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CARICOM TRADE AND ECONOMIC DEVELOPMENT MINISTERS ADVANCE WORK ON CARICOM SINGLE MARKET IMPLEMENTATION
January 7, 2005
CARICOM Secretariat, Georgetown, Guyana
Caribbean Community (CARICOM) Ministers of Trade participated in the Eighteenth Meeting of the Council For Trade and Economic Development (COTED), at the Le Meridian Pegasus hotel, Georgetown, Guyana 4-7 January 2005, under the chairmanship of Hon. Michael Jong Tjein Fa, Minister of Trade and Industry of Suriname.

The meeting focused on a range of issues relating to the establishment of the CARICOM Single Market and Economy (CSME) and took a number of decisions aimed at promoting the competitiveness of the Community in a liberalised global trade environment.

At the opening of the Meeting statements were presented by Ambassador Lolita Applewahite, Deputy Secretary-General of the Caribbean Community, and the Hon Michael P. Jong Tjien Fa, Chairman of the COTED and Minister of Trade and Industry, Suriname while the Hon Clement Rohee, Minister of Foreign Trade and International Cooperation, Guyana, welcomed the delegates.

In setting the context for the Meeting, the CARICOM Deputy Secretary-General said the Region had made progress in a number of areas towards the implementation of the CSME. Not withstanding this, she pointed out that much work remained to be done, such as in the areas of the removal of market restrictions and the harmonisation of the Rules of Origin.

She stressed that fears among citizens about the loss of jobs held by nationals and concern that non-national companies are increasingly occupying what was traditionally held to be domestic markets are real. Notwithstanding this, the Deputy Secretary-General said the Community could not stop, reverse or even slow the process of implementation. Rather, she emphasised that the Region must examine the evidence regarding the impact on the people of the measures implemented thus far and take the appropriate policy and other actions to bring relief to the affected and likely to be affected sections of the Community.

The Chairman of COTED stressed that globalisation is bringing extreme pressures on small economies, thus leaving the Region with no other choice but to integrate in the shortest possible timeframe. He added that by widening and deepening the integration process the Region is creating a larger market, economics of scale and many opportunities for the people of the Community.

The Eighteenth COTED reviewed a range of issues pertaining to the CSME readiness of Member States, with particular attention on the programme for the removal of restrictions, Sustainable Development and External Trade.

The COTED reviewed critical aspects of CSME implementation and was updated on the state of readiness of Member States to implement the CSME by the 31 December 2005 timeline. All Member States advised that they were on track to meeting this deadline and it was agreed that Member States would submit to the CARICOM Secretariat updates on the implementation process.

In the area of Sustainable Development the COTED was informed of the status of countries to implement the Ten Year Review of the Barbados Programme of Action (BpoA+10), over which countries will deliberate at the International Meeting in Mauritius 10-14 January 2005.

It was noted that Member States of the Community will be in attendance and will have as their blue print the Caribbean Regional Report. The COTED was informed that the CARICOM Secretariat with a team led by the CARICOM Secretary-General; H.E Mr. Edwin Carrington would coordinate the Region’s presence in Mauritius.

The World Conference on Disaster Reduction to be held in Kobe, Japan 18-22 January 2005 occupied the attention of the Meeting. The COTED noted the negative impact of natural disasters on a country’s economy and in this regard drew attention to the devastation across the Caribbean and Asia as a result of hurricanes and earthquake in the former and the tsunami in the latter. The COTED stressed the need to ensure synergy and convergence between the Kobe and Mauritius processes.

The COTED noted the inclusion of trade issues on the Kobe agenda and stressed that the Region must participate to the fullest, given the importance of trade to Sustainable Development.

The COTED was updated on the results of the meeting between the European Union’s (EU) Commissioner for Trade Mr. Peter Mandelson and CARICOM Trade Ministers at which there was much discussion on sugar, bananas, rum and rice.

In the case of sugar the COTED noted remarks by the Commissioner that the changes that are taking place in the EU sugar quota system should be neutral in their impact on exporting countries. It was also noted that the EU official stressed that the EU’s support for sugar exporters must come into play as early as possible so as to anticipate rather than to cushion change.

The COTED said the comments from the EU Commissioner were encouraging, but stressed that the African Caribbean and Pacific (ACP) countries will continue with their lobbying as the challenges facing sugar producers in light of the plan by the EU to drastically alter the quota system for ACP countries remain.

Discussions on bananas took place against the background of increasingly complex issues including the threatened shift from a quota to a tariff regime. Other issues affecting Caribbean banana producers include the diminishing access to the European market and developments in technology which could enhance production and provide some compensation for the exposure to natural disasters and other environmentally imposed risks.

The status of various bilateral Trade Agreements came under review and the COTED has agreed to shortly determine a timetable for concluding the Agreements.

The Eighteenth COTED also considered issues relating to the suspension of the Common External Tariff (CET) on a number of products.

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