The greater Caribbean – A natural space for integration
Thursday February 23 2006
On 30 Jan., six Caribbean countries launched a free trade area to bring to fruition the Caribbean Single Market and Economy (CSME), an integration project, which seeks to incorporate the remaining Caricom countries by 2008.
This Free Trade Zone endeavours to promote the exchange of services, goods and qualified personnel among those territories, which in turn strengthens common economic growth. The establishment of this CSME is an historic event that will lead to an improved standard of living and sustainable economic development within the region.
The implementation of this sub-regional integration initiative among the islands of the English-speaking Caribbean is consistent with the trend in other sub-regions in the greater Caribbean; that’s how the Central American integration process has advanced successfully, to the extent that it is the sub-regional group with the most trade directed toward the countries involved in its integration scheme.
According to the most recent study conducted by ECLAC, 28 per cent of all Central American exports are destined for member countries, while Caricom records 17 per cent.
The greater Caribbean has witnessed a positive change in its trade scenario – recent statistics show an increase in intra-regional trade indicators, however, they continue to be much lower than those in other regions like Asia and Europe, where such indicators exceed 50 per cent of the total trade.
Greater dynamism in trade at the intra-regional level undeniably brings about an increased tendency to export goods with added value and/or manufactured goods; it offers the possibility of expanding markets and building leadership in neighbouring markets and it in turn becomes a learning base to gain experience in trade and serve as a conduit for conquering more sophisticated and demanding markets in terms of quality.
Understanding the greater Caribbean as the area that encompasses all the countries that make up the Association of Caribbean States (ACS), with the common link being their natural border with the Caribbean Sea, having a population in excess of 230 million inhabitants whose annual imports average 242 billion dollars, with a per capita purchasing potential of US$945, the region becomes the best scenario for conducting business and for boosting this natural space for integration.
Although integration in the greater Caribbean must be based on the deepening of trade, it must also involve a governmental interest in fortifying trade ties beyond sub-regions, in addition to a strengthening of institutions, macroeconomic coordination and improved infrastructure.
Some countries in the region have played a rather active role in this regional market expansion process. Such is the case of Trinidad & Tobago, where the government has shown its firm commitment to building that process, not only supporting the sub-regional initiatives – Caricom – but it has continued to simultaneously negotiate bilateral free trade agreements, reinforcing its trade ties with Central America and Cuba.
Even though we have made significant progress in the field of trade, that trend is not enough to consolidate intra-regional trade as the driving force behind growth and development.
The greater Caribbean still has the opportunity to enhance its economic growth using as a channel, a trade integration process throughout the entire Caribbean Sea.
Manuel Madriz, trade director at the Secretariat of the Association of Caribbean States. The opinions expressed are not necessarily the official views of the ACS. Comments can be sent to: mail@acs-aec.org.
Thursday February 23 2006
On 30 Jan., six Caribbean countries launched a free trade area to bring to fruition the Caribbean Single Market and Economy (CSME), an integration project, which seeks to incorporate the remaining Caricom countries by 2008.
This Free Trade Zone endeavours to promote the exchange of services, goods and qualified personnel among those territories, which in turn strengthens common economic growth. The establishment of this CSME is an historic event that will lead to an improved standard of living and sustainable economic development within the region.
The implementation of this sub-regional integration initiative among the islands of the English-speaking Caribbean is consistent with the trend in other sub-regions in the greater Caribbean; that’s how the Central American integration process has advanced successfully, to the extent that it is the sub-regional group with the most trade directed toward the countries involved in its integration scheme.
According to the most recent study conducted by ECLAC, 28 per cent of all Central American exports are destined for member countries, while Caricom records 17 per cent.
The greater Caribbean has witnessed a positive change in its trade scenario – recent statistics show an increase in intra-regional trade indicators, however, they continue to be much lower than those in other regions like Asia and Europe, where such indicators exceed 50 per cent of the total trade.
Greater dynamism in trade at the intra-regional level undeniably brings about an increased tendency to export goods with added value and/or manufactured goods; it offers the possibility of expanding markets and building leadership in neighbouring markets and it in turn becomes a learning base to gain experience in trade and serve as a conduit for conquering more sophisticated and demanding markets in terms of quality.
Understanding the greater Caribbean as the area that encompasses all the countries that make up the Association of Caribbean States (ACS), with the common link being their natural border with the Caribbean Sea, having a population in excess of 230 million inhabitants whose annual imports average 242 billion dollars, with a per capita purchasing potential of US$945, the region becomes the best scenario for conducting business and for boosting this natural space for integration.
Although integration in the greater Caribbean must be based on the deepening of trade, it must also involve a governmental interest in fortifying trade ties beyond sub-regions, in addition to a strengthening of institutions, macroeconomic coordination and improved infrastructure.
Some countries in the region have played a rather active role in this regional market expansion process. Such is the case of Trinidad & Tobago, where the government has shown its firm commitment to building that process, not only supporting the sub-regional initiatives – Caricom – but it has continued to simultaneously negotiate bilateral free trade agreements, reinforcing its trade ties with Central America and Cuba.
Even though we have made significant progress in the field of trade, that trend is not enough to consolidate intra-regional trade as the driving force behind growth and development.
The greater Caribbean still has the opportunity to enhance its economic growth using as a channel, a trade integration process throughout the entire Caribbean Sea.
Manuel Madriz, trade director at the Secretariat of the Association of Caribbean States. The opinions expressed are not necessarily the official views of the ACS. Comments can be sent to: mail@acs-aec.org.
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