1. 1 What’s in the EPA for Food & Beverage sector FBIDC /MTI Seminar Opportunities & Challenges in the EU March 23, 2011

2. 2 OUTLINE EPA facts Liberalization Schedule Rules of Origin – Protocol I Questions

3. 3 Introduction Objectives To provide information about the EPA specific to the Food & Beverage Sector; To assist in interpretation of the EPA Liberalization Schedule;

4. Where Does Food and Beverage Fit? ● Food and Beverage is a target industry for diversification of the T&T economy. ● Includes :  Agricultural products  Manufactured and processed foodstuff (including beverages)  Tobacco products 4

5. 5 EPA facts Replaces the Cotonou Agreement; Provides duty-free quota-free access to European markets, with few exceptions; Creates new trading relationship – CARIFORUM States committed to open their markets to European imports over 25 years; Excludes sensitive products from liberalization

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7. Food and Beverage Sector ● Linkages  Agricultural production sector  Manufacturing sector  Printing and packaging sector  Education ● Critical Success Factors  Production efficiency  Reliable source of raw material  Adherence to global standards  Compliance with industry best practice  Able regulatory and legislative environment 7

8. EPA Benefits Some inputs will be cheaper Domestic production is protected Closed collaboration between trade- related institutions (EC and CARIFORUM) Funding from EDF 8

9. 9 EPA Provisions Exclusion from reduction Annex II Chapter 93 – Arms and ammunition Sugar EC may impose MFN duties on sugar exports from CARIFORUM, in excess of 3.5 million tonnes, in a marketing year between October 1, 2009 – September 30, 2015, if imports cause a disturbance to EU sugar market.

10. 10 EPA Provisions Customs Duties etc. Elimination of Customs Duties on EC goods, according to the Schedule of Tariff Liberalization of the CARIFORUM States; Surcharges imposed in connection with customs duties remain until 10 years after signing (2018); Phased reduction of surcharges to begin 8 years after signing (2015); Customs duties do not include internal taxes & charges, antidumping countervailing or safeguard measures and other fees or charges imposed on imports or exports; Fees limited to cost of services provided.

11. 11 Implementation Status Draft legislation approved by LRC in 2010; National Liberalization Schedule amended in 2011 to reflect Motor Vehicles, parts & accessories; Draft legislation includes: EPA text EPA Liberalization Schedule Ninth Schedule to Customs Act

12. EPA Provisions Development Cooperation/Technical Assistance Collaboration between national & regional authorities; Between EC and CARIFORUM Competent Authorities; Exchange of information; Facilitating participation of CARIFORUM states in international standard setting bodies; Trade Defence (Antidumping, Safeguards etc.); Agriculture & Fisheries; Technical Barriers to Trade; Sanitary & Phytosanitary Measures; 12

13. 13 LIBERALIZATIONSCHEDULE

14. CARIFORUM Liberalization Schedule Appendix 1 to Annex III Schedule for all CARIFORUM States Divided into HS categories – HS2002 Regional rate in bold National variation listed below Exclusions 1301 pages in length 14

15. National Liberalization Schedule Ninth Schedule to the Customs Act Contains only products whose tariffs are to be reduced If your product is not there, see First Schedule Ninth Schedule will be created by EPA Act. 15

16. Essentials to use Schedule Basic knowledge of the Harmonized System The HS code for your finished product, inputs to production, substitutes (finished, inputs). Note that Agreement uses HS 2002, but national legislation (Schedule) uses HS 2007 etc. 16

17. 17 ECONOMIC PARTNERSHIP AGREEMENT SCHEDULE

18. RULES OF ORIGIN 18

19. Rules of Origin Protocol I General Provisions on rules of origin Annexes Annex II to Protocol I – product specific rules of origin Forms/certificates (Annexes III – VII) Exclusions to cumulation 19

20. Product Specific Rules Wholly produced Eg. Fish - All materials of Chapter 3 must be wholly obtained Value –added rules Eg. Preserved vegetables/fruits of 2006 – Manufacture in which the value of any materials of Chapter 17 used does not exceed 30% of the ex-works price of the product. 20

21. Product specific rules Change of tariff heading rules Eg. Potato chips (ex 2004) – Manufacture in which all the materials used are classified within a heading other than that of the product Process rules Eg. Vegetable flours (ex 1106) - Drying & milling of leguminous vegetables of heading No. 0708 21

22. Product specific rules Mixed rules Eg. Edible fruits & Nuts (08) – Manufacture in which: all the fruit & nuts used must be wholly obtained; the value of any materials of Chapter 17 used does not exceed 30% of the value of the ex-works price of the product. Majority of rules are wholly obtained rules 22

23. Essentials to use Protocol 1 Basic knowledge of Harmonized system (ex refers to part of a heading) Specific rules are at 4-digit level Know both the general & specific rules of origin Customs & Excise Division is certifying authority for EPA. They will also verify proof of origin. 23

24. 24 QUESTIONS

25. THANK YOU! Contacts Ms. Trudy Lewis Senior Trade Specialist Level 14 Nicholas Tower Tel: 623-2931/4 Ext 2113 Email: lewist@gov.ttlewist@gov.tt Website: www.tradeind.gov.tt Ms. Krysta Ramrattan Economist I Level 14 Nicholas Tower Tel: 623-2931/4 Ext. 2100 Email: ramrattank@gov.tt 25