New York -- June 20, 2008 -- I count it an honour to be able to speak today on behalf of the CARICOM at this session of the New York Conference on the Caribbean. The Conference is, for us in CARICOM an extremely important symbolic and functional vehicle. And its launch, a year or so ago, marked a consummation we had long devoutly desired. In this context, I must thank Governor Patterson for his extension to us of New York’s fabled hospitality. I also thank our Charter member and the foremost architect of this event, Congressman Rangel. His historical friendship for and indefatigable support, of our countries, is legendary. Indeed, it is principally due to him that we now have one of the first tangible results of this Conference on the Caribbean: the extension of the Caribbean Basin Trade Partnership preference until 2010.

I must enter a small caveat here though. I had great difficulty making the meeting because of cancellation of flights last night. Congressman Rangel’s powers, it seems – and contrary to what many of us thought – do not extend to control over the weather. I hasten to add, though that that’s Miami, not New York, weather.

Ladies and gentlemen, I want to address three main issues in treating with this topic of trade and foreign direct investment as spurs to growth and development in the Caribbean.

First, I want to tell you a little bit about what CARICOM countries are doing to redesign and refocus the regional economic structure in order to confront the changing global environment.

Next, I will say why we think the CARICOM region is positioning itself to offer a unique set of opportunities to investors, whose engagement with us will yield more than just monetary returns.

Then finally I will make the perhaps trite but still important point that progress in the Caribbean region not only promotes our own stability and security but is also in the best geopolitical interest of the Untied States.

In the context of point one, let me first deal with the CARICOM Single Market and Economy. The rapidly changing and increasingly competitive global economy has forced the countries of the Caribbean Community to revisit their strategies for securing their sustainable development. It is a truism that we in the Caribbean can no longer rely on one-way preferential access for our exports to traditional markets. We are also now recipients of declining volumes of official development assistance and face stiff competition as destinations for foreign direct investment.

One of the principal vehicles that the region has devised to keep pace with this changed global trade and economic environment is the CARICOM Single Market and Economy (CSME). The single market component of the CSME became operational in January 2006; and the Single Economy has begun to gather momentum, with the completion date set for 2015. This transformation of the regional economy into a single economic space is intended to facilitate the free movement of people, capital, goods and services and the right of establishment. The idea is clearly to foster greater intra-regional trade; but also to give us something like the critical mass necessary to make us more attractive to third states. That is because we fully recognize that creating a larger internal market is a necessary, but not a sufficient condition for the solution of the problems associated with small size and vulnerability.

In order to produce the great leap forward, CSME must also be fueled by foreign direct investment, by an influx of technical expertise and technology transfer; and by competitive access to external markets.

This brings me to my point two and my effort to demonstrate why we think investing
in the CARICOM region will now mean excellent business.

The US is, of course, the region’s most important trading partner. In 2007, CARICOM’s merchandise exports to the United States were recorded at approximately US$9 billion, and had seen an average annual growth rate of 17.6 per cent during the period 2003-2007. By comparison, CARICOM exports to the European Union (EU) and Canada, our other important trading partners, were in 2007 approximately US$3.2 billion and US$1.3 billion, respectively.

CARICOM has also recorded positive trade balances with the US over the last five years, ranging from US$1.4 billion in 2003 to approximately US$4.0 billion in 2007. It must be pointed out though that this positive balance recorded by the region in its trade with the US was essentially on account of exports, and especially petroleum exports, by Trinidad and Tobago.

In any event, the historical data clearly substantiates the already existing depth and scope of the US – CARICOM trade relations. But, CARICOM has also now taken steps to equip itself with the normative framework required for investment attraction. And this is what we hope will lead to an even more successful and diverse track record as an investment destination. Thus, we have conceptualized the Caribbean Community Investment Policy regime, which is currently evolving into a comprehensive framework for the attraction of private sector investment. Accordingly, there are proposals under consideration by Member States that are intended to provide for a harmonized investment policy framework. This will be operationalized by a CARICOM Investment Code and a CARICOM Financial Services Agreement. I am pleased to report today that these instruments will actually be ready for signature by Member States at the meeting of CARICOM Heads in the first week of next month.

The CARICOM Investment Code is intended to facilitate the marketing of the CARICOM region as a single investment location; and it will enhance transparency, fill information gaps, and facilitate the reduction of transaction costs. The CARICOM Financial Services Agreement addresses the need for efficiency in the regional cross border financial market, and is based on a harmonised regulatory philosophy. It is intended to facilitate the strategic positioning of the region’s financial services sector in the global environment.

The overall investment policy environment in CARICOM Member States, we therefore submit, is now to be considered highly facilitatory of business activity. And, we point out, this is on top of the fact that already nine CARICOM Member States rank within the first half of 178 countries evaluated (only 12 CARICOM States were included in the evaluation) by the World Bank for ease of doing business during 2006-2007. One of the smallest Member States - St Vincent and the Grenadines - was actually ranked as the number one performer regarding ‘dealing with licenses’.

It is against the backdrop of all we are doing, and have already done, to spur trade and foreign direct investment, that I make the final point of this presentation. Our efforts to secure an economically stable, prosperous and secure CARICOM is in the interest both of CARICOM and the United States. Economic growth, availability of jobs, a higher standard of living and increased purchasing power would translate into a higher demand for imports from the United States. It also consolidates a sphere of stability along your third border, and it promotes a secure environment for the thousands of American visitors that travel to the Caribbean every year.

This, then, is the overarching picture that allows me to close by inviting you to cement your role in this grand CARICOM undertaking. Invest in us. Help us promote stability and prosperity. Help us secure our neighbourhood. The pencil of God has no eraser and the laws of geography are immutable. That is why it behooves us all to remember that always and forever, our neighbourhood is also your neighbourhood.

I thank you.