CARIBBEAN COMMUNITY –BENEFITS AND CHALLENGES OF REGIONAL INTEGRATION

Presented by: Barry Headley, Senior Economist Musa Ali Esq. , Registrar CARICOM Competition Commission Hendrikstraat 69, Paramaribo, Suriname December 15, 2014

Where it all started

Integration timeline

West Indies Federation

• 1958 to 1962 (British Caribbean Federation Act)

• First and only attempt at Political Union

CARIFTA

• 1965-1973 (Dickinson Bay Agreement) • Economic Union (free trade area)

CARICOM

• 1973 – 2001 (Treaty of Chaguaramas) • 2001 – Present (Revised Treaty including the

Caribbean Single Market and Economy (CSME) • Foreign coordination/functional cooperation

Organisation of Eastern Caribbean States (OECS)

Integration timeline

West Indies Associated States of

Ministers

• 1966 to 1981 (Eastern Caribbean Common Market)

• Support the Windward and Leeward Islands in their progress towards independence

OECS

• 1981 to 2010 (Treaty of Basseterre) • Economic integration and cooperation in:

external relations, human and social development, and defence

COECS ECONOMIC UNION

• 2006 to Present (OECS Economic Union Treaty)

Where we are today

Different levels of Integration

MERCOSUR CARICOM OECS

European Union /

USA

BENEFITS OF INTEGRATION

INTEGRATION Harmonised

laws and regulations

Common trade policy

Common External

Tariff (CET)

Free movement of

labour Free movement

of goods and services

Free movement of

capital

Right of establishment

CHALLENGES WITH INTEGRATING 15 SOVEREIGN STATES

• The High Cost/Difficulty in doing business

• Geography/ Inefficiencies in Transportation

• Different legal traditions and systems

• Restricted freedom of movement

• No Currency convertibility

• Lack of Political will

• Customer dis-satisfaction

PROGRESS ON INTEGRATION

CARICOM

Governance/

communication

Legal and Regulatory Framework

Monetary and Fiscal

policy

Partnerships – business and

NGOs Strategic Plan for Economic Development

Social development

Functional Cooperation

LEGAL & REGULATORY FRAMEWORK Member States Should

Agree On: • Harmonised legislation and

administrative procedures

• Examples

• Competition and consumer protection laws

• Business establishment/ registration

• Customs and immigration

• Access to finance

• Social /health services

FUNCTIONAL COOPERATION • Regional Institutions

– Caribbean Community Secretariat (CCS)

– Caribbean Public Health Agency (CARPHA)

– Caribbean Regional Organisation for Standards and Quality (CROSQ)

– CARICOM Competition Commission (CCC)

– Caribbean Regional Institution for Translation and Information (CRITI)

– Caribbean Health and Food Safety Agency (CAHFSA)

OUTSTANDING ISSUES

• No monetary union/currency convertibility (except in OECS)

• Limited coordination of fiscal policy

• Difficulty financing and empowering Regional Institutions

• Economic policy convergence is slow (OECS more advanced)

• Free circulation not activated

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