The Caribbean Community (CARICOM) has deplored the ongoing unilateral, arbitrary, and non-transparent blacklisting strategy employed by the European Union (EU) against CARICOM Member States.
CARICOM said the most recent inclusion of CARICOM States to the blacklist of alleged non-cooperative tax jurisdictions and jurisdictions identified as being deficient in the area of Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT), underscored the EU’s unwillingness to take into account the substantial progress made by CARICOM Member States at compliance with global standards.
Moreover, the unquestioned use of ratings from other international bodies as a determining factor in the decision to list a jurisdiction, along with the absence of meaningful prior consultation with the affected States, negated the spirit of partnership and multilateralism that has characterised the relationship between CARICOM and the EU.
Along with the unprecedented task of staging a post-COVID-19 economic recovery, these CARICOM States now have the added burden of being subjected to the EU’s discriminatory tactics disguised as tax policy and governance.
In a statement, CARICOM said, “Blacklisting severely affects the economic prospects of the listed states and the Community, in general, at a time when all of our Members are already faced with the disproportionate impact of the COVID-19 pandemic.”
“This labelling causes significant reputational risk, erodes our competitive advantage, and discourages the investment that CARICOM States desperately need to drive inclusive growth and build economic resilience.”
CARICOM calls upon the European Union to desist from this harmful practice of blacklisting small states, and instead pursue a mutually collaborative engagement towards our shared goals of effective tax governance and combatting money laundering and terrorism financing.