CARICOM

HOW CARICOM?
The new CARIFTA agreement came into effect on May 1, 1968, with the participation of Antigua, Barbados, Trinidad and Tobago and Guyana. The original idea to permit all territories in the Region to participate in the Association was achieved. October 1972, transform CARIFTA into a Common Market and establish the Caribbean Community of which the Common Market would be an integral part. At the Eighth Heads of Government Conference of CARIFTA held in April 1973 in Georgetown, Guyana the decision to establish the Caribbean Community was brought into fruition with the consideration of Heads of Government of the draft legal instruments and with the signing by 11 members of CARIFTA (the exception being Antigua and Montserrat).

The Caribbean Community and Common Market (CARICOM) was established by the Treaty of Chaguaramas, which was signed by Barbados, Jamaica, Guyana and Trinidad & Tobago and came into effect on August 1, 1973. Subsequently the other eight Caribbean territories joint CARICOM. The Bahamas became the 13th Member State of the Community on July 4, 1983, but not a member of the Common Market

INTRODUCTION
• The Caribbean Community and Common Market or CARICOM is a trading bloc. • It came into effect on August 1, 1973. • CARICOM superseded the 1965–1972 Caribbean Free Trade Association (CARIFTA) • CARIFTA had been organized to provide a continued economic linkage between the English-speaking countries of the Caribbean following the dissolution of the West Indies Federation which lasted from 3 January 1958 to 31 May 1962.

• The role of the associate members is not clearly defined yet. 5 associate members and 7 observers. • All associate members are British Overseas territories.MEMBERS OF CARICOM • Currently CARICOM has 15 full members. • The observers are states which engage in at least one of CARICOM‘s technical committees .

4 July 1974 The Bahamas .2 July 2002 Jamaica .4 July 1983 Barbados .1 May 1974 Suriname .1 May 1974 Grenada 1 May 1974 Guyana .1 May 1974 Dominica . Vincent and the Grenadines .1 August 1973 LIST OF MEMBERS .1 August 1973 Belize .1 May 1974 St.1 May 1974 Saint Lucia .1 August 1973 Haiti .26 July 1974 St.• • • • • • • • • • • • • • • Antigua and Barbuda . Kitts and Nevis .1 August 1973 Montserrat .4 July 1995 Trinidad and Tobago .

2 July 1991 • Cayman Islands .LIST OF ASSOCIATE MEMBERS • Anguilla .15 May 2002 • Turks and Caicos Islands .4 July 1999 • Bermuda .2 July 2003 • British Virgin Islands .2 July 1991 .

LIST OF OBSERVERS • Aruba • Colombia • Curacao • Dominican Republic • Mexico • Netherlands Antilles • Puerto Rico • Sint Maarten • Venezuela .

• Common External Tariff • Free movement of Capital • A Common trade policy • Free movement of labour .OBJECTIVES • Free movement of goods and services.

ORGANISATIONAL STRUCTURE • Secretariat: Secretariat  Secretary-General  Deputy Secretary-General  General Counsel • Chairman • Heads of government •     Community council:council for finance and planning foreign and community relations human and social development Trade and economic development .

BENEFITS OF CARICOM SINGLE MARKET & ECONOMY Increased production and trade-Increased production and trade in goods and services in a combined market of over 6 million persons and for the world beyond Competitive products-Competitive products of better quality and prices Improved Services-Improved services provided by enterprises and individuals. including transportation and communication .

 Greater opportunity for travel  Opportunities for nationals to travel and work in caricom countries of their choice  Increased employment  Improved standard of living .

except for Haiti and Surinam. their small size also make it difficult for them to influence international organizations or countries individually. • Limited resources . use English as the official language.FACTORS PROMOTING REGIONAL CO-OPERATION • Common language-The CARICOM Member States. • Common values and goals-The common history and cultural heritage which the people share make it possible for them to embrace common values and goals • Small population-this is necessary for them to co-operate to form a large market.

• Local and international problems-eg. the International Monetary Fund. • Challenges of globalization • Challenges of trade liberalization . pressure from international organizations such as the World Trade Organization. the World bank and the exploitation by international businesses require a united approach. Difficulty in accessing international markets.

PATTERN OF TRADE • CARICOM countries have relatively open economies • CARICOM countries rely heavily on imports for inputs into local production and to satisfy consumer demand. Canada. and the rest of the European Union – dominates by far CARICOM‘s total trade in goods. the UK. while trade with extra-regional traditional partners . • The Region exports small percentages of its total production to intra-regional markets.USA. .

which is a primary source of foreign exchange.4%) and Jamaica (28%) the major importer • The majority of CARICOM economies are predominantly service-based • CARICOM Region has a clear comparative advantage in the area of services. particularly in tourism. and other culturally related sectors • Export of services.• Trinidad and Tobago the leading exporter (73. entertainment. accounts for more than 70 per cent of their total exports .

4 per cent of the Region‘s exports. • The Region‘s main exports to the US market are natural gas. aluminium. which account for 34 per cent of the Region‘s total imports. • The EU is the CARICOM‘s second most important export market. are largely petroleum and its related products. and bauxite. accounting for 12. • The top 10 imports. petroleum products. with the US market accounting for more than 41.• Exports are also concentrated geographically among CARICOM states. .5 per cent of the Region‘s goods shipped overseas.

the Dominican Republic. Suriname. . and Trinidad and Tobago • The WEF defines competitiveness as “the set of institutions. Haiti.COMPETITIVENESS IN CARICOM • Within the 148 countries surveyed. policies. Jamaica. seven Caribbean/CARCIOM countries were included: Barbados. and factors that determine the level of productivity of a country‖. Guyana.

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PERFORMANCE OF CARICOM COUNTRIES .

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EASE OF DOING BUSINESS .

FACTORS CONTRIBUTING TO EASE OF BUSINESS IN CARICOM .

RANKINGS ACCORDING TO THE REPORT Overall Rankings Ranking of CARICOM nations .

. THE BETTER THE RANKING.NOTE: THE LOWER THE NUMBER.

dealing with construction permits 3. .WORLD BANK‘S DOING BUSINESS 2013 REPORT • Highlights the ease of doing business by analysing regulations that apply to an economy‘s businesses during their life cycle. registering property 5. protecting investors 7. paying taxes 8. including start-up and operations. getting electricity 4. trading across borders 9. enforcing contracts 10. getting credit 6. and protecting investors • The Doing Business 2013 study assesses local business regulations that affect small-to-medium sized businesses across the following 10 indicators: 1. trading across borders. starting a business 2. resolving insolvency. paying taxes.

STARTING A BUSINESS IN CARICOM NATIONS • Performance of select Caribbean countries on the ease of starting a business in 2011—2012 (Source: World Bank) .

GETTING CREDIT IN CARICOM NATIONS Performance of select Caribbean countries on the ease of securing credit in 2011—2012 (Source: World Bank) .

PAYING TAXES IN CARICOM NATIONS Performance of select Caribbean countries on the ease of paying taxes and the burden of those taxes on businesses in 2011—2012 (Source: World Bank) .

RESOLVING INSOLVENCY IN CARICOM NATIONS ―no practice‖ status means that a country has had zero insolvency cases a year over the .past 5 years.

removing bottlenecks and bureaucracy. which is likely to continue into the foreseeable future • More critical for governments to endeavour to create more enabling environments by implementing policies. . fostering efficiency etc that encourage and facilitate investment and innovation.OVERVIEW • The competitiveness of Caribbean/CARICOM countries has been declining • Most countries in the region are still experiencing an economic decline.

ENTRY PROCEDURES FOR CARICOM NATIONALS • Procedure at Point of Entry:CARICOM Nationals who wish to move from one CARICOM Member State to another in order to establish a business will have to present the following at point of entry: • Valid passport. Proof of financial resources for personal maintenance. . cash or combination thereof. • Return ticket. namely credit cards. travelers cheques. Immigration will grant the CARICOM National a definite stay of 6 months.

such as Police Certificate. relevant proof.• Procedure after entry:• Competent Authority for Right of Establishment:- Each Member State shall designate a Competent Authority for Right of Establishment. Financial Resources. Business Names Certificate / Certificate of Incorporation. Business Names Certificate / Certificate of Incorporation:- After entry has been granted the CARICOM National must submit to the Competent Authority. such as Police Certificate. • Relevant proof. Financial Resources. .

the Competent Authority will issue a letter of approval to the CARICOM national copied to the Immigration Department. Once all requirements are satisfied. .• letter of approval to the CARICOM national:- The Competent Authority will determine if all requirements to establish the particular business have been satisfied. • If the business is established within the 6 months-Letter of Approval from the Competent Authority:- If the business is established within the 6months period then the CARICOM National must report to the Immigration Department to further regularize his / her stay with the following document: (i) Letter of Approval from the Competent Authority Immigration will grant the CARICOM National an indefinite stay.

• CARICOM has also requested India‘s contribution to CARICOM Development Fund (CDF) to fund economic activities with the CARICOM region. • We provided computer software and community studio at the CARICOM Secretariat. • Government of India funded the US$ 1 million for information technology and communication infrastructure.AREA OF COOPERATION BETWEEN INDIA AND CARICOM • India‘s membership of the Caribbean Development Bank • Greater Indian participation in Caribbean • Supply of retroviral drugs for fighting HIV/AIDS. .

.‘ it finds. • ‗Between 2001 and 2009. ‗CARICOM exporters expanded their export sales generated in India by an average of 59%. making this one of the region‘s most dynamic export markets‘ over this period.RELATIONSHIP BETWEEN INDIA AND CARICOM • CARICOM‘s exports to India have grown fast in the last decade but are still mainly in the extractive industries. exports of liquefied natural gas and crude petroleum oil from Trinidad & Tobago accounted for 72% merchandise exports. However.

some of which are agricultural products. Indian importers spent US$266bn on global merchandise imports. However. • In 2009. • India also represents a dynamic global market with import spending expanding by approximately 23% annually between 2001 and 2009 . there are some regional exports that face high tariff barriers.• Since most of these goods face zero or low tariffs in the Indian market. the CRNM does not see this as a priority area for trade negotiations.

and Barbados.• Among the CARICOM countries. The Bahamas is the leading market for India‘s exports. • Trinidad and Tobago is the leading import source. Suriname Guyana. Haiti. accounting for 77% of India‘s total exports to the region during 2009-10 • Other major export destinations of India in the region are Trinidad and Tobago. Jamaica. accounting for 79 percent of India‘s total imports from the region during 2009-10 .

subject to conditions .RELATION WITH THE US • CARICOM-United States trade relations were formalised in January 1984 under the Caribbean Basin Economic Recovery Act (CBERA) • Caribbean Basin Initiative (CBI) grants duty-free access to the US market subject to rules of origin • In 2000. the preferences were expanded through the United StatesCaribbean Basin Trade Partnership Act (CBTPA) • Preferential tariff and quota treatment granted for certain textile and apparel articles imported into the US from NAFTA countries.

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