Free Circulation of Goods in the OECS
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1 ORGANISATION OF EASTERN CARIBBEAN STATES Free Circulation of Goods in the OECS Presentation to the St Lucia Chamber of Commerce 2 April, 2013
2 OECS Economic Integration is about removing barriers between national markets in goods, services and factors of production to increase competitiveness and total output among the OECS so as to improve the welfare and quality of life of the people
3 Treaty Provisions: creation of a single economic and financial space prohibition of customs duties and restrictions on the importation and exportation of goods common customs tariff and common commercial policies....abolition of the obstacles to the free movement of persons, services and capital..
4 Creation of the Common Market A single economic and financial space Prohibition of customs duties, QRs, import formalities Common Customs Tariff Policy harmonization Free movement of factors 22
5 Free Movement of Goods Goods produced in the union will be without trade and other such restrictions. These restrictions will be completely dismantled for goods originating from the union. Goods entering the EU will be in free circulation (Article 4, 5, 6, 7, 8, 9, 10 Protocol)
6 Goods from OECS countries Goods from non-oecs countries 23
7 Goods from OECS countries & in free circulation X X X Free circulation: removal of physical, fiscal and technical barriers 24
8 Key Actions Required to create the common market Tax Reform Common Customs Tariff (CCT) for the OECS Based on the CET (CARICOM) Harmonization of derogations from the CET Elimination of tariffs on intra-oecs trade Consider reform of regime for other duties and charges and internal taxes to minimise potential problems Harmonize CSC, VAT, environmental levy inter alia 25
9 Key Actions Required to create the common market - NTBs Customs importation procedures and other regulatory matters (e.g. SPS, TBT) should apply at first point of entry into the common space but not for intra-oecs trade TBT & SPS reform would be supported by harmonization and mutual recognition (with provision for exceptions) 26
10 Key Actions Required to create the common market Institutional Issues Establish regional supporting systems & mechanisms: Regional Risk Management System Regional Customs Committee 27
11 Key Actions Required to create the common market Legislative Review Legislative Review Harmonisation and/or mutual recognition Regional Customs Code Areas of legislative competence endorsement required by OECS Authority 28
12 Key Actions Required to create the common market Other Actions Other cross cutting actions Training for relevant officials and private sector Public Awareness and Education Increased coordination between border agencies 29
13 Implications: Time savings/efficiency: No barriers = less time at the border Revenue loss? 0.6% 1.4% (2009) = Reduction in cost of moving goods within the single space 29
14 Common market for Services: Free Movement of Persons: Citizens of the member states will be able to move to work and live freely in any member state of the union.(article 12 Protocol) Free Movement of Services: Nationals of participating states will be able to process and receive services in any state.(article 27 Protocol 29
15 Common market for Services: Free Movement of capital: Restrictions on the movement of capital within the union will also be totally eliminated. This will address inter alia double taxation and the restrictions on the provision of certain economic activities to nationals of these states. (Article 27 Protocol 29
16 Actions required to complete Common Market for Services: Establish Systems for Accreditation & Mutual Recognition Establish Employment Services Network (ESN) Create mechanisms to allow access to Social Security benefits and to meet obligations (contributions) 29
17 Actions required to complete Common Market for Services: Permit the establishment of Member State owned businesses in any Member State without restrictions; Eliminating restrictions on the provision of economic services 29
18 :Visit our website For more Information on the OECS Call us (758) us at Economic Union Follow us:
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