A Sustainable and Inclusive Trade Agenda for CARICOM

The policy brief argues that CARICOM lacks a cohesive trade strategy aligned with the global 'Sustainability and Inclusiveness' (S&I) agenda. It analyzes the region's economic vulnerabilities—including small market size, dependence on fossil fuels, and climate risk—and evaluates existing trade agreements like the Revised Treaty of Chaguaramas and the CARIFORUM-EU EPA. The authors recommend a regional approach that integrates trade with policies on energy, climate change, the blue economy, and food security, while increasing the participation of non-traditional stakeholders such as MSMEs and civil society.

• CARICOM economies face systemic vulnerabilities including small market sizes, geographic fragmentation, and a heavy reliance on fossil fuels, with oil imports accounting for nearly 13% of GDP.
• The region's share of global exports has seen a significant decline, falling from 0.6% in 1980 to 0.1% by 2019, driven by low economic growth and a lack of export diversification.
• Intraregional trade in the Caribbean remains limited, with a decrease from approximately 8% in the 1995–99 period to 7% in 2015–18.
• The European Union's Carbon Border Adjustment Mechanism (CBAM) is projected to make exports from Trinidad and Tobago less competitive due to increased production costs from carbon pricing.
• CARICOM's food security is challenged by a food import bill that reached $13.76 billion in 2018–20, which often undermines local agricultural production.
• The region's maritime sector is underdeveloped and costly, with freight costs estimated to be approximately 7% higher than the global average.
• Micro, Small, and Medium-Sized Enterprises (MSMEs) are critical to the economy, representing 70%–85% of Caribbean businesses and contributing 60%–70% of GDP, yet they lack a dedicated regional support policy.
• Tourism is a foundational economic pillar for the region, with some states like Antigua and Barbuda and St. Lucia seeing contributions of 83.3% and 59.8% of GDP respectively, though the sector has a high carbon footprint.
• The Revised Treaty of Chaguaramas (RTC) provides a robust legal framework for integration, but the CARICOM Single Market and Economy (CSME) remains incomplete.
• The authors recommend establishing a focal point system to integrate non-traditional stakeholders, including academia, small farmers, and civil society, into the trade policy process.

APA

Remy, J. Y., & Wilson, P.-G. F. (2024). A Sustainable and Inclusive Trade Agenda for CARICOM. Forum on Trade, Environment, & the SDGs. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-SRC-Policy-Brief-A-Sustainable-and-Inclusive-Trade-Agenda-for-CARICOM.pdf?dm=1736420546

Chicago

Remy, Jan Yves, and Peta-Gay Facey Wilson. A Sustainable and Inclusive Trade Agenda for CARICOM. Forum on Trade, Environment, & the SDGs, 2024. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-SRC-Policy-Brief-A-Sustainable-and-Inclusive-Trade-Agenda-for-CARICOM.pdf?dm=1736420546.

Wikipedia

{{cite report |last1=Remy |first1=Jan Yves |last2=Wilson |first2=Peta-Gay Facey |title=A Sustainable and Inclusive Trade Agenda for CARICOM |publisher=Forum on Trade, Environment, & the SDGs |date=December 2024 |url=https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-SRC-Policy-Brief-A-Sustainable-and-Inclusive-Trade-Agenda-for-CARICOM.pdf?dm=1736420546 |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{remy2024sustainable, author = {Remy, Jan Yves and Wilson, Peta-Gay Facey}, title = {{A Sustainable and Inclusive Trade Agenda for CARICOM}}, institution = {Forum on Trade, Environment, \& the SDGs}, year = {2024}, month = dec, url = {https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-SRC-Policy-Brief-A-Sustainable-and-Inclusive-Trade-Agenda-for-CARICOM.pdf?dm=1736420546}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }