Caribbean states need more time to eliminate tariffs says Caricom

Sunday, February 15, 2004

LONDON, England: During the recent meeting of the FTAA Trade Negotiation Committee in Mexico, members of the Caribbean economic community argued that more time will be needed for some small, tariff-dependent states to reorganise their tax systems, reports Tax-News.

"CARICOM was looking more not at elimination of tariffs but liberalization over a period of time," observed Hillary Deveaux, chair of the Services Group on FTAA, according to the Nassau Guardian. "They couldn't see how it was very pragmatic to require these small economies whose reliance on import duties for government revenues were so important." 

One suggestion which arose from the Mexico meeting was the application of four possible timeframes over which the Caricom members would phase out their tariff systems, ranging from immediate removal of tariffs to elimination over a five to ten year period. 

However, it was felt by Caricom countries that even a ten year transitional period may be too short a time span to wean themselves away from vital tariff revenues, and a longer lead-in period is thought necessary for these states as they consider alternative sources of tax revenues. 

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