CARICOM Single Market and Economy - Single Market and Economy

Single Market and Economy

The CSME will be implemented through a number of phases, first being the CARICOM Single Market (CSM). The CSM was initially implemented on January 1, 2006 with the signing of the document for its implementation by six original member states. As of July 3, 2006, it now has 12 members. Although the Caribbean Single Market and Economy (CSME) has been established, it is only expected to be fully implemented in 2008. This will be achieved with the harmonization of economic policy, and possibly a single currency.

At the eighteenth Inter-Sessional CARICOM Heads of Government Conference in St. Vincent and the Grenadines from 12–14 February 2007, it was agreed that while the framework for the Single Economy would be on target for 2008, the recommendations of a report on the CSME for the phased implementation of the Single Economy would be accepted. The Single Economy is now expected to be implemented in two phases.

Phase 1 is to take place between 2008 and 2009 with the consolidation of the Single Market and the initiation of the Single Economy. Its main elements would include:

• The outline of the Development Vision and the Regional Development Strategy
• The extension of categories of free movement of labour and the streamlining of existing procedures, including contingent rights
• Full implementation of free movement of service providers, with streamlined procedures
• Implementation of Legal status (i.e. legal entrenchment) for the CARICOM Charter for Civil Society
• Establishment and commencement of operations of the Regional Development Fund
• Approval of the CARICOM Investment Regime and CARICOM Financial Services Agreement, to come into effect by January 1, 2009
• Establishment of the Regional Stock Exchange
• Implementation of the provisions the Rose Hall Declaration on Governance and Mature Regionalism, including:
  • The automatic application of decisions of the Conference of Heads of Government at the national level in certain defined areas.
  • The creation of a CARICOM Commission with Executive Authority in the implementation of decisions in certain defined areas.
  • The automatic generation of resources to fund regional institutions.
  • The strengthening of the role of the Assembly of Caribbean Community Parliamentarians.
• Further technical work, in collaboration with stakeholders, on regional policy frameworks for energy, agriculture, sustainable tourism, agro-tourism, transport, new export services and small and medium enterprises.

During Phase 1 it is also expected that by January 1, 2009, there would be:

• Negotiation and political approval of the Protocol on Enhanced Monetary Cooperation
• Agreement among Central Banks on common CARICOM currency numeraire
• Detailed technical work on the harmonisation of taxation regimes and fiscal incentives (to commence on January 1, 2009).

Phase 2 is to take place between 2010 and 2015 and consists of the consolidation and completion of the Single Economy. It is expected that decisions taken during Phase 1 would be implemented within this time period, although the details will depend on the technical work, consultations and decisions that would have been taken. Phase 2 will include:

• Harmonisation of taxation systems, incentives and the financial and regulatory environment
• Implementation of common policies in agriculture, energy-related industries, transport, small and medium enterprises, sustainable tourism and agro-tourism
• Implementation of the Regional Competition Policy and Regional Intellectual Property Regime
• Harmonisation of fiscal and monetary policies
• Implementation of a CARICOM Monetary Union.