PROTOCOL AMENDING THE TREATY ESTABLISHING
THE CARIBBEAN
COMMUNITY
(PROTOCOL VII: DISADVANTAGED
COUNTRIES, REGIONS AND SECTORS)
PREAMBLE
The Parties to the Treaty Establishing the Caribbean
Community (hereinafter called the
Member States),
Desirous that the deepening of the regional integration
process by the establishment of the CARICOM Single Market and Economy should
result in an improved standard of living for all nationals of the Caribbean
Community (hereinafter called the
Community);
Recognising that some Member States, particularly the
Less Developed Countries, are entering the CARICOM Single Market and Economy at
a disadvantage by reason of the size, structure and vulnerability of their
economies;
Recognising also that the operation of the CARICOM Single
Market and Economy will create dislocation in some countries, regions and
sectors within the Community;
Aware that persistence of disadvantage, however arising,
may impact adversely on economic and social cohesion in the Community;
Bearing in mind that with increased competition, both
regionally and internationally, economies and economic enterprises would need to
achieve enhanced levels of competitiveness;
Determined to establish effective measures, programmes
and mechanisms to assist disadvantaged countries, regions and sectors;
Conscious that disadvantaged countries, regions and
sectors will require a transitional period to facilitate adjustment to
competition in the CARICOM Single Market and Economy,
Have agreed as follows:
PART ONE: PRELIMINARY
ARTICLE I
Use of Terms
1. In this Protocol, unless
the context otherwise requires:
"Community" includes the CARICOM Single Market and Economy to be established by the
Protocols amending or replacing the Caribbean Common Market Annex to the
Treaty;
"Community Council
of Ministers" (hereinafter referred to as the
Community Council)
means the Organ of the Community so named in Article 6(1)(b) of the
Treaty;
"Community treatment"
means the access of goods which are of Community origin to the markets of
Member States without the application of import duties or quantitative
restrictions;
"Conference"
means the Conference of Heads of Government of the Community;
"Council for Finance
and Planning"
means the Organ of the Community so named in Article 6(2)(d) of the
Treaty;
"Council for Trade
and Economic Development" means the Organ of the Community so named in Article 6(2)(a) of the
Treaty;
"disadvantaged
countries" means:
(a) the Less Developed Countries within the
meaning of Article 3 of the Treaty; or
(b) Member States that may require special
support measures of a transitional or temporary nature by reason of:
(i)
impairment of resources resulting from
natural disasters; or
(ii) the adverse impact of the operation of
the CARICOM Single Market and Economy on their economies; or
(iii) temporary low levels of economic
development; or
(iv) being a Highly-Indebted Poor Country
designated as such by the competent inter-governmental
organisation.
"disadvantaged
regions" means:
(a) regions within Member States experiencing
economic dislocation from the operation of the CARICOM Single Market
and Economy; or
(b) regions that may require special support measures of a
transitional or temporary nature by reason of:
(i) impairment of resources resulting from
natural disasters; or
(ii) temporary low levels of economic
development;
"disadvantaged
sectors" means:
(a) sectors of the economies of Member States in
which economic enterprises experience dislocation from the operation
of the CARICOM Single Market and Economy; or
(b) sectors that may require special support
measures of a transitional or temporary nature by reason of natural
disasters, whereby the loss in the sector causes social and economic
disorder;
"economic
enterprises"
means economic enterprises within the meaning of Article 35a(5)(b) of the
Caribbean Common Market Annex to the Treaty, as amended by Protocol II;
"Secretary-General"
means the Secretary-General of the Community;
"Treaty" means the Treaty Establishing the Caribbean Community signed at
Chaguaramas on the 4th day of July 1973, and includes any amendments
thereto which take effect either provisionally or definitively
(hereinafter referred to as the "Treaty").
2. In this Protocol a reference to Protocol I is a reference
to the Protocol amending the Treaty and signed at Antigua and Barbuda on 19
February, 1997.
3. In this Protocol a reference to Protocol II is a reference
to the Protocol Amending the Treaty to provide for the Rights of Establishment,
Provision of Services and Movement of Capital.
ARTICLE II
Amendment
The provisions of this Protocol shall replace Chapter Seven
of the Caribbean Common Market Annex to the Treaty and take effect as
hereinafter provided.
ARTICLE III
Replace Article 51 with the following:
Article 51: Scope of Application
1. The provisions of this Protocol shall have effect for the
purpose of establishing a regime for disadvantaged countries, regions or sectors
within the framework of the Treaty as well as a special regime for the Less
Developed Countries in order to enhance their prospects for successful
competition within the Community, and redress, to the extent possible, any
negative impact of the establishment of the CSME.
2. As soon as practicable after the entry into force or
provisional application of this Protocol, as the case may be, the Conference
shall, on the recommendation of the Community Council and in accordance with
Article 1, designate disadvantaged countries, regions and sectors and may, from
time to time, make such further designation or terminate such designation as
circumstances warrant.
3. Wherever in this Treaty reference is made to disadvantaged
countries, regions and sectors or to the Less Developed Countries, the Organs of
the Community shall take the measures required to give effect to the spirit and
intent of Protocol VII.
ARTICLE IV
Replace Article 52 with the following:
Article 52:
Objective of the Regimes
1. The objective of the regimes mentioned in Article 51 is to
assist the disadvantaged countries, regions and sectors towards becoming
economically viable and competitive by appropriate interventions of a
transitional or temporary nature.
2.
The interventions
referred to in paragraph 1 of this Article may include:
(a) technical and financial assistance to address
economic dislocation arising from the operation of the CARICOM
Single Market and Economy;
(b) special measures to attract investment and
industries;
(c) transitional or temporary arrangements to
ameliorate or arrest adverse economic and social impact arising from
the operation of the CARICOM Single Market and Economy;
(d) special measures to assist industries to
become efficient and competitive;
(e) assistance intended to achieve structural
diversification and infrastructural development;
(f) assistance to economic enterprises
disadvantaged by the removal of intraregional barriers;
(g) the establishment of mechanisms to monitor,
and assist in the discharge of, obligations assumed under the Treaty
and other international trade agreements.
ARTICLE V:
Replace Article 53 with the following:
Article 53:
Implementation of Measures
1. Subject to the authority of the Conference, the Council
for Trade and Economic Development (COTED) and the Council for Finance and
Planning (COFAP), as appropriate, shall establish, administer and monitor the
measures identified in Article IV of this Protocol.
ARTICLE VI
Add new Article to read as follows:
Article 54:
Review of Measures
1. The Community Council shall review, as appropriate, the
effectiveness of measures taken pursuant to this Protocol and take such action
as may be necessary to achieve the objective of the Protocol, and shall submit a
report thereon to the Conference.
2. The review shall include an examination of relevant
programmes and support measures in order to determine their efficacy as a basis
for their termination or modification as the case may be.
PART TWO: REGIME FOR DISADVANTAGED COUNTRIES,
REGIONS AND SECTORS
ARTICLE VII
Replace Article 54 with the following:
Article 55:
Measures to Redress Disadvantage Arising
from Economic Dislocation
1. Member States agree that where
economic dislocation arising from the operation of the CSME occurs, and
notwithstanding any provisions to the contrary in the Treaty, the COTED may, as
the case may require on a temporary basis and subject to Article V, adopt
effective measures to arrest or mitigate adverse effects on economic activity.
Such measures may include the grant of incentives to address the dislocation and
shall be without prejudice to any incentives provided for in Articles IV and XIV
of Protocol III (Protocol Amending the Treaty: Industrial Policy).
2. Notwithstanding any provisions
to the contrary in the Treaty, the measures mentioned in this Article may, where
necessary, provide for temporary derogations from rights and obligations set out
in the Treaty.
3. The COTED shall periodically examine the impact of the
measures mentioned in paragraph 2 with a view to determining their adequacy and
establishing a time-frame for their discontinuance.
4. Member States shall co-operate with the Community Organs
in implementing the measures mentioned in paragraph 2 of this Article and shall
take the action required to secure compliance therewith.
Article 56:
Promotion of Investment
The Council for Finance and Planning (COFAP) shall promote
investment in disadvantaged countries by, inter alia, facilitating:
(a) the establishment of joint ventures among
nationals of disadvantaged countries as well as between nationals of
disadvantaged countries and nationals of other Member States;
(b) the establishment of joint ventures between
nationals of disadvantaged countries and nationals of third
countries;
(c) investment for economic diversification
including diversification of the agricultural sector;
(d) research, development and the transfer of
technology in the development of disadvantaged countries; and
(e) capital flows from other Member States to
disadvantaged countries through the conclusion of double taxation
agreements and appropriate policy instruments.
ARTICLE IX
Replace Article 57 with the following:
Article 57:
Measures Relating to the Services Sector
1. The COTED, in establishing the programme for removal of
restrictions by Member States on the provision of services in the Community
mentioned in paragraph 2 of Article 36a of Protocol II shall give due
consideration to the peculiar economic vulnerability of disadvantaged countries,
bearing in mind Article 38c of Protocol II.
2. Without prejudice to the generality of the provisions set
out in paragraph 1 of this Article, the COTED shall, in establishing the said
programme, determine in respect of disadvantaged countries:
(a) a list of services in respect of which
national treatment may not be applied for a specified period of
time;
(b) the manner in which restrictions on services
not mentioned in sub-paragraph (a) of this paragraph shall be
removed:
Provided that such disadvantaged countries shall accord
Member States rights no more restrictive than those accorded to other parties of
the WTO under the General Agreement on Trade in Services (GATS).
ARTICLE X
Replace Article 58 with the following:
Article 58:
Measures Relating to the Right of Establishment
1. The COTED shall take appropriate measures to ensure that,
in establishing the programme for the removal of restrictions by Member States
on the right of establishment in the Community mentioned in paragraph 3 of
Article 35c of Protocol II, the peculiar economic vulnerability of disadvantaged
countries in the Community is taken into account, bearing in mind Article 38c of
Protocol II.
2. Without prejudice to the generality of the provisions of
paragraph 1 of this Article, the COTED shall, in establishing the said
programme, determine in respect of disadvantaged countries:
(a) a list of economic activities in respect of
which national treatment may not be accorded to persons exercising
the right of establishment for a specified period of time;
(b) the manner in which restrictions on the right
of establishment in respect of economic activities not mentioned in
sub-paragraph (a) of this paragraph shall be removed:
Provided that such disadvantaged countries shall accord to
Member States rights of establishment no more restrictive than those accorded to
third States.
ARTICLE XI
Insert new Article to read as follows:
Article 59: Safeguard Measures
1. Where, in accordance with this Treaty, a Member State
establishes an entitlement to limit imports of goods from other Member States
because:
(a) an industry or a particular sector of an
industry in the first-mentioned Member State experiences serious
difficulties due to a substantial decrease in internal demand for a
domestic product; and
(b) such decrease in internal demand for the
domestic product is due to an increase in imports consigned
from other Member States as a result of the
operation of the CARICOM Single Market and Economy,
Then in such a case the first-mentioned Member State, being a
disadvantaged country, and notwithstanding any other provisions to the contrary
in the Treaty, may limit such imports for a period of up to three (3) years
unless the COTED authorises the limitation for a longer period and take such
other measures as the COTED may authorise.
2. A disadvantaged country applying restrictions in
accordance with paragraph 1 of this Article shall notify them to the COTED, if
possible, before they come into force. The COTED may, at any time, consider
those restrictions and shall, in the light of such consideration, make
recommendations designed to moderate any damaging effect of such restrictions or
to assist the disadvantaged country to overcome its difficulties.
3. Nothing in this Treaty shall be construed as entitling any
Member State to apply safeguard measures against the products of Community
origin of a disadvantaged Member State where such products do not exceed 20 per
cent of the market of the importing Member State.
Continuation: Article XII
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