CARICOM Single Market and Economy (CSME)

Against the background of a rapidly changing global economy characterized by globalization, the CARICOM Heads of Government, at their meeting in Grenada in 1989, agreed that the establishment of a CARICOM Single Market and Economy (CSME) was the only viable option for small economies.  The motivating factor was the perceived need to deepen the integration process and strengthen the Caribbean Community in all of its dimensions to respond to the challenges and opportunities presented by changes in the global economy.  Chief among these, were the increasing liberalisation of trade and other economic activities, the rising phenomena of globalisation, and the emergence and expansion of regional economic blocs.  The Treaty of Chaguaramas (1973) was amended to create the CSME.  The 1973 Treaty was amended by the incorporations of nine separate agreements called “Protocols”.  In July 2001, these Protocols were incorporated into the Revised Treaty of Chaguaramas, establishing CARICOM and the CSME.

The ceremonial inauguration of the CARICOM Single Market held at the University of the West Indies (Mona) Visitor's Lodge was held on the 31st January 2006. Only six Caribbean Heads of Government - Barbados, Belize, Guyana, Jamaica, Suriname and Trinidad and Tobago, took the historic step of formally signing the document for implementation of the CARICOM Single Market (CSM), a move towards greater regional unity.  The other six Member States, Antigua and Barbuda, Dominica, Grenada, Saint Lucia, Saint Kitts and Nevis, and Saint Vincent and the Grenadines, have committed to implement the CSM by June 2006.

The creation of the CSME is regarded as a giant step taken in the creation of a trading bloc by the CARICOM Member States.  This move not only consolidates the market for goods produced in the region, but also defines our trade relations with the rest of the world. 

Through the Regional Negotiating Machinery and under the direction of the Prime Ministerial Sub-Committee, CARICOM has been coordinating its participation in the negotiations for the Free Trade Area of the Americas (FTAA) the World Trade Organization (WTO) and Cotonou, the new trading arrangements with the European Union.

Jamaica and The CSME

• By 31st December 2008, when the CARICOM Single Market and Economy (CSME) is fully implemented, there will be no need for CARICOM nationals to have permits or skills certificates to work in members states, as by then, every category of the workforce would be eligible to move freely.
• Currently, artists and musicians, sportspersons, media workers, managerial, supervisory and technical staff, the self employed and university graduates can move freely without work permits. Others, who do not fall in those categories, such as plumbers, carpenters and so on, however, have to acquire work permits.
• Jamaica has completed work in some14 key areas to ensure single market compliance.
• For the country to become single market ready, Jamaica passed the Foreign Nationals and Commonwealth Citizens (amendment) Act, which removed the work permit requirement for Commonwealth nationals and the Caribbean Court of Justice (Original Jurisdiction) Act, in 2005,”.
• Jamaica has signed off on the agreements establishing the CARICOM Regional Organisation for Standards and Quality (CROSQ); Transference of Social Security Benefits; and Intra-Regional Double Taxation, which states that CARICOM nationals working in host countries will only, pay taxes once on their income.
• Other CSM compliance achieved by Jamaica include: the removal of legal and administrative restrictions regarding the Right of Establishment for business, the provision of services and the movement of capital; and hassle-free intra-regional travel, of which one component is the designation of separate lines for CARICOM nationals and non-nationals at the individual country ports of entry.
• Jamaica has recently re-designed its immigration card to “capture core data agreed on at the regional level.”
• Included in the CSM compliance regime is the presence of a national accreditation body, a competition body and an intellectual property body – all of which already exist in Jamaica.
• It is important to note, that while Jamaica has reached compliance on some 14 key areas, this does not reflect the actual number of ensuing legislation, which is so far set at 371.