CARIBBEAN COMMUNITY (CARICOM) leaders, meeting in Jamaica yesterday, have reached further agreement on a US$10 million fund to assist smaller member states to participate in the CARICOM Single Market and Economy (CSME), which comes into effect on January 1, 2006.
The single market is the first phase of a proposed regional economic union.
Under the Single Market arrangement factors of production such as goods, skilled labour, and owners of investment capital will be allowed to move without restriction across national borders. Eventually, the merged markets of 14 of the 15 CARICOM territories will become a single domestic market for all goods, skills and capital from each territory.
FEARS EXPRESSED
However, firms as well as the national economies of small member countries have expressed fears that with the advent of the single market, they could suffer. Hence, efforts to establish a fund to help shore up vulnerable firms and economies.
The establishment of the Regional Development Fund was the main issue under discussion at a meeting held at the Jamaica Pegasus Hotel and chaired by Minister of Finance Dr. Omar Davies.
Two Caribbean nations, not including Jamaica, have committed to providing the initial funding, Dr. Davies disclosed last night.
"It was a very productive meeting focusing on the fund and we have established a timetable. We improved upon the earlier recommendations, in particular the structure of the fund and access," he said. Further details, he added, are still to be worked out and further funding may come from donor agencies.
