The CARICOM Single Market and Economy

The CARICOM Single Market and Economy (CSME) represents a further step in development from what was previously a free trade area.  The former regional free trade area known as CARIFTA dealt with eliminating tariffs in trade on goods.  CARICOM further developed this concept to a common market for trade in goods to  effectively eliminate duties and non-tariff barriers to trade and set up mechanisms to regulate trade in goods, and to present a single common external tariff (CET) to non-members.

The CSME is designed to further that integration to include the following elements:

• the freedom of movement of capital
• the freedom of movement of people

• a common currency

• removal of restrictions on the provision of services
• a regulatory mechanism for judicial system for resolving disputes among member countries.

For further reading, please click http://www.caricom.org/singlemarket.htm 

We are supposed to remove most of the restrictions for the provision of services within CARICOM before the end of 2005.  This date has been hotly contested by the major CARICOM companies who wish this deadline to be brought forward as it needs to be accomplished before the start of the FTAA agreement.

At the time of writing, we are not satisfied with the progress made.  We will be urging our respective governments to bring this matter to a head by taking decisive actions at the Council for Trade and Economic Development (COTED) meeting at the end of January and the CARICOM Heads of Governments scheduled for February.  We will report further as information becomes available.

Finally, it is important for us to implement the provisions of CSME as it will affect the FTAA. This will be the subject of our next issue.