compet eng

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Information about compet eng

Published on May 7, 2008

Author: Stella


Slide1:  FTAA AND COMPETITIVENESS Mr. Emilio Bruce Jiménez. Chairman of the Board of Directors. September 2002. FTAA:  FTAA I. Introduction Free trade is the most effective channel through which countries could achieve development since: The removal of tariffs eliminates relative price distortions that result in an inefficient allocation of productive resources. There is a tendency to specialise only in those goods where it has been successful. First Principle: Achieve strong, professional and independent administration and exercise leadership in the Chamber of Commerce. Second Principle: Create new statutes (reduce the number of members on the Board of Directors, strengthen the administrative role of the Executive Council and define the functions of the Executive Director). FTAA :  FTAA Consumers enjoy a wider variety of products and better price and quality. National producers will need to raise their standards of efficiency to international levels. The “anti-exporter attitude” disappears since national producers have not yet captured the domestic market, which represents an incentive to explore export opportunities. FTAA :  FTAA II. Basic considerations of the negotiations Topic 1: Market access. There should be no exclusions (most goods or services should be zero rated following the entry into force of the Agreement, if not, they should be subjected to a period of tariff reduction until the tariffs are completely eliminated). Slide5:  A single methodology must be established and approved for eliminating non-tariff barriers to trade. Rules of Origin must be universally applied to all countries and their certification will be the responsibility of the exporters themselves. :  Rules of Origin must be universally applied to all countries and their certification will be the responsibility of the exporters themselves. A set of general binding customs principles should be defined. :  A set of general binding customs principles should be defined. FTAA:  FTAA Topic 2: Agriculture. Countries should agree to negotiate standards, technical rules and sanitary and phytosanitary measures, in accordance with what is established in the WTO Agreement on Technical Barriers to Trade and the WTO Agreement on Sanitary and Phytosanitary Measures. Sanitary and phytosanitary regulations with a level exceeding international regulations must be maintained on a scientific and technical basis. FTAA:  FTAA Topic 3: Investments. Countries must agree to eliminate bureaucratic obstacles that hinder free access to the foreign exchange market, in addition to which there must also be free mobility for the repatriation of capital and benefits. Investment must be granted only those incentives sanctioned by the WTO. FTAA:  FTAA Topic 4: Services. The agreement should have complete coverage as far as services are concerned (financial services, professional services, insurance, etc). There should be standardised criteria for recognising qualifications and licenses for providing services. Complete liberalisation of the trade in services in the Continent should be sought. FTAA:  FTAA Topic 5: Government Procurement. Should include all products and services negotiated in the Agreement and all State institutions. An objective criterion must be defined for evaluating all offers. The Agreement should include all bidding phases, including direct purchases. FTAA:  FTAA Topic 6: Intellectual Property Rights. Since all countries of the continent belong to the WTO and are obligated to adjust their legislation to the Agreement on Trade-Related Intellectual Property Rights (TRIP’s), regulations should be established to protect Intellectual Property Rights that are superior to the standards provided in the TRIP’s Agreement, and whose point of departure should be the related NAFTA regulations. FTAA:  FTAA Topic 7: Subsidies, antidumping and countervailing duties. All production and export subsidies should be identified, reported and eliminated within a specified timeframe, never exceeding that fixed for the reduction of tariffs. Regulations must adhere strictly to what is established in the WTO “Agreements on Safeguard Measures” and on “Unfair Trade Practices”, in order to simplify procedures and reduce periods of research and resolution. FTAA:  FTAA Safeguard measures will not be recurrent, will be applicable only during the transition period and will have a maximum duration of 1 calendar year. Safeguards should be applied equally in all FTAA member countries. FTAA:  FTAA Topic 8: Competition Policy. All countries must have before January 1, 2005, national legislation to promote competition, so as to prevent any benefits derived from the Agreement from being tarnished by uncompetitive practices. The resulting agreement on this issue must promote the standardisation of national legislation in this area. FTAA:  FTAA Topic 9: Dispute Settlement. Access to dispute settlement should be guaranteed for all physical or juridical persons, on the condition that legitimate interest is expressed. Dispute settlement bodies should be promoted among members (mediation, conciliation and arbitration). Information exchange schemes should be created among the competent bodies in countries, which would ensure direct and efficient response mechanisms for the dispute procedure. FTAA:  FTAA Topic 10: Small Economies. Countries enjoying greater relative development must agree to provide “small economies” with technical and financial assistance, in order to improve their institutional mechanisms for ensuring compliance with FTAA and WTO regulations in general. They must also agree to facilitate the transfer of technology to small economies to develop E-Commerce. COMPETITIVENESS :  COMPETITIVENESS I. Levels that should be pursued by Costa Rica. Country competitiveness: favourable business climate for national and foreign companies. Sector competitiveness: positioning of each sector in the market, especially in external markets. Company competitiveness: sales dynamism and success in penetrating new markets. COMPETITIVENESS:  COMPETITIVENESS II. Fundamental Principles: Competitiveness is not a static condition that is achieved, but rather a continuous process of improvement in the pursuit of changing objectives. Company competitiveness is the duty of every company, while country competitiveness is the responsibility of the State. In pursuing country competitiveness, a stable and secure business climate must be maintained, a climate that would also instil confidence in entrepreneurs and investors. COMPETITIVENESS :  COMPETITIVENESS III. Costa Rica’s Positive aspects: Relative macroeconomic stability. Stable political system. Highly trained work force. Favourable geographical, geological and climatic conditions. Duty Free Regimen. Acceptable degree of insertion into international markets. More peaceful social environment than other countries. COMPETITIVENESS:  COMPETITIVENESS IV. Costa Rican aspects that should be improved: Legal and economic regulation (still too much). Should progress in deregulating and simplifying procedures. Encourage investment in Research and Development. Efficiency and agility in the Judicial and Customs Systems. Eliminate distortions in domestic production costs generated by the State. COMPETITIVENESS:  COMPETITIVENESS Road, port and airport infrastructure. Access facility and cost of logistic support services (telecommunications, insurance, transport, energy, financial services, etc.). Greater competition should be sought in these markets. Reduction in the fiscal deficit and State Debt. Reduction of the “informal” sector of the economy. Slide23:  FTAA: possible and attractive. FTAA: the future of the American continent. THANK YOU

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