COUNCIL DECISION

of 27 September 2010

on the position to be taken by the European Union in the Joint CARIFORUM-EU Council established by the Economic Partnership Agreement between the CARIFORUM States, of the one part, and the European Community and its Member States, of the other part, with regard to the amendment of Annex IV to the Agreement by incorporating the commitments of the Commonwealth of The Bahamas

(2010/669/EU)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular the first subparagraph of Article 207(4), in conjunction with Article 218(9) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1) The Economic Partnership Agreement between the CARIFORUM States, of the one part, and the European Community and its Member States, of the other part (1) (the Agreement), was signed on 15 October 2008, and has been provisionally applied since 29 December 2008.

(2) Article 63 of the Agreement provides that the negotiation of the schedule of commitments in services and investment for the Commonwealth of The Bahamas be finalised no later than six months after the signature of the Agreement.

(3) Such negotiations were succesfully concluded on 25 January 2010.

(4) The results of such negotiations should be set out in a Decision of the Joint CARIFORUM-EU Council established by the Agreement.

(5) The Union should therefore take the position in the Joint CARIFORUM-EU Council as set out in the draft decision attached to this Decision,

HAS ADOPTED THIS DECISION:

Sole Article

The position to be taken by the European Union in the Joint CARIFORUM-EU Council established by the Economic Partnership Agreement between the CARIFORUM States, of the one part, and the European Community and its Member States, of the other part, with regard to the amendment of Annex IV to the Agreement shall be based on the draft decision of the Joint CARIFORUM-EU Council attached to this Decision. However, formal changes to that draft decision not affecting its substance may be agreed without requiring this Decision to be amended.

Done at Brussels, 27 September 2010.

For the Council

The President

K. PEETERS

(1)

OJ L 289, 30.10.2008, p. 3

ANNEX

DRAFT

DECISION No …/2010 OF THE JOINT CARIFORUM-EU COUNCIL

of

amending Annex IV to the Economic Partnership Agreement between the CARIFORUM States, of the one part, and the European Community and its Member States, of the other part by incorporating the commitments of the Commonwealth of The Bahamas

THE JOINT CARIFORUM-EU COUNCIL,

Having regard to the Economic Partnership Agreement between the CARIFORUM States, of the one part, and the European Community and its Member States, of the other part (hereinafter referred to as the Agreement), signed in Bridgetown, Barbados on 15 October 2008, and in particular Article 229(1) and the second sentence of Article 229(4) thereof,

Whereas:

(1) The Agreement was signed on 15 October 2008, and has been provisionally applied since 29 December 2008.

(3) Such negotiations were succesfully concluded on 25 January 2010, and it has been agreed that the schedule of commitments of The Bahamas should be incorporated into the Agreement by means of a Decision of the Joint CARIFORUM-EU Council.

(4) It is therefore appropriate to amend Annexes IV E and IV F of the Agreement in order to introduce the commitments in services and investment for the Commonwealth of The Bahamas, to delete the exclusion of The Bahamas in point 3 of Annex IV E and in point 6 of Annex IV F, and to provide for the provisional application of those amendments until the entry into force of the Agreement,

HAS ADOPTED THIS DECISION:

Article 1

1. Annex IV of the Agreement is hereby amended as follows:

(a) Annex IV E is amended as follows:

(i) point 3 is replaced by the following:

‘3.

This Schedule includes all CARIFORUM States, except Haiti, unless otherwise stated. Subject to reservations, limitations or exclusions applying to all sectors, sub-sectors of A, B, C and D that are not listed are open in all Signatory CARIFORUM States without limitations on market access or national treatment. CARIFORUM States that are not listed in sub-sectors included in this list are, subject to reservations, limitations or exclusions otherwise applying to all sectors, open without limitations on market access or national treatment in these sub-sectors. All reservations, limitations or exclusions included in this Annex applicable to the CARIFORUM States and indicated as “CAF” therein are not applicable to The Bahamas.’;

(ii) after the Schedule, the Appendix to Annex IV E — The Bahamas, as set out in Annex I to this Decision, is hereby added;

(b) Annex IV F is amended as follows:

(i) point 6 is replaced by the following:

‘6.

This Schedule includes all CARIFORUM States, except Haiti, unless otherwise stated.’;

(ii) after the Schedule, the Appendix to Annex IV F — The Bahamas, as set out in Annex II to this Decision, is hereby added.

2. All other provisions contained in points 1 to 9 of Annex IV E, and in points 1 to 11 of Annex IV F are applicable to The Bahamas.

Article 2

1. This Decision shall enter into force on the day of its adoption.

2. From the entry into force of this Decision and until the entry into force of the Agreement, the amendments to Annex IV E and IV F shall be provisionally applicable.

Done by written procedure pursuant to Article 11(3) of the Annex I to the Decision of 17 May 2010, No 1/2010 of the Joint CARIFORUM-EU Council.

ANNEX I

‘Appendix to Annex IV E — The Bahamas

Sector or sub-sector

Description of reservations, limitations or exclusions

ALL SECTORS

Exchange control

1.	Residents need to obtain approval by the Central Bank to operate foreign currency or Bahamian dollar accounts and to acquire foreign currency assets, pursuant the Exchange Control Regulations Act and Finance Regulations. Non-residents have a right to operate foreign currency accounts.

Resident juridical persons may receive approval to operate foreign currency accounts to cover expenses directly incurred in foreign currency. Both non-resident juridical persons and foreign nationals may be approved to operate Bahamian dollar accounts to satisfy recurring expenses in Bahamian dollars.

3.	All applications for the above-mentioned exchange control approvals must satisfy the requirements of The Bahamas’ National Investment Policy in terms of the sectors and activities in which foreign investments are permitted.

For the purposes of exchange controls, a “resident” is either a citizen of The Bahamas, or a licensed juridical person, either foreign or domestic-owned, that is permitted to engage in transactions with other residents. A non-resident is either a foreign national or an juridical person that is not permitted to do business with residents, irrespective of whether a physical presence in The Bahamas is maintained.

Land holding

Foreign persons and juridical persons wishing to acquire real estate for commercial purposes must apply for a permit from the Investments Board. Foreign persons or juridical persons intending to acquire more than two contiguous acres of land for any purpose must obtain a permit from the Investments Board.

Investment

The Bahamas prohibits the exploration, exploitation and processing of radioactive materials, the recycling of nuclear fuel, the generation of nuclear energy, the transportation and storage of nuclear waste, the use and processing of nuclear fuel and regulation of its application for other purposes, as well as the production of heavy water.

Investments by foreign persons, with a minimum capitalization of USD 250 000 , are approved by the National Economic Council (NEC) under terms of the National Investment Policy (NIP) on the basis of an economic needs and benefits test. Major criteria under the NIP include employment generation, skills development, regional development, local needs and environmental impacts. Joint ventures between Bahamian and foreign investors are also subject to NEC approval under the NIP on the basis of the economic needs and benefits tests outlined above.

AGRICULTURE, HUNTING, FORESTRY

Agriculture and hunting

(ISIC rev 3.1: 01)

None

Forestry and logging

(ISIC rev 3.1: 02)

None

B.	FISHING (ISIC rev.3.1: 05)

All vessels engaged in fishing within the Exclusive Economic Zone must be solely owned by Bahamian natural or juridical persons as indicated in the Fisheries Resource (Jurisdiction and Conservation) Act.

C.	MINING AND QUARRYING

Certain activities in small scale mining may be reserved to Bahamian nationals.

The Bahamas reserves the right to grant approval for private or public exploration, mining, processing, importation and exportation of minerals.

The Bahamas reserves the rights in the exclusive economic zone, continental plateau and the seabed for prospecting and exploration.

Mining of coal and lignite; extraction of peat

(ISIC rev 3.1: 10)

None

Extraction of crude petroleum and natural gas

(ISIC rev 3.1: 11)

None

Mining of metal ores

(ISIC rev 3.1: 13)

None

Other mining and quarrying

(ISIC rev 3.1: 14)

None

MANUFACTURING

Manufacture of food products and beverages

(ISIC rev 3.1: 15)

None

Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials

(ISIC rev 3.1: 20)

The Bahamas reserves the right to adopt or maintain restrictions on small scale investment in this sector.

Manufacture of refined petroleum products

(ISIC rev 3.1: 232)

None

Manufacture of chemicals and chemical products other than explosives

(ISIC rev 3.1: 24 excluding manufacture of explosives)

None

Manufacture of machinery and equipment

(ISIC rev 3.1:29)

The Bahamas reserves the right to adopt or maintain measures on investment in the production of weapons and ammunition.

Manufacture of furniture; manufacturing n.e.c.

(ISIC rev 3.1: 36)

The Bahamas reserves the right to adopt or maintain restrictions on small scale investments in this schedule.

PRODUCTION, TRANSMISSION AND DISTRIBUTION ON OWN ACCOUNT OF ELECTRICITY, GAS, STEAM AND HOT WATER

Production of electricity; transmission and distribution of electricity on own account

(part of ISIC rev 3.1: 4010)(1)

Unbound

Manufacture of gas; distribution of gaseous fuels through mains on own account

(part of ISIC rev 3.1: 4020)(2)

Unbound

Production of steam and hot water; distribution of steam and hot water on own account

(part of ISIC rev 3.1: 4030)(3)

Unbound

ANNEX II

‘Appendix to Annex IV F — The Bahamas