BUSINESS MONDAY: Critical CSME issues must be addressed and resolved urgently, say CARICOM leaders

Heads of Government of the Caribbean Community (CARICOM) have expressed continuing concern about the progress made and the outstanding actions still required to advance implementation of the CARICOM Single Market and Economy (CSME), particularly to support economic recovery in the face of the debilitating impact of COVID-19.

The heads said so in a communiqué that followed the Intersessional Meeting, which they held last week.

In the document, the leaders reaffirmed the critical role of the CSME in the Region’s strategy for sustained economic growth, to build economic resilience by developing the capacity to withstand both external and internal shocks to the Community.

They agreed to review urgently the entire consultation and decision-making processes at all levels in an effort to establish the most effective strategy for effecting increased levels of implementation. They also agreed that an immediate step towards achieving implementation would be led by the Lead Head of Government with responsibility for the CSME, Prime Minister Mia Amor Mottley.

“Heads of Government mandated the Council for Finance and Planning (COFAP) to meet urgently no later than end of March 2021, to resolve the outstanding issues and reach agreement with respect to the CARICOM Financial Services Agreement (CFSA), the Regional Securities Market, the Community Investment Policy and Credit Reporting,” according to the document.

They also urged the removal of non-tariff barriers to trade among Member States and the simplification of administrative procedures for free movement of people in order to boost economic output.

They stressed the urgent need to address and resolve those critical issues that impede the benefits of the CSME being enjoyed by all, particularly the private sector on which the Region is depending to fuel the recovery of its economies and which needed to be fully engaged at both the national and regional levels.

The leaders have recommended that the Special Council for Trade and Economic Development (COTED)-ICT to expedite the establishment of the Single ICT Space together with access to reduce roaming rates and enhance access to broadband as well as to examine the feasibility of establishing a Single Regional Telecommunications Regulator for the consideration of the Forty-Second Meeting of the Conference in July 2021. This would be fundamental to advance the digital economy.

Recognising that the Multilateral Air Services Agreement (MASA) is now in effect, leaders instructed the Special COTED (Transportation) to work with Member States to take the action necessary for an effective air transportation system. The Council was also instructed to follow up on the initiatives aimed at building maritime capacity, especially for transportation of agricultural produce.

Heads of Government directed that to develop further maritime transportation and support intra-regional cargo, a study be undertaken to review the status of existing port facilities in Member States; this with a view to determining those requiring update to their facilities.

In relation to the CARICOM Development Fund (CDF), the leaders reiterated the important role of the CDF to the social and economic advancement of the Community. They noted that in the context of the dire fiscal, economic and social circumstances facing Member States arising from the impact of the COVID-19 pandemic, the CDF should be positioned to provide support to Member States’ post-pandemic recovery efforts.

According to them, it was agreed to a further one-year extension to the CDF’s second contribution and subvention cycle to June 30, 2022.

They recognised the potential impact of funding shortfalls and protracted payment delays on Member States’ programmes and the CDF’s liquidity, financial sustainability and capacity to fulfil its mandate.

Heads of Government instructed the CDF to continue its efforts at mobilising funds from international development partners (IDPs) and other agencies to assist in replenishing the capital fund of the CDF. They further instructed the CDF to submit a proposal to the Council for Finance and Planning for the issuance of a Growth and Resilience Bond to support the economic recovery and transformation of Member States.