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CSM Movement Lagging

The CARICOM Single Market (CSM) which went into effect more than a year ago continues to lack dynamism as movement of people remains low while a vast majority of businesses prefer to operate within their national boundaries.

“There is a still lot of work to be done to get individuals to think regional when it comes to operating businesses. From my own regional interaction, I think the regional outlook is not yet ingrained,” said Salas Hamilton, Specialist, Communications, at the Barbados-based CSME Unit, which is under the CARICOM Secretariat.

The CSM, part of the CARICOM Single Market and Economy (CSME) that is operational in 12 member states, is the region’s response to the evolving international environment in areas such as trade liberalisation and globalisation.

Barbados, Belize, Jamaica, Guyana, Suriname and Trinidad and Tobago were the first countries to sign the legal instrument to give effect to the CSM and they were later joined by Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines.

The British Overseas Territory of Montserrat is seeking permission from the United Kingdom to become a part of the single market, while Haiti has not joined the market because of its difficult internal political situation, and the Bahamas because of local opposition to a provision that allows skilled workers to move more easily among nations.

The CSM essentially creates a single contiguous market for the Caribbean Community (CARICOM) and provides for the free movement of goods, services, capital, persons and the right of establishment.
Steven MacAndrew, Specialist on Free Movement of Skills/Labour at the CSME Unit, said CARICOM nationals are still not exercising this right in any large quantity.

“Since the first country started with free movement of skills in 1997, up to this date approximately 3,700 Skills Certificates have been issued. A significant portion concerns persons who were already working in member states under the work permit regime, so
actual movement has been very low,” said MacAndrew.

The approved regime is in place in most member states, although Trinidad and Tobago and Antigua and Barbuda must still fully implement the approved regime. Trinidad and Tobago must still implement the July 2005 decision of the Conference of Heads of Government that CARICOM nationals entering with a Skills Certificate issued by another member state should be allowed to work immediately.

MacAndrew saidnon-compliancehas proven to be a major hindrance, as several CARICOM nationals find themselves disadvantaged for several weeks and even months, since in most cases they are moving to pick up jobs and experience loss of income and depletion of funds.

He said there are a number of reasons why CARICOM nationals are not moving into other member countries. For instance, studies have shown that the massive outwards brain-drain to countries such as the UK, US and Canada continues; the decision to migrate is never easy, neither is the process; bad experiences in the past in the region and the initial, eligible categories were too limited.

Under the current arrangements for labour mobility, specified categories of wage earners and self-employed persons can access free movement. Specified categories of wage earners are university graduates, sports persons, media persons, artistes, musicians, nurses and teachers, while the self-employed persons include service providers and persons establishing businesses.

Given the labour shortage that some countries, particularly Trinidad and Tobago, are experiencing, Caribbean leaders at their 18th
Intersessional Conference in February 2007 approved proposals for streamlining arrangements that will facilitate the free movement of artisans in the regional labour market. The system approved by the Heads will allow for artisans to obtain credentials through the award of the Caribbean Vocational Qualifications (CVQ) based on occupational standards set by the industry. It is expected that the CVQ will be in place by July 2007.

The Conference also agreed that the free movement of domestics and hospitality workers can be facilitated in a similar manner to the free movement of artisans and shall be considered after the CVQ model is launched.

On April 1, 2007 the CARICOM Agreement on Social Security, which is a supportive measure for the Free Movement of Skills, entered its tenth year of coming into effect. The agreement caters for the totalisation of contributions paid to social security/national insurance organisations in various member states in order to determine long-term benefits. Furthermore, all CARICOM nationals are eligible for benefits under the agreement, even persons who did not move under the Free Movement of Skills.

With the exception of Suriname, the agreement is in place in all member states participating in the CSME. The Bahamas and Montserrat have also fully implemented the agreement.

Concerning the provision relating to the rights of establishment, which is expected to contribute significantly to both job creation opportunities and labour mobility, Leela Ramoutar Narinesingh, Specialist, Private Sector Facilitation at the CSME Unit, said there have been no studies to date on the Private Sector’s use of the Single Market. “However it appears that businesses that export have seized the many opportunities presented by the single market. Regretfully, there appears to be indifference by some businesses that operate only in national markets,” she said.

CARICOM nationals wishing to establish a commercial presence under the CSME are allowed ease of entry to and indefinite stay to do so; ease of administration for the registering and/or incorporation of companies; access to capital in the receiving member state; access to land, buildings and other property for purposes directly related to the establishment of a business; and freedom of entry for managerial, supervisory and technical staff and spouses and immediate dependent family members.

As regards implementation of the Single Economy, it is expected that the policy framework will be completed by 2008.

Work is actively being undertaken in two main areas identified in the Revised Treaty of Chaguaramas. The first is with the creation of a Macro-economic Policy framework involving work on monetary policy coordination, financial policy harmonisation, capital market integration, investment and incentives policy harmonisation. The second includes the coordination of sectoral policies, including agriculture, fisheries, sustainable development, environment and more recently energy.

Since the vast majority of CARICOM Member States is small and extremely vulnerable and need assistance at the country and sector levels in implementing the requirements of the Revised Treaty, it is expected that the adjustment process will be cushioned by the creation of the CARICOM Development Fund (CDF) and the Regional Development Agency (RDA).

The Caribbean is also seeking continued support of the United Nations and the region’s other development partners as it moves towards a fully opened single economic space.

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