While some of the implications of the Treaty of Basseterre are already in effect there still remain a number of areas that need to be finalized in terms of logistics, before it comes into full effect in July of 2013.
The Treaty will create a single economic space of all the OECS countries and allow for the free movement of skills, goods and services, citizens and establishment. The Treaty also proposes that goods coming from countries outside the OECS be taxed upon entry into any OECS country and thereafter be exempt from any customs duties and other taxes when moved to any other OECS country.
Representative of the OECS Alicia Stephens, speaking at a symposium yesterday admitted that issues relating to the free movement of goods are of particular concern and that the variations in tariffs and customs duties from country to country currently provide an obstacle, but that the parties involved are working to find a solution that works for the entire OECS.
“The way that free circulation is expected to work is that once goods come into the common space from third countries, they should enjoy the same rights as good that originated within the common space which means they should see the removal of all physical, fiscal and technical barriers, including import duties. Once the goods satisfy entry requirements in one port they should be free to move within the space without having to satisfy entry requirements in any other port,” Stephens said.
It is yet unclear as to how this section of the Treaty will be administered as there are numerous schools of thought as to how to achieve this seamlessly, including flattening all customs duty, tariffs and VATs and distributing the revenue from that evenly among member states.
Stephens added, “We have not decided how that is going to happen. All customs unions have asked that question and its particularly pertinent for us and our heads are very concerned that the economic union should not have any negative implications for any of the countries.”
the point is there will be only one customs with the Economic Union and so the challenge arises how is this to be administered, including the distribution of the revenues collected from taxes and charges imposed on third-coutnry imports? There won’t be a St. Lucia Customs. a Dominican Customs, a Kittian Customs. etc. All the countries will constitute a Customs Union.
so wouldn’t u like to sell your product elsewhere or establish a branch for yr own advantage ie greater profits.a real deal with supply and demand.
a applaud the idea i really do, but i see this might be open for problem if a common tariff is not meet. cause if one country tariffs are less then another. what is to stop companies from importing their good tot hat country and then moving it around for free.
this may be an issue that need to be addressed.
the point is there will be only one customs with the Economic Union and so the challenge arises how is this to be administered, including the distribution of the revenues collected from taxes and charges imposed on third-coutnry imports? There won’t be a St. Lucia Customs. a Dominican Customs, a Kittian Customs. etc. All the countries will constitute a Customs Union.