TThhee C CA AR RIIB BB BEEA AN N
SSiinnggllee M Maarrkkeett & & EEccoonnoom myy
1. What is the Caribbean Single Market & Economy?
T
he CSME is an integration arrangement that allows for the establishment of a single market and a single economy for the members of the Caribbean Community
(CARICOM). The CARICOM member states are: Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Lucia, St. Kitts and Nevis, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago (see map of the Caribbean Basin below).
CSME
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2. What is the Caribbean Single Market?
establishment
of
the
British
It is an arrangement among the member states which will allow
Subsequently,
globalisation
CARICOM goods, services, people and capital to move throughout
crystallised the need to put in place the instruments and
the Caribbean Community without tariffs and restrictions, to
institutions to facilitate further economic development in the
achieve a single large economic space, and to provide for a common
Region. This gave rise to the establishment of the Caribbean Free
economic and trade policy. The Caibbean Single Market was
Trade Association (CARIFTA) in 1965 and the Caribbean
established among Trinidad & Tobago, Barbados and Jamaica in
Community and Common Market in 1973. In 2002, the decision
2005. The remaining members of CARICOM should participate in
was taken to replace the Common Market with a Caribbean Single
the single market in 2006.
Market and Economy (CSME), strategically positioning the
and
West
Indies
Federation.
trade
liberalisation
have
Community to participate in the globalised arena. 3. What is the Caribbean Single Economy? The Caribbean Single Economy is an arrangement that will further
5. How will the Caribbean Single Market and Economy be implemented?
harmonise macroeconomic management across all Member States of the Caribbean Community, to underpin the sustainable development of the Region. This will entail the coordination of the monetary,
5.1
The Treaty of Chaguaramas of 1973, which established the Caribbean Community and Common Market, was revised.
foreign exchange and fiscal policies of the member countries in the
This revised Treaty, which was signed by CARICOM
context of their economic convergence. It is anticipated that the
Heads of Government in 2002, now establishes the CSME.
Caribbean Single Economy will be implemented in 2008.
5.2 4. Why the Caribbean Single Market & Economy? The notion of a Caribbean region without borders, strengthened by its collective resources and opportunities, has been a vision that has inspired Caribbean integrationists since 1958 and which led to the
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The Treaty was amended by way of Protocols. There are nine Protocols which address (1) the Organs, Institutions, and Procedures of the Community, (2) the Right of Establishment, that is, the Right to provide Services and the Right to move Capital by any CARICOM national in
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the Community, (3) a Community Industrial Policy, (4) Trade Liberalisation, (5) the Community Agricultural Policy, (6) the Community Transport Policy, (8) the needs of Disadvantaged Countries, Regions and Sectors, and (9) Disputes Settlement and the Rules of Competition within the Region. These Protocols are now Chapters within the
6.2
More competitive products of better quality and prices.
6.3
Improved services provided by enterprises and individuals, including transportation and communication.
6.4
Greater opportunity for “hassle-free� travel within the
Revised Treaty. 5.3
Region.
National laws, policies and programmes of Member States must be modified to accommodate the CSME. 6.5
5.4
Greater opportunities for nationals to study and work in CARICOM countries of their choice.
Active interest in and participation of the Region’s people in the Caribbean Single Market and Economy are essential. 6.6
Increased employment and improved standards of living.
6.7
A well-functioning, harmonised regional financial market
6. What are some of the benefits of the Caribbean Single Market and Economy?
will facilitate economic activity and growth. There will be Some benefits of the Caribbean Single Market and Economy should
increased opportunities to invest in companies region-wide.
be: 6.1
Increased production and trade in goods and services in a
The harmonisation of monetary and fiscal policy measures could
combined market of 6.1 million persons, with land area of
provide the platform for macroeconomic stability within the
approximately 421,000 km and an estimated gross domestic
region, resulting in continued regional growth and development.
product of US$14.8 billion (in 1996).
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Further Reading
Chabrol, D., Caribbean Single Market timetable on track, Caricom view, May - June 2001, p. 15
Progress made in the implementation of the Caribbean Single Market and Economy, United Nations Economic Commission for Latin America and the Caribbean/Caribbean Development and Cooperative Committee (UN ECLAC/CDCC), series 1, 2003.
Clayton, C. and McKoy, J., Employers and the CSME, Caribbean Accountant 2004, p. 27-29
Field-Ridley, D., Caribbean Single Market and Economy: free movement and competitiveness, Port of Spain: UNDP, 2003
Rainford, R.G., Towards an integrated single market in the Caribbean Community, An address to the South Trinidad Chamber of Commerce, 1989.
Inside the Caribbean Single Market & Economy, Jamaica business, vol. 5, no. 3, November 2004, p. 31-40
Iyare, O., Skilled labour and international specialisation in the Caribbean region, St. Kitts: CCMS, 2003.
Jackson, J., Assessing the distribution of costs and benefits in the Caribbean Single Market and Economy (CSME), St. Kitts: CCMS, 2003, p. 29
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CSME Facts & Figures CSME Member
Antigua & Barbuda
Barbados
Belize
Dominica
Grenada
Guyana
Jamaica
Hon. Baldwin Spencer
The Rt. Hon. Owen
Hon. Said W.
Hon. Roosevelt
Dr. the Hon. Keith
H.E. Bharrat
Arthur
Musa
Skerritt
Claudius Mitchell
Jagdeo
The Rt. Hon. Percival J. Patterson, Prime Minister
250,010 (2000)
232,111(2000)
71,443 (mid-2000 est.)
100,700 (1999)
772,759 (mid-
2,605,787 (1999)
States Head of Government 72,310 (2000)
Population (year) Currency
1999) Eastern Caribbean
Belize Dollar
Eastern Caribbean
Eastern Caribbean
Guyana Dollar
Dollar (EC$)
(G$)
Dollar (EC$)
(Bds$)
(Bz$)
Dollar (EC$) Fixed peg
Fixed peg
Float
Fixed peg
Fixed peg
Fixed peg
EC$2.70 = US$1.00
EC$2.70 = US$1.00
G$194.90 = US$1.00
EC$2.70 = US$1.00
Bds$2.00 = US$1.00
Bz$2.00 =
Exchange rate regime
Barbados Dollar
(2002)
US$1.00
Per capita GDP
US$9,244.34
US$9,988.83
Area
km2
km2
442
(170
miles2)
431
(170
US$3,792.75
miles2)
22,966
km2
750
US$3,275.23
US$4,384.58
km2
km2
(290
miles2)
345
(133
miles2)
(8,866 miles2)
Capital
St. John’s
Bridgetown
Belmopan
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US$962.63 214,970
km2
(83,000 miles2) Roseau
St. George’s
Georgetown
Jamaica Dollar (J$) Managed Float
J$61.39 = US$1.00 (2004)
US$3,074.55 10,991 km2 (4,243.6 miles2) Kingston
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CSME Facts & Figures
CSME Member
Montserrat
Saint Lucia
Saint Kitts & Nevis
States
Saint Vincent & the
Suriname
Trinidad & Tobago
Grenadines Hon. John Alfred Osbourne, Chief Minister
Dr. the Hon. Kenny D. Anthony, Prime Minister
Hon. Dr. Denzil L. Douglas, Prime Minister
Dr. the Hon. Ralph E. Gonsalves, Prime Minister
H. E. Drs Runaldo R. Venetiaan, President
Hon. Patrick A. M. Manning, Prime Minister
Population (year)
10,608 (1995). 5,274 persons live on the island (mid-2000)
153,624 (1999)
39,529 (1999)
112,014 (1999)
418,921 (mid-1997)
1,290,400 (mid-1999)
Currency
Eastern Caribbean Dollar (EC$)
Eastern Caribbean Dollar (EC$)
Eastern Caribbean Dollar (EC$)
Eastern Caribbean Dollar (EC$)
Guilder
Trinidad & Tobago Dollar
Fixed peg
Fixed peg
Fixed peg
Head of Government
Exchange rate
Fixed peg
Managed Float
Float
EC$2.70 = US$1.00
Sf$2,550 = US$1.00 (2004)
TT$6.3 = US$1.00 (2004)
regime EC$2.70 = US$1.00
EC$2.70 = US$1.00
EC$2.70 = US$1.00
Per capita GDP
US$2,974.81 (1999)
US$4,722.37
US$9,114.72
US$3,135.80
US$2,204.12
US$8,331.32
Area
103 km2 (150 miles2)
616 km2 (238 miles2)
389 km2 (150 miles2)
Castries
163,820 km2 (63,251 miles2) Paramaribo
5,182 km2 (1,980 miles2)
Plymouth
269 km2 (102 miles2) Basseterre
Capital
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Kingstown
Port-of-Spain
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CSME Brain Teaser
International Department Research and Economic Programming Division Bank of Jamaica 13 January 2006
1.
2. 3. 4.
5.
What is the name of the Treaty that established CARICOM and was subsequently revised to allow for the establishment of the CSME? When will the Caribbean single economy be implemented? Which 3 countries are members of the Caribbean Single Market in 2005? True/False. The Caribbean Single Economy will allow for the further harmonisation of economic, monetary and fiscal policies among its members. True/False. National laws, policies and programmes of member states must be modified to accommodate the CSME.
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