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To expound, by integrating the markets of the region this would result in a regional economy that is based on a variety of products and services ridding member states of a lot of the problems that now plagues the community. Holding strong to its purpose, the development of the Caribbean Single Market and Economy was born in all efforts of ensuring economic integration via market integration. Especially since a lot of the members demonstrate tremendous dependency on one or two products or services that brings in substantial revenue. In so doing, the community could become a strong competitor in the international markets. In addition, it would increase employment resulting in improved work and living conditions for the citizens of this community. This is palpable with the European Union which came about some 30 years after the introduction of CARICOM. It is important to note that the Treaty of Rome bears resemblance to the Treaty of Chaguaramas. This is significant as it demonstrates the vision which went into the planning and implementation of this venture.
With the geographic locations of these member countries, how does the community compete with the likes of the US with over 300 million people and the European Union with approximately 400 million people? Well CARICOM has responded by strengthening participation in the global arena through bilateral trade agreements with Venezuela, Colombia, Dominican Republic, Cuba and most recently, Costa Rica. While multilateral trade agreements are also in the works with the World Trade Organization, NAFTA and the European Union. These are all good signs, and according to Edward Seaga (former Prime Minister of Jamaica) the problem with CARICOM at present is that CARICOM functions in pieces and patches without any overriding authoritative machinery. All major decisions are made in the roundabout process, first at the level of the cabinets of member governments, then regional Heads of Government meetings.
Thus the hurdle is to get CARICOM member states to function as one body rather than on an individualistic manner through tighter bonds in the administrative level. The present bureaucratic means of negotiation and decision making should be restructured to allow for the regions governments to meet on a regular basis, formulate policies, and implement plans as one body from conception to implementation.
To validate the above point, Mr. Seaga states the smaller islands are not sympathetic to any tax regime which deprives them of customary import revenues that have to be reduced to create the common external tariff essential to the establishment of a single market. He continues by adding the exchange control regime of the regional group of countries is largely based on a pegged exchange rate which has provided great economic stability for the majority. In contrast, the larger countries are operating on flexible rates and, with the exception of petroleum-rich Trinidad, doing poorly, neither side shows any sign of abandoning its own system. How could this be I asked? And an example is given, for decades; the countries with a cruise ship program have not been able to make a common approach to the industry in order to raise fees payable to the governments. The industry, as a consequence, continues to pay a pittance, because there is no collective pressure on it to enforce change.
As he closes he states that on a broader basis, there are hard decisions to be taken in discussions with the European Union which require a CARICOM consensus in each case. But again, what is good for the financially stronger countries have not necessarily been agreeable to the smaller states. Take for example, the Dominican Republic, as a member of CARIFORUM, wishes to be included in the discussions on sugar and bananas. This is not agreeable to all CARICOM states.
If member states of CARICOM cannot agree on things that are for the better good of the community then is the whole premise behind CARICOM a plausible one? Tell us what you think.
