Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce On the Mark: Get Set Ready Steady Go The CARICOM Single Market and Economy

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Presentation Overview Background of CARICOM What is the CSME Instruments of the CSME Why the CSME? Importance of the CSME Economic Impact of the CSME Social Impact of the CSME Conclusions Questions and Answers

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Background on the Caribbean Community (CARICOM) The Integration process dated back to 1958 with the establishment of the British West Indies Federation. Signing of the CARIFTA Agreement on May 1 st The Treaty of Chaguaramas established the Caribbean Community (CARICOM) on August 1 st 1973.

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Member States of the Caribbean Community (CARICOM)

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce What is the CARICOM Single Market and Economy (CSME) The CSME was endorsed by the 13 th Meeting of the Conference of Heads in It is an instrument to facilitate the economic, social, market, and human development of Member States in a liberalized and globalized environment through the pooling of resources.

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce What is the CARICOM Single Market and Economy (CSME)? The Basic Objectives of the CSME Enhanced levels of increased competitiveness. Full employment of labour and other factors of production. Expansion of trade and economic relations with other Caribbean, Latin and Central American Countries. Accelerated, co-ordinate and sustained economic development and convergence. The achievement of a greater measure of economic leverage and effectiveness of Member States in dealing with third states or groups.

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce What is the CARICOM Single Market and Economy (CSME)? Components of the CSME 1.Single Market It is a market area created from the unification of national markets from several countries. Allowing for the free movement of CARICOM goods, services, people and capital throughout the Community Without tariffs, barriers and restrictions.

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce What is the CARICOM Single Market and Economy (CSME)? Single Economy It is the creation of an economic space that approximates a single country from the economies of several countries. It is an arrangement in which foreign exchange, interest policies, tax regimes, and laws are harmonized. Thus the creation of an inclusive Trade Policy.

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Why CSME Globalization and Liberalization Slow Internal Development Limited Opportunities and growth Small economies Vulnerability to economic shock, natural disasters, and structure of economy Rigid economic structure based on preferences Rigid economic structure based on preferences

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Instruments of the CSME CCJ is the anchor to the CSME: interpreting the trading rules of the Community. The movement of services from one Member State to another. SSS

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Instruments of the CSME The movement of goods from one member country to another without restrictions.

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Instruments of the CSME The movement of all forms of capital without restrictions.

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

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Importance of the CSME It prepares the region for a higher level of international competitiveness in the face of globalization and liberalization. It gives the Community added economic and political strength when participating within the international fora. fora.

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Importance of the CSME It provides the platform whereby the ever important global standards are tested regionally through the CSME. It provides the platform for a development strategy which is social, human, economic, political, infrastructural and legal. It allows for the restructuring of national economies becoming more competitive and efficient both nationally and regionally. (business, people, state etc.)

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Economic Impact of the CSME The economic impact of the CSME to Antigua and Barbuda relates to the following: Antigua and Barbuda’s Financial Contributions to existing and new regional institutions. Financial Contribution to the Development Fund $14million USD The establishment and restructuring of key Ministry’s and Departments: Labour, Health, Immigration, Social Transformation, Legal Affairs and Justice The establishment and restructuring of key Ministry’s and Departments: Labour, Health, Immigration, Social Transformation, Legal Affairs and Justice

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Economic Impact of the CSME The 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?

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Economic Impact of the CSME The implementation of national monitoring mechanisms to support the provisions of the Treaty in relation to: Movement of goods Legal Issues Labour

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Social Impact of the CSME Measuring the true social impact of the CSME on Antigua and Barbuda there must be a comprehensive “social” census of our country. Education Health services Welfare Gender: Youth Housing Housing

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Social Impact of the CSME Without such a survey the likely social impact of the CSME would test the: Reliability and efficiency of our Health services Highlight the gender disparities (Workforce: Labour) Discrimination: gender, age etc.

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Social Impact of the CSME Education (structures, curriculum, policies meeting the demands of our country) What is the nature, scope and reach of the present welfare programs (adult care, orphans etc.)

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Conclusions The CSME has set us on the mark, it is for Member Countries to get set and go. It is for Member Countries to enact the right strategies and policies towards their development.

Copyright 2007 Ministry of Finance and the Economy (Industry and Commerce Contact Information Ministry of Finance and the Economy (Industry and Commerce) Radcliffe Street P. O. Box 1550 St. John’s Tel #: Fax#: