Transcript No Slide Title

CARICOM SINGLE MARKET AND
ECONOMY (CSME)
A DEFINITION AND GOVERNMENT’S
VIEW AND VISION
November 10, 2004
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STRUCTURE OF THE ECONOMIES
OF THE CARIBBEAN
COMMUNITY
1. Small – geography, labour force, consumer
base, natural resources
2. Vulnerable – economic and other shocks e.g
natural disasters and rigid structure of the
economies
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Background
Why a CARICOM Single Market & Economy?
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CARIFTA in 1968
CARICOM in 1973
With globalization in the 1980’s, the Treaty of
Chaguaramas proved an inadequate mechanism for
facilitating responses to a new world economy which
involves larger markets, intense competition and the
free movement of capital
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Background continues….
The emergence of mega trading blocs in
different parts of the world and the
development of the Free Trade Areas of the
Americas, meant a Single Market and
Economy became an urgent necessity for our
region.
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CSME: Origin and Definition
It was therefore clear that a new framework for
growth was needed:
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1989 – decision to create the CARICOM Single
Market and Economy (CSME)
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The CSME was created by the Revised Treaty of
Chaguaramas through the amendment to nine (9)
Protocols of the Treaty of Chaguaramas which had
established CARICOM in 1973
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CSME: Origin and Definition
The CSME is established on the premise that it will
facilitate the pooling of resources to improve our
competitiveness
It is geared towards minimizing the problems of
small size and structural deficiencies
The Single Market is to be created by January 1,
2006
The Single Economy is an ongoing effort
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CSME’s Global positioning in the
International Trade Arena
Background
WTO
EU- FTAA Bi-laterals
ACP
CSME
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CSME’s Global positioning in the
International Trade Arena continues…
The
Member States of the CSME are also members
of the World Trade Organization (WTO), which is
the overarching body governing international trade.
The
CSME therefore must be ‘WTO Compliant’
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CSME’s Global positioning continues…
The CSME offers a secure platform for the Caribbean’s
entrance into the FTAA
It allows our firms to test the waters of new regional markets
– increasing competitiveness and preparedness for global
competition
The CSME will facilitate greater economies of scale and most
certainly the creation of Pan-Caribbean companies and brands
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CSME Membership (13)- Market of 6 million
people
Antigua & Barbuda Montserrat
Barbados
St. Kitts & Nevis
Belize
St. Lucia
Dominica
Grenada
St. Vincent & the
Grenadines
Suriname
Guyana
Trinidad & Tobago
Jamaica
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CSME - Definition
The CSME is a single enlarged economic space created
through the removal of restrictions and resulting in the
Free movement of:
Goods
Services
Persons
Capital
Technology
It confers the right on CARICOM nationals to establish
business in any CARICOM Member State and to be
treated in the same manner as a national of that State11
PILLARS OF CSME
The five (5) main pillars of CSME are:
Provision for the free movement of Capital
Provision for the free movement of Goods,
Services and People within the CSME
The establishment of common trade and
economic policy
Harmonization of economic, fiscal and monetary
policies
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A common currency
Rights to CARICOM Nationals
Under the CSME
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Free Movement of Persons
Freedom to provide Services
Right to Establish a Commercial Presence
Free Movement of Capital
Free Movement of Goods
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Implementation of the CSME
10 Key Elements
Treaty Revision
Free Movement of Persons
National Administration
Free Movement of Capital
Enforcement, Regulation and
Supporting Institutions
Common External Policy
Right of Establishment
Public Education
Programme
Harmonization of Laws
Free Movement of Services
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Free Movement of Persons under the
CSME
Hassle-Free Travel
Service Providers
Skilled Persons
Other Persons agreed by the Conference of
Heads
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Free Movement of Persons continues..
Approved categories of wage earners (skilled
persons) that do not require a work permit are:
University graduates
Media workers
Artistes
Sportspersons
Musicians
T & T has fully implemented the Free Movement
of Skilled Nationals Act
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Free Movement of Persons continues…
Skilled Certificate
The movement of skilled persons is facilitated
through the issuance of a Skilled Certificate,
also called the Caribbean Community Skilled
Qualification based on a set of criteria by the
CARICOM Secretariat.
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Free Movement of Persons continues…
Other Category of persons:
Self Employed Service Providers
Entrepreneurs
Technical, Managerial and Supervisory Staff
Spouses and immediate dependents
Persons consuming services abroad
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HASSLE-FREE TRAVEL
The following measures have been deemed critical
For hassle-free travel
Use of ID cards or other forms of identification with
a photograph
Establishment of CARICOM National/ NonCARICOM National lines at all ports of entry
Use of a Common E/D Form
Decision on a CARICOM Passport
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Freedom to Provide Services
Free trade in services require a set of
administrative arrangements which allows
CARICOM nationals to provide services within
any Member State without restrictions
Article 37 of the revised Treaty requires Member
States to abolish discriminatory restrictions on the
provision of services within the Community in
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respect of Community nationals
Freedom to Provide Services continues…
Each Member State has notified the CARICOM
Secretariat of its existing restrictions on the
provision of services and has agreed on a timetable
for removal ending December 31st 2005
Trinidad and Tobago has a total of 15
restrictions to remove, on an agreed time of
December 2004
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CSME – Ways a Service can be Traded
Mode 1 – Cross Border
Mode 2 – Consumption Abroad
Mode 3 – Commercial Presence
Mode 4 – Movement of Natural Persons
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Right to Establish a Commercial Presence
continues…
Article 32 of the revised Treaty grants the Right of
Establishment…as such an individual wishing to
establish a business must be engaged in non-wage
earning (self employed persons) activities of a
commercial, industrial, agricultural, professional
or artisan nature or form a company in any of
those types of economic activity
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Right to Establish a Commercial Presence
Ease of entry to establish a commercial presence
and indefinite stay to do so
Ease of administration for the registering and/or
incorporation of companies
Access to capital in the receiving member state
Access to land, building and other property for
the purpose of establishing a business
Freedom of entry for managerial, supervisory
and technical staff, spouse and immediate
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dependent family members
Harmonized Companies’ Legislation
This harmonized legislation seeks to provide conditions
whereby companies will be able to operate across border
as if they were operating in their own Member State
The mechanisms that are expected to be in place are:
-a system of registration of companies and supporting
institutions and administrative infrastructure
-a central depository for information on
companies incorporated and registered within the CSME
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FREE MOVEMENT OF CAPITAL
Trinidad and Tobago has abolished Foreign
Exchange Controls and there are no
restrictions to Capital Market activity.
Currently Trinidad and Tobago, Barbados
and Jamaica comprise the Regional Stock
Exchange
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COMMON EXTERNAL POLICY
This pertain to the regime governing the
Trade in Goods. Trinidad and Tobago has
fully implemented the fourth phase of the
Common External Tariff
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HARMONIZATION OF LAWS
Trinidad and Tobago has been officially notified
of five (5) areas:
 Competition
Policy
 Anti-Dumping and Countervailing Duties
 Legislative Regime for the Movement of
Factors
 Consumer Protection
 Customs Legislation
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Implementation Status
 February 13, 2003 – Barbados, Jamaica and
T&T committed to being CSME ready by
2004
Other Member States -
2005
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Trinidad and Tobago’s Success
80% ready and progressing steadily
Cabinet’s decision to enact the Treaty into
domestic law
Establishment of all the necessary national
and regional administrative structures
Full implementation of the CET
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Trinidad and Tobago’s Success
Free movement of five categories of
skilled persons
The abolition of foreign exchange controls
and restrictions to capital market activity
T & T already has a National Standard of
Bureau
Fair Trading Authority to be established
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Trinidad and Tobago’s Success
 The Accreditation Council
has been
established
 Least number of legislative and
administrative restrictions to remove
 Embarked on an Attachment
Programme
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Trinidad and Tobago’s Concerns
 Model legislation
 Dispute settlement
 Contingent rights
 Reciprocity
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The Attributes of Trinidad and
Tobago’s Progress
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Ministry of Foreign Affairs
Ministry of Trade and Industry
Inter-Ministerial Consultative Committee
Business and Labour Advisory Committee
Chief Parliamentary Counsel
CARICOM Secretariat
CSME Unit of Trinidad and Tobago
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Benefits under the CSME
 Goods
are being traded in free market
conditions
 People of approved categories are moving
freely
 Capital is moving – Jamaica and T & T
have no exchange control
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Overall Benefits under the CSME
 Increase
Inflows of New Capital,
Entrepreneurship and Technology from
other Member States
 Larger Market
 Improved
Opportunities
Service Sector
 Greater Opportunity for Travel,
Study
and Work in CARICOM Countries
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Overall Benefits under the CSME
continues…
 Increased
Employment Opportunities
and Improved Standard of Living
 Secure platform for our entrance into the
FTAA
 Greater economies of scale – PanCaribbean Brands
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Overall Benefits under the CSME
continues…
 Strengthened
competitiveness
 Lower consumer prices
 Creation of regional companies
 Increased opportunities to invest through
direct stock ownership or mutual fund
investments
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Public Education Programme
An intensive National PEP has begun, and
includes information-sharing in the print
and electronic media as well as outreach
sessions with the public at large
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CSME Public Education Programme
Advertising
Public Relations
Person-Person Meetings
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The CSME tests our capacity, and will, to do
what is necessary
 Globalization presents a harsh reality for small
states
 The survival of the Caribbean hinges on our
preparedness to face open international
competition and to adapt to technological
developments.
 The CSME is our policy instrument for
enhanced international competitiveness and
greater prosperity for all our people.
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GOVERNMENT’S VISION
Enhance competitiveness to meet the challenges of
globalization and liberalization – CSME
Developing a human resource base to produce a
competent, productive and knowledgeable
workforce – Knowledge based society
Pursuing sound policies to continue economic
growth – Services and Investment
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GOVERNMENT’S VISION
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Developing a human resource base to produce a
competent, productive and knowledgeable
workforce – Knowledge based society:
•Free movement of Skills
•Accreditation Council
•National Training Agency
•E-Commerce
•Human Resource Development Agenda
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Pursuing sound policies to continue
economic growth – Services and
Investment
– Services contribute approx. 63% of the
GDP
– Services Trade Policy
– Investment Promotion Policy
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THANK YOU
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CONTACT INFO
Website:
www.csmett.com
E-mail:
[email protected]
Telephone: 627-CSME (2763)
Fax:
624-9944
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