1 Review of the Current Regional Trade and Integration Initiatives, including the PICTA and the EPA Pacific Islands Forum Secretariat TRINNEX - OPPORTUNITIES.

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Review of the Current Regional Trade and Integration Initiatives, including the PICTA and the EPA

Pacific Islands Forum Secretariat

TRINNEX - OPPORTUNITIES IN THE PACIFIC TRADE, INVESTMENT and TOURISM SUPPLY CHAIN”

29-31 August 2010

The Melanesian Hotel, Port Vila, Vanuatu

Background

On 23 June 2000, African, Caribbean and Pacific (ACP) States and the European Union (EU) gathered in Cotonou, Benin, to sign the ACP-EU Partnership Agreement, commonly referred to as the ‘Cotonou Agreement’.

The Agreement, which replaced the Lomé IV Convention, was historic in a number of respects.

One of the ‘pillars’ of the new Agreement, for example, was an innovative economic and trade cooperation framework aimed at establishing new trade agreements leading to liberalisation of trade between parties to the Agreement and including co-operation in a wide range of trade-related areas.

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The EU has been negotiating EPAs with the ACP States since September 2002.

Negotiations in the PACP region commenced in 2004.

EPA to be negotiated must be “instruments for development” furthering poverty reduction, sustainable development, regional integration and integration into the world economy.

Developments in the PACP-EU EPA Negotiations

Negotiations in 2008

dedicated to completing the EPA negotiations between the EU and the PACPS (Fiji and PNG), with a view to sign, notify to the WTO, and start the ratification process of the interim agreement.

PACPS suspended negotiations on services and proposed the inclusion of a rendezvous clause

Trade-related areas such competition, environment and social aspects - not subject to dispute settlement procedures.

the focus be on building capacity and developing the necessary institutional and regulatory environment in the PACPS in these areas.

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Signing of the IEPA by PNG and Fiji

PNG and Fiji also signed the IEPA on 30 July and 1 December 2009 respectively.

PNG has notified the EC that it has provisionally applied the agreement, while Fiji is still in the process of doing so.

The Pacific IEPA was submitted by the European Council to the European Parliament for their assent (to be formally passed) in February 2010 September, October seating Decision expected in December

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PICTA (trade in goods)

PICTA was opened for signature on 18 August 2001 and came into force on 13 April 2003.

PICTA became operational on 1 January 2007, as endorsed by the FIC Trade Ministers in June 2006.

Apart from the seven FICs that have announced readiness to trade under PICTA, Kiribati, Nauru, PNG and Tonga have completed their notification requirements under PICTA but are yet to complete the remaining domestic arrangements before announcing their readiness to trade under PICTA.

FSM has signed the Agreement but yet to accede. Palau and the Republic of the Marshall Islands are yet to become parties to PICTA.

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Strengthen regional economic integration-Pacific Plan Strengthen negotiating positions with trading partners Promote FICs integration into the world economy Meet skills shortages from within region Retain expertise within FICs Retain remittances within FICs

The TMNP Scheme should facilitate movement of professionals and skilled workers within the FICs

1. easy to administer, utilising existing systems

2. easy to use; in particular it must offer an easier route into employment in FICs than the current system

3. economical for those who participate in it

Central to the scheme’s design must be the ‘customer experience’ of the prospective temporary worker.

Note: the scheme does not replace the existing work work permits regime

Tier 1 Professionals who have a minimum of a

bachelors degree from a recognised university with a minimum of 3 years of work experience

Tier 2 Semi-skilled /trades professionals who

have a minimum of diploma or certificate with a minimum of resp. 3 and 5 yeaers of work experience

Tier 1

Open to FIC nationals, citizens or FIC nationals regardless of whether or not the nationals are resident in a FIC and to FIC nationals who have rights of permanent residency in a FIC who are not resident in a FIC [ie. Passport holders and PRs]

No quota restriction

Tier 2

as Tier 1

Subject to a quota

As a first step to progress implementation of

the TMNP Scheme, FICs to:

Recognise existing practices in FICs;

List and exchange overseas universities and training institutions currently recognised by FICs;

Exchange qualification requirements of professionals and semi-skilled /trades professionals currently granted permits to work in FICs;

While - Reaching consensus on regional technical institutions and

universities that should be accorded due recognition by FICs;

Annual minimum quota of Tier 2 workers

Considerations:

By establishing minimum quota all FICs are confirming their commitment to PICTA and the TMNP scheme

Ideally, quotas should be based on labour market data Initially at least, quota should avoid a perceived impact on

domestic labour market Number of TMNP workers should be manageable for

national institutions

The labour market provides the best information to determine minimum quota for TMNP Tier 2 workers

An ‘across the board’ ratio for TMNP workers for all FICs is skewed towards the smallest and the largest FICs, and may pose implementation constraints in the latter, at least initially.

Determining minimum TMNP quota allows any FIC to hire more workers as needed.

FIC Workforce Categories and Suggested Minimum Tier 2 Quota

Niue, Tuvalu, Nauru (<5,000)……………………………20 (2.58-0.96 %)

Cook Islands, Palau (5,000-10,000)……………………30 (0.31-0.51 %)

RMI, Kiribati, FSM, Tonga, Samoa (10,000-50,000)…40 (0.14-0.39 %)

Solomon Islands, Vanuatu (50,000-100,000)..………50 (0.07-0.09 %)

Fiji (100,000-500,000)……………………………………250 (0.04 %)

Papua New Guinea (>500,000).…………………………500 (0.02 %)

FIC Total TMNP allocation………………………………1020 (0.07 %)

TIER 1 + TIER 2

Certification

Use of a Card or Certificate

Validity Duration of employment contract; max 3

yrs

FeesFees confined to administrative costs only

TIER 1 + TIER 2

Entry visa (called a PICTA TMNP Visa) upon arrival in host country

The PICTA TMNP Visa also serves as a work permit

Bonds (cost of a return air ticket) to be paid by employers to undertake responsibility for ensuring the employee complies with their immigration status.

Responsibilities of the home country Ensure workers understand their rights and the restrictions placed

on them Maintain an effective and secure system for certifying applicants

Required action- designated authority in each FIC to put in place measures to address this during processing and vetting of applicants.

Responsibilities of the host country effective regulation of the work environment decent pay and work conditions relative to local workers basic human rights are respected penalising employers as appropriate

Required action- FICs to put in place appropriate laws and regulations

Responsibilities of the employer to

ensure basic human rights of employees are respected provide decent wages and working conditions provide a written contract, maintain good relations with the hosting government inform host government if workers abscond undertake document checks when recruiting to ensure an applicant is eligible to work pay a bond for employees under the scheme.

Action required-FIC to put in place measures to ensure employer compliance. Employers responsible for employees and subjected to penalties if they breach the responsibilities

Responsibilities of the employee

provide accurate and honest the information required abide by the terms of the scheme, their contract of

employment, and the laws of the host country.

Action required-laws and regulations put in place to regulate TMNP employees and penalise employees that breach the conditions of TMNP employment

Identify main designated ministry/department to drive the scheme- eg Ministry for Trade

Identify roles of other departments-immigration, labour, health, education, home affairs etc.

Actions required Form a national TMNP committee Designate national agency to oversee the TMNP scheme Identify “designated entity” for application process Identify other ministries to oversee various TMNP aspects

Regional oversight is required to:

regional focal point for the scheme-ease of reference and information

Management of the scheme provide a registry for those who participate inspect, monitor and advise on country processes for the

proposed PICTA TMNP Scheme

Pacific Islands Forum Secretariat recommended to provide regional oversight

Action required -FICs to consider the practicalities of utilising existing regional agencies such as PIFS to provide oversight and as a registry for the scheme

Pacific Islands Forum Secretariat

Suggested role: Lead regional management role for the

scheme Provide central registry Maintain up to date information on the

scheme Maintain website on the scheme

South Pacific Board of Educational Assessment

Suggested role: Act as Registry for national, regional, international benchmarks for occupations Develop comprehensive list of accredited education and

technical institutes Assess qualifications of individuals in the scheme Collaborate with designated national authorities on

implementation of the scheme

Pacific Immigration Directors Conference

Suggested role: Provide technical assistance to FICs

Immigration Departments

Take on advisory role on the TMNP Scheme

Facilitate implementation of the scheme

TMNP TIER 1 PROCESS for RECOGNISED PROFESSIONALS

Home Country

Host Country

Applicant enquires about TMNP employment opportunities in other FICs; and applies to employer in

FIC. Applicant receives employment contract offer, which would also stipulate that employer is responsible for bond payments

Applicant applies to Designated National Authority (DNA) for TMNP Card /Certificate. Applicant must provide (a) Degree (b) Evidence of work experience (c) Health certificate; (d) Police

clearance; and where applicable, (e) Membership of professional association(s); (e) Job offer; Application process takes max. 2

weeks Designated National Authority vets application and issues TMNP

Card/Certificate valid for the duration of the employment offer

Employer informs Designated National

Authority persons who completed their contracts or

those whose TMNP contracts have been terminated and

ensures that employee returns to home country. Designated National Authority informs Regional TMNP Registry at

PIFS

Applicant reports to Employer who is required to register employee with Designated National Authority in host country and pays

bond

Designated National Authority submits on a weekly basis, a list of those arrived and

registered under TMNP to Regional TMNP Registry at PIFS

. Applicant travels to host country and

after presenting TMNP Card/Certificate, passport and employment contract to the Immigration Officer of the host country on arrival is issued a TMNP Visa valid

for the duration stipulated in the job offer (maximum 3 years).The TMNP

Visa also serves as a permit to work and can be utilised for multiple entry

Regional TMNP Registry at PIFS

TMNP TIER 2 PROCESS for SEMI-SKILLED AND TRADES PROFESSIONALS - SUBJECT to QUOTA

Home Country

Host Country

Applicant enquires about TMNP employment opportunities in other

FICs; and applies to employer in FIC. Applicant receives employment contract offer, which would also

stipulate that employer is responsible for bond payments

Applicant applies to Designated National Authority for TMNP Card /Certificate. Applicant must provide (a) Certificate or

Diploma; (b) Health certificate; (c) Police clearance; and where applicable (d) Membership of professional association(s); (e)

Job offer; application process takes max. 2 weeks. Designated National Authority vets application and issues

TMNP Card/Certificate valid for the duration of the employment offer

Employer informs Designated National

Authority persons who completed their contracts and those whose TMNP contracts

have been terminated and ensures that employee returns to home country. Designated National Authority informs Regional TMNP Registry at

PIFS

Applicant reports to Employer who is required to register employee with Designated National

Authority in host country and pays bond Designated National Authority submits on a

weekly basis, a list of those arrived and registered under TMNP to Regional TMNP

Registry at PIFS Designated National Authority maintains the

quota numbers and the balance to be utilised, and ensures this information is available to potential

employers and publicly (website)

Applicant travels to host country and

after presenting TMNP Card/Certificate and passport and job offer to the

Immigration Officer of the host country on arrival is issued a TMNP Visa valid

for the duration stipulated in the job offer ( maximum 3 years).The TMNP

Visa also serves as a permit to work and can be utilized for multiple entry

Regional TMNP Registry at PIFS

Form working committee for implementation

Identify Lead Ministry managing the scheme

Identify department handling TMNP applications and operational aspects

Review and amend laws and regulations to ensure compliance with TMNP scheme

Form regional working group to oversee implementation of the Scheme

Identify Management Agency for TMNP Scheme

Identify Supporting Agencies Facilitate MRAs negotiations (initially based

on FICs consensus on existing practices) Agree on an implementation timeframe (incl.

deadline for preliminary work, eg. legislation reforms, MRAs, human rights compliance etc)

Thank you

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