Kick CARICOM to the kerb (Part 2)

Jamaica is half the market of CARICOM, without Haiti

By Ronald Mason, Jamaica Gleaner Contributor


It would be foolhardy at the commencement of any trial for attorneys to believe they will be persuasive with only an opening statement.  I dare not believe that, and as such I welcome the dialogue triggered by the response to my column on May 5.

I do not fear globalisation because this country can rival others on the world stage in the areas of our competitive advantage.  Think coffee, bauxite, ginger, cocoa, tourism, music, aggregate, track and field, and the history of sugar.  However, let me advance the argument for our withdrawal from CARICOM on the cold, hard realities.

FACT 1: There is a geographic, cultural, interpersonal relationship among people in the Eastern Caribbean.  The distance between Antigua & Barbuda in the north and Trinidad & Tobago in the south is 445 miles.

The distance between Jamaica and Trinidad is 1,151 miles.  The constant flow of commerce and people in the Eastern Caribbean is undisputed.

Farmers in Dominica help to feed Antigua.  Trinidad and Barbados have disputes born out of territorial proximity.  The Leeward and Windward Islands each present teams in Caribbean cricket.

The population in each member state of CARICOM, not counting Jamaica and Haiti, ranges from 6,000 in Montserrat to 1.34 million in Trinidad.

There is a forum of seven member states and two associated states with a total population of 636,000 persons.  Schooners and ferries bridge the islands in the east.  They have a basis for this creature called CARICOM.

FACT 2: In recognition of how much the states in the Eastern Caribbean are interdependent, they created, from as far as back as 1981, the Organisation of Eastern Caribbean States.  It is an intergovernmental organisation dedicated to economic harmonisation and integration, and protection of human and legal rights.  They are all virtually contiguous in their boundaries.

On August 13, 2008, the leaders of Trinidad & Tobago, Grenada, St Lucia, and St Vincent & the Grenadines announced their intention to pursue a subregional 'political union'.  A 2013 target date was set for full political union for these countries. (CANA, October 24, 2008) Notice, they did not invite Jamaica.  Note also that on June 21, 2010, they signed the treaty that established their countries as a single economic and financial space.

The promise of "joint action" and "joint policies" within areas such as the judiciary and administration of justice, external relations, including overseas representation, international trade agreements, education, telecommunications, intellectual property rights, external transportation, and connections and public administrations and management.

This is a single space without common external boundaries.  A country in every respect.  No Jamaica.

If it looks like a duck, waddles like a duck, quacks like duck, it is a duck.  They only associate with Jamaica because we represent the easier trade destination that satisfies their economies of scale.  Jamaica is half the market of CARICOM, without Haiti.

A decline in trade deficit

FACT 3: Jamaica has had, for years, a large trade deficit with CARICOM, not factoring Haiti, and a trade surplus with Haiti.

Jamaica's trade deficit with CARICOM for January-November 2012 (latest figures available) is US$743.5m, a decline of US$157m recorded the previous year, largely caused by reduced spending on fuel.

Jamaica, for the same period, exported US$76.8m.  Most of the inbound trade is with Trinidad and Tobago.  The peanuts, biscuits, candy, etc.

FACT 4: Chapter 5, Part 3 of the Revised Treaty of Chaguaramas addresses the issue of subsidies by one member of CARICOM to the detriment of the other.  Trinidad owns Caribbean Airlines.  Ask Grenada's prime minister why he recently had to comment on the impact Trinidad's full subsidy is having on LIAT, part owned by Grenada.

Remember when we were dumb enough to believe that integration included Jamaica and proposed an aluminium smelter with its demand for lots of aluminium ingots to be located in Trinidad and Tobago using Jamaican bauxite to improve value added for aluminium?  Never materialised.

FACT 5: Remember how the Dominican Republic accessed CARIFORUM for the European Union Economic Partnership Agreement?  There is your blueprint, as the Dominican Republic is not a member of CARICOM.

FACT 6: The language of Article 45 of the Revised Treaty of Chaguaramas references the movement of nationals across the region.  Here is the direct quote: "Member states commit themselves to the GOAL [emphasis mine] of free movement of their nationals within the Community."  A goal, that's all.

Yet Jamaica allows Eastern Caribbean people to come here without reservation, while reciprocity, at the same rate and without discriminatory barbs, is often denied Jamaicans.

Last week, there was news of the dispute between Trinidad & Tobago and Jamaica regarding lube oil.  This arose between private interests in Jamaica and entities that are publicly owned by T&T.

Yes, governments do not trade, but they are players in field of international commerce.  This action, by design or neglect, results in a breach of trade protocols.

Some members of the Jamaican business community have long complained about the lax CARICOM conditionalities.  I provided an airing of the oft-whispered sentiments.

I never suggested that Jamaica should go it alone.  We have multiple trade agreements, and currently Costa Rica is under consideration.  The United States is our largest trading partner.  O for the distinction and awareness of reading and comprehension!

That we should deal with the world as it is and forge our way therein as best we can has been misinterpreted as supportive of Jamaica's isolation.  Far from being isolationist, we should forge links with the larger markets of Haiti, Cuba, Dominican Republic, North America and Latin America where the business community of traders can enjoy economies of scale.

GraceKennedy and other Jamaican corporate entities are making their entry into Ghana.  They can continue to set up entities and trade with whomever, and they should.  But do not presume it can only be done by integration, commercial or political.

Ronald Mason is an immigration attorney/mediator. Email feedback to columns@gleanerjm.com and nationsagenda@gmail.com.

May 19, 2013

Kick CARICOM to the kerb (Part 1)

Jamaica Gleaner

The CARICOM Single Market and Economy (CSME) is A Work In Progress

CSME "A Work In Progress" 

By Candia Dames

candiadames@hotmail.com

Nassau, The Bahamas

6th June 2005

There are a number of elements of the CARICOM Single Market and Economy that have yet to be worked out, but the Caribbean Community hopes that The Bahamas will come onboard and sign the Revised Treaty of Chaguaramas before the end of the year, according to CARICOM Secretary General Edwin Carrington.

While on the Love 97 programme, "Jones and Company", on Sunday, Mr. Carrington was unable to provide specifics on certain aspects of CSME, noting that the details are something that the heads of CARICOM will have to come up with.

"The CSME at the moment is a work in progress and the CARICOM countries that are involved are constructing this arrangement," he said.

Mr. Carrington indicated that there is still a whole lot to be worked out as it relates to the single economy.

"If you look at the treaty, you would see that the single economy has hardly been sketched out in the treaty document," he said.

"It has set out broad guidelines as to what would be involved in the single economy.  Essentially, the single economy is a process to move the economies of the region to certain common approaches in a number of areas that will enhance their competitiveness so that their productive capacity would be such that they can compete better in the international marketplace.

"That's the broad objective.  How you do that, what are the steps that you have to take, these are matters we are working on."

Another aspect of the CSME that has not yet been clearly worked out is the regional development fund which will be established to cushion the economic fallout that may result from the formation of the CSME, Mr. Carrington indicated.

He could not say specifically what contribution The Bahamas would have to make to the development fund.

Asked what this country's future with CARICOM would be if it does not sign the revised treaty, Mr. Carrington said it was a "political question".

"I'll tell you why," he said.  "The legal advice which we have is that this instrument, the revised treaty, including the single market and economy, does not provide as the previous instrument [did] for you to join the community and not the common market.  It is one integral product and joining it commits you to the entire product subject to, of course, reservations.

"So, if The Bahamas signs on, let's say, without reservations then it is committed fully to that.  If it wants not to participate in certain aspects of it then it would have to put forward reservations and get those accepted."

Mr. Carrington was also asked whether other CARICOM states could later challenge the reservations The Bahamas intends to secure.  He stressed that CARICOM is not a "fly by night" organization and if the sovereign states have signed certain reservations with The Bahamas, they stand and "no one can challenge them."

The Bahamas government has said that it wants to sign the revised treaty, but only if it is able to secure certain reservations against the free movement of people, the monetary union, the Caribbean Court of Justice at the appellate level, and the common external tariff.

"Let us assume that they have agreed to those reservations," Mr. Carrington said.  "That's it.  If you did not get the agreement that you wish, then I presume you would sit down and determine [whether you should] go in nevertheless or [whether you should] on the basis of not receiving these reservations not go in."

He again indicated that The Bahamas would be able to keep its reservations for as long as it sees fit.

"I'm not a head of government, but I would find it difficult to believe that [the heads] would not give them sympathetic consideration...They would not be changed without The Bahamas' agreement."

Echoing a familiar sentiment in the CSME debate, The show's co-host, Godfrey Eneas, asked the CARICOM Secretary General why The Bahamas with a per capita income of between $15,000 and $17,000 should be "saddled" with other countries with low per capita incomes.

But Mr. Carrington took issue with the use of the word saddled, saying it was unfortunate that Mr. Eneas would choose that word "because no one is saddled with any country."

"If I follow your argument, [The Bahamas] is seeking to enter the Free Trade Area of the Americas.  Then why should the rich U.S. saddle itself with a poor [Bahamas] in relative terms?  It seems to me first of all, the notion of saddling is wrong because you seem to suggest that you have to carry those countries.  That is not the case."

The show's host, Wendall Jones, then asked, "How do you answer the complaint of the criticism that the CSME is premature given the divergence of the states of the Caribbean, economically and socially.

Mr. Carrington responded, "To say that it's premature seems to suggest that there is some better time to come when you can do these things."

During the show, Mr. Jones also indicated that there are many Bahamians who have concerns about the right of establishment provision of the treaty.

Mr. Carrington explained that, "First of all, the principle of a right of establishment is that a national of a CARICOM member state has the right to establish a business in another member state in the community in the context of single market and be treated as a national of that particular country.

"My understanding is that a number of countries have identified areas in which they cannot accept [this].  I believe every country has certain exceptions.  I don't know that the exceptions that you are talking about would be acceptable or otherwise.  It's an area I hope that discussions would take place."

Mr. Jones asked, "Can you say if there is anything in the revised treaty that states that the right of establishment will not apply to the retail and wholesale sectors?"

The secretary general said, "No. I don't think that there is anything in the treaty which is that specific...Let me just remind you [that] The Bahamas would be seeking in my view a political situation.

"It may well be that in putting that in a document to the heads they may say, "Sorry, we can't accept that one.  In other words, I'm saying don't limit yourself to what the treaty says because we are talking about a political arrangement which The Bahamas government would seek with a view to implementing the treaty."

Mr. Carrington was also asked why he thinks the CSME is so unpopular in The Bahamas.

"I can see no rational reason for the widespread unpopularity as you've said," he answered.