Donovan C. Walker, Contributor
WITH THE much heralded CARICOM Single Market and Economy (CSME) set for a February commencement it is clear that the regional political leaders together with the regional based technical/operational entities such as CARICOM and the Regional Negotiating Machinery are talking a good talk - ON YOUR MARK!
The various treaties have been signed or modified, legislation is in place in many CARICOM states, CARICOM is gearing itself to manage this process, the Caribbean Court of Justice is being finalised and the Regional Negotiating Machinery continues to work tirelessly to ensure the development and preservation of our regional interests - GET SET!
Caribbean companies, businessmen and nationals are well and fully informed, understand and eagerly expect fantastic benefits from the above exercises, and in the coming weeks expect a revolutionary change in the way the region does business and nationals can move freely throughout the region in pursuit of their profession - GO! NO WAIT - FALSE START?
The CSME is excellent 'talk'. The transformation of this into an excellent 'walk' requires the understanding, willingness and, most importantly, confidence of regional companies and nationals. Unfortunately, even with good efforts made by regional states and local private sector groups to communicate the mechanics and benefits of the CSME it appears that the transformation is slow in coming. The below recent occurrences or issues actually faced by regional companies and professionals serve to highlight the challenges awaiting the regional integration mechanism (in some cases, the names of the affected parties have been withheld to protect their identities):
A Trinidadian company that owns and operates a large international franchise in Trinidad successfully opens an outlet in Jamaica. However, at the same time the company is denied permission to open in Barbados by the Bajan government. Large Jamaican patty and jerk chicken companies also anticipate difficulty in opening their doors in Barbados. Many regional restaurateurs view this action by Barbados as hostile to intra-regional investment in that country.
A Jamaican company considers investing in a large property development in Trinidad. They receive advice that Trinidad legislation at present restricts or discourages land ownership by non-Trinidadians. The investor expresses concern that this legislation is discriminatory and is not inimical to the stated objectives of the CSME.
A well-qualified Jamaican professional is offered employment in Trinidad. She faces considerable bureaucratic delay in obtaining immigration clearance. She opines that this sort of problem appears to 'fly in the face' of the promised 'free movement' of professionals throughout the region.
A few Jamaican manufacturers involved in food processing express concern that the CSME may sound their 'death knell' as cheaper (and more efficiently produced) goods will be imported from Trinidad, driving them out of business and placing hundreds of Jamaicans out of work. They mumble for protective mechanisms such as increased import duties and may eventually make accusations of dumped goods seeking protection on that basis. Again, any efforts by the Jamaican Government to protect these industries may very well run counter to the CSME provisions and objectives.
At present, the Caribbean Court of Justice (CCJ) will be the court of exclusive, original and final jurisdiction of matters relating to the interpretation of the CSME. At this time, only member states have the right to commence an action before that court. What if the state does not have the political will or desire to bring a claimed infringement to the CCJ? In those instances the affected party will have to seek the leave of the CCJ to join an action and espouse a claim.
Some nationals and businessmen rightly argue that they should have the right to directly commence an action before the CCJ to adjudicate on the issue. Perhaps the CCJ treaties and legislation should be amended to allow for such application as happens in certain cases in the courts in the European Union.
Regional manufacturers who export to other CARICOM countries complain that the objectives of the CSME seem only 'lofty goals' far removed from the reality of red tape, port delays, customs duties, tariffs and even corruption faced by them at the ports of an importing state. These manufacturers get the feeling that it is one thing to talk free trade and market access at the state to state level but these goals and objectives are not 'trickling down' to the ports or customs agencies.
The Trinidad & Tobago Chamber of Commerce commented on the CSME process and published a commentary in the Trinidad Guardian. The following extract is of interest " It is still worrisome that a major meeting of Heads of Government of the region could be held in our capital city and the general public (and some notables) seems none the wiser about the CSME. Clearly, much more must be done to educate all our citizens about this project and its implications on their lives. This is not solely a Government function but of the private sector and the labour movement and other elements of civil society".
The above are but a few instances of the state of play of regional trade before the advent of the CSME. Clearly, the CSME is not a 'magic pill' to cure our economic ills nor will it be off to a flying start in February. The above tests and challenges await the CSME.
Donovan C. Walker is an attorney-at-law and partner in the firm DunnCox. He can be contacted at donovan.walker@dunncox.com.
