Caricom Notes


Published on

Brief compilation of information on Caricom in Microsoft Word.

Published in: Education, Business, Technology
No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Caricom Notes

  1. 1. CARICOM – (These notes are to be studied with your textbook)<br />What is the Treaty of Chaguaramas? <br />The Treaty of Chaguaramas is the Treaty which established the Caribbean Community (CARICOM). It was signed at Chaguaramas, Trinidad, on 4 July 1973 <br />When did the Treaty of Chaguaramas enter into force? <br />The Treaty of Chaguaramas which established the Caribbean Community came into force on 1 August 1973 <br />Which countries are members of CARICOM? <br />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. <br />What are the specific objectives of CARICOM? <br />The Community has the following objectives: (a) improved standards of living and work; (b) full employment of labour and other factors of production; (c) accelerated, co-ordinated and sustained economic development and convergence; (d) expansion of trade and economic relations with third States; (e) enhanced levels of international competitiveness; (f) organisation for increased production and productivity; (g) the achievement of a greater measure of economic leverage and effectiveness of Member States in dealing with third States, groups of States and entities of any description; <br />(h) enhanced co-ordination of Member States' foreign and [foreign] economic policies; and (i) enhanced functional co-operation, including:<br /><ul><li>more efficient operation of common services and activities for the benefit of its peoples;
  2. 2. accelerated promotion of greater understanding among its peoples and the advancement of their social, cultural and technological development;
  3. 3. intensified activities in areas such as health, education, ransportation, telecommunications. </li></ul>How does CARICOM work? <br />The meetings of the Heads of Government and of the ministerial Councils, also known as institutions, represent the main means of achieving consensus on regional issues and policies. The Conference of Heads of Government is the highest decision-making forum and the final authority of the Community. It is made up of the Heads of Government of the Member States. Because of the increasing number of issues to be decided and implemented, a subset of the Conference, called the Bureau, was instituted in 1992. The Bureau meets as necessary and reports to the Conference. <br />The Community Council of Ministers is the second highest organ of CARICOM, and consists of Ministers responsible for Community Affairs and any other Minister designated by Member States in their absolute discretion. The Community Council has primary responsibility for the development of Community strategic planning and co-ordination in the areas of economic integration, functional co-operation and external relations. The Community Council also has the responsibility for establishing a system of regional/ national consultations in order to ensure the effectiveness of the decision-making and implementation processes in the Community. <br />The following Ministerial Councils were also established to streamline the functioning of the Community and increase the smooth functioning of the different sectors: <br />The Council for Trade and Economic Development (COTED), which has been charged with the responsibility for the promotion of trade and economic development of the Community; <br />The Council for Foreign and Community Relations (COFCOR), which has been charged with responsibility for determining relations between the Community, and international organisations and Third States; <br />The Council for Finance and Planning (COFAP), which has been charged with primary responsibility for economic policy coordination and financial and monetary integration of Member States. <br />The Council for Human and Social Development (COHSOD), which is responsible for human and social development in the Community especially in the areas of health, education, labour and industrial relations, youth, women, and sports. <br />The following Subsidiary Bodies have also been established: <br />(a) the Legal Affairs Committee composed of Ministers responsible for Legal Affairs and/or Attorneys-General of Member States; <br />(b) the Committee of Central Bank Governors consisting of the Governors and Heads of Central Banks of Member States or their nominees; <br />(c) the Budget Committee consisting of senior officials of Member States. <br />What is a CARICOM Single Market? <br />It is an arrangement which allows CARICOM goods, services, people and capital to move throughout the Caribbean Community without tariffs and without restrictions to achieve a single large economic space, and to provide for a common Economic and Trade Policy. <br />What is a CARICOM Single Economy? <br />A CARICOM Single Economy is an arrangement which further harmonises economic, monetary and fiscal policies and measures across all Member States of the Caribbean Community to underpin the sustainable development of the Region. This would mean the coordination of foreign exchange and interest rate policies, the harmonisation of tax regimes and of laws and the convergence of economic performance among other measures <br />Why the Single Market? <br />There is more economic and political strength from a grouping of 15 countries as against the strength of a single country. <br />The small states of the Caribbean face better prospects within the CARICOM grouping than they do if they face mega-blocs and superpowers across the negotiating tables individually. <br />The Single Market and economy creates more opportunities for employment, investment, production and trade for the inhabitants of the Caribbean Community. <br /><ul><li>Trade liberalisation is the movement towards the removal of trade barriers among the members of World Trade Organisation (WTO).
  4. 4. Globalisation is the process by which countries all over the world are becoming connected or similar especially because large companies are doing business in many different countries.</li></ul>How will the CARICOM Single Market and Economy be implemented? <br /><ul><li>By amending the Treaty which established the Caribbean Community (the Treaty of
  5. 5. Chaguaramas)
  6. 6. By modification of the national laws, policies and programmes of Member States to
  7. 7. accommodate these and other decisions made at the regional level
  8. 8. By active interest in and participation of the Region’s people in the CARICOM Single Market and Economy. </li></ul>The Treaty is being amended by way of Protocols. There are nine Protocols: <br />Protocol I addresses Organs, Institutions, Procedures of the Community <br />Protocol II addresses Right of Establishment. The Right to provide Services and the Right to move Capital by any CARICOM national in the Community, which has been defined to include the Single Market and Economy <br />Protocol III address the Community Industrial Policy <br />Protocol IV addresses Trade Liberalisation <br />Protocol V addresses the Community Agricultural Policy <br />Protocol VI addresses the Community Transport Policy <br />Protocol VII addresses Disadvantaged Countries, Regions and Sectors <br />Protocol VIII addresses Disputes Settlement <br />Protocol IX addresses Rules of Competition <br />These Protocols are now Chapters within the Revised Treaty. <br />Is the Caricom Single Market and Economy as political union? <br />The CARICOM Single Market and Economy is not a political union <br />Does the Caricom Single Market and Economy replace national identity and sovereignty? <br />The CARICOM Single Market and Economy is not a replacement for national identity and sovereignty<br />What are some of the benefits of the Caricom Single Market and Economy? <br />Some benefits of the CARICOM Single Market and Economy are: <br />Increased production and trade in goods and services in a combined market of over 6 million persons and for the world beyond. <br />Competitive products of better quality and prices <br />Improved services provided by enterprises and individuals, including transportation and communication <br />Greater opportunity for travel <br />Opportunities for nationals to study and work in CARICOM countries of their choice <br />Increased employment and improved standards of living <br />The CARICOM Secretariat, located in Guyana, is the principal administrative organ of the community.<br />INSTITUTIONS OF CARICOM<br /><ul><li>Caribbean Disaster Emergency Response Agency (CDERA) – headquarters is in Barbados
  9. 9. Caribbean Meteorological Institute (CMI) – headquarters s in Barbados
  10. 10. Caribbean Food Corporation – headquarters in Trinidad and Tobago
  11. 11. Caribbean Environmental Health Institute (CEHI) – headquarters is in St. Lucia
  12. 12. Caribbean Agricultural Research and Development Institute – headquarters is in Trinidad on the UWI St Augustine Campus
  13. 13. Caribbean Regional Centre for the Education and Training of Animal and Veterinary Public Health Assistants (REPAHA) – headquarters is in Guyana
  14. 14. Association of Caribbean Community Parliamentarians (ACCP)
  15. 15. Caribbean Centre for Development Administration (CARICAD) – headquarters is in Barbados
  16. 16. Caribbean Food and Nutrition Institute (CFNI) – has two locations, namely at the Mona Campus of UWI (Jamaica) and the St. Augustine Campus of UWI (Trinidad).
  17. 17. Caribbean Court of Justice (CCJ)</li></ul>ASSOCIATE INSTITUTIONS OF CARICOM<br /><ul><li>Caribbean Development Bank (CDB) – located in Barbados
  18. 18. Caribbean Examination Council (CXC) – located in Barbados
  19. 19. Caribbean Law Institute/Caribbean Law Institute Centre (CLI/CLIC) – located at the Faculty of Law, Cave Hill Campus of the UWI, Barbados
  20. 20. University of Guyana – located in Guyana
  21. 21. University of the west Indies – three campuses located in Jamaica, Trinidad and Barbados.</li></ul>FACTORS PROMOTING/HINDERING REGIONAL COOPERATION<br />Factors Promoting Regional Cooperation (Internal)<br />Domestic factors<br /><ul><li>Common language – The CARICOM Member States, except for Haiti and Surinam, use English as the official language;
  22. 22. The common history and cultural heritage which the people share make it possible for them to embrace common values and goals
  23. 23. Small population – this is necessary for them to co-operate to form a large market; their small size also make it difficult for them to influence international organizations or countries individually.
  24. 24. Limited resources (human and physical)
  25. 25. Common local and international problems eg. Difficulty in accessing international markets, pressure from international organizations such as the World Trade Organization, the International Monetary Fund, the World bank and the exploitation by international businesses require a united approach.</li></ul>Factors Promoting Regional Cooperation (External)<br /><ul><li>The challenges of Globalization
  26. 26. The Challenges of trade liberalisation – Caribbean governments can no longer restrict extra-regional imports to protect regional manufacturers; they MUST compete in the world market on the same terms as the rich, industrialised nations.
  27. 27. The increase in the number of trading bloc – the trend throughout the world is moving towards the establishment of trading blocs and economic groupings eg. The European Union (EU) and the Free Trade Area of the Americas (FTAA).</li></ul>NB: Trading blocs are made up of a large number of countries with the same political and economic aims, linked by special trading arrangements among them.<br />Factors Hindering Regional Cooperation <br /><ul><li>Conflict between territorial and regional demands and loyalities – some governments and citizens may be torn between the loyalty to their own country’s needs and demands and the regional integration objectives.
  28. 28. Differences in resource distribution – the unequal distribution of natural resources in the region makes those countries with limited resources feel that they would be at a disadvantage when trading with countries that have greater resources.
  29. 29. Countries produce similar products and this may hinder trading relationships because it has reduced the opportunities for trade.
  30. 30. Competition between countries – there is competition between countries for the location of new industries. There is also competition in the tourism industry.
  31. 31. Differences in stages of growth and development – the LDC fear that the differences in the stages of growth and development between them and the MDC put them at a disadvantage in trading with the MDC in the region. This has lead them to reject or delay implementing some of the integration decisions.
  32. 32. Influence of multi-national and metropolitan agencies – some of the countries in the region are not independent, eg. Montserrat and Anguilla are still subject to the control of England. An independent state is a country which is not governed or controlled by another country or organization.