Overview of the CSME[1]

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Copyright 2008 Ministry of Finance and the EconomyCopyright 2008 Ministry of Finance and the Economy(Industry and Commerce)(Industry and Commerce)


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Overview of the CARICOM SingleOverview of the CARICOM SingleMarket and EconomyMarket and Economy

Presenters: Ms. Michelle N. Henry &Presenters: Ms. Michelle N. Henry &Ms. Sherese EdwardsMs. Sherese Edwards Research OfficersResearch Officers

Ministry of Finance and the EconomyMinistry of Finance and the Economy(Industry and Commerce)(Industry and Commerce)



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Presentation OverviewPresentation Overview

Historical Overview of the Integration withinHistorical Overview of the Integration withinCARICOMCARICOM

Reasons for IntegrationReasons for Integration

Importance of the CSMEImportance of the CSME

Basic Provisions of the CSMEBasic Provisions of the CSME

ConclusionConclusion



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Member Countries of CARICOMMember Countries of CARICOM

and Signatories to the CSMEand Signatories to the CSMEAntigua and BarbudaAntigua and BarbudaBarbadosBarbados

Bahamas *Bahamas *

DominicaDominica

GrenadaGrenada

St. Kitts and NevisSt. Kitts and Nevis

St. LuciaSt. LuciaSt. Vincent and theSt. Vincent and the

GrenadinesGrenadines

BelizeBelize

GuyanaGuyana

SurinameSuriname

Haiti *Haiti *

MontserratMontserrat

Trinidad and TobagoTrinidad and Tobago

JamaicaJamaica



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Map of the CaribbeanMap of the Caribbean



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Historical Overview of IntegrationHistorical Overview of Integration

with the CARICOMwith the CARICOMThe History of integration within theThe History of integration within theCaribbean started with the:Caribbean started with the:

Establishment of the British West IndiesEstablishment of the British West IndiesFederation on January 3Federation on January 3rdrd 19581958 May 31May 31stst

1962.1962.

1515thth December 1965 CARIFTADecember 1965 CARIFTA FreeFreeTrade AreaTrade Area



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with the CARICOMwith the CARICOMCARIFTA was transformed into theCARIFTA was transformed into the

Caribbean Community and CommonCaribbean Community and Common

Market.Market.

Signing of the Treaty of ChaguaramasSigning of the Treaty of Chaguaramas

establishing the Caribbean Communityestablishing the Caribbean Community

(CARICOM)(CARICOM) 44thth July 1973July 1973



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CARICOM SECRETARIATCARICOM SECRETARIAT

Turkeyen, Georgetown, GUYANA.Turkeyen, Georgetown, GUYANA.

Tel: (592) 222 0001Tel: (592) 222 0001--75 Fax: (592) 222 017175 Fax: (592) 222 0171

Copyright 2008 Ministry of Finance and the EconomyCopyright 2008 Ministry of Finance and the Economy

(Industry and Commerce)(Industry and Commerce)


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CARICOM Secretary GeneralCARICOM Secretary General

Dr. Edwin CarringtonDr. Edwin Carrington



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GENERAL OBJECTIVES OFGENERAL OBJECTIVES OF

CARICOMCARICOM Improved Standards of living and workImproved Standards of living and work

Full utilization of labour and other factorsFull utilization of labour and other factors

of productionof production Sustained economic developmentSustained economic development

Expansion of trade and economic relationsExpansion of trade and economic relations

with states outside of the communitywith states outside of the community Enhanced levels of internationalEnhanced levels of international

competitivenesscompetitiveness



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with the CARICOMwith the CARICOM

The Grand Anse (Grenada) Declaration in

1989 - set the foundation for theadvancement of the Integration Movement



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Reasons for IntegrationReasons for Integration

Strengthen the Caribbean Community inStrengthen the Caribbean Community in

all of its dimensions to respond to theall of its dimensions to respond to the

challenges and opportunities presented bychallenges and opportunities presented by

the changes in the global economy.the changes in the global economy.

(Grand Anse Declaration)(Grand Anse Declaration)



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Why IntegrationWhy Integration

CARICOM Countries were being forced toCARICOM Countries were being forced tofundamentally adjust : restructure theirfundamentally adjust : restructure theirinternal economies; as a result ofinternal economies; as a result of

globalization and liberalization.globalization and liberalization.

Protected markets were under assault.Protected markets were under assault.

CARICOM Countries were involved inCARICOM Countries were involved inExternal Negotiation.External Negotiation.




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What is the CSME ?What is the CSME ?The CARICOM Single Market and Economy is

the creation of a single enlarged social andeconomic space through the free movementof persons, goods, capital and services.

This CARICOM mandate was established throughthe Revised Treaty of ChaguaramasEstablishing the Caribbean Community

including the CARICOM Single Market andEconomy signed by the Heads of Governmenton 5th July 2001.




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What is CSME?What is CSME?A Single Market (CSM)In 2006 the Single Market came into effect with the

following elements:

Free movement of skills and labour (SkilledCertificate)

Free movement of goods - (Need for regionalshipping line)

Free movement of service

Free movement of Capital

Right to establishment (businesses)

All without tariffs, barriers and restrictions



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What is CSME?What is CSME?

A Single Economy

This will provide further economic, monetary,and fiscal harmonization across all member

states. This will call for all member states coordinating

their policies to facilitate a common foreignexchange rate, interest rate, tax regimes and

laws. ( This is the OECS Reality).Important to Note: The CSME is not a Political

Union.




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It a platform on which to increase theIt a platform on which to increase the

competitiveness of the region.competitiveness of the region.

A market for goods and services of theA market for goods and services of the

region.region.




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The movement of all forms of capitalThe movement of all forms of capital

without restrictions.without restrictions.



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The movement of professionals within theThe movement of professionals within theCommunity:Community:

University GraduatesUniversity Graduates

Media workersMedia workers

Sports PersonsSports Persons

ArtistesArtistes

MusiciansMusicians

TeachersTeachers

NursesNurses




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The CSME gives this region of small states theThe CSME gives this region of small states the

benefit of greater critical mass, pooledbenefit of greater critical mass, pooled

resources, and achieve greater economies ofresources, and achieve greater economies of

scale for enhanced external competitiveness.scale for enhanced external competitiveness.

The CSME serves as a basis for a strongerThe CSME serves as a basis for a stronger

and more effective negotiating and lobbyingand more effective negotiating and lobbying

force than individual territories acting on theirforce than individual territories acting on their

own.own.



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Chapter 8: Competition Policy andChapter 8: Competition Policy andConsumer ProtectionConsumer Protection

Competition PolicyCompetition Policy prohibition of antiprohibition of anti--competitive business conduct whichcompetitive business conduct whichprevents, restricts or distorts competitionprevents, restricts or distorts competition

or which constitutes the abuse of aor which constitutes the abuse of adominant position in the market (Articledominant position in the market (Article169)169)



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Promotion of Consumer Interests in thePromotion of Consumer Interests in the

CommunityCommunity

Protection of consumers fromProtection of consumers from

discrimination against producers anddiscrimination against producers and

suppliers of goods (Article 185)suppliers of goods (Article 185)..

Chapter 9 Dispute SettlementCopyright 2008 Ministry of Finance and the EconomyCopyright 2008 Ministry of Finance and the Economy



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Caribbean Court of Justice (CCJ)Caribbean Court of Justice (CCJ)

Original JurisdictionOriginal Jurisdiction

It ensures uniform interpretation and applicationIt ensures uniform interpretation and application

of the Revised Treaty of Chaguaramas, therebyof the Revised Treaty of Chaguaramas, therebyunderpinning and advancing the CARICOMunderpinning and advancing the CARICOM

Single Market and Economy.Single Market and Economy.



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Appellate JurisdictionAppellate Jurisdiction

As the final court of appeal for memberAs the final court of appeal for memberstates of the Caribbean Community itstates of the Caribbean Community it

fosters the development of an indigenousfosters the development of an indigenous

Caribbean jurisprudence.Caribbean jurisprudence.



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A Practical look at the functioningA Practical look at the functioning

of the CSMEof the CSME

CONTINGENT RIGHTS:CONTINGENT RIGHTS:

Rights entitled to nonRights entitled to non nationals working and living innationals working and living in

another CARICOM Member State, under the same termsanother CARICOM Member State, under the same termsand conditions of nationals of the host country.and conditions of nationals of the host country.

NonNon Discrimination (Article 7)Discrimination (Article 7)

Can the CSME effectively exist without settling theCan the CSME effectively exist without settling theissues on Contingent Rights?issues on Contingent Rights?



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ConclusionConclusion

Do you think the CSME is theDo you think the CSME is the

best option for the Communitybest option for the Communityin a competitive globalin a competitive global

economy?economy?



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Contact InformationContact Information

Ministry of Finance and the EconomyMinistry of Finance and the Economy


Redcliffe StreetRedcliffe StreetP. O. Box 1550P. O. Box 1550

St. JohnsSt. Johns

Tel #: 462Tel #: 462--15421542

Fax #: 462Fax #: 462--16251625

EE--mail: [email protected]: [email protected]




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Thank You


Overview of the CSME[1]

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