CARIBBEAN COMMUNITY SECRETARIAT

Many CARICOM countries have lost important export markets in recent years, and are experiencing more intense competition from international firms because of lowered trade barriers (e.g., shortened negative lists and reduced tariffs) to entering domestic markets. A key development strategy of these countries is to create opportunities for firms to improve efficiency by operating on a larger scale, and thereby enhance their competitiveness in domestic, regional and international markets. This is particularly important since many firms in CARICOM countries are relatively small and have difficulty competing in the international markets. Increasing international competitiveness is one of the major objectives in advancing the process of integration through the establishment of the CARICOM Single Market and Economy (CSME).

To facilitate this process, the Council for Trade and Economic Development (COTED) developed a framework for joint action in the region. The Treaty of Chaguaramas was revised to provide for the implementation of the necessary legislation to deepen the integration by removing restrictions to trade and to the movement of capital and labour. By doing so, greater competition is promoted intra-regionally and CARICOM firms are provided with the opportunity to grow and supply larger markets. Competition Policy promotes and maintains competitive markets and this is a critical policy objective of the Revised Treaty of Chaguaramas. Competition Policy includes all Government initiatives designed to increase competition in markets. These include trade liberalization, privatization, deregulation and foreign exchange policy. Competition law is a subset of competition policy, and is most effective when introduced as part of a wider competition policy regime.