Arrangements for the less developed in the Caribbean Regional Integration - by Shineco Sutherland

 

Fair warning, Covid-19 makes appearances in this article... it is just so pervasive that all my articles will make some reference to it, at least for the near future. 

Amidst the Covid-19 pandemic, we have seen many aspects of the regional mechanisms come into play. To name a few, the OECS joint procurement mechanism was used to procure medication for some CARICOM countries and the Caribbean Public Health Agency (CARPHA) has provided tremendous support to national health entities in areas such as testing and training. These are the new success stories for the Caribbean’s regional integration but of course the “old” stories are those such as the Caribbean Disaster Emergency Management Agency or the University of the West Indies. Some regional integration stories, however, are those of special regional arrangements. Stick around if you are interested in reading about some of the provisions made available to CARICOM’s less developed countries (LDCs), which can be useful for their development efforts and their post Covid-19 recovery strategies.  

The Less developed countries (LDCs) in CARICOM are identified as the members of the OECS that are also CARICOM members (Antigua and Barbuda, Dominica, Grenada, Monserrat, St.  Kitts and Nevis, St. Lucia, Saint Vincent and the Grenadines) and Belize. Notably, the LDC status derives from the juxtaposition of these countries against the more developed countries (MDCs) in CARICOM (Barbados, Guyana, Jamaica, Trinidad and Tobago and Suriname). The LDC nomenclature is however not assigned to any of the CARICOM countries (with the exception of Haiti) in the international trade context (to be explored in another article). The Revised Treaty of Chaguaramas (Legal text governing CARICOM) has made special provisions available to these LDCs, intended to bridge the development gaps amongst the two classes of members, which include:

 

• Article 164 (promotion of industrial development) – the Council of Trade and Economic Development (COTED) is authorised to suspend requirements of community origin for imports to be used in industrial production in the LDCs. What does this mean? It means that the LDCs can import inputs required to bolster their industrial sector without paying any of the duties which are normally levied on products that originate outside CARICOM.

 

This provision is made allowable with the expectation that it will be phased out and it must be supported by all LDCs and at least 2 MDCs. While there is a risk that this provision could enable continued import-dependence in the region, it also creates possibilities for LDCs to diversify their tourism dependent economies. Additionally, it is important to leverage creative solutions to fund these new developments. One potential source of investment is the Caribbean's diaspora, perhaps an opportunity for a home-based approach to Sir Arthur Lewis's "industrialisation by invitation".  

 

The diaspora represents a potential source because it may host various technical expertise, networks or access to resources that are beneficial to the development process. Additionally, the current global presence of the Black Lives Matter Movement is birthing renewed pride in nativity and may see diasporans becoming more receptive to investing or otherwise contributing to development in their home countries. For reference, the African continent is well cognisant of this new opportunity and has begun crafting the environment to woo their diaporans by recognising them as the sixth region in the African Union. Some countries (Like Rwanda) have hosted conferences in the Diaspora to start dialoguing and others like Ghana hosted "a year of return" which invited the diaspora to return and reconnect. Regardless of the medium, new thrusts for the sector must be supported by an appropriate industrial policy; one suited for the contemporary environment, is supported by trained human capital, modernised information and communication technology as well as a regional approach where possible. A successful industrial sector development can confer benefits such as improved capacity to leverage market access available via the region's various trade agreements. 

 

• Article 166 (use of technological and research facilities) – the MDCs have committed to making their technological and research facilities available for use by the LDCs. This provision can allow LDCs to leverage know-how and technology to build their internal capacity for science-driven decision making. It can also allow access to other special provisions made available by international organisations. For example, the World Trade Organisation has made the use of compulsory license allowable as per article 31(f) and 31bis of the Trade and Intellectual Property Rights (TRIPS) agreement. This provision allows countries to produce pharmaceutical products, without the requirement of pre-approval from the owners of the intellectual property rights, in emergency circumstances.  

Yes, the applicant country could import the good from another country authorised to fulfil the compulsory license. However, imagine if LDCs were to use regional research facilities to enhance their capacity for domestic production, in concert with this cheaper access to pharmaceuticals whose intellectual property rights are temporarily waived. It could create opportunities that support development agendas such as cheaper access to health care, improved national health care or enhancing people's ability to fulfil their capabilities. Eventually, it could reduce the import bill for pharmaceuticals, an option which is particularly attractive amidst the current health pandemic. It could also facilitate the relocation of regional suppliers for important elements of the medical industry.  

These are only an excerpt of the special regional arrangements made available to the less developed CARICOM members but they provide enabling environments through which development strides can be made.