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The Fifth Inter-sessional Meeting of the Conference of
Heads of Government of the Caribbean Community was held in Kingstown, St. Vincent
and the Grenadines on 11-12 March 1994.
The Heads of Government in attendance
were the Rt. Hon Hubert Ingraham, Prime Minister and Minister of Finance and
Planning of The Bahamas; the Rt. Hon. Manuel Esquivel, Prime Minister of Belize;
the Hon. Dame Mary Eugenia Charles, Prime Minister and Minister of Finance of
the Commonwealth of Dominica; His Excellency Dr. Cheddie Jagan, President of
the Co-operative Republic of Guyana; the Rt. Hon Percival J. Patterson, Prime
Minister of Jamaica; the Hon. Reuben Meade, Chief Minister of Montserrat; Dr.
the Rt. Hon. Kennedy Simmonds, Prime Minister and Minister of Foreign Affairs,
Home Affairs and Finance of St. Kitts and Nevis; the Rt. Hon. John Compton,
Prime Minister and Minister of Finance of Saint Lucia; the Rt. Hon James Mitchell,
Prime Minister and Minister of Finance of St. Vincent and the Grenadines; and
the Hon. Patrick Manning, Prime Minister of the Republic of Trinidad and Tobago.
Antigua and Barbuda was represented by the Hon. Robin Yearwood, Minister of
Public Works, Utilities, Communications, Transportation and Energy; Barbados
by the Hon. Warwick Franklin, Minister of Trade, Industry and Commerce, and
Grenada by Dr. the Hon. Francis Alexis, Attorney-General and Minister of Legal
Affairs.
The CARICOM Associate Member,
The British Virgin Islands was represented by the Hon. Ralph O’Neal, Deputy
Chief Minister. Specially invited to the Conference was Mr. Michael Camdessus,
Managing Director of the International Monetary Fund.
In his opening remarks, the incoming
Chairman of the Conference, the Rt. Hon. James Mitchell, Prime Minister of St.
Vincent and the Grenadines noted that free trade is sometimes difficult
because “the playing field is not level”. The
challenge he said is to ensure adequate and meticulous preparation for free
trade.
Haiti
The Heads of Government reviewed
the Report of the Foreign Ministers’ Committee on the recent developments in
Haiti. They expressed grave concern over the continued deterioration of the
situation in Haiti and urged that international efforts to resolve the crisis
should be pursued with even greater urgency. The Heads of Government re-affirmed
their support for the Governor’s Island Accord and for sanctions imposed by
the international community.
They instructed the Foreign Ministers’
Committee on Haiti to meet with the relevant parties and determine what additional
measures may be undertaken by CARICOM Governments to intensify their active
participation in international efforts towards the restoration of democracy
and constitutional order in Haiti.
The Privatisation of
LIAT (1974) Ltd.
The Heads of Government noted
in the context of CARICOM’s commitment to the privatisation of LIAT (1974) Ltd,
the Governments of Antigua and Barbuda and Trinidad and Tobago reaffirmed their
previous offer tabled at the Second Special Meeting of the Conference in Port-of-Spain
in October 1993, and agreed to submit jointly a detailed proposal for the purchase
of LIAT (1974) Ltd., at the Fifteenth Meeting of the Conference in July 1994.
Tourism
The Heads of Government recognising
the importance of tourism to the economies of Member States, and the efforts
to develop this industry in an environmentally friendly manner, consistent with
the due exercise of their rights of sovereignty, expressed solidarity with those
countries now threatened by prospects of a visitor boycott campaign by certain
external groups and deplored such a campaign which would be detrimental to their
economic development and to the quality of life of their citizens.
INTERNATIONAL ECONOMIC ENVIRONMENT
The Heads of Government recognised
that the Meeting of the Conference had been convened against the backdrop of
an international economic environment which, due to ongoing profound structural
and cyclical changes, presented the Region with a number of opportunities and
significant challenges.
They noted that the external economic
environment was becoming increasingly characterised by the continuing globalisation
of production, investment and trade, the integration of world markets to which
impetus had been given by the recently concluded Uruguay Round of Multilateral
Trade Negotiations (MTNs), and the consolidation of regional integration movements,
particular, the North American Free Trade Area (NAFTA) and the European Single
Market.
The Heads of Government recognised
the urgency of stressing in international for a that fair trade is critical
to small economies in this new global economic environment. In this regard,
significant developments within CARICOM were the establishment of formal trade
and co-operation relations between CARICOM and other sub-regional processes,
and the imminent establishment of a CARICOM-sponsored Association of Caribbean
States to advance economic integration and functional co-operation.
The Heads of Government recognised
that a collaborative effort was necessary to confront the changes being forced
upon the Region. In this context, they called for the establishment of a Special
Development Fund by Multilateral Financial Institutions, such as the International
Monetary Fund, the World Bank and the Inter-American Development Bank, with
the participation of Donor Countries, to assist CARICOM countries to effect
a lasting transformation of their economies.
FINANCING FOR REGIONAL DEVELOPMENT
The Heads of Government received
a Report on a Symposium on Financing the New Caribbean which was held in Montego
Bay, Jamaica in march 1994. This symposium concluded that there would be need
for greater reliance on the mobilisation of private savings to finance development.
They, therefore, agreed to establish a Working Group to develop policies and
measures for increasing private investment in the Region, in areas such as the
promotion of domestic private savings, the accelerated development of regional
capital markets and increased access to foreign investment. The Group, working
under the aegis of the CARICOM Secretariat, will be chaired by Sir Alister Mc
Intyre
The Banana Industry
The Heads of Government considered the scenarios facing
the banana industry in the Caribbean. These relate to the report of the Second
GATT Panel on the challenge by Latin American Banana Exporting Countries to
the import regime of the European Union (EU), the compromise offer by the EU,
the increasingly active role of the United States and Mexico, the withdrawal
of the European offer and counter proposals by various Latin American Exporting
Countries, the implications of the possible coming into effect in 1995 of the
World Trade Organisation (WTO) and its new Dispute Settlement Procedures. They
welcomed the continuing efforts of the Caribbean Banana Exporting Countries,
and those of the Hon. Dame Mary Eugenia Charles and other Prime Ministers, to
promote the Caribbean position and seek a solution which would minimise the
threat to the Region’s traditional market.
The Heads of Government agreed
to maintain political contact with decision-makers in the European Union, particularly
the British Government, on the adoption of the Aid Regulation; seek to build
a coalition with those Latin American countries most inclined to work towards
a negotiated solution; begin work within the ACP to obtain the waiver in the
GATT for the Lomé Agreement; mandate the CARICOM Secretariat to prepare a detailed
analysis of the Second Panel Report; and intensify efforts for acceptance by
the European Union Council of the Commission’s recommendations for the provision
of financial resources to ACP States to diversify their economies.
The General Agreement
on Tariffs and Trade (GATT)
The Heads of Government noted
the formal conclusion of the Uruguay Round of Multilateral Trade Negotiations
(MTNs) on t15 December 1993. They observed that the Forty-First Meeting of the
Common Market Council held in February 1994 had taken certain decisions with
regard to offers made by Member States in the areas of market access in goods
and in the new and increasingly important area of Trade in Services.
The Heads of Government recognised
that while the new Agreement would widen the scope for global free trade it
would reduce the level of preference which CARICOM States enjoy in some markets
and for certain products such as bananas and sugar. The Heads of Government
also expressed concern on several matters including issues regarding the International
Property Rights Agreement, and the likely negative impact of the Uruguay Package
on net-food importing countries.
They noted that the new World
Trade Organisation (WTO) will play a much more important role in the management
of international trade in goods and services and other trade and investment
related areas. For these reasons Heads of Government urged Member States to
seek to join the WTO.
The Heads of Government also encouraged
full representation at the GATT Ministerial Meeting scheduled for April 1994
in Morocco, at which the Uruguay round Agreements would be open for signature.
North America Free
Trade Agreement (NAFTA)
The Heads of Government considered
the implementation of NAFTA, the implications for the Caribbean Basin Initiative
(CBI), and the future relationship of CARICOM with the NAFTA. They were concerned
that the implementing legislation for NAFTA did not seek to alleviate the potential
adverse impact on their economies.
They recalled discussions between
five CARICOM Heads of Government and President Clinton on the issue in August
1993 and in that context requested the Chairman of the Conference to write to
President Clinton to ascertain the actions taken with respect to the understanding
reached at that Meeting.
The Heads of Government recognised
that NAFTA was a critical factor in the Region’s immediate development strategy.
They therefore decided that the Community would seek inclusion on the list of
countries eligible for early negotiations for entry into NAFTA.
They mandated the Secretariat
to organise a comprehensive study of the implications of NAFTA and NAFTA membership
for CARICOM as a group, the OECS sub-region and for the individual Member States.
The results of that study should be available by the Fifteenth Meeting of the
Conference in July 1994.
In view of the likely adverse
impact of NAFTA on some sectors of production and the time which will be involved
in negotiating the relationship with NAFTA, they agreed to continue their efforts
to secure parity of treatment for CBI excluded products.
The Mid-Term Review
of Lomé IV
The Heads of Government recalled
that the Lomé IV Convention made provision for a mid-term review, including
negotiation of a second five-year financial protocol which would provide more
time for implementation to achieve the Convention’s objectives in a more effective
manner. In this context, they observed that the ACP policy position was to limit
the number of areas it would propose for re-negotiation to the areas of Trade
in Services, Development of Trade, Aspects of Development Finance Co-operation
and Maritime Transport.
The Heads of Government endorsed plans to use the opportunity
offered by the next CARIFORUM Meeting scheduled for the Dominican Republic in
April to prepare and refine the Caribbean position and that the delegation to
the Meeting of the Extended Bureau in Swaziland in May 1994 should be given
a clear mandate to protect the interests of the Region. They called on Member
States to participate actively in all stages of the preparatory process and
the negotiations.
Meeting with the Managing
Director of the International Monetary Fund (IMF)
The Heads of Government and the Managing Director of the
International Monetary Fund addressed, inter alia, the policies
which might be adopted by CARICOM Member States in the context of the current
and anticipated international economic environment and the economic situation
of the CARICOM Member States. They welcomed the commitment given by the Managing
Director of the Fund to provide a programme of technical assistance for training,
particularly in key aspects of international financial management, to convene
a symposium on the peculiar problems facing CARICOM Member States, and to keep
the problems related to the international indebtedness of CARICOM Member States
under review in the context of the high percentage of current income which certain
countries are required to devote to debt servicing. There was also an expressed
willingness on all sides to explore the concept of “collective adjustment” through
which technical experts from the Fund and the Region would work together to
define ways in which the integration dimension of adjustment could be addressed
in a manner that complements and reinforces national adjustment measures.
Global Conference on Sustainable Development
of Small Island Developing States
The Heads of Government received from Barbados a Report
on preparations for the United Nations Global Conference on the Sustainable
Development of Small Island Developing States which is to be held in Barbados
from 25 April – 6 May 1994.
The Heads of Government recalled the strong support for
the Conference made at their Thirteenth Meeting in July 1992. They reiterated
that the Global Conference was not only important for all small developing states
but also for the entire international community. They underscored that the Conference
represented the first effort to implement a major recommendation from the United
Nations Conference on Environment and Development (UNCED) and a test of the
international community’s commitment to address jointly the imperative of sustainable
development.
The Heads of Government confirmed the intention of their
Governments to participate fully in the Conference and to do all they could
to facilitate and encourage the activities of the Non-Governmental Organisations
(NGOs), especially the exhibition on Sustainable Technology.
A New Global Humanitarian Order
The Heads of Government called for the establishment of
a New Global Humanitarian Order to respond to the widening gap separating the
rich and poor within the countries of the North and South, and between the North
and South. They were of the opinion that if the problem of poverty, in all its
forms, were not addressed, it would result in pervasive alienation, frustration
and hopelessness posing increasing threats to democratic governments and to
international peace and security.
They therefore pledged to work at the regional level and
in concert with the high-level intergovernmental group established by the Commonwealth
Heads of Government in October 1993, to advance this concept globally.
The Heads of Government supported the call for accelerated
reduction in expenditure on arms both in the North and the South and to use
the savings as a peace dividend to finance jobs, bring about poverty alleviation,
enhance other social benefits and give debt relief to the developing countries.
Joint representation at UNESCO
The Heads of Government received a proposal from the Standing
Committee of Ministers responsible for Education and Culture (SCME) for joint
representation of Member States at UNESCO, and agreed on a formula for the funding
of this initiative.
CARIFESTA VI
The Heads of Government endorsed the proposal of the Government
of Trinidad and Tobago to host CARIFESTA VI during the period 19 August – 2
September 1995, and agreed that Trinidad and Tobago should proceed with the
implementation of that project.
Appreciation
The Heads of Government expressed their appreciation for
the skilful manner by which Prime Minister Mitchell steered the Conference to
a successful conclusion. They also requested him to convey to the Government
and People of St. Vincent and the Grenadines their gratitude for the very warm
hospitality extended to them during their stay.
Date and Venue for the Fifteenth Meeting Of
the Conference
The Heads of Government recalled the kind offer of Barbados
to host the Fifteenth Regular Meeting of the Conference on 4 – 7 July 1994,
and looked forward to advancing the work of the Community at that Meeting.
Kingstown, St. Vincent and the Grenadines
12 March 1994
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