Lower air travel taxes, says Grenada PM Mitchell

The lowering or cutting of taxes on air travel has been suggested as one way to boost inter-Caribbean travel by the prime minister of Grenada.

A move like that could help close the gap between nations and increase integration, said Keith Mitchell.

The PM was speaking at the CARICOM summit, which his country was hosting in the capital, St George’s.

“It is widely chronicled about CARICOM that intra-regional trade is obstructed by non-tariff barriers which all affect our global competitiveness,” he said.

“Transportation is the lifeblood of our integration process. Domestic and intra-regional air travel, added to low service competition and high travel costs all culminate in the reality that Caribbean countries connect more easily to destinations outside of the region than to destinations within members states.”

Uncertain international stage

Mitchell has recently assumed his role as the new CARICOM chairman.

And he sees reduced air travel costs as key to an inward-looking region.

“It would represent a significant instalment to the regional integration account if heads would collectively agree to reduce airline ticket taxes as well as other fees which [are attached] to the cost of intra-regional air travel,” he said.

Another aspect of bringing nations closer is the introduction of the single ICT space, which Mitchell described as imperative to allow for improvement in the trade of goods and services, boosting communications.

The single ICT space is pitched as the digital layer of the CARICOM Single Market and Economy, one of CARICOM’s flagship programmes.

It encompasses the management of regional information, human resources, legislation and infrastructure.

Mitchell’s view of ever-closer union between states was backed by the president of Guyana, who highlighted uncertainties around CARICOM’s international relations.

“The community finds itself today in an international situation that is replete with uncertainty and complexity,” David Granger said.

“United States policy as a result of changes in administration is uncertain; UK policy or its resolve to exit the European Union is uncertain; EU policy after the expiration of the Cotonou agreement is uncertain; African Union policy within the African Caribbean and Pacific group will be driven by the continent’s collective interests, which are different from those of CARICOM; and Asian policy, as far as we are concerned, is uncertain.”