Caribbean’s future rooted in integration

PRESIDENT and CEO of the Scotiabank Group, Richard Waugh, wants all countries, regardless of size, to be mindful of the importance of open markets to social and economic development, embracing the benefits of trade. Business leaders and entrepreneurs have an important role to play in this, he said.

Waugh was addressing the 125th Anniversary Dinner of the Trinidad and Tobago Chamber of Industry and Commerce at the Hilton Hotel and Conference Centre on Thursday night. Speaking on the challenges and opportunities for sustainable growth in today’s global economy, Waugh stressed the need for businesses and governments to remain open to trade in spite of any fears and challenges which may exist. He admitted that the global economy had recently experienced significant changes, particularly in the aftermath of “9/11,” but said since then many of the world’s leading economies, specifically the United States, have become more focused on their own agendas. He said this has resulted in the creation of barriers to global trade and investment which have affected a number of the trading partners of these countries, including those which can least afford it. He said failure of the WTO talks in Cancun, Mexico is a prime example of how global trade agreements have become increasingly difficult to achieve.

Waugh said by completing agreements with Singapore and Chile, the US demonstrated its readiness to take a more bilateral approach to achieve its own more narrowly based objectives in the absence of progress in multilateral discussions. “I believe that growth in hemispheric trade  throughout North, Central and South America and the Caribbean should be a key goal throughout the region. “It means that TT has to focus on what it can do with its friends and its trading partners in this region, this hemisphere. “I truly believe in the future of the Caribbean and that future is rooted in continued integration within the global economy and stronger economic links in our hemisphere,” he added.

Waugh said the Caribbean had become an increasingly important focus for the US, not only because of trade but for security reasons. He noted that the US has identified the Caribbean as a “third border” and the Bush administration had developed a Third Border initiative — a package of programmes focused on economic growth, health, education, law enforcement and cooperation. “The third border initiative is important. It is important because it shows that the US recognised the need for more development and stability of the Caribbean, not only as a clear priority in the context of the critical challenges of safety and security, but also as part of the growing economic integration throughout North, Central and South America,” Waugh said. He said large developed countries, such as the US and Canada, had a responsibility to support developing markets, both financially and in building the right legal framework to support economic growth, social improvements and wealth creation. However, governments and the private sector needed to understand the limitations of emerging countries. “It will take time and changes need to be managed carefully, recognising limitations in terms of resources that are available and the social changes that are needed,” he said.