Parliament to debate OECS Economic Union law

The St Kitts and Nevis parliament will begin debating, on Tuesday, legislation giving effect to the Revised Treaty of Basseterre establishing the Organisation of Eastern Caribbean States (OECS) Economic Union.

The twin-island Federation signed the revised treaty in June last year and ratified it on January 21 this year.

Deputy prime minister and minister of foreign affairs, Sam Condor, will pilot the 57-page legislation which describes the Eastern Caribbean countries as "a prime example of what can be achieved when member states of an organisation such as the OECS merge to form a single entity with the express purpose of regional cooperation.

It notes that the theory of comparative advantage is the basis for economic integration and that participating countries in an economic integration can mutually benefit from international trade due to an increase in total input and a general increase in productivity.

"The goal is to increase competitiveness and total output among the countries involved so as to improve the welfare and quality of life of the people," said the explanatory notes to the legislation.

It noted that the global imperatives and challenges of the 21st century as well as domestic, social, economic and political conditions have caused leaders of the OECS to come to the realisation that in order for the subregion to become a meaningful player on the international scene, it is imperative to deepen and strengthen the economic integration process.

"OECS heads were convinced that the challenges being faced by vulnerable, heavily indebted, micro states, such as ours, would be better faced together as a stronger and more integrated group than individually.

"The process of functional co-operation through economic integration will help to reduce our vulnerabilities and increase our resilience to external impacts. The revised treaty addresses the new circumstances confronting the member states, especially as they relate to the weaknesses in implementing subregion wide policies by instituting legislative and executive procedures," it said.

The St Kitts and Nevis government said that economic integration is the process of removing barriers to trade between national markets in goods, services and factors of production, including capital and labour.

It notes that one important benefit of the economic union is the institution of free movement of people and labour among the member states.

"It is imperative that in this globalised interconnected economy, nationals of St Kitts and Nevis take advantage of the opportunities created by this further liberalisation of the labour market in the OECS.

"Our service providers can now sell their services throughout the OECS without being burdened with having to acquire a work permit. It should be noted that the economic union will give us access to a market of over 500,000 potential customers.