While the European Union (EU) went through referenda in two countries last week that explicitly rejected a treaty to establish an EU Constitution, there has been open agitation in the Bahamas against entering the Caribbean Single Market and Economy (CSME).
The arguments in France and The Netherlands against an EU Constitution were echoed in the Bahamas amongst those who oppose its entry to the CSME.
These arguments boil down to three fears: an influx of immigrants; the power of regional institutions over member countries; and the loss of domestic control of national currencies.
While the arguments are being raised, researched and debated openly in the Bahamas, they exist in other Caribbean countries as well though not to the same extent. ﾠ
In part, this is because, with the exception of Belize, the other Caribbean countries have a longer and deeper association with each other through the West Indies Federation, CARIFTA and then CARICOM, the University of the West Indies, a common West Indian cricket team, and, of course, greater ease of travel and, consequently, more contact at several levels of their societies.
In the case of the Bahamas and Belize, the primary contact has been at the level of government and inter-governmental organisations.
This lack of familiarity at the level of the wider community contributes to suspicion and unease over arrangements to draw these states closer to the rest of the Caribbean.
In the EU, the first two fears ﾖ immigration and the power of regional institutions ﾖ seemed to have had the greatest effect on the vote in the referenda in France and The Netherlands that led to the ﾑnoﾴ vote.
There was concern that people from the poorer ﾖ and more recent – member states of the EU would flood into the richer countries to compete for jobs. Anti-immigration lobbies whipped up worries that their countries will be overrun by immigrants. ﾠ
Those who oppose Bahamas entering the CSME also use the immigrant argument. They claim that the Bahamas would find that other Caribbean persons would enter the Bahamas and compete in the establishment and running of companies. The suggestion is that this would mean an influx of Caribbean ﾑforeignersﾴ to compete with Bahamians.
Of course, in the case of the CSME, the free movement of labour has not been agreed even though the literature on the subject, including news items, talks about the free movement of labour alongside the free movement of goods, services and capital.
So far, there has been agreement only on a limited number of categories under which labour could move. These relate to entertainers, media workers and to University graduates in reciprocal arrangements between member states. ﾠ
But, even if free movement of labour were to be agreed, account has to be taken of the fact that wealthier countries with the capacity to take advantage of a single market in goods or services will benefit at the expense of others. It is only fair, therefore, that where opportunities open for absorbing dislocated labour from other countries in the CSME on a structured and systematic basis, this should happen. ﾠ
With regard to the establishment and running of companies, this is a necessary part of the CSME, but it should cause the least concern in the Bahamas. ﾠ
Very few Caribbean companies would be able to establish and run companies in the Bahamas. They simply do not have the capital or the expertise. Those companies that do have such capital and expertise should be welcomed by the Bahamas for they will be small in number, and will add to the wealth of the economy.
Indeed, Bahamian companies ﾖ given their greater financial and trained human resources than, say, similar companies in the smaller Leeward and Windward islands ﾖ would be better able to establish and run companies in other Caribbean countries than the other way around. CSME may, therefore, prove to be a greater opportunity for visionary and enterprising Bahamian companies to expand into the region than it is for Caribbean companies to set-up in the Bahamas.
Further, Bahamian banks could make investments in Caribbean markets that could prove very lucrative. Certainly, the experience of aggressive financial institutions, such as RBTT and Republic Bank in Trinidad and Tobago, has demonstrated that the Caribbean is a profitable market in which to invest surplus dollars successfully.
In the EU, the power of the EU Commission and other institutions over member countries troubled important political groupings. For instance, farmers in France were upset with the EU decision to lower subsidies for some production. This decision, of course, arose out of a World Trade Organisation (WTO) ruling and would have been applied to France whether or not is was a member of the EU, but is was convenient to blame the EU.
With regard to institutions, the debate in the Bahamas seems to focus on the Caribbean Court of Justice (CCJ) and its jurisdiction there. ﾠ
Again, it seems that there is little for Bahamians to fear on this score. Many of the CARICOM countries will proceed with the CCJ only as the court of original jurisdiction in relation to disputes that affect the CARICOM treaty and its protocols including the CSME. In this regard, the Bahamas would be no different from other CARICOM countries in retaining the Privy Council as their final court of appeal for all other matters.
In most Caribbean countries, a referendum will have to be held ﾖ and the people will have to speak ﾖ if the CCJ is to replace the Privy Council as the final court of appeal. In any event, there does not appear to be any consideration by any significant group in the Bahamas, including the government, to abandon the Privy Council. ﾠ
On the final point of a common currency, the effect of the Euro on individual European countries was a minor factor in the ﾑnoﾴ vote in the referenda in France and the Netherlands on the EU Constitution. But, it would be a big concern in Britain if the government there decided to go ahead with a referendum that was planned for early next year.
Big business in Britain support joining the single currency; it is public sentiment and the anti-European movements that reject it.
But, the Euro currency in the EU has functioned alongside the British pound in an exchange rate mechanism demonstrating that it is quite possible for two or more currencies to operate within a single market. ﾠ
A single currency issue is not a requirement now of the CSME and is, therefore, an unnecessary fear in the debate in the Bahamas. ﾠ
On balance, it would appear that joining the CSME poses no threat to the Bahamas, but could provide many opportunities if its commercial and financial community oriented their thinking to see CARICOM as a market for the Bahamian services industry.
This is not to underplay the genuine concerns that exist among very distinguished and highly capable persons in the Bahamas. CARICOM governments and the Secretariat should treat their concerns with seriousness, and address them. If not, the risk is to lose the Bahamas to the Caribbean community and this would be no good for the Bahamian people or the people of CARICOM as a whole. Both would be weakened.
Other CARICOM countries could help to keep the Bahamas within the fold by two things: supporting and strengthening the valiant efforts of Bahamian government to educate the Bahamian society about the CSME, and, more importantly, by offering it special partnership arrangements with the CSME until the great number of Bahamians recognise the benefits of full participation.
(responses to: ronaldsanders29@hotmail.com)
Reprinted from Caribbean Net News
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