Ernie P. Isselt – Director suriname Business Development Center:

Introduction

09.20 – 09.25 hours: overview seminar programme – Day chairman- Imro san A jong

09.25 – 09.30 hours: Ing. orlando dos Ramos - Chairman suriname Business Forum: Welcome

09.30 – 09.35 hours: Mrs. Esmeralda hernandez Aragones - Chargée d’Affaires Delegation of the

European union to suriname: speech

09.35 – 09.50 hours: Drs. Clifford Marica - Minister of Trade and Industry (hI): opening speech

‘To explain the reason and goals of this seminar: engagement of suriname in

the context of the signed EPA agreement’


session 2: video conference overseas presentations

09.50 – 10.30 hours: Presentations EC Brussels - Mr. Remco vahl.: ‘The Caribbean EPA: outcomes

and opportunities for suriname’

10.30 – 10.50 hours: Questions and Answers

10.50 – 11.30 hours: Presentation uWI Port-of-spain – Prof. norman girvan: ‘What are the

constraints that EPA represents and what are the implications in joining this

economic partnership agreement’


12.15 – 12.40 hours: Coffee break

session 3: Implications and discussions

12.40 – 13.15 hours: Presentations hI:

Mrs. yvette Rokadji llM / Drs. Paul soebai: ‘The EPA: Market access for goods’

Drs. Patricien Bisoen: ‘Rules of origin’

13.15 – 13.25 hours: Presentation Director suriname Trade and Industry Association (vsB) –

Ir. Rene van Essen: ‘Implications, benefits and risks from the private sector

as result of the Economic Partnership Agreement

13.25 – 13.45 hours: Presentation hI – Drs. jean Djasman: ‘The EPA: Trade in services’

13.45 – 14.00 hours: Presentation Representative Manufacturers Association suriname (AsFA) –

Ing. Wilgo Bilkerdijk: ‘Benefits and risks from the private sector and

implications Economic Partnership Agreement (EPA-CF-EuRoPEAn unIon)’


session 4: Closing session

14.30 – 14.40 hours: summary

14.40 – 14.45 hours: Director sBC – Ir. E.P. Isselt: Thanks / Closing

14.45 hours: snacks


2. IntRoDUctIonS AnD PRESEntAtIonS

InlEIDIng IR. ERnIE P. ISSElt, DIREctEUR SURInAmE BUSInESS DEvEloPmEnt cEntER

Seminar

“Economic Partnership Agreement (EPA): Implications for the Development of the Domestic Private sector”

Introductie

Dames en heren

goedemorgen,

Mijn naam is Ernie Isselt en ik ben directeur van het suriname Business Development Center de

werkarm/ executive office van het suriname Business Forum.

Een hele korte introductie van dit evenement alvorens de leiding over te dragen aan de dagvoorzitter

drs Imro san A jong.

suriname zal moeten deelnemen en integreren in de Wereld Economie en wij moeten naar wegen

zoeken om voordelen te halen uit dit integratieproces.

De World Trade organization geeft de richting aan langs welke normen, standaarden en voorwaarden

zo een integratie in de wereld economie moet plaatsvinden

Een Economic Partnership Agreement is een overeenkomst welke het suriname mogelijk maakt cq een

manier biedt om te integreren en wel specifiek met Europa en om dus ook (economisch) deel uit te

kunnen maken van dit werelddeel.

EPA heeft zowel voordelen als nadelen of kosten of een prijskaartje voor onze Domestic Private sector

De Domestic Private sector wenst echter voorbereid te zijn voor dit soort overeenkomsten en kijkt

uit naar methoden om haar deelname in dit integratie proces te vergroten door haar concurrerend

vermogen te ontwikkelen.

De lokale Private sector kan dit niet alleen doen en heeft de ondersteuning nodig van de overheid voor

dit integratie proces in de wereldeconomie, door het vestigen van instituten, het maken van wet en

regelgeving etc die deze committering ondersteunen.


sBF/sBC organizeren dit seminar met als doel het dialoog proces tussen de overheid en de private

sector te verbeteren en om de consequenties van EPA voor de private sector en voor de economische

ontwikkeling van het land beter te begrijpen; dit seminar zal daarom focussen op 3 specifieke

aandachtspunten:

1. Waarom is EPA belangrijk voor suriname

2. Wat zijn de gevolgen en de invloeden op het bedrijfsleven en op de ontwikkeling van het land

3. hoe zou EPA geimplementeerd moeten worden: de rol van de overheid en de rol van de private

sector.

Ik geef de leiding hierbij over aan de dagvoorzitter de hr. drs. Imro san A jong.

Paramaribo, 16 december 2009


oPEnIngStoESPRAAK vAn DE mInIStER vAn hAnDEl En InDUStRIE, DRS. c.P. mARIcA27

Concept Toespraak van de Minister van handel en Industrie

dhr. drs. Clifford P. Marica

bij de opening van het seminar van de suriname Business Development Center (sBC): Economic

Partnership Agreement (EPA): Implications for the Development of the Domestic Private sector

Woensdag 16 december 2009 09.15 uur

kkF Beurshal

Directeur van de suriname Business Development Center Ir. Ernie P. Isselt, voorzitter van de suriname

Business Forum Ing. orlando Dos Ramos, Chargee d’Affaires van de Delegatie van de Europese unie in

suriname Mrs. Esmeralda hernandez Aragones.

geachte aanwezigen, ook van mijn kant een van harte goedemorgen.

Als Minister van handel en Industrie die belast is met de internationale handel en onder meer de

implementatie van de Economic Partnership Agreement, is het voor mij een waar genoegen om vandaag

dit zeer belangrijk seminaar van de suriname Business Development Center getiteld “EPA: Implications

for the Development of the Domestic Private sector” te openen.

De EPA tussen de CF landen en de Europese gemeenschap, is een omvangrijke overeenkomst, waar

niet slechts de handel in goederen, diensten en daaraan gerelateerde handels, wettelijke en institutionele

zaken zijn opgenomen, maar ook is opgenomen een overkoepelend ontwikkelingshoofdstuk dat

ondersteuning zal bieden aan deze onderwerpen en het regionale CARICoM integratieproces.

nu de EPA in de ratificatie fase zit, valt het mij op dat de kritiek op de EPA enorm groot is. Men zou

kunnen stellen dat de EPA een zeer hete start meemaakt. De kritiek op de EPA komt vanuit alle hoeken

van de samenleving en is natuurlijk goed en constructief, omdat het ons alert maakt op de mogelijke

dreigingen die kunnen voortvloeien uit de EPA.

Maar, de kritiek moet ook niet gebaseerd zijn op angst en onwaarheden, daarom zijn wij hier vandaag

de dag om duidelijkheid hierin te brengen.

27 De werkelijke toespraak van de minister kan op enkele plaatsen verschillen van de feitelijke tekst die door het ministerie als toespraak van de minister is aangeboden.


suriname heeft sinds het begin in 2005 actief geparticipeerd aan de onderhandelingen. voor deze

onderhandelingen hadden wij de input nodig van het bedrijfsleven en er zijn daartoe vele nationale

consultaties gehouden. Deze onderhandelingen zijn definitief afgesloten op 16 december 2007, waarna

de ondertekening van deze overeenkomst plaatsvond op 15 oktober 2008 in Barbados.

heden ten dage, moeten wij ons nu richten op de implementatie van dit handelsverdrag. Dit is

noodzakelijk om de voordelen te halen die de EPA biedt. zoals in elk handelsverdrag zijn er voordelen

en bedreigingen. Met dit verdrag zullen wij ons niet alleen moeten focussen op de voordelen, maar juist

samen werken om de bedreigingen in kaart te brengen en het hoofd te bieden.

vanwege de omvangrijke aard van de EPA en de eveneens talrijke Implementatie Issues, is er een

“Implementation Roadmap” ontwikkeld die binnen een tijdschema alle implementatie punten tracht te

identificeren en uit te voeren.

om het implementatie proces te coördineren en te monitoren, heeft het MhI reeds initiatieven ondernomen

om een EPA Implementatie unit op te zetten. Deze unit zal zich primair richten op het toezicht op de

implementatie van de internationale verplichtingen van suriname binnen de EPA op nationaal niveau.

verder zal deze unit in dat kader de communicatie en coördinatie tussen overheidsinstanties en de

private sector, die verantwoordelijkheid zijn voor de ontwikkeling en uitvoering van het handelsbeleid,

bevorderen.

Deze Implementatie unit zal bestaan uit vertegenwoordigers van de Ministeries van handel en Industrie,

Financiën, Planning en ontwikkelingssamenwerking, landbouw, veeteelt en visserij, justitie en Politie

en de organisaties, AsFA, vsB en kkF.

naast voornoemde taken en verantwoordelijkheden is één van de belangrijkste taken van deze unit

het ontplooien van publieke bewustwordingsactiviteiten hetgeen onder meer inhoudt duidelijk de

mogelijkheden, uitdagingen en bedreigingen van de EPA aan de gemeenschap in het algemeen en de

private sector in het bijzonder uitleggen.

Tijdens het vorig seminaar van mei van dit jaar dat ook door sBC was georganiseerd heb ik de wens

uitgesproken dat wij gezamenlijk verder gaan werken om ervoor te zorgen dat, dat seminaar niet een

eenmalige activiteit zou zijn, en u ziet het, vandaag zijn wij als ministerie weer hier om samen met de

private sector informatie over de EPA met u te delen.

Ik heb meteen ingestemd om mijn medewerking te verlenen voor het ter beschikking stellen van mijn

staf voor het verzorgen van presentaties en om nadere informatie omtrent de EPA te verstrekken,

omdat dit helemaal past binnen de taken en verantwoordelijkheden van mijn Ministerie, evenals die van

de op te zetten Implementatie unit, namelijk publieke bewustwording.


het MhI heeft zich altijd ingespannen om het bedrijfsleven te faciliteren teneinde continuïteit van

productie en een soepel verloop van het handelsproces te garanderen.

Dames en heren,

Ik wil van deze plaats uit de initiatiefnemers, en allen die hebben bijgedragen aan de totstandkoming

van dit seminaar, dankzeggen voor het goede werk dat zij verricht hebben en natuurlijk zoals altijd

wil ik hen blijven aanmoedigen om op de ingeslagen weg voort te gaan en bouwen aan de verdere

ontwikkeling van het surinaamse ondernemerschap.

Ik wens u allen een succesvol seminaar toe en verklaar hierbij dit seminaar voor geopend.

Dank u.


PRESEntAtIon

outcomes and opportunitiesfor Suriname

Dhr. Remco vahl, fabien gehl, Rico ZampettiEuropean commission


PRESSENTATIE DHR. REMCO VAAHL, FABIEN GEHL, RICO ZZAMPETTI, EUUROPEAN CO

Pagina 42 van 9

OMMISSION

90


Pagina 43 van 990


Pagina 44 van 990


Pagina 45 van 990


SPEAKIng notES noRmAn gIRvAn

SURInAmE: PRoS AnD conS of thE EPA

A. Some introductory points

The EPA is not just a trade agreement. It includes

• Tradeingoods

• Services

• Investment

• Intellectualproperty

• Publicprocurement

• Competitionpolicy

• Labour

• Theenvironment

• Developmentcooperation

• The obligations in labour, the environment and development cooperation are stated in

general terms. liberalisation and rules tend to be quantified and time-bound.

European and Caribbean officials stress the opportunities available from the EPA. In many cases

– e.g. for the export of goods, already existed and for various reasons Caribbean business have

not been able to take significant advantage of them.

In other cases—notably services, the access granted under the EPA is highly conditioned.

The main change in the EPA from what obtained before is reciprocity.

note that no new development assistance has been provided under the EPA. Eu officials have

always insisted on that. What has happened is that funds provided under existing programmes,

notably the European Development Fund (EDF) are being re-allocated to “EPA Implementation”,

at least the regional allocation. The suriname EDFnIP document for 2008-2013, allocates over

88% to the transport sector, as before.

Final general point—remember to take into account knock-on effects of EPA to other trade

relations

• MFNClause-AnythinggiventoBrazil&Mercosur,China,India,etcthatismorefavourable,

the Eu will be entitled to. This cramps south-south Trade agreements; e.g. a CARICoM-

MERCosuR FTA

• SameappliestoCanadaandtheUS.E.g.ifCARICOM-CANADAFTAfreesalltradein10

years, CARICoM will have to give this to the Eu if it asks for it.

• TheDR isalsoentitled toeverythinggiven to theEU in theEPA(‘RegionalPreference’

Clause). so the EPA frees CARICoM-DR trade. not clear what will remain of the CsME after

the EPA is fully implemented.


SURInAmE EconomY (from nIP oct. 08; p. 11)

“The public sector accounts for 40% of gDP. In the mining sector, alumina and gold represent

more than 80% of total exports and 15% of gDP. Beyond the mining sector, a thin layer of

manufacturers produce a small assortment of generally low quality products. As a consequence,

suriname imports mainly consumer goods and almost all intermediate and capital goods. The

service sector, accounting for 45% of gDP, is dominated by trade and transport activities. The

fastest growing services sectors since 1998 have been personal services and transport and

communications. In 2001, financial services overtook trade, restaurants and hotels as the

single most important service activity in the country. The share of agriculture in gDP increased

slightly between 1998 and 2002, from 8.4% to 9.5%. In contrast, the share of manufacturing

in gDP declined steadily over the same period, even though the sector grew in real terms. The

informal sector is also significant and may increase current estimates of gDP by up to 16%

according to the Bureau of statistics.

B. trade in goods

EPA ‘locks in’ DFQF Market Access, except for certain commodities in transitional periods. note that:

suriname’s exports to the Eu, consist mainly of primary commodities. (17% of total exports to

Eu; Caricom (18%) and to nAFTA countries.

suriname has had DFQF access to the Eu for most of its exports or many years under the

lomé and Cotonou agreements. But suriname has not been able to diversify its exports to the

Eu, particularly into higher value goods and services which affords higher living standards for

employees and a higher rate of growth, and greater resilience, for the economy

one reason is that tariffs are not the only barrier to be overcome in a foreign market. For

example, there are Rules of origin, which have to be satisfied for the goods to qualify for

duty-free treatment. The Eu Roo have been criticised in the past as making it difficult for small

firms—the majority of firms in the ACP—to qualify.

o “ the value added thresholds used in the current rules are so much higher than those

typical of commercial firms within poor countries – often twice or three times as high - that

certain lessons can be drawn.” oDI Briefing Paper no 12m, Creating Development Friendly

Rules of origin, p. 7, 2/2008) http://www.odi.org.uk/resources/download/4568.pdf

The Eu had promised to overhaul its Roo for the EPAs to make them simpler. so far it hasn’t

done so. It did however adopt new Roo for Textiles and Clothing; Fish and some Agricultural

Products. “With the exception of textiles and clothing, the changes to the rules do not represent

a major departure” from previous Roo for the majority of EPA and IEPA signature countries

(naumann 3/2008 Ex sum)


Besides Roo there are other “Technical Barriers to Trade”. In food products there are sPs. (see

Annex from the EC website).

CF’s margin of preference is coming down as the Eu negotiates other FTAs with other countries,

e.g. bananas, Central and south America, India.

The general principle here is that Market Access does not guarantee Market Presence. Besides

nTBs such as Roo and TBT, you have to get into distribution networks, advertising, etc. This is

not easy for small firms.

so the most likely result is that where there are some export opportunities suriname firms may

be invited to become junior partners with large Eu firms that are well positioned in distribution

networks. junior partnerships have some advantages, but also disadvantages (the senior

partner has superior bargaining power, can influence distribution of benefits, can substitute

another source when it suits him.)

c. Import competition

Phasing of liberalisation (see Table in Annex).

of the CF countries, suriname starts with one of the lowest percentages of imports from the

Eu duty-free (9%). 9% is to be liberalised in years 3-5; 20% in years 6-10, and 27% in 11-15.

suriname’s exclusion list is about twice the CF average (27%). however this is to be set against

the fact that 91% of existing imports are dutiable; so that dependence on fiscal revenue and

tariff protection is probably higher than most other CF countries.

” There are some surinamese products which are in competition with European imports, such

as rum, beer, wooden furniture, cleaning products, fats, and ice cream. But there is significant

potential to develop a number of areas of the economy (in agriculture, services and industry)

where suriname has a competitive advantage. As for the fiscal impact of an EPA, in 2004

suriname earned us$11.5 million in import duties on goods of Eu origin. This amount is “at

risk” in an EPA by 2012” nIP 16. ??

The infant industry protection that is allowed under the EPA is restricted to industries that

already exist in suriname. you cannot introduce tariffs and quantitative restrictions that do not

now exist—a standstill clause

A development EPA ought to include targeted support to these industries with competitive

advantage that is quantified, time-bound and capable of being monitored and legally enforced,

in the same way that the tariff reductions are.


D. Services and Investment.

A few points

The services aspect of the EPA has generally not received the attention it deserves.

The focus has been on the new opportunities supposedly made available. These opportunities

are highly conditioned (more on this later). And it is equally important to consider the

commitments for liberalisation at home

The commitments are accompanied by detailed rules on the regulation of courier services,

tourism, telecommunications, financial and maritime transport services. These restrict CF

governments’ ability to regulate these industries except for “legitimate” policy objectives,

which could be disputable

Commitments under Mode 3—Commercial Presence—amount to agreement to allow foreign

direct investment in the sectors.

CF countries have agreed to liberalise FDI in several non-service sectors. This needs to be

carefully studied. Again, very little has been said about this.

The EPA has an over-arching ‘standstill” clause on services that prohibits any new restrictions

on market access (cross-border supply and commercial presence) and national treatment of

Eu service firms; even for sectors not committed under the EPA. The only exceptions to this

are for ‘public services’ (the meaning of this is disputable); and where reservations have been

explicitly entered in the schedule of commitments.

In theory, suriname as CF MDC has liberalised 75% of its service sectors as to cross-border

supply and commercial presence (FDI) to Eu service firms

however it is not easy to extract exactly what suriname has committed itself to, and therefore

what level of competition businesses will be exposed to, without a detailed reading of Annex

4:vI of the EPA. The format of Annex 4:vI does not make this easy: it needs to be read in

conjunction with the WTo gATs agreement; and it utilises terms and codes that may be

inaccessible to one unfamiliar with the background.

suriname’s commitments contain several reservations as to access and government policies

that also need to be taken into account

The EPA has a ‘rendezvous clause’ which requires renewed negotiations on services liberalisation

within five years. This means that even where CF states have not liberalised under the EPA; or

entered reservations on liberalised sectors; there will be continued pressure to liberalise

If it has not already done so, The Trade Ministry should probably be asked to prepare and

publish a detailed analysis of suriname’s commitments and their implications

A close reading of suriname’s commitments by an expert in this field came up with this:

• “Phasinginanumberofchangesbetween2015and2018fore.g.physiosandparamedics

(2015), foreign investment in computer and data base services (2016), foreign investment

in R&D from 2018; technical testing and analysis 2018; aspects of construction (2013),;

and range of environmental services (2018); Residential health facilities services other

than hospital services (2015).


• Crossbordercommitmentsarequiteextensive,includingdataprocessing(BPO)anddata

base (may include data storage), investigation and security, primary and secondary private

education, libraries, archives, museums & other cultural services, news agency. some

restrictions e.g. technical testing unbound. not bound for environmental services

• Extensive opening of professional services on market access and national treatment,

including heath care services, accounting, engineering, architecture, urban planning

• Healthsector:Extensiveopeningofprofessionalservicesonmarketaccessandnational

treatment on medical and dental, epidemiology, midwives, nurses, paramedics. Includes

unrestricted cross border provision

• Educationexcludesnon-profit,public&publicly fundedentities.Reasons forvariations

on different education categories are not obvious. not clear why primary and secondary

education are unrestricted for cross border supply, but are for higher education.

• Environmental:unrestrictedFDIphasedinby2018forsewage,refusedisposal,hazardous

waste, waste and waste water management, recycling, subject to technology transfer

requirements.

• Courierservices,unrestricted,crossfertilisestorestrictionsonregulatoryframeworkfor

universal service obligations, cross-subsidisation from postal,

• Telecoms commitments carefully considered on market access, with extensive NT

commitments once Eu enters the market.

• Constructionwideopen.Crossfertilizeswithprofessionalservices(architects,engineers)

• Wholesaleandretailingappearsextensive

• Financialservices,verylimitedEPAcommitmentstoreinsuranceandretrocession

• Tourismunrestrictedinallmodesforhotels,restaurants,travelagencies,touroperators,

etc, meaning can’t restrict any activities for locals. Right of foreign suppliers in airport

related services.

• Entertainmentisunrestrictedfor96191,96194,96195.Newsagencyandentertainment

reserve the right to use EnTs for Css and IP.

• Transport:Detailed limitationsonmaritime, especiallyon foreign investment.Unlimited

commitments on rail and largely unrestricted on road, except FDI in freight road

transport.”

suriname’s investment commitments:

“A “negative list” approach is used for Agriculture, hunting and forestry; Fishing; Mining and

quarrying; Manufacturing. This means that these sectors are open to Eu investment except

where activities are explicitly excluded by suriname’s schedule in the EPA. The following

reservations by suriname are notable.

• Landholding:Foreigncompaniesand individualswishing toholdpropertyneed to first

obtain a licence.

• Investment: Non-residents are required to obtain a permit from the Foreign Currency

Commission to acquire shares in a corporate legal entity.


• Agricultureandhunting:nootherrestrictionsreserved

• Forestryandlogging:Nationalityandresidencyarerequiredtoconductactivitiesinthis

sector.

• Fishing:Theownerofaforeignvesselcanonlyobtainalicenceifafishingtreatyexists

between the Republic of suriname and the state of registration of the foreign fishing

• Mining and quarrying: The State reserves the right to adopt or maintain measures

concerning activities in this sector. The state reserves exclusive rights in the economic

zone, continental plateau and the seabed for prospecting and exploration. Where a license

may be granted for these activities residency is required. All minerals within the territory of

the state of suriname, the territorial sea its bottom and sub-soil as defined in the law are

the property of the state.”

E. Export opportunities in services

Argument that the majority of CF gDP and exports now consists of services and “that is where the

future lies”; and the EPA open up many new opportunities

Most CF services exports are tourism and international financial services provided through

off-shore banking; which do not need an EPA (the latter is under pressure, too)

The development cooperation for tourism is expressed in ‘best endeavour’ language

The Eu opening under the EPA consists mainly of professional services. These occupations are

already favoured by the selective migration policies of the developed countries. unemployment

and poverty are hardly concentrated among accountants and engineers. The only (semi) non-

professional categories are entertainers, fashion models, and chefs de cuisine. The first of

these have not had a difficulty in getting into Europe in the past.

Most important, access provided under the EPA is highly conditioned. Essentially it leaves in

the hands of individual member states the power to decide who they will take and who they

won’t (see Annex for details).

similar conditions are entered for Contractual service suppliers

note that the conditions for management personnel and graduate trainees that are required for

commercial presence are very broadly and flexibly stated; and the permitted duration is 3 years

(management) and 1 year (trainee).

f. fInAl notE: the EPA’s mandatory Review clause

At the 11th hour a joint Declaration was inserted

“in the context of our continued monitoring of the Agreement within its institutions, as provided for

under article 5 of the Agreement, a comprehensive review of the Agreement shall be undertaken not

later than five (5) years after the date of signature and at subsequent five-yearly intervals, in order to


determine the impact of the Agreement, including the costs and consequences of implementation

and we undertake to amend its provisions and adjust their application as necessary.”

Article 5 of the EPA states

“The Parties undertake to monitor continuously the operation of the Agreement through their

respective participative processes and institutions, as well as those set up under this Agreement,

in order to ensure that the objectives of the Agreement are realized, the Agreement is properly

implemented and the benefits for men, women, young people and children deriving from their

Partnership are maximized. The Parties also undertake to consult each other promptly over any

problem that may arise.”

It is notable that the jD imposes no a priori qualifications on the scope and nature of these amendments

and adjustments allowed under the review. This could open the way for addressing the EPA’s contentious

clauses. To do so, someone would have to set up a comprehensive system to collect and analyze

information on the impact of the EPA. This has not yet been done.

n. girvan

15 December 2009


Annex 1: A note on Public Procurement

The EPA contains a separate and detailed chapter on Public Procurement. There are differing

interpretations of whether these amount to a commitment to open PP markets to Eu suppliers—the

EC and the CRnM say no, many government officials and others say yes. The relevant provisions are

as follows:

“Article 167.1 The Parties and the signatory CF states shall ensure that the procurement of their

procuring entities covered by this Chapter takes place in a transparent manner according to the

provisions of this Chapter and the Annexes pertaining thereto, treating any eligible supplier of either

the signatory CF states or the EC Party equally in accordance with the principle of open and effective

competition.

Article 167.1A

b) With respect to any measure regarding covered procurement, the EC Party and the signatory CF

states, including their procuring entities:

(i) shall endeavour not to discriminate against a supplier established in either Party on the basis

that the goods or services offered by that supplier for a particular procurement are goods or

services of either Party;

(ii) shall not treat a locally established supplier less favourably than another locally established

supplier on the basis of degree of foreign affiliation to or ownership by operators or nationals

of any signatory CF state or of the EC Party.

A.3. subject to paragraph A.4, each Party, including its procuring entities, shall with respect to

any measure regarding covered procurement, accord to the goods and services of the other Party and

to suppliers of the other Party offering the goods or services of any Party, treatment no less favourable

than the treatment the Party, including its procuring entities, accords to domestic goods, services and

suppliers.

A.4. The Parties shall not be required to provide the treatment envisaged in paragraph A.3

unless a decision by the joint CF-EC Council to this effect is taken. That decision may specify to which

procurements by each Party the treatment envisaged in paragraph A.3 would apply, and under which

conditions.”

(b) (ii) seems to open the way towards Eu firms forming joint ventures with local firms to bid on

covered procurements

A4 certainly opens the way for the Eu to exert pressure through the joint Council to apply A.3.


Annex 2: Summary cf Import liberalisation SchedulesPagina 53 van 90


Annex 2 Summary CF Import Liberalisation Schedules

% and timing of imports to be liberalised

COUNTRY 0 5Y 10 Y 15 Y 20Y 25Y EXC

ANTIGUA / BARBUDA 7 7 25 35 2 2 22

BAHAMAS 32 2 13 34 3 2 13

BARBADOS 48 0 2 24 1 1 23

BELIZE 13 6 10 27 1 3 39

DOMINICA 17 3 18 27 2 1 27

DOMINICAN REPUBLIC 53 8 5 21 3 5 5

GRENADA 9 14 20 25 2 3 28

GUYANA 53 1 7 18 2 1 18

HAITI 60 0 1 7 2 4 27

JAMAICA 56 0 1 26 2 1 13

ST. KITTS AND NEVIS 18 16 16 17 2 2 29

ST. LUCIA 38 0 4 22 5 2 29

ST. VINCENT/GREN 8 7 14 30 2 2 37

SURINAME 9 9 20 27 2 3 28

TRINIDAD/TOBAGO 73 0 1 18 0 1 6

CF 53 3 5 22 2 2 13


Annex 3: Exporting to the EU (from Ec website)

general requirements

http://exporthelp.europa.eu/display.cfm?page=rt/rt_generalRequirements html&docType=

main&languageId=En

This section will tell you which documents (transport, customs, insurance, commercial) must

accompany all products entering the Eu.

Pagina 54 van 90


Annex 3. Exporting to the EU (From EC Website)

General requirements

http://exporthelp.europa.eu/display.cfm?page=rt/rt_GeneralRequirements.html&docType=main&languageId=EN

This section will tell you which documents (transport, customs, insurance, commercial) mustaccompany all products entering the EU.

General Requirements for all products

Commercial invoice EU

Freight documents EU

Packing list EU

Customs Value Declaration EU

Freight insurance EU

Single Administrative Document (SAD) EU

Overview

Import procedures

general information applicable to all imported goods EU product classification system,countries forming the customs union, how the single market works, customs procedures,etc.basic description of most significant import/marketing policies public health, environment,technical standardisation, labelling and packaging, etc.

VAT

general information on value added taxes definition and scope, applicable laws, taxabletransactions, tax rates, etc.

Excise

general information on excise duties definition and scope, applicable laws, taxable eventsand products (alcohol, tobacco, energy products, etc.), rates, etc.

For details of the legal requirements or taxes applicable in a particular EU country for a particularproduct, see the “Specific requirements” section.

overview

Import procedures

• generalinformationapplicabletoallimportedgoods-EUproductclassificationsystem,countries

forming the customs union, how the single market works, customs procedures, etc.

• basic description of most significant import/marketing policies - public health, environment,

technical standardisation, labelling and packaging, etc.

vAt

• general information on value added taxes - definition and scope, applicable laws, taxable

transactions, tax rates, etc.

Excise

• general informationonexciseduties-definitionandscope,applicable laws,taxableeventsand

products (alcohol, tobacco, energy products, etc.), rates, etc.

For details of the legal requirements or taxes applicable in a particular EU country for a particular product, see the “Specific requirements” section.


Annex 4: Eligibility requirements for Independent Professionals

Pagina 55 van 90


Annex 4 Eligibility requirements for Independent Professionals

SURINAME Direction of Trade 2008Trade Block Imports as a

Percentage of Total Imports (%)

Exports as a Percentage of Total Exports (%)

ASEAN 1.6 0.07

European Union 22.7 17.2

CARICOM 22.8 18.6

Mercosur 3.8 1.5

Nafta 25.2 32.4

Unaffiliated Countries 23.9 30.3

Conditions of access of IPS (Art 83)

1. Must be engaged in the supply of a service on a temporary basis in the other Party and must have obtained a service contract not exceeding 12 months.

2. At least 6 years professional experience.3. A University degree or equivalent qualification and

professional qualification required by local regulations. Mutual recognition agreements necessary

4. Stay limited to cumulative period of 6 months in any 12 month period or duration of contract, whichever is less.

5. Other ‘discriminatory limitations’ are allowed, including limitations on the number of employees permitted entry as a result of ‘economics needs tests’ in the receiving countries.

6. Other conditions are specified in Annex 4.


PRESEntAtIon

EPA,markttoegang voor

goederen (mA)

mr. Yvette Rokadji en Drs. Paul Soebai


PRESEENTATIE MR. YVETTE ROKAADJI EN DRS.. PAUL SOEBAAI: EPA, MARRKET ACCESS

Pagina 56 van 9

GOEDEREN

90


Pagina 57 van 990


Pagina 58 van 990


Pagina 59 van 990


Pagina 60 van 990


Pagina 61 van 990


PRESEntAtIon

Rules of origin

Drs. Patriciën Bisoen


PPRESENTATIEE DRS PATRICCIËN BISOEN: RULES OF ORRIGIN

Pagina 62 van 990


Pagina 63 van 990


Pagina 64 van 990


Pagina 65 van 990


Pagina 66 van 990


Pagina 67 van 990


SPEAKIng notES Ing. REnÉ vAn ESSEn, vSB

Presentatie van de vSB (vereniging Surinaams Bedrijfsleven) m.b.t. Implicaties, voordelen

en risico’s voor het Bedrijfsleven als gevolg van de “Economic Partnership Agreement” (EPA-

cARIfoRUm-EURoPESE UnIE)

het is voor de vsB, de vereniging surinaams Bedrijfsleven, een grote uitdaging om aan het eind van

een seminar met nieuwe of andere ideeën of stellingen te komen over de implicaties, de voordelen en

de risico’s, die het surinaamse Bedrijfsleven kan verwachten als gevolg van het in werking treden van

de Economische Partnerschap overeenkomst, die door de Europese unie, aangegaan zal worden met

de CARIFoRuM regio. het betreft hier het vrije verkeer in goederen en diensten. u heeft hedenmorgen

reeds uitvoerige uiteenzettingen over de voor- en nadelen van de EPA aangehoord, waardoor ik slechts

kan volstaan met wat kanttekeningen.

De vsB werd in 1950 opgericht en sindsdien behartigt deze organisatie de belangen van de werkgevers

op het nationale, regionale, continentale en mondiale nivo. Daarbij zijn wij een onderdeel van

respectievelijk de Ilo, IoE, CEC, CEATAl, EulAC e.a. overkoepelende groepen van non-state-Actors.

In al deze organisaties staat de creatie en het behoud van arbeidsplaatsen centraal, waarna er groei

wordt bereikt van het BBP.

Indien wij de 7 doelstellingen van de z.g. EPA’s voor ogen houden, dan komt allereerst de noodzaak

naar voren om voor de goede orde eerst vast te stellen, welk deel van de economie van ons land

gevolgen zal kunnen ondervinden van de handelsovereenkomst met de Europese unie.

De exportopbrengsten van suriname zijn in de laatste jaren opgelopen tot meer dan 1500 miljoen usD,

waarvan meer dan 80% voor rekening komt van de mijnbouwsector.

naast de 3 mijnbouwexporten ( goud, aardolie en aluinaarde) wordt tevens geëxporteerd: hout, rijst,

garnalen, bananen, groenten e.d.

Ik wil over de structuur van onze exporten nog het volgende in herinnering brengen.

het overgrote deel van onze exporten is reeds geïntegreerd in de wereldeconomie en suriname •

levert “world-class-producten” aan: noorwegen, Canada, de usA, japan, nederland, etc.

het moet ook wel vermeld worden dat in de mijnbouwsector minder dan 5% van de arbeidsmarkt •

werkzaam in is.

Dit is het grootste probleem in het land en wij moeten eigenlijk liever onze energie gebruiken om die

zeer afhankelijke situatie te verbeteren.

Met andere woorden: het aangaan van een Eu-CARIFoRuM-EPA zal niet onmiddellijk een einde maken

aan onevenwichtigheden, zoals hiervoor is aangehaald.


De waarheid is dat ons suriname nogal wat interne problemen heeft, die in ons land eerst aangepakt

zullen moeten worden, voordat wij gaan denken aan de integratie van het resterende deel van onze

economie in de wereld-economie.

Wij hebben veel te lang ons blindgestaard op enkele producten uit de grootlandbouw (rijst, bananen,

suiker) waarbij vooral de subsidies van de Eu aantrekkelijk waren.

Met de WTo op komst zullen deze snel verdwijnen en worden onze producten niet meer verkoopbaar

(rendabel/concurrerend).

Wij hadden al lang geleden moeten ingrijpen en daarbij onze “efforts” moeten steken in de ontwikkeling

van: de agro-industrie, hout en houtproducten, meubels, bloemen, voeding, etc. Deze industrieën zijn

er op dit moment niet. Wat zullen wij doen aan de verbetering van ons concurrentievermogen?

op de eerste plaats is het de hoogste tijd geworden om onze economische producten te diversificeren.

zoals gezegd dienen per sector en per sub-sector serieuze studies gedaan moeten worden naar de

haalbaarheid van de producten voor locale, regionale e.a. markten.

op de tweede plaats moet er nog heel veel gebeuren op het vlak van de verbetering van het

ondernemersklimaat van suriname.

vooral het beleid inzake:

onderwijs en vaktechnische opleidingen•

Productiviteit•

Werkgelegenheid (decent work).•

Financieringsfondsen•

slechts een integrale aanpak van de hiervoor genoemde problemen zal ons een kans geven om toch

met concurrerende bedrijven op de markt te kunnen komen.

op bedrijfsnivo

op het nivo van de bedrijven moet gedachten worden aan:

nieuwe technologieën•

versterken van het management van de ondernemingen•

“skills Development van de Werknemers”, op verschillende nivo.•

suriname kan met een goed getrainde en zeer productief opererende arbeidsmacht gaan denken over

de wijze waarop wij zouden kunnen penetreren op regionale e.a. markten.


zoals al gesteld moet er nog heel veel gebeuren op het vlak van de verbetering van het ondernemersklimaat

van suriname.

op sectoraal nivo: het samenwerken van ondernemers in business-netwerken (Clusters), om daardoor

in staat zullen zijn om gezamenlijk iets te kunnen betekenen op de nieuwe en grotere markten.

op nationaal nivo zal er alles aan gedaan moeten worden om de kosten van het ondernemen te

kunnen verlagen. Aan de orde komen dan: energiekosten, financiële voorzieningen, telecommunicatie,

transport, vergunningen en fysieke infrastructuur, etc.

De overheid zal een fonds moeten instellen van usD 1 miljard voor de komende tien jaar voor het

bedrijfsleven (MkB).

op regionaal nivo kan het concurrentievermogen slechts vergroot worden, indien de onderlinge

verhoudingen worden verbeterd (lucht-, zee- en land-transport).

op de derde plaats zullen er programma’s ondernomen moeten worden op elk nivo, die het

ondernemersklimaat verbeteren.

op het nivo van de grotere multinationale bedrijven (investment en dienstverlening) op het nivo van de sME’s, de small and Medium sized enterpreneurs op het gebied van de M.E. (de micro enterpreneur)

Werkgelegenheidscreatie van decent work zal hier het hart van moeten zijn.

op de vierde plaats zal de ontwikkeling van de landen (inclusief suriname) zoal overeengekomen in

de CoTonou-overeenkomst, waarop optimaal gebruik gemaakt moet van de internationaal aanvaarde

structuren van de sociale dialoog.

In plaats van u gerust te stellen met de integratie voordelen in de EPA’s, wil ik u het volgende

meegeven.

Indien de CARICoM en ook de Regionale overheden de ontwikkelingen op het gebied van EPA serieus

nemen, dan zal de allocatie van middelen uit b.v. het 10e EDF een weerspiegeling moeten zijn van

hetgeen ik hiervoor heb aangegeven (Dit Fonds is Euro 160 miljoen).

zonder die steun uit CRIP en nIP zal er niet veel mogelijk zijn (CARICoM Regional Indicative Program/

national Indicative Program).

suriname heeft als klein land ook een kleine economie, waardoor er al gauw verstoringen zullen plaats

vinden, indien “market-access” wordt toegestaan aan Europese Bedrijven, omdat in onze nationale

sectoren nationale sectoren de regelgeving niet wordt nageleefd of serieus in haar gebied ontbreekt.


vanwege de a-symmetrische verhoudingen op veler gebied bestaat het gevaar dat een groot aantal

beroepen en vaardigheden van de surinaamse bedrijvigheid zullen verdwijnen. Deze werden in de

afgelopen 25 jaar op grond van loME e.d. opgebouwd via het accepteren van nationale preferentie.

het opengooien van de lokale markt voor Europese bedrijven, kan niet worden gecompenseerd, nog

worden vergeleken met het verlenen van toegang voor lokale bedrijven in de Europese markten. Deze

bestaan naar mijn mening nauwelijks.

Mijn opmerkingen komen voort uit het bestuderen van de gealloceerde fondsen t.b.v. het nIP en het

CRIP uit de fondsen uit het 10e EDF.

Tenslotte blijven een aantal vragen open die voor het aangaan van de EPA heel belangrijk zijn:

Bestaat er bij onze politieke overheid de wil om de hervormingen te realiseren (op fiscaal en bestuurlijke 1)

gebied)? En is de overheid bereid haar locale producenten waarnodig te beschermen?

hoe zullen wij onze economie diversificeren zonder middelen? Donorhulp droogt op en vanuit de 2)

eigen besparingen kan weinig verwacht worden.

hoe gaan wij het concurrentievermogen van onze economische producten vergroten?3)

Wat doen wij aan de verbetering van het investerings- en ondernemingsklimaat op alle nivo’s?4)

Met de voorgaande informatie heeft de vsB getracht enkele zorgpunten met u te delen, die op nationaal

nivo aangepakt moeten worden als wij verwachten dat de EPA voor ons een succes zal worden.

Paramaribo, 16 december 2009.

vereniging surinaams Bedrijfsleven


PRESEntAtIon

EPA,trade in Services

Drs. Jean I. Djasman(ministerie van handel & Industrie)


PRRESENTATIE DDRS. JEAN DJAASMAN: EPA,, TRADE IN SEERVICES

Pagina 72 van 990


Pagina 73 van 990


Pagina 74 van 990


Pagina 75 van 990


Pagina 76 van 990


Pagina 77 van 990


Pagina 78 van 990


Pagina 79 van 990


3. curriculum vitaes

REmco vAhl, Dg tRADE Ec

Remco vAhl is deputy head of unit at the European Commission’s Directorate-general for Trade (Dg

TRADE). This unit is dealing with Economic Partnership Agreements (EPAs) in three ACP regions:

West and Central Africa and the Caribbean. It also liaises with the European Parliament, the Council

of Ministers and the joint ACP-Eu institutions on ACP trade matters. Remco vahl has worked on

ACP trade for 12 years in the Commission, first in Dg Development and then in Dg TRADE. This has

included rules of origin and agricultural issues and trade negotiations with the Caribbean. he has been

deputizing since August 2005. he has followed very closely the EP’s assent procedure for the EPAs.

Previous posts: official at the European Commission since March 1995;

Research assistant at leiden university, the netherlands (1991-1995)

Education: PhD on the role of the European Commission in EC decision-making (leiden, 1996)

PRof. DR. noRmAn gIRvAn, PRofESSoRIAl RESEARch fEllow

UwI InStItUtE of IntERnAtIonAl RElAtIonS

norman girvan is Professorial Research Fellow at the uWI graduate Institute of International Relations

at the university of the West Indies in st. Augustine, Trinidad and Tobago. he has been secretary

general of the Association of Caribbean states, Professor of Development studies and Director of the

sir Arthur lewis Institute of social and Economic studies at the university of the West Indies, and head

of the national Planning Agency of the government of jamaica. he received his Bachelor’s degree in

Economics of the university College of the West Indies and his PhD in Economics from the london

school of Economics. he has published extensively on the political economy of development in the

Caribbean and the global south. he is the recipient of several honours and awards

YvEttE RoKADJI, llc, StAfmEDEwERKER mhI,

AfDElIng IntERnAtIonAlE EconomISchE BEtREKKIngEn

heeft haar Meester titel behaald aan de Anton de kom universiteit van suriname, is thans langer dan

7 jaar werkzaam op de afdeling Internationale Economische Betrekkingen van het onderdirectoraat

handel van het MhI. ze maakt deel uit van de werkgroep Market Access en is mede verantwoordelijk

geweest voor de market access onderhandelingen binnen de CF-Eg EPA overeenkomst.


DRS. PAUl SoEBAI, StAfmEDEwERKER mhI,


Werkt langer dan 10 jaar bij het MhI, onderdirectoraat handel. hij is medeverantwoordelijk voor

Market Acces in goederen, Agriculture en sanitary and Physo-sanitary rules alsmede statistieken

binnen dit directoraat. Biedt ondersteuning bij de EPA-onderhandelingen tussen CF en de Europese

gemeenschap.

DRS. BISoEn PAtRIcIEn, StAfmEDEwERKER mhI,


Werkt langer dan 10 jaar bij het MhI, en begonnen op de afdeling Invoer, uitvoer en Deviezencontrole en

thans werkzaam op onderdirectoraat handel. ze is medeverantwoordelijk voor Technical Barriers to Trade

aangelegenheden, Rules of origin en de verwerking van “suspensionaanvragen” binnen dit directoraat.

Biedt ondersteuning bij de EPA-onderhandelingen tussen CF en de Europese gemeenschap.

DRS. JEAn DJASmAn, StAfmEDEwERKER mhI,


Is bedrijfseconoom, afgestudeerd van de universiteit van suriname, is thans langer dan 5 jaar werkzaam

op de afdeling Internationale Economische Betrekkingen van het onderdirectoraat handel van het MhI.

ze maakt deel uit van de werkgroep services van het Ministerie, die belast is met werkzaamheden

betreffende de handel in diensten. Mw. Djasman heeft ook ondersteuning gegeven bij de EPA

dienstenonderhandelingen tussen het CF en de Europese gemeenschap.

IR. REnÉ vAn ESSEn, lAnDBoUwKUnDIgE En cUltUUR tEchnIcUS, vSB

Dhr. Ing. René van Essen heeft landbouwkunde en cultuurtechniek in Wageningen, nederland

gestudeerd. hij kwam in 1964 in suriname heeft bij sMl, surmac en Billinton gewerkt. In 1987 begon

hij bij de good year Tire and Rubber Company in Africa en het Midden oosten. hij keerde naar suriname

terug en werd in 1999 directeur van C. kersten en Co., en is vanaf 2005 beleidsadviseur bij Plos en

vanaf 2007 directeur van de vsB.

Ing. wIlgo BIlKERDIJK, mEchAnIc EngInEER En DIREctEUR BIllY’S AUtomotIvE, ASfA


4. lijst van Aanwezigen Seminaar 16 Dec 2009

# naam vertegenwoordigende Instantie E-mail Adres

1 Alli Razia surinaams Bureau voor standaarden [email protected]

2 Ackton Benito suriname Business Development Center

3 Alikromo Anoushka suriname Business Development Center

[email protected]

4 Ameerali Robert kkF [email protected]

5 Badloe s.s.A.W

6 Banbasszeeg Caricom Competitivenes Commission [email protected]

7 Beeldsnijder C. Bakkeljauw fabriek [email protected]

8 Bilkerdijk Wilgo AsFA/Billy's Automotive group nv [email protected] / [email protected]

9 Bisoen P Min. handel en Industrie [email protected]

10 Cheung Tjiene Min handel en Industrie

11 Chin David Ckj Produktie nv

12 Claver shequita Min handel en Industrie [email protected]

13 Codrington kenneth Min. handel en Industrie [email protected]

14 Del Prado A Min handel en Industrie [email protected]

15 Dilweg C.A. Randoe-suriname nv [email protected]

16 Djasman jean Min. handel en Industrie [email protected]

17 Djosetiko henna Min. handel en Industrie [email protected]

18 dos Ramos orlando suriname Business Forum [email protected]

19 Fernandes vincent Min handel en Industrie [email protected]

20 Foe A Man kenneth vsB/sBF [email protected]

21 gefferie vanuessa Min handel en Industrie [email protected]

22 goedschalk john C. kersten en Co nv [email protected]

23 graanoogst Eline suriname Business Development Center [email protected]

24 grauwde R. surinaams Bureau voor standaarden [email protected]/[email protected]

25 grootfaam-starke Marjorie

Min handel en Industrie [email protected]

26 gunputsing Roy s. Indeco nv [email protected]

27 halfhide Diana sAB [email protected]

28 healy kathleen Margarine - en vetten fabriek nv [email protected]

29 hernandez Aragones Esmeralda

Europese Delegatie [email protected]

30 hoepel naomi F.h.R. lim A Po Instituut [email protected]



31 hoever urtha Min. handel en Industrie [email protected]

32 Ilahi joan prive [email protected]

33 Isselt Ernie suriname Business Development Center [email protected]

34 jadoenathmisier Aroen Min. handel en Industrie [email protected]

35 kalka Ratan suriname Business Development Center [email protected]

36 kerkhoffs-zerp Margret Min handel en Industrie [email protected]

37 khodabaks zevoera nederlandse Ambassade [email protected]

38 klinkers l. klinkers Public Policy Consultants [email protected]

39 koorndijk judy Min van Buitenlandse zaken [email protected]

40 lang sharon De West [email protected]

41 Man A hing Max kkF [email protected]

42 Marica Cliford Min. handel en Industrie

43 Meaney sebastian Eagleton

Independent consultant [email protected]

44 Meegdenburg Wouter CIC [email protected]

45 Moeniralam Afirah Min. van justitie en Politie [email protected]

46 Mohan Romana Min. handel en Industrie [email protected]

47 Mungra soebhas ADEkuvs/sBF [email protected]

48 nahar saskia Min. handel en Industrie [email protected]

49 olivieira Cornelly stg Women's Business group [email protected]

50 Pahlad-Abdul joan Centrale Bank van suriname [email protected]

51 Pant soebai Min. handel en Industrie [email protected]

52 Phoelsingh, Deborah Arti

Ministerie van Plos [email protected]/ [email protected]

53 Pique orpheo Min handel en Industrie [email protected]

54 Pocornie nathalie ADEkuvs [email protected]

55 Pross C DWT [email protected]

56 Raissa van varsseveld Ministerie van Plos [email protected]/[email protected]

57 Ramautar Romeo Min handel en Industrie [email protected]

58 Ramautarsingh W. Proplan Consultancy [email protected]

59 Rambaran Pravina ADEkuvs [email protected]

60 Ramhit h Process Consultancy [email protected]

61 Ramrattan sima Ministerie van Plos [email protected]

62 Refos E kkF [email protected]

63 Renfurm Ferrol prive [email protected]



64 Rozenberg kkF [email protected]

65 setrosentono Tanja ADEkuvs [email protected]

66 sewtahal Renuka ADEkuvs [email protected]

67 sexstone Darrel Europese Delegatie [email protected]

68 silos steve Europese Delegatie [email protected]

69 simons j prive [email protected]

70 snel Marieke MInov [email protected]

71 snijders Deborah l. Centrale Bank van suriname [email protected]

72 soechitram kkF [email protected]

73 soekhnandan Maikel Centrale Bank van suriname [email protected]

74 soeri Cyril Tjong A hung Consultancy [email protected]

75 soetodiryo Wendy ADEkuvs [email protected]

76 Tilborg Marjan o. Ministerie van Financien [email protected]

77 Tuur Mauro Min. handel en Industrie [email protected]

78 vega Min. handel en Industrie [email protected]

79 Wielson Winston suriname Business Development Center [email protected]

80 Wittenberg natasha suriname Business Development Center [email protected]

81 Wong Fong sang karen Margarine - en vetten fabriek nv [email protected]

82 zalmijn Arthur [email protected]


EnDnotES

A however, this is not so self-evident and truly not a part of the EPA. The reference by Mr. vahl

concerned the regional preference the currently applies on market access for goods, whereby, within the

FTA between the CARICoM Member states and DomRep, a “phase reduction list” (the so-called MFn-

list) and an “exclusion list” has been accepted. All other products not mentioned, gain free (not duties)

market access (the so-called “negative Approach” has been applied here in the trade negotiations).

(source: ThE CARIBBEAn CoMMunITy (CARICoM) DoMInICAn REPuBlIC FREE TRADE ACT, 2001,

Annex I, Agreement on Trade in goods, Article III, Market Access). This agreement is completely

separate from the EPA. What is true, is that in case the FTA between the CARICoM Member states and

DomRep would results in more favorable advantages, that these advantages should also be extended

to like import products from the Eu. Thus the advantage of regional expansion due to the EPA is not

so much for the CARICoM Member states, as for the Eu (source: EPA agreement, Article 70, “Most-

favored-nation treatment”).

B All trade agreements are based on 3 fundamental pillars: (1) trade liberalization whereby barriers

(i.e. tariffs) are reduced/removed, (2) safeguards to protect local markets, monetary reserves and

fiscal positions (Anti Dumping, Balance of Payment safeguard, countervailing measures to respond to

foreign subsidized exports in certain circumstances, etc.), (3) dispute settlement (arbitrage) in cases

where difference of opinion exists in the interpretation or application of (part/parts) of an agreement.

The “safety valves” in the EPA are thus not unique and simply part of the standard format of any FTA

(source: www.wto.org).

C services and investments are mentioned and dealt with in the same breath, since investments are

defined as FDI; economic activity brought about by establishing/setting up a business as a commercial

presence, acquired by taking over an existing business or the creation of a new branch or agency. If a

service is set up in this way, it corresponds with the definition of “Mode 3, commercial presence” of

the international classification for services (source: EPA, chapter 2)

D Trade Facilitation concerns the improvement of procedures and control mechanism in all aspects

concerned with the displacement of goods, with the objective to reduce costs, improve transparency

and efficiency, with regard for the policy objectives that rules and regulations advocates. Depending

on which aspects are taken into account (or left out), the scope of trade facilitation can be interpreted

broadly or narrowly. For instance, in some definitions, regulation regarding payment through the banking

system is not considered part of trade facilitation (sources: www.wto.org, Asia-Pacific Research and

Training network on Trade, April 2006).

In the EPA agreement, trade facilitation is contained in Chapter 4, and mainly strives for harmonization,

transparency and cooperation to simplify procedures and effective control. This might be one of the

areas where CF countries may benefit from the technological edge the Eu has.


E The Eu has been under pressure by the WTo and counties such as the usA and Ecuador, regarding

the preferential treatment extended to bananas from ACP countries. In 2006 the Eu set the price at

€176/ton. The usA and Ecuador, the major suppliers of bananas on the Eu market, protested this

price setting and in August 2008 the WTo ruled against the Eu for maintaining this system of price

setting. on 15 December 2009, a year after signing the EPA, the Eu reached an agreement with latin

American banana producers (Brazil, Colombia, Costa Rica, Ecuador, guatemala, honduras, Mexico,

nicaragua, Panama, Peru and venezuela) to, among others, immediately reduce the price of bananas

to €148/ton. The 12% reduction would apply till the end of 2010, after which the price will gradually

be reduced to €114/ton (01 january 2017). The agreed regime will partly depend on the results of the

Doha negotiations, but the successful conclusion of Doha will not change the trend in price decline for

bananas. Currently the latin American banana producers supply 60% of the Eu market, while the share

of the ACP countries is at 20%. The other 20% is mostly supplied by spanish and French Eu territories.

ACP banana producers fear that, with the prospects of gradual price decline, their market share will

further be reduced (sources: www.usatoday.com, www.acp-eucourier.info, WTo, WT/l/784, geneva

Agreement on Trade in Bananas).

F The nTBs concern, inter alia, Rules of origin (Roo), Technical Barriers to Trade (TBT), the erosion

of the agreed preferential tariffs (refer to footnote E on the reduction of the banana price) and other

local elements of regulation not included in the trade agreement such as advertisements, marketing,

taxation rules, etc (other aspects within the various phases of supplying a good onto a market, the so-

called supply chain, which are not under the control of CF countries). source: suRInAME: PRos AnD

Cons oF ThE EPA, speaking notes. norman girvan. For sBC seminar, December 16, 2009).

g The above goods mentioned by Png are all contained in the “Exclusion list” of suriname; the

payment of duties by Eu goods will not be reduced within the EPA. It is possible however, for Eu

businesses to start an establishment/agency (through the Investment Agreement in the form of FDI) in

suriname and can, in this manner, offer competition to goods produced locally.

h The “standstill Clause” implies that no taxes, quantitative and other limitations may be increased

or created that did not exist before the signing of the EPA. It is thus not possible to protect infant

industries through these policy instruments. The government is allowed to subsidize (source: EPA

Articles 13 and 15)

I MRAs are aimed at acknowledging Caribbean qualifications and diplomas in Eu countries. The

agreement suggests that respective institutes enter into consultations with each other, set and agree

rules for mutual acknowledgement, and submit these proposals to the (“CARIFoRuM-EC Trade and

Development Committee”. The Commission, from its part, will start negotiations on governmental level

to have the draft MRAs approved (source: EC-CARIFoRuM Economic Partnership Agreement. services

and Investment Commitments. volume 1, Business and Trade Policy. Business guide International

Trade Centre).


j of importance are the definitions of “supplier”, “eligible supplier”, as defined in “ChAPTER 3,

PuBlIC PRoCuREMEnT”, Article 166, part (3) and (5) of the EPA agreement. A supplier is defined

as any natural or legal person or public body or group of such persons or bodies of a signatory

CARIFoRuM state or the EC Party which can provide goods, services or the execution of works. The

term shall cover equally a supplier of goods, a service provider or a contractor.

An “eligible supplier” is a supplier [as mentioned in Article 166 (3)] who is allowed to participate in

the public procurement opportunities of a Party or signatory CARIFoRuM state, in accordance with

domestic law and without prejudice to the provisions of Chapter 3.

The text does not indicate under what conditions/when a business is allowed to tender for government

works. Insomuch known, a business is allowed if it is a resident of one of the signatory countries of

the EPA takes part in another local business and complies with all the legal stipulations related to

government procurement. The EPA text does not set specific qualifications to be considered an “eligible

supplier”.

k In discussing goods and services, but also in discussing government procurement, a number

of clauses have been mentioned, such as the “mfn” and “nt clauses”. Apart from these clauses, in

discussing the market access for goods, recall the use of the “Standstill clause” (see footnote g)

The “Rendezvous clause” mandates that, with respect to trade liberalization for services, renegotiations

will take place every 5 years. This opens the possibility for CF services not yet liberated under the

current EPA of where reservations still exist, to still liberate those or at least to exercise pressure on

those sectors/services

With regard to goods, services and investments it is asserted that all advantages that CARIFoRuM

countries have extended to the Eu, shall also be extended mutually; thus between the CARICAM

countries and DomRep. This is the “Regional Preference clause”.

Apart from abovementioned clauses, all applying to market access, another has been mentioned that

has a more institutional character. The “mandatory Review clause”, which is an complement to Article

5 of the EPA agreement, states that 5 years after signing the agreement and every 5 years thereafter,

a thorough evaluation of the effects of the EPA will take place, including the costs and consequences

of the implementation with the objective to adjust, if necessary, what has been agreed upon and their

applications. This will only be done properly if the EPA is thoroughly evaluated now and the effects

are continually monitored and recorded. The latter is the most important recommendation of Png,

especially regarding services and investment.

l The ATA carnet is an international Customs document that allows the holder to temporary, mostly

for 12 months, secure goods intended for re-export from the payment of duties and other charges, as


long as the goods leave the country that issued the document with the stipulated time (source: http://

www.atacarnet.com/WhatisanATACarnetorCarnet.aspx, Corporation for International Business).

M on 5 February 2008, during a meeting of the general Council of the WTo, Brazil raised an objection

against the MFn Clause of the Eu in the EPA with the ACP countries. Brazil indicated that the clause

violates the “Enabling Clause”, discourages trade between developing countries and hands the Eu

a unique opportunity to keep a market to itself it could not have accessed as desired before, and to

expand her market share with much competition from other trading partners outside the agreement

(source: Cheikh Tidiane Dièye and victoria hanson, MFN provisions in EPAs: a threat to South-South trade?. Trade negotiations Insights. volume 7. number 2 / March 2008 and the official text of the

“Economic Partnership Agreement between the CARIFoRuM states of the one Part and the European

Community and Its Member states of the other Part, EPA agreement, Article 70, Most-favored-nation

treatment).

The MFn clause mandates that CF countries automatically extend more favorable advantages to the Eu,

if future FTAs with third parties would result in more favorable advantages than agreed during the EPA

(source: EPA, PART II: TRADE AnD TRADE-RElATED MATTERs. TITlE II: InvEsTMEnT, TRADE In

sERvICEs AnD E-CoMMERCE. ChAPTER 2: CoMMERCIAl PREsEnCE, ARTIClE 70: Most-favoured-

nation treatment, part 1b).

The clause specifies the character of “third parties” as a “major trading economy” being any developed

country, or any country accounting for a share of world merchandise exports above one (1) percent in

the year before the entry into force of the economic integration agreement referred to in paragraph 1, or

any group of countries acting individually, collectively or through an economic integration agreement

accounting collectively for a share of world merchandise exports above one and a half (1.5) percent in

the year before the entry into force of the economic integration agreement.

With Article 70 part 4, the Eu is excludes any potential future trading partner, since chances are small

that another country would supply its goods on the CF market to endure fierce competition from the

Eu. say suriname, for example, would liberalize a product on the EPA “Exclusion list” in favor of Brazil,

since liberalization would be associated with increased technical assistance into the sector, suriname

would be obliged to pass this advantage to all like imports from the Eu, thus effectively taking the

product out of the “Exclusion list”. Furthermore, suriname would not be able to accommodate, say

cars from Brazil, a lower tariff, without providing cars from Eu the same advantage. Brazil will not

be tempted to conclude or even attempt a FTA with suriname, since the advantage of such a FTA is

annihilated by the MFn Clause; Brazilian cars would endure fierce competition from Eu cars due to

similar trade provisions to enter the surinamese market and suriname, as a developing country, would

not be able to enjoy future FTAs with Brazil or any other trading partner for that matter.

Article 70 part 5 leaves open a “small possibility” by stating that, if the party with whom a more favorable


FTA has been concluded does not meet the definition as referred to in Article 70 part 4, the CF countries

shall enter into consultations and “may decide whether the concerned signatory CARIFoRuM state

may deny the more favorable treatment contained in the economic integration agreement to the EC

Party. The joint CARIFoRuM-EC Council may adopt any necessary measures to adjust the provisions

of this Agreement” (also refer to footnote k).

During said WTo meeting, many developed and developing countries have voiced their disgust over

the MFn Clause and have indicated that, by way of this clause, the Eu not only wants to protect

and consolidate its declining trade with third world countries, such as in Africa, but also wants to

discourage growing trade with larger developing countries, such as Brazil, China and India.

It is internationally acknowledged that the Eu has the right to trade with the ACP countries based on the

principle of reciprocity, but it’s improper for the Eu to demand from developing countries to extend all

future advantages they have allow third parties, to automatically extend those to the Eu too. The MFn

Clause has been dubbed as a “pre-emptive injustice”. The above analysis has clearly proven that the

MFn Clause is a formal erosion of the EPA provisions in favor of the CF countries.

This subject will again be tabled at the next WTo general Council meeting, but will only happen after

the EPA has been notified to the WTo. It’s of eminent importance that suriname increases its efforts

to ratify the agreement.

n In the newspaper called “Times of suriname” from Friday 4 December 2009, the article appeared

mentioning that suriname will endure fierce competition in the poultry sector due to the EPA. This is

inaccurate. The poultry sector will not experience competition from Eu imports, since chicken has been

place on the “Exclusion list” and is therefore excluded from tariff reduction. If the current tariff is at

20%, it will remain on 20%. This applies to all goods on this list.

o From the agreement it is not clear/hard to discern who is the owner of the Intellectual Property

Rights from these co-productions and how the share-out will take place since these have not yet

been arranged in the cultural agreement. negotiations still need to take place [Protocol III, on Cultural

Cooperation, Article 2(2)]. For the time being, talks only concern the development of a “common

understanding”, which will be reached by dialogue and “good practices” concerning the Intellectual

Property Rights. The original text quoted: “The Parties shall cooperate to foster the development of

a common understanding and enhanced exchange of information on cultural and audiovisual matters

through an EC-CARIFoRuM dialogue, as well as on good practices in the field of Intellectual Property

Rights protection. This dialogue will take place within the mechanisms established in this Agreement

as well as in other relevant fora as and when appropriate”.

P In 2003 similar studies were conducted with the objective to analyze the implications of suriname

entering the WTo and CARICoM. That study was macro-economic and trade-technical in nature and


concluded that the surinamese economy is dual in nature, with a strongly developed import-intensive

sector and labor-saving sector, and an underdeveloped capital-intensive sector that is not utilizing

enough of its cultural, historical and social capital to expand its economic base and include more people

into the economic process of production, capital and income development. This dual character and

underutilization of domestic capital to generate development, results in important structural problems

such as structural shortages on the current account of the balance of payments, an overextended

public sector and net migration of scarce human capital to the netherlands predominantly. The study

suggested a strategy whereby the import-intensive sectors, such as bauxite, gold, crude oil, would

continue growing, but that policy would be developed to have sector producing and using domestic

capital grow faster. sectors such as tourism, handicraft, music, textile, dance, drama, etc. the study

was commissioned by MTI and financed by the unDP (source: Rosalea hamilton, Ph.D., Implications

for suriname’s Economy of the WTo, FTAA, CsME, and ACP-Eu Trade Agreement. unDP Project

suR/02/001, May 2003).

Apart from this study, additional studies have been conducted regionally to analyze the export potential

of Caribbean Economies with respect to the by way of systematic development and use of domestic

capital. The study describes various potential sectors in various Caribbean countries. suriname has

also been included into this study (source: vanus james, PhD., Building Competitive Caribbean Export

Industries Rooted in local Talent and Resources. strategies for Employment growth and Poverty

Alleviation. Preparatory Assistance Project unDP/sPPD. january 2002).

i.jong - economic partnership agreement - implications for the development of the domestic private...

Documents

epa agreement

development context

economic development

suriname customs

minister of trade

economic activity

national assembly of

summary seminar chairman