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CARICOM SINGLE MARKET & ECONOMY

CARICOM SINGLE MARKET & ECONOMY. CARICOM SINGLE MARKET AND ECONOMY (CSME) A DEFINITION AND GOVERNMENT’S VIEW AND VISION November 10, 2004. CARICOM SINGLE MARKET & ECONOMY. STRUCTURE OF THE ECONOMIES OF THE CARIBBEAN COMMUNITY

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CARICOM SINGLE MARKET & ECONOMY

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  1. CARICOM SINGLE MARKET & ECONOMY CARICOM SINGLE MARKET AND ECONOMY (CSME) A DEFINITION AND GOVERNMENT’S VIEW AND VISION November 10, 2004

  2. CARICOM SINGLE MARKET & ECONOMY 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

  3. CARICOM SINGLE MARKET & ECONOMY Background Why a CARICOM Single Market & Economy? • 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

  4. CARICOM SINGLE MARKET & ECONOMY 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.

  5. CARICOM SINGLE MARKET & ECONOMY CSME: Origin and Definition It was therefore clear that a new framework for growth was needed: • 1989 – decision to create the CARICOM Single Market and Economy (CSME) • 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

  6. CARICOM SINGLE MARKET & ECONOMY 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

  7. CARICOM SINGLE MARKET & ECONOMY CSME’s Global positioning in the International Trade Arena Background EU- ACP CSME WTO FTAA Bi-laterals

  8. CARICOM SINGLE MARKET & ECONOMY 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’

  9. CARICOM SINGLE MARKET & ECONOMY • 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

  10. CARICOM SINGLE MARKET & ECONOMY CSME Membership (13)- Market of 6 million people

  11. CARICOM SINGLE MARKET & ECONOMY • 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 State

  12. CARICOM SINGLE MARKET & ECONOMY 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 • A common currency

  13. CARICOM SINGLE MARKET & ECONOMY Rights to CARICOM Nationals Under the CSME • Free Movement of Persons • Freedom to provide Services • Right to Establish a Commercial Presence • Free Movement of Capital • Free Movement of Goods

  14. CARICOM SINGLE MARKET & ECONOMY Implementation of the CSME 10 Key Elements

  15. CARICOM SINGLE MARKET & ECONOMY • Free Movement of Persons under the CSME • Hassle-Free Travel Service Providers • Skilled Persons • Other Persons agreed by the Conference of Heads

  16. CARICOM SINGLE MARKET & ECONOMY 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

  17. CARICOM SINGLE MARKET & ECONOMY 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.

  18. CARICOM SINGLE MARKET & ECONOMY • 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

  19. CARICOM SINGLE MARKET & ECONOMY 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/ Non- CARICOM National lines at all ports of entry • Use of a Common E/D Form • Decision on a CARICOM Passport

  20. CARICOM SINGLE MARKET & ECONOMY • 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 respect of Community nationals

  21. CARICOM SINGLE MARKET & ECONOMY • 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

  22. CARICOM SINGLE MARKET & ECONOMY 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

  23. CARICOM SINGLE MARKET & ECONOMY 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

  24. CARICOM SINGLE MARKET & ECONOMY • 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 dependent family members

  25. CARICOM SINGLE MARKET & ECONOMY 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

  26. CARICOM SINGLE MARKET & ECONOMY 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

  27. CARICOM SINGLE MARKET & ECONOMY 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

  28. CARICOM SINGLE MARKET & ECONOMY 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

  29. CARICOM SINGLE MARKET & ECONOMY Implementation Status • February 13, 2003 – Barbados, Jamaica and T&T committed to being CSME ready by 2004 • Other Member States - 2005

  30. CARICOM SINGLE MARKET & ECONOMY • 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

  31. CARICOM SINGLE MARKET & ECONOMY • 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

  32. CARICOM SINGLE MARKET & ECONOMY 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

  33. CARICOM SINGLE MARKET & ECONOMY • Trinidad and Tobago’s Concerns • Model legislation • Dispute settlement • Contingent rights • Reciprocity

  34. CARICOM SINGLE MARKET & ECONOMY The Attributes of Trinidad and Tobago’s Progress • 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

  35. CARICOM SINGLE MARKET & ECONOMY 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

  36. CARICOM SINGLE MARKET & ECONOMY Overall Benefits under the CSME • Increase Inflows of New Capital, Entrepreneurship and Technology from other Member States • Larger Market Opportunities • Improved Service Sector • Greater Opportunity for Travel, Study and Work in CARICOM Countries

  37. CARICOM SINGLE MARKET & ECONOMY 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 – Pan-Caribbean Brands

  38. CARICOM SINGLE MARKET & ECONOMY 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

  39. CARICOM SINGLE MARKET & ECONOMY 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

  40. CARICOM SINGLE MARKET & ECONOMY • CSME Public Education Programme • Advertising • Public Relations • Person-Person Meetings

  41. CARICOM SINGLE MARKET & ECONOMY • 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.

  42. CARICOM SINGLE MARKET & ECONOMY 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

  43. CARICOM SINGLE MARKET & ECONOMY CARICOM SINGLE MARKET & ECONOMY • GOVERNMENT’S VISION • \ • 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

  44. CARICOM SINGLE MARKET & ECONOMY • Pursuing sound policies to continue economic growth – Services and Investment • Services contribute approx. 63% of the GDP • Services Trade Policy • Investment Promotion Policy

  45. CARICOM SINGLE MARKET & ECONOMY THANK YOU

  46. CARICOM SINGLE MARKET & ECONOMY CONTACT INFO Website: www.csmett.com E-mail: csme@foreign.gov.tt Telephone: 627-CSME (2763) Fax: 624-9944

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