Services Of the CAribbean SOCA

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Services Of the CAribbeanSOCA

• Creating the conditions for greater services
  trade between CARICOM and the USA

Members..
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Outline

• Overview
• Regional Services
• Work Plan
• US Services Regime and Agreements
• US in GATS
• The Way Forward

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Overview

• Aim To advance new trade and investment
  opportunities between the US and CARICOM service
  sectors and industries
• Launched November 20, 2013 in Washington, DC.
• Focus
• - CBI Enhancement
• - Trade Facilitation

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Rationale

• CARICOM countries only CBI beneficiaries with
  goods-based preference regime with the US
• CARICOM region has become a services-dominated
  economy
• US-CARICOM trade policy and business discourse
  should be expanded to reflect services
• US involvement in TiSA negotiations means CARICOM
  will face a more competitive services trade
  environment

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Regional Services

• CARICOM Services Trade with the world (2012)
• Exports 9.6 billion
• Imports 6.6 billion
• Services sector fastest growing sector in
  CARICOM.
• Services accounts for more than 60 GDP of
  CARICOM countries

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CARICOM Exports of Services to the World 2008
2012 (US,000)
Exporters 2008 2009 2010 2011 2012
CARICOM 10,828,967 9,854,037 10,169,542 15,072,630 9,596,552
Bahamas 2,533,920 2,350,850 2,493,580 2,606,155 2,740,680
Barbados 1,822,480 1,502,829 1,638,150 1,762,510 1,801,308
Belize 386,479 344,382 353,837 340,152 412,990
Guyana 211,880 170,305 248,049
Sources ITC, UNCTAD, WTO joint dataset
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CARICOM Exports of Services to the World 2008
2012 (US,000)
Exporters 2008 2009 2010 2011 2012
Haiti 399,450 378,870 239,010 249,160 278,086
Jamaica 2,795,220 2,650,560 2,634,020 2,620,210 2,673,780
OECS (CARICOM) 1,559,238 1,404,741 1,447,296 1,481,384 1,514,386
Suriname 284,600 286,700 241,400 200,825 175,322
Trinidad and Tobago 935,700 764,800 874,200 5,812,234
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CARICOM Imports of Services from the World 2008
2012 (US,000)
Importers 2008 2009 2010 2011 2012
CARICOM 7,395,512 6,452,095 6,965,414 11,978,403 6,625,911
Bahamas 1,402,900 1,196,060 1,181,100 1,292,419 1,537,661
Barbados 736,019 710,627 733,044 569,957 391,661
Belize 169,575 161,747 162,391 171,083 187,805
Guyana 323,112 272,421 343,834
Sources ITC, UNCTAD, WTO joint dataset
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CARICOM Imports of Services from the World 2008
2012 (US,000)
Importers 2008 2009 2010 2011 2012
Haiti 756,640 772,100 1,277,260 1,140,160 1,089,949
Jamaica 2,367,120 1,880,640 1,824,400 1,946,040 2,034,880
OECS (CARICOM) 916,046 883,919 797,785 792,226 789,836
Suriname 398,100 285,300 259,000 562,518 594,119
Trinidad and Tobago 326,000 383,100 386,600 5,504,000
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Work Plan

• Legislative initiatives in US Congress to address
  CBI expansion
• CBI goods preferences are unilateral, as per US
  law. Providing similar services preferences can
  be proposed and secured in a unilateral manner
  per act of Congress
• Service incentives in US market access for CBI
  CARICOM firms would enhance their ability to
  participate in the US services market
• To date, discussions have taken place with
  trade-related Committees in Congress with request
  for specific proposals to be advanced to Congress

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Work Plan

• Executive action via the 2013 US-CARICOM Trade
  and Investment Framework Agreement (TIFA)
• TIFA can encourage more investment in region in
  services growth
• TIFA agenda and work plan for 2014 is currently
  being discussed and SOCA initiative can fit in
  the discussion
• Room for growth, for example the US-Uruguay
  TIC/TIFA 2007 where preference arrangements for
  services, e-commerce and ICT, and investment,
  resulted in doubling US-Uruguay trade and
  investment flows to 2.2 billion in 2013

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Work Plan

• Business-to-Business (B2B) Partnerships
• Can stimulate US services investment and trade
  across the region
• Areas such as education, medical services, and
  ICTs have a real market need for stimulating and
  supporting new business efforts between US and
  regional firms
• Discussions to advance services focus on CBI
  CARICOM markets to their US services member
  companies already underway by groups such as the
  US Chamber of Commerce and the Association of
  American Chambers of Commerce in Latin America
  and the Caribbean (AACCLA)

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US Services Regime and Agreements

• US FTAs are reciprocal and binding
• US services trade highly competitive. Example
  ICT, Express Delivery Services, Professional
  Services, Financial Services
• US market contains few barriers to services
  imports
• US trade surplus in services is 25 higher with
  trade agreement partners than with other
  countries therefore FTA alternatives should be
  priority for accessing services market

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US in WTO GATS

• No specific commitments
• Medical and dental services
• Maritime transportation
• Conditional commitments
• Services auxiliary to financial administration
• Movement of natural persons
• Services auxiliary to insurance and pension
  funding
• Offshore banking

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Constraints

• Dearth of services data in region
• International agencies do not track small country
  services data
• Hinders specific sector focus
• Collaborate with regional governments as per
  their priority

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Possible services preferences focus

• Financial and Insurance Services
• Education and Training Services including
  Medical and Nursing
• Health / Medical Tourism and Sports-Fitness
  Services
• Entertainment and Film/Music/Audiovisual and
  Creative Industries Services
• Tourism and Travel Services

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Possible services preferences focus

• ICT and Telecommunications Services
• BPO/Call Centres and e-commerce Services
• Energy Services
• Logistics and Transportation Services

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THANK YOU
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Contact

• SOCA Secretariat
• c/o Trinidad and Tobago Coalition of Services
  Industries
• 45 Cornelio Street, Woodbrook
• Port of Spain
• Trinidad and Tobago
• Tele [phone] Fax [phone]
• Email info_at_ttcsi.org Website www.ttcsi.org