Caribbean Community (Movement of Factors) Act 2026

The Caribbean Community (Movement of Factors) Act 2026 is a pivotal legislative instrument enacted by the Parliament of Dominica on February 23, 2026. This Act gives domestic legal effect to the core pillars of the CARICOM Single Market and Economy (CSME) as outlined in the Revised Treaty of Chaguaramas. Specifically, the legislation codifies the rights of CARICOM nationals to establish businesses, provide services, and move capital into and within Dominica without discriminatory barriers. By removing administrative and legal obstacles, the Act catalyses regional economic integration, fostering a more dynamic and competitive business environment for both local and regional entrepreneurs.

Legislative Context and Purpose

The “factors of production”, labor, capital, and enterprise, are the building blocks of any economy. Within the context of CARICOM, the free movement of these factors is essential to creating a single, seamless economic space. Prior to the passage of this Act, many of these rights existed in principle under international treaties but faced practical “on-the-ground” hurdles in national jurisdictions.

The Movement of Factors Act 2026 was introduced to:

• Advance Integration: Align Dominica with the CARICOM Enhanced Protocol on Free Movement, which seeks full unrestricted mobility for nationals of participating states.
• Remove Barriers: Abolish outdated administrative practices that previously hindered regional professionals and investors from operating in Dominica.
• Stimulate Innovation: Allow for the faster deployment of regional expertise to address local skill gaps and stimulate enterprise creation.

Key Rights Conferred Under the Act

The Act explicitly grants CARICOM nationals three fundamental economic rights within Dominica, provided they are exercising these rights for gainful purposes.

1. The Right of Establishment

This right allows a CARICOM national to move to Dominica to engage in non-wage-earning activities. This includes:

• Self-Employment: Starting a professional practice or artisanal trade.
• Enterprise Creation: Setting up and managing companies, branches, or subsidiaries.
• Equal Treatment: The Act mandates that these nationals be treated no less favorably than Dominican citizens regarding the acquisition of property or the management of their business.

2. The Right to Provide Services

The Act facilitates the cross-border supply of services. A service provider from another Member State can supply services in Dominica in four ways (modes):

• Cross-border supply: From the territory of one Member State into Dominica.
• Consumption abroad: A Dominican resident traveling to another Member State to use a service.
• Commercial presence: Setting up an office in Dominica.
• Movement of natural persons: A specialist traveling to Dominica temporarily to fulfill a contract.

3. The Right to Move Capital

To support investment, the Act prohibits new restrictions and mandates the removal of existing ones on the movement of capital. This includes the transfer of equity, dividends, and interest, as well as the repatriation of proceeds from the sale of assets.

Safeguards and National Interest

While the Act promotes openness, it includes “Safeguard Measures” to protect Dominica’s economic stability. The Minister for Foreign Affairs and International Business is empowered to adopt temporary restrictions in specific circumstances:

• Balance-of-Payments Challenges: If the nation faces serious external financial difficulties.
• Sectoral Hardship: If a specific industry in Dominica faces severe economic hardship due to regional competition.
• Public Interest: The Minister may determine that certain sensitive industries require the exclusion or restriction of the right of establishment to preserve the public good.

Portability and Contingent Rights

The 2026 Act works in tandem with the Enhanced Cooperation Chapter of the Revised Treaty. Nationals from participating countries (currently Barbados, Belize, Dominica, and St. Vincent and the Grenadines) enjoy:

• Indefinite Stay: The removal of the previous six-month stay limit for non-economic travel.
• Access to Services: Spouses and dependents of established professionals gain access to primary and secondary education and emergency healthcare in Dominica.
• Qualification Recognition: The Act outlines mechanisms for the transferability and recognition of professional qualifications across the region.