CARICOM SINGLE MARKET AND ECONOMY CSME

1. CARICOM SINGLE MARKET AND ECONOMY (CSME)  Presentation by Mr. Norris Herbert Assistant Director, Trade Promotion and Development Ministry of Trade and Industry

2. 2 OVERVIEW Membership and Principles What is the CSME? What are the benefits of the CSME? Progress towards the CSME Challenges of the CSME CSME and Trade CSME and Trade Negotiations SMEs and the CSME Trade Institutions of the CSME Trinidad and Tobago’s Performance in the CSME

3. 3 MEMBERS OF THE CSME (1) MDCs Barbados Guyana Jamaica Suriname Trinidad and Tobago The Bahamas???????

4. 4 MEMBERS OF THE CSME (2) LDCs Antigua and Barbuda Belize* Dominica Grenada Montseratt St Kitts and Nevis Saint Lucia St Vincent and the Grenadines Haiti***

5. 5 PRINCIPLES OF THE CSME Non discrimination Most favoured nation treatment

6. 6 Background Signing of the Treaty of Chaguaramas (1973) marked the establishment of the CARICOM Community (CARICOM) In 1989, 13 of the now 15 members of CARICOM decided on an integrated development strategy to chart their way into the 21st century. This strategy, elaborated in the Grand Anse Declaration has as its key features: Deepening economic integration by advancing beyond a common market towards a Single Market and Economy. Widening the membership and thereby expanding the economic mass of the Caribbean Community Progressive insertion of the region into the global trading and economic system by strengthening trading links with non-traditional partners

7. 7 What is the CSME? Single Market: goods and services Single Economy Coordinated Institutions Harmonized Rules and Procedures

8. 8 Single Market - Goods Free Movement of Goods Establishment of a Common External Tariff Operation of a Common External Tariff Regime of Rules of Origin

9. 9 Single Market - Services Removal of Obstacles to Trade in Services Right of Establishment Provision of Services Movement of Skilled Persons Facilitation of Travel

10. 10 Single Economy Movement of Capital Single (harmonized) currency and foreign exchange policies Coordinated Institutions Harmonized Rules and Procedures e.g Investment Policy Regional Development Fund

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12. 12 Establishment of Regional Trade Blocs Regional Trade Agreements are perhaps an irreversible feature of the multilateral trading system. Regional Trade Agreements are perhaps an irreversible feature of the multilateral trading system.

13. 13 What are the benefits of the CSME Response to Globalization and liberalization   To address limited opportunities and growth   Recognition of changing rules of trade and there increasing importance of secured and predictable access to external markets.   Avoidance of marginalisation    

14. 14 Challenges of the CSME Regional consensus in decision making Transport Infrastructure Language differences Cultural divergences Sense of security

15. 15 Progress towards the CSME – Built in Agenda Electronic Commerce Government Procurement Free Zones Free circulation of goods and services Contingent rights

16. 16 CSME and Trade Thus Article 78 (1) of the Revised Treaty of Chaguaramas reads:   “The goal of the Community Trade Policy shall be the sustained growth of intra-Community and international trade and mutually beneficial exchange of goods and services among the Member States and between the Community and third States.”   In fulfillment of the goal set out in Article 78 (1), one of the objectives to be pursued was the “full integration of the national markets of all Member States of the Community into a single unified and open market area.”

17. 17 CSME and Trade Negotiations Article 80 of the Revised Treaty of Chaguaramas provides that “Member States shall coordinate their trade policies with third states or groups of third states and calls on the community to “pursue the negotiation of external trade and economic agreements on a joint basis.” Thus, CARICOM negotiated as a single entity in the FTAA and is negotiating the EPA’s with the European Union on a regional basis with the inclusion of the Dominican Republic with which CARICOM has a free trade agreement.

18. 18 Negotiating Agenda

19. 19 CBERA/CBTPA EPAs- CARIFORUM ( CARICOM + Dominican Republic)/EC CARIBCAN - CARICOM Countries / Canada CARICOM / Costa Rica Free Trade Agreement (2004) CARICOM / Cuba Trade & Economic Co-operation Agreement (2000) CARICOM / Dominican Republic Free Trade Agreement (1998) CARICOM / Colombia Agreement on Trade, Economic Technical Co-operation (1994) CARICOM / Venezuela Trade & Investment Agreement (1992) CSME and Trade Agreements These are some more of the Trade Agreements in place at this time. These are some more of the Trade Agreements in place at this time.

20. 20 Trade Benefits of CSME Enhances export markets and investment opportunities in the Region Mitigates the impact of trade liberalisation by offering the mechanism of regional blocs, and provides a ‘practice match’ for firms to build capacity to face increased competition  

21. 21 Trade Benefits of CSME The CSME thus provides a platform from which the Region can speak with a common voice in crucial trade negotiations such as WTO and EPA Negotiations. Having one voice allows our concerns to be addressed by the wider international community Concerted action on the full implementation of the CSME helps us to be better able to shape positions in external negotiations and develop our trade policy capacity. We are then in a better position to negotiate with the rest of the world

22. 22 Trade Performance of the CSME

23. 23 CSME Trade Performance 2002/5(EXPORTS) Increasing value of intra regional domestic exports for the CSME; Increasing value of intra regional domestic exports for the MDCs and LDCs; Significant proportion of the intra regional domestic exports for the MDCs .

24. 24 CSME Trade Performance 2002/5(IMPORTS) Increasing value of intra regional imports for the CSME; Increasing value of intra regional imports for the MDCs and LDCs; Significant proportion of the intra regional imports for the MDCs .

25. 25 CSME Exports: Top 3 Countries (2002/5)

26. 26 CSME Imports: Top 3 Countries (2002/5)

27. 27 CSME External Trade Performance: Exports 2002/5 Increasing value of extra regional exports for the CSME; Increasing value of extra regional exports for the MDCs and LDCs; Significant proportion of the intra regional imports for the MDCs .

28. 28 Integral role in the regional development strategy; Important source of growth, innovation,…. in the smaller economies; Provision of new opportunities for SMEs to grow Capitalize on the cultural dimensions and diasporic relationships Targetted industries: tourism and hotel services, furniture, food services, printing and packaging, professional business services SMEs and the CSME: Relationship These are some more of the Trade Agreements in place at this time. These are some more of the Trade Agreements in place at this time.

29. 29 Coordination of technical assistance Application of quality systems and standards and industry benchmarks Wider availability of services Facilitating Equity SMEs and the CSME: Key Inputs These are some more of the Trade Agreements in place at this time. These are some more of the Trade Agreements in place at this time.

30. 30 CARICOM Secretariat Caribbean Negotiating Machinery CROSQ Council for Trade and Economic Development (COTED) Caribbean Court of Justice Community Competition Commission Trade Institutions of the CSME These are some more of the Trade Agreements in place at this time. These are some more of the Trade Agreements in place at this time.

31. 31 Conclusion An established and functioning integration system is an important asset in contemporary trade arrangements, especially in the context of small and vulnerable economies. The CSME must be seen as a vital platform for the region’s trade and economic linkages with the rest of the world

32. THANK YOU!