Globalisation, Governance and the Caribbean Community

Excerpts of the CPDC’s presentation to the 20th Meeting of the Conference of Heads of Government of the Caribbean Community, 7 July 1999, Dennis Pantin-Lead Presenter, Association of Caribbean Economists.

It cannot escape our attention that your deliberations come against the backdrop of a very critical period in the development of our region. CARICOM is currently engaged in far reaching negotiations to fashion regional and multilateral agreements, which will have a lasting impact on Caribbean people well into the next millennium.

The “G’s” will dominate the discourse on the world economy and society-Globalization and Governance. CARICOM needs to insert the two “Gs” into its deliberations on four key and inter-related trade and economic policy issues facing the region:

• Upcoming Seattle Round of global trade negotiations

• WTO ruling on the European Union’s banana regime

• Post Lome/Free Trade Area of the Americas (FTAA) linkage

• CARICOM Single Market Economy.

Seattle Round

We strongly urge that CARICOM join with other developing countries and international civic society leaders in proposing that no new round of discussions begin without a prior evaluation of the negative impact of the Uruguay Round on developing countries. We wish to warn that unless there is a dramatic redress in the nature of global governance, other economic sectors in the Caribbean may soon find themselves facing a similar daunting challenge as that of our banana producers. The initiation of the Seattle Round provides an opportunity for seeking redress, which should not go a-begging.

Bananas

The WTO has set a February 2000 deadline for a compatible regime on bananas to be put in place. We think that the following recommendations deserve urgent consideration by the Heads of Government:

• that CARICOM seek retention of the ACP quota for bananas to 2005, together with the existing tariff regime but propose a 30% reduction in the quota to 2005 as an indication of good faith. CARICOM should utilize several strategies to achieve this goal including an industry agreement and/or the 75% support, which, we understand, would permit a WTO-waiver.

• that CARICOM support its banana producers via:

• an enhanced program for augmented productivity and competitiveness in the industry

• a soft and quick dispersing financial window via the CDB to ensure a timely flow of resources to the banana industry and diversification efforts

• establishment of regional ripening facilities to permit an enhanced regional market for bananas including the tourist industry

• improved marketing infrastructure for regional trade (including sea transport) in bananas and other products

• a social safety net to buffer the impact of any dislocation which will occur during the adjustment process in the banana producing countries; and

• an action plan for speedy implementation of alternative economic activity including community linked, sustainable tourist development.

Lome/FTAA Linkage

The European Union (EU) is seeking to extend full non-reciprocal trade relations with ACP countries only to 2005, in order to await the outcome of the negotiations for the FTAA. The EU will seek to offer no more generous conditions of trade access than that which will prevail in the ultimate FTAA. CARICOM needs to insist that there be “unequal treatment of unequal economic partners” in the FTAA negotiations to avoid exclusion. Studies should be commissioned to evaluate the net cost-benefit of embracing an undifferentiated trade regime under the FTAA.

Single Market and Economy (SME)

While we believe the SME is necessary for the economic development of the region, it is not sufficient for sustainable economic development. The SME needs to be treated in the context of a larger policy framework of regional economic cooperation that is sensitive to the strategic differences in the economic structures and trading patterns of CARICOM member countries. Greater attention needs to be placed on the creation of a true regional industrial policy to buttress public policy support for existing and emerging industries for both goods and services in the region. Heads of Government should consider a more realistic timetable for the full introduction of the SME.

Charity (Governance) Begins at Home

CPDC must express its disappointment that Regional Heads have not firmly instructed the Secretariat to ensure that the much anticipated second Regional Economic and Social Conference of the social partners be facilitated. The CPDC further proposes that the CARICOM Heads of Government explicitly review regional and national structures for participation by civic society including women, youth, and people with disabilities.

We believe that the process of national and regional governance has and must change if true democracy is to emerge in the Caribbean. We have started to work towards that process by forming a Caribbean Reference Group on Trade and Development issues between CARICOM and the rest of the world.