1. CARICOM SINGLE MARKET & ECONOMY
CARICOM SINGLE MARKET AND ECONOMY (CSME)
A DEFINITION AND GOVERNMENT’S VIEW AND VISION
November 10, 2004

2. STRUCTURE OF THE ECONOMIES OF THE CARIBBEAN COMMUNITY
CARICOM SINGLE
MARKET & ECONOMY
STRUCTURE OF THE ECONOMIES OF THE CARIBBEAN COMMUNITY
1. Small – geography, labour force, consumer base, natural resources
2. Vulnerable – economic and other shocks e.g natural disasters and rigid structure of the economies

3. Background CARICOM SINGLE MARKET & ECONOMY
Why a CARICOM Single Market & Economy?
CARIFTA in 1968
CARICOM in 1973
With globalization in the 1980’s, the Treaty of
Chaguaramas proved an inadequate mechanism for facilitating responses to a new world economy which involves larger markets, intense competition and the free movement of capital

4. Background continues….
CARICOM SINGLE
MARKET & ECONOMY
Background continues….
The emergence of mega trading blocs in different parts of the world and the development of the Free Trade Areas of the Americas, meant a Single Market and Economy became an urgent necessity for our region.

5. CSME: Origin and Definition
CARICOM SINGLE
MARKET & ECONOMY
CSME: Origin and Definition
It was therefore clear that a new framework for growth was needed:
1989 – decision to create the CARICOM Single Market and Economy (CSME)
The CSME was created by the Revised Treaty of Chaguaramas through the amendment to nine (9) Protocols of the Treaty of Chaguaramas which had established CARICOM in 1973

6. CSME: Origin and Definition
CARICOM SINGLE
MARKET & ECONOMY
CSME: Origin and Definition
The CSME is established on the premise that it will facilitate the pooling of resources to improve our competitiveness
It is geared towards minimizing the problems of small size and structural deficiencies
The Single Market is to be created by January 1, 2006
The Single Economy is an ongoing effort

7. CSME’s Global positioning in the International Trade Arena
CARICOM SINGLE
MARKET & ECONOMY
CSME’s Global positioning in the International Trade Arena
Background
EU-
ACP
CSME
WTO
FTAA
Bi-laterals

8. CSME’s Global positioning in the International Trade Arena continues…
CARICOM SINGLE
MARKET & ECONOMY
CSME’s Global positioning in the
International Trade Arena continues…
The Member States of the CSME are also members of the World Trade Organization (WTO), which is the overarching body governing international trade.
The CSME therefore must be ‘WTO Compliant’

9. CSME’s Global positioning continues…
CARICOM SINGLE
MARKET & ECONOMY
CSME’s Global positioning continues…
The CSME offers a secure platform for the Caribbean’s entrance into the FTAA
It allows our firms to test the waters of new regional markets – increasing competitiveness and preparedness for global competition
The CSME will facilitate greater economies of scale and most certainly the creation of Pan-Caribbean companies and brands

10. CARICOM SINGLE MARKET & ECONOMY
CSME Membership (13)- Market of 6 million people
Antigua & Barbuda
Montserrat
Barbados
St. Kitts & Nevis
Belize
St. Lucia
Dominica
St. Vincent & the Grenadines
Grenada
Suriname
Guyana
Trinidad & Tobago
Jamaica

11. CARICOM SINGLE MARKET & ECONOMY CSME - Definition
The CSME is a single enlarged economic space created through the removal of restrictions and resulting in the
Free movement of:
Goods
Services
Persons
Capital
Technology
It confers the right on CARICOM nationals to establish business in any CARICOM Member State and to be treated in the same manner as a national of that State

12. CARICOM SINGLE MARKET & ECONOMY PILLARS OF CSME
The five (5) main pillars of CSME are:
Provision for the free movement of Capital
Provision for the free movement of Goods, Services and People within the CSME
The establishment of common trade and economic policy
Harmonization of economic, fiscal and monetary policies
A common currency

13. Rights to CARICOM Nationals
CARICOM SINGLE
MARKET & ECONOMY
Rights to CARICOM Nationals
Under the CSME
Free Movement of Persons
Freedom to provide Services
Right to Establish a Commercial Presence
Free Movement of Capital
Free Movement of Goods

14. Implementation of the CSME
CARICOM SINGLE
MARKET & ECONOMY
Implementation of the CSME
10 Key Elements
Treaty Revision
Free Movement of Persons
National Administration
Free Movement of Capital
Enforcement, Regulation and Supporting Institutions
Common External Policy
Right of Establishment
Public Education Programme
Free Movement of Services
Harmonization of Laws

15. Free Movement of Persons under the CSME
CARICOM SINGLE
MARKET & ECONOMY
Free Movement of Persons under the CSME
Hassle-Free Travel
Service Providers
Skilled Persons
Other Persons agreed by the Conference of Heads

16. Free Movement of Persons continues..
CARICOM SINGLE
MARKET & ECONOMY
Free Movement of Persons continues..
Approved categories of wage earners (skilled persons) that do not require a work permit are:
University graduates
Media workers
Artistes
Sportspersons
Musicians
T & T has fully implemented the Free Movement of Skilled Nationals Act

17. Free Movement of Persons continues…
CARICOM SINGLE
MARKET & ECONOMY
Free Movement of Persons continues…
Skilled Certificate
The movement of skilled persons is facilitated through the issuance of a Skilled Certificate, also called the Caribbean Community Skilled Qualification based on a set of criteria by the CARICOM Secretariat.

18. Free Movement of Persons continues…
CARICOM SINGLE
MARKET & ECONOMY
Free Movement of Persons continues…
Other Category of persons:
Self Employed Service Providers
Entrepreneurs
Technical, Managerial and Supervisory Staff
Spouses and immediate dependents
Persons consuming services abroad

19. CARICOM SINGLE MARKET & ECONOMY HASSLE-FREE TRAVEL
The following measures have been deemed critical
For hassle-free travel
Use of ID cards or other forms of identification with
a photograph
Establishment of CARICOM National/ Non-
CARICOM National lines at all ports of entry
Use of a Common E/D Form
Decision on a CARICOM Passport

20. Freedom to Provide Services
CARICOM SINGLE
MARKET & ECONOMY
Freedom to Provide Services
Free trade in services require a set of administrative arrangements which allows CARICOM nationals to provide services within any Member State without restrictions
Article 37 of the revised Treaty requires Member States to abolish discriminatory restrictions on the provision of services within the Community in respect of Community nationals

21. Freedom to Provide Services continues…
CARICOM SINGLE
MARKET & ECONOMY
Freedom to Provide Services continues…
Each Member State has notified the CARICOM Secretariat of its existing restrictions on the provision of services and has agreed on a timetable for removal ending December 31st 2005
Trinidad and Tobago has a total of 15 restrictions to remove, on an agreed time of December 2004

22. CSME – Ways a Service can be Traded
CARICOM SINGLE
MARKET & ECONOMY
CSME – Ways a Service can be Traded
Mode 1 – Cross Border
Mode 2 – Consumption Abroad
Mode 3 – Commercial Presence
Mode 4 – Movement of Natural Persons

23. Right to Establish a Commercial Presence continues…
CARICOM SINGLE
MARKET & ECONOMY
Right to Establish a Commercial Presence continues…
Article 32 of the revised Treaty grants the Right of Establishment…as such an individual wishing to establish a business must be engaged in non-wage earning (self employed persons) activities of a commercial, industrial, agricultural, professional or artisan nature or form a company in any of those types of economic activity

24. CARICOM SINGLE MARKET & ECONOMY
Right to Establish a Commercial Presence
Ease of entry to establish a commercial presence and indefinite stay to do so
Ease of administration for the registering and/or incorporation of companies
Access to capital in the receiving member state
Access to land, building and other property for the purpose of establishing a business
Freedom of entry for managerial, supervisory and technical staff, spouse and immediate dependent family members

25. Harmonized Companies’ Legislation
CARICOM SINGLE
MARKET & ECONOMY
Harmonized Companies’ Legislation
This harmonized legislation seeks to provide conditions whereby companies will be able to operate across border as if they were operating in their own Member State
The mechanisms that are expected to be in place are:
-a system of registration of companies and supporting institutions and administrative infrastructure
-a central depository for information on companies incorporated and registered within the CSME

26. FREE MOVEMENT OF CAPITAL
CARICOM SINGLE
MARKET & ECONOMY
FREE MOVEMENT OF CAPITAL
Trinidad and Tobago has abolished Foreign Exchange Controls and there are no restrictions to Capital Market activity. Currently Trinidad and Tobago, Barbados and Jamaica comprise the Regional Stock Exchange

27. COMMON EXTERNAL POLICY
CARICOM SINGLE
MARKET & ECONOMY
COMMON EXTERNAL POLICY
This pertain to the regime governing the Trade in Goods. Trinidad and Tobago has fully implemented the fourth phase of the Common External Tariff

28. CARICOM SINGLE MARKET & ECONOMY HARMONIZATION OF LAWS
Trinidad and Tobago has been officially notified of five (5) areas:
Competition Policy
Anti-Dumping and Countervailing Duties
Legislative Regime for the Movement of Factors
Consumer Protection
Customs Legislation

29. Implementation Status
CARICOM SINGLE
MARKET & ECONOMY
Implementation Status
February 13, 2003 – Barbados, Jamaica and T&T committed to being CSME ready by 2004
Other Member States

30. Trinidad and Tobago’s Success
CARICOM SINGLE
MARKET & ECONOMY
Trinidad and Tobago’s Success
80% ready and progressing steadily
Cabinet’s decision to enact the Treaty into domestic law
Establishment of all the necessary national and regional administrative structures
Full implementation of the CET

31. Trinidad and Tobago’s Success
CARICOM SINGLE
MARKET & ECONOMY
Trinidad and Tobago’s Success
Free movement of five categories of skilled persons
The abolition of foreign exchange controls and restrictions to capital market activity
T & T already has a National Standard of Bureau
Fair Trading Authority to be established

32. Trinidad and Tobago’s Success
CARICOM SINGLE
MARKET & ECONOMY
Trinidad and Tobago’s Success
The Accreditation Council has been established
Least number of legislative and administrative restrictions to remove
Embarked on an Attachment Programme

33. Trinidad and Tobago’s Concerns
CARICOM SINGLE
MARKET & ECONOMY
Trinidad and Tobago’s Concerns
Model legislation
Dispute settlement
Contingent rights
Reciprocity

34. The Attributes of Trinidad and Tobago’s Progress
CARICOM SINGLE
MARKET & ECONOMY
The Attributes of Trinidad and Tobago’s Progress
Ministry of Foreign Affairs
Ministry of Trade and Industry
Inter-Ministerial Consultative Committee
Business and Labour Advisory Committee
Chief Parliamentary Counsel
CARICOM Secretariat
CSME Unit of Trinidad and Tobago

35. Benefits under the CSME
CARICOM SINGLE
MARKET & ECONOMY
Benefits under the CSME
Goods are being traded in free market conditions
People of approved categories are moving freely
Capital is moving – Jamaica and T & T have no exchange control

36. Overall Benefits under the CSME
CARICOM SINGLE
MARKET & ECONOMY
Overall Benefits under the CSME
Increase Inflows of New Capital, Entrepreneurship and Technology from other Member States
Larger Market Opportunities
Improved Service Sector
Greater Opportunity for Travel, Study and Work in CARICOM Countries

37. Overall Benefits under the CSME continues…
CARICOM SINGLE
MARKET & ECONOMY
Overall Benefits under the CSME continues…
Increased Employment Opportunities and Improved Standard of Living
Secure platform for our entrance into the FTAA
Greater economies of scale – Pan-Caribbean Brands

38. Overall Benefits under the CSME continues…
CARICOM SINGLE
MARKET & ECONOMY
Overall Benefits under the CSME continues…
Strengthened competitiveness
Lower consumer prices
Creation of regional companies
Increased opportunities to invest through direct stock ownership or mutual fund investments

39. Public Education Programme
CARICOM SINGLE
MARKET & ECONOMY
Public Education Programme
An intensive National PEP has begun, and includes information-sharing in the print and electronic media as well as outreach sessions with the public at large

40. CSME Public Education Programme
CARICOM SINGLE
MARKET & ECONOMY
CSME Public Education Programme
Advertising
Public Relations
Person-Person Meetings

41. CARICOM SINGLE MARKET & ECONOMY
The CSME tests our capacity, and will, to do what is necessary
Globalization presents a harsh reality for small states
The survival of the Caribbean hinges on our preparedness to face open international competition and to adapt to technological developments.
The CSME is our policy instrument for enhanced international competitiveness and greater prosperity for all our people.

42. CARICOM SINGLE MARKET & ECONOMY GOVERNMENT’S VISION
Enhance competitiveness to meet the challenges of globalization and liberalization – CSME
Developing a human resource base to produce a competent, productive and knowledgeable workforce – Knowledge based society
Pursuing sound policies to continue economic growth – Services and Investment

43. CARICOM SINGLE MARKET & ECONOMY CARICOM SINGLE MARKET & ECONOMY
GOVERNMENT’S VISION \
Developing a human resource base to produce a competent, productive and knowledgeable workforce – Knowledge based society:
Free movement of Skills
Accreditation Council
National Training Agency
E-Commerce
Human Resource Development Agenda

44. CARICOM SINGLE MARKET & ECONOMY
Pursuing sound policies to continue economic growth – Services and Investment
Services contribute approx. 63% of the GDP
Services Trade Policy
Investment Promotion Policy

45. CARICOM SINGLE
MARKET & ECONOMY
THANK YOU

46. Website: www.csmett.com E-mail: csme@foreign.gov.tt
CARICOM SINGLE
MARKET & ECONOMY
CONTACT INFO
Website:
Telephone: 627-CSME (2763)
Fax: