By Svetlana Marshall

BUSINESS Minister Dominic Gaskin says there is need for increased trade diversification among Central America, the Caribbean and Mexico but warned that opportunities created must be accessible and beneficial to all factions of society.Minister Gaskin made the call as he addressed a meeting of representatives of the Latin American and Caribbean Economic System (CELAC) on “An Assessment of the Economic and Cooperation Relations of Central America, the Caribbean and Mexico” at the CARICOM (Caribbeam Community) Secretariat in Georgetown on Wednesday.

“Increased cooperation between two regional bodies – CARICOM and SICA (Central American Integration System) – and one regional economic powerhouse, Mexico, can certainly increase trade diversification among participating economies, and create opportunities for businesses across the globe,” Minister Gaskin said.

However, he said the ultimate beneficiaries must be the hundreds of millions of people who make up these regions.

“In strengthening the mechanism for cooperation, we must ensure that the opportunities created are accessible and beneficial to all sizes and at all levels so that diversification in its broadest sense can occur and we can reduce the inequalities that we know exist,” he added.

Zooming in on Guyana, the Business Minister said the two-day forum is being held at a critical time in the country’s history, explaining that the country’s achievement in the next 50 years will depend on the strengths of relations that have been forged.

The ongoing meeting is focusing on the Central America-Caribbean-Mexico circuit, which is being analyzed as it grew at an average of 2.10 per cent. However, investment flows as a percentage of GDP in SICA (21.13 per cent) were slightly lower than those registered in the rest of LAC and the CARICOM, 23.44 per cent and 25.85 per cent respectively.

Meanwhile, exports of goods and services of SICA increased at an average rate of 5.14 per cent during the period 2000-2013. It was pointed out, however, that at the beginning of this period only 3.28 per cent of SICA’s exports went to the rest of LAC, while in 2013 it increased to 10.69 per cent. In the case of CARICOM, exports to the rest of LAC rose from 6.23 per cent of total exports in 2000 to 25.47 per cent in 2013.

KEY BARRIERS
CARICOM Assistant Secretary-General Joseph Cox said that in order to achieve greater strides, key barriers must be removed. “Lack of direct or regular air and sea links pose a huge challenge for all cooperation,” Cox said, while contending that it negatively affects competitiveness on both sides.

Additionally, he said, there is need for the Private Sectors in Central America, the Caribbean and Mexico to understand the varying business climate and culture, in addition to the polices and laws governing trade on all sides. This move, Cox said, will reduce the time it takes to do business.

During this regional forum key areas of trade, investment and cooperation relations between Mexico and Central American and Caribbean countries are being addressed. Emphasis is being placed on relations with Central American nations with which it has negotiated a single Free Trade Agreement (FTA) that strengthen bilateral agreements it had established with such countries.