Tag: Caribbean

  • US Tariff Wars: What possible impact for the Caribbean?

    US Tariff Wars: What possible impact for the Caribbean?

    Alicia Nicholls

    What a time to be an international trade analyst! That was my first thought after reading the latest memorandum dated February 1, 2025, announcing sweeping tariffs on America’s three biggest trading partners—Canada, Mexico, and China. Well-known for using tariffs as a tool for geopolitical ends, President Donald J. Trump is justifying these latest measures as part of a national emergency he declared against illegal immigration and drug trafficking under the International Emergency Economic Powers Act (IEEPA). This Act, signed in 1977, allows the President broad powers to regulate commerce after declaring a national emergency.

    These aggressive trade moves, the latest in Trump’s America First Trade Policy 2.0, are in fulfillment of promises he made on the campaign trail and expand on his first-term tariffs on China (which President Biden largely maintained). In his first term he had also announced 25% tariffs on steel imports and 10% on aluminum imports from the European Union (EU), Canada and Mexico. Canada and Mexico are not just the US’ largest trading partners, but are its treaty partners under the U.S.-Mexico-Canada Agreement (USMCA), the agreement that replaced the North America Free Trade Agreement (NAFTA) during Trump’s first term and which is due for review in July 2026 under its review clause.

    What do these new tariffs involve?

    Yesterday, President Trump announced a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China, and has also vowed to increase these tariffs should these countries retaliate.

    This move will of course hurt those countries, affecting manufacturers and also jobs. But Trade 101 is that tariffs also mainly hurt consumers in the country imposing them – the US in this case! Billions of dollars in trade occurs among USMCA countries each year, with tightly interwoven supply chains, especially in the automobile, agriculture, textiles and other industries. Indeed, U.S. goods and services trade with USMCA totaled an estimated $1.8 trillion in 2022, according to the Office of the US Trade Representative (USTR). This means that many of the goods on American shelves come from these countries or were made with inputs sourced from these countries. Therefore, American manufacturers will pay higher costs for raw materials and intermediate goods sourced from these countries and higher business costs which they will likely pass on to consumers. The end result is that American shoppers and businesses will pay higher prices for everyday goods, an ironic state of affairs given that reducing these costs was said to be one of the reasons the American public voted for President Trump.

    For their part, both Canada and Mexico have announced retaliatory measures of their own yesterday. Outgoing Canadian Prime Minister, Justin Trudeau, announced in a press conference last evening a 25% tariff on 155 billion (Canadian dollars) of US goods, while Mexican President Claudia Sheinbaum indicated that Mexico will be implementing retaliatory measures as well.

    Trump has also again threatened to hit the EU with tariffs, and Colombia following a row over Colombia’s insistence that its deportees be returned with dignity. Trade wars among the world’s major powers threaten global economic stability, as the International Monetary Fund (IMF) warned in October last year, even before Donald Trump was re-elected but in the amidst of tariff threats he made on the campaign trail.

    They’ll Hit Caribbean Consumers too

    Caribbean manufacturers, which depend on US inputs, will likely face higher prices and business costs, while we end consumers might spend more for American-made food, cars, electronics and the like. However, there are ways in which we could seek to combat this to the best that we can. Caribbean manufacturers should, to the extent possible, continue to explore alternative suppliers to mitigate against these possible price hikes. This state of affairs also makes the case for more intra-Caribbean sourcing. After all, instead of sourcing so much of our fresh fruit from Florida, we could be sourcing these from within the region more.

    Final Thoughts

    Trump’s tariffs may be aimed at Canada, Mexico, and China, but the ripple effects will be felt far beyond in the possible form of higher prices and business costs, supply chain disruptions and economic uncertainty. Our jobs as trade analysts have never been more important as we help the Caribbean businesses and governments we advise to stay informed, and ready to adapt in an increasingly unpredictable global trade landscape.

    Alicia Nicholls, B.Sc., M.Sc., LL.B. is an international trade specialist and the founder of the Caribbean Trade Law Blog. Learn more about her work at http://www.caribbeantradelaw.com.

  • What Trump 2.0 Could Mean for the Caribbean Region

    What Trump 2.0 Could Mean for the Caribbean Region

    Rahym R. Augustin-Joseph (Mr.) (Guest Contributor)

    Rahym R. Augustin-Joseph

    On November 5th the Caribbean watched with bated breath, the outcome of the US Elections, knowing that the results of the global superpower, would have significant and decisive implications for the future of the Caribbean, because of America’s tremendous influence and leadership in global multilateralism. Of course, the common refrain is that ‘if America coughs, the Caribbean catches the cold.’

    Notwithstanding, both the candidates lacking any particular and comprehensive plans for our region particularly in the trafficking of illegal firearms which is causing havoc in our streets, the Caribbean watched with a keen eye.

    But, as it was clear that Donald Trump had won the US Presidency, for the second time, Caribbean leaders such as Prime Minister Mia Mottley, Andrew Holness, Philip J. Pierre, Philip Davis and others, posted their congratulations, in signs of diplomacy, most noting that their countries remain committed to strengthening the close and enduring friendship and partnership with the US. The diplomatic niceties however could not obfuscate the questions they have, and the Caribbean people have about what it would mean for us and the stability or instability of the global international order.

    As such, what will Trump 2.0 mean for the Caribbean?

    Climate Change

    While we don’t know for certain what policies the Trump administration will pursue internally on climate change in light of increased climate-related disasters across the US, and the fact that the Inflation Reduction Act has continued to pour over $390 billion into EVs, and other climate resilient technologies, which have created millions of jobs and other benefits to Republican affiliated states. These may all disappear if he repeals sections of the Act. However, If this has impacts during the midterm elections, he may not be as keen to repeal.

    But his global actions will have disastrous impacts for the Caribbean, particularly since he has promised to withdraw the US again from the Paris Agreement, and possibly to withdraw from the United Nations Framework Convention on Climate Change (UNFCCC), which is the multilateral framework for the reduction of carbon dioxide (CO2) in the world, and which also provides financial and technical assistance for developing countries like the Caribbean to mitigate climate change through a shift to renewable energy, and to adapt to its impacts and respond to the loss and damage it creates.

    When these are coupled with his denial of the existence of climate change as a ‘hoax’, and his intention to ‘drill baby bill’ and ‘frack, frack, frack’, like never before,  increasing the fossil fuel stock of the US, which some have suggested would not only roll back the gains by President Joe Biden, but contribute an estimated 4 billion tons of additional CO2 emissions by 2030 and 25 billion tons by 2050, then these increases would significantly increase the vulnerability of the Caribbean to extreme weather events, more ferocious hurricanes, devastating droughts and floods, and deadly heatwaves, which can continue to plummet our GDPs, increase poverty, destroy infrastructure and roll back any gains made in our climate recovery processes.

    As we know, our Caribbean countries are low-lying and heavily exposed to rising sea levels, which erodes coastlines, and displaces populations and industries. Any withdrawal from the Paris Agreement, which is meant to reduce greenhouse gases (GHGs), will increase the emissions of these gases, thereby exacerbating the climate crisis and affecting our ability to protect lives and livelihoods. Of course, it is a no brainer that with warmer ocean temperatures that increase the intensity and ferocity of our hurricanes, the US exit will increase the levels of financial and technical support needed to bolster the climate recovery effort. Such an exit is even more egregious when you add the fact that the US, together with the other developed countries, are the ones that have created this existential climate crisis. The Caribbean may unfortunately be in for some hotter months, longer droughts and more devastating floods.

    What is needed now is not an increase in GHGs, which fuels the extreme weather patterns, which Trump promises, but a radical decarbonization of the US and other global economies. Caribbean leaders should therefore be prepared to dialogue with the President on these critical issues, but also to engage other European counterparts to step up and not bend over backwards to try and mould the climate regime around the vagaries of the US political currents.

    These countries, together with China, must now play leading roles in reducing the climate crisis. This is not to suggest however that when the US exits, the climate movement is ‘trumped’, but it is only morally appropriate that due to their overwhelming historical and current contributions to global GHGs, that the US contribute towards reducing the effects on developing countries. Additionally, they must meet their financial obligation, not just to the USD 100 billion per annum that was promised from 2020 by developed countries, but to a higher New Collective Quantified Goal (NCQG) on Climate Finance, which was one of the UNFCCC’s Twenty-Ninth Conference of the Parties (COP 29) outcomes held in Baku, Azerbaijan. It is one thing to withdraw from the Paris Agreement, like Trump did during his first presidency, but it is another thing entirely to commit to increasing greenhouse gas emissions by expanding oil and gas exploration, given the severe impacts that Caribbean and other SIDS are already experiencing from the climate crisis.

    Immigration

    Trump’s immigration policy, according to him would see the largest domestic deportation operation in human history of millions of illegal immigrants.

    For the Caribbean, and Haiti in particular, this is troubling, because Trump’s inward-looking policies will devastatingly affect all who flee from war, climate crises, strife, political upheavals and the collapse of their states in search for a better life or the American dream, which has sustained the economic prosperity of America. This use of excessive force against already vulnerable and marginalised populations is testament of Trump’s disregard for human dignity and rights.

    Of course, it is easy for us to sit in comfort and say that ‘they should enter legally now or that they should return to their countries.’ That is a privileged position as our countries are not facing the life-threatening issues that Haiti and others do, requiring individuals to flee, as a condition of survival. Who feels it knows it!

    But have we for one moment, considered that it is also a global responsibility to ensure integration of displaced peoples, in tandem with our humanitarian and civil rights requirements, particularly in circumstances where the US has also contributed towards this destabilisation and has an opportunity to cure these wrongs? At least in Haiti’s case for certain. But, Trump may only compound the problem, making the work of the Expert Group more difficult, if he refuses to assist, but also if he increases his Haitian animus. Remember his eating the animals’ comments, and how they were poisoning the blood of America, ignoring the diversity of America.

    What is even more certain is that Trump may not provide support for the improvement of the Haitian state, such that migration is an option, and not a necessity.

    It will also now become almost impossible to gain a legal path to citizenship, as even those who have become citizens by marrying an American citizen or their child is a ‘dreamer’ are at risk of deportation, thereby further decreasing their quality of lives causing migration issues for the Caribbean.

    The implications for the Caribbean are a general sentiment of fear of migration and lack of belonging as they search for a better life, and a concomitant fear by those who voted for ‘closed borders’ of all who are not of the blood of America i.e., also Caribbean peoples. But, more directly, if there are Caribbean peoples who are ‘illegal immigrants’, working and providing remittances to their families back home, one can potentially see a massive reduction in the country’s remittances income, which contribute towards healthcare, education among other areas. The reduction will exacerbate poverty, which has wider economic impacts for the Caribbean economy. Further, there may be deeper fiscal and political strains on other Caribbean countries which would not be able to handle this sudden migration flows.

    Already, there are reports in mainstream media which suggests that certain Caribbean countries such as the Commonwealth of Bahamas, Turks and Caicos and Grenada have all denied the Trump’s transition teams proposals to deport migrants to these third countries, recognising the inability and difficulty to deport them to their home states. These countries have probably already made an analysis of the political, fiscal and ‘security’ constraints of this proposal and determined that their country is unable to handle this influx. But, even without a determination by these Caribbean leaders, there are international human rights considerations which should have been assessed prior to such requests being made. But this request and its attendant failure necessitates a rethinking of this policy position to deal with the immigration issues in a manner which is respectful to international human rights norms and laws, which ensures human dignity and protection.

    One would have to continue to follow these developments to see the extent to which this American off-shoot of the ‘British Rwandan scheme’ which met its demise in the courts and with the election of Sir Keir Stramer would extend to other parts of the world. It would be interesting to see where next will President Elect Trump turn to house the ‘deportees’ and what the American people who have voted for such immigration policies believe of the early indications of this policy failure?

    But, these issues of immigration should never be divorced from the underlying race relations, which as a region whose population is predominantly black should still be of concern to the Caribbean, particularly as President Trump in his last term was apathetic in his condemnation of these incidents which sparked the BLM and is ignorant and tone-deaf to institutionalised racism in the United States.

    The Caribbean region as a whole through their political leaders need to engage the President on the abovementioned.

    Foreign Aid

    In Trump 2.0, particularly with his isolationist ‘America First’ philosophy, there may be less pushback to aid cuts as there were in Trump 1.0, and it could mean that key developmental programmes and agencies within the Caribbean could receive less funding, particularly in areas that are not favourable to the Trump administration. It means that the Caribbean should now utilise the opportunity to continue forging new relationships with new nations, as opposed to confining itself to looking North.

    Trade

    As Trump seeks to reduce the US trade deficit, ensuring manufacturing jobs stay within the US, and ensure a baseline global tariff for imports, it has the potential to affect Caribbean exports to the US, making it more difficult through stricter trade regulations. Should there also be a modification of the Caribbean Basin Initiative (CBI), which provides certain duty-free access to the US market, in favour of US production, it could also reduce the competitive advantage of Caribbean goods in US markets. But, recognising the large trade deficit with the US, the Caribbean poses no real threat to US jobs, and its beneficial nature to US industry might prove helpful to its continuation.

    Global Peace and Solidarity

    In global peace and solidarity, the wide cross section of people in the Caribbean, in addition to Caribbean leaders have echoed their Pro-Palestine support as noted through protests and online commentary, that there should be a two-state solution in which the two peoples can coexist. However, both the Biden-Harris Administration and now President Trump, has declared their unwavering support for Israel and their Prime Minister Netanyahu. They have suggested that Israel has a right to defend itself under International Law, but ignored that, while true, the acts of retaliation must not go beyond proportional self-defence where the actions must be defensive rather than punitive.  In this case, these actions have gone beyond. As such, a Trump presidency would see the continued support of Netanyahu, which is at odds with the position of the Caribbean in the main. The implications therefore is that Caribbean countries must dialogue with the US and other countries, in order to echo an approach of Middle East peace. Of course, one does not have to explain the approach which will be taken to the Caribbean’s friend, Cuba with the continued embargo.

    In the end, Caribbean leaders and people should never see the election of Donald Trump as far removed from impacting the Caribbean region but heed the words of David Rudder, the Trinibagonian Calypsonian, when he said that “they’re trying to pass all laws to spoil our beauty, but in the end we shall prevail. We must take a side or be lost in the rubble, in a divided world that don’t need islands no more. Are we doomed forever to be at somebody’s mercy, little keys can open up mighty doors. Rally!”

    Rahym Augustin-Joseph is the 2025 Commonwealth Caribbean Rhodes Scholar. He is a recent political science graduate from the UWI Cave Hill Campus and an aspiring attorney-at-law. He can be reached via rahymrjoseph9@ gmail.com.

    Image by Barbara from Pixabay

  • Caribbean Hosting Global Supply Chain Forum & SIDS4 Summit

    Caribbean Hosting Global Supply Chain Forum & SIDS4 Summit

    Alicia Nicholls

    While cricket fans are glued to the upcoming International Cricket Council (ICC) Men’s T-20 World Cup, policy nerds like me have our sights set elsewhere. Over these next two weeks, the Caribbean will host two high-level international conferences gathering together delegates from across the world to discuss issues which are germane to Small Island Developing States (SIDS). In this piece, I discuss briefly what these two upcoming conferences and their themes mean for SIDS.

    Global Supply Chain Forum

    This week, May 21-24, the Government of Barbados will co-host with UN Trade & Development (formerly UNCTAD) the historic Global Supply Chain Forum. Its delegates from drawn from all over the world and include Heads of Government and other high-level political officials, experts, academics, practitioners and other stakeholders. Its high-level panels will encompass discussions on transport, logistics and trade facilitation for sustainable development.

    Issues around logistics and supply chains occupy significant importance for SIDS which due to their high dependence on international trade. Their small size, geographic isolation and climate-vulnerability also generate particular logistics and transportation challenges. As such, these panels will discuss, inter alia, practicable solutions for helping these countries better integrate into global supply chains, and to improve the sustainability, efficiency and resilience of their transportation and logistics networks.  

    Among the anticipated outcomes will be the adoption of the Barbados Ministerial Declaration on Sustainable and Resilient Transport and Logistics in SIDS which will be presented at the upcoming Fourth International Conference on Small Island Developing States (SIDS 4) conference.  

    SIDS4 Conference

    From May 27-30, Antigua & Barbuda will host the UN Fourth International Conference on SIDS (SIDS4) under the theme “Charting the Course Toward Resilient Prosperity”. In addition to the conference, there will be a number of side events, including the SIDS Global Business Network Forum 2024 immediately preceding the conference.

    In 1992, SIDS were declared a special case for environment and development at the UN Conference on Environment and Development. Barbados hosted the first Global SIDS conference in 1994. Subsequent SIDS conferences were held in Mauritius (2005) and Samoa (2014). As with each of these decennial conferences, the main outcome document will be a new Programme of Action for SIDS for the next ten years.

    Topics on the agenda include climate change, biodiversity loss, ocean conservation, disaster risk reduction, access to finance, debt sustainability, and the overall sustainable development of SIDS, according to the host government of Antigua & Barbuda. As such, yet again, the Caribbean will play a pivotal role in shaping the SIDS agenda for the next decade.

    Why it matters

    The Caribbean’s role in hosting these conferences brings both practical benefits in terms of tourism arrivals and spend, and international recognition. It places the region at the heart of global discussions and decision-making on issues crucial to SIDS, giving us a hand in crafting our fate. With the UN SDG deadline just six years away and climate challenges intensifying, these discussions are even more urgent now than ever.

    Exciting times await us! We at Caribbean Trade Law & Development will be in attendance at both and look forward to bringing you, our readers, updates from these two important events.

    Alicia Nicholls, B.Sc., M.Sc., LL.B. is an international trade consultant and founder of the Caribbean Trade Law & Development Blog www.caribbeantradelaw.com.

    Image by Pexels from Pixabay

  • CIC/CCI EVENT on Optimising the Canada-CARICOM Trade Relationship – June 29, 2023

    CIC/CCI EVENT on Optimising the Canada-CARICOM Trade Relationship – June 29, 2023

    Join the Canada International Council Latin America and Caribbean Study Group and the Canada Caribbean Institute for our “Optimizing the Canada CARICOM trade relationship” webinar on Thursday, June 29, 2023 at 10:00 am -1:00 pm (Eastern Standard Time). 

    The panels will feature Canadian and Caribbean exporters and investors outlining their experiences and lessons in the respective markets, the main trade promotion and facilitation agencies from the two sides and a discussion of the current “government to government” trade arrangements and whether these are appropriate going forward.

    DISCUSSION PROGRAMME

    Panel 1: Views from the Exporting Community

    Speakers:

    o Zaheer Mohammed, Importer
    o Vashti Guyadeen, Trinidad & Tobago Coalition of Services Industries
    o Justine Pierre, Dunn, Pierre Barnett Company
    o Craig Williams, Atlantic Canada Opportunities Agency

    Moderator: Mr. Dav-Ernan Kowlessar, Executive Chairman, DYKON Developments

    Panel 2: Trade, Investment and Development Programs

    Speakers:

    • Dr Damie Sinanan, Caribbean Export
    • Jake Thomas – Global Affairs Canada – TCS
    • David Weber – Global Affairs Canada – Dev 
    • Steven Tipman, Trade Facilitation Office Canada

    Moderator: Alicia Nicholls

    Panel 3: Role of Trade Agreements

    Speakers:

    • Robert Ready, former HC of Canada to Jamaica & The Bahamas/Trade Negotiator
    • Chantal Ononaiwu, Director, External Trade, CARICOM Secretariat 

    Moderator: Alicia Nicholls, International Trade and Development Consultant

    PANEL OUTCOMES

    The moderators of this event will produce a short summary of proceedings to share with attendees and others following the event.

    REGISTRATION FOR EVENT

    Register for the Event via Eventbrite here: https://www.eventbrite.ca/e/optimizing-the-canada-caricom-trade-relationship-tickets-623355632477

    Note that several days before the event all registrants will receive an email with the actual Zoom link. We look forward to you joining us!