Update Country Report Curaçao 29 Aug 2017

Event

On August 21st the countries of the former Netherlands Antilles signed a Political Dialogue Act with the Dominican Republic, setting out the framework for greater economic co-operation among the Caribbean nations. The agreement will also create a series of working groups designed to focus on particular areas of trade and economic significance.

Analysis

The agreement, which followed the signing of a memorandum of understanding in 2016, was signed in Willemstad, Curaçao, by representatives from Curaçao, Sint Maarten, the Netherlands and the Dominican Republic. The agreement marks a move towards greater economic integration between the Dutch Caribbean and the Spanish-speaking Dominican Republic, which have traditionally experienced limited co-ordination. A visit by the president of the Dominican Republic, Danilo Medina, to the Antillean islands is tentatively scheduled for early 2018, and would likely be the occasion for the signature of further agreements arising out of the working groups.

Under the agreement, the parties will seek to work more closely together in areas of trade and economic co-operation, as well as to formalise mechanisms for high-level discussion of foreign policy and security issues. Much of the initial work will be focused on harmonising regulations among the Caribbean islands, in line with ongoing efforts within the region to reduce discrepancies that could hinder external and regional investment. In particular, the agreement aims to standardise aviation regulations, reflecting the importance of the tourism industry to the islands. This should facilitate greater intra-Caribbean tourism, both by residents and tourists on an island-hopping itinerary.

The meeting also included the accession of the Dominican Republic to the international Apostille Treaty, which specifies the means by which documents issued in one signatory country can be certified for use in others. This should make it easier to do business across the region by reducing the length of time taken to ratify documentation. A separate agreement allows for the transfer of prisoners between the islands, so that a national of one country convicted in another can serve their sentence in their country of origin.

Impact on the forecast

The agreement showcases the Dominican Republic's attempts at becoming a regional leader by strengthening its integration with its Caribbean neighbours. We maintain our forecast that Curaçao and Sint Maarten will continue to focus on regional integration by promoting co-operation on economic development, tourism and anti-money-laundering initiatives.