PM Spencer joined other leaders at the OECS Meeting in Anguilla including Chief Minister Flemming of Anguilla, Minister of Foreign Affairs of Dominica Charles Savrin and Director General of the OECS Dr. Len Ishmael View photo »

The 42nd Meeting of Heads of Government of the OECS opened on Monday at the Malliouhana Hotel, Meads Bay in Anguilla following the Official Opening Ceremony yesterday which heard addresses from Director General of the Authority Dr. Len Ismael, Chief Minister Osmond Flemming of Anguilla and Acting Chairman Prime Minister Dr. Kenny Anthony.

During the first working session today, heads looked at the OECS economies in external trade negotiations in an effort to formulate ways to deal with the challenges of WTO regulations on international trade and transactions.

During the discussions it was pointed out that countries within the OECS need to move quickly to reform its tax systems in order to maintain the stability of their fiscal performance.

Economies in the OECS rely heavily on revenue from international trade and transactions (import duties), more so from other duties and charges known as ODCs. In member states of the OECS, the ODC's comprise at the very least consumption tax and customs tax. The reliance on ODCs has become a problem, given that they are deemed as illegal under WTO regulations.

For Antigua and Barbuda, if the consumption tax and customs tax are successfully challenged in the WTO it could mean the country loosing 86 percent of its Revenue stream.

During the discussions Prime Minister Spencer announced that his country is in the process of reforming its tax structure and is examining the possibility of the introduction of a sales tax (ABST). The heads agreed that introducing a sales tax or VAT are viable options available to protect their revenue stream.

The heads today also looked at the draft OECS Economic Union Treaty and received a progress report on the work of the Regional Coordinating Mechanism for the HIV/AIDS Project.

Tomorrow the Heads will commence their working session in Caucus where they are expected to look at financial matters relating to the Authority, the Regional Development Fund for the CSME, an MOU with Trinidad and Tobago, Petro Caribe, the Regional Security System, Cruise Ship updates and the issue surrounding Bird Rock.

Digital photos by Maurice F. Merchant