Interesting intentions of OECS leaders

THE EDITOR: It is with keen interest that I read about the intention of leaders of the Organisation of Eastern Caribbean States to introduce a common passport requirement of all nationals in its territories. Plans are also in train for the formulation of an economic union, which will serve to integrate the sub-region.

The OECS has in fact surmounted a most fundamental obstacle with respect to the formation of a free trade zone, with the introduction of a common currency and a common central bank. The above appears to be pivotal with respect to the formation of a single market and economy. The introduction of a common currency in the form of an Economic Monetary Union (EMU), has been and still is a major sticking point with respect to European Union (EU) and United Kingdom (UK) relations, with Britain choosing to opt-out of inclusion as regards the introduction of a monetary union, even prior to the introduction of the Euro, as the common currency within European Union.

With the proposal formation of the Free Trade Area of the Americas (FTAA) scheduled to come on stream in 2005, (which would virtually include all countries of the Western Hemisphere, except Cuba) and the proposed removal of preferential access of goods from African Caribbean and Pacific countries (ACP), with respect to sugar, meats, bananas and rum, chiefly due to World Trade Organisation (WTO) pressure, as early as 2006, under the LOME Convention (1973), it has now become imperative that, Caricom moves with dispatch to iron out their differences and to prepare to do business as a single unit as opposed to separate entities. In this respect, the initiative led by Prime Minister, Patrick Manning of TT and the Prime Minister of St Vincent, which although a political union, can only serve as a uniting force in helping to further integrate the Caribbean region and thus should have the support of all and sundry.

That having been said, the road ahead indeed appears to be turbulent and a number of pre-requisites appear necessary. They include, inter alia — the need for a common currency within Caricom — This can indeed be very problematic, given the vast disparities in terms of currency values, balance of payments and gross domestic products (GDP), among the various territories. The elimination of all quotes and tariffs and any other barriers which tend to inhibit free trade. Free movement of skilled labour. Would a common passport be in effect? What mechanisms are in place to prevent an influx of nationals from the Lesser Developed Countries (LDC’s) to the More Developed Countries (MDC’s), especially to TT in search of a “better life.” Integration of capital markets, including synchronised stock — exchange benchmark valuations. It is instructive that to attempt to enter the proposed FTAA as a single entity is a recipe for failure and that the way to go is indeed a single bloc. This trend is evidenced given the already formed mega free trade areas such as NAFTA (USA, Mexico, Canada), MERCOSUR, (South — America), the EU (Europe) and the Asian-Pacific Economic Co-operation, in the eastern hemisphere. Caricom needs to be cognisant of the above and the fact that time is of the essence.

PETER NARCIS
Chaguanas