Mr. Chairman, Dr. Clarence Henry
Prime Minister, Hon. Lester Bird
Hon. Gaston Browne, Minister of Planning, Trade, Industry, Commerce and Public Service Affairs
Father Charles Willock
Ambassador Lionel Hurst
Mr. John C. Charles and colleagues of the Secretariat
Members of the media
Ladies and Gentlemen

Let me begin by complimenting the CSME Unit of Antigua and Barbuda and the  Ministry of Trade, Industry, and Commerce for organising the Consultation.  It recognises that Antigua and Barbuda has obligations, particularly to ensure that its population is informed on the CSME, and is acting on its obligations.

The establishment of the CSME Unit itself is an important obligation achieved by Antigua and Barbuda.

THE IMPORTANCE OF THE CSME

The creation of the CARICOM Single Market and Economy (CSME) is a major stage in the deliberate process of Caribbean integration which began here, at Dickenson Bay, in 1965, with the initiation of the Caribbean Free Trade Area (CARIFTA).  CARIFTA became a reality in 1968 and was deepened into the Caribbean Community and Common Market (CARICOM) in 1973.  This was a giant step.  It not only consolidated the market for goods produced in the Region, it defined our trade relations with the rest of the world, introduced a foreign policy component and opened the way for the provision of common services and cooperation in the social sector development.

Antigua and Barbuda did not take that step with the rest of the group, but quickly caught up.

Why the decision for the CSME?  Why did Caribbean leaders, assembled in Grand Anse, Grenada, take the decision in 1989 to make a second giant step?  Was it to be heroic?  I suggest not.  There were two major reasons which define and underpin the importance of the CSME.

First, CARICOM countries were at a point where they were being forced to fundamentally adjust - restructure - their internal economies.  They had to allow more competition from producers outside.  Simultaneously, they recognised that services were becoming as important as goods in trade and in enhancing the capacity for trade among countries; and that international investment capital was becoming more difficult and expensive to attract.

Investors and producers within individual CARICOM states had to be given a larger space within which to source and organise their factors - capital, managerial and skilled labour, land for production - to supply the larger market which was provided under CARICOM.  Also, providers of services - consultants, engineers, lawyers etc. - had to be given the same rights as providers of goods

INVESTORS AND PRODUCERS WITHIN INDIVIDUAL CARICOM STATES HAD TO BE GIVEN A LARGER SPACE WITHIN WHICH TO SOURCE AND ORGANISE THEIR FACTORS - CAPITAL, MANAGERIAL AND SKILLED LABOUR, LAND FOR PRODUCTION - TO SUPPLY THE LARGER MARKET WHICH WAS PROVIDED UNDER CARICOM. ALSO PROVIDERS OF SERVICES - CONSULTANTS, ENGINEERS, LAWYERS ETC - HAD TO BE GIVEN THE SAME RIGHTS AS PROVIDERS OF GOODS. THEY ALSO HAD TO BE ABLE TO ORGANISE THEMSELVES AS THEY WERE IN COMPETITION WITH THIRD COUNTRY SUPPLIERS ESPECIALLY FOR CONTRACTS FUNDED WITH RESOURCES MOBILISED FROM EXTERNAL DONORS OR LENDING AGENCIES, SUCH AS THE WORLD BANK AND INTER-AMERICAN DEVELOPMENT BANK (IDB).

THE 1973 TREATY OF THE CHAGUARAMAS DID NOT PROVIDE ANY SPECIAL OPPORTUNITIES FOR SERVICE PROVIDERS TO ORGANISE AND SUPPLY THEIR SERVICES. IT ALSO DID NOT GUARANTEE THE RIGHT FOR A CARICOM INVESTOR TO ESTABLISH HIS/HER BUSINESS IN ANOTHER MEMBER STATE. THIS COULD BE DONE BUT AT THE DISCRETION OF AND ON THE CONDITIONS SET BY THE GOVERNMENT OF THAT MEMBER STATE.

PUT BRIEFLY, BY 1979, THERE WAS AN INTERNAL DYNAMIC TO DEEPEN THE INTEGRATION PROCESS. IT WAS THE ONLY PATH WHICH OFFERED DYNAMIC CARIBBEAN BUSINESS PERSONS A CHANCE TO SURVIVE IN THE CARICOM MARKET.

THERE WAS A SECOND FACTOR. IN 1989 IT WAS ALREADY CLEAR THAT THE GLOBAL ECONOMY WAS IN A PROCESS OF FUNDAMENTAL CHANGE. THE FULL NATURE AND SCOPE OF THE GLOBALISATION AND LIBERALISATION PROCESS WERE NOT CLEAR, BUT THE OUTLINES WERE:

• COUNTRIES, BIG COUNTRIES WERE ORGANISING INTO LARGE BLOCS;
  
• INTERNATIONAL COMPANIES WERE IN SEARCH OF LARGER MARKETS. THE BIGGER THE BETTER -THE NUMBERS GAME WAS ON;
  
• PROTECTED MARKETS WERE UNDER ASSAULT. COMPETITION, ON EQUAL TERMS, WAS BECOMING THE ORDER OF THE DAY FOR LARGE AND SMALL OPERATORS AND COUNTRIES;
  
• AREAS IN WHICH CARICOM COUNTRIES HAD BUILT UP SOME ADVANTAGE - TOURISM, FINANCIAL SERVICES, SHIP REGISTRY, FOR EXAMPLE, WERE BECOMING OF GREAT INTEREST TO OTHERS AND CONSUMERS WERE BECOMING MORE DEMANDING.

THE EXTERNAL DYNAMIC HAS EVOLVED RAPIDLY. IT IS NOW VIRTUALLY DICTATING THE CSME TIMETABLE. JUST TO ILLUSTRATES:

• CARICOM IS INVOLVED IN NEGOTIATING INTO THREE MAJOR TRADE ARRANGEMENTS, NAMELY THE WTO, THE FTAA AND WITH THE EUROPEAN UNION. ALL OF THESE REQUIRE THAT THE COUNTRIES HAVE SOME NEGOTIATING STRENGTH AND COMPANIES SOME MEANINGFUL PRODUCTION BASE. THESE THREE NEGOTIATIONS ARE TO BE COMPLETED BETWEEN 2005 AND 2007;
 
• CARICOM BANANA EXPORTERS HAVE LOST THEIR MARKET IN EUROPE WITH THE IMPLEMENTATION OF THE WTO DECISION; RICE EXPORTERS ARE ON THE VERGE OF LOSING EVEN THE REDUCED MARKET THEY HAD AFTER EUROPE HAD CUT THE TRADE THROUGH THE OCTS WITH THE NEW PROPOSALS FOR THE REFORM OF THE COMMON AGRICULTURAL POLICY (CAP) AND SUGAR EXPORTERS COULD SUFFER SIGNIFICANT INCOME LOSS IF THE AUSTRALIA/BRAZIL/THAILAND CHALLENGE TO THE EU SUGAR REGIME SUCCEEDS;
  
• THE RULES FOR FREE TRADE AREAS AND CUSTOMS UNIONS HAVE BEEN STRENGTHENED AND ENFORCEMENT MORE RIGOROUS. THE SCOPE FOR THE CONTINUED OPERATION OF AN UNCOMMON CET, FOR EXAMPLE, HAS BEEN SIGNIFICANTLY REDUCED;
 
• INTERNATIONAL AGREEMENTS AND CONSUMERS ARE INCREASINGLY REQUIRING COUNTRIES TO HAVE INSTITUTIONS FOR TRADE RELATED MATTERS SUCH AS STANDARDS AND SANITARY AND PHYTOSANITARY MEASURES WHICH INDIVIDUAL SMALL STATES CANNOT AFFORD.
 

THESE EXTERNAL FACTORS REQUIRE - (a) A UNITED FRONT BY THE CARICOM COUNTRIES AND (b) A RATIONALISATION OF THE EXTERNAL DEVELOPMENTS WITH DEVELOPMENTS IN THE INTRA REGIONAL MOVEMENT.

AGAIN THE CSME OFFERS CARICOM COUNTRIES THE BEST OPTION FOR MEETING THESE OBJECTIVES. A UNITED FRONT EXTERNALLY REQUIRES A UNITED FRONT INTERNALLY.

THE CSME IS THEREFORE FUNDAMENTALLY IMPORTANT IN PROVIDING OUR PRODUCERS AND INVESTORS WITH:

(A) A PLATFORM ON WHICH TO INCREASE THE COMPETITIVENESS OF THEIR PRODUCTION;

(B) A MARKET FOR THEIR PRODUCTS AS THEY ARE FORCED OUT OF OTHER MARKETS; AND

(C) A BASE WHERE OUR HIGHLY SKILLED, SPECIALIST PROFESSIONALS CAN FIND VIABILITY AND FULFILMENT.

THE POTENTIAL OF THE CSME

TO UNDERSTAND THE IMPORTANCE AND POTENTIAL OF THE CSME - SINCE IT IS NOT YET IN PLACE WE MIGHT CONSIDER THE FOLLOWING:

• CARICOM ABSORBS ABOUT 20 PERCENT OF ITS TOTAL DOMESTIC EXPORTS. IN 1990 THIS WAS 12 PERCENT. THIS IS THE AVERAGE BUT THE PERCENTAGE IS HIGHER IN SOME SECTORS WITH THE HIGHER EMPLOYMENT CONTENT. FOR EXAMPLE, IN 2000 IT ABSORBED 40 PERCENT OF BEVERAGES AND TOBACCO, 35 PERCENT OF MANUFACTURED GOODS CLASSIFIED BY MATERIALS, 23 PERCENT OF MISCELLANEOUS MANUFACTURES AND 22 PERCENT OF FOOD AND LIVE ANIMALS AND OF 22 PERCENT MINERALS FUELS, LUBRICANTS AND RELATED MATERIALS. WE WOULD NOT MENTION ANIMAL AND VEGETABLE OILS AND FATS WHERE THE REGION ABSORBED 92 PERCENT OF ITS PRODUCTION;
 
• CARICOM IS ONLY SURPASSED BY THE UK AND THE UNITED STATES AS A PROVIDER OF TOURISTS. ONE IN EVERY SIX STAY OVER TOURIST IN ANTIGUA AND BARBUDA AND IN BARBADOS IN 2000 WAS FROM CARICOM. CARICOM TOURISTS TO ANTIGUA AND BARBUDA WERE MORE THAN TOURISTS FROM CANADA AND EUROPE, EXCLUDING THE UK, COMBINED AND SLIGHTLY FEWER FOR BARBADOS. THERE WERE NO PROMOTIONAL EXPENSES AND THEY WERE OFTEN NOT EVEN WELCOMED;
  
• CARICOM IS SECOND ONLY TO EUROPE AS A MARKET FOR OUR BANANAS AND RICE AND THIRD FOR OUR SUGAR. THE PRICE ON THE WORLD MARKET FOR THESE PRODUCTS IN NOW SO LOW THAT, EXCEPT FOR THEIR COMMITMENT UNDER THE TREATY, CARICOM COUNTRIES TO BUY FROM OTHER SOURCES;
• 
  DEVELOPED COUNTRIES ARE ANXIOUS AND WILLING TO ACCEPT, EVEN TO TARGET AND RECRUIT CARICOM SKILLED PERSONS - TECHNOLOGISTS, ENGINEERS, TEACHERS, NURSES TO IDENTIFY A FEW CATEGORIES.

THE STATE OF IMPLEMENTATION OF THE CSME

THE DECISION WAS TAKEN IN 1989 TO CREATE THE CSME BY 1993. THE CREATION OF THE CSME IS A COMPLEX EXERCISE AS THE INTERESTS OF FOURTEEN STATES WITH DIFFERENT ENDOWMENTS AND AT DIFFERENT LEVELS OF DEVELOPMENT HAD TO BE BALANCED; AGREEMENTS NEGOTIATED; LEGISLATION ENACTED OR AMENDED AND CRITICAL INSTITUTIONS CREATED. PRIME MINISTER ARTHUR OF BARBADOS WHO HAS LEAD RESPONSIBILITY FOR THE CSME ARGUES CONSISTENTLY THAT THE 1993 DEADLINE WAS MORE HEROIC THAN PRAGMATIC. IT WAS REALLY A TARGET TO CONVEY URGENCY.

BUT WHERE ARE WE TODAY WITH THE IMPLEMENTATION?

IMPLEMENTATION INVOLVES ACTION IN SEVERAL AREAS AND MIGHT BE MORE CONVENIENTLY ANALYSED IN BROAD AREAS:

1. THE LEGAL AND INSTITUTIONAL BASES FOR THE CSME-

• THERE IS A NEW TREATY, THE REVISED TREATY OF CHAGUARAMAS. IT HAS BEEN SIGNED BY 13 MEMBER STATES. THE BAHAMAS AND MONTSERRAT ARE TO SIGN. IT HAS BE GIVEN PROVISIONAL APPLICATION BY 12 MEMBER STATES; RATIFIED BY FIVE POSSIBLY SIX AND ENACTED INTO DOMESTIC LAW BY 2 MEMBER STATES;
  
• THE CARIBBEAN COURT OF JUSTICE, THE AGREEMENT TO ESTABLISH THE COURT HAS BEEN SIGNED BY 12 MEMBER STATES AND RATIFIED BY 10. ANTIGUA AND BARBUDA HAS RATIFIED THE AGREEMENT FOR THE COURT IN ITS ORIGINAL JURISDICTION AND ST KITTS AND NEVIS IS STILL TO RATIFY THE AGREEMENT. BARBADOS AND SURINAME HAVE ENACTED THE AGREEMENT INTO DOMESTIC LAW. THE JUDICIAL SERVICES COMMISSION HAS BEEN INAUGURATED AND MEMBER STATES CONTRACTED WITH THE CDB TO RAISE THE FUNDS WHICH THEY WILL REPAY AS A LOAN FOR THE OPERATION OF THE COURT;
• 
  THE CARICOM REGIONAL ORGANISATION FOR STANDARDS AND QUALITY (CROSQ). THE AGREEMENT HAS BEEN SIGNED BY 12 OF 13 MEMBERS EXPECTED TO SIGN. MONTSERRAT IS TE OUTSTANDING SIGNATURE. THE AGREEMENT IS BEING PROVISIONALLY APPLIED AND THE ORGANISATION IS OPERATIONAL WITH HEADQUARTERS IN BARBADOS.

2.    THE FREE MOVEMENT OF GOODS.

THIS PROCESS STARTED WITH CARIFTA AND IS VIRTUALLY COMPLETE. A FEW MEMBER STATES ARE GUILTY OF A FEW SPECIFIC VIOLATIONS BUT THERE ARE NO FUNDAMENTAL ISSUES.

A COMMON EXTERNAL TARIFF REGIME HAS BEEN IN PLACE INVOLVING ALL MEMBER STATES SINCE 1992. THERE HAS BEEN AGREEMENT TO A REVISION OF THE CET AND THREE MEMBER STATES, NAMELY, ANTIGUA AND BARBUDA, ST KITTS AND NEVIS AND MONTSERRAT ARE STILL TO COMPLETE THAT PROCESS OF REVISION.

THE BAHAMAS IS NOT A PARTY TO THE MARKET ARRANGEMENTS AND HAITI IS STILL IN THE PROCESS OF ACCESSION TO THE TREATY.

3. THE RIGHT TO MOVE TO PROVIDE SERVICES, TO ESTABLISH BUSINESSES, TO MOVE AND INVEST CAPITAL

THE BIG DIFFERENCE, THE BIG NEW MOVE IN DEEPENING TO THE CSME IS IN THE RIGHT OF CARICOM NATIONALS - INDIVIDUAL PERSONS AND COMPANIES - TO MOVE TO PROVIDE SERVICES, TO ESTABLISH BUSINESSES AND TO INVEST THEIR CAPITAL. THESE RIGHTS HAVE BEEN PROVIDED FOR LEGALLY IN THE REVISED TREATY OF CHAGUARAMAS. WE HAVE JUST OUTLINED WHERE WE ARE IN MAKING THE TREATY LAW IN EACH COUNTRY. THE FACT THAT THE TREATY MIGHT NOT YET BE LAW IN A MEMBER STATE DOES NOT RELIEVE THAT STATE OF ITS OBLIGATION, ITS COMMITMENT TO NATIONALS OF MEMBER STATES. HOWEVER, IN REALITY THERE ARE MANY LAWS AND REGULATIONS WHICH HAVE TO BE CHANGED AND ADMINISTRATIVE PRACTICES WHICH HAVE TO BE TO ADJUSTED. THE TREATY REQUIRED:

• EACH MEMBER STATE TO IDENTIFY ALL MEASURES - LEGISLATIVE OR ADMINISTRATIVE WHICH PRESCRIBES MORE ONEROUS CONDITIONS ON NATIONALS OF OTHER CARICOM STATES THAN ON NATIONALS OF THE PARTICULAR MEMBER STATE.   THIS HAS BEEN DONE.   THE INFORMATION IS ON THE CARICOM SECRETARIAT'S WEBSITE;
  
• NEGOTIATE A PROGRAMME TO REMOVE THE DISCRIMINATION. THIS HAS ALSO BEEN DONE. INFORMATION IS ON CARICOM SECRETARIAT'S WEBSITE SHOWING THE POSITION FOR EACH COUNTRY. THE PROGRAMME WAS APPROVED IN FEBRUARY 2002. THE PROGRAMME AS NEGOTIATED, REQUIRES EACH MEMBER STATE TO ELIMINATE ALL THE EXISTING DISCRIMINATORY MEASURES BY 31 DECEMBER 2005.

EACH MEMBER STATE HAS SPECIFIC, NAMED MEASURES TO ELIMINATE BY 31 DECEMBER 2003, THAT IS IN FOUR MONTHS TIME. 31 DECEMBER 2004 THAT IS, IN ONE YEAR AND 4 MONTHS; AND 31 DECEMBER 2005, THAT IS IN TWO YEARS AND 4 MONTHS TIME. THE GENERAL APPROACH WAS FOR THE MDCS TO REMOVE THE BULK OF THEIR RESTRICTIONS IN THE EARLY YEARS WHILE THE LDCS WOULD REMOVE THE BULK IN THE LATTER YEARS

IN THE CASE OF ANTIGUA AND BARBUDA, FOR EXAMPLE, THERE IS ONE MAJOR UNDERTAKING IN THE PERIOD TO 31 DECEMBER 2003. I UNDERSTAND THAT ACTION IS IN TRAIN TO ENSURE COMPLIANCE.

IN RELATION TO WORK PERMIT RESTRICTIONS, REGARDLESS OF THE APPROVED SCHEDULE FOR THEIR ELIMINATION, MEMBER STATES WERE OBLIGATED TO:

A.    REMOVE THEM FOR FOUR CATEGORIES OF PERSONS BY 31 JULY 2003. THE FOUR CATEGORIES ARE-

• UNIVERSITY GRADUATES, THAT IS, PERSONS HOLDING A DEGREE FROM ANY RECOGNISED UNIVERSITY;
• MEDIA WORKERS;
• ARTISTES AND MUSICIANS; AND
• SPORTS PERSONS

ALL RELEVANT MEMBER STATES HAVE COMPLIED, EXCEPT FOR ST KITTS AND NEVIS. ANTIGUA AND BARBUDA CAME IN, IN GOOD TIME - JANUARY 2002. ANY CARICOM NATIONAL WHO SATISFIES DEFINITION IN ANY OF THE FOUR CATEGORIES IS NOW FREE TO GO INTO 11 MEMBER STATES ON THE PRESENTATION OF A "CERTIFICATE OF SKILLS" ISSUED BY HIS/HER COUNTRY AND TO WORK FOR UP TO SIX MONTHS. AT THE END OF SIX MONTHS AN APPLICATION MUST BE MADE TO THE HOST COUNTRY FOR THE ISSUANCE OF ITS OWN CERTIFICATE WHICH THEN PROVIDES FOR THE STAY TO BE INDEFINITE. THE MEMBER STATES IN WHICH THIS IS NOT NOW POSSIBLE ARE, THE BAHAMAS, HAITI, MONTSERRAT AND ST KITTS AND NEVIS.

B.     FOR SELF EMPLOYED SERVICE PROVIDERS, ENTREPRENEURS, TECHNICAL, MANAGERIAL AND SUPERVISORY STAFF, SPOUSES AND OTHER DEPENDENT FAMILY MEMBERS TO REMOVE THE REQUIREMENT ACCORDING TO SCHEDULE.

4. FACILITATION OF TRAVEL; AND

5. FACILITATORY MEASURES

THESE ARE MEASURES TO ENSURE THAT THE PRIMARY AGREEMENTS/MEASURES REALLY WORK SATISFACTORILY AND THAT NATIONALS CAN BENEFIT.

A.     ESTABLISHMENT OF NATIONAL AND REGIONAL ACCREDITATION BODIES - THE PROCESS IS JUST BEGINNING. WE ARE BEHIND SCHEDULE FOR THE REGIONAL ACCREDITATION BODY. MEMBER STATES EXCEPT JAMAICA, TRINIDAD AND TOBAGO AND ST KITTS AND NEVIS ARE BEHIND IN THE ESTABLISHMENT OF NATIONAL ACCREDITATION BODIES.

B.     A SOCIAL SECURITY AGREEMENT WHICH PROVIDES FOR THE TRANSFERENCE OF BENEFITS HAS BEEN IN OPERATION AMONG 13 MEMBER STATES, INCLUDING THE BAHAMAS, SINCE 1997. SURINAME WHICH DOES NOT HAVE A SOCIAL SECURITY SCHEME AND HAITI ARE THE EXCEPTIONS.

C.     THE INTRA-REGIONAL DOUBLE TAXATION AGREEMENT - THIS HAS BEEN SIGNED AND RATIFIED BY 11 MEMBER STATES AND ENACTED INTO NATIONAL LAW IN 8 MEMBERS. IT IS THUS OPERATIONAL AMONG 8 MEMBER STATES INCLUDING ANTIGUA AND BARBUDA.

D.     CAPITAL MARKET DEVELOPMENT BEGINNING WITH STOCK EXCHANGE. THE THEN THREE EXISTING STOCK EXCHANGES IN BARBADOS, JAMAICA AND TRINIDAD AND TOBAGO WERE BROUGHT INTO A NETWORK IN 1991 IN WHICH SHARES COULD BE CROSS-LISTED AND CROSS-TRADED. SINCE THEN, THE BAHAMAS AND THE EAST CARIBBEAN CURRENCY AREA (ECCA) AND GUYANA HAVE ESTABLISHED EXCHANGES WHILE SURINAME AND HAITI WHICH BECAME MEMBERS HAD NATIONAL EXCHANGES. THESE VARIOUS NATION AND SUB-REGIONAL EXCHANGES HAVE NOT BEEN BROUGHT INTO A SINGLE SYSTEM AS REQUIRED BY THE 1989 HEADS OF GOVERNMENT. THIS IS NOW URGENTLY REQUIRED.

 E.     HARMONISATION OF LAWS.

A SINGLE MARKET AND ECONOMY REQUIRES HARMONISED LAWS IN A VARIETY OF AREAS SUCH AS:

- CUSTOMS LEGISLATION

- COMPANY LAW

- COMPETITION POLICY

- CONSUMER PROTECTION

- BANKING AND SECURITIES

- STANDARDS AND TECHNICAL REGULATIONS

THERE IS NOW AN ACTIVE PROCESS, BEING FACILITATED BY A PROJECT OR REGIONAL DRAFTING FACILITY, TO PRODUCE MODEL LEGISLATION IN A RANGE OF AREAS. THIS IS VERY INTENSE AND TIME CONSUMING. FOR EXAMPLE, THERE ARE 21 MODULES IN THE PROPOSED HARMONISED CUSTOMS LEGISLATION.

MEMBER STATES

THERE ARE SEVERAL THINGS WHICH MUST BE DONE INTERNALLY BY GOVERNMENTS AND STAKEHOLDERS SUCH AS THE PRIVATE SECTOR AND TRADE UNIONS. THESE INCLUDE:

- CREATION OF AWARENESS AND PROVISION OF INFORMATION

- CONSULTATIONS AND WORKSHOP SUCH AS THESE, ARE VITAL. THEY CAN BE ORGANISED BY THE PUBLIC SECTOR OR THE PRIVATE SECTOR OR PREFERABLY COLLABORATIVELY.

THERE IS AN INCREASED EFFORT TO ACT IN THIS AREA.