Gonsalves flags CARICOM inequities, suggests OECS may exit SME

St. Vincent and the Grenadines Prime Minister Dr. Ralph Gonsalves has taken over as chairman of the Organisation of Eastern Caribbean States (OECS), using the platform to highlight frustrations with the broader Caribbean Community (CARICOM).

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Echoing earlier comments by St. Lucia Opposition Leader Allen Chastanet, who suggested the OECS consider exiting CARICOM and negotiating bilateral deals, Gonsalves said the OECS “may well, most reluctantly by force of circumstances, have to put on the table the continued relevance of our participation in the CSME (CARICOM Single Market and Economy), while, of course, remaining in CARICOM until the inequities… are satisfied.”

Gonsalves, the longest-serving leader in the 15-member CARICOM, stressed that the OECS enjoys a deeper level of integration than CARICOM and overlaps with several regional bodies including the Association of Caribbean States and ALBA.

He lamented that CARICOM has yet to provide “a specific carve out for the OECS within its treaty arrangements” for special treatment beyond general provisions for disadvantaged regions.

Describing integration as an “organic” process where member strengths combine for collective benefit, Gonsalves warned that if decision-making is unequal, the integration entity risks becoming a burden rather than an advantage.

The prime minister criticized CARICOM trading arrangements that favor larger economies, particularly Trinidad and Tobago, citing a study that showed the OECS manufacturing sector is disadvantaged. He highlighted the protective “Article 164” provision that shields OECS flour production but warned this protection is time-limited and often contested.

He also condemned foreign exchange controls in Trinidad and Tobago that have drastically reduced St. Vincent’s agricultural exports, calling the situation “absolutely unfair and ridiculous.”

Gonsalves raised unresolved compensation issues from the 2009 collapse of Trinidad’s CLICO financial empire, noting $64 million remains unpaid to OECS policyholders, and urged the new Trinidad government to honor prior commitments.

He criticized Port-of-Spain’s control over OECS airspace, calling for urgent transparency and representation on the oversight body.

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Recalling positive past relations, Gonsalves praised the late Trinidadian leader Patrick Manning for supporting OECS countries through the CARICOM Development Fund but noted that Trinidad and Jamaica have recently resisted making their contributions.

Gonsalves said the OECS joined the CSME in 2003 “with our eyes wide open,” balancing special protections with opportunities for free movement and the value of belonging to CARICOM’s integrated community.

However, he suggested the OECS might have to consider exiting the CSME until inequalities are resolved.

“In any event, we are called upon to fortify evermore the OECS,” Gonsalves said. “Given our level of development and tightly drawn integration, there are immense possibilities ahead. We must be laser-focused and draw out the genius and hidden resources of our people.”

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