WORLD TRADE  
ORGANIZATION  WT/REG155/2 
27 September 2004 
 
 (04-4062) 
Committee on Regional Trade Agreements Original:   English 
  
 
CARIBBEAN COMMUNITY AND COMMON MARKET, SERVICES 
 
Communication from the Parties
 
  The following communication, dated 24 September 2004, is being circulated at the request of 
the Delegations of Antigua and Barbuda, Barbados , Belize, Dominica, Grenada, Guyana, Jamaica, 
Haiti, Saint Lucia, St Vincent a nd the Grenadines, St Kitts and Ne vis, Suriname and Trinidad and 
Tobago.  
_______________ 
 
 
THE SERVICES REGIME  OF THE CARIBBEAN COMMUNITY INCLUDING 
THE CARICOM SINGLE MARKET AND ECONOMY (CSME): 
        This information is submitted in accordan ce with the guidelines provided in WT/REG/W/14 
entitled “Standard Format for Information on Econo mic Integration Agreements on Services”, as 
noted by the Committee on Regional Trade Agreements at its meeting on 2 May 1997.   To facilitate the examination by WTO Members,  the relevant provisions on trade in services 
have been identified as, Chapter Three – “Estab lishment, Services, Capital and Movement of 
Community Nationals”; Chapter Four – Part 1: “Policies For Sectoral Development”; Chapter Six – 
“Transport Policy”; Chapter Seven – “Disadvantaged  Countries, Regions and Sectors”; Chapter Eight 
– “Competition Policy and Consumer Protection”; and Chapter Ten –“General and Final Provisions”. 
The full text of the Revised Treaty Establishi ng The Caribbean Community including the CARICOM 
Single Market and Economy (CSME), is available at the WTO Secretariat,
1 on the CARICOM 
Secretariat’s web-site www.caricom.org , and in the Member States of CARICOM. 
 
 
I. BACKGROUND INFORMATION ON THE AGREEMENT 
1. Membership And Dates Of Signature, Ratification And Entry Into Force 
 The original Treaty establishing the Ca ribbean Community and Common Market 
(CARICOM) was signed on 4 July 1973 and entered into force on 1 August 1973. On that date four 
developing countries: Barbados, Guyana, Jamaica,  and Trinidad and Tobago became members of 
Caribbean Community. Since that date, membership has expanded to include ten other developing 
countries and one least developed country: Belize, Do minica, Grenada, Montserrat, Saint Lucia, and 
St Vincent and the Grenadines(1 May 1974), Antigua a nd Barbuda (1 July 1974),St Kitts and Nevis    
(26 July 1974), The Bahamas (4 July 1983), Suri name (4 July 1995) and Haiti (2 July 2002). 
  The Treaty Establishing CARICOM was submitted to a GATT Working Party in October 1974, which was established by the Council to ex amine its provisions (see L/4470). The Working 
                                                     
 
1 Document WT/REG155/1. WT/REG155/2 
Page 2  
 
 Party “agreed that the Caribbean Common Market constituted an interim agreement leading to the 
establishment of a custom union and that as such it  was consistent with the provisions of Article 
XXIV”.   A major revision of the Treaty commenced in 1989. The Conference of Heads of Government 
of the Caribbean Community, at its Tenth Meeti ng held in Grand Anse, Grenada on 4 July 1989, 
recognising the challenges of impending changes in the global trading system and the opportunities 
offered by the emerging rules-based system, agre ed to deepen the regional economic arrangement 
from a Common Market to a Single Market and Economy.      
 The Revised Treaty was opened for signature on 5 July 2001 in The Bahamas. On that date, 
Antigua and Barbuda, Barbados, Belize, Guyana, Jam aica, St. Vincent and the Grenadines, Suriname 
and Trinidad and Tobago placed their signatures to  the Revised Treaty. Grenada, and Saint Lucia, 
Dominica and Haiti signed the Revised Treaty on 4 July 2002, 6 August 2 002, and 4 July 2003 
respectively. 
 
 On 4 July 2002, the Protocol making it possible to apply the Revised Treaty pending ratification was signed by eight Member States. The CARICOM Single Market is to be fully established by 1 January 2006.   The Revised Treaty establishing the Caribbean Community including the Single Market and 
Economy was notified in February 2003 in acco rdance with Article V:7(a) of the GATS.
2 The 
notification highlighted the relevant provisions of  the enhanced service regime and the Rights of 
Establishment.  
2. Type Of Agreement 
 The Revised Treaty transforms the Caribb ean Community and Common Market into the 
Caribbean Community including the CARICOM Singl e Market and Economy (CSME) in order to 
achieve sustained economic growth and devel opment based on international competitiveness, 
coordinated economic and foreign policies, functional cooperation a nd enhanced trade and economic 
relations with Third States.    
 The objectives of the Revised Treaty are outlined in Article 6  as: 
 
- Improved standards of living and work;  
 - Full employment of labour and other factors of production; 
 
- Accelerated, co-ordinated and sustained economic development and convergence;  
 - Expansion of trade and economic relations with third states;  
 - Enhanced levels of international competitiveness;  
 
- Organisation for increased pr oduction and productivity; 
 - The achievement of a greater measure of  economic leverage and effectiveness of 
Member States in dealing with Third Stat es, groups of States and entities of any 
description; 
 
                                                     
 
2 Document S/C/N/229.  WT/REG155/2 
 Page 3 
 
 
 - Enhanced co-ordination of Member Stat es’ foreign and economic policies; and 
 - Enhanced functional co-operation, including: 
 
(i) more efficient operation of common services and activities for the benefit of 
its peoples; 
(ii) accelerated promotion of greater understanding among its peoples and the 
advancement of their social, cultu ral and technological development; 
(iii) intensified activities in areas such as health, education, transportation, 
telecommunications.  
 In terms of structure, the Agreement is divided into 10 Chapters consisting of 245 Articles, 
five Annexes and five Schedules. The 10 Chapters are as follows: 
 Chapter 1 : Principles 
 
Chapter 2 : Institutional Arrangements 
 Chapter 3 : Establishment of Services, Capital and Movement of Community Nationals 
 Chapter 4 : Policies for Sectoral Development, name ly, Industrial Policy (Part I), Agriculture 
Policy (Part II) and Common Supportive Measures (Part III) 
 
Chapter 5 : Trade Policies consisting of five parts, namely, Preliminary Issues (Part I), Trade 
Liberalisation (Part II), Subsidies for Goods (Part III), Subsidies for Agriculture (Part 
IV), and Dumping (Part V) 
 
Chapter 6 : Transport Policy 
 Chapter 7 : Disadvantaged Countries, Regions and Sect ors consisting of three parts, namely, 
Preliminary Issues (Part I), Regime for Disadvantaged Countries, Regions and 
Sectors (Part II), Special Regime for Less Developed Countries (Part III) 
 
Chapter 8 : Competition Policy and Consumer Protection consisting of two parts, namely, Rules 
of Competition (Part I) and Consumer Protection (Part II) 
 Chapter 9 : Disputes Settlement 
 
Chapter 10 : General and Final Provisions 
  The Agreement is among developing countries onl y, one of which is classified as a least 
developed country by the United Nations (UN) and the World Trade Organisation (WTO).  All of the 
members can be considered small and vulnerab le economies in terms of population, land size, 
economic output and contribution to world trade. 
 
 The Agreement seeks also to facilitate the in creasing participation of its Members in World 
Trade, as provided for under Article IV of the GATS.  WT/REG155/2 
Page 4  
 
 3. Scope 
 Chapter 3  of the Revised Treaty provides for Esta blishment (Right of Establishment), 
Services (Provision of Services), Capital (Movement of Capital and Current Transactions) and Movement of Community Nationals.  
 All sectors and modes of supply are covered. Provisions of this Chapter do not apply to 
exercise of governmental authority (Articles 30 and 36(4)). The relevant decision-making bodies may also exclude certain financial services from the provisions of the Agreement (Article 38). With respect to the Right of Establishment, governmental and private sector monopolies (Article 31) may also be 
excluded. 
 
4. Trade And Economic Data
3 
 The Members of the CSME currently face the challenge of collecting data on trade and 
production of services at a disaggregated level. Work  has begun to correct the data deficiencies with 
additional funding and support from a number of donor agencies.   
 
 This notwithstanding, very broad aggregated  data for the period  2000-2002 on production 
and trade for Members as a whole, are available at the CARICOM Secretariat.   
II. PROVISIONS AFFECTING TRADE IN SERVICES 
 With the establishment of the Single Market a nd Economy for Services, Market Access is not 
a critical point of reference since one single econom ic space is being created. The critical point of 
reference is that of National Treatment. In this regard, under the Revised Treaty the Parties have 
agreed that all measures which are inconsistent w ith their National Treatment obligations would be 
deemed to be restrictions. 
 
 Articles 32, 36, and 39 prohibit Member States from introducing new restrictions in their territories with respect to the  Right of Establis hment, The Provision of Services, and the Movement 
of Capital and Current Transactions.  Simultaneous ly, Member States are required to remove all 
existing restrictions according to an agreed Programme . Member States have also agreed to a 
timeframe for the removal of these restrictions.  The removal of restrictions must be completed by 31 
December 2005.  
  
III. GENERAL PROVISIONS OF THE AGREEMENT 
1. Exceptions And Reservations 
 Chapter 10 of the Revised Treaty provides for Security Exceptions (Ar ticle 225) and General 
Exceptions (Article 226).     Article 237 allows for reservations to be en tered to the Treaty with the consent of the 
signatory States.  
                                                     
 
3 See document WT/REG155/3 for trade and economic data for CARICOM Member States.  WT/REG155/2 
 Page 5 
 
 
 2. Accessions 
 By virtue of Article 238, after the entry into fo rce of the Revised Treaty, a State or territory of 
the Caribbean may, if the Conference of Heads of Government of the Caribbean Community so 
determines, accede to the Revised Treaty.  3. Dispute Settlement Procedures 
 Chapter Nine of the Revised Treaty makes provi sion for a range of modes for the settlement 
of disputes, including good offices, mediation, consultations, conciliation, arbitration and 
adjudication.   
 According to Article 211 of the Revised Treat y, the Caribbean Court of Justice (CCJ) has 
compulsory and exclusive jurisdiction to hear a nd determine disputes concerning the interpretation 
and application of the Revised Treaty.  
4. Relation With Other Trade Agreements 
 The Revised Treaty does not create any specific relation with any bilate ral, plurilateral or 
multilateral agreements.  
5. Institutional Framework 
 A number of Organs and Bodies have been estab lished to ensure the operation of the Revised 
Treaty.  The Conference of Heads of Government  is the Supreme Organ of the Community and 
determines and provides policy direction for the Community.  The Community Council of Ministers is 
the second highest Organ of the Community.  This C ouncil, in accordance with the policy directions 
established by the Conference, has responsibility for the development of Community strategic 
planning and coordination in the areas of economic integration, functional cooperation and external 
relations. 
 
 Of major significance in the area of services is the Council for Trade and Economic Development (COTED), which, by virtue of Article 15 of the Revised Treaty, has primary responsibility for the promotion of trade and economic development of the Community. This 
responsibility includes promoting the developmen t and overseeing the operation of the CARICOM 
Single Market and Economy, as well as determini ng and promoting measures for the accelerated 
development and marketing of services. The COTED  is also responsible for the promotion and 
establishment of measures for the development of ser vices-related sectors such as transportation.   
  The Council for Finance and Planning (COF AP) has primary responsibility for economic 
policy co-ordination and financial and monetary  integration of Member States. The Council’s 
responsibilities include the execution of a harmoni sed policy on foreign investment, recommendation 
of measures to establish and maintain fiscal discipline among Member States, and promoting the establishment and integration of capital markets in Member States.     Other Organs include the Council for Hu man and Social Development (COHSOD), 
responsible for the promotion of human and soci al development in the Community and the Council 
for Foreign and Community Relations (COFCOR), r esponsible for determini ng relations between the 
Community and international organisations, and Third States.   The functions of these Organs are underpinne d by the Legal Affairs Committee, which is 
responsible for “providing the Community’s Organs  and Bodies, either on request or on its own WT/REG155/2 
Page 6  
 
 initiative, with advice on treaties, international legal issues, the harmonisation of laws of the 
Community and other legal matters.” (Article 19 (1)).   The Revised Treaty (Article 171) makes pr ovision for the establishment of a Community 
Competition Commission, whose functions include applying Community rules of competition in 
respect of anti-competitive cross-border business c onduct, promoting and protecting competition in 
the Community and coordinating the implementation of the Community Competition Policy.  National Competition Commissions in Member Stat es will work closely with the Commission and 
Member States are obligated to enact legislation to ensure that determinations of the Commission are 
enforceable in their jurisdictions. 
 
 A Regional Accreditation Authority, whose legal basis is in Article 35 of the Revised Treaty, 
will be responsible for the establishment of common  standards to determine equivalency or accord 
accreditation to diplomas, certificates and other evid ence of qualifications secured by nationals of 
Member States. 
 
 
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