Bahamas’ EPA offer accepted
Nassau Guardian, Bahamas
Bahamas’ EPA offer accepted
By Candia Dames Guardian News Editor
9 November 2009
More than one year after The Bahamas signed onto the Economic Partnership Agreement (EPA), the European Commission has accepted this country’s services offer, according to Minister of State for Finance Zhivargo Laing.
"It’s important to the extent that it now confirms for us that we will be able to annex our offer to the completed agreement and it means that we have been able to preserve the essence of our National Investment Policy to the satisfaction of the Bahamian public and also to the satisfaction of our European partners," said Laing in an interview with The Nassau Guardian.
"I think it now means that we can move on, begin with the implementation of the Economic Partnership Agreement and to give Bahamians an opportunity that that agreement provides and also to put behind us any concerns relating to losing any benefits that we now have under that arrangement."
On October 15, 2008, The Bahamas signed the EPA, a trade agreement that provides for more liberal trade between CARIFORUM countries and the European Community.
It will progressively allow certain exports from the two regions to enter each other’s territories duty-free and quota free. It also defines how trade in services and investment can take place between the two regions.
Although The Bahamas signed the EPA in October 2008, it was only set to immediately begin enjoying benefits on the export of goods until its services schedule is added to the agreement, which was to be concluded within six months of the signing. (The sixth month mark was April 15, 2009).
However, the European Commission had raised questions about The Bahamas’ services offer.
Asked why Bahamians should care that the services offer has finally been accepted, Laing said the jobs of many Bahamians in the fishing and manufacturing industries depend on access to Europe’s markets at rates that are lower than in other parts of the world.
"That means that those businesses can thrive," Laing said. "They can continue to employ Bahamians. They can continue to provide opportunities for Bahamians."
He said Bahamians are going to be able to access a larger market than had previously been available.
"We have secured that for them for generations to come," Laing said.
"And I think that’s an important thing for us moving forward as an economy and a country."
Laing said European Commission officials are expected in the country next month or in January to initial the services offer.
The services offer originally presented mirrored that of the National Investment Policy, which reserves 13 sectors exclusively for Bahamians, including the wholesale and retail sector; commission agencies engaged in the import/export trade; real estate and the domestic property management agencies; domestic newspapers and magazines; domestic advertising and public relations firms; nightclubs and restaurants except specialty, gourmet and ethnic restaurants and restaurants operating in a hotel, resort complexes or tourist attractions; security services; distribution of building supplies; construction companies and other areas.
In unveiling the services schedule last year, Laing maintained that for each of these areas, the government’s offer is unbound, meaning that The Bahamas defines the rules in those areas, which call for no foreign participation as a general rule.
"We are not opening up any areas to foreign participation that are not now opened," the minister stressed at the time. "We are not opening up those areas to non-Bahamian participation... This just now makes it very clear for European and CARIFORUM investors what our rules are in writing," he said at the time.
Asked yesterday whether significant changes were made to the offer in order for the European Commission to accept it, Laing said, "The offer is still consistent with our National Investment Policy, but it’s a less conservative offer than we had originally made."
