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 CARICOM superseded the 19651972 Caribbean Free Trade Association (CARIFTA) CARIFTA had been organized to provide a continued economic linkage between the English-speaking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.

MEMBERS OF CARICOM
Currently CARICOM has 15 full members, 5 associate members and 7 observers.

All associate members are British Overseas territories.

The role of the associate members is not clearly defined yet. The observers are states which engage in at least one of CARICOMs technical committees

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

LIST OF MEMBERS

LIST OF ASSOCIATE MEMBERS

Anguilla - 4 July 1999 Bermuda - 2 July 2003 British Virgin Islands - 2 July 1991 Cayman Islands - 15 May 2002 Turks and Caicos Islands - 2 July 1991

LIST OF OBSERVERS
Aruba Colombia Curacao

Dominican Republic
Mexico Netherlands Antilles Puerto Rico Sint Maarten Venezuela

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

Free movement of labour

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

FACTORS PROMOTING REGIONAL CO-OPERATION

Common language-The CARICOM Member States, except for Haiti and Surinam, use English as the official language. 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; their small size also make it difficult for them to influence international organizations or countries individually. Limited resources

 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. Challenges of globalization Challenges of trade liberalization

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. The Region exports small percentages of its total production to intra-regional markets, while trade with extra-regional traditional partners - USA, Canada, the UK, and the rest of the European Union dominates by far CARICOMs total trade in goods.

 Trinidad and Tobago the leading exporter (73.4%) 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, entertainment, and other culturally related sectors Export of services, which is a primary source of foreign exchange, accounts for more than 70 per cent of their total exports

 Exports are also concentrated geographically among CARICOM states, with the US market accounting for more than 41.5 per cent of the Regions goods shipped overseas. The Regions main exports to the US market are natural gas, petroleum products, aluminium, and bauxite. The EU is the CARICOMs second most important export market, accounting for 12.4 per cent of the Regions exports.

The top 10 imports, which account for 34 per cent of the Regions total imports, are largely petroleum and its related products.

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

PERFORMANCE OF CARICOM COUNTRIES

EASE OF DOING BUSINESS

FACTORS CONTRIBUTING TO EASE OF BUSINESS IN CARICOM

RANKINGS ACCORDING TO THE REPORT

Overall Rankings Ranking of CARICOM nations

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

WORLD BANKS DOING BUSINESS 2013 REPORT

Highlights the ease of doing business by analysing regulations that apply to an economys businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, 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. starting a business 2. dealing with construction permits 3. getting electricity 4. registering property 5. getting credit 6. protecting investors 7. paying taxes 8. trading across borders 9. enforcing contracts 10. resolving insolvency.

STARTING A BUSINESS IN CARICOM NATIONS

Performance of select Caribbean countries on the ease of starting a business in 20112012 (Source: World Bank)

GETTING CREDIT IN CARICOM NATIONS

Performance of select Caribbean countries on the ease of securing credit in 20112012 (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 20112012 (Source: World Bank)

past 5 years.

RESOLVING INSOLVENCY IN CARICOM NATIONS no practice status means that a country has had zero insolvency cases a year over the

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

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; Return ticket; Proof of financial resources for personal maintenance, namely credit cards, travelers cheques, cash or combination thereof.

Immigration will grant the CARICOM National a definite stay of 6 months.

 Procedure after entry: Competent Authority for Right of Establishment:-

Each Member State shall designate a Competent Authority for Right of Establishment.
Relevant proof, such as Police Certificate, Financial Resources, Business Names Certificate / Certificate of Incorporation:-

After entry has been granted the CARICOM National must submit to the Competent Authority, relevant proof, such as Police Certificate, Financial Resources, Business Names Certificate / Certificate of Incorporation.

letter of approval to the CARICOM national:-

The Competent Authority will determine if all requirements to establish the particular business have been satisfied. Once all requirements are satisfied, the Competent Authority will issue a letter of approval to the CARICOM national copied to the Immigration Department.
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.

AREA OF COOPERATION BETWEEN INDIA AND CARICOM

Indias membership of the Caribbean Development Bank Greater Indian participation in Caribbean Supply of retroviral drugs for fighting HIV/AIDS.

CARICOM has also requested Indias contribution to CARICOM Development Fund (CDF) to fund economic activities with the CARICOM region.
Government of India funded the US$ 1 million for information technology and communication infrastructure. We provided computer software and community studio at the CARICOM Secretariat.

RELATIONSHIP BETWEEN INDIA AND CARICOM

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

 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. However, there are some regional exports that face high tariff barriers, some of which are agricultural products. In 2009, Indian importers spent US$266bn on global merchandise imports. India also represents a dynamic global market with import spending expanding by approximately 23% annually between 2001 and 2009

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

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, subject to conditions