Harnessing the Caribbean’s External Trade Partnerships: Opportunities and Challenges

In a dynamic, rapidly liberalising and fiercely competitive international environment, Caribbean Community (CARICOM) countries see the pooling of their national efforts through the Caribbean Single Market and Economy as a central plank for overcoming their numerous constraints and advancing their economic growth and sustainable development. However, to succeed in the often challenging and fiercely competitive international setting, strategic and supportive external partnerships are vital. The region has therefore been exploring new relationships while it seeks to strengthen and deepen those that have existed for some time, to ensure that they make the intended contribution to helping the region achieve its goals.

Caribbean countries are pursuing their trade and investment relations with their established partners while also expanding economic relations with hemispheric partners and other emerging global players. The shifting global trade landscape, however, has implications for the region and for its trade and economic policy.

This discussion paper undertakes a preliminary exploration of some of the initiatives and relationships, both new and long-standing, that have an impact on the region’s trade and economic performance. These include the European Union and its economic partnership agreement with the Caribbean Forum, the USA (Caribbean Basin Initiative) and Canada (CARICOM–Canada free trade area negotiations). It will also look at the shifting global trade landscape, including the emergence of mega regional trade areas such as the proposed Transatlantic Trade and Investment Partnership Agreement.