The use of terms of the Revised Treaty provide that services mean “…services provided against remuneration other than wages in an approved sector…”.
Typical services include, financial services, , transportation and communications ,tourism, education , health care , business services , production related services and environmental services . All of these types of services are included in the CSME agreement on free movement of services.
The services sector in the CSME dominates the regional economies. As a share of GDP at factor cost in 1995 services were estimated to contribute 74 per cent which has remained fairly stable over the period 1995 – 2006. The sectors with the largest contribution are the financial services, wholesale & retail trade and Government services.
In trade, services are significant contributing over 80 per cent, of exports of goods and nonfactor services. In the share of export services in CARICOM, trade has to with the dominance of tourism and financial services. In imports however, services account for around one third of the value of imports of goods and non-factor services reflecting the importance of merchandise trade in consumption and investment.
Data on intra-regional trade is not widely available however, but from the list of services for which there is information, it is apparent that intra-regional trade though significant is not dominant.
The CSME legislative framework which includes the Revised Treaty provide in Article 30 for CARICOM nationals to supply services to each other whether across borders or within the territory of a Member State as a matter of right. The Treaty is now the domestic law of Twelve Member States.
Further these Member States have enacted the Movement of Factors Act which contain specific sections expressing how within a Member State the law concerning the exercise of the right to provide services by nationals of another Member State will apply. In addition many specific laws have been changed in order to guarantee market access by the nationals of one member state into the services markets of another Member State.
Chapter Three of the Revised Treaty provide under Article 36 paragraph 4 , for services in the CSME to be supplied by any of the following four modes ;
Mode 1 : from the territory of one Member State into the territory of another member state
Mode 2 in the territory of one member state to the service consumer of another member state
Mode 3 : by a service supplier of one Member State through the Commercial presence in the territory of another Member State
Mode 4 : by a service supplier of one Member State through the presence of natural persons of a Member State in the territory of another Member State