Presentation by Nitish Munshi Parth Mehrotra Bhavya Bhatnagar Shreyash Patel

Membership and Principles What is the CSME? What are the benefits of the CSME? Progress towards the CSME Challenges of the CSME CSME and Trade CSME and Trade Negotiations SMEs and the CSME Trade Institutions of the CSME Trinidad and Tobagos Performance in the CSME

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MDCsBarbados Guyana Jamaica Suriname Trinidad and TobagoThe Bahamas???????

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LDCsAntigua and Barbuda Belize* Dominica Grenada Montseratt St Kitts and Nevis Saint Lucia St Vincent and the GrenadinesHaiti***4

Non discrimination

Most favoured nation treatment

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Signing of the Treaty of Chaguaramas (1973) marked the establishment of the CARICOM Community (CARICOM) In 1989, 13 of the now 15 members of CARICOM decided on an integrated development strategy to chart their way into the 21st century. This strategy, elaborated in the Grand Anse Declaration has as its key features:

Deepening economic integration by advancing beyond a common market towards a Single Market and Economy. Widening the membership and thereby expanding the economic mass of the Caribbean Community Progressive insertion of the region into the global trading and economic system by strengthening trading links with nontraditional partners6

Single Market: goods and servicesSingle Economy

Coordinated InstitutionsHarmonized Rules and Procedures

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Free Movement of GoodsEstablishment of a Common External Tariff

Operation of a Common External TariffRegime of Rules of Origin

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Removal of Obstacles to Trade in ServicesRight of Establishment

Provision of ServicesMovement of Skilled Persons Facilitation of Travel

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Movement of CapitalSingle (harmonized) currency and foreign exchange policies Coordinated Institutions Harmonized Rules and Procedures e.g Investment Policy Regional Development Fund10

DEVELOPMENT VISION - CSME Economic \ Social > GOVERNMENT Environmental/

ECONOMIC INTEGRATION

FUNCTIONAL COOPERATION

FOREIGN POLICY COORDINATION

NATIONAL STRATEGIES

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Response to Globalization and liberalization To address limited opportunities and growth Recognition of changing rules of trade and there increasing importance of secured and predictable access to external markets. Avoidance of marginalisation

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Regional consensus in decision makingTransport Infrastructure

Language differencesCultural divergences Sense of security

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Electronic CommerceGovernment Procurement

Free ZonesFree circulation of goods and services Contingent rights

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Thus Article 78 (1) of the Revised Treaty of Chaguaramas reads:

The goal of the Community Trade Policy shall be the sustained growth of intra-Community and international trade and mutually beneficial exchange of goods and services among the Member States and between the Community and third States. In fulfillment of the goal set out in Article 78 (1), one of the objectives to be pursued was the full integration of the national markets of all Member States of the Community into a single unified and open market area.

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Article 80 of the Revised Treaty of Chaguaramas provides that Member States shall coordinate their trade policies with third states or groups of third states and calls on the community to pursue the negotiation of external trade and economic agreements on a joint basis.

Thus, CARICOM negotiated as a single entity in the FTAA and is negotiating the EPAs with the European Union on a regional basis with the inclusion of the Dominican Republic with which CARICOM has a free trade agreement.

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WTO

Bilaterals

ACP/ EU

ACS

CSME

CSME T&T T&T 2005

FTAA

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CBERA/CBTPA EPAs- CARIFORUM ( CARICOM + Dominican Republic)/EC CARIBCAN - CARICOM Countries / Canada CARICOM / Costa Rica Free Trade Agreement (2004)

CARICOM / Cuba Trade & Economic Co-operation Agreement (2000)CARICOM / Dominican Republic Free Trade Agreement (1998) CARICOM / Colombia Agreement on Trade, Economic Technical Co-

operation (1994)

CARICOM / Venezuela Trade & Investment Agreement (1992)19

Enhances export markets and investment opportunities in the Region Mitigates the impact of trade liberalisation by offering the mechanism of regional blocs, and provides a practice match for firms to build capacity to face increased competition

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The CSME thus provides a platform from which the Region can speak with a common voice in crucial trade negotiations such as WTO and EPA Negotiations. Having one voice allows our concerns to be addressed by the wider international community Concerted action on the full implementation of the CSME helps us to be better able to shape positions in external negotiations and develop our trade policy capacity. We are then in a better position to negotiate with the rest of the world21

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Increasing value of intra regional domestic exports for the CSME; Increasing value of intra regional domestic exports for the MDCs and LDCs; Significant proportion of the intra regional domestic exports for the MDCs .

7000 6000 5000 4000 3000 2000 1000 0 2002 2004 CARICOM MDCs LDCs

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Increasing value of intra regional imports for the CSME; Increasing value of intra regional imports for the MDCs and LDCs; Significant proportion of the intra regional imports for the MDCs .

7000 6000 5000 4000 3000 2000 1000 0 2002 2004 CARICOM MDCs LDCs

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6000 5000 4000 3000 2000 1000 0 2002 2003 2004 2005 Trinidad Barbados Guyana

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2500 2000 1500 1000 500 0 2002 2003 2004 2005

Jamaica Barbados Guyana

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Increasing value of extra regional exports for the CSME; Increasing value of extra regional exports for the MDCs and LDCs; Significant proportion of the intra regional imports for the MDCs .

30000 25000 20000 15000 10000 5000 0 2002 2004 CARICOM MDCs LDCs

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Integral role in the regional development strategy; Important source of growth, innovation,. in the smaller economies; Provision of new opportunities for SMEs to grow

Capitalize on the cultural dimensions and diasporic relationshipsTargetted industries: tourism and hotel services, furniture, food services, printing and packaging, professional business services

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Coordination of technical assistanceApplication of quality systems and standards and industry benchmarks

Wider availability of services Facilitating Equity

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CARICOM Secretariat Caribbean Negotiating Machinery CROSQ

Council for Trade and Economic Development (COTED)Caribbean Court of Justice Community Competition Commission

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An established and functioning integration system is an important asset in contemporary trade arrangements, especially in the context of small and vulnerable economies. The CSME must be seen as a vital platform for the regions trade and economic linkages with the rest of the world

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