Treaty Establishing the Caribbean Community and Common Market - CARICOM CHAPTER VI: COORDINATION OF ECONOMIC POLICIES AND DEVELOPMENT PLANNING ARTICLE 39 CONSULTATION ON ECONOMIC POLICIES 1. Member States recognize that the economic and financial policies of each of them affect the economies of other Member States and intend to pursue those policies in a manner which serves to promote the objectives of the Common Market. In particular but without prejudice to the generality of the foregoing, Member States shall seek as far as practicable to-- (i) co-ordinate their economic policies and for this purpose facilitate collaboration between appropriate ministries, administrative departments and agencies; (ii) co-ordinate their statistical services in matters affecting the operation of the Common Market; and (iii) co-ordinate their positions and presentations at all international economic, financial and trade meetings at which they are represented. 2. The Council may make recommendations to Member States on matters relating to those policies and on how best to achieve such co-ordination and collaboration. ARTICLE 40 HARMONISATlON OF FISCAL INCENTIVES 1. Member States shall seek to harmonize, such legislation and practices as directly affect fiscal incentives to industry. 2. Member States shall seek also to establish regimes for the harmonization of fiscal incentives to Agriculture and Tourism with appropriate differentials in favour of the Less Developed Countries. 3. Member States agree to study the possibility of approximating income tax systems and rates with respect to companies and individuals. ARTICLE 41 INTRA-REGIONAL AND EXTRA-REGIONAL DOUBLE TAXATION AGREEMENTS 1. Member States shall approach their negotiations for Agreements for the avoidance of Double Taxation with countries outside the Common Market on the basis of a set of mutually agreed principles. 2. With a view to encouraging the regulated movement of capital within the Common Market, particularly to the Less Developed Countries, Member States agree to adopt among themselves Agreements for the Avoidance of Double Taxation. ARTICLE 42 HARMONISATION OF LAWS 1. Member States recognise the desirability to harmonise as soon as practicable such provisions imposed by law or administrative practices as affect the establishment and operation of the Common Market in the following areas: (a) companies; (b) trade marks; (c) patents; (d) designs and copyrights; (e) industrial standards; (f) marks of origin; (g) labeling of food and drugs; (h) plant and animal quarantine restrictions; (i) restrictive business practices; (j) dumping and subsidization of exports. 2. The Council shall keep the provisions of this Article under review and may make recommendations for the achievement of this objective. ARTICLE 43 MONETARY, PAYMENTS AND EXCHANGE RATE POLICIES 1. Member States undertake to permit within the Common Market freedom of payments on (a) current account and (b) capital account necessary to further the objectives of the Common Market. 2. Member States recognizing that exchange-rate stability as between themselves is necessary to promote the smooth functioning of the Common Market agree to-- (a) a policy of continuing consultation and the fullest possible exchange of relevant information on monetary payments and exchange rate matters, and (b) to examine ways and means of harmonizing their monetary and exchange-rate and payments policies in the interest of the smooth functioning of the Common Market. 3. Member States further agree -- (a) to the policy whereby through arrangements by their Central Banks or Monetary Authorities the notes and coins of other Member States shall be exchanged within their own States at official par value without exchange commission. (b) to develop arrangements for co-operation in other monetary matters including the operation of a clearing arrangement by their Central Monetary Authorities. ARTICLE 44 OWNERSHIP AND CONTROL OF REGIONAL RESOURCES 1. Member States recognise the need for continuing inflows of extra-regional capital and the urgent necessity to promote development in the Less Developed Countries. 2. Member States shall keep under review the question of ownership and control of their resources, with a view to increasing the extent of national participation on their economies and working towards the adoption as far as possible of a common policy on foreign investment ARTICLE 45 COORDINATION OF NATIONAL DEVELOPMENT PLANNING 1. Member States recognise the desirability of a long-term Common Market Perspective plan as a framework for co-coordination their development efforts and agree to work jointly in the formulation of such a Plan. 2. In order to promote maximum complementarity between industries and economic sectors of Member States, each Member State agrees to consult with other Member States in drawing up its national medium-term operational development plans. Member States shall establish a Committee of Officials in charge of national planning agencies for the purpose of promoting collaboration in development planning. ARTICLE 46 COMMON MARKET INDUSTRIAL PROGRAMMING 1. Member States undertake to promote a process of industrial development through industrial programming aimed at achieving the following objectives: (a) the greater utilization of the raw materials of the Common Market; (b) the creation of production linkages both within and between the national economies of the Common Market; (c) to minimize product differentiation and achieve economies of large scale production, consistent with the limitation of market size; (d) the encouragement of greater efficiency in industrial production; (e) the promotion of exports to markets both within and outside the Common Market; (f) an equitable distribution of the benefits of industrialization paying particular attention to the need to locate more industries in the Less Developed States. 2. The Council may make recommendations from time to time to promote achievement of the objectives stated in paragraph I of this Article. ARTICLE 47 JOINT DEVELOPMENT OF NATURAL RESOURCES 1. Member States agree to a policy of regular exchange of information on their natural resources with a view to the development of joint projects for the increased utilisation of these resources within the Common Market and to collaborate in promoting research in these areas. 2. With a view to facilitating negotiations with mining companies, Member States agree to exchange information on exploration leases, exploitation licences and on taxation of mining companies. 3. The Council advised by the Standing Committee of Ministers responsible for Mines and Natural Resources may make recommendations for achieving the objectives stated in paragraphs 1 and 2 of this Article. ARTICLE 48 MARKETING OF AGRICULTURAL PRODUCTS 1. Member States agree to work towards the rationalization of trade within the Common Market of certain selected agricultural products having special regard to the agricultural development of the Less Developed Countries. 2. In pursuance of this objective Member States agree to arrangements for the marketing of oils and fats and other agricultural products as set out in Schedules VII, VIII and IX to this Annex. 3. The Council may make recommendations for the development of agricultural trade between Member States. ARTICLE 49 RATIONALIZATION OF AGRICULTURAL PRODUCTION 1. Member States agree to adopt a scheme for the rationalization of agricultural production within the Common Market with a view to promoting complementarity in national agricultural programmes and providing special opportunities for the development of agriculture in the Less Developed Countries. 2. The Scheme shall have the following objectives: (a) the development of a regional plan for the integration of agricultural development in the Common Market; (b) the achievement of the optimum utilization of agricultural resources; (c) the improvement of the efficiency of agricultural production in order to increase the supply of agricultural products for-- (i) domestic consumption; (ii) export to regional as well as extra-regional markets; and (iii) inputs for agro-based industries. (d) replacement of imports on a regional basis; (e) increasing the income and standard of living of the rural population; (f) contributing to the achievement of full employment for the peoples of the Common Market; (g) the provision of greater opportunities to the Less Developed Countries for the expansion of agricultural production for export to markets within and outside the Common Market. 3. Member States recognise the desirability of joint action in the exporting of non-traditional agricultural products to countries outside the Common Market and agree to the promotion of schemes towards this objective. 4. With regard to the production of non-traditional agricultural products, Member States shall pursue a policy of collaboration with a view to improving productivity and o ting a more efficient allocation of the resources of the Common Market giving special consideration to the need for increasing production in the Less Developed Countries. 5. The Council shall keep this Article under review and shall make recommendations to Member States for achieving its objectives. ARTICLE 50 COOPERATION IN TOURISM 1. Member States agree to collaborate in the promotion and development of the tourist industry within the Common Market. Continue on to Chapter VII