Caribbean Community (Caricom) Essay ⋆ Business Essay Examples ⋆ EssayEmpire

The Caribbean Community, or Caricom, is a customs union comprised of 15 Caribbean countries. The member states of Caricom are Antigua, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Lucia, St. Kitts, St. Vincent, Suriname, and Trinidad and Tobago. Caricom was established under the Treaty of Chaguramas in 1973 and provides for free trade in goods between member countries and a common external tariff against nonmember countries.

Caricom had its genesis in the failed British West Indies Federation that was established in the late 1950s and represented the first real attempt at Caribbean economic integration. The federation collapsed in 1962, but talks between political leaders in the region on the need to forge closer ties continued at a series of Heads of Government Conferences beginning in July 1963. In December 1965 the Fishermen in Haiti, where two-thirds of the population work in agriculture and 80 percent live beneath the poverty line. The country is one of the 15 members of the Caribbean Community working toward greater economic integration in the region.

Agreement at Dickenson Bay, Antigua, was executed giving rise to the Caribbean Free Trade Association (CARIFTA). CARIFTA was designed to promote the balanced development of the region by promoting free trade and fair competition. CARIFTA, however, did not function as expected and was replaced by Caricom in 1973.

The Treaty of Chaguramas that established the Caribbean Community and the Caribbean Common Market sets out the following objectives for the Community: (1) the economic integration of the member states by the establishment of a common market regime—referred to as the Common Market, this regime was designed to strengthen trade and economic relations between members, ensure the equitable distribution of the benefits of increased economic activity, and promote economic independence for member countries; (2) the coordination of the foreign policies of member states; and (3) functional cooperation between people of member states, including greater understanding in the cultural, technological, and social spheres. It should be noted that under the Treaty of Chaguramas the Caribbean Community and the Common Market are distinct legal entities. This institutional arrangement allowed countries to be members of the Community but not the Common Market.

Article 10 of the treaty provides for the establishment of a number of institutions to achieve the objectives set out above. These institutions include (1) the Conference of Ministers responsible for Health; (2) the Standing Committee of Ministers responsible for Education; (3) the Standing Committee of Ministers responsible for Labour; (4) the Standing Committee of Ministers responsible for Foreign Affairs; (5) the Standing Committee of Ministers responsible for Finance; and (6) the Standing Committee of Ministers responsible for Agriculture.

Each member state represented in an institution is entitled to one vote. Recommendations are made by a two-thirds majority that includes at least two of the more developed countries in the region. Recommendations are not, however, binding on member states. Under the terms of the treaty the administrative affairs of the Community are conducted by the Community Secretariat. The Secretariat is based in Georgetown, Guyana, and its duties include facilitating meetings of the Community and its institutions, initiating studies that relate to economic and functional cooperation issues, and undertaking follow-up actions based on decisions taken at meetings.

As noted, the Community and the Common Market are distinct legal entities. In terms of the Common Market, the Common Market Council is the decision-making organ and is comprised of one government minister from each member state. The administrative functions of the Common Market are undertaken by the Community Secretariat.

Under the provisions establishing the Common Market, member states are prohibited, with certain exclusions, from applying import duties on any product of Common Market origin. The agreement also prohibits member states from applying duties or charges on any product exported from their jurisdiction to a member country. Further, under the agreement quantitative restrictions cannot be imposed on any product of Common Market origin.

It should be noted, however, that the agreement does not prohibit a member country from taking appropriate action to address dumping and subsidized imports. A member state of the Common Market is allowed to impose temporary import restrictions on products coming in from other member states if its domestic industry or sector is in difficulty; i.e., is faced with a significant decrease in internal demand. Such restrictions cannot, in general, be imposed for more than 18 months.

Between 1993 and 2000 an intergovernmental task force was mandated to amend the Treaty of Chaguramas with a view to transforming the Common Market and creating the Caricom Single Market and Economy (CSME).

Bibliography:

Caricom Secretariat, Treaty Establishing the Caribbean Community (July 4, 1973);
Caricom Secretariat, www.caricom.org (cited March 2009).

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