Provisions re Professional Services in Cariforum-EC EPA

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1 Provisions re Professional Services in Cariforum-EC EPA Ramesh Chaitoo Head, Services Trade Unit CRNM -

2 Structure of Title II - Investment, Trade in Services & E-commerce (Arts ) Chap 1 - General provisions Chap 2 - Commercial Presence (Investment) Chap 3 - Cross Border Supply of services Chap 4 - Temporary Presence of Natural Persons for Business Purpose Chap 5 - Regulatory Framework (with sectoral rules) Chap 6 - E-commerce (Arts ) Chap 7 - Cooperation (Art. 121)

3 Different modes of supplying services Mode 1 - Cross border trade (phone calls, transport, music downloads on Internet, etc. ) Mode 2 - Consumption abroad in which consumer moves to where service is provided (tourism, repair & maintenance) Mode 3 - Commercial presence or investment in foreign market to supply service to clients (banks, retail, etc.) Mode 4 - Presence of natural persons or temporary entry access for individuals to go into other country to supply services (entertainers, consultants, professionals, etc.) on short term contracts or to manage companies there

4 Main obligations re Services & Invest Market access (subject to limitations) National treatment (subject to limitations) Most favoured nation treatment Transparency

5 Limitations on Investment (Mode 3) a) on the number of commercial presences whether in the form of numerical quotas, monopolies, exclusive rights or other commercial presence requirements such as economic needs tests (ENT); b) on the total value of transactions or assets in the form of numerical quotas or the requirement of an ENT c) on the total number of operations or on the total quantity of output expressed in terms of designated numerical units in the form of quotas or the requirement of an ENT

6 Limitations on Investment (Mode 3) d) on the participation of foreign capital in terms of maximum percentage limit on foreign shareholding or the total value of individual or aggregate foreign investment e) measures which restrict or require specific e) measures which restrict or require specific types of commercial presence (subsidiary, branch, representative office) or joint ventures through which an investor of the other Party may perform an economic activity

7 Market access restrictions on Modes 1&2 (Art. 76) a) Limitations on the number of services suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirements of an economic needs test; b) Limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test; c) Limitations on the total number of service operations or on the total quantity of service output expressed in the terms of designated numerical units in the form of quotas or the requirement of an economic needs test.

8 Restrictions on Mode 4 Nationality requirements Residency requirements Economic Needs Tests Certification of Qualifications

9 Mode 4 Categories in EPA 1. Special categories of natural persons for temporary entry: Key personnel (managers, specialists) Graduate trainees Business services sellers Contractual services suppliers Independent professionals Short term visitors for business purposes

10 Key Personnel 'Key personnel' means natural persons employed within a juridical person of the EC Party or of the Signatory CARIFORUM States other than a non-profit organisation and who are responsible for the setting-up or the proper control, administration and operation of a commercial presence.

11 Two types of Key Personnel 1. 'Business visitors' mean natural persons working in a senior position who are responsible for setting up a commercial presence. They do not engage in direct transactions with the general public and do not receive remuneration from a source located within the host EC Party or Signatory CARIFORUM State respectively. 2. 'Intra-corporate transfers' mean natural persons of the EC Party or of the Signatory CARIFORUM States who have been employed by a juridical person or have been partners in it for at least one year and who are temporarily transferred to a commercial presence in the territory of the other Party. - Managers & Specialists

12 Graduate trainees Graduate trainees' means natural persons who have been employed by a juridical person of that EC Party or Signatory CARIFORUM State for at least one year, possess a university degree and are temporarily transferred to a commercial presence or to the parent company of the juridical person in the territory of the other Party, for career development purposes or to obtain training in business techniques or methods

13 'Business services sellers' 'Business services sellers' means natural persons who are representatives of a service supplier of that EC Party or Signatory CARIFORUM State seeking temporary entry into the territory of the other Party for the purpose of negotiating the sale of services or entering into agreements to sell services for that service supplier. They do not engage in making direct sales to the general public and do not receive remuneration from a source located within the host EC Party or Signatory CARIFORUM State respectively.

14 Contractual Service Suppliers Natural persons of the EC Party or of the Signatory CARIFORUM States employed by a juridical person (company) of that EC Party or Signatory CARIFORUM State which has no commercial presence in the territory of the other Party and which has concluded a bona fide contract to supply services with a final consumer in the latter Party requiring the presence on a temporary basis of its employees in that Party in order to fulfil the contract to provide services.

15 Conditions for CSS 1. Supply of a service on a temporary basis as employee of a company that has obtained a service contract for a period not exceeding twelve months 2. Stays for up to 6 months in a year or length of contract 3. Must have university degree or equivalent and/or professional qualification (except entertainers, models, chefs) 4. Must have worked for at least one year for company & have 3 years experience 5. CSS must be paid by employer in home country 6. Can only do work stipulated in service contract 7. Limited to the number of persons necessary to supply the contract.

16 Independent Professional (IP) Independent professionals' means natural persons of the EC Party or of the Signatory CARIFORUM States engaged in the supply of a service and established as self-employed in the territory of that EC Party or Signatory CARIFORUM State who have no commercial presence in the territory of the other Party and who have concluded a bona fide contract (other than through an agency as defined by CPC 872) to supply services with a final consumer in the latter Party requiring their presence on a temporary basis in that Party in order to fulfil the contract to provide services

17 Conditions for IP 1. Supply of a service on a temporary basis 2. Must have obtained a service contract for a period not exceeding twelve months 3. Stays for up to 6 months in a year or length of contract 4. Must have university degree or equivalent and/or professional qualification 5. IP must be self-employed person established in home country & have 6 years experience 6. Can only do work stipulated in service contract 7. Limited to the number of persons necessary to supply the contract.

18 Short term visitors for business purposes EC and CF states to facilitate temporary entry for persons doing the following activities for up to 90 days: Research & design Marketing research Training seminars Trade fairs and exhibitions Sales & purchasing Tourism personnel

19 Mode 4 Access Granted Schedules of commitments in Annex V of the EPA; EC - IV A-D: Cariforum - E-F Greater access granted by EC for Mode 4 to CF suppliers than in WTO; No quotas on mode 4 but proposed in WTO But economic needs tests (ENTs) remain in some sectors

20 Temporary entry access for CF Contractual Service Suppliers in 29 sectors in EU 1. Legal advisory services in respect of international public law and foreign law 2. Accounting and bookkeeping services 3. Taxation advisory services 4. Architectural services 5. Urban planning and landscape architecture services 6. Engineering services 7. Integrated Engineering services 8. Medical and dental services 9. Veterinary services 10. Midwives services 11. Services provided by nurses, physiotherapists and paramedical personnel 12. Computer and related services 13. Research and development services

21 Temporary Entry for CSS in EU 14. Advertising services 15. Market Research and Opinion Polling 16. Management consulting services 17. Services related to management consulting 18. Technical testing and analysis services 19. Related scientific and technical consulting services 20. Maintenance and repair of equipment 21. Chef de cuisine services 22. Fashion model services 23. Translation and interpretation services 24. Site investigation work 25. Higher education services (only privately-funded services) 26. Environmental services 27. Travel agencies and tour operators' services 28. Tourist guides services 29. Entertainment services other than audiovisual services

22 Access for CF Independent Professionals in EU 1. Legal advisory services in respect of international public law and foreign law (i.e. non-eu law) 2. Architectural services 3. Urban planning and landscape architecture services 4. Engineering services 5. Integrated Engineering services 6. Computer and related services 7. Research and development services 8. Market Research and Opinion Polling 9. Management consulting services 10. Services related to management consulting 11. Translation and interpretation services

23 Mutual Recognition Have to discuss mutual recognition within three years (Art. 85) Professional associations in EU and CF have to make recommendations for MRA to EC & Cbbean authorities Need common standards

24 SPECIFIC COMMITMENTS 1. Accounting 2. Architecture 3. Engineering 4. Management Consulting 5. Tour operator services

25 Accounting & Bookkeeping other than "auditing services"- Mode 4 CY, DE, EE, ES, IE, IT, LU, NL, PL, PT, SI, SE, UK: NONE. AT: The employer must be member of the relevant professional body in the home country where such body exists. BE: Economic needs test, except for CSS when the annual wage is above the amount defined by the relevant laws and regulations. FR: Authorisation requirement. BG, CZ, DK, EL, FI, HU, LT, LV, MT, RO, SK: Economic needs test.

26 Architecture & Urban Planning & Landscape architecture CY, EE, EL, FR, IE, LU, MT, NL, PT, SI, SE, UK: NONE. ES, IT, PL: Economic needs test for independent professionals. LV: Economic needs test for CSS. FI: The natural person must demonstrate that (s)he possesses special knowledge relevant to the service being supplied. BE: Economic needs test, except for CSS when the annual wage is above the amount defined by the relevant laws and regulations.

27 Architecture, UP & Landscape DK: Economic needs test except for CSS stays of up to three months BG, CZ, DE, FI, HU, LT, RO, SK: Economic needs test. AT: Planning services only, where: Economic needs test. HU: residence requirement

28 Architecture, etc. DK: Economic needs test except for CSS stays of up to three months BG, CZ, DE, FI, HU, LT, RO, SK: Economic needs test. AT: Planning services only, where: Economic needs test. HU: residence requirement

29 Engineering & integrated engineering CY, EE, EL, FR, IE, LU, MT, NL, PT, SI, SE, UK: NONE. ES, IT, PL: Economic needs test for independent professionals. LV: Economic needs test for CSS. FI: The natural person must demonstrate that (s)he possesses special knowledge relevant to the service being supplied. BE: Economic needs test, except for CSS when the annual wage is above the amount defined by the relevant laws and regulations.

30 Engineering & integrated eng. DK: Economic needs test except for CSS stays of up to three months BG, CZ, DE, FI, HU, LT, RO, SK: Economic needs test. AT: Planning services only, where: Economic needs test. HU: Residence requirement

31 Management Consulting (CPC 865) CY, DE, EE, EL, FR, IE, LV, LU, MT, NL, PT, SI, SE, UK: NONE ES, IT, PL: Economic needs test for independent professionals BE: Economic needs test, except for CSS when the annual wage is above the amount defined by the relevant laws and regulations. DK: Economic needs test except for CSS stays of up to three months AT, BG, CZ, FI, HU, LT, RO, SK: Economic needs test.

32 Services related to Management Consulting (CPC 866) CY, DE, EE, EL, FR, IE, LV, LU, MT, NL, PT, SI, SE, UK: NONE ES, IT, PL: Economic needs test for independent professionals. BE: Economic needs test, except for CSS when the annual wage is above the amount defined by the relevant laws and regulations. DK: Economic needs test except for CSS stays of up to three months AT, BG, CZ, FI, LT, RO, SK: Economic needs test. HU: Economic needs test, except for arbitration and conciliation services (CPC 86602), where: Unbound.

33 Travel Agencies & Tour Operators (including tour managers (CPC 7471) AT, CY, CZ, DE, EE, ES, FR, IT, LU, NL, PL, SI, SE, UK: NONE. BE: Economic needs test, except for CSS when the annual wage is above the amount defined by the relevant laws and regulations. DK: Economic needs test except for CSS stays of up to three months IE: Unbound except for tour managers. BG, EL, FI, HU, LT, LV, MT, PT, RO, SK: Economic needs test

34 Travel Agencies & Tour Operators (including tour managers (CPC 7471) AT, CY, CZ, DE, EE, ES, FR, IT, LU, NL, PL, SI, SE, UK: NONE. BE: Economic needs test, except for CSS when the annual wage is above the amount defined by the relevant laws and regulations. DK: Economic needs test except for CSS stays of up to three months IE: Unbound except for tour managers. BG, EL, FI, HU, LT, LV, MT, PT, RO, SK: Economic needs test

35 Tourist Guide Services (CPC 7472) SE: None. AT, BE, BG, CY, CZ, DE, DK, EE, FI, EL, HU, IE, IT, LV, LU, MT, NL, RO, SK, SI, UK: Economic needs test ES, FR, LT, PL, PT: Unbound

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