By Carl Greaux
While studying at the University of West Indies (UWI) Mona Campus, Jamaica, my Sociology Professor asked me: “Young Mr. Greaux, What do you understand about CSME?” I answered, “The CARICOM Single Market and Economy.” I further went on to say, “That question should be for the politicians, more so the prime ministers of those countries that are involved.” Today, I have come to recognize that the CSME is not just for the politicians but for every citizen of the Caribbean region.
In the Grande Anse Declaration and Work Programme for the Advancement of the Integration Movement, Heads of Government expressed their determination to work toward establishing a single market and economy, which is now known as the CARICOM Single Market and Economy. The CSME is intended to benefit the people of the Region by providing more and better opportunities to produce and sell our goods and services and to attract investment. It will also create one large market among the participating member states.
The main objectives of the CSME are full use of labour; i.e., full employment and full exploitation of the factors of production such as natural resources and capital; and competitive production leading to greater variety and quantity of products and services to trade with other countries. It is expected that these objectives will in turn provide improved standards of living and work and sustained economic development.
The key elements according to the Head of States of the Single Market and Economy include:
• Free movement of goods and services through measures such as eliminating all barriers to intra-regional movement and harmonizing standards to ensure acceptability of goods and services traded (which most countries do not believe in and only in favor when they gain economically);
• Right of Establishment, that is, to permit the establishment of CARICOM-owned businesses in any Member State without restrictions (however, foreign investors are more likely to succeed than investors from the region);
• A Common External Tariff (CET). This is a rate of duty applied by all Members of the Market to a product imported from a country which is not a member of the market;
• Free circulation or free movement of goods imported from extra regional sources which would require collection of taxes at first point of entry into the Region and the provision for sharing of collected customs revenue. The bigger counties still have issues about who should get what and how much;
• Free movement of Capital, through measures such as eliminating foreign exchange controls, convertibility of currencies (or a common currency) and integrated capital market, such as a regional stock exchange. The larger countries now find the stability of the Eastern Caribbean Currency very attractive due to the instability of their respective currencies;
• A Common trade policy which is an agreement among the members on matters related to internal and international trade and a coordinated external trade policy negotiated on a joint basis; and
• Free movement of labour through measures such as removing all obstacles to intra-regional movement of skills, labor and travel; and harmonizing social services (education, health, etc.), providing for the transfer of social security benefits and establishing common standards and measures for accreditation and equivalency. However, there is still no safety net or system in place to deal with the free movement of criminals despite the establishment of the Regional Security System (RSS), the Caribbean Customs Law Enforcement Council (CCLEC), the Association of Caribbean Commissioners of Police (ACCP) and the Caribbean Financial Action Task Force (CFATF). These institutions are in handcuffs because of political expedience.
Heads of Government also expressed their determination to work toward establishing other measures such as harmonization of Laws via the establishment of the Caribbean Court of Justice (such as the harmonization of company, intellectual property and other laws).
There are also a number of economic, fiscal and monetary measures and policies which are important to the proper functioning of the CSME.
As globalization spreads its tentacles, the region must get its house in order. The individual territories, with their small size and limited resources, must embrace the CSME if they are to survive in a world of fierce competition.
