The CARICOM Single Market and Economy (CSME) is a plan for deepening the process of regional integration. The protocols amending the Treaty of Chaguaramas will provide the legislative framework for the establishment of the CSME.
National laws, policies and programmes will have to be amended to reflect decisions taken at the regional level. However, it is important to note that the CSME will provide an economic - not political union. Full implementation of the CSME is expected by 2005.
The CARICOM Single Market will allow CARICOM, goods, services, people and capital to move throughout the Caribbean Community without tariffs or other restrictions. It will be a means of achieving a single, large economic area with a common economic and trade policies. Additionally, the CARICOM Single Market Economy will harmonise economic, monetary and fiscal policies and other measures across all member states and so place each member state in a more viable position in hemispheric and international negotiations.
The CSME is already in progress and the free movement of most CARICOM traded goods already takes place and non-tariff barriers (NTB's) where they exist are currently being studied to facilitate their removal.
Recently, at the Caribbean Transnational Conference, for the first time, the private and public sectors engaged in discussions on the CSME and the challenges surrounding the movement of goods, capital labour and other services, the role of the private sector in trade policy and mechanisms for managing the impact of the CSME on the public sector, the business community and society at large. It was felt by all participants at this conference that the CSME will help to overcome the vulnerability and volatility of CARICOM economies by:
Allowing production on a regional basis;
Creating larger and more competitive markets
Facilitating increase in size of CARICOM firms;
Provide a gateway to the global market
Increase the visibility of the region;
Provide a stronger base for external negotiations
Given the benefits and importance of the CSME to the region an action plan was drawn up by the participants to move the CSME forward. This includes the following issues:
Establishing a committee to make recommendations to COTED regarding NTB's;
Private sector to facilitate legal capacity to assist with custom harmonisation;
Full implementation of the CSME must be completed before 2005;
COTED to be modified to include greater private sector representation;
CEO to be appointed with direct responsibility for CSME implementation;
Public education programme to be put in place across the region;
Mechanism for dispute settlement to be implemented.
