Historical Realities and Imperatives

• Author: UWI-CARICOM Project
• Pages: 1-24

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Historical Realities and Imperatives

The goal of establishing a CARICOM Single Market and Economy

(CSME) was declared by the Heads of Government of the Caribbean

Community in the Grande Anse Declaration of 1989 (see Fig 1). The year

initially envisaged for that establishment was 1993; but that date was revised

repeatedly. Finally, the Caribbean Community1 held the ceremony for the

inauguration of the Single Market component of the CSME on 30th January

2006, in Kingston, Jamaica.

Only six Member States, namely Barbados, Belize, Jamaica, Guyana,

Suriname, and Trinidad and Tobago, signed the relevant Declaration. On

that occasion Prime Minister Arthur of Barbados noted:

“If we were to succeed, as we must, in making the fifteen (15) nations

of CARICOM, one Single Market and Economy, the stark reality is

that such a regional economy would still be the smallest and most

vulnerable bloc in a globalised world. Ours is therefore the Region

in today’s world where integration is most sorely needed as the

indispensable foundation on which to rest national and regional

endeavours in pursuit of equitable and sustainable development”. 2

The Prime Minister adverted to the necessity to ensure that the Single

Market does not become “a permanent coalition of unequals”; and

emphasised the special urgency that should be attached to the enterprise to

create the CSME and make it function effectively.

The OECS subgroup however delayed signing the Declaration. As with

CARIFTA in the 1960s, the OECS Member States chose to delay their

HISTORICAL REALITIES AND

IMPERATIVES

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2CSME: Challenges, Benefits, Prospects

accession, this time to 30th June 2006. As Prime Minister Gonsalves

explained, their behaviour was “… consistent with the caution which we

have had to exercise throughout the course of the evolution from CARIFTA

to CARICOM”, and “until they were satisfied that the new arrangement

would cater to their special concerns and vulnerabilities as microstates.” 3

On behalf of the subgroup, he announced the intention to establish the OECS

Economic Union through a revision of the Treaty of Basseterre on 18th June,

2006, that date being the 25th anniversary of their grouping. Unlike this

subgroup, the Bahamas and Haiti are unlikely to be able to accede for some

time.

The similarity between the staggering of the date of signing4 of the

Declaration to establish the Single Market and the step from CARIFTA to

CARICOM, with the OECS Members deferring signing, was striking if not

unexpected. Keen observers may have noted prior signals from the group.

Those observers may also have noted the existence of similarities in the

Fig 1:

Summary of the 1989 Grand Anse Declaration and Work

Programme

Establishment, in the shortest possible time, of a single market

and economy for the Caribbean Community, with the following steps

to be taken not later than 4 July 1993:

(1) The Common External Tariff, the Rules of Origin, and a

Harmonised Scheme of Fiscal Incentives to be fully revised,

agreed and effective by January 1991.

(2) Customs cooperation and strengthening of Customs

Administrations to prepare for a Customs Union.

(3) Signature of Agreement establishing the CARICOM Industrial

Programming Scheme (CIPS) by 30 September 1989.

(4) The enactment by January 1990 of the legislation required to

give effect to CIPS and the CARICOM Enterprise Regime

(CER).

(5) A scheme for the movement of capital introduced by 1993

starting with the cross listing and trading of securities on

existing stock exchanges.