EU vs CARICOM And Its Future In The Caribbean – CARICOM vs The European Union

When comparing the European Union and the Caribbean Community (CARICOM), which of these regional unions do you believe is more effective in achieving its objectives and promoting unity among member states? 

The Caribbean Community, more commonly known as CARICOM, and the European Union, also known as the EU are two regional integration initiatives that have garnered significant attention and achieved varying degrees of success. 

While geographically and economically distinct, CARICOM and the EU share common goals of fostering economic cooperation, promoting regional development, and enhancing political integration. Yet, the EU has managed to see better success since the 1990s when compared to CARICOM. Why is that? In today’s video, we will highlight the similarities and differences between CARICOM and the EU, explore the pros and cons of integration processes, and discuss the future and if CARICOM would be able to emulate the success of the European Union.

About CARICOM

Before we get started, let’s first take a look at what exactly is the EU and CARICOM. Many may have a general understanding already of what is the EU. Comprising 27 member states located in Europe, the EU is a supranational political and economic union, intending to promote peace, stability, and prosperity among its members. The EU operates under a system of shared governance, where decisions are made collectively through a complex institutional framework. It has evolved from its origins as an economic union into a broader integration project encompassing various policy areas such as trade, agriculture, justice, and foreign affairs. 

A lesser-known integration project is the Caribbean Community, which has many of the same aims and principles as the EU. In contrast, CARICOM has 15 member states in the Caribbean region. Its primary objective is also to promote economic cooperation, social development, and political integration, with one of its core tenants to create a unified market known as the CARICOM Single Market and Economy (CSME), facilitating the free movement of goods, services, labor, and capital within the region. CARICOM also focuses on addressing common challenges such as climate change, natural disasters, and regional security issues.

Similarities

So as you can see, the Caribbean essentially already has a well-established union comparable to the EU. CARICOM is an older institution than the EU, as it was founded on 1st August 1973, whereas the EU was only founded in 1993, though there were similar EU institutions before. 

Both institutions have managed to achieve varying degrees of success on their core principles,  making them more similar than one may expect. For example, both CARICOM and the EU have achieved degrees of economic integration to enhance regional development and promote trade. They both have common markets means they impose few or no duties on trade with one another and a common tariff on trade with other countries, for certain goods. Have a customs union, whereby one common system of procedures, rules, and tariffs for all or almost all their imports, exports, and transit goods. 

In addition to economic integration, both regional blocs have embraced the principle of free movement of people, allowing citizens to travel, work, and reside within member states. The CARICOM Single Market and Economy, known as CSME, and the similar EU’s Schengen Agreement enable the free movement of people, which can help foster cultural exchange and facilitate labor mobility.

There has even been to some degree, a level of policy coordination between members in both the CARICOM and the EU. There are 19 CARICOM institutions, 4 functional cooperation institutions, and 6 associate institutions, each with its mandate and agenda to achieve the CARICOM vision. For example, One of the oldest institutions is the Caribbean Examination Council, known as CXC which is an institution every Caribbean knows too well. CXC’s mandate is to provide regional and internationally recognized secondary school leaving examinations relevant to the needs of the region; assist in Common Entrance and other types of examinations; produce teaching materials and train teachers to use the CXC syllabi, and advise regional governments on education.

Similarly, the EU also has seven institutions that develop and enforce policy. The most notable of these is the European Parliament, which is one of the legislative bodies of the European Union. Together with the Council of the European Union, it adopts European legislation, from which EU laws are established. There is also the European Central Bank which makes monetary policy for the Eurozone and the European Union, administers the foreign exchange reserves of EU member states, engages in foreign exchange operations, and defines the intermediate monetary objectives and key interest rate of the EU.

Differences

Despite these many similarities between the two unions, overall, some argue the EU has managed to be more successful with its objectives. These differing levels of success have also driven differences between the two unions. For example, the economic integration within the EU is much stronger than that in the Caribbean. The EU has more opportunities for tariff-free trading between members, more cross-country economic investment, and easier economic exchanges. This economic integration has been said to bring EU countries more in line with one another and pulled along the economic development of smaller and less developed economies. This has not translated to the Caribbean. CARICOM member states still exhibit significant economic disparities, with some countries being vastly more developed than others. Haiti for example, a CARICOM member state has a GDP per capita of US $1,829.59 whereas the Bahamas is US $27,478, 15 times bigger than Haiti.   

Another highlight is the political integration that the EU has managed to achieve when compared to CARICOM. The EU aims to achieve a supranational structure, meaning, that many laws are passed within the EU Parliament which is then applied to all member states, with the European Commission holding significant decision-making powers. CARICOM, on the other hand, has focused primarily on functional cooperation and intergovernmental decision-making, resulting in a more decentralized governance structure. In essence, CARICOM has a much smaller remit to implement policy when compared to the EU. 

There is even a difference in currency. The EU has successfully managed to implement a common currency, the Euro. While all EU member states do not use the EU, 20 out of the 27 countries in the EU use the Euro, making it much easier to exchange services and trade between each country. The collective power also of using a unified currency translates to international markets, giving the Euro more strength than any individual currency. CARICOM, however, has not yet achieved a full currency union, with many member states retaining their respective national currencies. The most common currency in the Caribbean is the EC dollar which is only used by 6 countries and 2 territories.

The question now is, Is It Worth CARICOM Becoming More Like The EU?

The process of regional integration, whether in the context of CARICOM or the EU, entails both costs and benefits that impact member states and the overall region. While some may see the success that the EU has experienced and be quick to state that the Caribbean should emulate the EU, there are some pros and cons to following the EU.

The Pros

Regional integration brings several advantages that promote cooperation, economic growth, and regional development. One of the key pros, which we highlighted earlier, is that it facilitates trade and market access. Integration removes barriers to trade, such as tariffs and quotas, among member states, creating a larger market and increased trade flows. This expands market opportunities for businesses, stimulates economic growth, and encourages specialization and efficiency. 

Moreover, this integration can lead to economies of scale, attracting foreign direct investment and enhancing the competitiveness of member states in the global marketplace. Additionally,  it can promote policy coordination and harmonization, creating a more coherent regulatory environment that reduces barriers and fosters political stability and peace.

The Cons

But while this integration offers numerous benefits, it also presents certain challenges and drawbacks that must be considered. One of the main cons is the potential loss of national sovereignty. As member states pool their decision-making powers, some degree of sovereignty is relinquished, which may lead to concerns about the ability to independently address national priorities. This has been a big challenge for the Caribbean, as many countries have been hesitant to become more integrated for fear of losing sovereignty in various areas such as judicially, economically, and politically. 

Additionally, integration requires significant financial resources for establishing and maintaining institutional frameworks, implementing policies, and addressing the costs of transitioning to a more integrated system. Resources that many countries in the region can not afford to support. 

Haiti for example, ranks 173 out of 184 in terms of GDP per capita, and is unable to support its institutions, much less regional ones. This is also not to mention that harmonizing regulations and standards can be complex and time-consuming, leading to administrative burdens and potential resistance from member states. 

So as you can see, while regional integration can bring benefits, understanding and assessing the costs and benefits of integration is crucial to gauge the overall impact and effectiveness of regional initiatives.

So, What is the Future of CARICOM?

So as you can see, the Caribbean has managed to achieve a relatively high level of success when it comes to regional integration. CARICOM members can travel to, live in and work in each other member countries, trade with each other, and even share political unity on the international stage. However, there is still a long way to go before it is comparable to the European Union, which has managed to integrate under a unified currency, judicial system, and a more interconnected economy. 

CARICOM will face several challenges in its future evolution. It must address economic disparities among member states, enhance the effectiveness of its decision-making processes, and deepen regional integration beyond functional cooperation to collective policy development. Efforts are underway to strengthen the CSME, promote innovation and entrepreneurship, and deepen cooperation in areas such as renewable energy, climate resilience, and tourism. So we can expect to see CARICOM become more institutionally sound, though it may be at a slow pace.

In addition to that, CARICOM’s most challenging path ahead is political willpower and the desire for integration. The EU faced similar pressures when the United Kingdom left the bloc in pursuit of its own sovereignty. CARICOM will also face these challenges as many countries over the years have pursued disparate agendas and have grown torn on many aspects of the region’s integration plans. 

So, CARICOM and the EU share similarities in their pursuit of economic integration, free movement of people, and policy coordination. However, they also exhibit differences in terms of economic disparities, political integration, and political will. The costs and benefits of integration are evident in both initiatives, offering opportunities for economic growth and cooperation. The future prospects of CARICOM, however, will hinge on its ability to address challenges, adapt to changing global dynamics, and deepen regional integration, ultimately achieving the collective goals of prosperity, stability, and unity.

“When comparing the European Union and the Caribbean Community (CARICOM), which regional union do you believe is more effective in achieving its objectives and promoting unity among member states? 

Are you of the opinion that the EU’s economic integration and political cooperation model is more successful, or do you think CARICOM’s focus on regional collaboration and shared development holds greater value? Share your insights, experiences, and perspectives in the comments below!

Thank you for joining us in this intriguing discussion! 

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References:

• caribbeannewsglobal
• caricom
• caricom
• worldometers
• european-union
• wikipedia