Grenada's Prime Minister has revealed that his country is seeking to delay its entry into the CARICOM Single Market because of fears that Grenada's hurricane-ravaged economy could not withstand the new tide of competition that the liberalised trading environment would bring.
"My own bet is that Grenada may not necessarily be ready because with the advent of Hurricanes Ivan (2004) and Emily (2005), Grenada would have been marginalized," Dr Mitchell told the Amsterdam News.
Grenada was devastated by Hurricane Ivan, which struck the country in September 2004. The total damage to Grenada is estimated to be in excess of EC$2.4 billion, more than 200% of Grenada’s 2003 nominal GDP. Nearly 90% of the houses in the country (approximately 28,000 houses) were damaged, of which approximately 30% were so badly damaged that they required complete replacement.
On July 14, 2005, just ten months after Ivan, as Grenada continued to rebuild, Hurricane Emily, a storm with sustained winds of 90 miles (145 kilometers) per hour, passed directly over Grenada. Emily exacerbated the severe losses suffered as a result of Hurricane Ivan and struck the few areas left relatively undamaged by Ivan. Total damages inflicted by Hurricane Emily are estimated to be approximately EC$140 million, or more than 12% of Grenada’s 2004 nominal GDP.
Although Dr Mitchell stated that the CSM has "a lot more advantages than disadvantages," to join now would mean Grenada starting on an an unleveled playing field which would "make it very difficult" for the country to compete in a liberalised trading environment.Earlier in the year, six CARICOM member states formally signed a declaration of their governments' compliance with the provisions of the Treaty establishing the CARICOM Single Market and Economy (CSM).
The countries, namely Barbados, Belize, Guyana, Jamaica, Suriname and Trinidad and Tobago, became the first six CARICOM countries to have signed on to the single market.
The leaders of the six Organisation of Eastern Caribbean States (OECS) agreed during a meeting in Jamaica preceding the official ceremony to push the CARICOM Single Market start date for compliance to June 30, 2006. The OECS states include Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, Saint Lucia and St Vincent and the Grenadines.
However, Dr Mitchell's comments mean that it is unlikely that Grenada will join on this date.
Key elements of the CARICOM Single Market include the elimination of all barriers to intra-regional movement and harmonising standards to ensure acceptability of goods and services traded; the right of establishment of CARICOM owned businesses in any Member State without restrictions; a common external tariff; free movement of capital and labour; and a common trade policy.
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