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REVISION OF THE TREATY Protocol I In force.  
Protocol II In force.  
Protocol III Montserrat to declare Provision Application.  
Protocol IV In force.  
Protocol V Montserrat to declare Provision Application.  
Protocol VI Montserrat to sign and declare Provision Application.  
Protocol VII In force.  
Protocol VIII Montserrat to sign and all Member States except Belize to declare Provision Application.  
Protocol IX Montserrat to sign and all Member States except Belize to declare Provisional Application.  
Revised Treaty Nine Member States have signed - Antigua and Barbuda, Barbados, Belize, Guyana, Jamaica, St. Kitts and Nevis, St. Vincent and the Grenadines, Suriname and Trinidad and Tobago.  
Protocol on Provisional Application of the Revised Treaty Signed by all Member States except Montserrat  
Protocol on the Revision of the Treaty Signed by all Member States except Montserrat  
New Issues:    
E-Commerce Study completed. Secretariat to convene Meeting of Regional Officials to develop proposals toward formulation of regional strategy for e-commerce
Trade with Free Zones Resources to be identified. Resources to be identified to undertake study.
Free Circulation Resources to be identified. Resources to be identified to undertake study.
Government procurement Study in Train.  
Rights Contingent to Free Movement of Persons Additional resources to be identified.  
Effective Decision- Making and Implementation Restructured Organs and Institutions: All functioning.  
Political and Policy Making Entities (Conference, Community Council, Ministerial Councils, Two Prime Ministerial Sub-Committees and The Bureau).   Prime Ministerial Sub-Committee on the CSME established in 2001.
Consultative Political Structures: (i) Assembly of Caribbean Community of Parliamentarians    
(ii) Quasi-Cabinet Antigua and Barbuda - Services (including Information Technology and Telecommunications). Lead countries for various components to play more active roles.
The Bahamas - Tourism (including Land, Cruise, Suva Partnership Agreement Provisions etc.).
Barbados - CSME.
Belize - Sustainable Development (including Environment and Disaster Management).
Dominica - Labour (including intra-community movement of skills).
Grenada - Science and Technology.
Guyana - Agriculture and Agricultural Diversification and Food Security (including the Regional Transformation Programme.
Jamaica - External Negotiations.
Montserrat - will work closely with Belize given its special interest in disaster management.
St. Kitts and Nevis - Health (including HIV/AIDS), and Human Resource Development.
Saint Lucia - Justice and Governance.
St. Vincent and the Grenadines - Bananas and Transport (Maritime and Aviation).
Suriname - Community Development and Cultural Cooperation (including Culture, gender, youth and sport).
Trinidad and Tobago - Security (Drugs and Illicit Arms).
Technical Bodies: All are functioning  
Committee of Central Bank Governors. Legal Affairs Committee. Budget Committee.    
National Structures:    
- Political Portfolio of Minister with Responsibility for CARICOM Affairs In place in all States.  
- CEO, Ministry of CARICOM Affairs Not in place in all Member States.  
- National Consultative Process (Protocol I) Requires development in most States. Not working in most States.
- Inter-Ministerial Consultative Committee    
- Business and Labour Advisory Committee    
Administrative Organs:    
Caribbean Community Secretariat Arrangements for establishment of specialised CCS/CSME Unit in train. CCS needs greater capacity in some areas.
Regional Institutions for the Functioning of the CSME - Caribbean Court of Justice Ten Member States have signed the Agreement. Needs capitalisation of Trust funds.
Community Competition Commission Not yet established. Study in train.
  Caribbean Regional Organisation For Standards and Quality (CROSQ) Inter-Governmental Agreement signed by eleven (11) Member States - Antigua and Barbuda, Barbados, Belize, Grenada, Guyana, Jamaica, Saint Lucia, St. Kitts and Nevis, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago. Agreement now provisionally applied among signatory States.

Dominica and Montserrat to sign.

Full Liberalisation of Intra-Regional trade in goods. Removal of Quantitative Restrictions prohibited under Protocol IV. Effective with few exceptions where some Member States maintain unauthorised restrictions on a few items. Belize- revenue replacement tax, Guyana and Grenada- discriminatory environmental tax, St. Vincent- import licences.
Common External Tariff (CET) Law to administer the CET is in place in all States. Effective in all Member States. Rules revised in 1996, consistent with the revision of the Harmonised Classification System.
  Reduction of CET by an Agreement of Heads in 1992 to 40% agriculture and 20 % for non-agriculture products. This is the Fourth Phase Implementation Plan. Antigua and Barbuda and Suriname and St. Kitts and Nevis to implement the Fourth Phase. An ongoing review of tax policy of St. Kitts and Nevis is taking place to determine the manner in which it would be able to manage a regime of reduced tariffs. Montserrat to regularise its implementation of the Fourth Phase.
Mechanism for Suspension of CET. COTED and Secretary-General maintain administrative authority. Mechanism Working.
Mechanism for Safeguard Certificate. Secretary-General activates on request. Mechanism working.
Common Regional Origin Certificate. In force under customs Act in all States. Mechanism working.
Mechanism for Verification of Origin. Secretary-General activates on request. Not frequently used. The procedures for activating the mechanism is currently being strengthened.
Internal Taxes and Other charges. Not Harmonised. Major area for future work to be done.
Taxation of Temporary Service Providers under Protocol II. Issue to be considered in context of Protocol II Major area for future work to be done.
Protocol VIII permits action against -    
Dumping Model legislation being prepared by the CCS. First Draft is ready. Jamaica and Trinidad and Tobago already have modern anti-dumping law.  
Subsidies (Export subsidies prohibited) States without modern law expected to use the model legislation. All States except Guyana must remove subsidies after 1 January 2003.
Harmonised Customs Law Drafting of 21 modules of modern Customs Legislation completed. States to implement. Member States yet to take action to implement.
Regime for application of Common Standards for Trade in Goods . There are 27 Mandatory and 18 Voluntary standards in operation. 4 additional standards are in the process of development. Creation of expanded standards programme. Examples of standards in operation include: edible oils, fats and margarine, brown sugar, toilet and laundry soap, paint, canned vegetables, rice and matches.
Common Market Standards Council being Replaced by the CARICOM Regional Organisation for Standards and Quality (CROSQ). Inter-Governmental Agreement signed by Nine (9) Member States. Agreement being Provisionally Applied.
  Secretariat to be established. Recruitment of staff and commissioning. To take effect in Barbados after signing of Agreement.
Sanitary Legislation/Regulations. No harmonised system. There is Draft Sanitary Legislation. Member States are expected to implement. Each Member State has its own legislation.
Phyto-sanitary Legislation/Regulations. Phyto-sanitary legislation not yet developed.  
Trade in Goods From Free Zones. Policy and principles are being developed. A specific Protocol to deal with the treatment of Goods from Free Zones may have to be developed. A Study to compare incentives in Free Zones and Customs Territory to be undertaken to conclude policy and principles. Task Force established to determine the Terms and Conditions under which CARICOM Free Zones products may be traded in the CSME.

The Task Force has developed categorisations of goods traded from free zones.

Task Force has also developed proposals for the treatment of goods shipped through and shipped from Free Zones.

Resources being sought.

Free Circulation Member States have agreed Study necessary to determine the feasibility of implementation of Free Circulation. Resources being sought. Development of a regime for Free Circulation will complete Customs Union. The legal, institutional and administration framework will have to be developed if so determined.
ESTABLISHMENT Standstill on New Restrictions:    
Right to establish commercial presence anywhere in the CSME enforceable under Protocol II National Treatment.   Companies owned by CARICOM nationals (50% and more equity) and companies substantially controlled by CARICOM Nationals (power to name majority of directors and legally direct company).
Right of Establishment given to:

Companies; CARICOM Nationals (including managerial, supervisory and technical staff, spouses and dependants) engaged in the following non-wage earning activities: industrial (includes agricultural), artisanal, commercial and professional.

  Free movement of managerial, technical and supervisory staff of economic enterprises (including spouses and dependants). To acquire land, buildings and other property
Removal of Restrictions States prohibited from introducing new restrictions. Restrictions have been identified.
  Remove all existing restrictions on the Right of establishing companies, subsidiaries or branches. Schedules for removal of restrictions confirmed by Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, St. Kitts and Nevis, St. Vincent and the Grenadines and Suriname. The timetable for the removal of restrictions to be notified by St. Lucia and Trinidad and Tobago.

Montserrat granted two-year derogation from its obligation to implement Programmes.

CSME Regional System of Company Registration required. No Action. Research Paper and convening of Meeting of Registrars. Policy/Institutional/Administration/feasibility study required.
Updated company legislation required Model legislation done. Implemented in some Member States. Further research and analysis required.
Corporate Taxation Principal elements of Harmonisation negotiated.

Model Legislation to be prepared.

  Monopolies States to modify existing law or enact Model Law.

States have the discretion to determine whether a monopoly both public and private should be maintained or created to serve the public interest.

Both public and private sector monopolies are allowed.

Where a monopoly is operating, non-discriminatory treatment must be afforded to CARICOM nationals to participate in or receive services

  Establishment of Cross Border companies. 40 CARICOM companies have establishments outside of their home State Trinidad & Tobago has 16 companies with overseas locations.

Top 10 companies have as many as 5 or more locations.

Full Liberalisation of Trade in Services Negative List Approach

Prohibition of new restrictions (standstill)

No restrictions exist on:

Transport via space

Specialty design services
( 813).

Advertising services

Market research and opinion polling(837)

Restrictions have been identified in all Member States.

Schedule for removal of restrictions confirmed by Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, St. Kitts and Nevis, St. Vincent and the Grenadines and Suriname.

St. Lucia and Trinidad and Tobago to notify.

Montserrat granted two-year derogation.

When disaggregated, many specific services are included under these.

There is no evidence that new restrictions have been introduced since 1998.

  Photographic and photography processing (838)

Other professional, scientific and technical services (853)

Packaging services (854)

Installation services other than construction (856)

Sanitation (943)

Other environmental protection services (949)

Washing, cleaning and dying services (971)

This means that free trade can and should proceed in these services.

If they are, they are illegal and would have to be discontinued.

Work permit needs to be waived in favour of natural persons providing these services whether these are :

  • Industrial, commercial, professional or artisanal service providers.
  • Temporary service providers
  • Managerial, technical or supervisory personnel.
  • Graduates, musicians, sportsmen, artistes.
Remove restrictions that exist. Enact enabling legislation (repeal/amend) except those involving the exercise of governmental authority. Study to identify all restrictions completed in November 2000.  
  Working Group on Services negotiations established.  
  Study to develop approach to removal of restrictions completed in Member States - June 2001.  
Seek GATS compliance. Required to notify WTO on Protocol II and Programmes to remove restrictions. Needs consideration of harmonised removal agenda in some areas.
  Cross Border Trade

80 restrictions

Technical and political negotiations on going.
Temporary service providers. Movement of Natural Persons

279 restrictions identified Region wide.

Technical and political negotiations on-going.
    Work permit problems.
    Also problems of:


Permanent service providers, managerial, supervisory and technical staff, spouses and dependants. Establishment of Commercial Presence

300 restrictions identified Region wide.

Technical and political negotiations on-going.

Problem with spouses/ dependents.

Technical and political negotiations on-going.

Natural persons.   Technical and political negotiations on-going.
Companies.   Technical and political negotiations on-going.
Legal Regime for Trade in Services Documents not drafted.

To recruit consultant to construct regime on Trade in Services.

Expected to be drafted during second quarter of 2002.
    The timetable for implementation/ enactment to be decided at completion of negotiations.
FREE MOVEMENT OF CAPITAL Convertibility of currencies Only fixed rate currencies are convertible.  
Removal of Exchange Controls Barbados, Belize and OECS countries have specific limits on amounts transferable without permission. Guyana, Jamaica and Trinidad and Tobago have abolished exchange controls.
Convergence of Macro-economic policy and performance. COFAP currently strengthening mechanisms to enable review and recommendations.  
Regional Stock Exchange with Cross listing and trading in securities on existing stock exchanges. Barbados, Jamaica and Trinidad and Tobago remain the only countries comprising the Regional Stock Market. The Bahamas, Barbados, Jamaica and Suriname, Trinidad and Tobago and the OECS have stock exchanges.

Guyana and Belize to establish stock exchanges.

Needs legislative framework.

Establishment of a Regional Equity/ Venture Capital Fund. Caribbean Investment Fund (CIF) in place.  
FREE MOVEMENT OF PEOPLE Facilitation of Travel:    
Elimination of need for passport. Immigration Officials continuing their deliberations. Issuance of a CARICOM ID by 2003 for intra-regional travel.
Elimination of need for visa. The Bahamas and St. Kitts and Nevis require visas for Suriname Nationals and Suriname requires visas for Nationals of the Bahamas. St. Kitts and Nevis administratively facilitates entry for Suriname nationals.
Common Lines. Effective in most Member States; except Trinidad and Tobago and The Bahamas.  
CARICOM E/D Forms. Immigration Officials agreed on core elements for a revised CARICOM E/D Form.  
CARICOM Passport. Technical Proposal developed. Main issue now is the need to make the CARICOM Passport attractive to general public.
Free Movement of Skills    
Eliminate Work permits for:    
University Graduates. Caribbean Community Skilled National Bill: Enacted in all States except Montserrat and Suriname  
Media Workers. Categories defined and legislation in place in Belize, Guyana, Jamaica and St. Vincent and the Grenadines. Requires legislation by other Member States.
Artistes/Musicians. Categories defined and legislation in place in Belize, Guyana, Jamaica, and St. Vincent and the Grenadines Requires legislation by other Member States.
Sports Persons. Categories defined and legislation in place in Belize, Guyana Jamaica and St. Vincent and the Grenadines. Requires legislation by other Member States.
Acceptance of Diplomas, Certificates and other Evidence of Qualifications Establishment of a CSME Accreditation System  
Establishment of National Accreditation Agencies as at May 2001:  
Fully Functioning Bodies

Jamaica and Trinidad and Tobago (in process of integrating Academic and TVET)

Limited Functions in St. Kitts and Nevis (off-shore institutions).  
In the process of establishing:

Barbados, Saint Lucia, The Bahamas, Belize, Guyana and Suriname.

OECS to advise if sub-regional agency will be established.  
Establishment of harmonised standards and measures for accreditation and mutual recognition of qualifications. Work is about to start in Services Sectors - Engineering, Land Surveying, Tourism, Information Technology and Agriculture.

Resources approved for regional accreditation body.

Agreement on transference of Social Security Benefits Agreement entered into force on 1 April 1997 and is applicable to thirteen Member States excluding Suriname. Social Security transfers being done by Trinidad and Tobago and Barbados. Thirteen Member States have signed, including The Bahamas. Suriname is yet to sign. It should be noted that Suriname does not have a Social Security System similar in nature to the other CARICOM Members.

Twelve have ratified. The Bahamas and Suriname to ratify.

  National legislation on transference of Social Security benefits enacted in all States except: Dominica Saint Lucia Suriname Forms and procedures to pay benefits developed, approved, and in use.
LEGAL ENVIRONMENT AND UNIFORM LEGISLATION Establishment of the Caribbean Court of Justice. Signed by all Member States, except two.  
Harmonisation of Legislation in respect of:    
Restrictive Business Practices Drafting of Model Legislation has been commissioned. Required by Rules of Competition under Protocol VIII.
Consumer Protection Drafting of Model Legislation has been commissioned. First inclusion in Treaty. Promotes fair trade and protects consumer's interests.
Banking and Securities No action.  
Intellectual Property Rights: COTED established a Task Force which met twice. Property right is a complex legal issue. There is no straightforward way to reach the stage of drafting legislation.
Regional Administration for patents, trademarks and copyrights. Task Force began work on identification of areas for harmonisation of legislation.  
Harmonised Intellectual property Rights Law. No Action: Task Force has not made progress. Study on Regional Regime for Trade in Intellectual Property needs funding.
Commercial Arbitration No Action.  
Corporate and other forms of Direct Taxation Progress made. Agreement on elements for corporate taxation harmonisation. Needs development of an implementing Protocol.
Double Taxation Agreement signed and ratified by eleven Member States excluding Montserrat and Suriname Montserrat and Suriname to sign and ratify.
  Legislation enacted in 7 Member States -Antigua and Barbuda, Barbados, Belize, Guyana, Jamaica, St. Vincent and the Grenadines and Trinidad and Tobago Dominica, Grenada, St. Kitts and Nevis, Saint Lucia and Suriname to enact national legislation.
Indirect taxes No action Requires major policy study.
MONETARY INTEGRATION Establishment of a Monetary Union and a Single Currency Committee of Central Bank Governors responsible for keeping implementation of agreed indicators under review.  
  Widening Market Area (Market Access 75 million consumers), CARICOM 6, Haiti 8, Dominican Republic 7, Colombia 32, Venezuela 22, Cuba 10. Admission of Haiti.

Negotiations of Bi-laterals.

Association of Caribbean States.

Bi-laterals with: Cuba, Colombia, Dominican Republic, Venezuela.
      In progress are measures to implement: trade, transportation and tourism to provide
  Common Instruments, Services and Joint regulation/administration of external commerce. CET and Rules of Origin in place.  
  Restraint on use of QR's against non-members of CARICOM   States retain right to maintain restrictions by QR's.
  Common Negotiating Strategies Prime-Ministerial Sub-Committee on External Negotiations has responsibility.  
    Regional Negotiating Machinery (RNM) established.  
    Areas for action are determined by the Conference, as in the FTAA , the WTO built-in Agenda and Bi-lateral agreements.  

19 April 2002