CARICOM has entered into bilateral Free Trade Agreements with the Dominican Republic and Costa Rica and is currently involved in trade negotiations with Canada and the European Union, in addition to which there is talk of commencing negotiations with MERCOSUR.

The Andean Community and MERCOSUR have already concluded negotiations on a Free Trade Treaty.

Mexico has a Free Trade Agreement in force with the United States and Canada.

Cuba has a Free Trade Agreement with CARICOM, Venezuela and Russia.

Central America and the Dominican Republic have concluded a Free Trade Treaty with the United States; at a recent meeting held on March 9 of this year, in the Declaration of the Summit of Heads of State and Government of the Member Countries of SICA, Central America: a) reaffirms interest in completing efforts for the entry into force of the Free Trade Treaty between Panama and the remaining countries of Central America; b) expresses willingness to announce, during the 2006 Vienna Summit, the launching of negotiations for a partnership agreement between Central America and the European Union, which includes a Free Trade Treaty; c) announces that it is exploring the possibility of establishing a Free Trade Treaty with the CARICOM countries.

Within this intense climate of international trade negotiations, as far as the Greater Caribbean region is concerned, regional integration encounters moments of singular definitions due to the coexistence of bilateral trade agreements with partners both within and outside the region, which raises the need for greater coherence among the different levels of multilateral, hemispheric, regional, sub-regional and bilateral trade policy.

This international trade negotiations agenda, at its different levels, puts greater pressure on integration schemes and can sometimes distract the efforts needed to update and render more efficient the very integration schemes that must be revised and readjusted to suit the new international reality being shaped in the field of trade, in light of the various international trade agreements that exist.

In the multilateral arena, it includes overall assessments on the different trade issues that are of general interest to the Greater Caribbean Region, so as to determine, by virtue of the experience accumulated, the opportunity to address those issues in a regional fashion.

In the context of the provisions of the Convention Establishing the ACS, the ACS is an organisation for consultation, co-operation and concerted action, whose purpose among others is “to promote an enhanced economic space for trade and investment …” (Art. III 1c of the Convention Establishing the ACS), thus serving as an instrument that is available to members to examine these interrelations, if they deem it appropriate.

The Greater Caribbean Region is made up of a set of small economies and vulnerable economies, and this is a reality that could foster the presentation of joint proposals, in the multilateral sphere, with respect to issues that interest the region as a whole or a considerable part of the zone, such as the matter of Small Economies and Special and Differential Treatment; Development Funds; and Export Promotion.

Manuel Madriz is the Director of Trade at the Secretariat of the Association of Caribbean States. The opinions expressed are not necessarily the official views of the ACS. Comments and reactions can be sent to mail@acs-aec.org

March 14, 2006