Caribbean Single Market and Economy (CSME)

The Caribbean Single Market and Economy (CSME) is an initiative currently being explored by the Caribbean Community and Common Market (CARICOM) that would integrate all of its member-states into a single economic unit. This would result in the elimination of all tariff barriers within the region. It is hoped that such an economic unification would resolve a number of issues faced by small developing CARICOM economies who find it difficult to compete with larger international competitors on a global market.

Since 1989 the Caribbean Heads of Government have agreed that an economic integration among Caribbean nations that is more advanced than the current common market is critical for the region to thrive with the increase in globalization. In 2006, the Caribbean Single Market and Economy (CSME) began its implementation process. However, the global financial crisis of 2008 resulted in a pause in the implementation. During that time member-states of CARICOM have been harmonizing their tax systems, regulatory environments and other general government policies.

When fully completed the CSME will succeed CARICOM and will allow for free intra-regional movement of capital and labor among member-states. Additionally, member-states will share monetary and fiscal policies, and businesses operating in the economic union will have access to a larger market. This will help to maximize the productive capacity of the nations of the Caribbean as well as help to diversify the range of markets in which goods and services will be traded.