The FTAA victory signal

This country sent its most convincing signal to date that it was assured of hosting the headquarters of the Free Trade Area of the Americas (FTAA) when it began construction on Thursday of a waterfront complex in Port-of-Spain clearly to accommodate offices of the FTAA Secretariat. Demolition of the relatively recent Cruise Ship Complex has started, and the breaking down of the decades-old Breakfast Shed is expected to begin shortly. The Cruise Ship Complex has been relocated to Shed Four, while no decision appears to have been taken for the new home of the Breakfast Shed, although caterers say they have been advised, unofficially, that they would have to move by the end of February and the Port Authority insists that negotiations were in progress.

Trinidad and Tobago with a comfortable majority of votes needed to win selection for the housing of the FTAA Secretariat is still, assisted by other member states of the Caribbean community of nations, canvassing the support of uncommitted Latin American countries. By the time the vote is taken, Trinidad and Tobago may have the majority support ahead of Miami. Sensibly and despite the lead, however, authorities here are not counting their chickens before they are hatched and have adopted the conservative approach of stating that “should Trinidad and Tobago win the Secretariat,” the waterfront complex to be constructed would be the site of a new world-class hotel, presumably five star, and several conference centres. But the siting of the FTAA headquarters appears a virtual fait accompli, bar the election itself, whenever this takes place, and the formal signing of the instruments.

But as we have pointed out before while the housing of the Secretariat of the FTAA in Port-of-Spain will have its pluses, the creation of the FTAA will pose formidable challenges for this country and the rest of Caricom. The recent approval by the House of Representatives of the Caribbean Court of Justice Bill with its emphasis on the Caribbean Single Market and Economy (CSME) component will better position Trinidad and Tobago and other similarly circumstanced Caricom countries to strengthen regional trading links. The CSME will herald the unburdening by Caricom member states of the long bother of intra-regional tariff walls and with this will come the free movement of goods.

Other pluses will be the free movement of people and money. No matter how relatively short the breathing space between the adoption of the CSME and the creation of the FTAA (as of now no earlier than 2006) it will provide the Caricom countries with the opportunity to expand intra-Caribbean trade as noted earlier. There will be a need too for the region together with other national units to lobby for a short to medium term retention of tariff structures with respect to trade with the more developed FTAA countries. This, together with the doing away of inter-Caricom tariff barriers, will lead to a needed increase in employment levels, a greater turning around of money within the several Caricom economies and greater revenues from personal income and corporation taxes and from value added tax.