copyright 2007 ministry of finance and the economy (industry and commerce on the mark: get set ready...

Copyright 2007 Ministry of Finance and thCopyright 2007 Ministry of Finance and the Economy (Industry and Commercee Economy (Industry and Commerce

On the Mark: Get SetOn the Mark: Get Set Ready Steady Go Ready Steady Go

The CARICOM Single Market The CARICOM Single Market and Economyand Economy


Presentation OverviewPresentation OverviewBackground of CARICOMBackground of CARICOMWhat is the CSME What is the CSME Instruments of the CSMEInstruments of the CSMEWhy the CSME?Why the CSME?Importance of the CSMEImportance of the CSMEEconomic Impact of the CSMEEconomic Impact of the CSMESocial Impact of the CSMESocial Impact of the CSMEConclusionsConclusionsQuestions and AnswersQuestions and Answers


Background on the Caribbean Background on the Caribbean Community (CARICOM)Community (CARICOM)

The Integration process dated back to The Integration process dated back to 1958 with the establishment of the 1958 with the establishment of the British West Indies Federation.British West Indies Federation.

Signing of the CARIFTA Agreement on Signing of the CARIFTA Agreement on May 1May 1stst 1968. 1968.

The Treaty of Chaguaramas The Treaty of Chaguaramas established the Caribbean Community established the Caribbean Community (CARICOM) on August 1(CARICOM) on August 1stst 1973. 1973.


Member States of the Caribbean Member States of the Caribbean Community (CARICOM)Community (CARICOM)


What is the CARICOM Single What is the CARICOM Single Market and Economy (CSME)Market and Economy (CSME)

The CSME was endorsed by the 13The CSME was endorsed by the 13thth Meeting of the Conference of Heads Meeting of the Conference of Heads in 1992.in 1992.

It is an instrument to facilitate the It is an instrument to facilitate the economic, social, market, and human economic, social, market, and human development of Member States in a development of Member States in a liberalized and globalized liberalized and globalized environment through the pooling of environment through the pooling of resources.resources.


What is the CARICOM Single What is the CARICOM Single Market and Economy (CSME)?Market and Economy (CSME)?

The Basic Objectives of the CSMEThe Basic Objectives of the CSMEEnhanced levels of increased competitiveness.Enhanced levels of increased competitiveness.

Full employment of labour and other factors of Full employment of labour and other factors of production.production.

Expansion of trade and economic relations with Expansion of trade and economic relations with other Caribbean, Latin and Central American other Caribbean, Latin and Central American Countries.Countries.

Accelerated, co-ordinate and sustained economic Accelerated, co-ordinate and sustained economic development and convergence.development and convergence.

The achievement of a greater measure of economic The achievement of a greater measure of economic leverage and effectiveness of Member States in leverage and effectiveness of Member States in dealing with third states ordealing with third states or groups. groups.



Components of the CSMEComponents of the CSME

1.1. Single MarketSingle MarketIt is a market area created from the It is a market area created from the unification of national markets from unification of national markets from several countries.several countries.

Allowing for the free movement of Allowing for the free movement of CARICOM goods, services, people and CARICOM goods, services, people and capital throughout the Communitycapital throughout the Community

Without tariffs, barriers and restrictionsWithout tariffs, barriers and restrictions..



Single EconomySingle Economy

It is the creation of an economic space that It is the creation of an economic space that approximates a single country from the approximates a single country from the economies of several countries.economies of several countries.

It is an arrangement in which foreign It is an arrangement in which foreign exchange, interest policies, tax regimes, exchange, interest policies, tax regimes, and laws are harmonized.and laws are harmonized.

Thus the creation of an inclusive Trade Thus the creation of an inclusive Trade Policy.Policy.


Why CSMEWhy CSMEGlobalization and LiberalizationGlobalization and LiberalizationSlow Internal DevelopmentSlow Internal DevelopmentLimited Opportunities and growth Limited Opportunities and growth Small economiesSmall economiesVulnerability to economic shock, Vulnerability to economic shock, natural disasters, and structure of natural disasters, and structure of economyeconomy Rigid economic structure based on Rigid economic structure based on preferencespreferences


Instruments of the CSMEInstruments of the CSMECCJ is the anchor to CCJ is the anchor to

the CSME: the CSME: interpreting the interpreting the trading rules of the trading rules of the Community.Community.

The movement of The movement of services from one services from one Member State to Member State to another. another. SSS


Instruments of the CSMEInstruments of the CSMEThe movement of The movement of goods from one goods from one member country to member country to another without another without restrictions.restrictions.


Instruments of the CSMEInstruments of the CSMEThe movement of The movement of all forms of capital all forms of capital without without restrictions. restrictions.


Instruments of the CSMEInstruments of the CSMEThe phase movement The phase movement of certain categories of certain categories of person including, of person including, University graduates, University graduates, media workers, media workers, sportsperson, artistes, sportsperson, artistes, musicians, (nurses, musicians, (nurses, teachers 2006) teachers 2006) persons with technical persons with technical vocational training, vocational training, CXC’s and Associate CXC’s and Associate Degrees July 2007)Degrees July 2007)


Importance of the CSMEImportance of the CSMEIt prepares the region for a higher It prepares the region for a higher level of international competitiveness level of international competitiveness in the face of globalization and in the face of globalization and liberalization.liberalization.

It gives the Community added It gives the Community added economic and political strength when economic and political strength when participating within the international participating within the international

fora.fora.


Importance of the CSMEImportance of the CSMEIt provides the platform whereby the ever It provides the platform whereby the ever important global standards are tested important global standards are tested regionally through the CSME.regionally through the CSME.

It provides the platform for a development It provides the platform for a development strategy which is social, human, economic, strategy which is social, human, economic, political, infrastructural and legal.political, infrastructural and legal.

It allows for the restructuring of national economies It allows for the restructuring of national economies becoming more competitive and efficient both becoming more competitive and efficient both nationally and regionally. (business, people, state nationally and regionally. (business, people, state etc.)etc.)


Economic Impact of the CSMEEconomic Impact of the CSMEThe economic impact of the CSME to Antigua and The economic impact of the CSME to Antigua and

Barbuda relates to the following:Barbuda relates to the following:

Antigua and Barbuda’s Financial Contributions to Antigua and Barbuda’s Financial Contributions to existing and new regional institutions.existing and new regional institutions.

Financial Contribution to the Development Fund Financial Contribution to the Development Fund $14million USD$14million USD

The establishment and restructuring of key The establishment and restructuring of key Ministry’s and Departments: Labour, Health, Ministry’s and Departments: Labour, Health, Immigration, Social Transformation, Legal Affairs Immigration, Social Transformation, Legal Affairs and Justiceand Justice


Economic Impact of the CSMEEconomic Impact of the CSMEThe harmonization of the Community Tax

regime:

Implementation of VAT, Income, and Property Tax.

The expansion of our economic space:Can businesses compete?Would the CSME create monopolies?


Economic Impact of the CSMEEconomic Impact of the CSME

The implementation of national The implementation of national monitoring mechanisms to support monitoring mechanisms to support the provisions of the Treaty in the provisions of the Treaty in relation to:relation to:

Movement of goodsMovement of goods

Legal IssuesLegal Issues

LabourLabour


Social Impact of the CSMESocial Impact of the CSMEMeasuring the true social impact of the Measuring the true social impact of the

CSME on Antigua and Barbuda there must CSME on Antigua and Barbuda there must be a comprehensive “social” census of our be a comprehensive “social” census of our country.country.

EducationEducationHealth servicesHealth services

WelfareWelfareGender: YouthGender: Youth

HousingHousing


Social Impact of the CSMESocial Impact of the CSMEWithout such a survey the likely social Without such a survey the likely social

impact of the CSME would test the:impact of the CSME would test the:Reliability and efficiency of our Reliability and efficiency of our Health servicesHealth services

Highlight the gender disparities Highlight the gender disparities (Workforce: Labour)(Workforce: Labour)

Discrimination: gender, age etc.Discrimination: gender, age etc.


Social Impact of the CSMESocial Impact of the CSME

Education (structures, curriculum, Education (structures, curriculum, policies meeting the demands of our policies meeting the demands of our country)country)

What is the nature, scope and reach What is the nature, scope and reach of the present welfare programs of the present welfare programs (adult care, orphans etc.) (adult care, orphans etc.)


ConclusionsConclusions

The CSME has set us on the mark, it The CSME has set us on the mark, it is for Member Countries to get set is for Member Countries to get set and go.and go.

It is for Member Countries to enact It is for Member Countries to enact the right strategies and policies the right strategies and policies towards their development.towards their development.


Contact InformationContact InformationMinistry of Finance and the EconomyMinistry of Finance and the Economy

(Industry and Commerce)(Industry and Commerce)Radcliffe StreetRadcliffe StreetP. O. Box 1550P. O. Box 1550

St. John’sSt. John’sTel #: 462-1542Tel #: 462-1542Fax#: 462-1625Fax#: 462-1625

E-mail: [email protected] E-mail: [email protected]

copyright 2007 ministry of finance and the economy (industry and commerce on the mark: get set ready...

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