Update Country Report Curaçao 29 Jun 2018

Event

Curaçao and Aruba are exploring the possibility of joining Sint Maarten's constitutional court.

Analysis

This development would would allow the three countries to pool technical expertise and reinforce a momentum towards closer co-operation between the countries as they continue to evolve their institutions following independence from the Netherlands in 2010. Neither Curaçao nor Aruba currently have a constitutional court but Sint Maarten established one in 2010, shortly after becoming independent from the Netherlands. The court rules on Sint Maarten-specific legislation, although it does not have jurisdiction over Netherlands legislation that applies in Sint Maarten. Curaçao, which is leading the overture, could either set up its own court or join Sint Maarten's. The latter option would be more cost effective for the two countries and would also allow them to share legal expertise. No date has yet been set for Curaçao's potential accession and further discussions are likely, especially if Aruba decided to join the court as well.

By the time Curaçao joins the court, its jurisdictional scope may have expanded, if current proposals are approved. Sarah Wescot-Williams, a member of Sint Maarten's governing coalition, stated in late May that the government is considering broadening the court's remit. At present, it rules on Sint Maarten legislation but under the new proposals it would rule on political-administrative disputes between government institutions. In addition, it could rule on decisions regarding the calling of elections, or when a government should resign or dissolve parliament.

This expanded scope could help to increase political clarity in Sint Maarten. For example, court rulings could help to reduce prolonged periods of political uncertainty, as followed the collapse of the government in late 2017, which led to a lengthy period before new elections were held and a government was formed. This expanded scope could be similarly useful for Curaçao, which has also experienced prolonged periods of electoral uncertainty in the past.

Impact on the forecast

Curaçao and Aruba are likely to join Sint Maarten's constitutional court, which supports our forecast for ever-closer co-operation among the Dutch Caribbean countries. This will enhance judicial resources for all three islands and help to increase judicial certainty for potential investors.