Transcript Slide 1

CARICOM
The CARICOM Single Market
and Economy
CARICOM
Longstanding Vision of Regional
Cooperation and Integration
1928 Regional Cricket Team to England
1948 Regional University - UCWI
1958 Political Federation (-1962)
1968 Caribbean Free Trade Area (CARIFTA)
1973 Caribbean Community and Common Market
1989 Decision to establish the CSME
2006
Entry into force of the Revised Treaty
CARICOM
Main Pillars of the Community
3
Foreign Policy
Coordination
With a security underpinning
CARICOM
Governance and Decision Making
Structure
The principal Organs of the Community
(a) the Conference of Heads of Government
(b) the Community Council of Ministers
Principal Organs assisted by the following Organs:
(a) The Council for Finance and Planning
(b) The Council for Trade and Economic Development
(c) The Council for Foreign and Community Relations
(d) The Council for Human and Social Development
(e) The Council for National Security and Law Enforcement
and serviced by
The CARICOM Secretariat, headed by the Chief Executive
Officer (CEO) of the Community, the Secretary General
CARICOM
The CSME
A single enlarged
economic space
Free movement
of goods, services,
capital, technology,
labour
Common
external
trade policy
Non- discriminatory
access to the region’s
resources & markets
for CARICOM
nationals
The Single Market
CARICOM
CSME - The Context
In deciding to establish
the CARICOM Single
Market and Economy
(CSME), The Heads of
Government noted the
‘need to work expeditiously
together to deepen the
integration process and
strengthen the Caribbean
Community in all of its
dimensions to respond to
the challenges and
opportunities presented by
the global economy’
Building, out of
separate national
economies, a
single, integrated,
globally
competitive,
modern market
economy within an
economic space
called the CSME
CARICOM
Challenges
Significant geopolitical and geo-strategic shifts
Need to improve standard of living
Imperative of optimising development potential of the Region
Crime and security, disaster management
Need for Improved management of the regional environment
The CSME
CARICOM
Framework
Expected Outcomes
Greater opportunities for
employment, investment,
production and trade for
Caribbean people
Full employment of labour
and other factors of
production
Competitive products of
better quality and prices
Improved standards of
living and work
Improved services provided
by enterprises and
individuals
Accelerated. co-ordinated
and sustained economic
development
Greater opportunity for travel
for nationals to study and
work in CARICOM countries
Increased economic
leverage and effectiveness
vis a vis other states,
groups of states and
entities
CARICOM
New market
opportunities
The CSME
facilitates a
collective
approach to
trade
relations
with third
countries
Collective
negotiation of
trade rules and
agreements
Negotiation to
attract new
investment and
joint ventures
Collective defense
of economic
interests in the
global
marketplace
The Revised Treaty of Chaguaramas
Legal
Architecture
of the CSME
Inter-governmental Agreements
Implementation of harmonised
laws, regulations, orders and rules
Dispute Settlement Regime
Enforcement under Domestic
Law
Enforcement under the
Caribbean Court of Justice (CCJ)
CARICOM
Specialised Institutions and
Structures
Caribbean Court of Justice
Caribbean Regional Organisation for Standards and Quality
Regional Accreditation Agency for Education and Training
Competition Commission
Caribbean Agriculture Health and Food Safety Agency
CARICOM Development Fund and Development Agency
Caribbean Regional Negotiating Machinery
CARICOM
Caribbean Court of Justice
Two jurisdictions
an original jurisdiction
an appellate jurisdiction
In its original jurisdiction the court has compulsory
and exclusive jurisdiction for the interpretation and
application of the Revised Treaty and is tasked with
the responsibility to hear and deliver judgments on
disputes arising between:
contracting parties to the Agreement
contracting parties and the Community
Community nationals, contracting parties, Community
institutions or between national themselves
January 2006 - Revised Treaty of
Chaguaramas entered into force through
ratification by twelve Member States
January 2006 - The CSM became
operational; six Member States
signed the Agreement
July 2006 – Six other Member States
signed the Agreement
- The Bahamas is not a part of the CSM
- Haiti is not yet a member of the CSM
- Montserrat is awaiting entrustment
The Single Market
CARICOM
Single
Market
Policy
Framework
is in place
Regimes
Free intra-CARICOM movement of
goods
Intra-CARICOM trade accounts for nearly
20% of merchandise exports and 12%
of merchandise imports
Free intra-CARICOM trade in
services
Free movement of capital and skills
exist for :
Right of establishment
Access to land
CARICOM
The Single Economy
Monetary policy coordination
Financial policy harmonisation
Main
Aspects
Capital market integration
Fiscal policy coordination and
harmonisation
Investment and incentives policy
harmonisation
Sectoral policy harmonisation re
industry, agriculture, tourism,
transport and other services
CARICOM
The Human Face of the CSME
Key Desired Outputs
The CSME is anchored in
the skills, abilities, attitudes,
perceptions, motivations
and expectations of people
The extent to which the
provisions translate into
real opportunities
depends on the adequate
development of our
Human Resources
An informed public
which understands
and supports the
CSME and
participates actively
in the CSME
Stronger sense of
Community and
greater social
cohesion
CARICOM
CARICOM Development Fund
To compensate for the adverse effects of trade
distortion and economic dislocation arising
during intra-CARICOM integration process
To foster and support economic
transformation to enhance competitiveness
in the global economy
To promote cohesion and to counter
polarization discrepancies and anticonvergence tendencies and asymmetries
CARICOM Development Fund (2)
CARICOM
Assistance in the form of loans, grants
and interest subsidy grants
Initial capitalisation of US 250M
US$120M to be provided by Member States
US$130M to be raised from development
partners
Expected to be operational by mid 2007
CARICOM
Regional Development Agency
Operationalisation of the CARICOM Development Fund
to be complemented with the establishment of a
Regional Development Agency (RDA)
Purpose: - to identify and mobilise technical assistance,
“to assist disadvantaged countries, regions and sectors
towards becoming economically viable and competitive by
appropriate interventions of a transitional or temporary
nature”
Proposals for the establishment of the Agency
currently being elaborated
Agency expected to become operational within the next
year
Strategic Partnerships
The successful operation of the
CSME is contingent on the
development and maintenance
of strategic partnerships among
governments, institutions, civil
society, the private sector, IFIs
and development partners