Understanding the Challenges of Implementing the CARICOM CSME: A Critical Analysis

The Revised Treaty of Chaguaramas contemplated a CARICOM Single Market & Economy (CSME) that would facilitate the movement of goods, labour and capital among member states in the Caribbean Community (CARICOM) that are signatories to the CSME.

Business Basics, in one of its articles last year, queried “whither the CSME” due to the slow pace of implementation of the requirements to operationalise the single market and economy. Fifty years after the integration project was conceptualised, Caribbean people have yet to benefit from the idea of regional integration. Many point to the European Union, Canada and even the United States of America as successful integration projects and wonder what the impediments to this are for the region. Whither the United States of the Caribbean?

Given this implementation paralysis as opined by the West Indian Commission (1992), the government’s recent extension of the skilled workers who could travel within the region, by three categories, seemed a drop in the proverbial bucket. The passage of this legislation in the House of Assembly just days before the CARICOM Heads of Government meeting in Guyana may serve as a good lunchtime topic for discussion among leaders but does not go far enough to fast-track what should be a vibrant single market and economy by 2024.

It was envisioned that the CSME would be implemented in two phases. Phase 1 was scheduled between 2008 and 2009, focusing on the development vision, social welfare coordination, and the establishment of regional development funds and stock exchanges. Phase 2 was scheduled for 2010-2015, aimed at harmonising taxation systems, incentives, and financial environments, implementing common policies in agriculture, energy-related industries, transport, small and medium enterprises, sustainable tourism, and establishing a CARICOM Monetary Union. However, many elements have not been fully implemented to date. In May 2014, CARICOM issued a Strategic Plan for the Community, 2015-2019 focusing on CSME as a priority for sustained economic development and enhanced trade and economic relations.

In 2024, we still appear to be plodding along with no clear achievable timelines for full integration. Recently, CARICOM Secretary General Dr Carla Barnett highlighted the challenges associated with the free movement of people under the CSME. The initiative, which allowed for the free movement of goods, skills, labour, and services, was expected to be fully implemented by 2008. However, Barnett noted that the current arrangements do not grant the authority to work, but rather allow for holiday and family visits. She emphasised that the regulated movement is not necessarily efficient and that there is a need for infrastructural improvements in each member state.

Article 45 of the Revised Treaty declares that member states commit themselves to the goal of free movement of their nationals within the community.

The following categories of wage earners are entitled to move and work freely in the Community:

Graduates of all recognised universities in the world Artistes Musicians Sportspersons Media Persons Nurses Teachers Artisans with a Caribbean Vocational Qualification Holders of associate degrees or comparable qualification Household Domestic Agricultural Worker

The recent passage of the Caribbean Community (Movement of Skilled Nationals) Act, Cap. 186A in the Barbados Parliament made provision for agricultural and domestic workers and private security officers.

With the implementation progress of the Treaty of Chaguaramas, one of the main issues recently discussed by government representatives is the lack of harmonisation of entry and exit procedures across the region.

While progress has been made to harmonise security and entry procedures, full harmonisation has not been achieved. Government officials overwhelmingly reported concerns about the differing levels of implementation within CARICOM particularly in entry procedures and issuing of Skills Certificates.

Some member states have not completed full legislative compliance for all approved categories of nationals, and the lack of harmonisation has a direct impact on how CARICOM nationals can move. There is the issue of consistent entry and exit documentation to facilitate data collection and information sharing about who is moving in the region. The development of Embarkation/Disembarkation Forms is a step made to standardise migration data collection. However, while there has been substantial progress, implementation remains uneven.

Another area germane to the success of the free movement of people is the issue of contingent rights. The Revised Treaty bestows several rights to CARICOM nationals, including the right of establishment, the right to provide services, the free movement of capital and skilled Community nationals to seek employment in other CSME participating member states. Despite these primary rights being granted, further contingent rights were required to guarantee that these nationals could freely enjoy them without any frustration.

There are examples of CARICOM nationals working in other territories who were unable to access social services, their spouses were unable to legally seek employment, and their children were unable to access primary education. These barriers frustrate the exercise of the rights conferred in the Revised Treaty.

One significant benefit of the CSME espoused by Caribbean leaders is the benefit to small businesses and the opportunity to trade.

Statistical inference based on available data, such as indicators of economic performance, unemployment rates and remittances, can be used to better understand this issue.

The data would suggest some key assumptions of the impact of free movement on economies: impact remains small compared to other migratory movements; intraregional movements remain low compared to extra-regional movements; and main FDI flows come from countries outside the region.

The vision, therefore, of the integration project is not being realised. The Heads of Government of an earlier era bequeathed this idea to our current leaders who, the evidence would suggest, are not being faithful to the cause.

The Small Business Association of Barbados (www.sba.bb) is the non-profit representative body for micro, small and medium enterprises (MSMEs).