TT union with OECS states could have severe consequences for Caricom

A decision by Trinidad and Tobago and Eastern Caribbean states to form an economic and political union by 2013 could have severe consequences for the regional integration movement.

That's the view of Jamaican Prime Minister Bruce Golding. In addition Golding has warned that membership in the Bolivarian Alternative for the Americas (ALBA), being promoted by Venezuela may have a “destabilising effect” on the Caribbean Community (CARICOM).

Speaking at the launched of Export Week in Kingston Golding said there are factors which were now putting CARICOM at risk.

"The political integration that is being pursued by Trinidad and a number of countries in the Eastern Caribbean may very well be commendable, but I believe that it is at the detriment to the deepening and strengthening of CARICOM,” he said.

Trinidad and Tobago, St. Lucia, St. Vincent and the Grenadines and Grenada have agreed in principle to form an economic and political union by 2013, a position that has been endorsed by other members of the sub-regional Organisation of Eastern Caribbean States (OECS).

The four CARICOM countries recently accepted a report of a six-member Task Force headed by former St. Lucia prime minister Professor Vaughan Lewis on the modalities for achieving their political and economic initiative.

The report of the Task Force is now being circulated for public discussion.

Golding also warned of support by CARICOM member states for ALBA, the Venezuela-led initiative intended to bring Latin and Central America and CARICOM closer together.

"I believe that the membership of ALBA which now engages three CARICOM countries, is going to have a destabilising effect on CARICOM,” Golding said.

He said Jamaica would seek clarity on the commitment of other regional governments when CARICOM leaders meet in Guyana in July.

"I will go to that meeting determined to make whatever effort we need to make, to make this thing work.

“I do not believe that any of us can believe that we are going to be better off trying to swim in this Caribbean sea on our own, but it is time for us to stop playing games, for us to stop mouthing integration and professing our commitment to this process when the pragmatic demonstration of that commitment is so often not being brought to the fore," Golding said.

He said he was of the view that the new global landscape challenging countries like Jamaica requires a regulatory structure.

He said markets have proven that they are not capable of regulating themselves and that there was need for systems to be put in place to ensure effective functioning.

Referring to the recent incident with the export of Jamaican patties to Trinidad, Golding said the only way to remove measures that are used to counter the effect of tariff liberalisation, “is to get to a stage where we have standards that are accepted and cannot be challenged and which will assist in the smooth flow of goods throughout the market.

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"This is where accreditation comes in. If world trade is to function effectively to support economic growth, we need these agreed standards and the mechanisms to certify and to assure our traders.

"We have to have a network of laboratories that are respected and that command confidence in what they say.”

He said the current global crisis has demonstrated that markets cannot be left to their own destructive design and that systems need to be in place to ensure that activities are conducted transparently and that the odds are not stacked against particular players.

“We have had to confront a number of barriers that represent serious impediments to economic growth. One of these barriers has to do with the application of standards.

"Markets need a frame of reference if we are to ensure that the goods being traded have standards that are universally agreed on; that they represent a quality commensurate with the price we pay,” he said.