The Secretariat is pleased to introduce this Series of articles which focuses on raising the level of public education and stimulating interest and discussion on issues which are of significant importance to the process of deepening and strengthening regional integration in the OECS. The decision to establish an Economic Union was taken by OECS Heads of Government in July 2001.Now just over two years later, work has been initiated on the central issue of the creation of new Treaty arrangements to replace the Treaty of Basseterre which established the OECS on 18 th June 1981. This compilation is the first in a series of articles which we fully expect to enrich the discussions on the OECS sub-regional integration initiative.

The first publication in this Series is a welcome address to the Thirty-Eighth Meeting of the OECS Authority on 22nd January 2004 by Prime Minister, Dr. the Hon. Kenny Anthony of St. Lucia entitled “Transcending Critical Constraints”. In his address, Dr. Anthony draws reference to this period of uncertainty facing OECS countries as reflected in the current international climate, both political and economic, which continues to highlight our vulnerability. He points to the sound platform established for the development of OECS countries starting with the West Indies Associated States, followed by the Treaty of Basseterre in 1981. Prime Minister Anthony speaks to a number of key issues, for example, the need to reconfigure the Treaty of Basseterre; the need to balance sovereignty and efficiency while paying due attention to existing constitutional arrangements and political culture. The point is made, inter alia, that there is need to balance national sovereignty and distinctive differences among and between Member States, with the need to present a collective front, politically and economically, in dealing with third parties in the region and beyond. As Dr. Anthony concludes and correctly so, the situation is urgent.

The second publication is entitled “Towards Developing a Model of Governance for Economic Union in the OECS: A Case Study of the European Union”. This study was prepared by the Economic Union Project Unit, and presented to the 38 th Meeting of the Authority on 23 rd January 2004. Reference is drawn to the critical need for governance arrangements which facilitate implementation of Economic Union at the level of the OECS. A review is presented of the governance and institutional arrangements, in particular the decision-making elements of the European Union which enable supra nationalism to work. Very significant is the observation, that the ceding of certain sovereign rights to the European Community, with powers to act independently, enabled the EU to achieve in seven years what it had failed to achieve in thirty years.

As the paper indicates, the OECS has already begun the move to establish an effective architecture of supranationalism. This is reflected in the establishment of the Eastern Caribbean Central Bank, the Eastern Caribbean Supreme Court, the Directorate of Civil Aviation and joint diplomatic missions. The Bank and the Court are typically the crowning acts of the economic union process. The future strategy needs to speak to an empowered center, a shared/regional vision, public buy-in and binding commitment as reflected in a Treaty. Attention is drawn to a number of key issues which will need to be addressed, for example, the political, governance and institutional structures; the status of non-independent countries within the Union ; and the role of the Secretariat within that process.

The Treaty of Basseterre and OECS Economic Union, is the third publication in this introductory series. The study undertakes an analysis of the origins, rationale and nature of the Treaty, outlines the implications of Economic Union and makes recommendations for the establishment of an OECS Economic Union.

As pointed out, the Treaty of Basseterre (Articles 3.1 and 3.2) has as its core activity, foreign policy coordination and harmonization, although functional cooperation has also an important role. The Treaty incorporated the East Caribbean Common Market Agreement of 1968, established one year after the launch of WISA (West Indies Associated States Council) whose members were to constitute the membership of the OECS (1981). However establishment of the OECS did not result in renewed emphasis on implementation of the principles of the ECCM, and the Treaty did not speak to the matter of deeper union.

The implications of an economic union among OECS Member States are clearly outlined with the observation that while the Treaty of Basseterre contains features that bear similarity to the basic elements of an economic union, these features are not tailored specifically to achieving this goal. The way forward would require either amendment of the existing treaty or the drafting of a new one, both options of which are discussed. It is significant to note in this context, the decisions taken by Heads at the 38 th Meeting of the Authority to initiate the formulation of a new Treaty with Economic Union as its goal, and the process of constitutional reviews has now commenced.

Together these three documents can be viewed as the beginning of a public education initiative aimed at highlighting issues and stimulating discussion to positively impact the goal of the establishment of an Economic Union in the OECS.

ECONOMIC UNION ARTICLES

The Treaty Of Basseterre & OECS Economic Union Series EU 04.01 Address By Dr. The Hon. Kenny D. Anthony: Transcending Critical Constraints To The 38th Authority Meeting of the OECS, Castries , St. Lucia Series Eu 04.02 Towards Developing a Model of Governance for Economic Union in the OECS: A Case Study of the European Union Series EU 04.03