As Doha flounders, CARICOM Countries get second wind

Despite reported “modest” achievements attained during the Sixth World Trade Organization (WTO) Ministerial Conference held in Hong Kong, a number of important issues were left unresolved. With regard to agricultural negotiations, Ministers had agreed in Hong Kong to establish trade liberalizing formulae or modalities and tackle such issues as state trading, food aid and export competition, no later than April 30, 2006 as well as to submit comprehensive draft schedules based on these modalities no later than July 31, 2006. As it turns out, the United States and the European Union failed to reach agreement on agricultural subsidies by said deadline thereby preventing negotiations from proceeding on to new global trade rules, according to a timeline set out for 2006.

Nevertheless US officials feel a more important date than the missed April 30 deadline is the end of 2006. They maintain that negotiators could agree on the 'modalities' at some point in the summer without derailing the overall talks. However, if a Doha Round agreement is not concluded by the end of 2006, there will likely not be enough time for the U.S. Congress to consider the document before President Bush’s trade promotion authority expires in mid-2007. The real critical date for getting a new trade reform agreement, according to US officials will most likely be December 2006.

In the meantime, a group of nine Caribbean Community (CARICOM) countries have taken advantage of the impasse to petition the WTO to extend their export subsidy programs to the year 2018, on the basis that they are of great importance to their economic and financial needs. The WTO Committee reportedly decided that the request for an extension will be given consideration in October this year.

CARICOM Single Market Ceremony Held in Jamaica

CARICOM member states Barbados, Belize, Guyana, Jamaica, Suriname and Trinidad & Tobago formally signed the document for implementation of the CARICOM Single Market (CSM) on Monday January 30, in a move towards greater regional unity. Although the CSM formally began on January 1 with the six member countries, it is expected to become the CARICOM Single Market and Economy (CSME) by 2008. The ceremony, which was held at the Mona campus of the University of the West Indies, did not see the ratification of CSM by the seven-member sub-group, the Organization of Eastern Caribbean States (OECS).

While the OECS had originally planned to enter the single market by March 31, it was announced that they would now sign on by the end of June. Prime Minister of St. Vincent and the Grenadines and current Chair of the OECS, Ralph Gonsalves, said: "The OECS has taken the principled position that, while we are fully committed to the process of regional integration, and intend to be fully participants in the CSME, we must ensure that the provisions of the Revised Treaty of Chaguaramas which speaks to our own special needs are in effect."

The region is expected to finalize the single market and economy (CSME) by the year 2008. To this effect Prime Minister of Trinidad and Tobago and current CARICOM Chair, Patrick Manning explained: "It is absolutely necessary to co-ordinate and harmonize, inter alia, our economic policies, interest rates, laws and tax regimes in order to create more even development across member states; enter more effectively and smoothly into trading arrangements and economic links with other countries and regional groupings; and ensure that our region improves its attractiveness for the increased inflows of new capital for the development of all our nations."

According to CARICOM data for most of the decade of the nineties, CARICOM intra-regional imports as a percentage of the region's total imports accounted only for between 8 and 10 per cent, while intra-regional exports accounted for between 12 and 23 per cent of the region's total exports.

CARICOM launches Single Market

The Caribbean Community (CARICOM) launched the the Single Market component of its Single Market and Economy (CSME) on January 1, 2006. Under CSM, the member states of Barbados, Belize, Guyana, Jamaica, Suriname and Trinidad and Tobago agreed to remove tariffs among participant states. All citizens of CARICOM will reportedly be able to operate businesses, offer services and circulate capital throughout the single market area unrestricted. Plans are also in the works for a regional passport to replace national travel documents in 2007.

An official ceremony for the CSM is scheduled to take place in Jamaica on January 23. Not included in the agreement, however, were Haiti and the Bahamas. Haiti was suspended from CARICOM deliberations following the removal of Jean-Bertrand Aristide from power during a rebellion in February, 2004. Interim Haitian Prime Minister Gérard Latortue has expressed regret at CARICOM's decision to exclude Haiti but expressed confidence that his country will eventually resume active membership within the regional organization. Montserrat, a British dependency, is expected to join CSME by the end of the first quarter of 2006.