Addresses issues relating to foreign policy cooperation and the functional aspects of the Community

/in /by

CHAP 12 – POLITICAL REALITIES OF THE CARIBBEAN

 

  1. BRIEF POLITICAL OVERVIEW

 

  1. Pre World War II
  2. Political climate dominated by white colonial European upper class

 

  1. “Brown” mixed-race middle class had little power but still more than the black majority lower classes

 

  1. Post World War II

                                               

  1. Changes in political climate due to

 

  1. Returning soldiers (exposed to the political systems of Europe) (1950s)

 

  1. Union activists and nationalists (1950-1960s)

 

  1. “Socially conscious” intellectuals and professionals (1960s-1970s)

 

  1. U.S. policies in the Caribbean and Central America

 

  1. Based mainly on national security and defense (due to Cold War, anti-communism)

 

  1. Dictators in the region were supported by the U.S. as long as they denounce socialism and communism

 

  1. U.S. intervenes when it detects a socialist threat or instability in the region (Grenada, Haiti, Panama)

 

  1. Increase in regional resistance/challenge to U.S. in the 1970s especially by Cuba, Jamaica,

 

  1. Influence of the Caribbean on global politics has declined due to increase in power of global organizations such as the WTO, NAFTA, and EU.

 

Omit “Caribbean post-colonial regimes…” p. 448 to the top of p. 470.  These sections provide a good historical perspective of several countries which is nice to know but I won’t focus on them.

 

  1. REGIONAL INTEGRATION IN THE CARIBBEAN

 

NOTE: Instead of the sections covered on pages 471-474 of the text, please refer to the notes below and the excerpts at the end of the notes for additional details regarding the organizations discussed below.

 

Continued

 

  1. REGIONAL INTEGRATION IN THE CARIBBEAN (Continued)

Governments in the Caribbean sought to become integrated to increase global economic and political influence.

 

  1. WEST INDIES FEDERATION (1958-1962)

                

  1. History

 

  1. Established by the British Caribbean Federation Act of 1956

 

  1. Became operational in 1958

 

  1. Formed as a federation to increase political unity among its members (i.e. it was to become the “federal government” of its member countries)

 

  1. Included 10 British colonies.

 

  1. Major Objectives and Intentions

 

  1. Empower the Federation to impose federal taxes

 

  1. Central planning for regional development

 

  1. Establish a regional customs union.

 

  1. Accomplishments

                                   

  1. Established a federal civil service

 

  1. Established the West Indies Shipping Service (for inter-island shipping/transport)

 

  1. Expanded the University College of the West Indies (now known as University of the West Indies) to Trinidad and Tobago, in addition to Jamaica.

 

  1. Acquired the British Overseas Airways Corp (BOAC) and renamed it British West Indies Airways (BWIA)

 

  1. Collapse of the Federation – Collapsed in 1962 due to

 

  1. Faulty administrative structure imposed by the British

 

  1. Disagreement among members over taxation and central planning

 

  1. Reluctance of individual governments to surrender to a federal government

 

  1. Location of the Federal capital (Trinidad and Tobago)
  2. CARIBBEAN FREE TRADE ASSOCIATION (CARIFTA)

                                               

  1. History

 

  1. Established as a free trade area in 1965 by the Dickenson Bay Agreement

 

  1. Included 12 independent countries of the Caribbean

 

  • Original members: Antigua and Barbuda (one country), Barbados, Guyana, and Trinidad and Tobago (one country)

 

  • Eight other countries joined between 1968 and 1971

 

  1. Objectives and Intentions

 

  1. Increase trade among member countries
  2. Diversify types of goods traded among members
  3. Removing tariffs and quotas
  4. Establishing trade rules to ensure fair competition among members

 

  1. Replaced in 1973 by The Caribbean Community and the Caribbean Common Market

 

III.      CARIBBEAN COMMUNITY and COMMON MARKET (CARICOM)

 

  1. INCLUDES
  • Caribbean Community
  • Caribbean Common Market
  • CARICOM Single Market and Economy
  • Caribbean Court of Justice

 

  1. CARIBBEAN COMMUNITY

 

  1. History

 

  • Established by the Treaty of Chaguaramas in 1973

 

  • Addresses issues relating to foreign policy cooperation and the functional aspects of the Community

 

  1. Objectives and intentions for member states

 

  • To improve standards of living and working conditions
  • To accelerate and coordinate economic development
  • Expansion of trade with non-members
  • Enhance international competitiveness
  • Coordinate foreign policy
  1. CARIBBEAN COMMON MARKET                              
  1. A subset of the Caribbean Community but is a separate legal entity 
  1. Established by the Common Market Annex
  2. Addresses economic issues of the Caribbean Community, e.g. trade agreements with non-members.
  3. Its separate legal status enables countries to join the Caribbean Community without being a member of the Caribbean Common Market (e.g. The Bahamas
  1. CARICOM SINGLE MARKET AND ECONOMY (CSME)
  1. Established by the Grand Anse Declaration (1989) through the Revised Treaty of Chaguaramas
  2. Overall objective of CSME
  • To establish a single market among member states
  • To develop CARICOM even furthe
  1. Special Provisions of CSM
  • Free movement of labor, goods, services and capital
  • The right for any CARICOM member to establish a business in any other member state and be treated as a national of that state.
  • Hassle-free travel – any CARICOM national can travel to any other member state without being impeded (e.g. no visas needed)
  • Issuance of a CARICOM passport – a national passport allowing easier travel for citizens of membe
  • Harmonizing laws (g. protection of intellectual property rights, establishing businesses)
  • Coordinating macro-economic policies (e.g. taxation, exchange rates, foreign investment policies)
  1. CARIBBEAN COURT OF JUSTICE (CCJ)
  1. Established by the Agreement Establishing the Caribbean Court of Justice (2001)
  1. CARIBBEAN COURT OF JUSTICE (Continued)
  1. A regional court of original jurisdiction and an appellate court (i.e. set up to hear original cases and also to function as an appeals court)
  2. The decisions of the CCJ are to be enforced by member countries as they would the decisions of their own superior courts

CHAPTER 12 APPENDIX – EXCERPTS (primary source: www.CARICOM.ORG)

 THE WEST INDIES FEDERATION

Established in 1958, the West Indies Federation comprised the ten territories of: Antigua and Barbuda, Barbados, Dominica, Grenada, Jamaica, Montserrat, the then St Kitts-Nevis-Anguilla, Saint Lucia, St Vincent and Trinidad and Tobago. The Federation was established by the British Caribbean Federation Act of 1956 with the aim of establishing a political union among its members.

During its brief existence (1958-62), a number of fundamental issues were debated with a view to strengthening the Federation. Among these were direct taxation by the Federal Government, Central planning for development, Establishment of a Regional Customs Union and Reform of the Federal Constitution. The issue of direct taxation was particularly controversial. The Federation was not permitted to levy (impose) income tax for at least the first five years of its life. Added to this, were the greatly differing positions among the Territories with respect to how other federal taxes should be levied.

In addition, the Federation began quickly to seek to establish federal institutions and supporting structures. It created a federal civil service; established the West Indies Shipping Service (in 1962) to operate two multipurpose ships – the Federal Maple and the Federal Palm – donated to it by the Government of Canada. It had embarked also on negotiations to acquire the subsidiary

of the British Overseas Airways Corporation (BOAC), namely British West Indies Airways (BWIA).

Cooperation in tertiary education was consolidated and expanded during this period. The then University College of the West Indies (UCWI), which was established in 1948 with one campus at Mona, Jamaica, opened its second campus at St Augustine, Trinidad and Tobago, in 1960.

The Federation however faced several problems. These included: the governance and administrative structures imposed by the British; disagreements among the territories over policies, particularly with respect to taxation and central planning; an unwillingness on the part of most Territorial Governments to give up power to the Federal Government; and the location of the Federal Capital.

The decisive development, which led to the demise of the Federation was the withdrawal of Jamaica – the largest member – after conducting a national referendum in 1961 on its continued participation in the arrangement. The results of the referendum showed majority support in favour of withdrawing from the Federation. This was to lead to a movement within Jamaica for national independence from Britain. It also led to the now famous statement of Dr Eric Williams,

 THE WEST INDIES FEDERATION (Continued)

the then Premier of Trinidad and Tobago that, one from ten leaves nought, referring to the withdrawal of Jamaica and signifying and justifying his decision to withdraw Trinidad and Tobago from the Federal arrangement a short while later.

The Federation collapsed in January 1962.

 THE CARIBBEAN FREE TRADE ASSOCIATION (CARIFTA)

 The Caribbean Free Trade Association (CARIFTA) was founded by Antigua and Barbuda, Barbados, Guyana, and Trinidad and Tobago on 15 December 1965, with the signing of the Dickenson Bay Agreement (the Agreement establishing the Caribbean Free Trade Association). They were joined on 1 July, 1968 by Dominica, Grenada, St Kitts-Nevis-Anguilla, Saint Lucia and St Vincent and the Grenadines; and on 1 August, 1968 by Montserrat and Jamaica. In 1971 Belize (then British Honduras) joined the Association.

These Caribbean countries had recently become independent, and CARIFTA was intended to unite their economies and to give them a joint presence on the international scene.

Specifically, CARIFTA was intended to encourage balanced development of the Region by:

increasing trade – buying and selling more goods among the Member States
• diversifying trade – expanding the variety of goods and services available for trade
• liberalising trade – removing tariffs and quotas on goods produced and traded within the area
• ensuring fair competition – setting up rules for all members to follow to protect the smaller enterprises

In addition to providing for free trade, the Agreement sought to:

ensure that the benefits of free trade were equitably distributed
• promote industrial development in the LDCs
• promote the development of the coconut industry (through an Oils and Fats Agreement) which was significant in many of the LDCs
• rationalise agricultural production but in the interim, facilitate the marketing of selected agricultural products of particular interest to the LDCs (through the Agricultural Marketing Protocol); and
• provide a longer period to phase out customs duty on certain products which were more important for the revenue of the LDCs

In 1973, CARIFTA became the Caribbean Community (CARICOM).

 CARICOM – THE ORIGINAL TREATY

 In 1972, Commonwealth Caribbean leaders at the Seventh Heads of Government Conference decided to transform the Caribbean Free Trade Association (CARIFTA) into a Common Market

 CARICOM – THE ORIGINAL TREATY

and establish the Caribbean Community, of which the Common Market would be an integral part.

The signing of the Treaty establishing the Caribbean Community, Chaguaramas, 4th July 1973, was a defining moment in the history of the Commonwealth Caribbean. Although a free-trade area had been established, CARIFTA did not provide for the free movement of labour and capital, or the coordination of agricultural, industrial and foreign policies.

The objectives of the Community, identified in Article 6 of the Revised Treaty, are: to improve standards of living and work; the full employment of labour and other factors of production; accelerated, coordinated and sustained economic development and convergence; expansion of trade and economic relations with third States; enhanced levels of international competitiveness; organisation for increased production and productivity; achievement of a greater measure of economic leverage and effectiveness of Member States in dealing with third States, groups of States and entities of any description and the enhanced co-ordination of Member States’ foreign and foreign economic policies and enhanced functional co-operation.

 The Treaty of Chaguaramas which established the Caribbean Community including the Caribbean Common Market was signed by Barbados, Guyana, Jamaica and Trinidad and Tobago on 4th July, 1973, in Chaguaramas, Trinidad and Tobago. It came into effect on 1 August 1973.

The Caribbean Community and the Caribbean Common Market replaced the Caribbean Free Trade Association which ceased to exist on 1st May 1974.

The Treaty of Chaguaramas was juridical hybrid consisting of the Caribbean Community as a separate legal entity from the Common Market which had its own discrete legal personality.

Indeed, the legal separation of these two institutions was emphasised by the elaboration of two discrete legal instruments: the Treaty establishing the Caribbean Community and the Agreement establishing the Common Market (which was later annexed to the Treaty and designated the Common Market Annex). This institutional arrangement facilitated States joining the Community without being parties to the Common Market regime.

In addition to economic issues, the Community instrument addressed issues of foreign policy coordination and functional cooperation. Issues of economic integration, particularly those related to trade arrangements, were addressed in the Common Market Annex.

Because of this juridically separate identity of the regional common market, it was possible for the Bahamas to become a member of the Community in 1983 without joining the Common Market.

The CARICOM Single Market and Economy (CSME)

In the Grande Anse Declaration and Work Programme for the Advancement of the Integration Movement, Heads of Government expressed their determination to work toward establishing a single market and economy.

The CARICOM Single Market and Economy (CSME) (Continued)
The CARICOM Single Market and Economy is intended to benefit the people of the Region by providing more and better opportunities to produce and sell our goods and services and to attract investment. It will create one large market among the participating member states.

The main objectives of the CSME are: full use of labour (full employment) and full exploitation of the other factors of production (natural resources and capital); competitive production leading to greater variety and quantity of products and services to trade with other countries. It is expected that these objectives will in turn provide improved standards of living and work and sustained economic development.

Key elements of the Single Market and Economy include:

Free movement of goods and services – through measures such as eliminating all barriers to intra-regional movement and harmonising standards to ensure acceptability of goods and services traded; The decision in 1989 to establish the CARICOM Single Market and Economy (CSME) was a move to deepen the integration movement and to better respond to the challenges and opportunities presented by globalisation.

While a primary focus of the Common Market was on liberalising trade in goods among the Members, the Single Market and Economy not only expands this process to include services, but also provides for the free movement of capital (money), skilled labour, and the freedom to establish business enterprises anywhere in the Community. It also deepens economic cooperation among the Member States participating in the Single Market and Economy.

Of particular importance is the right that the CSME grants to any CARICOM national to establish a business in any Member State and be treated as a national of that state. This complements the opportunities which the CSME will provide for greater cooperation among businesses to improve and increase the quality and quantity of goods and services they produce and to do so at better prices.

A single market for goods already exists among the CARICOM member states, as more than 95 per cent of the goods produced in the Region move freely across the Region. Therefore, to complete the Single Market, the immediate focus of attention will be on the removal of restrictions on the right of establishment, the movement of services, capital and skilled labour. To complete the process, it will also be necessary to enact new laws, create the appropriate institutions and adopt the relevant administrative and other facilitating measures.

Services Chapter 3 of the Revised Treaty provides the legal basis for the free movement of services within the  CSME.  Services can be provided in four ways, namely:

  • Through cross border trade, that is from one territory to another
  • Through consumption abroad, where the consumer, like a tourist,  moves to access the service
  • Through commercial presence, that is where a business is established in the place where the service is being used; and
  • Through the temporary movement of persons, such as consultants and seasonal farm workers

Once the arrangements have been completed, it will be possible for insurance companies, banks or engineers, architects, medical personnel and other self-employed service providers of

The CARICOM Single Market and Economy (CSME) (Continued)

any member state, to offer services throughout the Market, free from nationality restrictions.  In this way, citizens will be able to choose among a wider range of service providers, thus encouraging competition and better rates for consumers.

When the provisions relating to services are combined with the Right of Establishment, opportunities are provided for the free movement of a large category of persons.  These include business owners, entrepreneurs, and self-employed persons providing services, managerial, technical and supervisory staff and the spouses and immediate dependent family members of those who qualify to move.

Right of Establishment – to permit the establishment of CARICOM owned businesses in any Member State without restrictions;

A Common External Tariff – a rate of duty applied by all Members of the Market to a product imported from a country which is not a member of the market;

Free circulation – free movement of goods imported from extra regional sources which would require collection of taxes at first point of entry into the Region and the provision for sharing of collected customs revenue;

Free movement of Capital – through measures such as eliminating foreign exchange controls, convertibility of currencies (or a common currency) and integrated capital market, such as a regional stock exchange;

THE CARIBBEAN COURT OF JUSTICE (CCJ)*

The Caribbean Court of Justice (CCJ) is the regional judicial tribunal established on 14 February 2001 by the Agreement Establishing the Caribbean Court of Justice.  The agreement was signed on that date by the Caribbean Community (CARICOM) states of: Antigua & Barbuda; Barbados; Belize; Grenada; Guyana; Jamaica; St. Kitts & Nevis; St. Lucia; Suriname and Trinidad & Tobago.  Two further states, Dominica and St. Vincent & The Grenadines, signed the agreement on 15 February 2003, bringing the total number of signatories to 12.  The CCJ was inaugurated on 16 April 2005 in Port of Spain, Trinidad & Tobago. It had a long gestation period, commencing in 1970 when the Jamaican delegation at the Sixth Heads of Government Conference, which convened in Jamaica, proposed the establishment of a Caribbean Court of Appeal in substitution for the Judicial Committee of the Privy Council.

The Caribbean Court of Justice has been designed to be more than a court of last resort for Member States of the Caribbean Community. For, in addition to replacing the Judicial Committee of the Privy Council, the CCJ will be vested with an original jurisdiction in respect of the interpretation and application of the Treaty Establishing the Caribbean Community. In effect, the CCJ would exercise both an appellate and an original jurisdiction.

In the exercise of its appellate jurisdiction, the CCJ will consider and determine appeals in both civil and criminal matters from common law courts within the jurisdictions of Member states of the Community and which are parties to the Agreement Establishing the CCJ. In the discharge of its appellate jurisdiction, the CCJ will be the highest municipal court in the Region.

THE CARIBBEAN COURT OF JUSTICE (CCJ) (Continued)

In the exercise of its original jurisdiction, the CCJ will be discharging the functions of an international tribunal applying rules of international law in respect of the interpretation and application of the Treaty.

By interpreting and applying the Revised Treaty of Chaguaramas which establishes the CSME,

the CCJ will determine in a critical way how the CSME functions.

Member States signing on to the agreement Establishing the CCJ agree to enforce its decisions in their respective jurisdictions like decisions of their own superior courts.