DFID £5M TRUST FUND TO BOOST CARIBBEAN GROWTH

(CARICOM Secretariat, Turkeyen, Greater Georgetown, Guyana) The Department for International Development (DFID) of the Government of the United Kingdom has established a Trust Fund for £5 million at the Caribbean Development Bank (CDB) to assist the Caribbean Community (CARICOM) and the Caribbean Forum of African Caribbean and Pacific (ACP) States (CARIFORUM) to boost growth and reduce poverty through trade and regional integration.

The Caribbean Aid for Trade and Regional Integration Trust Fund (CARTFUND) was established in March 2009. The Trust Fund will be administered by the CDB and will be managed by a Steering Committee comprising representatives of DFID, the Caribbean Community (CARICOM) and CARIFORUM.

The Trust Fund forms part of the UK’s commitment to provide Aid for Trade funding to the Caribbean, as pledged by the Government of the United Kingdom at the October 2008 signing ceremony of the Economic Partnership Agreement (EPA) between CARIFORUM and the European Community (EC). It is also in line with the UK’s Regional Development Strategy for the Caribbean, which aims to increase economic growth and reduce the risks to growth caused by insecurity, disasters and climate change.

The CARTFUND targets more effective participation of CARICOM Member States in the CARICOM Single Market and Economy (CSME), and support for CARIFORUM’s implementation of international trade agreements such as the EPA, so that the region can reap the benefits. Member States of CARICOM and CARIFORUM, regional institutions, civil society organizations and private sector entities are all eligible to apply for financing under the Trust Fund in the areas of trade and regional integration.

The money may be used to deepen economic integration on several fronts such as completing the regime for the free movement of skills; completing legal and institutional policy for the implementation of the CSME; establishing a framework for macro economic and sectoral policy coordination; and deepening integration among the Organisation of Eastern Caribbean States (OECS).

With regard to the implementation of the EPA, the Fund’s resources may be used in areas such as work planning and implementation by CARIFORUM; fast-tracking necessary initiatives to support the implementation of commitments made under the EPA; and capacity-building to ensure that CARIFORUM is able to take advantage of the provisions and opportunities created by the EPA.