Formation of CARICOM Overview
Let start by defining “CARICOM”. “CARICOM”. It stands for the the Caribbean Community and Common Market Market.. It was establis establish h by the treated treated of Chaguar Chaguaramas amas,, which which was signed signed by four countries, Trinidad and Tobago, Barbados, Jamaica and Guyana and came into effect on August, August, 1973. Howeve Howeverr after after,, many years years of existe existence nce CARICOM CARICOM has extende extended d to sixteen (16) members and eleven (11) CARICOM observers. The sixteen CARICOM members are Antigua and Barbuda, Belize, Grenada, Montserrat, St. Vincent and the Grenadines, Turks and Caicos Islands, The Bahamas, British Virgin Islands, Guyana, St. Kitts and Nevis, Suriname, Barbados, Dominica, Jamaica, Saint Lucia, and Trinidad Trinidad and Tobago. Tobago. The eleven CARICOM observers observers are Anguill Anguilla, a, The Cayman Islands, Haiti, Puerto Rico, Aruba, Colombia, Mexico, Venezuela, Bermuda, Dominican Republic, and a nd Netherlands Antilles. The formation came about when the initial four countries countries governments governments saw the need for an integration of its members and economies, and the creation of a common market. History
The establishment of CARICOM was a result of a 15-year effort to fulfil the hope of regional integration which was born with the establishment of the British West Indies Federation in 1958. When the West Indies Federation came to an end in 1962, came the beginning of what is now called the Caribbean Community. Remember both Trinidad and Tobago and Jamaica establish independence during that same year and with the power to control their own domestic and external affairs. To discuss the concept of the formation of a single market among Caribbean Community, the prime minister of Trinidad and Tobago convened the first heads of government conference in July 1963, in Chaguaramas Trinidad. At this Conference, the leaders of the four (4) Caribbean Countries all spoke clearly of the need for close cooperation with Europe, Africa and Latin America. The firs firstt Heads Heads of Gover Governm nmen entt Conf Confer erenc encee prove proved d to be the the firs firstt in a seri series es of Conferences among the leaders of Commonwealth Caribbean Countries. In July 1965, talks between the Premiers of Barbados and British Guiana and the Chief Minister of Antigua on the possible establishment of a Free Trade Area in the Caribbean resulted in the announcement that month of definite plans to establish such a Free Trade Area. This was carried further in December that year (1965), when the Heads of Government of Antigua, Barbados and British Guiana signed an Agreement at Dickenson Bay, Antigua, to set up the Caribbean Free Trade Association (CARIFTA). (CARIFTA).
-1-
In the interest of common action and close cooperation among all the Commonwealth Caribbean territories, the actual start of the Free Trade Association was deliberately delayed in order to allow the rest of the Region, Trinidad and Tobago and Jamaica and all the Windward and Leeward islands to become members of the newly formed Free Trade Association. The Fourth Heads of Government Conference agreed to establish CARIFTA formally and to incl include ude as many many Commo Commonw nwea ealt lth h Coun Countr trie iess as poss possib ible le in a new new agre agreem emen entt of December 1965. It was also agreed that the Free Trade Association was to be the beginn beginning ing of what what would would become become the Caribbean Caribbean Common Common Market Market which would would be established (through a number of stages) for the achievement of a viable Economic Community of Caribbean Territories. Territories. It was at the Seventh Heads of Government Conference in October 1972, that the Caribbean Leaders decided to transform CARIFTA into a Common Market and establish the Caribbean Community of which the Common Market would be an integral part. At the Eighth Heads of Government Conference of CARIFTA held in April 1973 in Georgetown, Guyana the decision to establish the Caribbean Community was brought into fruition with the consideration of Heads of Government of the draft legal instruments and with the signing by 11 members of CARIFTA (the exception being Antigua and Montserrat). The Accord provided for the signature of the Caribbean Community Treaty on July 4 and its coming into effect in August 1973, among the then four independent countries: Barbados, Guyana, Jamaica and Trinidad & Tobago. The Georgetown Accord also provided that the other eight territories - Antigua, British Honduras, Dominica, Grenada, Saint Lucia, Montserrat, St. Kitts/Nevis/Anguilla and St. Vincent which signed the Accord would become full members of the Community by May 1, 1974. One of the principal issues currently on the regional agenda, was the restructuring of the intergared process in the Community through the formation of a Single Market and Economy. Economy. Where it was at the the eight CARICOM Heads of Government Government Meeting in 1987 that the Prime Prime Minister Minister of Barbados Barbados presented presented the concept establishing establishing a representati representative ve and deliberate institution which associates the people of the Region through their chosen representatives, with the task of promoting the Regional development process. However, two years later in 1989 at the 10th Conference of Heads of Government in Grenada, Barbados presented a discussion paper outlining a proposal for the formation of CSME, and in Marchc1990 an agreement was reached on a draft Inter Governmental Agreement providing for the establishment of the p roposed body. body. A Revised Treaty of Chaguaramas, establishing the Caribbean Community including the CARI CARICO COM M Sing Single le Mark Market et and and Econ Econom omy y (CSM (CSME) E) was was sign signed ed by the the Head Headss of Governm Government ent of the Caribb Caribbean ean Commun Community ity on July July 5 2001 at their their Twentywenty-Sec Second ond Meeting of the Conference in Nassau, Bahamas.
-2-
The work of the CSM&E includes the negotiation of Protocols which will effectively amend the Treaty of Chaguaramas. The first of these, which provides for the restructuring of the Organs and Institutions of the the Commu Communi nity ty,, and and rede redefi fini ning ng thei theirr funct functio ional nal rela relati tion onsh ship ip enter entered ed into into forc forcee provisionally on July 4, 1997. Protocol II, on the rights of establishment, Provision of Services and Movement of Capital will enter into force upon signature by all Member States.
Formation of CSME CSME stands for CARICOM Single Market and Economy. It is a single economic system that is designed to facilitate the pooling of the region’s financial, human and natural resources in order to build the economic capacity required to effectively respond to globalisation and the emergence of mega trading blocs. In 1989, the tenth meeting of the Conference of the Heads of Government of the Caribbean Community recognised the need to deepen the integration process in response to the changing world economic environment. This led to the decision to establish a Single Market and Economy. Economy. Of to date there are 13 member states, they are namely: − Antigua and Barbuda − Barbados − Belize − Dominica − Grenada − Guyana − Jamaica − Monsterrat − St. Kitts and Nevis − St. Lucia Vincent and the Grenadines − St. Vincent − Suriname − Trinidad and Tobago Mission Statement
We envision a Caribbean Community Co mmunity in which every citizen has the opportunity to realise his or her human potential and is guaranteed the full enjoyment of their human rights in every sphere; in which social and economic justice is enshrined in law and embedded in practice; a Community from which poverty, unemployment and social exclusion have been banished; in which all citizens willingly accept a responsibility to contribute to the welfare of their fellow citizens and to the common good; and one which serves as a -3-
vehicle for the exercise of the collective strength of the Caribbean region, and the affirmation of the collective identity of the Caribbean people, in the world community. The CSME will be implemented in two phases; the first phase is CARICOM Single Mark Market et whic which h is expec expecte ted d to be full fully y impl implem emen ente ted d by 1st of Janua January ry 2009. 2009. The CARICOM CARICOM Single Single Market Market is an arrangement arrangement which allows CARICOM CARICOM goods, services, services, people and capital, also movements throughout the Caribbean Community without tariffs and without restrictions which would assist in achieving a single, large economic space, and provide a common economic and trade policy. The basic implementation actions are: − Extension of free movement of labour to teachers, nurses and domestic workers. − Streamlining of procedures for free movement of labour including contingent rights and transfer of social security benefits. − Implementation of free movement of service providers, with streamlined procedures. Implementation of Legal status for the CARICOM Charter for Civil Society. Society. − Implementation of recommendations of the Technical Working Group on Governance alon along g with with the the prep prepar arat atio ion n and and agre agreem emen entt of a regi region onal al Huma Human n Reso Resour urce ce Development. − Establishment and commencement of operations of the Regional Development Fund. − Agreement among Central Banks on common CARICOM currency. − Establishment of the Regional Stock Exchange. The seco second nd phas phasee is carded carded to take take place place betwe between en 2009 2009 and 2015 2015 whic which h incl includ udes es CARICOM Single Economy. The CARICOM Single Economy is an arrangement which furthe furtherr harmon harmonise isess economi economic, c, moneta monetary ry and fiscal fiscal polici policies es and measur measures es across across all Member States of the Caribbean Community to strengthen and support the sustainable development of the region. This would mean the coordination of foreign exchange and interest interest rate policies, policies, the harmonisat harmonisation ion of tax regimes and of laws and the convergence convergence of economi economicc perfor performan mance, ce, common common polici policies es on agricul agricultur turee and the energy energy sector sectorss among other measures. The basic implementation actions for phase two are: Implement entati ation on of common common polici policies es in EnergyEnergy-rel relate ated d indust industrie ries, s, Agricu Agricultu lture, re, − Implem Sustainable tourism and agro-tourism, Transport, and Small and medium enterprises. Harmon oniz izat atio ion n of taxat taxatio ion n syst system ems, s, incen incenti tives ves,, and and finan financi cial al and and regul regulat atory ory − Harm environment. − Harmonisation of fiscal and monetary policies. − Implementation of Regional Competition Policy and Regional Intellectual Property Regime. − Implementation of CARICOM Monetary Union. Some benefits of the CARICOM Single Market and Economy are: − Increased production and trade in goods and services in a combined market of over approximately million persons and for the world beyond
-4-
− Competitive products of better quality and prices enterprises and individuals, including transportation transportation − Improved services provided by enterprises and communication − Greater opportunity for travel − Opportunities for nationals to study and work in CARICOM countries of their choice − Increased employment and improved standards of living The The tar targete geted d area areass of deve develo lopm pmen entt are are econ econom omic ic,, soci social al,, envi enviro ronm nmen enta tall and and governmental. The economi economicc sector sector of the CSME CSME offer offerss an acceler accelerate ated d economi economicc growth growth through through adjus adjustm tmen entt and and tran transf sform ormat atio ion n of regi region onal al econom economie iess and and an impr improv oved ed glob global al competitiven competitiveness ess through through sustained sustained innovation innovation and productivity productivity.. The main drivers drivers of economic growth and transformation are expected to come from the goods and services indu indust stri ries es in the the area area of the the ener energy gy sect sector ors, s, agri agricu cult ltur ure, e, fore forest stry ry and and fish fishin ing, g, manuf manufac actu turi ring ng,, tour touris ism m and some some expor exports ts serv servic ices es.. This This woul would d be achie achieve ved d by a harmo harmoni nisi sing ng of the the fore foreig ign n trade trade polic policie ies, s, human human reso resour urce ce utili utilisa sati tion on,, mone moneta tary ry incentives, transport, investment, financial services, capital market integration, quality infrastructure and functional corporate cooperation. The social element is targeting an investment in the human capital of the member states, reasserting reasserting the role of culture culture by through through education, education, preservati preservation on and presentation presentation of cultural heritage, the use of Information and Communication Technology (ICT) which would focus on skills for employment for both national and regional level and a public policy in labour-management relations all sectors of the work force, inclusive of a decent minimum wage and conditions agreement. The environmental dimension is this harmonization includes the adoption of a common Environmental Regulatory Regime which protects preserves and manages the natural environment to ensure sustainable development, so that investors and other economic agents can operate across the entire space of the CSME on the basis of the same policies and regulations. Also, sponsoring the preparation and publication of a regular State of the CARICOM Environment reports, including the status of implementation of national laws and international commitments relating to the environment with particular attention to prior priority ity issue issuess such such as the coastal coastal and marine marine environm environment ent,, forest forestry ry and waters watershed hed manageme management, nt, 17 waste waste dispos disposal al and recycl recycling ing,, climate climate change change impact impact analys analysis is and adaptation, and natural disasters impact and management. CSME is not a political union but is trying to implement the automatic application of decisions of the Conference of Heads of Government at the national level in certain defined areas, the creation of a CARICOM Commission with Executive Authority, the automatic automatic generation generation of resources resources to fund regional institutions, institutions, the strengtheni strengthening ng of the role of the Assembly of Caribbean Community Parliamentarians. Although the CSME is overflowing with possibilities it should not be regarded as the overall cure for a country’s economic problems.
-5-
The Conference of Heads of Government consists of the Heads of Government of the Member States. Any Head of Government may designate a Minister or other person to represent him or her at any Meeting of the Conference. The Conference is the supreme Orga Organ n of the the Comm Commun unit ity y and and dete determ rmin ines es and and provi provides des policy policy dire direct ctio ion n for for the the Community. Except where otherwise provided in the Revised Treaty of Chaguaramas establishing the Caribbean Community including the CARICOM Single Market and Economy, the Conference is the final authority for the conclusion of treaties on behalf of the the Comm Commun unity ity and and for for enter enterin ing g into into relat relatio ions nshi hips ps betwe between en the the Comm Commun unit ity y and and internationa internationall organisati organisations ons and States States and may take decisions decisions in order to establish establish the financial arrangements necessary to defray the expenses of the Community and is the final authority on questions arising in relation to the financial affairs of the Community. Community. The Conference may establish such Organs or Bodies as it considers necessary for the achievement of the objectives of the Community and issues directives of a general or special character to other Organs & Bodies of the Community, in regards to achieving of the objectives of the Community. Community. Contributing Community Organs and Bodies
Some major major contrib contributi uting ng bodies bodies are the Organi Organisat sation ion of Easter Eastern n Caribb Caribbean ean States States (OECS), the Council for Trade and Economic Development (COTED) and the Caribbean Court of Justice (CCJ). The Orga Organi nisa sati tion on of East Easter ern n Cari Caribbe bbean an Stat States es (OEC (OECS) S) is an inte interr-go gove vernm rnment ental al organisati organisation on dedicated dedicated to economic economic harmonisati harmonisation on and integration, integration, protection protection of human and legal rights, and the encouragement of good governance between countries and depen dependen denci cies es in the the East Easter ern n Cari Caribbe bbean an.. It also also perf perfor orms ms the the role role of spre spread adin ing g responsibility and liability in the event of natural disaster, such as a hurricane. The Council for Trade and Economic Development (COTED) shall be responsible for the promotion of trade and economic development of the Community. In particular, COTED shall promote the development and oversee the operation of the CSME, evaluate and establish measures to enhance production, quality control and marketing of industrial and agricul agricultur tural al commodi commoditie ties, s, establi establish sh and promote promote measur measures es to acceler accelerate ate struct structural ural diversification of industrial and agricultural production, promote and develop policies and programmes to facilitate the transportation of people and goods, promote measures for the development of energy and natural resources, establish and promote measures for the accelerated development of science and technology, promote and develop policies for the protection of and preservation of the environment, promote and develop policies for the enhancem enhancement ent of extern external al economi economicc and trade trade relati relations ons of the Commun Community ity,, and undertake any additional functions remitted to it by the Conference, arising under this Treaty. The Caribbean Court of Justice will serve two main roles. To act as a court that can handle trade disputes amongst CARICOM member states (Original Jurisdiction). A Court
-6-
that will eventually serve as a court of final appeal, replacing the Judicial Committee of the Privy Council in London. The reasons given for the establishment of a supreme appellate court are many and varied, varied, includi including ng a percei perceived ved region regional al disenf disenfran ranchi chisem sement ent with with the Britis British h Judici Judicial al Committee of the Privy Council. The Treaty was revised through a series of protocols - legal instruments setting out the new rules - and in 2001, these protocols were integrated into the Revised Treaty of Chaguaramas establishing the Caribbean Community including the CARICOM Single Market and Economy Econ omy.. The following is the institutional structure of the Community as set out in the Revised Treaty: Principal Organs − The Conference of Heads of Government (and its Bureau) − The Community Council of Ministers (The Community Council) The principal organs are assisted by four 'Organs', three 'bodies' and by the CARICOM Secretariat - 'the Principal Administrative Organ'. The organs are: (COFAP) − The Council for Finance and Planning (COFAP) − The Council for Trade and Economic Development (COTED) − The Council for Foreign and Community Relations (COFCOR) − The Council for Human and Social Development (COHSOD) The bodies are: − The Legal Affairs Committee: provides legal advice to the organs and bodies of the Community Budget Committee Committee (exami (examines nes the draft budget budget and work work progra programme mme of the − The Budget Secretariat and submits recommendations to the Community Council) − The Committee of Central Bank Governors: provides recommendations to the COFAP on monetary and financial matters
-7-
