Caribbean Export OUTLOOK 3rd Edition

107

Clearing The Hurdles

and labour standards. These elements of the draft Code are in keeping with its objective of promoting investments that support sustainable development. Another important feature of the draft Code is its emphasis on investment promotion and facilitation. In this regard, the draft Code encourages measures that can lead to improvements in the investment climate, such as expediting the investment approval process and transparency of domestic measures affecting investments. The draft Code also encourages CARICOM governments to undertake cooperative efforts to promote and facilitate investment flows. In this regard, the Caribbean Association of Investment Promotion Agencies (CAIPA) merits recognition as it facilitates collaboration between the investment promotion agencies in the Region in the promotion of the Caribbean as an investment destination. Another noteworthy initiative is the draft Regional Investment Promotion Strategy (RIPS) which seeks to position the Region as an attractive investment destination through proactive promotion activities and initiatives to address cross-cutting investment climate issues in the Region. A third key component of the Code is its provision for the resolution of disputes between investors and host governments, as well as between CARICOM governments. Importantly, efforts at dispute prevention are contemplated and there is provision for disputing parties to settle disputes through consultations and negotiations. In the event that such efforts are unsuccessful, it is envisaged that the Code will provide for the choice of multiple fora for the binding resolution of disputes, including adjudication before the CCJ. The availability of the CCJ for the settlement of investment disputes arising under the Code would build on the access that Community nationals already have to the Court with respect to disputes concerning the exercise of their rights of establishment and to free movement of capital. Towards Conclusion of the Code Although the Caribbean region has a notable track record of generating FDI inflows, greater levels of private investment are required to address the challenges to the Region’s economic growth and development. The conclusion and implementation of the CARICOM Investment Code can contribute to a coherent image of the Community as an investment destination, as it is designed to institute a common regime for the protection, promotion and facilitation of investment in CARICOM. The Code is being elaborated by the Special Technical Team on Investment Policy, which is comprised of senior officials with experience in investment policy formulation and implementation from CARICOM countries and regional entities, such as the Organisation of Eastern Caribbean States Commission, the Eastern Caribbean Central Bank and CAIPA. The recommendations of

the Special Technical Team will be considered at the Ministerial level by the Council for Finance and Planning of CARICOM, which is responsible for the execution of a harmonized investment policy for the Community. The Legal Affairs Committee, which is comprised of Ministers of Legal Affairs and Attorneys-General of Members of CARICOM, will review the draft Code prior to its submission to the Conference of Heads of Government for adoption. These regional discussions on the Code should be informed by consultations at the national level involving relevant stakeholders from the public and private sector. There is growing consensus amongCARICOMcountries about the direction and core components of the Code. Therefore, Governments in the Region have an important window of opportunity to finalize this initiative which can bring CARICOM closer to realizing its ambition of being a single investment space.

Endnote The views expressed are solely the author's and do not necessarily represent those of CARICOM, its Secretariat or the staff of the Secretariat.