NOTES FOR THE HON. PRIME MINISTER'S SPEECH
TO STUDENTS IN MEXICO
CARICOM -Twenty years and beyond
CARICOM - [a definition]
CARICOM stands for the Caribbean Community and common Market.
The common Market is not only about trade but about the coordinated
economic development.
Background
Efforts of forming a community began in the 1950s, Federation
did not work but there was still a need for integration. Ten
Caribbean countries formed the British West Indies Federation in
1958, in there first attempt at integration this came to an end in
1962. The end of Federation marked the beginning of more serious
efforts to integrate the Caribbean countries, this time with more
emphasis on securing economic linkages.
CARICOM emerged in an environment in which it was believed
that 3rd world countries should band together in regional groupings
to allow for economic development and security. The formation of
CARIFTA in 1965, which later developed into CARICOM, through the
- Treaty of Chaguaramas in 1973, was based on a philosophy which saw
economic and functional cooperation between newly independent small
states as the most viable path to industrialization.
The overriding concern with the limitations of small size, in
addition to the attempts at industrialization, mainly through
substitution, therefore underpinned the policies which promote
regional integration in CARICOM.
Objectives
CARI COM was created with the objectives of fostering and
improving trade relations, coordinating foreign policies and
providing for functional cooperation (e.g. in health, education,
women and development, disaster preparedness) between thirteen
countries which now make up the English speaking Caribbean.
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Membership
The members of the CARICOM are: Antigua and Barbuda, The
Bahamas ( of the community only), Barbados, Belize, Dominica,
Grenada, Guyana, Jamaica, Montserratt, St. Christopher (St. Kitts)
and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and
Tobago. All of the states are independent except Montserratt.
Twelve countries (Anguilla, Aruba, Bermuda, The cayman Islands,
Colombia, the Dominican Republic, Haiti, Mexico, the Netherlands
Antilles, Puerto Rico, Suriname and Venezuela) enjoy Observer
status in the institutions of the Community. The British Virgin
Islands and Turks and Caicos are Associate Members which are
observers to the Conference of Heads of Government and are members
of all the Standing Committees except the standing committee of
Ministers Responsible for Foreign Affairs (SCMFA).
Structures (Discussions for restructuring are underway)
The Conference of the Heads of Government is the supreme
decision making body in the community. The Conference meets every
six months. There are the common Market Council and various
Standing Committees responsible for areas such as labour,
tourism, finance, agriculture, information etc. There are
Associate Institutions e.g. The University of the West Indies (UWI)
and University of Guyana (UG), Caribbean Development Bank (CBD),
Caribbean Examination council (CXC), as well as regional
1nsti tut ions 1 ike Caribbean Disaster Emergency Response Agency
(CDERA), Caribbean Environment Health Institute (CEHI) and
Caribbean Agricultural Research and Development Institute (CARDI).
The CARICOM Secretariat is the administrative arm which is headed
by a secretary General - Mr. Edwin Carrington, a national of
Trinidad and Tobago.
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Achievements
As CARICOM completes the second decade of its existence, it is
with pride that we look at our achievements over the years.
Significant gains have been made which have resulted in a greater
determination on the part of Caribbean Governments and people to
strive for regional unity as means of pursuing a path towards
sustainable development. In the area of economic integration we
seek to liberalize trade and provide a common protective policy by
introducing the Common External Tariff {CET). We are still in the
process of implementing the tariff. Trade negotiations have been
successful along with the Harmonization of Fiscal Incentives.
Within the framework of the institutional structures ( the
various committees etc.) CARICOM countries have embarked on a
number of bilateral, regional and international cooperation
programmes. In the area of functional cooperation, one important
example in cooperation is education, our regional universities (UWI
and UG) still stand as major achievements as does the establishment
of the regional school leavers examination CXC. Training
initiatives aimed at promotion of human resource development in the
region in various forms of specialized training including public
sector management is a major achievement.
There is excellent cooperation in health and we are proud of
our Caribbean Health Environment Institute (which coordinates
development of arrangements for the protection of the environment)
and Caribbean Drug Testing Laboratory which is located in Jamaica.
our cultural exchange -CARIFESTA was held in Trinidad and Tobago
last year. As the Caribbean is prone to disasters it was
imperative to create an enhanced capacity in the region for
disaster preparedness and response. The two year old CDERA is an
organisation of which we are proud. This Agency will not
substitute for external emergency support but will be a vehicle for
streamlining the organisation and delivery of intra-CARICOM
emergency relief.
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Despite our problems, we remain committed to the CARI COM
movement because we are convinced that the future of the region
will be determined by the success of our efforts at cooperation.
Another of our successes can be seen in the joint management of
external relations and cooperation in external trade and economic
relations - CBI, CARIBCAN, CARICOM/USA Framework. Views are often
coordinated on international issues of interest to the region (eg.
Haiti and Cuba) and also our position on candidatures to
international institutions eg. UNESCO, OAS, FAO.
The CARICOM Single Market and Economy
The timetable for establishing a Single Market Economy by 1995
includes as one of its main elements, the establishment of a common
External Tariff (CET). The tariff will bring about the
standardization and unification of fiscal incentives with the
result that all trade licensing import quotas and duties will be
abandoned or reduced. Instead of national protectionism,
production by individual Member States will be exposed to wider
competition which in itself will encourage greater efficiency and
the improvement of product quality.
In keeping with the thrust towards a global economy, the need
for Caribbean States to safeguard sensitive production in the
region, particularly in the agricultural sector is heightened.
Hence, the implementation of the CET will be carefully phased in,
taking into consideration the special circumstances of the
differing sizes and levels of development of individual states. In
light of the results of the Uruguay Round of GATT, the rate
assigned to agriculture will be reviewed and action taken regarding
subsidies and other governmental supports. It is expected that the
CET will strategically enhance the overall competitiveness of the
region in the global market place.
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west Indian Commission
You are aware of the changes taking place on the international
scene, such as the historic changes in the former soviet Union, the
formation of the Single European Market which came into ef feet
January 1993 and the proposed North America Free Trade Agreement -
in recognition of these changes, CARICOM decided to re-access its
structures in order to prepare for the future.
The increasing competitiveness and globalization of markets
made it especially important for Caribbean countries to devise an
approach for survival and development. Therefore, in 1989, the
CARICOM Heads of Government mandated the establishment of a West
Indian Commission to examine the existing structures, policies and
programmes of CARICOM and subsequently to make recommendations for
more functional integration with effective implementation
structures.
Following an indepth examination of CARICOM, as well as a
series of public consultations with CARICOM nationals, the
Commission published several papers and presented its final report
"Time for Action" containing more than two hundred (200)
recommendations to the Heads of Government at the Special
Conference held in Trinidad and Tobago in October 1992.
The Report examines regional and international developments
since the establishment of CARICOM in 1973 and identifies the
options that need to be pursued in order to advance the interests
of Caribbean people in the years ahead. one fundamental
recommendation is the need to develop structures of unity to
facilitate the implementation of decisions within CARICOM.
some of the recommendations which have been accepted by the
CARICOM Heads of Government include a Charter of Civil Society,
which sets out fundamental principles to govern the relationship
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between Government and people and also to provide for such
democratic elements as freedom of press, fundamental principles of
human rights and other measures aimed at the protection of
individuals and the promotion of their welfare. The introduction
of the Assembly of Caribbean community Parliamentarians will
encourage discussion among parliamentarians in the region. A
Caribbean community council is to be formed and will be the new
centre of Community policy and direction. The Bureau of Heads of
Government has worked well for the past year. The Treaty will have
to be revised in order to accommodate these changes as we move
towards the 21st century.
The reaction of the region to the changing circumstances needs
to be bold and unambiguous. Indeed, we have seen the beginnings of
a shift in the general development policies of the region. The
drive to increase exports has emerged as the predominant
development policy of the region relegating import substitution to
a secondary role. This emergent development paradigm has
manifested itself in two main ways:
there has been a shift from the inward looking isolationism to
one of active participation in the global economy;
there is a renewed interest in regionalism, not just within
CARICOM but between CARICOM and the wider Latin American
region. Here it must be emphasized that regionalism within
the present context does not imply the establishment of
impenetrable trading blocs and the revival of the
protectionist tendencies of the past. Rather it must be seen
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as a way of making progress
sphere and then seeking to
negotiations.
Association of Caribbean states
in a more 1 imi ted geographic
widen this by multilateral
It is within this context that CARICOM leaders have committed
themselves to the establishment of an Association of Caribbean
States directed at advancing both economic integration and
functional cooperation with the countries of the Caribbean Basin
and Latin American countries.
The current hemispheric mission is to maximize the geographic
and gee-economic benefits of the region through closer
collaboration. Thus preparing the way for more equal relations
with our more economically powerful neighbours - the United States
and Canada.
CARICOM. Wider Caribbean and Beyond
One of the profound messages drummed out in the popular music
of my University era was "we are all in this together" and that
observation is still valid today.
Not only because Mexico is one of the countries of this
hemisphere at the centre of the regionalization process but because
you as future leaders will be taking up the baton, guaranteeing the
continuity and consolidation of integration of Caribbean and Latin
America States.
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Regional integration is no longer a vision, an ideal, but a
reality, a necessary achievement which will guarantee the Latin
America and Caribbean region and will prevail throughout the next
century.
The process of regional integration is putting down solid
roots as is highlighted in:
►
►
Mexico/Jamaica/CARICOM relations;
Latin American/CARICOM/Central American relations
underscored in, for example, the Rio Group; Group of
Three etc;
► Various agreements in word and action that cohesion in
voice and policy will be the determining factor in the
future strength of the region, in areas such as:
a) economic, social and political negotiations for the
positive exploitation of our common and divergent
resources;
b) for ongoing consultations to develop common
strategies to meet the new international economic
policies and mechanisms defined for their
implementation;
c) cultural, trade and technical agreements in order
to formalize the processus of regional cooperation.
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CARICOM/Cuba Relations
CARICOM is firmly of the view that the time is right for Cuba
to be reintegrated into the politic al and economic life of the
Caribbean.
The recently concluded Heads of Government meeting agreed to
proceed with the establishment of the CARICOM-Cuba Joint
commission. CARICOM Foreign Ministers have urged that the
geopolitical reality of Cuba, a Caribbean country, be recognized.
CARICOM has noted the value of pursuing cooperation with Cuba in
fields such as trade, tourism and science and technology in which
the region as a whole has a vital interest. There has always been
the hope for the earliest possible return of Cuba to the
hemispheric system of political and economic relations in keeping
with the ideals, principles and purposes of the Charter of the OAS.
CARICOM has always assured Cuba bilaterally and multilaterally
of its open door for dialogue and active participation in
the community while respecting the principles of non-intervention
in the internal affairs of sovereign states. CARI COM supported
Cuba's bid for membership in the Caribbean Tourism Organisation
(CTO) and agreed to establish a CARICOM-CUBA Joint Commission, as
a means of advancing the cooperation process between both sides.
Cuba attends various meetings and seminars organized by
CARICOM and has applied for Observer Status to CARICOM.
Cuba has stated its willingness to expand and strengthen the
cooperation links with CARICOM. The recent initiative towards the
establishment of an Association of Caribbean States (ACS) has
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sparked a great deal of interest within Cuba. In anticipation of
this, Cuba has been expanding its activities in such areas as
diplomatic relations and tourism.
Recent initiatives by Cuba to reduce its political and
economic isolation within the Caribbean have received positive
responses from many countries. The reintegration of Cuba into the
mainstream of Caribbean life will undoubtedly enhance the movement
towards sustainable regional cooperation and development. In this
regard, several Caribbean leaders have expressed support for the
lifting of the us trade embargo against Cuba. The removal of the
embargo would prove catalytic in the process of political and
economic reform within Cuba. Moreover, a number of Latin American
countries have joined the Caribbean in calling for the
reinstatement of Cuba into the OAS (Cuba was suspended in 1962).
CARICOM/Haiti Relations
Jamaica, along with other CARICOM countries, has been working
with the OAS and more recently the United Nations towards the
reinstatement of President Aristide and constitutional rule in
Haiti. CARICOM welcomes the Governors Island Agreement (July 3,
1991) and New York Pact (July 17, 1993) and hopes for a peaceful
transition from military to civilian rule by October 30, 1993. To
this end, CARICOM urges increased dialogue between the political
and economic factions in and outside of Haiti.
CARICOM continues to support the UN brokered agreement, and
will utilize the relevant fora to express commitment to the current
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. '
efforts and mobilize the support of their citizens as well as the
wider international community. CARICOM is prepared to extend long
term technical and economic assistance to Haiti once the democratic
process is in place.
CARICOM/Mexico Relations
Since the late 1960s Mexico has displayed an active interest
in the CARI COM Region. owing to its geographic and strategic
importance, bilateral exchanges and political dialogue have been
strengthened, over the years, between Mexico and the Caribbean.
An Agreement establishing the CARICOM community - Mexico Joint
Commission was signed in 1974. The Joint Commission has identified
initiatives that are to be pursued in order to provide financial
and technical support required to promote cooperation between
Mexico and CARICOM.
Mexico, as a member of the Caribbean Development Bank since
May 7, 1982, has participated actively within the institutional
framework of the Bank and has contributed substantially to its
Special Development Fund. consultations were conducted in 1990
between the Government of Mexico, the CARICOM secretariat, the
University of the West Indies (UWI) and the Caribbean Development
Bank (CDB) regarding the development of new initiatives for the use
of certain Mexican resources held within the Bank. These
consultations led to the drawing up of two technical cooperation
agreements for the use of these funds, one between Mexico and UWI
and the second between Mexico and CARICOM.
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..
An Agreement on Trade and Technical Cooperation was signed
between Mexico and CARICOM in July 1990 during the visit of
President Salinas to Jamaica. Presently, both CARICOM and the
Mexican parties are looking at the possibility of Mexican private
investors visiting the areas to examine investment opportunities.
To date, Mexico along with Venezuela, are the only Latin
American countries with which CARICOM has concluded formal
agreements. However, negotiations have recently commenced with
colombia for the conclusion of an Agreement on Economic, Trade and
Technical Cooperation.
Mexico's sponsorship of a preferential trading regime in
favour of Central America, in the context of that sub-region's
interest in establishing closer economic and trading links with
CARICOM, together with Mexico's participation in the Group of Three
and its proposed involvement in the Facto Andino which, like the
Group of Three, has recently expressed a desire for closer economic
and trading relationships with CARI COM, create a scenario for
closer economic cooperation among the majority of continental,
circum-caribbean, Latin American States on the one hand and CARICOM
on the other.
CARICOM/Central America Relations
It is worthy to note the regional endorsement of the projected
establishment of a Caribbean/Latin American Centre at the
university of the West Indies targeting mainly the future builders
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and guardians of the hemisphere to find that common language,
policy and movement.
CARICOM and Central America are also establishing ties
consolidating another bridge which will widen the opportunities
throughout the region and also tighten the network being created
between the three sub-regions of the hemisphere.
CARICOM and Central America are focussing on exploiting their
areas of strength (trade negotiations, voting strength. technical
assistance, tourism and cultural exchange) and on smoothing out any
possible areas of conflict. This was underlined at the recently
held CARICOM/Central American Conference in Kingston, Jamaica.
CARICOM/Central America and the Rio Group
We the leaders of Mexico and Jamaica and of the other
countries of Latin America, Central American Isthmus and CARICOM
are determined not only to conserve your heritage but to also
invest for its enhancement and growth. As can be seen for example,
in the progression of the consolidation of the RIO GROUP. You may
recall from your Political Science studies that it evolved from the
CONT ADORA and SUPPORT Group for peace in Central America; its
original members, so called the Group of Eight, were Mexico,
Argentina, Brazil, Colombia, Panama, Peru, Uruguay and Venezuela.
Today on the initiative of Mexico and Honduras, the central
American Isthmus and CARICOM are members of the Rio Group and its
mission has extended to include economic lobbying vis-a-vis great
power industrialized states (USA/European community/Japan).
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,,
CARIBCAN/CBI/EAI/NAFTA (Implications for CARICOM)
This leads us to the issue of issues which I am sure your
visionary minds have been following over the past year or two is
the projected North America Free Trade Agreement, the NAFTA,
economically uniting Canada, Mexico and the united States. The
region welcomes this initiative moreso with Mexico once gain in a -e pivotal position.
As you are aware legislation is underway to provide certain
protection to the Caribbean Basin countries granting them a certain
NAFTA parity.
As your President has declared this can only be a win-win
situation, expanding opportunities and contributions to the
developments and cohesion of Western Hemisphere. sacrifices will
have to be made quality and quantity output increased. However,
the sub-regions have the resources and will to successfully grasp
these new occasions.
Community Strategy for International Economic
and Trade Negotiations
The Region is faced with the option of either being suitably
responsive to the present changing world environment or
marginalisation. There is a tendency towards global trade
liberalisation, regionalisation of the global economy and an
extremely high degree of uncertainty and volatility in
international trade and financial markets. It is against this
background that CARICOM is forced to develop a Strategy for
International Economic and Trade Negotiations. Already we have
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. .
begun to take steps in the direction of improving our internal
economic environment and enhancing our competitiveness.
Recent decisions to review the structure and level of the
common External Tariff as well as other trade related regimes have
led to a significant movement towards a more liberalised regime.
Decisions have also been made to review the existing investment
4t' regime with a view to creating a more attractive investment climate
as well as to place greater attention on macro-economic management.
The international system has welcomed these policies as steps in
the right direction al though questions are still being raised
regarding the slow pace at which the region is falling in line.
currently, CARICOM countries' economic relations - trade,
investment, loans and tourism - are concentrated on North America
and Europe. This is now being expanded to include the following
areas:
► North America, (now the NAFTA partners of Canada, Mexico
and the United States)
► Europe,
► central America.
► south America, and
► The Pacific Rim countries.
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..
•
Conclusion
CARICOM celebrated its twentieth anniversary in July, this
year, during the 14th Heads of Government Conference which was held
in Nassau, The Bahamas. This was marked by a series of events
involving the youth of the region. Different events will continue
during the year to mark this milestone in our regional integration
process.
we are looking at the structures of the Organization and
trying to reassess them in order to meet the challenges and
opportunities which lie ahead. some of the recommendations of the
West Indian Commission have already been accepted by the Heads of
Government and are on the way to implementation. I am confident
that as these are put in place, we will move forward better
prepared to meet the challenges of the 21st Century.
Caribbean and Americas Department
August 26, 1993
Speh: NOTEMEX.DM
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