|
REMARKS
BY THE HON.
FRED
MITCHELL
MINISTER
OF FOREIGN AFFAIRS
KIWANIS
CLUB OVER THE HILL
BRITISH COLONIAL HILTON
CARIBBEAN
SINGLE MARKET AND ECONOMY
I am pleased to be here this evening to speak to you on this
matter of public importance. This club and I have a long history together.
It is almost a ritual every year that we get together to discuss
some matter of continuing public concern.
We have all grown together over the years and I am happy to be
back again this year.
There is a great deal of discussion going on in the country about
the Caribbean Single Market and Economy or CSME.
There are some who are saying that they don’t what it is. There are some who claim to know what it is but clearly they
do not. The Government is
involved in a public information programme to educate our citizens on
the facts involved in this matter.
What is a single market and economy?
If we take The Bahamas as a country, you are looking at both a
single market and a single economy.
This means that you can produce a product in Grand Bahama, sell
it New Providence or any other island in the country without attracting
any special taxes or licencing fees for simply crossing the border from
one island to the next. The
labour in the country can move from Exuma to Grand Bahama or to Abaco
and there is no special permit that is necessary to do so.
The same is true for capital.
Bahamian dollars can be spent wherever you go in the country
without any changes in the value of the money.
That is a single market.
A single economy can also be explained by reference to The
Bahamas. Again, without
regard to which island you are in the fiscal, monetary and social
policies are the same whether you are in Inagua or in Eleuethera.
The Central Bank determines the value of the money, and the
policies that govern it. The
Ministry of Finance determines the fiscal policy and the national
budget. There is one Parliament and Government that decides social
policy.
That is one single economy or economic space.
Now, what the Caricom Single Market and Economy anticipates is
that just like The Bahamas is one market and one economic space, the
Caribbean region will be one market and one economic space ranging from
Bermuda in the north to Suriname and Guyana in the South.
People will be able to trade their goods and services amongst the
14 million consumers without any special taxes apply for simply crossing
the border. Further, that
the access to capital will be freely available within the region,
opening up additional sources of capital across the region to its
entrepreneurs.
We are in Caricom, however, largely for geo political reasons. In other words, it is important for The Bahamas to align
itself with a regional group. We
therefore speak to the world in the context of that alliance. The Caricom alliance is the principal alliance of The Bahamas
save and except for that with the United States of America.
The relationship with the United States of America is clearly a
primary one, and will continue for the foreseeable future.
However, that does not stop us forging other links and
relationships that will enhance the well being of our country and our
people.
The economic aspects of what is known as the revised Treaty of
Chaguramus are of less importance today than they are likely to
be in the future. However,
there are definite benefits and advantages of being part of the entire
Caricom regime. The regime is set to come into place at the end of this
year but no country is one hundred per cent complaint with this regime.
The Bahamas is at the moment the only country that has not signed
on to the full treaty. In our view we ought to be in a position to sign provided
that the issues that we seek to reserve entry upon can be addressed to
our satisfaction.
A reservation means an exception will be made in the case of The
Bahamas. The issues that we have identified are reservations on the
question of the free movement of people, that of the use of the
Caribbean Court of Justice on its appellate side, on the question of
monetary union, and the article governing the common external tariff or
CET. On the question of the
CET, The Bahamas is seeking a transition time as it works on the
question of migrating to a new tax system. This is so that the revenue impacts of the change in taxation
will not have a negative effect on the economic growth and development
of the country.
At every juncture the primary purpose of the discussions on this
matter has been to aid public education.
Our view is that the country must be able to make up its mind on
this matter on the facts. To
this end, there are discussions planned in forums similar to this one to
discuss the ideas and hear some feedback from the public.
Already, there have been useful ideas exchanged.
We have met with the trade unions, with politicians, with church
groups and with civic groups such as you.
One group I met with earlier today was the Bahamas Pharmaceutical
Association that raised the questions on the rights of establishment,
which is the provision governing competition in sectors of the economy
that are now exclusively Bahamian.
The treaty seeks to provide equal access to a market regardless
of nationality. I have agreed to study this issue further to ensure that
where possible there can be an appropriate carve-out. We have agreed
to meet again on the matter. I
really want to thank them for the useful meeting that we had on the
issue.
There is one final
issue that I wish to address this evening.
I have been asked whether or not I am certain that even if we get
the exception for The Bahamas we will not be pressured into removing the
reservations. I answer the
question this way. The
Treaty is a document that is entered into upon certain terms.
It reserves entirely the sovereign rights of The Bahamas.
No sovereign rights are disturbed.
I cannot speak for a future Government of The Bahamas but if a
future government of The Bahamas perceives that it is in the best
interests of the people of The Bahamas in their time to remove the
reservations then that would be up to them.
We can only seek to judge what is best in our time to do and we
are seeking to do so.
Why would a government today seek to bind the future Government
of The Bahamas by asserting that it cannot over turn something that this
administration has done? This
includes withdrawing from the Treaty of Chaguramus if it is in the
national interests of the country to do so. So no I do not think that we
can be pressured into doing anything that we do not want to do.
Once again, I thank you for you’re inviting me to speak here
tonight and I look forward to the dialogue on this issue.
|
