Members Of The CSME
There are fifteen CARICOM member states. Thirteen are actively participating in the CARICOM Single Market and Economy:
• Antigua and Barbuda
• The Bahamas
• Barbados
• Belize
• Dominica
• Grenada
• Guyana
• Haiti
• Jamaica
• Montserrat
• Saint Lucia
• St Kitts and Nevis
• St Vincent and the Grenadines
• Suriname
• Trinidad and Tobago
Disadvantages Of CSME
OECS Member States as LDC's of CARICOM are likely to be most affected by the establishment of the CSME.
Three main types of disadvantages expected:
1) Disadvantages arising directly from the establishment of the CSME infrastructure which would influence the distribution of gains from market and economic integration.
2) Prior disadvantages e.g.size.
3) Potential disadvantages which may arise from the vulnerability of the economies of specific countries.
Disadvantages of the CSME include small markets, unfair competition, and difficulty incorporating new businesses.
Policies Supporting Proper Functioning Of CSME
There are also a number of economic, fiscal and monetary measures and policies which are also important to support the proper functioning of the CSME.
These include:
Economic Policy measure: coordinating and converging macro-economic policies and performance; harmonizing foreign investment policy and adopting measures to acquire, develop and transfer appropriate technology;
Monetary Policy measures: coordinating exchange rate and interest rate policies as well as the commercial banking market;
Fiscal Policy measures: including coordinating indirect taxes and national budget deficits.
CSME- Caricom Single Market and Economy
Advantages Of CSME
- Possibility for increased production and trade in goods and services in a combined market of over 14 million people; Production of competitive products of better quality and prices; Improved services provided by enterprises and individuals
- Creation of more opportunities for investment.
- Creation of greater opportunity for travel.
- Creation of more opportunities for nationals to study and work in CARICOM countries of their choice.
- Creation of increased employment opportunities and improved standards of living.
- Allows for free movement of goods and services across national borders. This can be a good thing in some aspects as it saves the USA money; but it can also lead to drug cartel ling and other criminal behaviour. People have also been known to illegally catch a ride back to the USA on the boats that are used to transport the goods and services, thus rendering illegal aliens.
Location
- CSME secretariat is located in Turkeyen, Greater Georgetown, Guyana.
Key Elements Of The CSME
- Free movement of goods and services - through measures such as eliminating all barriers to intra-regional movement and harmonising standards to ensure acceptability of goods and services traded.
- Right of Establishment - to permit the establishment of CARICOM owned businesses in any Member State without restrictions.
- A Common External Tariff - 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.
Main Objectives of CSME
- The full use of labour (full employment) and full exploitation of natural resources and capital.
- Competitive production which leads to greater variety and quantity of products and services to trade with other countries.
Key Elements Cont'd
- Free movement of labour - through measures such as removing all obstacles to intra-regional movement of skills, labour and travel, harmonizing social services (education, health, etc.), providing for the transfer of social security benefits and establishing common standards and measures for accreditation and equivalency.
- Harmonization of Laws: such as the harmonization of company, intellectual property and other laws.
- Free circulation - 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.
- 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.
- A Common trade policy - agreement among the members on matters related to internal and international trade and a coordinated external trade policy negotiated on a joint basis.
Brief History Cont'd
Role and Importance of CSME
Brief History of CSME
- The 1973 Treaty also contained provisions relating to the removal of restrictions in respect of the establishment of businesses, provision of services, the movement of capital and the coordination of economic policies.
- By 2002 , the Revised Treaty of Chaguaramas has prescribed the removal of exiting barriers and to establish a Single Market space in which not only goods, but services, capital, technology and skilled persons should freely circulate where Caribbean citizens would enjoy new and unfettered rights of establishment of enterprise anywhere in the region.
- It is designed to represent a single economic space.
- It is the platform from which the Anglophone Caribbean and associated states plan to face the onslaught of globalization
- It was established by the conference of heads of Government at their meeting in Grand Anse, Grenada in 1989.
- In 1973, the integration process was deepened, through the signing of the Treaty of Chaguaramas which included provisions to create a form of Common Market in the region
- To the pre-existing arrangements to support the liberalization of trade in goods was added to the establishment of a common external-tariff, designed to provide some measure of protection to regional industries.
Functions Of CSME As A Unit
- It functions with two (2) officers. They are the trade officer and the trade information officer.