CSME Information Booklet- Directorate General for Foreign Trade

CSME:

CARICOM Single Market and Economy

POTENTIAL INVESTMENT OPPORTUNITIES SUMMARY OF STATUS OF

key elements

EXPORTS to CARICOM

PLUS Frequently asked questions on the CSME

THE CSME:

A STRONGER VOICE IN THE GLOBAL ECONOMYÂ

TABLE OF

CONTENTS

1 ABOUT THE CSME 3

THE GENERAL FRAMEWORK

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THE CSME UNIT IN BELIZE

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CSME TOP TRADING PARTNERS

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SUMMARY OF STATUS OF KEY ELEMENTS

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FREE MOVEMENT OF PEOPLE

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INVESTMENT OPPORTUNITIES FREQUENTLY ASKED QUESTIONS

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CARICOM MISSION STATEMENT

1. Affirm the collective identity and facilitate social cohesion of the people of the Community.

2. Realise our human potential as defined by the Ideal Caribbean Person, full employment and full enjoyment of human rights.

3. Ensure that social and economic justice

6. Create the environment for innovation, the development and application of technology, productivity and global competitiveness, in which the collective strength of the Region is unleashed.

7. Promote optimum sustainable use of the Region's natural resources on land and in the marine environment, and protect and preserve the health and integrity of the environment.

and the principles of good government are

their impacts.

8. Encourage citizens to willingly accept responsibility to contribute to the welfare of their fellow citizens and to the common good, practice healthy living and lifestyles, respect the rule of law, protect the assets of the Community, and abhor corruption, crime and criminality in all its forms.

5. Mainstream all aspects of sustainable

9. Project 'one voice' on international issues.

enshrined in law and embedded in practice.

4. Systematically reduce poverty, unemployment and social exclusion and

development, including the environmental, economic and social dimensions.

10. Increase savings and the flow of investment within the Community.Â

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THE STRATEGIC PLAN FOR THE CARIBBEAN COMMUNITY 2015-2019 ULTIMATE OUTCOMES:

1. Strong Economic Growth and Reduction in Poverty and Unemployment.

2. Improved Quality of Life 3. Reduced Environmental Vulnerability 4. An Integrated Community with Equity for All Source: Strategic Plan for the Caribbean Community 2015-2019 Vol. 1 The Executive Plan 3 July 2014

STRENGTHENING THE CARICOM IDENTITY To refine and intensify the promotion of the 'CARICOM Identity' that binds the people of Member States together and engenders a sustained sense of belonging.

BUILDING TECHNOLOGICAL RESILIENCE To engender innovative, technology-driven economies and societies in the Region.

BUILDING SOCIAL RESILIENCE To ensure sustainable human and social development in the Region with reduced levels of poverty and equitable access by vulnerable groups and significant improvement of citizen security by facilitating a safe, just and free community.

BUILDING ENVIRONMENTAL RESILIENCE To reduce vulnerability to disaster risk and effects of climate change and ensure effective management of the natural resources across Member States.

BUILDING ECONOMIC RESILIENCE To engender sustainable growth of the economies of Member States.

STRENGTHENING COMMUNITY GOVERNANCE To ensure effective and efficient governance arrangements that support good decision-making, successful implementation of the regional agenda and accountability by all actors.

ABOUT THE CSME

WHAT IS THE CARICOM SINGLE MARKET AND ECONOMY (CSME)?

THE INCEPTION OF THE CSME

The CARICOM Single Market and Economy is a regional development initiative based on integration that should create a single market and economy among thirteen (13) CARICOM Member States through the removal of restrictions such as fiscal, legal, physical, technical and administrative.

So far only the CARICOM Single Market (CSM) is in existence. Work continues by the CARICOM Secretariat to complete the implementation of the provisions of the Revised Treaty of Chaguaramas signed in Nassau, Bahamas in 2001.

The process of regional integration was strengthened in 1989, in Grand Anse, Grenada, when the Conference of Heads of Government of the Caribbean Community decided to transform the Common Market into a Single Market and Economy. After the revision of the Treaty of Chaguaramas, Belize, Barbados, Jamaica, Guyana, Suriname and Trinidad and Tobago were among the first countries to sign the first component of the CSME, that is the Caribbean Single Market on January 1st, 2006. The other Member States signed onto CSM in July 2006; except Haiti who signed onto it in 2010 and The Bahamas and Montserrat which are yet to sign the CSM.

ODDBALL IMAGING STUDIO

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THE PURPOSE OF THE CSME The ultimate purpose is to strengthen the region’s political, financial and economic leverage in a global world that inhabits large and competitive economies. Individual small states have less negotiating power and few resources to maximize trade and investment opportunities. Caribbean countries as a group, instead of individually, would be able to negotiate with larger economies or other regional groupings on a more levelled playing field. Greater negotiating power yields favourable trade terms, more employment opportunities, attraction of more sustainable, eco-friendly and profitable investments and the accrued benefits from economies of scale. Member States would also have access to diversified markets and have the potential capacity to fill the demands of new markets. Ultimately, the objective of the CSME is to fully exploit the factors of production and purse competitive trade that will improve the wellbeing of CARICOM nationals and promote sustainable development.

CARICOM's Vision:

A Caribbean Community that is integrated, inclusive and resilient; driven by knowledge, excellence, innovation and productivity; a Community where every citizen is secure and has the opportunity to realize his or her potential with guaranteed human rights and social justice; and contributes to, and shares in, its economic, social and cultural prosperity; a Community which is a unified and competitive force in the global arena.

The benefits to be accrued will directly impact CARICOM Nationals. They will have more opportunities to work, travel, and do business in twelve (12) other CARICOM countries. Consumers in the region will have access to a wider range of quality products at better prices. Enterprises will be exposed to more competition and have an incentive to provide better services and products.

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The Revised Treaty instituted the general framework arranged into five (5)areas: Free Movement of Capital (money), Goods, Services and Skills and the Establishment of a Business.

THE GENERAL FRAMEWORK OF THE CSME

The Free Movement of Capital: to eliminate currency exchange controls, implement the use of one common currency and create a Regional Stock Exchange.

The Free Movement of Goods and Services: to eliminate trade barriers among and between CARICOM Member States and to streamline national standards to ensure acceptability of goods and services for trade.

The Free Movement of Skills: to eliminate the barriers to the movement of people among and between CARICOM Member States for travel and work. Also, the harmonizing of social services, an effective transfer of social security benefits, and establishing common systems for accreditation and equivalency will be facilitated under this area.

The Free Movement to Establish a Business: to eliminate the barriers to establishing a business.

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ABOUT THE CSME UNIT IN BELIZE The CSME unit falls under the Ministry of Economic Development, Petroleum, Investment, Trade and Commerce and the department with responsibility is the Directorate General for Foreign Trade (DGFT). The DGFT has direct responsibility for Foreign Trade Policy, and International Trade Negotiations. Belize, as a member of CARICOM, has the responsibility to facilitate the fulfillment of Belize's obligations under the Revised Treaty of Chaguaramas.

The CSME unit is responsible to monitor the progress and facilitate the implementation of the CSME integration process. The unit is also a repository for all relevant CSME information and ensuring that the key government departments, private sector and social partners have the information available to them.

To ensure that all stakeholders understand available opportunities and their role in the CSME. The unit undertakes public education through national consultations and other awareness mediums.

The DGFT is located at 3rd Floor,Garden City Building, Mountainview Boulevard, City of Belmopan Belize, C.A

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BELIZE'S TOP TRADING PARTNERS IN THE CSME, 2017 Source: Statistical Institute of Belize

34%

39%

Of Belize's export trade goes to CARICOM.

20%

TOP EXPORTS TO CARICOM:

PETROLEUM OILS

ORANGE JUICE GRAPEFRUIT JUICE PINEAPPLE JUICE

13% CARICOM is Belize's third largest export partner.

GROATS OF MAIZE

Source: Statistical Institute of Belize

SHRIMP RAW SUGAR

RED KIDNEY BEANS BLACKEYE PEAS

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ESTABLISHMENT OF THE CARICOM SINGLE MARKET & ECONOMY SUMMARY OF STATUS OF KEY ELEMENTS FOR BELIZE

ELEMENTS

STATUS

1. Treaty Obligations Signature of Treaty of Chaguaramas.

Belize signed the Treaty on 1st May, 1974

Signature of Revised Treaty of Chaguaramas.

Belize signed the Revised Treaty on 5th July, 2001

Signature for the implementation of the CSM.

Belize was among the first six Member States that signed the document for the implementation of the CSM on 31st January, 2006.

2. National Administration Ministry responsible for CARICOM Affairs.

The Ministry of Foreign Affairs.

Establishment of a National Consultative System on CSME.

The Trade Technical Team (TTT) is an inter-ministerial national consultative committee.

Establishment of the national CSME Unit or Focal Point.

The CSME unit is established at the Directorate General for Foreign Trade.

3. National Competition Authority Establishment of a National Competition Authority.

Work in progress

4. CARICOM Regional Organization for Standards and Quality (CROSQ) Signature of CROSQ.

Belize has signed the CROSQ agreement .

Establishment of a National Standards Body.

The National Standards Body is the Belize Bureau of Standards.

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ESTABLISHMENT OF THE CARICOM SINGLE MARKET & ECONOMY SUMMARY OF STATUS OF KEY ELEMENTS FOR BELIZE ELEMENTS

STATUS

5. Mechanism for Equivalency and Accreditation Establishment of an Accreditation or Equivalency Body.

Work in progress.

6. Tariffs Removal of unauthorized import duties on goods of Community origin and discriminatory internal taxes.

Unauthorized import duties on goods of Community origin have been removed.

Removal of environmental levy by Belize on goods of Community origin.

Environmental levy has been removed from Community origin goods.

7. Free Movement of Services and Rights of Establishment Legislative action to be taken by Belize to remove restrictions on the provisions of services and right of establishment.

Legislative action to be taken to remove restrictions on the provisions of services and right of establishment.

8. Free Movement of Skills

Currently, the Caribbean Community (Skilled Persons Act) is being amended to expand the categories of skilled persons who can live and work in Belize. These categories include artistes, teachers and nurses who are non-graduates, artisans, domestic workers with the Caribbean Vocational Qualification (CVQ), and holders of an Associate's Degree. The amendment will also allow for the free movement of spouses and dependents.

Implementation of the Skilled Persons Act.

9. Number of CARICOM Skills Certificates issued in Belize .

220

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ESTABLISHMENT OF THE CARICOM SINGLE MARKET & ECONOMY SUMMARY OF STATUS OF KEY ELEMENTS FOR BELIZE ELEMENTS

STATUS

10. Facilitation of Travel Implement the decision on the use of CARICOM passports.

Belize has implemented the use of CARICOM passports.

Harmonise and implement common arrival and departure forms.

Belize implemented the forms on the 1st July, 2017.

Lines identified for CARICOM and nonCARICOM nationals at ports of entry.

Belize has implemented lines for CARICOM nationals, and lines for nonCARICOM nationals.

11. Agreement on Transference of Social Security Benefits Signature of Agreement and Protocol amending the Agreement.

Belize signed the Agreement on 1st March, 1996 and came into effect on 1st April, 1997. Belize signed the protocol amending the CARICOM Agreement on Social Security at the Conference of CARICOM Heads meeting on the 5th July 2017.

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Free Movement of People In 2017, the recorded number of non-Belizean CARICOM nationals working in Belize was 402.

Country of origin of the top 5 non-Belizean CARICOM nationals [Social Security Board 2017 data]

200 150 100 50

FREE TO LIVE & WORK IN CARICOM

&T ob ag o Do m in ic a

As a CARICOM national you are

0 Ha it i

Males

Tr in id ad

Females

Ja m ai ca

210

Gu ya na

192

If you hold a CARICOM Skill's Certificate.

You can apply for a skill's certificate at the Department of Immigration & Nationality Services in the City of Belmopan. If you are: A university/associate degree or CVQ holder A media worker

A musician/artists

A nurse

A sportsperson

A teacher

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INVESTMENT OPPORTUNITIES IN

The Common External Tariff (CET) is a schedule of tariff rates that is applied uniformly by a common market (e.g. CARICOM) to import from countries outside the common market. For CARICOM, it ranges from 0-40%.

Belize as a member of CARICOM can import most of its goods from other CARICOM Member States duty free.

The CET could be suspended upon application and approval by CARICOM Member States if the product cannot be supplied by the Community. This means that the external tax by CARICOM countries will no longer be applied and a CARICOM Member State can import a good at a cheaper tax rate from a non-CARICOM Member State. The CET Suspension Mechanism is a way Member States can identify opportunities for products that are in demand and not supplied in CARICOM.

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d e k s a y l t n e Frequ ns o i t s e qu What is a single economy? It is the creation of an economic space from the economies of several countries. It is an arrangement in which foreign exchange and interest rate policies, tax regimes, laws and a common currency, among other things, are coordinated and harmonized.

What is a single market? It is a market area created through the unification of the national markets of several countries.

It is an arrangement which allows goods, services, people, and capital to move throughout the Community without tariffs/barriers and restrictions, to achieve a single large economic space.

What is the CARICOM Single Market and Economy? The CARICOM Single Market & Economy (CSME) is an arrangement which allows CARICOM goods, services, people and capital to move freely throughout CARICOM Member States without tariffs and restrictions to achieve a single, large economic space, and to provide for a common economic and trade policy.

What is the difference between CARICOM and the CSME? The Caribbean Community known as CARICOM was established on 4th July, 1973. The objective of the community is to promote economic integration and cooperation in various social and human endeavours. The CSME is an arrangement among member states for the creation of a single market through the removal of restrictions on the movement of goods, people, capital and services.

How many countries make up the CSME? Thirteen Member States are participating in the CSME. These are Antigua and Barbuda, Barbados, Belize, Dominica, Guyana, Grenada, Haiti, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Trinidad and Tobago, Suriname.

How long is the CARICOM Skills Certificate valid? Indefinitely.

Where do I apply for a CARICOM Skills Certificate? At the Department of Immigration and Nationality Services in the City of Belmopan.

Why does Belize need to be a part of the CSME? To garner support for territorial claims, access technical assistance and enhance lobbying efforts on pressing issues.

Will Belizeans lose their identity? The CSME will not replace national identity or sovereignty.

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d e k s a y l t n e u q Fre s n o i t s e qu What is the Free Movement of Capital?

Individuals will be able to transfer money to another country through bank notes, cheques and electronic transfers without any prior authorization. There will also be equal rights to buy shares in any company in any Member State and the right to remove your capital from one Member State to another . The region's currencies will be easily converted and exchanged and interest rates will be coordinated.

What is the Free Movement of Goods? It includes no import duties on goods that are made in the Community, thus having the status of CARICOM origin. Tariffs and all quantitative restrictions on such goods will be removed.

Imports from within the Community are treated differently from those coming from the rest of the world. There are also agreed regional standards for the production of goods throughout the CSME.

What is the Free Movement of People? It provides for an even closer union among the people of CARICOM. There will be no discrimination on the grounds of nationality throughout CARICOM. There is facilitation of travel at immigration points in that you are treated as a national of any CARICOM country that you may travel to. This includes common lines for citizens, residents and CARICOM nationals at immigration points.

Under the Free Movement of People will I be able to work in any CARICOM country of my choice? The Free Movement of People for work purposes includes the removal of work permits for university graduates, media workers, sportspersons, musicians, artistes, holders of a Caribbean Vocational Qualification (CVQ) and an Associate's Degree, nongraduate teachers and nurses and domestic workers with a CVQ.

What is the Free Movement of Services? It gives nationals the right to provide services throughout the Community. CARICOM nationals will have access to resources on a nondiscriminatory basis for the purpose, which is directly related to the provision of services.

Service providers also have access to over 14 million people throughout the Community.

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d e k s a y l t n e Frequ ons i t s e u q What is the Caribbean Court of Justice (CCJ)? The CCJ is the final authority on disputes concerning the interpretation and application of the Revised Treaty, through the exercise of its original jurisdiction. The CCJ is also the highest Appeal Court in CARICOM; it considers and determines appeals in both civil and criminal matters from courts within the jurisdictions of Member States of the Community and which are parties to the Agreement establishing the CCJ. Where is the CCJ located? Port of Spain, Trinidad and Tobago.

When did Belize accept the CCJ as its final court of appeal? Belize accepted the CCJ as its final court of appeal in 2010.

Which countries use the CCJ as its final court of appeal? Barbados, Belize, Guyana and Dominica.

Who will be able to go before the CCJ? The CCJ will hear complaints and settle disputes involving CARICOM Member States, the Community institutions, enterprises and individuals.

Would I be at a disadvantage if I were to work in another CARICOM territory?

There are a number of support measures in place to facilitate the free movement of skills including the CARICOM Agreement on Social Security. This provides for the total amount of contributions paid to each scheme of the Member State where one has worked in order to determine one's benefits.

Measures are also in place to allow for Social Security benefits to be transferred from one country to the next if one qualifies for benefits.

Pensions will be paid by the authority of the country in which you qualify for; benefits and death grants will be forwarded to the relevant persons irrespective of the Member State in which one resides.

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ARICOM Week

in the month of May

Belize signed the

Unity - Integrity - Equity - Good Governance

CARICOM SINGLE MARKET AND ECONOMY 2018

CREATING GLOBAL OPPORTUNITIES

Ministry of Economic Development, Petroleum, Investment, Trade and Commerce 3rd Floor Garden City Building 3894 Mountain View Boulevard Water Reservoir Area City of Belmopan, Belize C.A Tel: (501)-822-2832/3263/2833 Fax: (501) 822-2837 Email: foreigntrade@btl.net Web: www.dgft.gov.bz Follow us on: