PORT-OF-SPAIN, Trinidad, CMC:A regional trade specialist says he supports the application for the Dominican Republic to join the Caribbean Community (CARICOM) on the grounds that the current regional market is simply unsustainable.

"We need to welcome them on board," said Dr Anthony Gonsalves, in response to the recent application by the government in Santo Domingo to join the 15-member grouping.

Gonsalves accepts that such a move would cause some conflicts, but suggests that it would serve to enhance CARICOM in the long run.

On the wider issue of trade within the grouping, Gonsalves argued that it would be difficult, if not impossible, to build a sustainable market given the 'hard facts', which are that the majority of the region's skilled labour and investment do not come from within CARICOM.

In Trinidad's case, Gonsalves estimated that labour from outside was perhaps three times greater than that coming from inside the region.

investment from outside

"Similarly, investment from outside is much greater than what comes from CARICOM," Gonsalves said.

However, he said he was not overly concerned about the implications for the CARICOM Single Market and Economy (CSME) since he believed the region needed to build a CSME that would reconcile itself with the international economy.

In this regard, Gonsalves made specific reference to the Economic Partnership Agreement (EPA) that was recently signed between Europe and CARIFORUM countries — CARICOM and the Dominican Republic.

"We have to design a CSME that is compatible with the EPA," he said.

"I don't see a fundamental conflict with what we are doing in the CSME and what we are doing in the EPA," he said, explaining that "whatever we grant to the EPA, then we have to grant to ourselves".

external trade policy

Gonsalves further argued that CARICOM integration was driven by outside forces and that the opening up of trade to Europe had been a positive thing.

"As Europe integrates, the Caribbean will integrate," he said, pointing out that in this new era of trade, external trade policy would evolve.

Currently on the table are pro-posals for new free-trade agreements with Canada and the United States.

But Gonsalves said while he did not anticipate that there would be a problem in reaching an agreement with Canada, the same may not be the case with the United States.

He said the region must look beyond the Caribbean Basin Initiative that provided for one-way free trade with Washington.

"Jump high, jump low, the CBI will no longer be viable," Gonsalves warned, while urging the region to make the necessary adjustments to take advantage of new opportunities in the arena of trade.