The UK Department for International Development (DfID) has established a Trust Fund for 5 million pounds at the Caribbean Development Bank (CDB) to assist Caricom and Cariforum states to boost growth and reduce poverty through trade and regional integration.

In a press release the Caricom Secretariat said the Caribbean Aid for Trade and Regional Integration Trust Fund (Cartfund) was established in March. Cartfund will be administered by the CDB and will be managed by a Steering Committee comprising representatives of DfID, Caricom and Cariforum.

Cartfund forms part of the UK’s commitment to provide aid for trade funding to the Caribbean, as its government had pledged at the October 2008 signing ceremony of the Economic Partnership Agreement (EPA) between Cariforum and the European Community. It is also in keeping 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.

Cartfund targets more effective participation of Caricom 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. Caricom and Cariforum member states, regional institutions, civil society organizations and private sector entities are all eligible to apply for financing through the Fund and in the areas of trade and regional integration.

The release said 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 macroeconomic and sectoral policy coordination; and deepening integration among the Organisation of Eastern Caribbean States.

As regard the implementation of the EPA, Cartfund’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.