Good Morning!

I am indeed pleased to be present here once more in Tobago especially so at this celebratory time in our national history and to participate in this interactive session on the CSME. This session today, which is an extension of our national Public Education Programme on the CSME, culminates two (2) days of activities here in Tobago among which a Youth Workshop and the visit of the CSME Caravan to various communities throughout the island were held. These activities are all in keeping with the mandate of our national Public Education Programme to sensitize and educate the population on the importance, opportunities, benefits and challenges of the CSME.

I consider this session today to be of extreme importance as it brings together you the Professional, Technical and Administrative staff of the Tobago House of Assembly. Unlike previous presentations where the focus has been on opportunities that will be available under the CSME, today’s session seeks to provide information that will enable you not just to access individual benefits under this arrangement but also to assist you in adequately fulfilling your duties as  Officers of the Government.

You would appreciate that with the implementation of the CSME throughout all participating Member States, your role and function as Government Officers would now require you to take on board decisions and policies that are consistent with the provisions of the Revised Treaty of Chaguaramas. It is with this in mind as well as to keep you fully apprised of the opportunities, benefits and challenges of the CSME, that today’s presentation is being convened.  It is therefore my intention that today’s presentation will serve the dual purpose of providing you with a basic understanding of the key elements of the CSME and an insight into the state of CSME readiness both nationally and regionally.

Essentially, the CSME comprises two main components - the Single Market and the Single Economy. The Single Market component is set to be fully operational by January 1st 2006 and the Single Economy will be in place by 2008. In the words of the Prime Minister of Barbados, the Rt. Honourable Owen Arthur, “The CSME is unquestionably the most complex, the most ambitious and the most difficult enterprise ever contemplated in our Region.”

What then makes this arrangement the most complex, the most ambitious and the most difficult enterprise ever contemplated in our Region?

A cursory glance into the background of the Trinidad and Tobago/ CARICOM relationship shows for some time now, Trinidad and Tobago has been ready for the creation of a single enlarged economic space. The fact that we have benefited from all attempts to deepen integration, whether it was CARIFTA in 1968 or CARICOM in 1973 or the timely implementation of the fourth phase of the Common External Tariff are all visible indicators of this country’s commitment to regional prosperity.

Further, since the late 1980s, we have come to realize and to accept the structure of the global economy - larger markets, intense competition and the free movement of capital. This realization and acceptance have led us to embrace the fact that the survival of our economy and those of our sister states depend on the creation of a programme that would provide not only a solid platform on which we could increase our competitiveness but also provide an employment base for our highly skilled labour force.

Our decision therefore, in 1989 at Grand Anse in Grenada, to join with other Caribbean Heads of Government, to create a Single Market and Economy is perhaps the most definitive step taken towards deeper integration and is clearly demonstrative of our recognition then and more so now of the need to adjust to the external dynamics of the new world economy. 

As the most complex and most difficult enterprise, the CSME facilitates the pooling of the region’s financial, human and natural resources to build capacity and to respond to globalization and the emergence of mega trading blocs. As the most ambitious, the scope for economic integration as embodied in the CSME is surpassed among other economic blocs only by the provision of the European Union. Further the creation of the Single Market by December 31st 2005 will definitely mean that CARICOM took sixteen (16) years after the commitment at Grand Anse to do what Europe conceived in the Treaty of Rome in 1957 and achieved after 35 years

Ladies and Gentlemen, there have been some concerns expressed with respect to the timelines for the implementation of the CSME. I wish to assure you that the CSME remains the number one priority of the Caribbean Community and if I may quote H.E. Mr. Edwin Carrington, Secretary General of CARICOM at the Workshop in March 2005 for Newspaper Editors on the CSME, it “occupies the pride of place in the CARICOM Secretariat’s work programme for 2005 and 2006.”

On the national front, my Government’s intention towards the implementation of the CSME is indeed clear as at the Fourteenth (14th ) Inter - sessional Meeting of the Conference of the Heads of Government, together with Jamaica and Barbados, we gave an undertaking to be Single Market ready ahead of the 2005 deadline. Today, I am happy to report that Trinidad and Tobago has in place all basic infrastructure in terms of Single Market compliance and based on the results of a recent audit undertaken by a Legal Team from the CARICOM Secretariat, Trinidad and Tobago is on target for the full implementation of the Single Market elements of the CSME ahead of the 2005 deadline.

The Single Market component which is set to be fully implemented by January 1st 2006 will therefore be recognisable by:

i. the existence of five (5) main regimes
ii. a legal framework; and
iii. supporting institutions and arrangements to make the market regimes function.

These five (5) main regimes include the free movement of persons, goods, services, capital and the right of establishment while the legal framework, includes the Revised Treaty of Chaguaramas, several inter-governmental agreements and national implementing laws and regulations. The Institutional framework includes the arrangements for dispute settlement, enforcement and regulation and national and regional administrative systems.

In terms of Treaty Revision, the Revised Treaty of Chaguaramas is the legal framework upon which the CSME is established. All Member States with the exception of Montserrat, which is awaiting entrustments from the United Kingdom of Great Britain and the Bahamas who have opted not to, have signed the Revised Treaty. On the national front, legislation to incorporate the Revised Treaty of Chaguaramas into domestic law has been passed in both Houses of Parliament and proclaimed by the President of the Republic.

With respect to the establishment of National and Regional Administrative Structures, the Ministry responsible for CARICOM Affairs has the mandate for the implementation of the CSME in all Member States. In Trinidad and Tobago this responsibility lies with the Ministry of Foreign Affairs which has established a CSME Unit since January 2004. This Unit, as you know is fully operational and is assisted in its implementation mandate by an Inter-Ministerial Consultative Committee (IMCC) and a Business and Labour Advisory Committee (BLAC).

In the sphere of Enforcement, Regulation and Supporting Institutions, the areas of standards and quality, justice and fair trading are comprehensively outlined. In the area of standards and quality, Trinidad and Tobago already has a National Bureau of Standards and the Bill to enact the Agreement on the CARICOM Regional Organization for Standards and Quality (CROSQ) into domestic law has been passed in both Houses of Parliament and has been proclaimed.

The CCJ for which much concern has been expressed represents two important elements for the Caribbean Community. Under its “original jurisdiction”, the CCJ has exclusive and compulsory jurisdiction in all matters relating to the interpretation and application of the Revised Treaty of Chaguaramas. In its appellate jurisdiction, the CCJ will be the final court of appeal from decisions of national courts, thereby replacing the Privy Council in those Member States for which it is the final court of appeal. Trinidad and Tobago has to date enacted the Agreement establishing the Caribbean Court of Justice (CCJ) into domestic law, giving effect to the original jurisdiction only.  this legislation which will take the form of Fair Trading legislation seeks to promote

The only remaining area is the establishment of a National Competition Authority, the legislation of which is currently before our Parliament. It should be noted thatand maintain effective competition throughout the economy and to ensure that competition is not distorted, restricted or prevented, either by private business conduct or by public policy. This legislation is based on the CARICOM Model Legislation for Competition Policy.

In the case of the five (5) regimes of the Single Market, the free movement of persons is deemed a critical element of the Single Market component of the CSME. The CSME allows for CARICOM Nationals to seek work or engage in gainful employment in all participating Member States as either a wage earner or non-wage earner, without the need to obtain a work permit in the receiving Member State. As a first step towards achieving full free movement of Skills/Labour, the following categories of wage earners are entitled to move and work freely in the Community:

„X University Graduates, Artistes, Musicians, Media Persons, Sports Persons and Managerial, technical and supervisory personnel connected to a company.

Since June 2003, Trinidad and Tobago has been able to implement all the necessary legislative measures and institute the administrative structures for the free movement of University Graduates, Media Persons, Sports Persons, Artistes and Musicians. These persons are able to move freely by virtue of a Skills Certificate issued to them by the relevant authorizing agency in each Member State. In the case of Trinidad and Tobago, the authorizing agency is the Ministry of Foreign Affairs. It should be noted that an important element to the free movement of skills is the appointment of a National and Regional Accreditation Council. At the national level, this Council is expected to establish a quality assurance framework for the Registration and Accreditation of Tertiary Level Institutions. To this end, the Accreditation Council of Trinidad and Tobago was established by the passage of Act No.16 on May 21st, 2004 and assented to and proclaimed by the President on July 9th, 2004.

As a right afforded to such CARICOM Nationals who are wage earners, the Agreement on the Transfer of Social Security Benefits came into effect on April 1st, 1997. This Agreement protects all entitlements to long term benefits by providing for the totalling of all the contributions which were paid to the respective Social Security Organisations in Member States, where a National previously worked. Suriname is the only exception since it does not have a comparable social security system. It should be noted however that a system of transfer is currently being devised to solve this problem.

It should be noted that the Tenth Special Meeting of Heads of Government held in Trinidad and Tobago in 2004 mandated the Prime Minister of Dominica to examine other categories of wage earners, to which this right could be extended. In this regard, discussions are currently underway for the expansion of the categories of skilled persons to those possessing qualifications in the technical and vocational fields as well as those acquiring associate degrees. The ultimate goal of free movement is that by 2008, all CARICOM Nationals would be able to access this right.

The Immigration (Exemption from Work Permit Requirement) Order, 2005 dated April 15th 2005 allows for the free movement of the following categories of non-wage earners

i. persons wishing to establish a business; and
ii. persons wishing to provide a service on a temporary basis in Trinidad and Tobago.

Trinidad and Tobago remains mindful of the fact that the free movement of service providers requires some type of facilitating system that would ensure that bona fide service providers are granted access. As such, at the eighteenth (18th) Meeting of the Council for Trade and Economic Development (COTED), a proposal was put forth by the Trinidad and Tobago delegation for the introduction of a register of service providers. This recommendation was accepted and a detailed proposal has been developed and presented to the CARICOM Working Group on Services Negotiations.

The Intra Regional Double Taxation Agreement which came into force in 1994 protects self employed CARICOM Nationals from paying taxes twice on the same earnings. This Agreement is currently enacted in Antigua and Barbuda, Barbados, Belize, Dominica, Guyana, Jamaica, Saint Lucia, St. Vincent and the Grenadines and Trinidad and Tobago. Suriname and Montserrat have no objection and will do same in the short term.

Supportive to the free movement of persons is the facilitation of intra regional travel through the:

„X Establishment of CARICOM National/Non-CARICOM National Lines at all ports of entry.  As of January 1, 2004 Trinidad and Tobago joined all CARICOM Member States in implementing lines labeled CARICOM Nationals / Non CARICOM Nationals at all ports of entry.
„X Development and Use of a Common E/D Form.  CARICOM Member States have agreed to the use of certain common core data on their E/D Form. At the same time, this agreement allows for variations depending on the needs of individual Member States. The need for a common format/design has been recognized and proposals are being reviewed by Member States.
„X CARICOM Passport: Suriname and St. Vincent and the Grenadines are currently the only two Member States which have issued national passports utilizing the common CARICOM format. Trinidad and Tobago is scheduled to introduce this by the middle of 2006.

The issue of Contingent rights consequent on the free movement of persons is the only area which remains outstanding and for which there needs to be a regional policy. Trinidad and Tobago, through the Ministry of Trade and Industry has however prepared a draft policy paper which when finalized, would be forwarded to the CARICOM Secretariat as an input into the regional policy.

With regard to the right to establish a commercial presence, Article 32 of the Revised Treaty of Chaguaramas grants the Right to persons, companies and other legal entities such as partnerships. As such, an individual wishing to establish a business must be engaged in non-wage earning (self-employed persons) activities of a commercial, industrial, agricultural, professional or artisanal nature; or form or register a company if he/she wishes to engage in any of those types of economic activities. Accordingly, CARICOM Nationals wishing to establish a commercial presence under the CSME are allowed:

- Ease of entry to establish a commercial presence 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.
- Freedom of entry for managerial, supervisory and technical staff and spouses and immediate dependent family members.

With respect to the registration and/or incorporation of companies in all Member States participating in the CSME, a person or company may establish a business presence, having complied with the relevant legal and administrative requirements provided under the laws of that Member State.

The Right of Establishment is currently operational subject to the rules and regulations governing the establishment of businesses in each respective Member State. With the coming on stream of harmonized Companies¡¦ legislation, companies and other business entities, which, once incorporated in one Member State, will be able to easily move to another Member State and establish a business presence, without the need for re-incorporation or registration. 

In relation to the free movement of capital, such transactions are promoted in the CSME. As you are aware, Trinidad and Tobago for some time now has abolished Foreign Exchange Controls and there are no restrictions to Capital Market activity.  Currently Trinidad and Tobago, Barbados and Jamaica comprise the Regional Stock Exchange.

An important development in international trade has been the growth in recent years of trade in services. It is therefore recognized that for an economic space to be achieved, there must be the free movement of services. Under the CSME, all Member States are required to remove restrictive or discriminatory measures in the areas of establishment, services and capital. These restrictive or discriminatory measures have been approved by the Council of Trade and Economic Development (COTED) and itemized for each Member State in a Programme for the Removal of Restrictions. A study by Dr. Noel Watson and Kimberley Erriah identified over 450 legal and administrative restrictions on such activity in place across the region and which need to be removed in order for the participating Member States to be CSME compliant.

For Trinidad and Tobago, a total of twenty-one (21) restrictive or discriminatory measures were identified in Trinidad and Tobago’s Programme for the Removal of Restrictions.  To date, work has been completed in all but three areas

- Taxation of dividends paid out of approved tourism projects
- Taxi Services; and
- Legal services

In the case of the free movement of goods, for some time now, the region has had a fully developed and operating regime in both law and practice. The Free Movement of Goods within the Single Market, like that of the Common Market arrangement requires a set of administrative arrangements, which ensure that:
- goods of Community origin are freely traded without imposition of external tariffs or discriminatory internal charges;
- goods from outside the Single Market are subject to a uniform tax; and
- there is ease of administration in transportation and payments to facilitate trade and regional production.

Trinidad and Tobago , since 1999 has implemented the fourth phase of the Common External Tariff (CET). In the case where Member States have maintained certain non-tariff regulations on intra-regional commerce, the Council for Trade and Economic Development (COTED) has set a schedule for their removal.

You will appreciate that the establishment of these mechanisms ¡V both the institutions and regimes will enable us to not only enjoy the benefits of the CSME but moreover to simplify our approach to negotiation of relevant issues with our sister states and the rest of the world. In addition to these benefits, the impending establishment of common, trade-related institutions and the harmonization of laws and practices will definitely improve our readiness to successfully participate at the:

i. Multilateral level within the framework of the WTO (Doha Agenda negotiations, targeted possible conclusion by 2006);
ii. Hemispheric level, through the Free Trade Area of the Americas (FTAA);
iii. Inter-regional level in devising an Economic Partnership Agreement (EPA) with the European Union; set deadline is January 2008; and
iv. Bi-lateral negotiations between CARICOM and countries or groups of countries in Central/ Latin America, e.g. CARICOM- Costa Rica.

To date, Trinidad and Tobago has all the basic infrastructure in place for Single Market compliance and our position was advanced by the Rt. Honourable Owen Arthur of Barbados, Prime Minister with lead responsibility for the CSME, who reported that four (4) Member States- Belize, Jamaica, Barbados and Trinidad and Tobago are fully on schedule regarding the removal of such restrictions. It should be noted that the remaining nine (9) Members have not indicated their inability to meet the stipulated deadline.

Given the fact that the implementation of the CSME will not be ¡§finished¡¨ or the CSME will not be a finite entity, but would rather evolve, several programmes and projects are contemplated to ensure its continued relevance and effectiveness. Article 239 of the Revised Treaty makes provisions for a ‘Built in Agenda’ to support the elaboration of future Protocols in areas where the region is conducting external negotiations but have no equivalent regional regime. These areas include electronic commerce and government procurement. The ‘Built in Agenda’ also requires that future regional regimes be formulated to deal with the treatment of goods in free zones and similar jurisdictions, the free circulation of goods and rights contingent on the provision of the movement of capital and the establishment of enterprises, to give certainty and completeness to the liberalization process. 

Turning to the other aspect of the CSME - the Single Economy, the Revised Treaty of Chaguaramas envisions this as an arrangement that would further harmonise economic, monetary and fiscal policies and measures across all Member States of the Caribbean Community to underpin the sustainable development of the region. It is therefore expected that this particular aspect would take the form of significant co-ordination of the development of sectoral policies, significant levels of integration of the production and financial sectors of Member States, the convergence of macro-economic policies and the building of a regional capital market. The Tenth Special Meeting of the Heads of Government held in November 2004 in Trinidad and Tobago, agreed to the following programmes for implementation:

- Agreement for the Development of Financial Services
- Framework for the Integration of the Capital Market
- Investment Policy Harmonization (Caribbean Investment Code)
- Framework for the Harmonization of Fiscal Incentives
- Framework for Fiscal Policy Harmonization
- Framework for Monetary Cooperation

A series of brainstorming sessions are currently being held under the chairmanship of Rt. Hon. Owen Arthur and the recommendations are to be incorporated into the overall plan for the implementation of the Single Economy. Active discussions and implementation are expected to commence in 2006 with the creation of the Single Market.

Ladies and Gentlemen, it is acknowledged that the CSME will present certain economic challenges to our Member States, challenges which of course can be overcome through effective public education and the institution of appropriate corrective mechanisms. With respect to Public Education, which is deemed as one of the key elements in the implementation process, this Year - 2005 has been designated the Year of the Single Market and each of the thirteen (13) participating Member States are involved in activities to recognize this. 

Trinidad and Tobago has in this regard adopted an holistic approach and since May 2004, launched an intensive National Public Education Programme. The Programme includes a well-developed advertising campaign using all forms of media and widespread outreach through presentations to all National Associations, Non-Governmental Organizations and members of Civil Society as well as the use of the CSME Mobile Caravan for communities.  The Programme is designed to reach every citizen of our Republic.

In terms of a compensatory and or corrective mechanism, the CSME has made provisions for the establishment of a Development Fund. This Fund is intended to provide relief to Member States, regions or sectors disadvantaged by economic dislocations arising from the CSME. The modalities of this Fund are currently being addressed and recommendations on the way forward have been put forth by a Technical Team established specifically for this purpose. These recommendations are expected to be finalized at the next meeting of the Heads of Government.

It is therefore clear that a Single Market and Economy is of strategic importance to us here in the region. The prospects for increased production and productivity, enhanced levels of international competitiveness, expansion of trade and economic relations with Third Countries, full employment of labour and factors of production; and improved standards of living and work are endless.

As critical participants in and beneficiaries of, you must be appreciative of the fact that your value, role and purpose become all the more important in this arrangement. You must be cognizant that the CSME portends inter alia, a new business and working relationship in the form of new rights of establishment, greater economic mobility and choice, and the exposure to new systems of competition as well as administrative procedures. I call upon you to rise to challenge and be part of this bold initiative.

I thank you, Ladies and Gentlemen.