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Associate Membership in the Caribbean Community

Committee chairman Nelson Bascome
CHAPTER 2 - Alliances in an Interdependent World 7Why We Need An Alliance 7CHAPTER 3 - Public Consultation 10Comments from other CARICOM Associate Members 12CHAPTER 4 - The Case for Associate Membership & Government's Proposal 13The Case for Associate Membership 13

26 July 2002

CONTENTS Page

CHAPTER 1 - Introduction 4

What is CARICOM? 4

CARICOM Committee 5

CHAPTER 2 - Alliances in an Interdependent World 7

Why We Need An Alliance 7

Why CARICOM? 7

CHAPTER 3 - Public Consultation 10

Town Hall Meetings 10

Comments from other CARICOM Associate Members 12

CHAPTER 4 - The Case for Associate Membership & Government's Proposal 13

The Case for Associate Membership 13

What it means 14

Conclusion 14

1.1 In the 2001 Speech from the Throne, the Government

promised to produce a paper setting out its views

on Associate Membership status in the Caribbean Community

(CARICOM) for debate in the House of Assembly.

This paper meets that commitment. The following

pages include information on the Caribbean Community,

Associate Membership, functional cooperation and

the results of the public consultation exercise carried

out by the CARICOM Committee. This paper puts the

case for enhancing Bermuda's current Observer status to

Associate Membership and provides the basis for an

informed debate.

What is CARICOM?

1.2 CARICOM is an organization of 15 states and territories

committed to working together for the common

good. Its founding Treaty is the 1973 Treaty of Chaguaramas.

The mission of CARICOM is to provide dynamic

leadership and service in partnership with community

institutions and groups,working towards the attainment

of a viable, internationally competitive and sustainable

community with improved quality of life for all.

1.3 CARICOM is not a political union and its member

states retain their national identity and sovereignty.

1.4 CARICOM's beginnings date back almost 50 years.

In 1958, the Commonwealth countries of the Caribbean

tried to establish a unit of integration similar to the European

Economic Community (now EU) by creating the

West Indies Federation. This Federation was drawn from

10 member islands, formed under the auspices of the

British and supported by the Canadians. Common services

for the region, like the University of the West Indies

and Regional Shipping Services,were established. However,

nationalistic tendencies hampered integration

efforts and as a result, four years later, in 1962, the West

Indies Federation came to an end.

1.5 In mid 1962, Caribbean nations again came together

to decide on the management of the common services

that had been established and determine the best way

to strengthen those areas of cooperation that existed. In

the years that followed, Caribbean Heads of Government

continued to meet to forge some form of regional integration.

In 1965, the Caribbean Free Trade Association

(CARIFTA) was established.

1.6 In the early 1970s, two factors gave the Caribbean

countries renewed impetus for regional integration.

Firstly, the prospect of Britain's joining the European

Economic Community reminded the islands of their vulnerability

to any disruption of their preferential trading

ties with Britain. Secondly, economists at the University

of the West Indies advised that the creation of a Free

Trade Area alone would not secure the full benefits of

regional integration.

1.7 Consequently, in 1973 CARIFTA members signed

the Treaty of Chaguaramas to establish the Caribbean

Community (CARICOM). The Treaty of Chaguaramas,

revised many times over the years, still governs the operations

of CARICOM.

1.8 CARICOM has three essential activities:

(1) Economic integration based on a regional

Single Market and Economy.

(2) Coordination of foreign and defence policies.

(3) Functional cooperation in culture, education,

health, labour relations, tourism, drug control

and security, transportation and youth and

sports.

1.9 There are three levels of CARICOM association -

(i) Full Membership;

(ii) Associate Membership; and

(iii) Observer status.

Presently, there are fifteen (15) countries with Full

Membership in CARICOM: Antigua and Barbuda,

Barbados,The Bahamas, Belize, Dominica, Grenada,

Guyana, Haiti, Jamaica, Montserrat, St. Kitts and

Nevis, St. Lucia, St. Vincent and the Grenadines,

Suriname, and Trinidad and Tobago.

Four (4) U.K. Overseas Territories enjoy Associate

Membership: Anguilla, British Virgin Islands, Turks

and Caicos Islands, and Cayman Islands.

A dozen other countries (primarily South American

and non-Commonwealth Caribbean states) and

organisations have Observer status.

1.10 Associate Membership - Article 231 of the Treaty

of Chaguaramas allows the Conference to grant Associate

Membership in the community, on such terms and

conditions as are agreed, to any state or territory.

1.11 Associate Members cannot vote, but may attend

and speak at CARICOM meetings.

Because Bermuda is joining under the terms of

functional co-operation [1.8(3)], the organ with

which most interaction will occur is the Council

for Human and Social Development; and to a lesser

degree, the Heads of Government and Conference

of Ministers.

1.12 Associate Membership is negotiated with the Conference

by each applicant state on terms that are mutually

beneficial. Associate Membership on the terms proposed

by the Bermuda Government involves participation

only in the area of functional co-operation.

1.13 Functional Co-operation - CARICOM countries

coordinate efforts in many non-economic areas, so that

members benefit from joint activities. This saves each

country from "reinventing the wheel" or needlessly

duplicating services provided elsewhere in the region.

Under the CARICOM structure, such co-operation takes

place in many areas, including meteorological services

and hurricane preparedness; health and nutrition services;

education and job training; law enforcement; cultural

programmes; labour, and industrial relations; science and

technology; and harmonizing laws and legal systems.

This cooperation has been successful in improving services

to the members (especially the smaller ones) and in

lowering the costs of activities through joint ventures.

The University of the West Indies is an example of successful

functional cooperation with campuses in several

different Caribbean countries.

1.14 It is in this area of functional co-operation that the

Bermuda Government sees most scope for benefit to be

derived.

CARICOM Committee

1.15 In August 2001, the Premier established a CARICOM

Committee under the chairmanship of the Honourable

Nelson Bascome, JP, MP, to investigate Associate

Membership status and to provide information to the

public.

Committee members include: Dr. the Hon. Ewart

Brown,JP,MP, (Deputy Chairman),the Hon.Derrick

Burgess, MP, the Hon. Dale Butler, JP, MP, the Hon

Ottiwell Simmons, JP,MP,Mr.Glen Blakeney, Mr Delroy

O'Brien, and Mr. Gary Phillips.

1.16 This Committee has worked diligently to investigate

the benefits and costs of Associate Membership.

They gathered a great deal of information on the background,

mission, structure, goals and objectives of CARICOM,

and, more importantly, they held Town Hall Meetings

in the Eastern,Western and Central Parishes to provide

this information to the public.The Committee also

met with various stakeholders in the private sector, to

both disseminate information and listen to the issues and

concerns that organisations and businesses had regarding

proposed Associate Membership in CARICOM.

1.17 To get an insider's view of CARICOM, the Committee

consulted with current Associate Members to learn

about their experience.

1.18 As a result of their research, the Committee developed

a clear understanding of what CARICOM is and

what it is not, what it can offer and which of its offerings

could benefit Bermuda.

1.19 The Committee has concluded that Associate Membership

in CARICOM under the terms of functional cooperation

will be beneficial to Bermuda.

1.20 The Government wishes to express its gratitude to

the members of the CARICOM Committee for their hard

work, for the consultative process which they followed

and for the information gained from their research -

which forms the basis of this discussion document.

2.1 When the idea of Associate Membership in CARICOM

was first raised commentators and members of the

public asked two important questions:

"Why does Bermuda need more alliances?" and

"Why an alliance with CARICOM?"

This chapter addresses these questions and argues that

the status quo is not the best option for Bermuda in an

increasingly interdependent world.

Why We Need An Alliance

2.2 It's fine to brag that Bermuda is the second most

isolated island in the world - but the reality is that no

country can afford to remain isolated. Like most other

jurisdictions, Bermuda has become ever more tightly

bound to other countries through the process of globalisation,

i.e. the development of economic and social

interdependence between nations. Indeed, much of

Bermuda's recent economic success has been made possible

through the integration of world markets and the

ability of businesses to trade across borders. In a world

that is ever more closely bound, it is important that jurisdictions

work together, learn from each other's experience,

and share good practice for their mutual benefit.

This is particularly the case for a small, isolated island

jurisdiction like Bermuda.

2.3 As a result of this growing interdependence, countries'

economic and political strategies have generally

changed from bilateral relations to multi-lateral relations.

The Western Hemisphere alone has 26 multi-lateral

agreements including the North American Free Trade

Agreement and the European Union.Thirty-four leaders

have agreed to the formation of a Free Trade Area in the

Americas by 2005. Similarly, in the East, there is the Association

of South East Asian Nations (ASEAN).

2.4 While Bermuda's economic links with the larger

world are well established and reflect the equality of

Bermuda's position with the UK, the US, Europe and

Asia; the same is not true in the area of human and social

development. Outside of economic relationships,

Bermuda has no links with any other countries.

2.5 In order to continue to prosper and not be left

behind, Bermuda needs to consider its regional links and

embrace the positive aspects of globalisation. Small

jurisdictions, in particular, must forge effective alliances

in order to ensure that their voices are heard on the

world stage.

Why CARICOM?

2.6 Strengthening links with the Caribbean makes

sense for Bermuda because the Island shares many historical

and informal links with the region. We also share

many similarities and through our Observer status we

have sampled the benefits available in CARICOM.

2.7 Bermuda's links to the Caribbean extend deep into

our society. Within CARICOM, Bermuda has enjoyed

membership in Caribbean organizations as varied as the

Caribbean Tourism Organisation and the Caribbean Football

Union. Through links such as these, Bermuda has

learned the value of regional cooperation and benefited

from the exchange of information and ideas.

2.8 Similarities in size and in the issues and problems

faced by Bermuda and Caribbean island countries mean

that Bermudian policy-makers could learn from the

experiences of their Caribbean counterparts; learning

what policies work, and, more importantly, which ones

do not. The Caribbean Community have graciously

allowed Bermuda, in spite of our Observer status, to

establish many unofficial links; as a result, the people of

Bermuda have benefited in the fields of health, culture,

security, labour and safety.

These links include:

• The Pan American Health Organization and the

World Health Organization, both organs of the

United Nations.

CHAPTER 2 - Alliances in an Interdependent World

• Most global organisations place Bermuda in

the Caribbean region, therefore, the Health

Department and the Ministry of Health and Family

Services already work closely (but unofficially)

with the Caribbean Epidemiology Centre. This

organisation develops protocols for various diseases

like HIV and Smallpox and provides surveillance

reports.

• Bermuda's Emergency Measures Organization also

liaises with The Caribbean Disaster Emergency

Response Agency (CDERA). Another partnership

which allows Bermuda to benefit from the experience

of our Caribbean neighbours.

• The Commonwealth Parliamentary Association,

like the UK Government, also places

Bermuda in the Caribbean region.

• The Departments of Culture and Community

Affairs have participated in CARIFESTA, the

Caribbean Festival of Creative Arts, for the past several

years.

• Bermuda's Commissioner of Police is a member of

the Association of Caribbean Commissioners of

Police.

• The Department of Labour participates in regional

labour conferences as a member of the International

Labour Organisation; which body also

places Bermuda in the Caribbean Region.

Other Caribbean connections include links to the:

• Caribbean Congress of Labour;

• Caribbean Employers' Council;

• Caribbean Public Services Association;

• Caribbean Hotel Association;

• Caribbean Tourism Organisation;

• Caribbean Cyclist Association;

• Caribbean Equestrian Federation;

• Caribbean Dart Association;

• Caribbean Netball Association;

• Caribbean Football Union;

• Central American & Caribbean Swimming Federation;

• Pan American Softball Association;

• Pan American Hockey Association;

• Pan American Union of Karate Associations; and

• West Indies Cricket Board of Control.

A Common History

2.9 Partnerships with the Caribbean island countries

are beneficial because of the common history that

Bermuda, as a British Overseas Territory, shares with the

English-speaking nations of the region. As is the case

with many Caribbean countries, Bermuda's laws, customs

and government have their roots in the English

legal system and the Westminster model of government.

2.10 There are many other similarities…between the

educational systems of Caribbean island countries and

Bermuda. Over the years, the Caribbean has provided

Bermuda with many of the educators who have had a

major impact on shaping the lives of Bermudian students

for many generations and, therefore, the direction

of the community.

2.11 In addition to these functional links, our many similarities

and common history, Bermuda also carries links

to the Caribbean in the ancestral roots of our people.

Ancestors of the majority of Bermudians came from the

Caribbean, including the Turks and Caicos Islands, Barbados,

St. Kitts and Nevis, Jamaica, and Antigua. This migration

of people was in both directions, with Bermudians

also colonising several islands including The Bahamas,St.

Lucia, and Turks and Caicos.

Business Links

2.12 Bermuda's trading connections with the Caribbean

began centuries ago with Bermudian sailors journeying

there to trade goods. It grew even stronger during the

period of salt trade in the Turks and Caicos. Nowadays,

many Bermudian firms have a presence in the Caribbean

region, or partnerships with Caribbean businesses.

2.13 The complex network of connections between

Bermuda and the Caribbean demonstrate Bermuda's cultural,

historical, social and economic links to the region.

2.14 Bermuda Business Connections include the following:

• the Bermuda Employers' Council is a member of

the Caribbean Employers'Association;

• the Bermuda Hotel Association is a member of the

Caribbean Hotel Association;

• Astwood Dickinson were until recently the Bermuda

agents for Columbian Emeralds, a Caribbeanbased

company;

• the Bank of Butterfield has offices in the Cayman

Islands;

• until recently, the Bank of Bermuda also had offices

in the Cayman Islands;

• Colonial Insurance operates in the Bahamas;

• Gibbons company also has long-established business

interests in the Bahamas;

• Island Press has a subsidiary, Global Directories,

which publishes directories in 12 Caribbean

islands, including Cayman Islands, Anguilla and

Antigua and Barbuda;

• Bermuda Electric Light Company is a member of

the Caribbean Electric Utility Services Corporation

(CARILEC); and

• Law firms Appleby, Spurling and Kempe and Conyers,

Dill and Pearman both have offices, or affiliates,

in the Caribbean region.

2.15 Bermuda already benefits from strong links with

the United Kingdom, the United States, and Canada. Formalising

a link to the Caribbean region would complement

these predominantly Northern links and introduce

a broader geographical and cultural perspective, thereby

providing greater balance to Bermuda's international

relationships.

2.16 The need and potential for a strong regional bond

is so compelling that all but the most isolationist (or anti-

Caribbean) Bermudian will recognise the benefit of

strengthening this strategically important relationship.

Town Hall Meetings

3.1 In an effort both to give information to the public

about CARICOM and to listen to the views and concerns

of Bermuda's citizens, the Bermuda CARICOM Committee

held three Town Hall Meetings. One each in St.

George's for the Eastern Parishes, Hamilton for the Central

Parishes, and Sandy's for the Western Parishes.Attendees

at the Town Hall Meetings were encouraged to

freely express their views.There was also a public forum

at the Bermuda College, jointly sponsored by the Bermuda

College and the West Indian Association.

At the Town Hall Meetings, four main areas were

addressed:

• Bermuda's Reality;

• Bermuda/Caribbean Connections;

• CARICOM; and

• Associate Membership in CARICOM.

3.2 Meetings were also offered to three groups of specific

stakeholders - business representatives, the unions,

and sporting associations. Stakeholder meetings were

attended by the Bermuda Employers' Council, Bermuda

International Business Association, Bermuda Chamber of

Commerce, Bermuda Union of Teachers, and Bermuda

Public Services Union. A stakeholder meeting was also

held with the following sporting associations: Bermuda

Softball Association, Bermuda Football Association,

Bermuda Squash Association, Bermuda Boxing Association,

Bermuda Netball Association, and Bermuda Track

and Field Association. In addition, the views of the public

who called in to the radio talk shows were noted.

3.3 Concerns raised fell into a relatively small number

of categories. These are set out below with the Government's

response:

Membership will be costly and attendance at meetings

will require a big increase in international travel.

Bermuda's annual joining fee has been determined

as one percent of the CARICOM Secretariat's annual

budget. That figure is currently Eastern

Caribbean $26,771,000. Bermuda's contribution

would therefore be Eastern Caribbean $267,710 or

about US$99,000. The Government believes this is

a very modest contribution and represents good

value for the benefits that will flow from Associate

Membership.

The costs associated with travel to conferences

and other meetings will not differ substantially

from current costs, as Bermuda already attends

many of the meetings as an Observer. Each Government

Ministry has a budgetary allocation for

attendance at overseas conferences and meetings

and it is not anticipated that there will be any significant

additional expense.

Government's decision to join was a "done deal",

so why bother consulting?

Although the Government's desire to build

stronger links to the Caribbean has been well

known for some time, there was no "done deal"

with regard to CARICOM. The Premier consistently

made it clear that Bermuda would only join if the

terms and conditions were acceptable and the

costs were not excessive.

In order for the Government to open talks with

CARICOM regarding the terms and conditions of

Associate Membership, the process required that

Government first seek UK approval and then make

a provisional application. This provisional application

was accepted by the CARICOM Conference at

its February 2002 meeting.

While the Government believes that Associate

Membership in CARICOM is the right way forward,

the decision will be made after the issue is debated

and voted on in the House of Assembly.

Government should focus on local issues first

before worrying about CARICOM.

Not only has the Government focused on local

issues first, but the benefits derived from Associate

Membership will help the Government to further

address local issues. Rather than "neglecting

local issues" Bermuda will benefit from exposure

to best practice and the experience of island countries

facing similar issues.

CARICOM has been criticised for being slow and

ineffective.

Without a specific example as the basis for this

criticism, Government can only note that international

organisations sometimes do work slowly,

but this does not mean that they are ineffective.

The European Union and the United Nations are

two such organisations that take time to reach consensual

decisions. No-one would deny that these

organisations serve a useful purpose for their

members.

CARICOM interferes in local politics.

CARICOM is not a political union and its member

states retain their national identity and sovereignty.

CARICOM does not interfere in local politics. The

record is clear that incidents of alleged interference

concerned cases where CARICOM was invited

in to countries to ensure that the democratic

process was adhered to in the electoral proceedings.

Bermuda is not in the Caribbean region.

Whilst it is true that Bermuda is geographically

located in the middle of the Atlantic, we have a

great deal in common with the English-speaking

Caribbean islands. They are the nearest jurisdictions

which share similarities in terms of size,

economy, culture and history. In addition, Bermuda

is already linked with the Caribbean region by

most global organisations.

Bermuda's reputation will be damaged by closer

association with Caribbean countries.

This view presupposes that the Caribbean countries

(as a region) have a bad world reputation.

This view is countered by the associations listed in

paragraph 2.14. Surely, the local businesses listed

would not be doing business in the Caribbean if

concerns about its reputation are correct.

Bermuda will be subject to large numbers of immigrant

workers competing for local jobs.

Bermuda has not agreed to any provisions for the

free flow of labour. The immigration and work permit

policies introduced by Government to protect

Bermudians in the job market will remain in force.

Associate Membership on the terms agreed by

Government will be on the basis of functional cooperation

only.

The CARICOM countries will benefit more from

Bermuda's Associate Membership than Bermuda.

Both CARICOM countries and Bermuda will benefit.

Government is proud to be able to share its

experience, best practice and success stories

where applicable. It is right for Bermuda to help

where we can whilst also benefiting. Bermuda

should seize the additional business opportunities

which a closer relationship with the Caribbean

countries will offer.

Bermuda can have all the benefits without paying;

we already get most of them from Observer status.

This is not true. It is only through Associate Membership

that Bermuda will be able to take part in

functional co-operation programmes that it cannot

currently join. Through Associate Membership,

Bermuda will also be able to participate in programmes

that receive assistance from international

donors.

It is true that Bermuda has been able to attend and

learn from conferences and other CARICOM meetings

through its Observer status for a number of

years without making any financial contribution to

CARICOM. The Government believes that it is right

for Bermuda, as a relatively wealthy jurisdiction, to

pay its way and participate officially.

Comments from CARICOM Associate Members

3.4 The CARICOM Committee also contacted senior

officials in two current Associate Member states, (i.e. the

Governments of Anguilla and the Turks and Caicos

Islands), and their statements were as follows:

Anguilla - The Permanent Secretary in the Chief

Minister's Office stated that Associate Membership

of CARICOM represented good value for money.

Anguilla has found it is easier to get technical assistance,

to share in regional programmes, and experienced

increased international influence.

Turks and Caicos (TCI) - The Permanent Secretary

in the Chief Minister's Office said that as a

British Overseas Territory the Turks and Caicos

Islands were not involved in the Single Market and

Economy.The TCI Government felt that the cost of

joining was small in relation to the benefits and TCI

enjoyed participation in political discussion, trade

debates, health and education as a result of their

associate membership.

The Cayman Islands - in addition, the Cayman

Islands Government was contacted, because it has

recently completed negotiating terms and conditions

similar to those of Bermuda's proposed Associate

Membership. The Cayman Legislature debated

and approved a motion to support acceptance

of the offer of Associate Membership within CARICOM.

The motion included the statement, "Whereas

the Cayman Islands' participation in the regional

sub-grouping of CARICOM will provide the

greater benefit of deepening co-operation thereby

strengthening the collective ability of the region to

influence the international approaches taken to

resolve such global issues as international taxation

and money laundering which directly affect Cayman's

economic viability."

4.1 The Government, through the invaluable work of

the CARICOM Committee, has completed the fact-finding

task. It has analysed the data and considered the

options related to Associate Membership in CARICOM.

The Case for Associate Membership

4.2 Bermuda currently has Observer Status in CARICOM,

and as an Observer cannot formally participate in

CARICOM programmes. For a number of years Government

Ministries and Departments, as well as private

organisations have been attending CARICOM conferences

and meetings. Associate Membership on the basis

of functional co-operation in CARICOM would allow

Bermuda to participate fully in activities it has been

monitoring for years.

4.3 Consider:

(i) shared programmes and resources on issues

of common concern;

(ii) joint efforts to find solutions to shared problems;

(iii) enhancement and underscoring of the historical

and cultural ties between Bermuda and

the Caribbean;

(iv) new opportunities for Bermudians and

Bermuda-based companies;

(v) enhanced links to South America, the United

Kingdom and the United States;

(vi) broader and more balanced international

relationships;

(vii) a voice in regional matters and, therefore,

greater leverage; and

(viii) excellent value for money with the benefit of

shared services.

4.5 Benefits to Bermuda include working with the

Council for Human and Social Development (COHSOD)

in the areas of:

• meteorological services;

• health;

• education;

• law enforcement;

• culture;

• sports;

• labour;

• science and technology;

• legal systems; and

• maritime issues.

4.6 The cost of Associate Membership represents

excellent value for money at $99,000 annually. This

amount (which is the same for the Cayman Islands, the

other Overseas Territory that joined this year) represents

one percent of the CARICOM Secretariat's annual budget.

4.7 The Bermuda CARICOM Committee could identify

no obvious downsides to Associate Membership in CARICOM

on the basis proposed by Government. Concerns

raised in public meetings and elsewhere related to areas

outside of the terms of Bermuda's intended participation.

4.8 Associate Membership on the basis of functional

co-operation does NOT involve Bermuda in:

• the Single Market and Economy;

• the free movement of labour. [Bermuda's new

work permit policies remain in place to protect

Bermudians and suitably qualified persons from

the Caribbean, like suitably qualified persons from

other countries, are welcome in accordance with

these policies];

• the Caribbean Court of Justice. [Bermuda is proud

of its links to the Judicial Committee of the Privy

Council];

• the area of foreign relations. [The United Kingdom

is responsible for Bermuda's foreign

relations. As a British Overseas Territory,

Bermuda required the permission of the

British Government in order to enter into

Associate Membership with CARICOM. The

Bermuda Government has sought and

received this permission in the form of a Letter

of Entrustment signed by the Minster for

Overseas Territories at the Foreign and Commonwealth

Office and tabled in the House of

Assembly with a Ministerial Statement advising

Members of this.]

What does this mean in practice?

4.9

• Drug interdiction is a regional problem requiring

cooperation and support from all

countries affected.

• Protecting our reefs and waters are also shared

issues. Similarly, pollution generated in one country

can affect the waters of others. Developing common

standards and protocols is in everyone's best

interest.

• Access to technical assistance from donor states

and international donor organisations. For example,

the United Nation's Economic Council for

Latin America and the Caribbean supports and

funds a project related to the collection and use of

social statistics.Bermuda could benefit from participation

in such a project.

• Associate Membership would also enable Bermuda,

when warranted, to benefit from other CARICOM

activities. For example, Bermuda will have

input when CARICOM is negotiating air links to

the region.

• As an Associate Member,Bermuda will have greater

leverage in negotiations with Caribbean universities

and technical colleges in seeking preferential

fees for Bermudians wishing to study in these

establishments.

• Sporting and cultural opportunities will increase.

For example, opportunities are being created for

CARICOM students to engage in cultural

exchanges with Mexico and Venezuela. Bermuda

students could also benefit from this arrangement.

In addition, Bermuda could benefit from funding

provided for the development of young sports persons.

4.10 There are also potential economic benefits as Associate

Membership may be a stimulus to economic activity

in those areas in which Bermuda excels, potentially

creating business opportunities for local companies.

There might also be expansion opportunities for local

businesses and for the Bermuda Stock Exchange.

Conclusion

4.11 The Government proposes, with the approval of

the House of Assembly, that the Premier formally finalise

arrangements for Bermuda's adoption into Associate

Membership of the Caribbean Community (CARICOM)

on the basis of functional co-operation as

approved in the UK Letter of Entrustment.