The purpose of the paper is to educate any reader of the reasons for the existence of the Caribbean Single Market and Economy (CSME) and the European Union (EU). A comparison of the two entities will be provided along with a closer look at trade and politics and its challenges. We will use secondary research to gather the information for the paper. This will include usage of the internet, journals, academic papers and text books.
Background on Caribbean Single Market and Economy (CSME)
CSME is the acronym for Caribbean Single Market and Economy. It is an economic system which is believed to simplify and assist the gathering of the region’s human, financial and natural resources in order to gain development and the economic force needed to combat and negotiate things such as mega trading blocs and globalization. Essentially as individuals it can be border line impossible to negotiate effectively but as a group, there would be more resources and representatives to help. The CSME came into existence in July 1989 at the tenth meeting of the Conference of the Heads of Government of the Caribbean Community. It was here that the Heads of Government perceived the idea to deepen economic integration and widen the mass of the Caribbean Community to better deal with the changing economic environment. These ideologies have already started with many bilateral agreements with other countries, such as Venezuela, Columbia and Cuba, to name a few, and also in the participation of multilateral and major trade negotiations, for example, the World Trade Organization.
The CSME was fully recognized in 1989, it can however be traced as far back as 1968. During that time there was the installation of the Caribbean Free Trade Area otherwise known as CARIFTA. CARIFTA’s power was minimal in that its only use was to eliminate tariffs and barriers which hindered the intraregional trading of goods. In 1973, integration took another step forward, this time...