
Puzzling Caricom malaise
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Thursday, March 27, 2008
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Small developing countries are affected by economic, political and physical events of external origin. Everybody knows this. Right?
What, strangely enough, everybody doesn't seem to know is that if these small developing countries, like Jamaica, are to cope with, and, more importantly, influence international developments, we need to increase our limited leverage by strategic alliances.
Of particular significance is the kind of relationships we maintain with countries that can exert influence on international events. The Caribbean Community's (Caricom's) long-standing friendship with Canada is one of particular significance and everything should be done to preserve the relationship with this invaluable ally.
Honestly, we didn't think that we would need to have to say this.
Canada has, for centuries, been a major trading partner, being the traditional source of half of our national dish. For over a century it has provided preferential trade arrangements to the region, and currently does so through CARIBCAN. Canada has consistently provided development aid, notably the gift of two ships to the short-lived West Indies Federation. It is Canada that represents most of the Caricom countries on the boards of the International Monetary Fund (IMF) and the World Bank.
Seven years ago, the prime ministers of Canada and Caricom announced the intention to replace the current goods-only trade arrangements with a more permanent and comprehensive agreement. The new pact would extend coverage to include services and investment. Such an agreement would offer the prospect of increased exports of services where the region has demonstrated a comparative advantage. It could also induce Canadian investment beyond the financial and bauxite sectors.
Canada would definitely take an empathetic approach to this trade agreement and would understand the necessity to support the resulting adjustment and implementation with a package of aid and technical assistance. Therefore, you would think, Caricom has every reason to quickly and vigorously execute the mandate, right? Wrong! The negotiations have by no means been completed.
We suggest that there has been fault on both sides that have led to this unfortunate delay. However, the malaise on the Caricom side is puzzling to us because it is Caricom, not Canada, that needs this agreement more.
Almost a year ago, Canadian Prime Minister Stephen Harper travelled to Barbados, met with the Caricom heads of government and jointly with then Prime Minister Owen Arthur announced the start of negotiations for an enhanced trade agreement. It is an inexcusable embarrassment for Caricom to be proudly announcing that it will be ready to start negotiations in June. This is adding insult to injury.
Apart from the lost opportunities to boost economic growth through the expansion of exports, there is the question of the erosion of Caricom's credibility in international affairs.
To tell one of our most consistent and important allies that the region's negotiating capacity was fully utilised on the Economic Partnership Agreement with Europe no longer has veracity.
Does Caricom worry at all about our credibility or lack thereof?
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