Survival in CSME

Almost 50 years after the Constitution of the ill-fated West Indies Federation “affirmed” the “greatest possible freedom of movement of persons and goods within the Federation and set out the aim of establishing as quickly as possible a Customs Union including internal free trade” some Member States of Caricom are today on the verge of setting up the Caribbean Single Market and Economy (CSME). If the CSME can be achieved in 2005, as hoped,  it will allow, for virtually around the corner freedom of movement of persons, goods and capital and act as a long desired stimulus to trade between Caricom countries.

This is critical to the development of Jamaica, Trinidad and Tobago, Barbados and Guyana and other members of the Caribbean Community of Nations, particularly if it indeed takes effect from 2005 as planned and somewhat before the World Trade Organisation does away with restrictions to globalised free trade.  There is need for a breathing space for goods produced in Caribbean countries to be better positioned regionally. This year’s Hurricane Ivan, which did tremendous damage to the infrastructure, industries and agriculture of several of the Eastern Caribbean countries has made it that more difficult for them to produce for their home markets much less for export. Grenada’s export of nutmeg and mace, for example, whose expansion at a time of increased prices on the international market had resulted in needed though modest foreign exchange earnings has been hard it.

Reports are that it will take years for nutmeg production to reach anywhere close to the average level of the past five years. The story has been repeated with respect to other industries, for example, bananas and tourism. Even initial marginal gains at the outset of the CSME will provide a measure of hope for a revival of intra Caribbean trade and a turning around of Caribbean money within Caribbean economies. The Caribbean Single Market and Economy’s freedom of movement of goods at a time when the Region has been savaged by Hurricane Ivan and is on the brink of being denied preferential entry under the Convention of Lome of its bananas and sugar to the European Union must be viewed as crucial. 

And unless the CSME becomes a reality in 2005 and its implementation is not further delayed by politicians concerned only with being big fish in their small constituencies’ political ponds then the negative action by selfish politicians will allow for the swamping of Caribbean markets with foreign goods, a great deal of questionable quality. And where these goods are already produced in the region, the cheap foreign imports will land here unfettered by tariff and not merely challenge Caribbean goods in their once tariff protected  space, but cripple the industries as well. It is worth repeating that Caricom needs the fillip to its regional trade, at least, that will be afforded it by the CSME, so that it can have a chance to develop at least before the monster that is globalisation gobbles up the region.